ASHLAND INC. EMPLOYEE SAVINGS PLAN

                                ASHLAND INC.

                           EMPLOYEE SAVINGS PLAN

==============================================================================

                  WHEREAS,   Ashland  Inc.  established  the  Ashland  Inc.

Employee Savings Plan (which was known as the Ashland Inc.  Employee Thrift

Plan  before  October  1 1995)  originally  effective  June 1, 1964 for the

benefit of employees eligible to participate therein;

                  WHEREAS, the aforesaid Plan was amended from time to time

and, as so amended,  was completely  amended and restated effective October

1, 1976 to comply with the  provisions  of the Employee  Retirement  Income

Security Act of 1974;

                  WHEREAS,  the  aforesaid  amended and  restated  Plan was

further  amended from time to time and was completely  amended and restated

effective  October 1, 1980, and again restated  effective  October 1, 1983,

and again restated  effective October 1, 1985, and again restated effective

October 1, 1989 and again  restated  effective  October 1, 1995;  and again

restated effective January 1, 1997;

                  WHEREAS, Article 20 of the aforesaid amended and restated

Plan, reserves to Ashland Inc. the right to further amend the Plan; and

                  WHEREAS,  Ashland Inc. desires to make further amendments

to the Plan and to incorporate  such amendments into a completely  restated

Plan;

                  NOW,  THEREFORE,  Ashland Inc. does hereby  further amend

and restate the Ashland Inc. Employee Savings Plan,  generally effective as

of  January 1, 2003,  except as  otherwise  indicated,  and  provided  that

amendments  which were made hereto from and after the Plan's last effective

date of restatement through the date on which this restatement was executed

shall be  effective  as of the dates  that were  specified  under each such

amendment,  whether or not such effective dates are specified  hereinafter,

in accordance with the following terms and conditions:

                                 ARTICLE 1

                              PURPOSE OF PLAN

         1.1  Designation.

                  (a) General.  The Plan is  designated  the "Ashland  Inc.

                  Employee  Savings Plan." The Plan is also designated as a

                  discretionary  contribution  plan under Section 401(a) of

                  the  Code to  which  contributions  may be  made  without

                  regard to the current or accumulated earnings and profits

                  of the respective Participating Companies for the taxable

                  years  thereof  ending with or within the Plan Year,  and

                  whose  assets may be  invested,  without  limitation,  in

                  qualifying  employer  securities  as  defined  in Section

                  407(d)(5) of ERISA.

                  (b) ERISA 404(c).  It is intended that the Plan be a plan

                  described in Section 404(c) of ERISA,  to the extent that

                  the terms and  operation  of the Plan  comply  with those

                  provisions;  therefore,  fiduciaries  of the  Plan may be

                  relieved of any  liability  for any losses  which are the

                  direct and necessary  result of  investment  instructions

                  given by a Member or Beneficiary.

                  (c) Testing Method. The Plan is designated as an ADP test

                  safe-harbor  plan,  as  described  in  Notice  98-52,  as

                  modified  in Notice  2000-3,  and as  allowed  in Section

                  401(k)(12)(B)   of  the   Code.   As  a  result  of  such

                  designation,  Members  may  only  make  salary  reduction

                  elections,  as described in Article 6, that are allocated

                  to the Members' Tax Deferred  Accounts.  Also as a result

                  of   such    designation,    amounts    attributable   to

                  Participating Company contributions allocated to Members'

                  Accounts after  December 31, 1998, and for  distributions

                  after December 31, 1998, of amounts from or  attributable

                  to  what  had  been  Members'  Restricted  Company  Match

                  Accounts  shall,  in  addition  to any  other  applicable

                  restrictions on distributions,  not be distributable to a

                  Member  before the  occurrence  of an event  described in

                  Section  401(k)(2)(B)  of the Code,  except that the same

                  may not be  distributed  on account of the  hardship of a

                  Member. Finally, as a result of such designation, Members

                  that are eligible to make salary reduction  contributions

                  under  Article 6 shall  receive  the notice  required  by

                  Section  401(k)(12)(D)  of the Code.  Such notice will be

                  provided  at  or  around  the  time  of   eligibility  to

                  participate  and annually  thereafter.  The annual notice

                  will be  provided  at least 30 days but not more  than 90

                  days before the start of the next Plan Year.

                           (1)  Top-Heavy.  Effective  January 1, 2002,  so

                           long as the Plan consists  solely of a Plan that

                           meets  the  applicable   requirements   of  Code

                           sections   401(k)(12)   and   401(m)(11),    the

                           top-heavy  requirements  of Code section 416 and

                           the provisions of Article 24 shall not apply.

                  (d) ESOP.  Effective  January  1,  2003,  the  Restricted

                  Company Match Account shall no longer be designated as an

                  employee stock ownership  plan,  qualified under sections

                  401(a)  and  4975(e)(7)  of  the  Code.  Therefore,  each

                  Member's  Restricted  Company  Match  Account will become

                  part of the Member's Account and the amounts attributable

                  to the Restricted Company Match Account shall become part

                  of the  investment in Fund A - Ashland Common Stock Fund.

                  .

         1.2 Purpose.  The purpose of the Plan is to provide retirement and

other  benefits  for the Members  and their  respective  beneficiaries.  To

provide such benefits,  the  Participating  Companies  propose to make such

contributions  as directed  and  determined  by the  Sponsoring  Company in

accordance with the provisions of the Plan. Except as otherwise provided by

the Plan and by law, the assets of the Plan shall be held for the exclusive

benefit  of  Members  and  their  beneficiaries  and  defraying  reasonable

expenses of administering the Plan, and it shall be impossible for any part

of the  assets  or  income  of the Plan to be used  for,  or  diverted  to,

purposes other than such exclusive purposes.

         1.3 Plan Mergers.

         (a)      Ballenger and SuperAmerica.  Effective as of December 31,

                  1995,  with respect to accounts  formerly  held under the

                  Ballenger  Paving Company,  Inc. 401(k) Employee  Savings

                  Plan (the "Ballenger  Plan") and effective as of April 1,

                  1996,  with respect to accounts  formerly  held under the

                  SuperAmercia   Hourly   Associates   Savings   Plan  (the

                  "SuperAmerica Plan"), the Ballenger Plan and SuperAmerica

                  Plan shall, as of their  respective  effective  dates, be

                  merged  with and become a part of this  Plan.  The actual

                  transfer  of  accounts  from each of these  plans to this

                  Plan  shall be made as part of the said plan  mergers  on

                  such  date as shall be  determined  and  agreed to by and

                  between  the  Sponsoring  Company and the Trustee and the

                  trustee of the applicable plan being merged herein. After

                  each such account is transferred  to the Plan,  each such

                  account  shall be held and  administered  pursuant to the

                  terms of this Plan;  provided,  however,  notwithstanding

                  anything  contained  herein to the contrary,  the Section

                  411(d)(6)  protected  benefits  (as defined  under Treas.

                  Reg.  ss.1.411 (d) - 4) associated with each such account

                  shall be preserved  under this Plan.  The accounts  which

                  are so  transferred  and  merged  into this Plan shall be

                  placed in and shall be a part of the applicable  Member's

                  Account  hereunder,   and  for  purposes  of  determining

                  service  hereunder,  the Member's prior service under the

                  plan  being  merged  herein  shall  count   hereunder  to

                  determine  such  Member's  Period of  Service,  and,  for

                  purposes  of  applying  the  withdrawal  rules under this

                  Plan,  this Plan shall  refer to the  applicable  date of

                  allocation of employer contributions under such plan.

         (b)      Superfos Related Plans.  Effective on or after August 31,

                  2000,  the  accounts   formerly  held  under  the  Shears

                  Construction,  LP 401(k) Retirement Savings Plan that are

                  designated by the Plan  Administrator or its delegate and

                  effective on or after  September  18, 2000,  the accounts

                  formerly  held under the Superfos and  Affiliates  401(k)

                  Plan, the JB Coxwell  Contracting,  Inc.  401(k) Plan and

                  the Harper  Brothers  Construction,  Inc.  401(k)  Profit

                  Sharing   Plan   that   are   designated   by  the   Plan

                  Administrator  or  its  delegate,   shall,  as  of  their

                  respective  effective  dates, be merged with and become a

                  part of this Plan.  The actual  transfer of accounts from

                  each of these plans to this Plan shall be made as part of

                  the said plan mergers on such date as shall be determined

                  and agreed to by and between the  Sponsoring  Company and

                  the Trustee and the trustee of the applicable  plan being

                  merged herein.  After each such account is transferred to

                  the   Plan,   each  such   account   shall  be  held  and

                  administered  pursuant  to the  terms of this  Plan.  The

                  investment  options into which the transferred assets are

                  initially  placed shall be similar to those in which they

                  were invested  prior to the merger,  as determined by the

                  Plan  Administrator  or its delegate.  To accomplish  the

                  said merger, the Plan Administrator  shall implement such

                  procedures, as it deems appropriate or convenient.  These

                  may  include  but not be  limited to  suspending  account

                  transactions  for a period of time  following the merger.

                  The Section 411(d)(6) protected benefits as defined under

                  applicable Treasury  regulations and other pronouncements

                  shall be preserved;  provided,  however, that changes may

                  be made to them  after the merger  allowed  under law and

                  Treasury or Internal Revenue Service interpretations. The

                  accounts  that are so  transferred  and merged  into this

                  Plan  shall  be  placed  in and  shall  be a part  of the

                  applicable  Member's existing Account  hereunder,  if the

                  Member has one. For  purposes of applying the  withdrawal

                  rules  under  this Plan to the merged  assets,  this Plan

                  shall  refer  to the  applicable  date of  allocation  of

                  employer  contributions  under  the plan  from  which the

                  assets  were  transferred.  Nevertheless,  if that is not

                  administratively  convenient, then the transferred assets

                  shall  be  deemed  contributed  on the  date of  transfer

                  hereto for purposes of applying the  withdrawal  rules of

                  the  Plan.   Effective  for  distributions  on  or  after

                  September 6, 2000,  the assets of the  accounts  formerly

                  held under the Shears Construction,  LP 401(k) Retirement

                  Savings Plan may only be distributed to Members in a form

                  allowed by Section 13.3(a).  Any optional form of benefit

                  that would have  otherwise  applied to such assets before

                  the effective date of Treas. Reg. ss.1.411(d)-4, Q&A-2(e)

                  shall no longer  apply.  Notwithstanding  anything in the

                  foregoing  to the  contrary,  the change to the  optional

                  forms of distribution  available for the assets that were

                  transferred  from  the  Shears  Construction,  LP  401(k)

                  Retirement  Savings  Plan and merged  herewith  shall not

                  apply to a Member whose  benefit  consists in whole or in

                  part of assets  transferred from the said Shears Plan and

                  whose  benefit is  distributed  before the earlier of (i)

                  the 90th day after the Member is  furnished  a summary of

                  material modifications that describes the deletion of the

                  otherwise   preserved  optional  forms  of  distribution;

                  or;(ii) January 1, 2002.

         (c)      Conforming  Distribution  Options.  Effective  January 1,

                  2002,  except  to  the  extent  already  accomplished  by

                  Section  13.3(b) as in effect on  January  1,  2001,  the

                  distribution    options   available   for   any   amounts

                  transferred,    merged,    consolidated    or   otherwise

                  contributed to the Plan from a source outside of the Plan

                  shall  only  be  those  distribution   options  otherwise

                  available  under the Plan to the  extent  allowed by Code

                  sections 411(d)(6)(D) and (E).

                                 ARTICLE 2

                                DEFINITIONS

         2.1      As used in the Plan:

         (a)      "Account"  shall  mean  all  of  the  separate   accounts

                  maintained  for  each  Member  under  the  provisions  of

                  Article 10 of the Plan (excepting,  however, the accounts

                  which  comprise  such  Members'  Tax  Deferred   Account)

                  reflecting such Member's contributions to the Trust under

                  the  provisions  of Article 5 of the Plan and  reflecting

                  Participating   Company   contributions   to  the   Trust

                  allocated on behalf of such Member  under the  provisions

                  of Article 7 of the Plan, as adjusted in accordance  with

                  the  provisions  of Section  10.3 of the Plan.  Effective

                  January 1, 2003, each Member's  Restricted  Company Match

                  Account shall become part of the Member's Account.

         (b)      "Actual  Contribution  Percentage"  shall  mean,  for the

                  Highly Compensated  Eligible Employees and the Non-Highly

                  Compensated  Eligible  Employees  for a  Plan  Year,  the

                  average of the  ratios,  calculated  separately  for each

                  person in each such group, of the amount, if any, of -

                  (1) such person's Member contributions  allocated to such

                  person's Account under Article 5; and

                  (2) such  person's  Participating  Company  contributions

                  allocated to such  person's  Account  under Article 7, to

                  the extent such  contributions  are not treated as Member

                  contributions  allocated  to such  person's  Tax Deferred

                  Account  under Article 6 pursuant to the terms of Section

                  2.1 (c) of the Plan for such  Plan  Year to the  person's

                  Actual  Deferral  Percentage  Compensation  for such Plan

                  Year.

                  For  purposes  of  computing   the  Actual   Contribution

                  Percentage of any Highly  Compensated  Eligible Employee,

                  the amount of  contributions,  if any,  allocated to such

                  individual's  Account (to the extent  such  contributions

                  are  considered in  calculating  the Actual  Contribution

                  Percentage under this paragraph (b) of Section 2.1 of the

                  Plan) for such Plan Year shall be combined with any other

                  contributions by or on behalf of such individual intended

                  to be made under Section  401(m) of the Code to any other

                  plan (if any) which allows such contributions, maintained

                  by the Sponsoring  Company or maintained by an Affiliated

                  Company,   which  are  made  by  or  on  behalf  of  such

                  individual  from and  after the time any such plan was so

                  maintained, except to the extent that such other plan (if

                  any)  cannot be  aggregated  with this Plan under  Treas.

                  Reg. Section 1.410(b)-7(c), or any successor thereto.

         (c)      "Actual Deferral  Percentage"  shall mean, for the Highly

                  Compensated   Eligible   Employees  and  the   Non-Highly

                  Compensated  Eligible  Employees  for a  Plan  Year,  the

                  average of the  ratios,  calculated  separately  for each

                  person  in  each  such  group,  of  the  amount  of -

                  (1) contributions, if any, allocated to such person's Tax

                  Deferred Account under Article 6; and

                  (2) such  person's  Participating  Company  contributions

                  allocated to such  person's  Account  under Article 7, to

                  the extent the Sponsoring  Company  decides to treat such

                  contributions  for  purposes  of  this  paragraph  (c) as

                  Member  contributions  allocated  to  such  person's  Tax

                  Deferred  Account  under  Article 6 for such Plan Year to

                  the person's Actual Deferral Percentage  Compensation for

                  such Plan Year.

                  For purposes of computing the Actual Deferral  Percentage

                  of any Highly Compensated  Eligible Employee,  the amount

                  of contributions,  if any, allocated to such individual's

                  Tax Deferred Account and Restricted Company Match Account

                  (to the  extent  such  contributions  are  considered  in

                  calculating  the Actual  Deferral  Percentage  under this

                  paragraph  (c) of Section  2.1 of the Plan) for such Plan

                  Year shall be combined  with any other  contributions  of

                  such individual  intended to be made under Section 401(k)

                  of the Code to any other plan (if any) which  allows such

                  contributions  maintained  by the  Sponsoring  Company or

                  maintained  by an Affiliated  Company,  which are made by

                  such individual from and after the time any such plan was

                  so maintained,  except to the extent that such other plan

                  (if any) cannot be aggregated with this Plan under Treas.

                  Reg. Section 1.410(b)-7(c), or any successor thereto.

         (d)      "Actual Deferral Percentage  Compensation" shall mean the

                  Compensation   received   during  the  Plan  Year  by  an

                  Employee.

         (e)      "Affiliated Company" shall mean each of the following for

                  such a period of time as is applicable  under Section 414

                  of the Code:

                  (1)   a corporation which,  together with a Participating

                        Company  is a  member  of  a  controlled  group  of

                        corporations  within the meaning of Section  414(b)

                        of the Code (as modified by Section  415(h) thereof

                        for the  purposes of Article 5, and the  applicable

                        regulations thereunder);

                  (2)   a trade or business  (whether or not  incorporated)

                        with which a Participating  Company is under common

                        control within the meaning of Section 414(c) of the

                        Code (as modified by Section 415(h) thereof for the

                        purposes   of   Article   5,  and  the   applicable

                        regulations thereunder);

                  (3)   an    organization    which,    together   with   a

                        Participating Company, is a member of an affiliated

                        service group (as defined in Section  414(m) of the

                        Code); and

                  (4)   and any other entity required to be aggregated with

                        a  Participating  Company  pursuant to  regulations

                        under Section 414(o) of the Code.

         (f)      "Beneficiary"  shall mean the person or persons  entitled

                  to receive the  distributions,  if any, payable under the

                  Plan pursuant to the applicable provisions of Articles 11

                  and 13 of the Plan,  upon or after a Member's  death,  as

                  such  Member's  Beneficiary.  Each Member may designate a

                  Beneficiary by filing a written  designation thereof over

                  his signature  with the  Sponsoring  Company in such form

                  and manner as the  Sponsoring  Company may prescribe from

                  time to time. A designation  shall be effective  upon its

                  receipt by the  Sponsoring  Company,  retroactive  to the

                  date such Member signed such  designation,  provided that

                  it is so filed during such  Member's  lifetime.  The last

                  effective  designation received by the Sponsoring Company

                  shall supersede all prior designations, provided that any

                  designation  shall only be effective  if the  Beneficiary

                  survives the Member.  A Member may  designate one or more

                  contingent  Beneficiaries to receive any distributions in

                  the event the primary Beneficiary (or Beneficiaries) does

                  not  survive  the Member  and may change his  Beneficiary

                  designation from time to time as provided above; provided

                  however, the spouse to whom the Member was married on his

                  date of death shall be such Member's Beneficiary,  unless

                  the  spouse  waives the right to be the  Beneficiary  and

                  consents to the designation of another as follows:

                  (1) the spouse's  consent and waiver is in writing and it

                  is   witnessed   by  either  a  notary   public  or  Plan

                  representative;

                  (2)  the  waiver  and  consent   specify  the   alternate

                  Beneficiary  including any class of Beneficiaries,  which

                  may not be changed without spousal  consent,  except that

                  if a trust is named as the Beneficiary, the beneficiaries

                  under  such  trust  may  be  changed  without  additional

                  spousal consent;

                  (3) the waiver and  consent  specify  the form of benefit

                  payment (if applicable)  which may not be changed without

                  spousal consent; and

                  (4) the spouse's  consent  acknowledges the effect of the

                  consent  and  waiver.  Notwithstanding  anything  to  the

                  contrary  contained in (2) and (3)  immediately  above, a

                  spouse may  execute a general  consent  and waiver  which

                  permits  the  Member  to change  alternate  Beneficiaries

                  and/or forms of benefit payment (if  applicable)  without

                  spousal  consent if, in such general  consent and waiver,

                  the spouse  acknowledges  his right to limit consent to a

                  specific  beneficiary  and/or  specific  form of benefit,

                  where applicable,  and the spouse  voluntarily  elects to

                  relinquish either or both of such rights. Any consent and

                  waiver is only  effective  with respect to the spouse who

                  signed such consent and is not effective  with respect to

                  any subsequent spouse.  However,  if it is established to

                  the satisfaction of the Sponsoring Company that a written

                  consent and waiver cannot be obtained because there is no

                  spouse or the spouse cannot be located or because of such

                  other  circumstances  as  may  be  provided  in  Treasury

                  regulations,  then a Member's  designation will be deemed

                  effective without the need to comply with (1) through (4)

                  above of this paragraph (f).

                           If a Member fails to designate a Beneficiary, or

                  if no designated  Beneficiary survives the Member or dies

                  simultaneously  with the  Member  or under  circumstances

                  making  it   impossible   to   determine   whether   such

                  Beneficiary  survived  such  Member,  the Member shall be

                  deemed  to  have  designated  one  of  the  following  as

                  Beneficiary (if living at the time of the Member's death)

                  in the  following  order of priority:  (i) the  surviving

                  spouse,  and (ii) the Member's estate.  If the Sponsoring

                  Company  shall be in doubt as to the right of any  person

                  as a  Beneficiary,  payment  may be made to the  Member's

                  estate and such payment shall be in full  satisfaction of

                  any and all liability of the Plan (or any other person or

                  entity) to any  person  claiming  under or  through  such

                  Member.  Whenever  the  rights of a Member  are stated or

                  limited  in the Plan,  his  Beneficiaries  shall be bound

                  thereby.

                           To the extent  consistent with the provisions of

                  Section   401(a)(9)  of  the  Code  and  the  regulations

                  thereunder,  the Member's Beneficiary as determined under

                  this Section 2.1(f) shall be his "designated beneficiary"

                  as defined under said Section and regulations.

         (g)      "Code" shall mean the Internal  Revenue Code of 1986,  as

                  amended from time to time.  References  to any Section of

                  the Code shall include any successor provision thereto.

         (h)      "Compensation" shall mean the salary and wages (or, if an

                  Employee is not paid a fixed salary or wages,  such other

                  compensation  as  determined by the  Sponsoring  Company)

                  paid by a Participating Company to an Employee during the

                  Plan Year,  including  commissions,  payroll continuation

                  for sickness,  overtime pay, shift premium,  and vacation

                  pay, if any, any amounts  contributed to the Member's Tax

                  Deferred  Account,  and any  amounts  excluded  from  the

                  Member's income under Sections 401(k),  402(h), 403(b) or

                  125 of the Code;  provided,  however,  Compensation shall

                  not  include (i)  incentive  compensation  bonuses,  but,

                  effective  October 1, 1999,  Compensation  shall  include

                  variable  pay and bonus  amounts  paid to Members who are

                  not  eligible  for  the  Sponsoring  Company's  incentive

                  compensation bonus program, (ii) amounts contributed by a

                  Participating  Company or  Affiliated  Company  under any

                  employee benefit plan (other than amounts  contributed to

                  a Member's Tax Deferred  Account  under this Plan and any

                  amounts  excluded from the Member's income under Sections

                  401(k), 402(h), 403(b) or 125 of the Code), (iii) amounts

                  paid to a Member under the Ashland Inc. ERISA  Forfeiture

                  Plan or any successor plan thereto,  (iv) amounts paid to

                  a Member as stock appreciation rights through the Ashland

                  Inc.  Long  Term  Incentive  Plan  or the  Amended  Stock

                  Incentive  Plan for Key Employees of Ashland Inc. and its

                  Subsidiaries  or any successor or similar plans  thereto,

                  (v)  allowances  paid by  reason of  foreign  assignment,

                  which are not a part of such  Member's base United States

                  salary as determined by the Sponsoring Company;  and (vi)

                  remuneration  determined  to be  disregarded  under  this

                  paragraph  (h)  by the  Sponsoring  Company  under  rules

                  uniformly applicable to all employees similarly situated;

                  (vii)  severance  pay paid on or after  November 1, 1992;

                  (viii)  amounts  deferred under and amounts paid from any

                  nonqualified  salary  deferral  plan;  and (ix) effective

                  January 1, 2000,  amounts paid for waiving benefits under

                  the  Sponsoring   Company's  flexible  benefits  program.

                  Notwithstanding   anything  in  the   foregoing   to  the

                  contrary,  the  Compensation  of each  Member  taken into

                  account under the Plan for any Plan Year shall not exceed

                  $150,000  as  adjusted at the same time and manner as the

                  adjustments  under  Section  415(d) of the Code,  and any

                  such  adjustment  for a calendar  year shall apply to the

                  Plan Year which begins with or within such  calendar year

                  and such adjustments  shall only be made in increments of

                  $10,000,  rounded  down to the next  lowest  multiple  of

                  $10,000, with the base period for determining this annual

                  adjustment being the calendar quarter  beginning  October

                  1, 1993.  Effective for Plan Years beginning on and after

                  January 1, 2002,  the  Compensation  of each Member taken

                  into  account  under the Plan for any Plan Year shall not

                  exceed  $200,000.  This  amount  shall be adjusted at the

                  same time and  manner as the  adjustments  under  Section

                  415(d) of the Code.  Any such  adjustment  for a calendar

                  year  shall  apply to the Plan Year that  begins  with or

                  within such calendar year. These  adjustments  shall only

                  be made in increments of $5,000, rounded down to the next

                  lowest  multiple  of  $5,000,  with the base  period  for

                  determining  this annual  adjustment  being the  calendar

                  quarter beginning July 1, 2001.

         (i)      "Employee" shall, except as otherwise provided,  mean any

                  person who is an  employee  of one or more  Participating

                  Companies.  The term Employee shall not include:  (i) any

                  person  included  in a unit  of  employees  covered  by a

                  collective    bargaining   agreement   between   employee

                  representatives  and one or more Participating  Companies

                  unless such bargaining  agreement  specifically  provides

                  otherwise;  (ii)  any  leased  employees  as  defined  in

                  Section 414(n) of the Code; (iii) any person  compensated

                  on an hourly rate or other rate basis if such employee is

                  not   included   in   a   designated   eligible   payroll

                  classification  code  so  designated  by  the  Sponsoring

                  Company;   and  (iv)  any  employee  not  included  in  a

                  designated   eligible  payroll   classification  code  so

                  designated by the Sponsoring Company, which shall include

                  those  employees  acquired as part of the  acquisition of

                  Superfos a/s and its US  subsidiaries  until the later of

                  the date such  employees are  transferred to a designated

                  eligible  payroll  classification  code by the Sponsoring

                  Company or January 1, 2000.  For purposes of this section

                  2.1(i), a United States citizen who is an employee (a) of

                  a foreign subsidiary (as defined in Section 3121(l)(8) of

                  the Code) of a domestic  Participating  Company  which is

                  the subject of an agreement entered into by such domestic

                  Participating  Company under Section  3121(l) of the Code

                  and as to  whom  contributions  under  a  funded  plan of

                  deferred  compensation  are not  provided  by any  person

                  other  than  such  domestic  Participating  Company  with

                  respect to the  remuneration  paid to such United  States

                  citizen by such foreign subsidiary,  or (b) of a domestic

                  subsidiary  (as  defined in Section  407(a)(2)(A)  of the

                  Code) of a domestic  Participating Company and as to whom

                  contributions   under   a   funded   plan   of   deferred

                  compensation  are not  provided by any person  other than

                  such domestic  Participating  Company with respect to the

                  remuneration  paid to such United States  citizen by such

                  domestic subsidiary, shall be deemed to be an employee of

                  such domestic Participating Company. For purposes of this

                  section  2.1(i),  under rules of general  application,  a

                  former  employee  of  a  Participating   Company  who  is

                  temporarily on leave of absence from employment with such

                  Participating  Company in order to render  services to an

                  Affiliated  Company or other affiliate of a Participating

                  Company,  may be deemed an Employee of such Participating

                  Company during such absence if such absence is determined

                  by the  Sponsoring  Company  to be in the  interest  of a

                  Participating Company or an Affiliated Company;  provided

                  that such  status as a deemed  employee  will be  equally

                  available  to  both  Highly  Compensated   Employees  and

                  Non-Highly Compensated Employees who satisfy the criteria

                  for such status;  and  provided  further that such status

                  shall  only  be  available  under  terms  and  conditions

                  satisfying  Treas.  Reg.   ss.1.401(a)(4)-11(d)   or  any

                  successor to that regulation.

         (j)      "Employment  Commencement  Date"  shall  mean the date on

                  which an  employee  (whether  or not such  employee is an

                  Employee  within  the  meaning of  paragraph  (i) of this

                  Section  2.1) first  performs  an Hour of  Service  for a

                  Participating Company or an Affiliated Company.

         (k)      "ERISA"  shall  mean  the  Employee   Retirement   Income

                  Security  Act of  1974,  as  amended  from  time to time.

                  References  to any  Section of ERISA  shall  include  any

                  successor provision thereto.

         (l)      "Highly  Compensated  Eligible Employee" shall mean, with

                  respect to a Plan Year,  any Employee  from and after the

                  time he is eligible to participate in the Plan,  pursuant

                  to the  provisions  of  Article  3,  and who is a  Highly

                  Compensated Employee for such Plan Year.

         (m)      "Highly Compensated Employee" shall mean for a particular

                  Plan Year (1) an  Employee  who is a 5% owner (as defined

                  in  Section  416(i)(1)(B)  of the  Code) at any time of a

                  Participating Company or an Affiliated Company during the

                  present Plan Year (the  "determination  year"); or (2) an

                  Employee   who  received   compensation   during  the  12

                  consecutive  month  period  prior to such  Plan Year (the

                  "look-back  year")  from a  Participating  Company  or an

                  Affiliated  Company in excess of $80,000 (as  adjusted at

                  the same time and in the same  manner as the  adjustments

                  under Section 415(d) of the Code, and any such adjustment

                  for a calendar year shall apply to the determination year

                  or look-back year (whichever is applicable)  which begins

                  with or within such calendar  year,  except that the base

                  period  is the  calendar  quarter  ending  September  30,

                  1996).

                  For these  purposes,  the  compensation  of an individual

                  refers to compensation as defined under Section 415(c)(3)

                  of  the  Code.

                  A former Employee shall be a Highly Compensated  Employee

                  if he was (1) a Highly  Compensated  Employee at the time

                  he separated  from service;  or (2) a Highly  Compensated

                  Employee  at  any  time  after   attaining  age  55.  The

                  determination  of  the  status  under  (1)  or (2) in the

                  immediately  preceding  sentence  shall  be  based on the

                  rules for determining  whether an individual was a Highly

                  Compensated  Employee  as in  effect  in  the  particular

                  determination    year,   in   accordance   with   Section

                  1.414(q)-1T,A-4 of the temporary Treasury regulations and

                  Notice 97-45.

                  When   determining   whether  an  Employee  is  a  Highly

                  Compensated   Employee   in  the  Plan  Year  before  the

                  generally   effective   date   of  this   amendment   and

                  restatement  (January 1, 1997),  the  provisions  of this

                  paragraph (m) shall be treated as being in effect in such

                  prior Plan Year.

         (n)      "Hour of  Service"  shall  mean  each  hour for  which an

                  employee  is  paid,   or   entitled  to  payment,   by  a

                  Participating  Company or an  Affiliated  Company for the

                  performance of duties as an employee.

         (o)      "Investment  Manager"  shall mean any party that:  (i) is

                  (A)  registered  as  an  investment   advisor  under  the

                  Investment  Advisors  Act of  1940,  or  (B) a  bank  (as

                  defined in the Investment  Advisors Act of 1940),  or (C)

                  an insurance  company  qualified  to manage,  acquire and

                  dispose  of Plan  assets  under the laws of more than one

                  state;   (ii)  acknowledges  in  writing  that  it  is  a

                  fiduciary  with respect to the Plan; and (iii) is granted

                  the power to  manage,  acquire or dispose of any asset of

                  the Plan pursuant to Article 14 of the Plan.

         (p)      "Member"  shall mean an eligible  Employee  who becomes a

                  Member of the Plan as  provided in Article 4 of the Plan.

                  A  Member  ceases  to be a Member  when all  funds in his

                  Account,   Restricted   Company  Match  Account  and  Tax

                  Deferred  Account to which he is entitled  under the Plan

                  have been distributed in accordance with the Plan.

         (q)      "Non-Highly  Compensated  Eligible  Employee" shall mean,

                  with respect to a Plan Year,  any Employee from and after

                  the  time he is  eligible  to  participate  in the  Plan,

                  pursuant  to the  provisions  of  Article 3, who is not a

                  Highly Compensated Eligible Employee for such Plan Year.

         (r)      "Non-Highly   Compensated   Employee"  shall  mean,  with

                  respect  to  a  Plan  Year,  any  Employee,   (or  former

                  Employee,  if applicable) who is not a Highly Compensated

                  Employee.

         (s)      "One-Year  Period of  Service"  shall mean 12 months of a

                  Period  of  Service.  For  this  purpose,   nonsuccessive

                  Periods of  Service  shall be  aggregated,  and less than

                  whole   year   Periods  of   Service   (whether   or  not

                  consecutive)  shall be  aggregated  on the basis that 365

                  days of a Period of Service equal a whole One-Year Period

                  of Service.

         (t)      "One-Year    Period   of   Severance"    shall   mean   a

                  12-consecutive-month  period  beginning on an  employee's

                  Severance  from  Service  Date and  ending  on the  first

                  anniversary  of such  date  provided  that  the  employee

                  during such 12-consecutive-month  period does not perform

                  an  Hour  of  Service  for  a  Participating  Company  or

                  Affiliated Company.

         (u)      "Participating  Company"  shall  mean (1) the  Sponsoring

                  Company;  (2) any division of the Sponsoring Company some

                  or all of whose  employees are  designated as eligible to

                  participate  in this Plan;  and (3) an  affiliate  of the

                  Sponsoring  Company  which  adopts the Plan  pursuant  to

                  Article 18 of the Plan.

         (v)      "Period of  Service"  shall  mean a period of  employment

                  with a  Participating  Company or an  Affiliated  Company

                  commencing on an employee's Employment  Commencement Date

                  or   Reemployment   Commencement   Date,   whichever   is

                  applicable,  and ending on such employee's Severance from

                  Service Date; provided,  however, Period of Service shall

                  also   include  any  Period  of   Severance   immediately

                  following a Period of Service if the  employee  completes

                  an Hour of Service  within 12 months of the date on which

                  the   employee    was   first   absent   from    service.

                  Notwithstanding   the   foregoing   provisions   of  this

                  paragraph  (v),  Period of Service  shall not include the

                  period  between  the  first  anniversary  and the  second

                  anniversary of the first date of absence from work (1) by

                  reason of the pregnancy of the employee, (2) by reason of

                  the  birth of a child of the  employee,  (3) by reason of

                  the  placement of a child with the employee in connection

                  with the adoption of such child by such employee,  or (4)

                  for  purposes  of  caring  for  such  child  for a period

                  beginning  immediately following such birth or placement.

                  In the case of any employee who has a One-Year  Period of

                  Severance  prior to becoming vested in any portion of his

                  Account,  such  employee's  Periods  of  Service  with  a

                  Participating Company or an Affiliated Company before any

                  such One-Year Period of Severance shall not be taken into

                  account if such  employee's  latest  Period of  Severance

                  equals or exceeds  the  greater of (i) five years or (ii)

                  his prior aggregate  Periods of Service  completed before

                  the date on  which  such  One-Year  Period  of  Severance

                  began, and such prior aggregate  Periods of Service shall

                  not  include  any Period of Service  not  required  to be

                  taken into account by reason of any prior One-Year Period

                  of  Severance.  Any Period of Service,  or part  thereof,

                  with an Affiliated  Company  (other than a  Participating

                  Company)  during  a  period  of time  during  which  such

                  Affiliated Company was not an Affiliated Company shall be

                  disregarded  except  that  the  following  shall  not  be

                  disregarded:  (A)  service as  provided in Section 3.2 of

                  the Plan,  (B) service with an  Affiliated  Company by an

                  Employee who was transferred  from an Affiliated  Company

                  to a  Participating  Company,  and  (C)  service  with an

                  Affiliated  Company by an employee which is determined by

                  the Sponsoring  Company under uniform,  nondiscriminatory

                  rules not to be  disregarded;  provided that such service

                  will be  equally  available  to both  Highly  Compensated

                  Employees  and  Non-Highly   Compensated   Employees  who

                  satisfy  the  criteria  for such  service;  and  provided

                  further that such service  shall only be available  under

                  terms   and    conditions    satisfying    Treas.    Reg.

                  ss.1.401(a)(4)-11(d) or any successor to that regulation.

         (w)      "Period  of  Severance"  shall  mean the  period  of time

                  commencing on an employee's  Severance  from Service Date

                  and ending on the date such  employee  again  performs an

                  Hour of Service.

         (x)      "Plan" shall mean the Ashland Inc.  Employee Savings Plan

                  (formerly  known  as the  Ashland  Inc.  Employee  Thrift

                  Plan).

         (y)      "Plan Year" shall mean the calendar year.

         (z)      "Reemployment  Commencement  Date"  shall  mean the first

                  date, following the Severance from Service Date, on which

                  an employee performs an Hour of Service.

         (aa)     "Restricted  Company Match Account" shall no longer exist

                  after December 31, 2002.

         (ab)     "Severance  from Service Date" shall mean the earliest to

                  occur of (1) the date on which an employee quits, retires

                  or is discharged  from  employment  with a  Participating

                  Company or an Affiliated  Company, or dies; or (2) except

                  as   otherwise   provided  in  clause   (3),   the  first

                  anniversary of the first date of a period during which an

                  employee  remains  absent from  service  (with or without

                  pay)  with  a  Participating  Company  or  an  Affiliated

                  Company  for any reason  other  than a quit,  retirement,

                  discharge  or death;  or (3) the second  anniversary  (or

                  such shorter period as may be allowed by  regulations) of

                  the first date of a period in which an  employee  remains

                  absent from  service with a  Participating  Company or an

                  Affiliated  Company by reason of the placement of a child

                  with the employee in connection with the adoption of such

                  child by such  employee,  or for  purposes  of caring for

                  such child for a period beginning  immediately  following

                  such birth or placement, if the employee furnishes to the

                  Sponsoring  Company such  information in such form and at

                  such time as it may from time to time  require  that such

                  absence  was for  one of the  reasons  specified  in this

                  sentence  and the number of days for which there was such

                  an absence.  Notwithstanding the preceding sentence,  (i)

                  if  an   employee   is  absent   from   service   with  a

                  Participating  Company or an Affiliated Company solely by

                  reason of temporary  leave of absence  determined  by the

                  Sponsoring  Company  under  uniform,   non-discriminatory

                  rules to be in the interest of a Participating Company or

                  an Affiliated Company,  such employee shall be deemed not

                  to have  quit or  been  absent  from  service  with  such

                  Participating  Company or  Affiliated  Company so long as

                  such employee  complies with the terms and  conditions of

                  such temporary  leave of absence;  or (ii) if an employee

                  is absent from service with a Participating Company or an

                  Affiliated  Company solely by reason of military  service

                  under  circumstances  by which such  employee is afforded

                  reemployment rights under any applicable Federal or State

                  statute or regulation,  such employee shall be deemed not

                  to have quit or have been absent from  service  with such

                  Participating  Company  or  Affiliated  Company  if  such

                  employee  returns  to  service  with  such  Participating

                  Company or Affiliated  Company  before the  expiration of

                  such reemployment rights; provided, however, in the event

                  that such  employee  fails to  comply  with the terms and

                  conditions  of a  temporary  leave of absence or fails to

                  return to  service  with such  Participating  Company  or

                  Affiliated   Company   before  the   expiration  of  such

                  reemployment  rights,  such  employee  shall be deemed to

                  have  quit on the first day on which  such  employee  was

                  first absent from service with such Participating Company

                  or Affiliated  Company by reason of such temporary  leave

                  of absence or such military service.

         (ac)     "Sponsoring  Company"  shall mean Ashland Inc.  including

                  any successor by merger, purchase or otherwise.

         (ad)     "Tax  Deferred  Account"  shall  mean  all  the  separate

                  accounts maintained under the provisions of Article 10 to

                  which are allocated, on behalf of a Member, contributions

                  to the Trust under the  provisions  of Section 6.1 of the

                  Plan as adjusted in  accordance  with the  provisions  of

                  Section 10.3 of the Plan.

         (ae)     "Termination  of  Employment"  shall mean  termination of

                  employment   with  any   Participating   Company  or  any

                  Affiliated Company, whether voluntarily or involuntarily,

                  for  any  reason  other  than  by  reason  of a  Member's

                  transfer  to a  Participating  Company  or an  Affiliated

                  Company.  With  respect to amounts held in a Member's Tax

                  Deferred Account and Restricted Company match Account and

                  for  distributions  before  December  31,  2001, a Member

                  shall  be  deemed  to  have  incurred  a  Termination  of

                  Employment  upon the date of the sale by a  Participating

                  Company  or an  Affiliated  Company  to a  purchaser  not

                  related to either such  Company  under  Sections 414 (b),

                  (c), (m), or (o) of the Code of

                                    (i)     substantially all of the assets

                                            (within  the meaning of Section

                                            409(d)(2)  of the Code) used by

                                            such  Company  in  a  trade  or

                                            business of such  Company  even

                                            though  such  Member  continues

                                            employment  with the  purchaser

                                            of such assets, or

                                    (ii)    the stock  (within  the meaning

                                            of  Section  409(d)(3)  of  the

                                            Code)   of   a    Participating

                                            Company   or   an    Affiliated

                                            Company even though such Member

                                            continues  employment with such

                                            Company;

                  provided,  that such purchaser does not maintain the Plan

                  after the date of such sale.

                  Notwithstanding  anything  in the  Plan to the  contrary,

                  effective January 1, 2002 Termination of Employment shall

                  include  both a  separation  from service and a severance

                  from   employment   for  purposes  of  determining  if  a

                  distribution under the Plan is allowed.

         (af)     "Trust"  shall mean the legal entity  resulting  from the

                  trust agreement  between the Sponsoring  Company,  on its

                  own  behalf  and as  agent  for all  other  Participating

                  Companies,   and   the   Trustee   which   receives   the

                  Participating Companies' and Members' contributions,  and

                  holds, invests, and disburses funds to or for the benefit

                  of Members and their Beneficiaries.

         (ag)     "Trust Fund" shall mean the total  contributions  made by

                  the  Participating  Companies  and  Members  to the Trust

                  pursuant to the Plan, increased by profits, gains, income

                  and  recoveries   received,   and  decreased  by  losses,

                  depreciation,  benefits paid and expenses incurred in the

                  administration  of the  Trust.  Trust Fund  includes  all

                  assets acquired by investment and reinvestment  which are

                  held in the Trust by the Trustee.

         (ah)     "Trustee" shall mean the party or parties,  individual or

                  corporate,  named  in the  trust  agreement  and any duly

                  appointed  additional  or  successor  Trustee or Trustees

                  acting thereunder.

         (ai)     "Valuation  Date"  shall mean each  business  day the New

                  York Stock  Exchange is open.

         2.2 Wherever  appropriate,  words used in the Plan in the singular

shall  mean  the  plural,  the  plural  shall  mean the  singular,  and the

masculine shall mean the feminine.

                                 ARTICLE 3

                        REQUIREMENTS FOR ELIGIBILITY

         3.1      Eligibility Requirements.

                  (a)(1)  General.  Each  Member of the Plan on  January 1,

                  2003,  shall  continue  to be a  Member  subject  to  the

                  provisions  of the Plan.  Subject  to the  provisions  of

                  Article 4 of the Plan,  an Employee who is a Member under

                  the provisions of sub-paragraph (2) of this paragraph (a)

                  shall  be  eligible  for the  contribution  described  in

                  Section  7.1(c) as soon as is  administratively  feasible

                  after  completing a One-Year Period of Service,  provided

                  that  such  Member  is  an  Employee  of a  Participating

                  Company on such date.

                  (2) Less  Than One Year.  Subject  to the  provisions  of

                  Article 4 of the Plan,  each Employee of a  Participating

                  Company  in  a  payroll   classification   designated  as

                  eligible for  participation  hereunder by the  Sponsoring

                  Company who has not received credit for a One-Year Period

                  of Service  shall be eligible  to make the  contributions

                  allowed  under  Article  6 of  the  Plan  as  soon  as is

                  administratively feasible after the later of:

                        (i) January 1, 2001; or

                        (ii) the Employee's date of employment.

                  Employees  who are eligible to make  contributions  under

                  this  sub-paragraph  (2) of this  paragraph  (a) shall be

                  considered  to be  Members  of the Plan for all  purposes

                  except   they  shall  not  be  eligible  to  receive  the

                  contributions  described  in  Section  7.1(c) of the Plan

                  until completing a One-Year Period of Service.

                  (3)   Reemployment.   Notwithstanding   anything  to  the

                  contrary  herein  contained,  any  Member  who  incurs  a

                  Termination  of  Employment   and  who  is   subsequently

                  reemployed as an Employee of a Participating Company in a

                  payroll   classification   designated   as  eligible  for

                  participation  hereunder by the Sponsoring  Company shall

                  be  eligible  to again  become a Member,  subject  to the

                  provisions  of  Article 4, as of the first pay period for

                  such Employee beginning coincident with or next following

                  the day after the reemployment of such Employee.

                  (b)  Special  Rule  for  Deferred  Compensation  Eligible

                  Group.  Effective  January 1, 2002,  Employees who are or

                  who  become   eligible  to  make   non-qualified   salary

                  deferrals  under the Ashland Inc.  Deferred  Compensation

                  Plan  shall be  eligible  to make  contributions  to this

                  Plan.  The terms of the Plan  shall be  applied  to these

                  Employees in the same manner as they are applied to other

                  eligible  Employees,  except as  otherwise  noted in this

                  paragraph (b) of Section 3.1. The  Employees  referred to

                  in this  paragraph  (b) shall only be allowed to make one

                  irrevocable  election to make  contributions  to the Plan

                  for each Plan Year, subject only to suspension because of

                  a hardship  distribution  as provided  under Sections 5.3

                  and 6.3.  Such  election  shall be made at such  time and

                  pursuant  to  such   procedures   as  prescribed  by  the

                  Sponsoring  Company  from  time to time.  Such  elections

                  shall,  however,  be collected  prior to the Plan Year to

                  which  they  relate.  In the event the  Employee  becomes

                  eligible to make non-qualified salary deferrals under the

                  Ashland Inc.  Deferred  Compensation  Plan effective on a

                  day other than January 1, then the Employee's irrevocable

                  election  under this Plan shall be  collected  before the

                  period  of the Plan Year to which an  election  under the

                  Ashland Inc.  Deferred  Compensation  Plan would  relate.

                  Under  these   circumstances,   the  Employee's  existing

                  election under this Plan would end and the Employee would

                  have to make a new irrevocable  election  hereunder to be

                  effective  for  the  remainder  of the  Plan  Year.  Such

                  elections  shall become  irrevocable  on the first day of

                  the Plan Year (or  portion  thereof) to which they relate

                  and shall be effective with respect to pay received after

                  such  day (or as soon as is  administratively  feasible).

                  Notwithstanding   anything  in  the   foregoing   to  the

                  contrary,   an  Employee   whose  election  is  otherwise

                  irrevocable  shall have an  opportunity  to increase such

                  election effective with respect to Compensation  received

                  after June 30,  2003.  To be  eligible  to  increase  the

                  election, the Employee must meet all of the following:

                  (1)   The Employee  elected to  contribute  4% or less of

                        Compensation  to the Plan for the 2003  Plan  Year;

                        and

                  (2)   The  Employee   does  not  elect  to  increase  the

                        contribution above 5% of Compensation.

                  An election to increase an Employee's contribution to the

                  Plan described  above will only be effective with respect

                  to Compensation  received after June 30, 2003 and will be

                  irrevocable  for the remainder of the Plan Year. Any such

                  election  shall be made in the manner  prescribed  by the

                  Sponsoring Company, but it can be made no later than June

                  30, 2003.

         3.2  Service  With  A  Predecessor   Employer.  If  the  Plan  had

previously  been  maintained by a predecessor of a  Participating  Company,

whether a corporation,  partnership,  sole proprietorship or other business

entity,  any period of service with such predecessor  shall be treated as a

period of service with a  Participating  Company.  If the Plan had not been

previously maintained by a predecessor of a Participating Company,  service

with such predecessor shall not be taken into account, except to the extent

required pursuant to regulations  prescribed by the United States Secretary

of the Treasury or his delegate.  Notwithstanding the foregoing, service by

a sole  proprietor  or partner  shall not be counted as a period of service

with a Participating Company.

                                 ARTICLE 4

                         PARTICIPATION IN THE PLAN

         4.1  Participation.  Any Employee  eligible to  participate in the

Plan in  accordance  with  Article 3 of the Plan shall become a Member with

respect to the first  paycheck for such  Employee  issued for the first pay

period  beginning  after the  Sponsoring  Company  records such  Employee's

enrollment as a Member.  Such enrollments shall be accomplished by means of

such  administrative  procedures  as may be  prescribed  by the  Sponsoring

Company, from time to time. By enrolling in the Plan, each Member shall (i)

authorize the automatic  deduction of such Member's  contributions  and any

contributions  allocable  to his Tax Deferred  Account  from such  Member's

Compensation or authorize such other method of making  contributions as may

be  required  by the  Sponsoring  Company,  (ii)  designate  such  Member's

investment  election under the provisions of Section 8.2 of the Plan, (iii)

designate one or more  Beneficiaries  pursuant to the provisions of Section

2.1(f) of the Plan, and (iv) provide such other  information,  and agree to

such  conditions,   understandings,   declarations  or  agreements  as  the

Sponsoring Company shall from time to time require.

                                 ARTICLE 5

                            MEMBER CONTRIBUTIONS

         5.1 Rate.  Subject to Section 5.4, Section 6.1 and the limitations

of Article 7, each Member may elect to  contribute  to the Plan by means of

payroll  deduction  (or other  method as may be required by the  Sponsoring

Company)  an amount  not less  than 1% nor more  than 50% (in whole  number

percentages) of  Compensation,  for each payment of  Compensation  received

after  enrolling for  participation  under Section 4.1 of the Plan. The 50%

limit may be exceeded for a Member to the extent required to facilitate the

Member's catch-up contribution under Section 6.1(b). Contributions pursuant

to this Article 5 that are less than or equal to 4% (5%  effective  July 1,

2003) of a Member's Compensation, and with respect to which a Participating

Company contribution is made under the provisions of Article 7 of the Plan,

are designated as Basic Contributions.  Contributions that are in excess of

4% (5% effective July 1, 2003) of a Member's Compensation, and with respect

to which no such Participating Company contribution is made, are designated

as Supplemental Contributions.  All Member contributions shall be paid into

the Plan not less  frequently  than  monthly and shall be allocated to such

Member's Account or Tax Deferred Account as provided in the Plan.

         5.2 Change of Rate.  Subject to Section 3.1(b), a Member may elect

to change his  contribution  rate (including  changes to or from 0%) within

the  limits  set forth in  Section  5.1 by  following  such  administrative

procedures  as may be prescribed by the  Sponsoring  Company,  from time to

time.  Any such change to his  contribution  rate shall be  effective  with

respect  to the first  paycheck  for such  Member  issued for the first pay

period beginning after the Sponsoring Company records such change.

         5.3 Automatic Discontinuance of Contributions.  If a Member ceases

to be an  Employee,  or  otherwise  ceases to be  eligible  to  participate

pursuant to the terms of Article 3 of the Plan, his Basic Contributions and

Supplemental Contributions, if any, shall be automatically discontinued.

If a Member elects to make a hardship  withdrawal  from his Account and Tax

Deferred Account, if any, pursuant to the provisions of Section 12.3 of the

Plan, such Member's Basic Contributions and Supplemental Contributions,  if

any,  shall  be  automatically   discontinued  effective  for  payments  of

Compensation  first  occurring  for the pay period of such Member after the

Sponsoring Company records such withdrawal. The automatic discontinuance of

contributions  resulting from a hardship withdrawal shall last for a period

of 12 calendar  months,  starting with the first calendar month  coincident

with or next following the automatic discontinuance of contributions. After

the  expiration  of  this  12  calendar  month  period,   the  Member  must

affirmatively elect to resume  contributions  pursuant to the provisions of

Section 5.2 of the Plan. The 12-month  suspension  period  described in the

foregoing  shall be  changed to 6 months for  hardship  distributions  made

after December 31, 2001.

In no  event  shall  the  Actual  Contribution  Percentage  for the  Highly

Compensated  Eligible  Employees  exceed  the  greater  of (i)  the  Actual

Contribution  Percentage for the Non-Highly  Compensated Eligible Employees

multiplied  by 1.25;  or (ii) the  lesser  of (A) the  Actual  Contribution

Percentage for the Non-Highly  Compensated Eligible Employees plus 2.00, or

(B) the  Actual  Contribution  Percentage  for the  Non-Highly  Compensated

Eligible  Employees   multiplied  by  2  (hereinafter  called  the  "actual

contribution  percentage test"). The Sponsoring Company may, without notice

to any Member,  discontinue all or part of the  contributions of any one or

more Highly  Compensated  Eligible  Employees when such  discontinuance  is

deemed  necessary or advisable  to  establish  and/or  preserve the Plan as

qualified  under the  provisions of Section  401(a) of the Code and related

provisions  or to satisfy the actual  contribution  percentage  test in the

immediately  preceding  sentence.  To the extent  permitted by  regulations

issued  by the  Secretary  of the  Treasury  of the  United  States  or his

delegate, such discontinuance by the Sponsoring Company may be retroactive.

Notwithstanding  anything to the contrary  contained herein,  the following

actions  may be taken by the  Sponsoring  Company,  without  notice  to any

Member,  in the event that the actual  contribution  percentage test is not

satisfied for the Plan Year:

         (a) If the  actual  deferral  percentage  test of  Section  6.3 is

         satisfied  for such Plan Year,  then the  Sponsoring  Company  may

         recharacterize  such amount of the salary reduction  contributions

         allocated  to  the  Tax  Deferred   Accounts  of  the   Non-Highly

         Compensated Eligible Employees for such Plan Year as Participating

         Company  contributions  for such Plan Year to the extent that such

         recharacterization  would  allow the Plan to  satisfy  the  actual

         contribution percentage test for such Plan Year; provided that the

         actual deferral  percentage test was still met for such Plan Year,

         both  with  and  without  the  amounts  so  recharacterized.   Any

         contributions that are so  recharacterized  shall not otherwise be

         considered to be  Participating  Company  contributions  and shall

         remain  allocated  to the Tax  Deferred  Accounts of the  affected

         Non-Highly Compensated Eligible Employees.

         (b) If the actual  contribution  percentage test for the Plan Year

         cannot be satisfied under (a) of this Section 5.3, then the amount

         by  which  the  Participating  Company  contributions  and  Member

         contributions  for such  Plan  Year  which  are  allocated  to the

         Accounts  of Highly  Compensated  Eligible  Employees  exceeds the

         maximum amount of such contributions that could have been made for

         such Plan Year to satisfy the actual contribution  percentage test

         (hereinafter   "excess   aggregate    contributions")   shall   be

         distributed,  with their allocable share of income or loss, to the

         Highly Compensated  Eligible Employees by the end of the following

         Plan Year, as  determined  for each such Employee in the following

         described  manner.  The  total  amount  of  the  excess  aggregate

         contributions for the year is first  determined.  To determine the

         total  excess  aggregate  contributions,  the actual  contribution

         ratios (which is for each Highly Compensated Eligible Employee the

         ratio of Member and Participating Company contributions  allocated

         to his Account for the Plan Year to his Actual Deferral Percentage

         Compensation for the Plan Year) of the Highly Compensated Eligible

         Employees  for such  Plan  Year are  reduced,  beginning  with the

         Highly Compensated  Eligible Employee(s) having the highest actual

         contribution   ratio,  in  succession,   until  each  such  actual

         contribution  ratio is reduced to no more than the  greater of the

         following --

                  (1)      the   particular   actual   contribution   ratio

                           resulting in the Actual Contribution  Percentage

                           for the Highly  Compensated  Eligible  Employees

                           that    satisfies   the   actual    contribution

                           percentage test, calculated under the formula of

                           [ (M x T) - S ] /  N,  where  M is  the  maximum

                           allowable Actual Contribution Percentage for the

                           Highly  Compensated  Eligible  Employees , based

                           upon the Actual  Contribution  Percentage of the

                           Non-Highly  Compensated  Eligible  Employees for

                           such Plan Year,  T is the total number of Highly

                           Compensated  Eligible  Employees  for  the  Plan

                           Year,  S is the sum of the  actual  contribution

                           ratios  of  the  Highly   Compensated   Eligible

                           Employees  who do not  have the  highest  actual

                           contribution  ratio for the Plan Year,  and N is

                           the  number  of  Highly   Compensated   Eligible

                           Employees   who  do  have  the  highest   actual

                           contribution ratio for the Plan Year; or

                  (2)      the  actual  contribution  ratio  of the  Highly

                           Compensated  Eligible  Employee(s) with the next

                           highest actual contribution ratio;

until no such Highly Compensated  Eligible  Employee's actual  contribution

ratio for the Plan Year exceeds the highest  permitted  such ratio for such

Plan Year.  The amount of the total excess  aggregate  contributions  to be

distributed to a particular  Highly  Compensated  Eligible Employee for the

Plan Year is determined by starting  with the Highly  Compensated  Eligible

Employee  with the  greatest  amount of Member  and  Participating  Company

contributions  allocated to his Account for such Plan Year and reducing the

amount  of  such   contributions   to  the  next  highest  amount  of  such

contributions for a Highly Compensated  Eligible Employee and continuing in

descending order until all the excess aggregate  contributions have been so

allocated and  distributed.  For this purpose,  the highest  amount of such

contributions  is determined after the distribution of any excess aggregate

contributions.  However, the excess aggregate contributions so allocated to

a  Highly  Compensated  Eligible  Employee  cannot  exceed  the  sum of the

Participating  Company  contributions  and  Member  contributions  actually

allocated to such Highly  Compensated  Eligible  Employee's Account for the

Plan  Year.  Excess  aggregate   contributions   distributed  to  a  Highly

Compensated  Eligible  Employee  for a Plan Year shall  first come from any

Supplemental Contributions made by such Employee under Section 5.1 for such

Plan Year and,  if there are still  excess  aggregate  contributions  to be

distributed  after exhausting such Employee's  Supplemental  Contributions,

then the  remaining  portion  of the  distribution  shall  come  from  such

Employee's Basic Contributions under Section 5.1 and Participating  Company

contributions  allocated to his Account for the Plan Year in the proportion

that  such  Basic  Contributions   bears  to  such  Participating   Company

contributions for such Employee for such Plan Year. The amount of allocable

income or loss that is added to a Highly  Compensated  Eligible  Employee's

distribution of excess  aggregate  contributions  is equal to the income or

loss  allocable  to the Member  contributions  under this Article 5 and the

Participating  Company  contributions  for the Plan  Year  multiplied  by a

fraction whose numerator is the excess aggregate contributions allocated to

the  Highly  Compensated  Eligible  Employee  for the Plan  Year and  whose

denominator is the sum of such Employee's  Account on the first day of such

Plan  Year  and  the  Member   contributions   under  this  Article  5  and

Participating Company contributions  allocated to his Account for such Plan

Year.  Notwithstanding  anything to the contrary,  if, during the Plan Year

for which an excess  aggregate  contribution is made, a Highly  Compensated

Eligible  Employee who would  otherwise be allocated a share of such excess

aggregate  contribution with its allocable share of income or loss receives

a distribution of all of his Account,  such distribution shall be deemed to

have been a distribution of such Employee's  share of the excess  aggregate

contribution and its allocable share of income or loss.

         5.4  Rollover  Contributions.  Subject to the  provisions  of this

Section 5.4,  effective after December 31, 1997, a Member may contribute to

the Plan, for allocation to the Member's Account, an amount consisting of a

Direct  Rollover,  a Regular  Rollover or a Conduit IRA  Rollover.  Amounts

contributed by a Member  pursuant to this Section 5.4, and any earnings and

any income allocable  thereto,  shall be fully vested and nonforfeitable at

all times.

         (a) Eligibility.  Effective for rollover contributions to the Plan

         after  December  31,  2002,  Employees  who meet  the  eligibility

         requirements  of Section 3.1 of the Plan and former  Employees who

         still  have an  Account  or Tax  Deferred  Account in the Plan are

         eligible to make contributions under this Section 5.4.

         (b) Direct  Rollover.  A Direct  Rollover is a  contribution  that

         satisfies all of the following:

         (1)  The  contribution  is made in cash  (including a check) or by

              such  other  means  as may be  prescribed  by the  Sponsoring

              Company, in consultation with the Trustee.

         (2)  The contribution  consists of all or a portion of the taxable

              part of the Member's benefit under another qualified trust or

              annuity  (as  defined in Code  section  402(c)(8)).  For this

              purpose, such a contribution may include an eligible rollover

              distribution  to a  Member  that is a  former  Employee  from

              another qualified trust sponsored by the Sponsoring  Company,

              a Participating  Company or an Affiliated Company.  Effective

              for rollover contributions made after December 31, 2001, such

              contributions  that are received  from a qualified  trust may

              also include amounts that were not taxable to the Member upon

              distribution.  The Plan must, however, separately account for

              the rollover  contributions that consist of amounts that were

              both taxable and  non-taxable  to the Member on  distribution

              from the qualified  trust.  The  non-taxable  portion of such

              distribution will be treated as after-tax  contributions made

              after 1986 under clause (ii) of Section  10.1.  Additionally,

              after  December 31,  2001,  the Plan will accept (i) rollover

              contributions  from an annuity contract  described in section

              403(b)   of   the   Code,    excluding   after-tax   employee

              contributions,   and  (ii)  rollover  contributions  from  an

              eligible  plan  under  section  457(b)  of the  Code  that is

              maintained by a state,  political  subdivision of a state, or

              any  agency  or  instrumentality  of  a  state  or  political

              subdivision of a state.

         (3)  The   contribution    constitutes   an   eligible    rollover

              distribution (as defined in Code Section 402(c)(4)).

         (4)  The  contribution is being  transferred  directly to the Plan

              pursuant  to  the  provisions  of  Code  Section  401(a)(31).

              Effective for rollover contributions after December 31, 2001,

              the  contribution is being  transferred  directly to the Plan

              pursuant  to  the  provisions  of  Code  section  401(a)(31),

              403(b)(10) or 457(d)(1)(C), as applicable.

         (c)  Regular  Rollover.  A Regular Rollover is a contribution that

              satisfies  all  the  requirements  enumerated  for  a  Direct

              Rollover in paragraph  (b) of this  Section  5.4,  except the

              requirement  of  paragraph  (b)(4) of this  Section  5.4, and

              which is  delivered  by the Member to the Plan not later than

              the 60th day after  the day of the  Member's  receipt  of the

              amount being contributed as a Regular Rollover. Effective for

              rollover  contributions  after  December 31,  2001,  the time

              limit of the preceding sentence may be extended as allowed in

              Code section 402(c)(3)(B).

         (d)  Conduit  IRA   Rollover.   A  Conduit   IRA   Rollover  is  a

              contribution that satisfies all of the following:

         (1)      The  contribution  is made in cash (including a check) or

                  by  such  other  means  as  may  be   prescribed  by  the

                  Sponsoring Company, in consultation with the Trustee.

         (2)      The  contribution  consists  of  all  or a  portion  of a

                  Member's benefit under an individual  retirement  account

                  or  individual  retirement  annuity,  the assets of which

                  consist  solely of amounts  attributable  to a  qualified

                  trust as defined in Code Section  402(c)(8),  as required

                  under Code  Section  408(d)(3)(A)(ii).  The source of the

                  distribution  for rollover  contributions  after December

                  31,  2001 is not  relevant  so long as the  amount of the

                  rollover  contribution  was  properly in the account from

                  which  it was  distributed  and so long  as the  rollover

                  contribution  to the Plan does not  exceed the amount the

                  Member  received  from such  account that would have been

                  included in gross income.

         (3)      The  contribution  is delivered by the Member to the Plan

                  not later than the 60th day after the day of the Member's

                  receipt of the amount being  contributed as a Conduit IRA

                  Rollover.  Effective  for  rollover  contributions  after

                  December  31,  2001,  the  time  limit  of the  preceding

                  sentence  may be  extended  as  allowed  in Code  section

                  408(d)(3)(i).

         (e)  Information Provided by Member. Before the Plan will accept a

              Direct  Rollover,   a  Regular  Rollover  or  a  Conduit  IRA

              Rollover,  the  Sponsoring  Company may require the Member to

              provide such information and  documentation as the Sponsoring

              Company deems to be convenient and appropriate to demonstrate

              that  the  amount  submitted  as a Direct  Rollover,  Regular

              Rollover or Conduit IRA Rollover  satisfies the  requirements

              applicable  to  such  a  rollover.   If,  after  accepting  a

              contribution  from a  Member  as a Direct  Rollover,  Regular

              Rollover  or Conduit IRA  Rollover,  the  Sponsoring  Company

              becomes   aware  such   contribution   did  not  satisfy  the

              applicable rollover requirements in paragraph (b), (c) or (d)

              of this Section 5.4, then the amount of such contribution and

              any  earnings   attributable  to  it  will  be  automatically

              distributed  within a reasonable time to the Member,  without

              the Member's consent.

         (f)  Investment. Coincident with or prior to the Plan's acceptance

              of a  contribution  under this  Section 5.4, the Member shall

              direct the Plan and the Trustee  regarding the  investment of

              the contribution among the investment  alternatives  provided

              in  Article  8  of  the  Plan.  The  Member's  investment  of

              contributions  under this Section 5.4 shall be subject to all

              the relevant provisions of Article 8 of the Plan and shall be

              subject to such administrative procedures as prescribed, from

              time to time, by the Sponsoring Company, in consultation with

              the Trustee.

         (g)  Amounts   Received   as   Surviving   Spouse  or   Alternate.

              Distributions  received by an  Employee in the  capacity of a

              surviving  spouse or an  alternate  payee  under a  qualified

              domestic  relations order that satisfies the  requirements of

              paragraph (a) hereof shall be eligible to be  contributed  to

              the  Plan  as  a  rollover   contribution   if  the  relevant

              provisions  of this  Section 5.4 are met with  respect to the

              same as though the Employee  were an employee with respect to

              such distribution.

                                 ARTICLE 6

                       SALARY REDUCTION CONTRIBUTIONS

         6.1      Salary Reduction Election.

         (a)  General.  Subject to the  provisions  of Section  6.3 and the

limitations of Article 7, each Member may elect to reduce his  remuneration

from a Participating  Company by having an amount of his contribution under

Article  5 of the  Plan,  determined  in whole  number  percentages  of his

Compensation, allocated to his Tax Deferred Account. Such election shall be

made pursuant to such administrative procedures as may be prescribed by the

Sponsoring  Company,  from time to time.  Member  contributions  under this

Section 6.1,  when  combined  with any other  contributions  of such Member

intended to be made under Section  401(k) of the Code to any other plan (if

any) which allows such  contributions  maintained by the Sponsoring Company

or maintained by an Affiliated Company,  which are made by such Member from

and after the time any such plan was so  maintained,  shall not  exceed the

dollar  limitation  as  determined  by the United  States  Secretary of the

Treasury or his delegate  pursuant to Section 402(g) of the Code to reflect

increases  in the cost of living and to be adjusted no more than  annually.

Notwithstanding  anything in the foregoing to the  contrary,  effective for

contributions after December 31, 2001, the applicable limit of Code section

402(g) may be exceeded as allowed in  paragraph  (b) of this  Section  6.1.

Notwithstanding  anything in the foregoing to the  contrary,  if a Member's

contributions under this Section 6.1 made during a calendar year exceed the

maximum  dollar  limitation  described  above  (hereinafter  called "excess

deferral"),  then such Member may notify the Sponsoring  Company by March 1

of the calendar  year  following  the  calendar  year for which such excess

deferral was made, in writing,  under such  procedures as may be prescribed

by the Sponsoring Company,  from time to time, of the amount of such excess

deferral in the Plan.  If the  Sponsoring  Company has actual  knowledge of

such an excess  deferral for a Member,  then such written  notice from such

Member  shall be deemed to have been  given.  After such  actual  notice or

deemed notice occurs,  the amount of such excess  deferral,  reduced by any

prior  distributions  of excess  contributions  under Section 6.3, shall be

distributed to the Member,  with its allocable  share of income or loss, by

April 15 of the calendar  year  following  the calendar  year for which the

excess deferral occurred;  provided, however, that such distribution may be

made  earlier,  including  within  the  calendar  year for which the excess

deferral  occurred.   The  amount  of  income  or  loss  allocable  to  the

distribution of the excess deferral is determined by multiplying the amount

of income or loss allocable to the  contributions  made to the Plan for the

calendar year during which the excess  occurred (or if earlier,  the income

or loss for such  contributions as of the Valuation Date immediately  prior

to the  distribution)  by a fraction whose numerator is the excess deferral

for such  Member  and whose  denominator  is the sum of such  Member's  Tax

Deferred Account balance as of the beginning of the calendar year for which

the excess deferral occurred and the amount of such Member's  contributions

under this Section 6.1 for that calendar year (or if earlier, the amount of

such  contributions  as of the  Valuation  Date  immediately  prior  to the

distribution).  Excess  deferrals  distributed  shall  first  come from any

Supplemental  Contributions made under this Section 6.1 during the calendar

year for which the excess deferral  occurred and, if there are still excess

deferrals   to  be   distributed   after   exhausting   such   Supplemental

Contributions,  then the remaining  portion of the distribution  shall come

from the Member's  Basic  Contributions  under this Section 6.1 made during

such calendar year,  provided,  that notwithstanding any other provision of

the  Plan  to  the  contrary,  the  amount  of  any  Participating  Company

contributions  related to any such Basic  Contributions  shall be forfeited

and used to reduce the amount of Participating  Company  contributions that

would otherwise be required.  Notwithstanding anything to the contrary, if,

during the calendar year for which an excess deferral is made, a Member who

would otherwise  receive a distribution of such an excess deferral with its

allocable share of income or loss receives a distribution of all of his Tax

Deferred  Account,  such  distribution  shall  be  deemed  to  have  been a

distribution  of such Member's  excess  deferral and its allocable share of

income or loss.

         (b) Catch-Up Contributions. Effective for contributions made after

December 31, 2001,  Members who will be at least age 50 before the close of

the applicable  Plan Year shall be able to make catch-up  contributions  in

accordance  with, and subject to the  limitations  of, Code section 414(v).

Such catch-up contributions shall not be taken into account for purposes of

the  provisions  of the  Plan  implementing  the  required  limitations  of

sections  402(g)  and 415 of the Code.  The Plan  shall not be  treated  as

failing to satisfy the provisions of the Plan implementing the requirements

of section 401(k)(3), 401(k)(11), 401(k)(12), 410(b) or 416 of the Code, as

applicable,  by reason of the making of such  catch-up  contributions.  The

Sponsoring  Company  shall  prescribe  administrative  procedures  that  it

considers to be  convenient  to facilitate  catch-up  contributions.  These

procedures may be changed from time to time.

         6.2  Change or  Suspension/Resumption  of Salary  Reduction  Rate.

Subject to Sections 3.1(b),  5.1 and 6.1 of the Plan, a Member may elect to

change the amount of his contributions  being allocated to his Tax Deferred

Account,  in amounts  equal to one or more whole  percentage  points of his

Compensation   (including  changes  to  or  from  0%),  by  following  such

administrative  procedures as may be prescribed by the Sponsoring  Company,

from time to time,  and any such change shall be effective  with respect to

the  first  paycheck  for such  Member  issued  for the  first  pay  period

beginning after the Sponsoring Company records such change.

         6.3 Automatic Suspension or Discontinuance of Salary Reduction. If

a Member  ceases to be an Employee,  or otherwise  ceases to be eligible to

participate  pursuant  to the terms of  Article  3 of the  Plan,  his Basic

Contributions  and  Supplemental  Contributions,  that were  being made and

allocated  pursuant  to the  terms  of this  Article  6, if any,  shall  be

automatically  discontinued.

If a Member elects to make a hardship  withdrawal  from his Account and Tax

Deferred Account, if any, pursuant to the provisions of Section 12.3 of the

Plan, such Member's Basic  Contributions  and  Supplemental  Contributions,

that were being made and allocated pursuant to the terms of this Article 6,

if any,  shall be  automatically  discontinued  effective  for  payments of

Compensation  first  occurring  for the pay period of such Member after the

Sponsoring Company records such withdrawal. The automatic discontinuance of

contributions  resulting from a hardship withdrawal shall last for a period

of 12 calendar  months,  starting with the first calendar month  coincident

with or next following the automatic discontinuance of contributions. After

the  expiration  of  this  12  calendar  month  period,   the  Member  must

affirmatively elect to resume  contributions  pursuant to the provisions of

Section 5.2 and/or Section 6.2 of the Plan. The 12-month  suspension period

described  in the  foregoing  shall be  changed  to 6 months  for  hardship

distributions made after December 31, 2001.

In no event shall the Actual Deferral Percentage for the Highly Compensated

Eligible Employees exceed the greater of (i) the Actual Deferral Percentage

for the Non-Highly  Compensated  Eligible Employees  multiplied by 1.25; or

(ii) the lesser of (A) the Actual  Deferral  Percentage  for the Non-Highly

Compensated  Eligible  Employees  plus  2.00,  or (B) the  Actual  Deferral

Percentage for the Non-Highly  Compensated Eligible Employees multiplied by

2 (hereinafter called the "actual deferral percentage test").  However, the

amount of any  excess  deferrals  under  Section  6.1 for a  calendar  year

attributable  to  Non-Highly   Compensated   Eligible  Employees  shall  be

disregarded  and  excluded  from the  computation  of the  actual  deferral

percentage test for the Plan Year in which such excess deferrals  occurred,

and, for this purpose, such excess deferrals shall be deemed to be the last

contributions  made during the calendar year in which such excess deferrals

occurred, going backwards,  until the contributions so determined equal the

amount of the excess deferral for any such Employee. The Sponsoring Company

may,  without  notice  to any  Member,  discontinue  the  salary  reduction

contributions  of any one or more Highly  Compensated  Employees  when such

discontinuance  is  deemed  necessary  or  advisable  to  establish  and/or

preserve the Plan as qualified  under the  provisions of Section 401(a) and

Section 401(k) of the Code. To the extent  permitted by regulations  issued

by the Secretary of the Treasury of the United States or his delegate, such

discontinuance  by the Sponsoring  Company may be retroactive  and/or be by

way  of  reclassification  of  Member   contributions   and/or  by  way  of

distributions   to  Members.   If  salary   reduction   contributions   are

discontinued  pursuant  to the  terms  of this  Section  6.3,  the  payroll

deductions which were related to such  contributions  shall continue at the

same rate for each affected Member, and such contributions,  from and after

the date of such  discontinuance,  shall be deemed to be contributions made

under and  subject  to the  provisions  of Article  5,  including,  but not

limited to, the limitations  applicable to such contributions under Section

5.4 of the Plan.  If the  Sponsoring  Company  determines  to allow  salary

reduction  contributions to resume for any or all of the Highly Compensated

Eligible Employees,  the rate of the contributions being made as of the day

prior to such resumption  which related to the original  discontinuance  of

the  salary  reduction  contributions  shall  cease  to be made  under  the

provisions  of  Article  5 and  shall,  from  and  after  the  date of such

resumption,  be made  under the terms of this  Article 6 at a rate for each

Member  equal to the  lesser of the rate at which such  contributions  were

being  made  prior  to  their  prior  discontinuance  or  such  rate  as is

prescribed by the Sponsoring Company, pursuant to the terms of this Section

6.3.  Notwithstanding  anything  to  the  contrary  contained  herein,  the

following actions may be taken by the Sponsoring Company, without notice to

any Member,  in the event that the actual  deferral  percentage test is not

satisfied for the Plan Year. In such event,  the amount by which the salary

reduction  contributions  for such Plan Year which are allocated to the Tax

Deferred  Accounts of Highly  Compensated  Eligible  Employees  exceeds the

maximum  amount of such  contributions  that  could have been made for such

Plan Year to  satisfy  the actual  deferral  percentage  test  (hereinafter

"excess contributions") shall be distributed, with their allocable share of

income or loss, to the Highly Compensated  Eligible Employees by the end of

the  following  Plan Year,  as  determined  for each such  Employee  in the

following  described manner.  To determine the total excess  contributions,

the actual deferral ratios (which is for each Highly  Compensated  Eligible

Employee the ratio of salary reduction  contributions  allocated to his Tax

Deferred  Account  for the  Plan  Year to his  Actual  Deferral  Percentage

Compensation  for  the  Plan  Year)  of  the  Highly  Compensated  Eligible

Employees  for  such  Plan  Year are  reduced,  beginning  with the  Highly

Compensated  Eligible Employee(s) having the highest actual deferral ratio,

in succession,  until each such actual deferral ratio is reduced to no more

than the greater of the following --

                  (1)      the particular  actual  deferral ratio resulting

                           in the Actual Deferral Percentage for the Highly

                           Compensated  Eligible  Employees  that satisfies

                           the actual deferral percentage test,  calculated

                           under the  formula of [ (M x T) - S ] / N, where

                           M  is  the  maximum  allowable  Actual  Deferral

                           Percentage for the Highly  Compensated  Eligible

                           Employees  ,  based  upon  the  Actual  Deferral

                           Percentage   of   the   Non-Highly   Compensated

                           Eligible  Employees for such Plan Year, T is the

                           total  number  of  Highly  Compensated  Eligible

                           Employees for the Plan Year, S is the sum of the

                           actual deferral ratios of the Highly Compensated

                           Eligible  Employees  who do not have the highest

                           actual  deferral  ratio for the Plan Year, and N

                           is the  number  of Highly  Compensated  Eligible

                           Employees   who  do  have  the  highest   actual

                           deferral ratio for the Plan Year; or

                  (2)      the   actual   deferral   ratio  of  the  Highly

                           Compensated  Eligible  Employee(s) with the next

                           highest  actual  deferral  ratio;  until no such

                           Highly  Compensated  Eligible  Employee's actual

                           deferral  ratio  for the Plan Year  exceeds  the

                           highest permitted such ratio for such Plan Year.

                  The  amount  of  the  total  excess  contributions  to be

                  distributed to a particular Highly  Compensated  Eligible

                  Employee for the Plan Year is determined by starting with

                  the  Highly   Compensated   Eligible  Employee  with  the

                  greatest   amount  of  salary   reduction   contributions

                  allocated to his Tax Deferred  Account for such Plan Year

                  and reducing the amount of such contributions to the next

                  highest  amount  of  such   contributions  for  a  Highly

                  Compensated   Eligible   Employee   and   continuing   in

                  descending order until all the excess  contributions have

                  been so allocated and distributed.  For this purpose, the

                  highest amount of such  contributions is determined after

                  the  distribution of any excess  contributions.  However,

                  the  excess   contributions  so  allocated  to  a  Highly

                  Compensated Eligible Employee cannot exceed the amount of

                  salary reduction contributions actually allocated to such

                  Highly  Compensated   Eligible  Employee's  Tax  Deferred

                  Account for the Plan Year,  and are reduced by the amount

                  of any  previously  distributed  excess  deferrals  under

                  Section  6.1  attributable  to  such  Plan  Year.  Excess

                  contributions   distributed   to  a  Highly   Compensated

                  Eligible  Employee  for a Plan Year shall first come from

                  any Supplemental  Contributions made by such Employee and

                  allocated to his Tax Deferred  Account for such Plan Year

                  and,  if  there  are  still  excess  contributions  to be

                  distributed after exhausting such Employee's Supplemental

                  Contributions,   then  the   remaining   portion  of  the

                  distribution   shall  come  from  such  Employee's  Basic

                  Contributions  that were  allocated  to his Tax  Deferred

                  Account    for   such   Plan   Year,    provided,    that

                  notwithstanding  any other  provision  of the Plan to the

                  contrary,   the  amount  of  any  Participating   Company

                  contributions  related  to any such  Basic  Contributions

                  shall be  forfeited  and used to  reduce  the  amount  of

                  Participating  Company contributions that would otherwise

                  be required.  The amount of allocable income or loss that

                  is  added  to a Highly  Compensated  Eligible  Employee's

                  distribution  of  excess  contributions  is  equal to the

                  income  or  loss   allocable  to  the  salary   reduction

                  contributions  for the Plan Year multiplied by a fraction

                  whose numerator is the excess contributions  allocated to

                  the Highly  Compensated  Eligible  Employee  for the Plan

                  Year and whose  denominator is the sum of such Employee's

                  Tax  Deferred  Account on the first day of such Plan Year

                  and the salary reduction contributions under allocated to

                  his  Tax   Deferred   Account   for   such   Plan   Year.

                  Notwithstanding  anything to the contrary, if, during the

                  Plan  Year for which an excess  contribution  is made,  a

                  Highly Compensated  Eligible Employee who would otherwise

                  be allocated a share of such excess contribution with its

                  allocable share of income or loss receives a distribution

                  of all of his Tax  Deferred  Account,  such  distribution

                  shall  be  deemed  to have  been a  distribution  of such

                  Employee's  share  of the  excess  contribution  and  its

                  allocable share of income or loss.

                                 ARTICLE 7

                    PARTICIPATING COMPANY CONTRIBUTIONS

         7.1      Participating Company Contributions.

         (a)  Prior to July 1,  2003.  The  Participating  Companies  shall

         contribute  to the  Trust,  in cash or in kind,  on behalf of each

         Member for whom there are Member Basic  Contributions,  the amount

         derived from the following table:

--------------------------------------------------------------- -------------------------------------------------------------

                           Column 1                                                       Column 2

       Successive Levels of Member Basic Contributions, as a      Participating Company Contributions as a Percentage of each

            Percentage of Compensation, to which Levels of                Level of Member Basic Contributions in Column 1

              Participating Company Contributions Relate

--------------------------------------------------------------- -------------------------------------------------------------

            1. at least 1% and not greater than 2%                                        1. 110%

--------------------------------------------------------------- -------------------------------------------------------------

            2. at least 3% and not greater than 4%                                        2. 100%

--------------------------------------------------------------- -------------------------------------------------------------

         Any forfeitures  under the Plan shall be used to reduce the amount

         of the Participating Companies' contributions that would otherwise

         be contributed  under this Section 7.1. The  determination  of the

         amount of the aggregate  Participating Company contributions,  and

         the payment thereof,  for each payment of Compensation for which a

         contribution  is to be made  shall be made as soon as  practicable

         after the payment of such Compensation,  as arranged, from time to

         time, between the Sponsoring  Company and the Trustee.  Subject to

         the  limitations  of Section 7.2 and Section 7.3 of the Plan,  the

         Participating  Company  contributions  made  with  regard  to each

         Member's  Basic  Contributions  shall  be  allocated  between  the

         Account and  Restricted  Company Match Account of each such Member

         for  the  period  for  which  such  allocation  is  being  made as

         determined under the following table:

-------------------------------- ------------------------------ ------------------------------ ------------------------------

           Column 1                        Column 2                       Column 3                       Column 4

 Member Basic Contributions in       Participating Company        Portion of Participating       Portion of Participating

 1 Percentage Point Increments   Contributions for each $1 of     Company Contributions in       Company Contributions in

                                  Member Basic Contributions      Column 2 Allocated to the      Column 2 Allocated to the

                                          in Column 1                 Member's Account          Member's Restricted Company

                                                                                                       Match Account

-------------------------------- ------------------------------ ------------------------------ ------------------------------

1.            first 1% of                  1. $1.10                       1. $ .30                       1. $ .80

            Compensation

-------------------------------- ------------------------------ ------------------------------ ------------------------------

2.            second 1% of                 2. $1.10                       2. $ .30                       2. $ .80

            Compensation

-------------------------------- ------------------------------ ------------------------------ ------------------------------

3.            third 1% of                  3. $1.00                       3. $ .30                       3. $ .70

            Compensation

-------------------------------- ------------------------------ ------------------------------ ------------------------------

4.            fourth 1% of                 4. $1.00                       4. $ .30                       4. $ .70

            Compensation

-------------------------------- ------------------------------ ------------------------------ ------------------------------

         Each Participating  Company's share of the aggregate Participating

         Company  contributions  for any period for which an  allocation is

         made  shall  equal  the sum of the  allocations  pursuant  to this

         Section 7.1 of such aggregate  Participating Company contributions

         to the  Accounts  of the Members  employed  by such  Participating

         Company  during such period.

         (b) After June 30,  2003.  Effective  with  respect to an eligible

         Member's Basic  Contributions  made to the Plan from  Compensation

         received after June 30, 2003, the  Participating  Companies  shall

         contribute  to the  Trust,  in cash or in kind,  on behalf of each

         Member for whom there are Member Basic  Contributions,  the amount

         derived from the following table:

--------------------------------------------------------------- -------------------------------------------------------------

                           Column 1                                                       Column 2

    Successive Levels of Member Basic Contributions, as a       Participating Company Contributions as a Percentage of each

            Percentage of Compensation, to which Levels of                 Level of Member Basic Contributions in Column 1

              Participating Company Contributions Relate

--------------------------------------------------------------- -------------------------------------------------------------

            1. at least 1% and not greater than 5%                                        1. 100%

--------------------------------------------------------------- -------------------------------------------------------------

         Any forfeitures  under the Plan shall be used to reduce the amount

         of the Participating Companies' contributions that would otherwise

         be contributed  under this Section 7.1. The  determination  of the

         amount of the aggregate  Participating Company contributions,  and

         the payment thereof,  for each payment of Compensation for which a

         contribution  is to be made  shall be made as soon as  practicable

         after the payment of such Compensation,  as arranged, from time to

         time, between the Sponsoring  Company and the Trustee.  Subject to

         the  limitations  of Section 7.2 and Section 7.3 of the Plan,  the

         Participating  Company  contributions  made  with  regard  to each

         Member's Basic  Contributions shall be allocated to the Account of

         each such Member for the period for which such allocation is being

         made  with a portion  of such  contribution  invested  in Fund A -

         Ashland Common Stock Fund and the remainder  invested  pursuant to

         the Member's  investment  election for contributions of the Member

         under Articles 5 and 6 as determined under the following table:

-------------------------------- ------------------------------ ------------------------------ ------------------------------

           Column 1                        Column 2                       Column 3                       Column 4

 Member Basic Contributions in       Participating Company        Portion of Participating       Portion of Participating

 1 Percentage Point Increments   Contributions for each $1 of     Company Contributions in       Company Contributions in

                                  Member Basic Contributions      Column 2 Allocated to the     Column 2 Invested on behalf

                                          in Column 1                 Member's Account           of the Member in Fund A -

                                                                                                 Ashland Common Stock Fund

-------------------------------- ------------------------------ ------------------------------ ------------------------------

1.            first 1% of                  1. $1.0 0                      1. $ .40                       1. $ .60

            Compensation

-------------------------------- ------------------------------ ------------------------------ ------------------------------

2.            second 1% of                 2. $1.00                       2. $ .40                       2. $ .60

            Compensation

-------------------------------- ------------------------------ ------------------------------ ------------------------------

3.            third 1% of                  3. $1.00                       3. $ .40                       3. $ .60

            Compensation

-------------------------------- ------------------------------ ------------------------------ ------------------------------

4.            fourth 1% of                 4. $1.00                       4. $ .40                       4. $ .60

            Compensation

-------------------------------- ------------------------------ ------------------------------ ------------------------------

5.            fifth 1% of                  5. $1.00                       5. $ .40                       5. $ .60

            Compensation

-------------------------------- ------------------------------ ------------------------------ ------------------------------

         Each Participating  Company's share of the aggregate Participating

         Company  contributions  for any period for which an  allocation is

         made  shall  equal  the sum of the  allocations  pursuant  to this

         Section 7.1 of such aggregate  Participating Company contributions

         to the  Accounts  of the Members  employed  by such  Participating

         Company during such period.

         7.2      Limitation on Annual Additions.

         (a)      Notwithstanding  any other provision of the Plan, the sum

                  of the Annual  Additions  (as  hereinafter  defined) to a

                  Member's   Account  and  Tax   Deferred   Account  for  a

                  Limitation  Year (as defined in Section 7.4) ending after

                  January  1, 1984  shall not  exceed  the  lesser  of: (i)

                  $30,000 as  adjusted  under  Section  415(d) of the Code,

                  determined as of the applicable  Limitation Year; or (ii)

                  25% of such Member's  Limitation  Year  Compensation  (as

                  defined in Section 7.4).  Effective for Limitation  Years

                  beginning  after  December 31, 2001,  the sum of the said

                  Annual  Additions  shall not exceed  (except as otherwise

                  allowed  under Code  section  414(v))  the lesser of: (i)

                  $40,000 as  adjusted  under  Section  415(d) of the Code,

                  determined as of the applicable  Limitation Year; or (ii)

                  100% of such Member's  Limitation Year  Compensation  (as

                  defined in Section  7.4).  The  limitation in each clause

                  (ii)  above   shall  not  apply   with   respect  to  any

                  contributions for medical benefits (within the meaning of

                  Section  419A(f)(2)  of the Code) after  separation  from

                  service which are otherwise treated as an Annual Addition

                  or to any amount otherwise  treated as an Annual Addition

                  under  Section  415(l)  of  the  Code.  The  term  Annual

                  Additions to a Member's  Account for any Limitation  Year

                  shall mean the sum of:

                  (1)      such  Member's  allocable  share  of  the  total

                           aggregate  Participating  Company  contributions

                           for the Plan Year ending within such  Limitation

                           Year;

                  (2)      amounts  allocated  under  Section  6.1 to  such

                           Member's Tax Deferred  Account for the Plan Year

                           ending within such  Limitation  Year (other than

                           excess  deferrals  distributed  to the Member by

                           April  15 of the  calendar  year  following  the

                           calendar year during which such excess  deferral

                           arose);

                  (3)      the  amount  of  such   Member's   total   Basic

                           Contributions and Supplemental  Contributions to

                           his account for the Plan Year ending within such

                           Limitation    Year    (other    than    rollover

                           contributions, repayments of loans or of amounts

                           described in Section 411(a)(7)(B) of the Code in

                           accordance   with  the   provisions  of  Section

                           411(a)(7)(C) of the Code,  repayments of amounts

                           described in Section  411(a)(3)(D)  of the Code,

                           direct   transfers   between   qualified  plans,

                           deductible  employee  contributions  within  the

                           meaning of  Section  72(o)(5)  of the Code;  and

                           salary  reduction  contributions to a simplified

                           employee  pension plan which are excludable from

                           gross  income  under  Section  408(k)(6)  of the

                           Code);

                  (4)      amounts  allocated,  in  years  beginning  after

                           March 31, 1984, to an individual medical benefit

                           account,  as defined in Section 415(l)(2) of the

                           Code,  which is part of a defined  benefit plan;

                           and

                  (5)      amounts  derived  from   contributions  paid  or

                           accrued  after  December  31,  1985,  in taxable

                           years   ending   after  such  date,   which  are

                           attributable to post-retirement medical benefits

                           allocated  to  the  separate  account  of a  key

                           employee,  as defined in Section  419A(d)(3)  of

                           the Code,  under a  welfare  benefits  fund,  as

                           defined   in   Section   419(e)   of  the  Code,

                           maintained  by a  Participating  Company  or  an

                           Affiliated Company.

         Except as provided in (2) of this paragraph (a), excess deferrals,

         excess  contributions  and  excess  aggregate   contributions  are

         included as Annual  Additions  for the  Limitation  Year for which

         they are  allocated  to an  account.

         (b)      In the  event  that it is  determined  that,  but for the

                  limitations  contained in  paragraph  (a) of this Section

                  7.2, the Annual  Additions to a Member's  Account and Tax

                  Deferred  Account  for any  Limitation  Year  would be in

                  excess of the limitations  contained herein,  such Annual

                  Additions  shall be reduced to the  extent  necessary  to

                  bring  such  Annual   Additions   within  the  limitation

                  contained  in  paragraph  (a) of this  Section 7.2 in the

                  following order:

                  (1)      Any  employee  contributions  by a Member to his

                           Account   which  are  included  in  such  Annual

                           Additions  shall  be  returned  to  such  Member

                           together  with  any  gain  attributable  to such

                           returned  employee   contributions   unless  the

                           return  of  employee  contributions  under  this

                           sub-paragraph  (1) results in  discrimination in

                           favor of employees of the Sponsoring Company, or

                           other  Participating  Company  which  is  not an

                           Affiliated  Company of the  Sponsoring  Company,

                           who are officers or highly compensated;

                  (2)      If there are no such employee contributions, or,

                           if  such   employee   contributions   cannot  be

                           returned  or are not  sufficient  to reduce such

                           Annual  Additions to the  limitations  contained

                           herein, to the extent permitted by the Code and/

                           or regulations issued thereunder,  contributions

                           allocated  to a Member's  Tax  Deferred  Account

                           which  are  included  in such  Annual  Additions

                           shall be paid to such Member  together  with any

                           gain attributable to such contributions;

                  (3)      If there  are no such  allocations,  or, if such

                           allocations cannot be paid to such Member or are

                           not  sufficient to reduce such Annual  Additions

                           to  the  limitations   contained  herein,   such

                           Member's   allocable   share  of  the  aggregate

                           Participating Company contributions for the Plan

                           Year ending within such Limitation Year shall be

                           reduced.

         (c)      To the extent that the amount of any  Member's  allocable

                  share   of   the    aggregate    Participating    Company

                  contributions   is   reduced  in   accordance   with  the

                  provisions  of  paragraph  (b) of this  Section  7.2, the

                  amount  of  such   reductions   shall  be  treated  as  a

                  forfeiture  under the Plan and shall be applied to reduce

                  Participating  Company  contributions  made or to be made

                  after the date on which such reduction arose or, if there

                  are no such contributions  made, shall be returned to the

                  Participating Companies.

         7.3 Limitation on Annual Additions for Participating  Companies or

Affiliated  Companies  Maintaining Other Defined Contribution Plans. In the

event that any Member of this Plan is a participant under any other Defined

Contribution Plan (as defined in Section 7.4) maintained by a Participating

Company or an Affiliated  Company  (whether or not  terminated),  the total

amount of Annual Additions to such Member's accounts under all such Defined

Contribution  Plans shall not exceed the  limitations  set forth in Section

7.2; provided, however, if any such Defined Contribution Plan is subject to

a special limitation in addition to, or instead of, the regular limitations

described in Sections  415(b) and 415(c) of the Code:  (i) the total amount

of Annual  Additions to such  Member's  Account,  Tax Deferred  Account and

Restricted  Company  Match Account in this Plan (only) shall not exceed the

limitations set forth in Section 7.2, (ii) the combined limitations for all

such Defined  Contribution  Plans (including this Plan) shall be the larger

of such special  limitation or the limitations set forth in Section 7.2 and

(iii) if any such other Defined  Contribution Plan is a tax credit employee

stock ownership plan under which the amount  allocated to such Member for a

Limitation  Year is equal to the  limitation  set forth in Section  7.2, no

part of the total aggregate  Participating  Company  contributions for such

Limitation  Year may be allocated to such Member under this Plan.  If it is

determined  that as a result of the  limitations  set forth in this Section

7.3 the Annual  Additions to a Member's  Account,  Tax Deferred Account and

Restricted  Company  Match  Account  in this  Plan  must be  reduced,  such

reduction  shall be  accomplished  in  accordance  with the  provisions  of

Section 7.2.

         7.4  Definitions  Relating to Annual  Additions  Limitations.  For

purposes of Section 7.2,  Section 7.3 and this  Section 7.4, the  following

definitions  shall apply:

         (a)      "Retirement  Plan"  shall  mean (i) any  profit  sharing,

                  pension or stock bonus plan described in Sections  401(a)

                  and 501(a) of the Code,  (ii) any annuity plan or annuity

                  contract  described  in Sections  403(a) or 403(b) of the

                  Code, (iii) any qualified bond purchase plan described in

                  Section   405(a)  of  the  Code,   (iv)  any   individual

                  retirement  account,  individual  retirement  annuity  or

                  retirement bond described in Sections  408(a),  408(b) or

                  409(a)  of the  Code  and  (v)  any  simplified  employee

                  pension.

         (b)      "Defined  Contribution  Plan" shall mean (i) a Retirement

                  Plan which  provides for an  individual  account for each

                  participant  therein and for benefits based solely on the

                  amount contributed to the participant's  account, and any

                  income,  expenses,  gains and losses, and any forfeitures

                  of accounts of other  participants which may be allocated

     &nbs