FORM 10-Q

                SECURITIES AND EXCHANGE COMMISSION
                    Washington, D. C. 20549

   ( X )   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
               THE SECURITIES EXCHANGE ACT OF 1934

           For the quarterly period ended June 30, 1997

                               OR

   (   )   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
               THE SECURITIES EXCHANGE ACT OF 1934

       For the transition period from __________to________

                  Commission File Number 1-2256


                         EXXON CORPORATION
     _______________________________________________________
      (Exact name of registrant as specified in its charter)




            NEW JERSEY                           13-5409005
  ______________________________             __________________
 (State or other jurisdiction of              (I.R.S. Employer
 (incorporation or organization)          (Identification Number)




    5959 Las Colinas Boulevard, Irving, Texas   75039-2298
_________________________________________________________________
    (Address of principal executive offices)    (Zip Code)


                          (972) 444-1000
    _________________________________________________________
       (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all 
reports required to be filed by Section 13 or 15(d) of the Securities 
Exchange Act of 1934 during the preceding 12 months (or for such 
shorter period that the registrant was required to file such 
reports), and (2) has been subject to such filing requirements for 
the past 90 days. Yes  X No   .
                      ___  __

Indicate the number of shares outstanding of each of the issuer's 
classes of common stock, as of the latest practicable date.


           Class                  Outstanding as of June 30, 1997
_______________________________   _______________________________
Common stock, without par value             2,474,366,358





                    EXXON CORPORATION

                        FORM 10-Q

      FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1997


                    TABLE OF CONTENTS

                                                               Page
                                                              Number
                                                              ______

              PART I.  FINANCIAL INFORMATION


Item 1.  Financial Statements

  Condensed Consolidated Statement of Income                       3
    Three and six months ended June 30, 1997 and 1996

  Condensed Consolidated Balance Sheet                             4
    As of June 30, 1997 and December 31, 1996

  Condensed Consolidated Statement of Cash Flows                   5
    Six months ended June 30, 1997 and 1996

  Notes to Condensed Consolidated Financial Statements         6 - 8

Item 2.  Management's Discussion and Analysis of Financial     9 -13
           Condition and Results of Operations


                     PART II.  OTHER INFORMATION


Item 2.  Changes in Securities                                    14

Item 4.  Submission of Matters to a Vote of Security Holders   14-15

Item 6.  Exhibits and Reports on Form 8-K                         15

Signature                                                         16

Index to Exhibits                                                 17

















                                 -2-

                        PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                                 EXXON CORPORATION
                    CONDENSED CONSOLIDATED STATEMENT OF INCOME
                               (millions of dollars)
Three Months Ended Six Months Ended June 30, June 30, __________________ ________________ REVENUE 1997 1996 1997 1996 _______ _______ _______ _______ Sales and other operating revenue, including excise taxes $32,314 $31,625 $65,419 $62,099 Earnings from equity interests and other revenue 533 586 1,018 1,317 ______ ______ ______ ______ Total revenue 32,847 32,211 66,437 63,416 ______ ______ ______ ______ COSTS AND OTHER DEDUCTIONS Crude oil and product purchases 13,708 13,325 28,217 25,922 Operating expenses 3,202 3,270 6,443 6,558 Selling, general and administrative expenses 2,012 2,020 3,891 3,956 Depreciation and depletion 1,342 1,306 2,707 2,678 Exploration expenses, including dry holes 141 149 306 289 Interest expense 104 136 176 212 Excise taxes 3,631 3,650 7,180 6,960 Other taxes and duties 5,449 5,623 10,642 11,129 Income applicable to minority and preferred interests 98 80 197 219 ______ ______ ______ ______ Total costs and other deductions 29,687 29,559 59,759 57,923 ______ ______ ______ ______ INCOME BEFORE INCOME TAXES 3,160 2,652 6,678 5,493 Income taxes 1,195 1,082 2,538 2,038 ______ ______ ______ ______ NET INCOME $ 1,965 $ 1,570 $ 4,140 $ 3,455 ====== ====== ====== ====== Net income per common share* $ 0.79 $ 0.63 $ 1.66 $ 1.39 Dividends per common share* $ 0.410 $ 0.395 $ 0.805 $ 0.770 Average number common shares outstanding (millions)* 2,478.5 2,484.1 2,480.9 2,484.0
Net income per share computed as income less dividends on preferred stock divided by the weighted average number of common shares outstanding. * Prior year amounts restated to reflect two-for-one stock split effective March 14, 1997. -3- EXXON CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET (millions of dollars)
June 30, Dec. 31, 1997 1996 ______ ______ ASSETS Current assets Cash and cash equivalents $ 4,720 $ 2,951 Other marketable securities 22 18 Notes and accounts receivable - net 9,814 10,499 Inventories Crude oil, products and merchandise 4,384 4,501 Materials and supplies 752 784 Prepaid taxes and expenses 1,102 1,157 ______ ______ Total current assets 20,794 19,910 Property, plant and equipment - net 65,520 66,607 Investments and other assets 8,606 9,010 ______ ______ TOTAL ASSETS $94,920 $95,527 ====== ====== LIABILITIES Current liabilities Notes and loans payable $ 2,643 $ 2,510 Accounts payable and accrued liabilities 13,691 14,510 Income taxes payable 2,398 2,485 ______ ______ Total current liabilities 18,732 19,505 Long-term debt 7,041 7,236 Annuity reserves, deferred credits and other liabilities 25,332 25,244 ______ ______ TOTAL LIABILITIES 51,105 51,985 ______ ______ SHAREHOLDERS' EQUITY Preferred stock, without par value: Authorized: 200 million shares Outstanding: 4 million shares at June 30, 1997 221 5 million shares at Dec. 31, 1996 303 Guaranteed LESOP obligation (225) (345) Common stock, without par value: Authorized: 3,000 million shares Issued: 2,984 million shares at June 30, 1997 2,322 See Note 3 for shares at Dec. 31, 1996 2,822 Earnings reinvested 49,923 57,156 Cumulative foreign exchange translation adjustment 57 1,126 Common stock held in treasury: 510 million shares at June 30, 1997 (8,483) 1,142 million shares at Dec. 31, 1996 (17,520) ______ ______ TOTAL SHAREHOLDERS' EQUITY 43,815 43,542 ______ ______ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $94,920 $95,527 ====== ======
The number of shares of common stock issued and outstanding at June 30, 1997 and December 31, 1996 (restated to reflect two-for-one stock split effective March 14, 1997) were 2,474,366,358 and 2,483,492,968, respectively. -4- EXXON CORPORATION CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (millions of dollars)
Six Months Ended June 30, _________________ 1997 1996 _____ _____ CASH FLOWS FROM OPERATING ACTIVITIES Net income $4,140 $3,455 Depreciation and depletion 2,707 2,678 Changes in operational working capital, excluding cash and debt (244) 163 All other items - net 1,324 764 _____ _____ Net Cash Provided By Operating Activities 7,927 7,060 _____ _____ CASH FLOWS FROM INVESTING ACTIVITIES Acquisitions and additions to property, plant and equipment (3,331) (3,259) Sales of subsidiaries and property, plant and equipment 165 170 Other investing activities - net 104 35 _____ _____ Net Cash Used In Investing Activities (3,062) (3,054) _____ _____ NET CASH GENERATION BEFORE FINANCING ACTIVITIES 4,865 4,006 _____ _____ CASH FLOWS FROM FINANCING ACTIVITIES Additions to long-term debt 330 364 Reductions in long-term debt (220) (261) Additions/(reductions) in short-term debt - net (81) (14) Cash dividends to Exxon shareholders (2,007) (1,928) Cash dividends to minority interests (155) (169) Additions/(reductions) to minority interests and sales/(redemptions) of affiliate preferred stock (73) (29) Acquisitions of Exxon shares - net (914) (243) _____ _____ Net Cash Used In Financing Activities (3,120) (2,280) _____ _____ Effects Of Exchange Rate Changes On Cash 24 (12) _____ _____ Increase/(Decrease) In Cash And Cash Equivalents 1,769 1,714 Cash And Cash Equivalents At Beginning Of Period 2,951 1,508 _____ _____ CASH AND CASH EQUIVALENTS AT END OF PERIOD $4,720 $3,222 ===== ===== SUPPLEMENTAL DISCLOSURES Income taxes paid $2,052 $1,213 Cash interest paid $ 316 $ 371
-5- EXXON CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. Basis Of Financial Statement Preparation These unaudited condensed consolidated financial statements should be read in the context of the consolidated financial statements and notes thereto filed with the S.E.C. in the corporation's 1996 Annual Report on Form 10-K. In the opinion of the corporation, the information furnished herein reflects all known accruals and adjustments necessary for a fair statement of the results for the periods reported herein. All such adjustments are of a normal recurring nature. The corporation's exploration and production activities are accounted for under the "successful efforts" method. 2. Recently Issued Statements of Financial Accounting Standards In February 1997, the Financial Accounting Standards Board released Statement No. 128, "Earnings per Share" which must be adopted for both interim and annual periods ending after December 15, 1997, with earlier application not permitted. Based on preliminary estimates, basic earnings per share defined by the statement is consistent with current reporting of net income per common share. The difference between basic and diluted earnings per share is expected to be insignificant. In June 1997, the Financial Accounting Standards Board released Statement No. 130, "Reporting Comprehensive Income" and Statement No. 131, "Disclosures about Segments of an Enterprise and Related Information." Both statements become effective for fiscal years beginning after December 15, 1997 with early adoption permitted. These statements require disclosure of certain components of changes in equity and certain information about operating segments and geographic areas of operation. No decision has been made as to when the company will adopt the statements. These statements will not have any effect on the results of operations or financial position. 3. Capital On February 26, 1997, the company's Board of Directors approved a two-for-one stock split to Common Stock shareholders of record on March 14, 1997 and canceled 321,000,000 shares (pre-split basis) of Common Stock without par value held by the corporation as treasury shares. These canceled shares were returned to the status of authorized but unissued shares. The treasury stock account was credited for $9,869 million, the Common Stock account charged for $500 million and the retained earnings account charged for $9,369 million to cancel these treasury shares. On March 14, 1997, the authorized Common Stock was increased from two billion shares without par value to three billion shares without par value and the issued shares were split on a two-for-one basis. Since canceled treasury shares were returned to the status of authorized but unissued shares and used to partially accomplish the two-for-one stock split, the restated number of Common Stock shares issued (on a post-split basis) at December 31, 1996 is not meaningful. -6- EXXON CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS The number of shares of Common Stock issued and outstanding as of December 31, 1996 and 1995, restated to reflect the two-for-one stock split, were 2,483,492,968 and 2,483,543,658, respectively. Earnings per share for the years ended December 31, 1996, 1995 and 1994, restated for the effect of the two-for-one stock split, are $3.01, $2.59, and $2.04, respectively. 4. Litigation and Other Contingencies A number of lawsuits, including class actions, were brought in various courts against Exxon Corporation and certain of its subsidiaries relating to the accidental release of crude oil from the tanker Exxon Valdez in 1989. Essentially all of these lawsuits have now been resolved or are subject to appeal. On September 24, 1996, the United States District Court for the District of Alaska entered a judgment in the amount of $5.058 billion in the Exxon Valdez civil trial that began in May 1994. The District Court awarded approximately $19.6 million in compensatory damages to fisher plaintiffs, $38 million in prejudgment interest on the compensatory damages and $5 billion in punitive damages to a class composed of all persons and entities who asserted claims for punitive damages from the corporation as a result of the Exxon Valdez grounding. The District Court also ordered that these awards shall bear interest from and after entry of the judgment. The District Court stayed execution on the judgment pending appeal based on a $6.75 billion letter of credit posted by the corporation. Exxon has appealed the judgment. The corporation continues to believe that the punitive damages in this case are unwarranted and that the judgment should be set aside or substantially reduced by the appellate courts. The ultimate cost to the corporation from the lawsuits arising from the Exxon Valdez grounding is not possible to predict and may not be resolved for a number of years. German and Dutch affiliated companies are the concessionaires of a natural gas field subject to a treaty between the governments of Germany and the Netherlands under which the gas reserves in an undefined border or common area are to be shared equally. Entitlement to the reserves is determined by calculating the amount of gas which can be recovered from this area. Based on the final reserve determination, the German affiliate has received more gas than its entitlement. Arbitration proceedings, as provided in the agreements, have been underway to determine the manner of resolving the issues between the German and Dutch affiliated companies. On July 8, 1996, an interim ruling was issued establishing a provisional compensation payment for the excess gas received. Additional compensation, if any, remains subject to further arbitration proceedings or negotiation. Other substantive matters remain outstanding, including recovery of royalties paid on such excess gas and the taxes payable on the final compensation amount. The net financial impact on the corporation is not possible to predict at this time given these outstanding issues. However, the ultimate outcome is not expected to have a materially adverse effect upon the corporation's consolidated financial condition or operations. -7- EXXON CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS The U.S. Tax Court has decided the issue with respect to the pricing of crude oil purchased from Saudi Arabia for the years 1979-1981 in favor of the corporation. This decision is subject to appeal. Certain other issues for the years 1979-1982 remain pending before the Tax Court. The ultimate resolution of these issues is not expected to have a materially adverse effect upon the corporation's operations or financial condition. Claims for substantial amounts have been made against Exxon and certain of its consolidated subsidiaries in other pending lawsuits, the outcome of which is not expected to have a materially adverse effect upon the corporation's financial condition or operations. The corporation and certain of its consolidated subsidiaries are directly and indirectly contingently liable for amounts similar to those at the prior year-end relating to guarantees for notes, loans and performance under contracts, including guarantees of non-U.S. excise taxes and customs duties of other companies, entered into as a normal business practice, under reciprocal arrangements. Additionally, the corporation and its affiliates have numerous long-term sales and purchase commitments in their various business activities, all of which are expected to be fulfilled with no adverse consequences material to the corporation's operations or financial condition. The operations and earnings of the corporation and its affiliates throughout the world have been, and may in the future be, affected from time to time in varying degree by political developments and laws and regulations, such as forced divestiture of assets; restrictions on production, imports and exports; price controls; tax increases and retroactive tax claims; expropriation of property; cancellation of contract rights and environmental regulations. Both the likelihood of such occurrences and their overall effect upon the corporation vary greatly from country to country and are not predictable. -8- EXXON CORPORATION ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FUNCTIONAL EARNINGS SUMMARY Second Quarter First Six Months _________________ ________________ 1997 1996 1997 1996 ______ ______ ______ ______ (millions of dollars) Petroleum and natural gas Exploration and production United States $ 335 $ 423 $ 889 $ 842 Non-U.S. 620 615 1,510 1,619 Refining and marketing United States 162 98 219 82 Non-U.S. 382 134 679 324 _____ _____ _____ _____ Total petroleum and natural gas 1,499 1,270 3,297 2,867 Chemicals United States 246 166 438 319 Non-U.S. 147 138 265 272 Other operations 127 100 255 217 Corporate and financing (54) (104) (115) (220) _____ _____ _____ _____ NET INCOME $1,965 $1,570 $4,140 $3,455 ===== ===== ===== =====
SECOND QUARTER 1997 COMPARED WITH SECOND QUARTER 1996 Exxon Corporation estimated second quarter 1997 net income of $1,965 million, an increase of $395 million or 25 percent from $1,570 million in second quarter 1996. On a per share basis, net income rose to $0.79 in the second quarter of 1997 compared to $0.63 in the prior year's quarter. Exxon's net income of $1.97 billion was up $395 million or 25 percent over last year's second quarter and represented the highest second quarter earnings in Exxon's history. Earnings benefited from generally stronger downstream margins and higher petroleum product sales. Chemicals volumes and margins also improved over the prior year's quarter. Crude oil prices were volatile during the quarter and on average were lower than the prior year. Liquids production and natural gas sales were similar to second quarter 1996 levels. Petroleum product sales for the second quarter were at the highest level achieved in over 20 years, with increases in all major geographic areas. Downstream margins improved overall with U.S. and European industry refining margins recovering modestly from last year's depressed levels. Chemicals earnings were up 29 percent over last year. Sales volumes continued strong, establishing a quarterly record. Commodity chemical product prices and margins were also higher. Earnings from other operations increased from second quarter 1996 on higher copper realizations and record coal production. -9- EXXON CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OTHER COMMENTS ON SECOND QUARTER COMPARISON Exploration and production earnings were negatively impacted by lower crude prices which averaged about $1.50 per barrel less than the prior year. European gas prices improved, while U.S. gas prices were lower on average than last year, although strengthening over the course of the quarter. Liquids production was 1,588 kbd (thousand barrels per day) compared to 1,595 kbd in the second quarter of 1996. Production increased from developments in Canadian heavy oil operations, the North Sea and Australia. These gains were offset by planned maintenance, a revised production sharing agreement in Malaysia, and field decline. Gas production was 5,640 mcfd (million cubic feet per day) compared to 5,674 mcfd in the prior year. Earnings from U.S. exploration and production were $335 million, compared with $423 million in the second quarter last year. Outside the U.S., earnings from exploration and production were $620 million, as compared to $615 million in the second quarter 1996. Petroleum product sales of 5,348 kbd rose 6 percent from last year's second quarter. Sales volumes increased in all major geographic areas. Refinery throughput increased 121 kbd to 3,875 kbd reflecting lower scheduled maintenance. Downstream industry margins improved somewhat from the depressed levels of second quarter 1996. Refining margins strengthened in the U.S. gulf coast and Europe but were weaker in Asia-Pacific. The industry environment improved in the U.K., although marketing margins remained weak. In the U.S., second quarter refining and marketing earnings were $162 million, up $64 million from the prior year. Earnings from refining and marketing operations outside the U.S. were $382 million, an increase of $248 million from last year. Chemical earnings were $393 million, up $89 million from second quarter 1996. Record prime product sales of 4,277 kt (thousand metric tons) were up 8 percent from the prior year. Margins improved on the strengthening of commodity chemicals prices and lower feedstock costs. Earnings from other operations, including coal, minerals and power, totaled $127 million, an increase from $100 million in the second quarter 1996. Copper realizations were higher, and coal production from continuing operations was at a record level. Corporate and financing expenses of $54 million compared with $104 million in the second quarter of last year, reflecting lower tax-related charges. Revenue for the second quarter of 1997 totaled $32,847 million, an increase from $32,211 million in the second quarter 1996. Capital and exploration expenditures were $2,215 million in the second quarter of 1997 compared with $2,301 million in last year's second quarter. During the second quarter of 1997, Exxon purchased 14.9 million shares of its common stock for the treasury at a cost of $863 million, reducing shares outstanding from 2,483.0 million at the end of first quarter 1997 to 2,474.4 million at the end of the second quarter. Purchases are made in open market and negotiated transactions and may be discontinued at any time. -10- EXXON CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FIRST SIX MONTHS 1997 COMPARED WITH FIRST SIX MONTHS 1996 Net income was $4,140 million in the first half 1997, an increase of 20 percent from the $3,455 million earned in 1996. Net income for first half 1996 included $125 million in non-recurring credits. Excluding these credits, the increase was $810 million or 24 percent. On a per share basis, net income was $1.66 in the first half of 1997 compared to $1.39 last year. Exploration and production earnings benefited from higher crude oil and natural gas prices. Liquids production was 1,608 kbd compared to 1,639 kbd last year. Increased production from Canada and new developments was offset by a revised production sharing agreement in Malaysia, field decline and the sale of several producing properties. Natural gas production of 6,587 mcfd was down 415 mcfd from the first half of 1996 reflecting warmer weather in Europe. Earnings from U.S. exploration and production operations for the first six months were $889 million, an increase of $47 million from 1996. Outside the U.S., earnings from exploration and production operations were $1,510 million, up $16 million, after excluding non-recurring credits of $125 million in the first quarter of 1996. Petroleum product sales of 5,318 kbd increased 210 kbd over last year, with volume growth in all major geographic areas. Earnings from U.S. refining and marketing operations were $219 million, up from $82 million in 1996, as industry refining margins improved from last year's low levels. Outside the U.S., first half 1997 refining and marketing earnings increased $355 million to $679 million, reflecting higher refining margins in Europe and an improved but still weak industry environment in the U.K. Chemical earnings totaled $703 million in the first half of 1997, up $112 million from last year. Prime product sales grew 6 percent over 1996 to 8,361 kt. Industry commodity prices and margins improved from last year's levels. Earnings from other operations totaled $255 million, an increase of $38 million from the first half of 1996, reflecting increased coal production and higher copper realizations. Corporate and financing expenses declined $105 million to $115 million, reflecting lower tax-related charges. -11- EXXON CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FIRST SIX MONTHS 1997 COMPARED WITH FIRST SIX MONTHS 1996 Net cash generation before financing activities was $4,865 million in the first half of 1997 versus $4,006 million in the same period last year. Operating activities provided net cash of $7,927 million, an increase of $867 million from 1996's first half, influenced by higher net income and an insurance related settlement. Investing activities used net cash of $3,062 million, about the same level as the prior year period. Net cash used in financing activities was $3,120 million in the first half of 1997 versus $2,280 million for the year-ago period. The increase of $840 million reflects the purchase of additional shares of Exxon common stock. During the first half of 1997, a total of 20.2 million shares of Exxon common stock were acquired for the treasury at a cost of $1,142 million. Purchases are made in both the open market and through negotiated transactions. Purchases may be discontinued at any time. Capital and exploration expenditures in this year's first half were $4,005 million versus $4,292 million a year ago. Total capital and exploration activity in 1997 should be at similar levels to 1996, as attractive investment opportunities continue to be developed in each of the major business segments. Total debt of $9.7 billion at June 30, 1997 was essentially unchanged from year-end 1996. The corporation's debt to capital ratio was 17.5 percent at the end of the first six months of 1997, down from 17.7 percent at year-end 1996. Over the twelve months ended June 30, 1997, return on average shareholders' equity was 19.2 percent. Return on average capital employed, which includes debt, was 15.8 percent over the same time period. Although the corporation issues long-term debt from time to time and maintains a revolving commercial paper program, internally generated funds cover the majority of its financial requirements. Litigation and other contingencies are discussed in note 4 to the unaudited condensed consolidated financial statements. There are no events or uncertainties known to management beyond those already included in reported financial information that would indicate a material change in future operating results or future financial condition. The corporation, as part of its ongoing asset management program, continues to evaluate its mix of assets for potential upgrade. Because of the ongoing nature of this program, dispositions will continue to be made from time to time which will result in either gains or losses. -12- EXXON CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS SPECIAL ITEMS _____________ Second Quarter First Six Months __________________ ________________ 1997 1996 1997 1996 ______ ______ ______ ______ (millions of dollars) EXPLORATION & PRODUCTION ________________________ Non-U. S. Tax related - - - $125 ______ ______ ______ ______ TOTAL - - - $125 ====== ====== ====== ====== -13- PART II. OTHER INFORMATION EXXON CORPORATION FOR THE QUARTER ENDED JUNE 30, 1997 Item 2. Changes in Securities ______ _____________________ In accordance with the registrant's 1997 Nonemployee Director Restricted Stock Plan, a newly elected nonemployee director was granted 4,000 shares of restricted Common Stock on June 24, 1997. This grant is exempt from registration under bonus stock interpretations such as the "no-action" letter to Pacific Telesis Group (June 30, 1992). _____________________ Item 4. Submission of Matters to a Vote of Security Holders ______ ___________________________________________________ At the annual meeting of shareholders on April 30, 1997, the following proposals were voted upon: Concerning Election of Directors Votes Votes Nominees for Director Cast for Withheld _____________________ _____________ _________ Michael J. Boskin 1,052,332,293 7,972,120 D. Wayne Calloway 1,052,140,178 8,164,235 Jess Hay 1,051,938,768 8,365,645 James R. Houghton 1,052,179,148 8,125,265 William R. Howell 1,051,918,940 8,385,473 Philip E. Lippincott 1,052,093,961 8,210,452 Harry J. Longwell 1,052,458,749 7,845,664 Marilyn Carlson Nelson 1,052,519,403 7,785,010 Lee R. Raymond 1,051,951,660 8,352,753 Robert E. Wilhelm 1,052,619,241 7,685,172 Concerning Amendment of 1993 Incentive Program Votes Cast For: 1,010,576,435 Votes Cast Against: 33,448,471 Abstentions: 14,810,927 Broker Non-Votes: 1,468,580 Concerning Performance-Based Incentive Awards Votes Cast For: 1,013,386,268 Votes Cast Against: 31,048,747 Abstentions: 14,400,818 Broker Non-Votes: 1,468,580 -14- PART II. OTHER INFORMATION EXXON CORPORATION FOR THE QUARTER ENDED JUNE 30, 1997 Concerning Ratification of the Appointment of Independent Public Accountants Votes Cast For: 1,050,572,448 Votes Cast Against: 3,548,056 Abstentions: 4,718,334 Broker Non-Votes: 1,465,575 Concerning Additional Reporting of Political Contributions Votes Cast For: 63,434,778 Votes Cast Against: 827,530,808 Abstentions: 25,038,625 Broker Non-Votes: 144,300,202 Concerning Additional Executive Compensation Reporting Votes Cast For: 83,938,122 Votes Cast Against: 793,750,959 Abstentions: 38,315,130 Broker Non-Votes: 144,300,202 See also pages 4 through 8 and pages 17 through 22 of the registrant's definitive proxy statement dated March 19, 1997. These voting results are presented on a pre-split basis for votes from shareholders of record at the close of business on March 3, 1997. Item 6. Exhibits and Reports on Form 8-K ______ ________________________________ a) Exhibits Exhibit 10(iii)(a) - Registrant's 1993 Incentive Program, as amended May 28, 1997. Exhibit 10(iii)(e) - Registrant's Short Term Incentive Program, as amended May 28, 1997. Exhibit 27 - Financial Data Schedule (included only in the electronic filing of this document). b) Reports on Form 8-K The registrant has not filed any reports on Form 8-K during the quarter. -15- EXXON CORPORATION FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 1997 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. EXXON CORPORATION Date: August 12, 1997 /s/ Donald D.Humphreys _______________________________________________ Donald D. Humphreys, Vice President, Controller and Principal Accounting Officer -16- EXXON CORPORATION FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 1997 INDEX TO EXHIBITS 10(iii)(a). Registrant's 1993 Incentive Program, as amended May 28, 1997. 10(iii)(e). Registrant's Short Term Incentive Program, as amended May 28, 1997. -17-
 

5 THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM EXXON'S CONDENSED CONSOLIDATED BALANCE SHEET AT JUNE 30, 1997 AND EXXON'S CONDENSED CONSOLIDATED STATEMENT OF INCOME FOR THE SECOND QUARTER 1997, THAT ARE CONTAINED IN EXXON'S FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1997. THE SCHEDULE IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000,000 6-MOS DEC-31-1997 JUN-30-1997 4,720 22 7,134 92 5,136 20,794 125,695 60,175 94,920 18,732 7,041 0 221 2,322 41,272 94,920 65,419 66,437 28,217 28,217 9,456 0 176 6,678 2,538 4,140 0 0 0 4,140 1.660 0 Prior period primary earnings per share amounts have been restated for the two-for-one stock split effective March 14, 1997.
                                                        Exhibit 10(iii)(a)

                                 EXXON CORPORATION

                             1993 INCENTIVE PROGRAM

                    Adopted by shareholders April 28, 1993 
                        (as last amended  May 28, 1997)

                                 General Provisions

I. Purpose. 

     The 1993 Incentive Program is intended to help maintain and develop strong 
management through ownership of shares of the Corporation by key employees of 
the Corporation and certain of its affiliates and through incentive awards for 
recognition of efforts and accomplishments which contribute materially to the 
success of the Corporation's business interests.

II. Definitions. 

     In this Program, except where the context otherwise indicates, the 
following definitions apply:

     (1) 'Administrative authority' means one of the following, as 
appropriate in accordance with Section III: the Board; any committee to 
which the Board delegates authority to administer this Program;  or, in 
individual cases, the Chairman of the Board or persons acting under his 
direction.

     (2) 'Affiliate' means (a) any subsidiary and (b) any other 
corporation, partnership, joint venture, or other entity in which the 
corporation, directly or indirectly, owns an equity interest and which 
the administrative authority deems to be an affiliate for purposes of 
this Program (including, without limitation, for purposes of determining 
whether a change of employment constitutes a termination).

     (3) 'Award' means a stock option, stock appreciation right ('SAR'), 
restricted stock, performance award, incentive share, dividend equivalent 
right ('DER'), or other award under this Program.

     (4) 'Board' means the Board of Directors of the Corporation.

     (5) 'Board Compensation Committee,' hereinafter sometimes called the 
'BCC,' means the committee of the Board so designated in accordance with 
Section IV.

     (6) 'By the grant' means by the action of the granting authority at 
the time of the grant of an award hereunder, or at the time of an 
amendment of the grant, as the case may be.










     (7) 'Code' means the Internal Revenue Code, as in effect from time 
to time.

     (8) 'Corporation' means Exxon Corporation, a New Jersey corporation.

     (9) 'Designated beneficiary' means the person designated by the 
grantee of an award hereunder to be entitled, on the death of the 
grantee, to any remaining rights arising out of such award. Such 
designation must be made in writing and in accordance with such 
regulations as the administrative authority may establish.

     (10) 'Detrimental activity' means activity that is determined in 
individual cases by the administrative authority to be detrimental to the 
interests of the Corporation or any affiliate.

     (11) 'Dividend equivalent right,' herein sometimes called a 'DER,' 
means the right of the holder thereof to receive, pursuant to the terms 
of the DER, credits based on the cash dividends that would be paid on the 
shares specified in the DER if such shares were held by the grantee, as 
more particularly set forth in Section XIV(1).

     (12) 'Effectively granted' means, for purposes of determining the 
number of shares subject to an outstanding award under this Program, the 
number of shares subject to such award or the number of shares with 
respect to which the value of such award is measured, as applicable.  An 
option that includes an SAR shall be considered a single award for this 
purpose.

     (13) 'Effectively issued' means the gross number of shares 
purchased, issued, delivered, or paid free of restrictions upon the 
exercise, settlement, or payment of an award, or lapse of restrictions 
thereon, as the case may be.

     (14) 'Eligible employee' means an employee of the Corporation or a 
subsidiary who is a director or officer, or in a managerial, 
professional, or other key position as determined by the granting 
authority.

     (15) 'Employee' means an employee of the Corporation or an 
affiliate.

     (16) 'Exchange Act' means the Securities Exchange Act of 1934, as 
amended from time to time.

     (17) 'Fair market value' in relation to a share as of any specific 
time shall mean such value as reported for stock exchange transactions 
determined in accordance with any applicable regulations of the 
administrative authority in effect at the relevant time.

     (18) 'Grantee' means a recipient of an award under this Program.








                                  -2-

     (19) 'Granting authority' means the Board or any appropriate 
committee authorized to grant and amend awards under this Program in 
accordance with Section V and to exercise other powers of the granting 
authority hereunder.

     (20) 'Incentive shares' means an award of shares granted pursuant to 
Section XIII.

     (21) 'Incentive Stock Option,' herein sometimes called an 'ISO,' 
means a stock option meeting the requirements of Section 422 of the Code 
or any successor provision.

     (22) 'Performance award' means an award of shares, or of units or 
rights based on, payable in, or otherwise related to shares, granted 
pursuant to Section XII.

     (23) 'Performance period' means any period specified by the grant of 
a performance award during which specified performance criteria are to be 
measured.

     (24) 'Reporting person' means a person subject to the reporting 
requirements of Section 16(a) of the Exchange Act with respect to equity 
securities of the Corporation.

     (25) 'Restricted stock' means any share issued with the restriction 
that the holder may not sell, transfer, pledge, or assign such share and 
such other restrictions (which may include, but are not limited to, 
restrictions on the right to vote or receive dividends) which may expire 
separately or in combination, at one time or in installments, all as 
specified by the grant.

     (26) 'Rule 16b-3' means Rule 16b-3 (or any successor thereto) under 
the Exchange Act that exempts transactions under employee benefit plans, 
as in effect from time to time.

     (27) 'Share' means a share of Common Stock of the Corporation issued 
and reacquired by the Corporation or previously authorized but unissued.

     (28) 'Shareholder-approved plan' means any of the plans constituting 
parts of any of the Incentive Programs previously approved by 
shareholders of the Corporation.

     (29) 'Stock appreciation right,' herein sometimes called an 'SAR,' 
means the right of the holder thereof to receive, pursuant to the terms 
of the SAR, a number of shares or cash or a combination of shares and 
cash, based on the increase in the value of the number of shares 
specified in the SAR, as more particularly set forth in Section X.

     (30) 'Subsidiary' means a corporation, partnership, joint venture, 
or other entity in which the Corporation, directly or indirectly, owns a 
50% or greater equity interest.







                                  -3-

     (31) 'Terminate' means cease to be an employee, except by death, but 
a change of employment from the Corporation or one affiliate to another 
affiliate or to the Corporation shall not be considered a termination. 
For purposes of this Program, the administrative authority may determine 
that the time or date of termination is the day an employee resigns, 
accepts employment with another employer or otherwise indicates an intent 
to resign, which time or date need not necessarily be the last day on the 
payroll.

     (32) 'Terminate normally' for purposes of this Program means 
terminate

     (a) at normal retirement time for that employee, or

     (b) with written approval of the administrative authority 
given in the context of recognition that all or a specified portion 
of the outstanding awards to that employee will not expire or be 
forfeited or annulled because of such termination

and, in each such case, without being terminated for cause.

     (33) 'Year' means calendar year.

III. Administration.

     (1) The Board is the ultimate administrative authority for this Program, 
with the power to conclusively interpret its provisions and decide all 
questions of fact arising in its application.  The Board may delegate its 
authority pursuant to any provision of this Program to a committee which, 
except in the case of the BCC, need not be a committee of the Board.  Subject 
to the authority of the Board or an authorized committee and excluding cases 
involving the Chairman as grantee, the Chairman of the Board and persons acting 
under his direction may serve as the administrative authority under this 
Program for purposes of making determinations and interpretations in individual 
cases. 

     (2) The Board and any committee acting as the administrative authority 
under this Program can act by regulation, by making individual determinations, 
or by both. The Chairman of the Board and persons designated by him can act as 
the administrative authority under this Program only by making individual 
determinations.

     (3) All determinations and interpretations pursuant to the provisions of 
this Program shall be binding and conclusive upon the individuals involved and 
all persons claiming under them.

     (4) With respect to reporting persons, transactions under this Program are 
intended to comply with all applicable conditions of Rule 16b-3. To the extent 
any provision of this Program or any action by an authority under this Program 
fails to so comply, such provision or action shall, without further action by 
any person, be deemed to be automatically amended to the extent necessary to 
effect compliance with Rule 16b-3, provided that if such provision or action 
cannot be amended to effect such compliance, such provision or action shall be 
deemed null and void, to the extent 




                                  -4-

permitted by law and deemed advisable by the appropriate authority. Each award 
to a reporting person under this Program shall be deemed issued subject to the 
foregoing qualification.

     (5) An award under this Program is not transferable except, as provided in 
the award, by will or the laws of descent and distribution, and is not subject 
to attachment, execution, or levy of any kind. The designation by a grantee of 
a designated beneficiary shall not constitute a transfer.

     (6) Any rights with respect to an award granted under this Program 
existing after the grantee dies are exercisable by the grantee's designated 
beneficiary or, if there is no designated beneficiary, by the grantee's 
personal representative.

     (7) Except as otherwise provided herein, a particular form of award may be 
granted to an eligible employee either alone or in addition to other awards 
hereunder. The provisions of particular forms of award need not be the same 
with respect to each recipient.

     (8) If the administrative authority believes that a grantee (a) may have 
engaged in detrimental activity or (b) may have accepted employment with 
another employer or otherwise indicated an intent to resign, the authority may 
suspend the exercise, vesting or settlement of all or any specified portion of 
such grantee's outstanding awards pending an investigation of the matter.

     (9) This Program and all action taken under it shall be governed by the 
laws of the State of New York.

     (10) Any award which was granted under a shareholder-approved plan and is 
still outstanding shall be interpreted and administered in accordance with the 
definitions and administrative provisions of this Program, including, without 
limitation, Sections II through V hereof.

IV. Board Compensation Committee (BCC).

     The Board shall appoint a BCC. The BCC shall consist of two or more 
members of the Board, each of whom is a 'nonemployee director' within the 
meaning of Rule 16b-3. No award may be granted to a member of the BCC.

V. Right to Grant Awards; Reserved Powers.

     The Board is the ultimate granting authority for this Program, with the 
power to select eligible employees for participation in this Program and to 
make all decisions concerning the grant or amendment of awards.  The Board may 
delegate such authority in whole or in part (1) in the case of reporting 
persons, to the BCC and (2) in the case of eligible employees who are not 
reporting persons, to any committee.

VI. Term.

     The term of this Program begins on the date shareholder approval of this 
Program is obtained and ends on the tenth anniversary of that date.






                                  -5-

VII. Awards Grantable.

     (1) Subject to the provisions of this Program, an award is grantable if, 
should it be granted, the total number of shares effectively granted during the 
year of the grant would not exceed seven tenths of one percent (0.7%) of the 
total number of shares of Common Stock of the Corporation outstanding 
(excluding shares held by the Corporation) on December 31 of the preceding 
year.

     (2) If the total number of shares effectively issued with respect to an 
award is less than, or exceeds, the number of shares deemed effectively granted 
with respect to such award, the balance of such shares shall be, respectively, 
added to, or subtracted from, the maximum number of shares that may be 
effectively granted as awards thereafter.

     (3) If the total number of shares effectively granted as awards in any 
year is less than the maximum number of shares that could have been so granted 
pursuant to the provisions of this Program, the balance of such unused shares 
shall be added to the maximum number of shares that may be effectively granted 
as awards in the following year.

     (4) In addition to the foregoing, shares surrendered to the Corporation in 
payment of the exercise price or applicable taxes upon exercise or settlement 
of an award may also be used thereafter for additional awards.

     (5) Notwithstanding the foregoing provisions of this Section VII, the 
total number of shares that may be effectively granted under stock options or 
stock appreciation rights to any one grantee in any one calendar year may not 
exceed two tenths of one percent (0.2%) of the total number of shares of Common 
Stock of the Corporation outstanding (excluding shares held by the Corporation) 
on December 31, 1996; provided, that such number of shares is doubled in 
accordance with Section VIII to reflect a two-for-one split of the shares on 
March 14, 1997.

VIII. Adjustments. 

     Whenever a stock split, stock dividend, or other relevant change in 
capitalization which the administrative authority determines to be dilutive to 
outstanding awards occurs,

     (1) the number of shares that can thereafter be obtained under 
outstanding awards and the purchase price per share, if any, under such 
awards, and

     (2) every number of shares used in determining whether a particular 
award is grantable thereafter,

shall be appropriately adjusted.










                                  -6-

IX. Stock Options. 

     One or more grantable stock options can be granted to any eligible 
employee. Each stock option so granted shall be subject to such terms and 
conditions as the granting authority shall impose, which shall include the 
following:

     (1) The exercise price per share shall be specified by the grant, 
but shall in no instance be less than 100 percent of fair market value at 
the time of grant. Payment of the exercise price shall be made in cash, 
shares, or other consideration in accordance with the terms of this 
Program and any applicable regulations of the administrative authority in 
effect at the time and valued at fair market value on the date of 
exercise of the stock option.

     (2) If the grantee has not terminated, the stock option shall become 
exercisable at the time or times specified by the grant. If the grantee 
has terminated before a stock option or portion thereof becomes 
exercisable, that stock option or portion thereof shall be forfeited and 
shall never become exercisable. Except as otherwise specified by the 
grant, a stock option shall become immediately exercisable in full upon 
the death of the grantee.

     (3) Any stock option or portion thereof that is exercisable is 
exercisable for the full amount or for any part thereof, except as 
otherwise provided by the grant.

     (4) Each stock option ceases to be exercisable, as to any share, 
when the stock option is exercised to purchase that share, or when a 
related SAR is exercised either by the holder or automatically in 
accordance with its terms, or when the stock option expires. To the 
extent an SAR included in a stock option is exercised, such stock option 
shall be deemed to have been exercised and shall not be deemed to have 
expired.

     (5) A stock option or portion thereof that is exercisable shall 
expire in the following situations:

     (a) unless clauses (b), (c) or (d) below apply, it shall 
expire at the earlier of:

          (i) ten years after it is granted, or 

          (ii) any earlier time specified by the grant;

     (b) if the grantee terminates, but does not terminate 
normally, it shall expire at the time of termination;

     (c) if the grantee is determined to have engaged in 
detrimental activity, it shall expire as of the date of such 
determination; or

     (d) if the grantee dies, it shall expire at the earlier 
of:




                                  -7-

          (i) five years after the grantee's death, or

          (ii) any earlier time specified by the grant;

but, in any case, no later than ten years after it is granted.

     (6) If a grantee terminates other than normally, (a) the 
administrative authority may refuse to deliver shares in settlement of 
any pending stock option exercise and (b) the granting authority may 
require the grantee to repay to the Corporation an amount equal to the 
spread on any stock option exercised by the grantee during the six-month 
period immediately preceding such termination. For purposes of the 
foregoing subsection (6)(b), 'spread' means the difference between the 
aggregate stock option exercise price and the fair market value of the 
underlying shares on the date such option is exercised.

     (7) All stock options granted hereunder are hereby designated as 
ISOs except to the extent otherwise specified by the grant and except to 
the extent otherwise specified in this Section IX(7). To the extent that 
the aggregate fair market value of shares with respect to which stock 
options designated as ISOs are exercisable for the first time by any 
grantee during any year (under all plans of the Corporation and any 
affiliate thereof) exceeds $100,000, such stock options shall be treated 
as not being ISOs. The foregoing shall be applied by taking stock options 
into account in the order in which they were granted. For the purposes of 
the foregoing, the fair market value of any share shall be determined as 
of the time the stock option with respect to such share is granted. In 
the event the foregoing results in a portion of a stock option 
designated as an ISO exceeding the above $100,000 limitation, only such 
excess shall be treated as not being an ISO.

     For each year in which this Program is in effect, the number of 
shares that may be effectively granted as ISOs may not exceed seven 
tenths of one percent (0.7%) of the total number of shares of Common 
Stock of the Corporation outstanding (excluding shares held by the 
Corporation) on the December 31 preceding the date on which shareholder 
approval of this Program is obtained; provided, that beginning with the 
year 1998, the annual number of shares determined as aforesaid shall be 
doubled in accordance with Section VIII to reflect a two-for one split of 
the shares on March 14, 1997.  If the number of shares effectively 
granted as ISOs in any year is less than the number of shares that could 
have been so granted pursuant to this paragraph, the balance of such 
unused shares may be added to the maximum number of shares that may be 
effectively granted as ISOs the following year.

     A stock option designated as an ISO, or portion thereof, that fails 
or ceases to qualify as such under the Code shall otherwise remain valid 
according to its terms as a non-ISO under this Program.

X. Stock Appreciation Rights.

     (1) An SAR may be granted to an eligible employee as a separate award 
hereunder. Any such SAR shall be subject to such terms and conditions as the 
granting authority shall impose, which shall 




                                  -8-

include provisions that (a) such SAR shall entitle the holder thereof, upon 
exercise thereof in accordance with such SAR and the regulations of the 
administrative authority, to receive from the Corporation that number of shares 
having an aggregate value equal to the excess of the fair market value, at the 
time of exercise of such SAR, of one share over the exercise price per share 
specified by the grant of such SAR (which shall in no instance be less than 100 
percent of fair market value at the time of grant) times the number of shares 
specified in such SAR, or portion thereof, which is so exercised; and (b) such 
SAR shall be exercisable, or be forfeited or expire, upon the same conditions 
set forth for freestanding options in Section IX, paragraphs (2), (3), (4), 
(5), and (6).

     (2) Any stock option granted under this Program may include an SAR, either 
at the time of grant or by amendment. An SAR included in a stock option shall 
be subject to such terms and conditions as the granting authority shall impose, 
which shall include provisions that (a) such SAR shall be exercisable to the 
extent, and only to the extent, the stock option is exercisable; and (b) such 
SAR shall entitle the optionee to surrender to the Corporation unexercised the 
stock option in which the SAR is included, or any portion thereof, and to 
receive from the Corporation in exchange therefor that number of shares having 
an aggregate value equal to the excess of the fair market value, at the time of 
exercise of such SAR, of one share over the exercise price specified in such 
stock option times the number of shares specified in such stock option, or 
portion thereof, which is so surrendered.

     (3) In lieu of the right to receive all or any specified portion of such 
shares, an SAR may entitle the holder thereof to receive the cash equivalent 
thereof as specified by the grant.

     (4) An SAR may provide that such SAR shall be deemed to have been 
exercised at the close of business on the business day preceding the expiration 
of such SAR or the related stock option, if any, if at such time such SAR has 
positive value and would have expired in accordance with the conditions set 
forth in Section IX(5)(a).

Xl. Restricted Stock.

     (1) An award of restricted stock may be granted hereunder to an eligible 
employee, for no cash consideration, for such minimum consideration as may be 
required by applicable law, or for such other consideration as may be specified 
by the grant. The terms and conditions of restricted stock shall be specified 
by the grant.

     (2) Any restricted stock issued hereunder may be evidenced in such manner 
as the administrative authority in its sole discretion shall deem appropriate, 
including, without limitation, book-entry registration or issuance of a stock 
certificate or certificates. In the event any stock certificate is issued in 
respect of shares of restricted stock awarded hereunder, such certificate shall 
bear an appropriate legend with respect to the restrictions applicable to such 
award.

     (3) Except as otherwise specified by the grant, if a holder of record of 
restricted stock terminates, but does not terminate normally, all shares of 
restricted stock (whether or not stock certificates have been issued) then held 
by such holder and then subject to restriction shall be forfeited by such 
holder and reacquired by the Corporation. Except as otherwise specified by the 


                                  -9-

grant, if a holder of record of restricted stock terminates normally or dies, 
any and all remaining restrictions with respect to such restricted stock shall 
expire. Notwithstanding the foregoing, if a holder of record of restricted 
stock is determined to have engaged in detrimental activity, all shares of 
restricted stock (whether or not stock certificates have been issued) then held 
by such holder and then subject to restriction shall be forfeited by such 
holder as of the date of such determination and shall be reacquired by the 
Corporation.

XII. Performance Awards.

     (1) Performance awards may be granted hereunder to an eligible employee, 
for no cash consideration, for such minimum consideration as may be required by 
applicable law, or for such other consideration as may be specified by the 
grant. The terms and conditions of performance awards, which may include 
provisions establishing performance periods, performance criteria to be 
achieved during a performance period, and maximum or minimum settlement values, 
shall be specified by the grant.

     (2) Performance awards may be valued by reference to the value of Common 
Stock of the Corporation or according to any other formula or method. 
Performance awards may be paid in cash, shares, or other consideration, or any 
combination thereof. The extent to which any applicable performance criteria 
have been achieved shall be conclusively determined by the administrative 
authority. Performance awards may be payable in a single payment or in 
installments and may be payable at a specified date or dates or upon attaining 
performance criteria.

     (3) Except as otherwise specified by the grant, if the grantee terminates, 
but does not terminate normally, any performance award or installment thereof 
not payable prior to the grantee's termination shall be annulled as of the date 
of termination. If the grantee is determined to have engaged in detrimental 
activity, any performance award or installment thereof not payable prior to the 
date of such determination shall be annulled as of such date.

XIII. Incentive Shares.

     (1) An incentive award may be granted hereunder in the form of shares.  
Incentive shares may be granted to an eligible employee for no cash 
consideration, for such minimum consideration as may be required by applicable 
law, or for such other consideration as may be specified by the grant. The 
terms and conditions of incentive shares shall be specified by the grant.

     (2) Incentive shares may be paid to the grantee in a single installment or 
in installments and may be paid at the time of grant or deferred to a later 
date or dates. Each grant shall specify the time and method of payment as 
determined by the granting authority, provided that no such determination shall 
authorize delivery of shares to be made later than the tenth anniversary of the 
grantee's date of termination. The granting authority, by amendment of the 
grant prior to delivery, can modify the method of payment for any incentive 
shares, provided that the delivery of any incentive shares shall be completed 
not later than the tenth anniversary of the grantee's date of termination.






                                 -10-

     (3) If any incentive shares are payable after the grantee dies, such 
shares shall be payable (a) to the grantee's designated beneficiary or, if 
there is no designated beneficiary, to the grantee's personal representative, 
and (b) either in the form specified by the grant or otherwise, as may be 
determined by the administrative authority.

     (4) Any grant of incentive shares is provisional, as to any share, until 
delivery of the certificate representing such share. If, while the grant is 
provisional,

     (a) the grantee terminates, but does not terminate normally, or

     (b) the grantee is determined to have engaged in detrimental 
activity, 

the grant shall be annulled as of the date of termination, or the date of such 
determination, as the case may be.

XIV. Dividend Equivalent Rights; Interest Equivalents.

     (1) A DER may be granted hereunder to an eligible employee, as a component 
of another award or as a separate award. The terms and conditions of DERs shall 
be specified by the grant. Dividend equivalents credited to the holder of a DER 
may be paid currently or may be deemed to be reinvested in additional shares 
(which may thereafter accrue additional dividend equivalents). Any such 
reinvestment shall be at fair market value at the time thereof. DERs may be 
settled in cash or shares or a combination thereof, in a single installment or 
installments. A DER granted as a component of another award may provide that 
such DER shall be settled upon exercise, settlement, or payment of, or lapse of 
restrictions on, such other award, and that such DER shall expire or be 
forfeited or annulled under the same conditions as such other award. A DER 
granted as a component of another award may also contain terms and conditions 
different from such other award.

     (2) Any award under this Program that is settled in whole or in part in 
cash on a deferred basis may provide by the grant for interest equivalents to 
be credited with respect to such cash payment. Interest equivalents may be 
compounded and shall be paid upon such terms and conditions as may be specified 
by the grant.

XV. Other Awards. 

     Other forms of award based on, payable in or otherwise related in whole or 
in part to shares may be granted to an eligible employee under this Program if 
the granting authority determines that such awards are consistent with the 
purposes and restrictions of this Program. The terms and conditions of such 
awards shall be specified by the grant. Such awards shall be granted for no 
cash consideration, for such minimum consideration as may be required by 
applicable law, or for such other consideration as may be specified by the 
grant.








                                  -11-

XVI. Amendments to This Program. 

     The Board can from time to time amend or terminate this Program, or any 
provision hereof, except that approval of the shareholders of the Corporation 
shall be required for any amendment (1) to increase the maximum number of 
shares that may be effectively granted as awards hereunder; (2) to decrease the 
minimum exercise price per share of a stock option or SAR; or (3) for which 
such approval is otherwise necessary to comply with any applicable law, 
regulation, or listing requirement, or to qualify for an exemption or 
characterization that is deemed desirable by the Board.

XVII.  Amendments to Awards. 

     Any award which was granted under a shareholder-approved plan and is still 
outstanding may, subject to any requirements of applicable law or regulation, 
be amended by action of the granting authority so as to incorporate in that 
award any terms that might have been incorporated in an award under this 
Program.

XVIII. Withholding Taxes. 

     The Corporation shall have the right to deduct from any cash payment made 
under this Program any federal, state or local income or other taxes required 
by law to be withheld with respect to such payment. It shall be a condition to 
the obligation of the Corporation to deliver shares or securities of the 
Corporation upon exercise of a stock option or SAR, upon settlement of a 
performance award or DER, upon delivery of restricted stock or incentive 
shares, or upon exercise, settlement, or payment of any other award under this 
Program, that the grantee of such award pay to the Corporation such amount as 
may be requested by the Corporation for the purpose of satisfying any liability 
for such withholding taxes. Any award under this Program may provide by the 
grant that the grantee of such award may elect, in accordance with any 
applicable regulations of the administrative authority, to pay a portion or 
all of the amount of such minimum required or additional permitted withholding 
taxes in shares. The grantee shall authorize the Corporation to withhold, or 
shall agree to surrender back to the Corporation, on or about the date such 
withholding tax liability is determinable, shares previously owned by such 
grantee or a portion of the shares that were or otherwise would be distributed 
to such grantee pursuant to such award having a fair market value equal to the 
amount of such required or permitted withholding taxes to be paid in shares.

XIX. Grant of Awards to Employees Who are Foreign Nationals.

     Without amending this Program, but subject to the limitations specified in 
Sections III(4) and XVI, the granting authority can grant or amend, and the 
administrative authority can administer, annul, or terminate, awards to 
eligible employees who are foreign nationals on such terms and conditions 
different from those specified in this Program as may in its judgment be 
necessary or desirable to foster and promote achievement of the purposes of 
this Program.








                                  -12-





                                                            Exhibit 10(iii)(e)
                             EXXON CORPORATION

                       SHORT TERM INCENTIVE PROGRAM
                        (as amended May 28, 1997)


      I.  Purpose.  The Short Term Incentive Program in intended to help 
maintain and develop strong management through incentive awards to key 
employees of the Corporation and certain of its affiliates for recognition of 
efforts and accomplishments which contribute materially to the success of the 
Corporation's business interests.

     II.  Definitions.  In this Program, except where the context otherwise 
indicates, the following definitions apply:

         (1)  'Administrative authority' means one of the following, as 
appropriate in accordance with Section III: the Board; any committee to which 
the Board delegates authority to administer this Program; or, in individual 
cases, the Chairman of the Board or persons acting under his direction.

         (2)  'Affiliate' means (a) any subsidiary and (b) any other 
corporation, partnership, joint venture, or other entity in which the 
Corporation, directly or indirectly, owns an equity interest and which the 
administrative authority deems to be an affiliate for purposes of this Program 
(including, without limitation, for purposes of determining whether a change of 
employment constitutes a termination).

         (3)  "Award" means a bonus, bonus unit, or other incentive award 
under this Program.

         (4)  "Board" means the Board of Directors of the Corporation.

         (5)  "Board Compensation Committee," hereinafter sometimes called 
the "BCC," means the committee of the Board so designated.

         (6)  "Bonus" means an award granted under this Program which may 
be payable in cash or other consideration as specified by the grant.

         (7)  "Bonus unit" means an award granted under this Program to 
receive from the Corporation an amount of cash or other consideration not 
to exceed the maximum settlement value and based upon a measurement for 
valuation as specified by the grant.  The term bonus unit includes, but is 
not limited to, earnings bonus units.

         (8)  "By the grant" means by the action of the granting authority 
at the time of the grant of an award hereunder, or at the time of an 
amendment of the grant, as the case may be.












         (9)  "Corporation" means Exxon Corporation, a New Jersey 
corporation.

        (10)  "Designated beneficiary" means the person designated by the 
grantee of an award hereunder to be entitled, on the death of the grantee, 
to any remaining rights arising out of such award.  Such designation must 
be made in writing and in accordance with such regulations as the 
administrative authority may establish.

        (11)  "Detrimental activity" means activity that is determined in 
individual cases by the administrative authority to be detrimental to the 
interests of the Corporation or any affiliate.

        (12)  "Earnings bonus unit," hereinafter sometimes called an "EBU," 
means a bonus unit granting the right to receive from the Corporation at 
the settlement date specified by the grant, or at a later payment date so 
specified, an amount of cash equal to the Corporation's cumulative 
consolidated earnings per common share as reflected in its quarterly 
earnings statements as initially published commencing with earnings for the 
first full quarter following the date of grant to and including the last 
full quarter preceding the date of settlement, but the amount of such 
settlement shall not exceed the maximum settlement value specified by the 
grant.

        (13)  "Eligible employee" means an employee of the Corporation or a 
subsidiary who is a director or officer, or in a managerial, professional, 
or other key position as determined by the granting authority.

        (14)  "Employee" means an employee of the Corporation or an 
affiliate.

        (15)  "Grantee" means a recipient of an award under this Program.

        (16)  "Granting authority" means the Board or any appropriate 
committee authorized to grant and amend awards under this Program in 
accordance with Section V and to exercise other powers of the granting 
authority hereunder.

        (17)  "Reporting person" means a person subject to the reporting 
requirements of Section 16 with respect to equity securities of the 
Corporation.

        (18)  "Section 16" means Section 16 of the Securities Exchange Act 
of 1934, together with the rules and interpretations thereunder, as in 
effect from time to time.

        (19)   "Subsidiary" means a corporation, partnership, joint 
venture, or other entity in which the Corporation, directly or indirectly, 
owns a 50% or greater equity interest.

        (20)  "Terminate" means cease to be an employee, except by death, 
but a change of employment from the Corporation or one affiliate to another 
affiliate or to the Corporation shall not be considered a termination. For 
purposes of this Program, the administrative authority may determine that 
the time or date of termination is the day an 



                                  -2-

employee resigns, accepts employment with another employer or otherwise 
indicates an intent to resign, which time or date need not necessarily be 
the last day on the payroll.

        (21)  "Terminate normally" for purposes of this Program means 
terminate

        (a)       at normal retirement time for that employee, or

        (b)       with written approval of the administrative authority 
                  given in the context of recognition that all or a specified 
                  portion of the outstanding awards to that employee will not 
                  expire or be forfeited or annulled because of such 
                  termination

        and, in each such case, without being terminated for cause.

        (22)  "Year" means calendar year.

    III.  Administration.

         (1)  The Board is the ultimate administrative authority for this 
Program, with the power to conclusively interpret its provisions and decide 
all questions of fact arising in its application.  The Board may delegate its 
authority pursuant to any provision of this Program to a committee which, 
except in the case of the BCC, need not be a committee of the Board.  Subject 
to the authority of the Board or an authorized committee and excluding cases 
involving the Chairman as grantee, the Chairman of the Board and persons 
acting under his direction may serve as the administrative authority under 
this Program for purposes of making determinations and interpretations in 
individual cases. 

         (2)   The Board and any committee acting as the administrative 
authority under this Program can act by regulation, by making individual 
determinations, or by both. The Chairman of the Board and persons 
designated by him can act as the administrative authority under this 
Program only by making individual determinations.

         (3)  All determinations and interpretations pursuant to the 
provisions of this Program shall be binding and conclusive upon the 
individual employees involved and all persons claiming under them.

         (4)  It is intended that this Program shall not be subject to the 
provisions of Section 16 and that awards granted hereunder shall not be 
considered equity securities of the Corporation within the meaning of 
Section 16.  Accordingly, no award under this Program shall be payable in 
any equity security of the Corporation.  In the event an award to a 
reporting person under this Program should be deemed to be an equity 
security of the Corporation within the meaning of Section 16, such award 
may, to the extent permitted by law and deemed advisable by the granting 
authority, be amended so as not to constitute such an equity security or be 
annulled.  Each award to a reporting person under this Program shall be 
deemed issued subject to the foregoing qualification.





                                  -3-

         (5)  An award under this Program is not transferable prior to 
payment or settlement except, as provided in the award, by will or the laws 
of descent and distribution, and is not subject, in whole or in part, to 
attachment, execution, or levy of any kind.  The designation by a grantee 
of a designated beneficiary shall not constitute a transfer.

         (6)  The grantee's designated beneficiary or, if there is no 
designated beneficiary, the grantee's personal representative shall be 
entitled to any remaining rights with respect to an award granted under this 
Program existing after the grantee dies.

         (7)  Except as otherwise provided herein, a particular form of award 
may be granted to an eligible employee either alone or in addition to other 
awards hereunder.  The provisions of particular forms of award need not be the 
same with respect to each recipient.

         (8)    If the administrative authority believes that a grantee (a) 
may have engaged in detrimental activity or (b) may have accepted employment 
with another employer or otherwise indicated an intent to resign, the 
authority may suspend the delivery, vesting or settlement of all or any 
specified portion of such grantee's outstanding awards pending an 
investigation of the matter.

         (9)  This Program and all action taken under it shall be governed 
by the laws of the State of New York.

     IV.  Annual Ceiling.  In respect to each year under the Program, the BCC 
shall, pursuant to authority delegated by the Board, establish a ceiling on 
the aggregate dollar amount that can be awarded hereunder.  With respect to 
bonuses granted in a particular year under the Program, the sum of:

          (1)  the aggregate amount of bonuses in cash, and

          (2)  the aggregate maximum settlement value of bonuses in any form 
      of bonus unit shall not exceed such ceiling.

      The BCC may revise the ceiling as it deems appropriate.

      V.  Right to Grant Awards; Reserved Powers.  The Board is the ultimate 
granting authority for this Program, with the power to select eligible 
employees for participation in this Program and to make all decisions 
concerning the grant or amendment of awards.  The Board may delegate such 
authority in whole or in part to a committee which, except in the case of the 
BCC, need not be a committee of the Board.

     VI.  Term.  The term of this Program begins on November 1, 1993 and shall 
continue until terminated by the Board.











                                  -4-

    VII.  Bonuses Grantable.  A bonus is grantable in respect of any year 
to any eligible employee during such year if, should it be granted, the 
aggregate amount of the bonuses granted in respect of that year will not 
exceed the ceiling established from time to time by the BCC.  In this 
connection, each bonus granted ceases to be effectively granted to the extent 
that the grant is annulled.  No award may be granted to a member of the BCC.

   VIII.  Form of Bonus.  Subject to Section III(4), a grantable bonus can be 
granted to any eligible employee in respect of any year either wholly in cash, 
bonus units, or other consideration, or partly in two or more such forms.

     IX.  Settlement of Bonuses.  Each grant shall specify the time and method 
of settlement as determined by the granting authority, provided that no such 
determination shall authorize settlement to be made later than the tenth 
anniversary of the grantee's date of termination.  Each grant, any portion of 
which is granted in bonus units, shall specify as the regular method of 
settlement for that portion a settlement date, which may be accelerated to an 
earlier time as specified by the grant, provided, however, whether or not the 
settlement date has been accelerated, payment of cash to the grantee to 
complete such settlement may be postponed, by the grant, so long as such 
payment is not postponed beyond the tenth anniversary of the grantee's date of 
termination.  The granting authority, by amendment of the grant prior to 
payment or delivery, can modify any method of settlement for any bonus or 
portion thereof, provided that the settlement of any bonus shall be completed 
by the payment of any cash not later than the tenth anniversary of the 
grantee's date of termination.

      X.  Installments Payable After Death.  If any bonus or installment 
thereof is payable after the grantee dies, it shall be payable

         (1)  to the grantee's designated beneficiary or, if there is no 
      designated beneficiary, to the grantee's personal representative, and

         (2)  either in the form specified by the grant or otherwise, as 
      may be determined in the individual case by the administrative 
      authority.

     XI.  Interest Equivalents.  With respect to the relevant portion of a 
bonus granted in cash for delivery more than six months after the date of 
grant, there shall be credited to the grantee an amount equivalent to interest 
(which may be compounded) as specified by the grant with respect to the period 
beginning at the date of grant and ending on the date as specified by the 
grant.  The rate of interest, if any, credited to the grantee shall be 
determined from time to time by the BCC.

          With respect to the relevant portion of a bonus granted in bonus 
units the payment of cash in settlement of which is postponed more than six 
months after the settlement date, there shall be credited to the grantee an 
amount equivalent to interest (which may be 









                                  -5-

compounded) as specified by the grant.  The rate of interest, if any, credited 
to the grantee shall be determined from time to time by the BCC.

          Such credits for interest equivalents shall not be included in any 
computation made for purposes of any ceiling established by the BCC pursuant 
to Section IV.

          When a bonus in cash is paid, any interest equivalents so credited 
on the cash shall be paid.  When a bonus in units is paid, any interest 
equivalents so credited on the units shall be paid.

    XII.  Annulment of Grant.  The grant of any bonus or portion thereof is 
provisional until cash or other consideration is paid in settlement thereof, 
except to the extent the granting authority shall have declared the bonus to 
be vested and nonforfeitable.  If, while the grant is provisional,

         (1) the grantee terminates but does not terminate normally, or

         (2)  the grantee is determined to have engaged in detrimental 
      activity, the grant shall be annulled as of the time of termination, or 
      the date such activity is determined to be detrimental, as the case may
      be. 

   XIII.  Amendments to this Program.  The Board can from time to time amend 
or terminate this Program, or any provision hereof.

    XIV.  Amendments to Awards.  The granting authority may amend any 
outstanding award under this Program to incorporate any terms that could then 
be incorporated in a new award under this Program.

     XV.  Withholding Taxes.  The Corporation shall have the right to deduct 
from any cash payment made under this Program any federal, state or local 
income or other taxes required by law to be withheld with respect to such 
payment.  In the case of a payment under this Program other than cash, the 
grantee will pay to the Corporation such amount of cash as may be requested by 
the Corporation for purpose of satisfying any liability for such withholding 
taxes.

    XVI.  Grant of Awards to Employees Who Are Foreign Nationals.  Without 
amending this Program, but subject to the limitations specified in Section 
III(4), the granting authority can grant or amend, and the administrative 
authority can administer, annul, or terminate, awards to eligible employees 
who are foreign nationals on such terms and conditions different from those 
specified in this Program as may in its judgment be necessary or desirable to 
foster and promote achievement of the purposes of this Program.













                                  -6-