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                                                                     Exhibit 10




                           TERMS AND CONDITIONS OF THE

                COURIER CORPORATION DEFERRED COMPENSATION PROGRAM

        1.      Eligibility in the Courier Corporation Deferred Compensation
Program (the "Program") shall be granted to the following employees of Courier
Corporation (the "Company") who have been designated by the Board of Directors
of the Company (the "Board") as being eligible for the Program: James F. Conway
III, Robert P. Story, Jr., George Q. Nichols, and Thomas A. Osenton (the
"Participants"). The Board shall have full power and discretion to name
additional employees of the Company as Participants and at such times as it
shall decide in its sole discretion.

        2.      Each capitalized term herein shall have the same meaning
attributed to such term in the Courier Profit Sharing and Savings Plan (the
"Plan"), except as otherwise provided.

        3.      (a)     RETROACTIVE AWARD. Each Participant who is actively 
                        employed by the Company on November 6, 1997 shall
                        receive a deferred compensation award in an amount equal
                        to the sum of the differences for each of 1994, 1995,
                        and 1996 between (i) the amount of the Profit Sharing
                        Contributions to which he would have been entitled under
                        the Plan and the amount of ESOP Contributions to which
                        he would have been entitled under the Courier Employee
                        Stock Ownership Plan (the "ESOP"), were such
                        Participant's Compensation under the Plan and the ESOP
                        not limited each year to $150,000 (or such amount as may
                        be increased from time to time pursuant to Section
                        401(a)(17) of the Code) as provided in Section 2.10 of
                        the Plan and 2.10 of the ESOP for such calendar year,
                        and (ii) the actual amount of Profit Sharing
                        Contributions credited to such Participant's Profit
                        Sharing Contribution Account under the Plan and the
                        actual amount of ESOP Contributions credited to such
                        Participant's Account under the ESOP for such calendar
                        year. Such award shall be adjusted with interest in an
                        amount determined at the discretion of the Administrator
                        (as such term is defined in Paragraph 15 hereof) and
                        credited to a separate book account (a "Deferred
                        Compensation Account") in the Participant's name on or
                        before December 31, 1997.

                (b)     Annual Award. Each Participant who is actively employed 
                        by the Company on the last day of each calendar year
                        beginning on and after January 1, 1997 shall receive a
                        deferred compensation award for such calendar year in an
                        amount equal to the difference between (i) the amount of
                        the Profit Sharing Contributions and ESOP Contributions
                        to which he would have been entitled under Sections 7.3
                        and 7.5 of the Plan were such Participant's Compensation
                        under the Plan not limited to $160,000 (or such amount
                        as may be increased from time to time pursuant to
                        Section 401(a)(17) of the Code) as provided in Section
                        2.10 of the Plan, and (ii) 





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                        the actual amount of Profit Sharing Contributions and
                        ESOP Contributions credited to such Participant's Profit
                        Sharing Contribution Account and ESOP Account for such
                        calendar year. All amounts awarded to a Participant
                        under this Paragraph 3(b) shall be credited to the
                        Deferred Compensation Account in his name the following
                        calendar year.

        4.      On or before January 15th of each calendar year, beginning with
January 15, 1999, the amount standing to the credit of a Participant's Deferred
Compensation Account on such date shall be adjusted for deemed earnings or
losses as if such amount had been invested in the Participant's investment
choice for the entire preceding calendar year. The reasonable determination of
such adjustment by the Administrator shall be conclusive and binding on all
Participants and their Beneficiaries. The investment choices available to
Participants shall be as specified by the individual appointed by the Board to
administer the Program pursuant to Paragraph 15 hereof (the "Administrator")
from time to time, but each Participant may select only one investment choice
for each annual period on a prospective basis. On an ongoing basis, each
Participant must make an investment choice for a calendar year prior to January
15 of such calendar year. If a Participant fails to make a timely election, such
Participant's investment choice which was in effect for the prior calendar year
will continue in effect, unless such failure occurs in 1998, in which event the
Administrator shall make an election on behalf of such Participant.

        5.      During his period of active employment, each Participant shall
be fully vested in all amounts credited to his Deferred Compensation Account,
but no Participant shall have any rights to the amounts which he has been
awarded hereunder. Participation in the Program, and any actions taken pursuant
to the Program, shall not create or be deemed to create a trust or fiduciary
relationship of any kind between the Company and the Participant. The Company
may, but shall have no obligation to, establish any separate fund, reserve, or
escrow or to provide security with respect to any amounts awarded under the
Program. Any assets of the Company which are set aside in any separate fund,
reserve or escrow shall continue for all purposes to be a part of the general
assets of the Company, with title to the beneficial ownership of any such assets
remaining at all times in the Company. No Participant, nor his legal
representatives, nor any of his beneficiaries shall have any right, other than
the right of an unsecured general creditor of the Company, in respect of the
Deferred Compensation Account established hereunder, and such persons shall have
no property interest whatsoever in any specific assets of the Company.

        6.      Upon the termination of a Participant's employment with the
Company for any reason other than Retirement, death or disability, the
Participant shall be entitled to receive all amounts standing to the credit of
his Deferred Compensation Account (including amounts to be credited under
Paragraph 3(b) for the prior calendar year), as adjusted for earnings or losses
based on the total investment return based on the Participant's investment
choice through December 31 of the year of termination in one (1) lump sum
payment. Such payment shall be made within 90 days after the beginning of the
calendar year following the calendar year in which such Participant's
termination of employment occurs, and shall completely discharge the Company's
obligation under the Program.


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        7.      Upon the Retirement of a Participant from employment with the
Company or the termination of the Participant's employment with the Company by
reason of death or disability, the Participant (or his Beneficiary, in the case
of death) shall be entitled to receive all amounts standing to the credit of his
Deferred Compensation Account as of the December 31 preceding the date of
termination, as well as any amounts to be credited under Paragraph 3(b) for the
prior calendar year, all as adjusted for earnings or losses based on the total
investment return of the Participant's investment choice from January 1 of the
year of termination until the actual date of termination, in one (1) lump sum
payment. The Company shall also credit to the Participant's Deferred
Compensation Account an award for the year of termination as calculated pursuant
to Paragraph 3(b), but based on the Participant's Compensation earned through
the date of termination and based on the rate of Profit Sharing Contributions
and ESOP Contributions estimated by the Administrator in good faith. Such
payment shall be made within 60 days after such Participant's termination of
employment, and shall completely discharge the Company's obligation under the
Program.

        8.      Notwithstanding anything to the contrary contained herein, in
the event of a good faith determination by the Administrator that any of the
following acts or omissions were committed by a Participant, then such
Participant shall immediately forfeit all rights to amounts credited to such
Participant's Deferred Compensation Account, and the Participant, his estate,
his legal representative and his Beneficiaries shall have no further rights with
respect to such Participant's Deferred Compensation Account or any claims
against the Company under this Program:

                (a) dishonest statements or acts of the Participant with respect
        to the Company, or any subsidiary or affiliate of the Company;

                (b) the commission by or indictment of the Participant for (i) a
        felony or (ii) any misdemeanor involving moral turpitude, deceit,
        dishonesty or fraud ("indictment," for these purposes, meaning an
        indictment, probable cause hearing or any other procedure pursuant to
        which an initial determination of probable or reasonable cause with
        respect to such offense is made);

                (c) gross negligence, willful misconduct or insubordination of
        the Participant with respect to the Company or any subsidiary or
        affiliate of the Company; or

                (d) breach by the Participant of any contract with, or other
        obligation to, the Company.

        9.      Any distribution of deferred compensation payments will be
reduced by the amounts required to be withheld pursuant to any governmental law
or regulation with respect to taxes or similar provisions.


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        10.     If a Participant who has deferred compensation under the Program
dies before he has received full payment of the amount credited to his Deferred
Compensation Account, such unpaid portion shall be paid to the Participant's
Beneficiary as designated by the Participant in writing. If no Beneficiary has
been designated or if a designated Beneficiary has predeceased the Participant,
such unpaid portion shall be paid to the Participant's estate.

        11.     The deferred compensation payable under this Program shall not
be subject to alienation, assignment, garnishment, execution, or levy of any
kind, and any attempt to cause any compensation to be so subjected shall not be
recognized.

        12.     All expenses incurred, or taxes paid by the Company, and
attributable to a Participant's Deferred Compensation Account shall be borne by
the Company and shall not reduce the amount credited to such Deferred
Compensation Account.

        13.     Nothing in this Program shall be construed as giving any
Participant the right to be retained in the employ of the Company in any
capacity. The Company expressly reserves the right to dismiss any employee, at
any time, without liability for the effect which such dismissal may have upon
such employee hereunder.

        14.     This Program may be amended in any way or may be terminated, in
whole or in part, at any time, and from time to time, by the Board. The
foregoing provisions of this paragraph notwithstanding, no amendment or
termination of the Program shall adversely affect the amounts payable hereunder
on account of compensation awarded under the Program prior to the effective date
of such amendment or termination.

        15.     The Board shall delegate the administration of this Program to
an individual who shall serve as the Administrator. The Administrator shall have
the exclusive discretionary authority to determine eligibility for and the
amounts of benefits under the Program, make factual determinations, construe and
interpret terms of the Program, supply omissions and determine any questions
which may arise in connection with its operation and administration. Its
decisions or actions in respect thereof, including any determination of any
amount credited or charged to the Participant's Deferred Compensation Account or
the amount or recipient of any payment to be made therefrom, shall be conclusive
and binding for all purposes upon the Company and upon any and all Participants,
their Beneficiaries, and their respective heirs, distributees, executors,
administrators and assignees; subject, however, to the right of a Participant or
his Beneficiary to file a written claim under the provisions of Paragraph 22.

        16.     All notices, elections, or designations by a Participant to the
Company shall be delivered in person or by registered mail, postage prepaid, and
noted to be brought to the attention of the Administrator.

        17.     The terms of this Program shall be binding upon and shall inure
to the benefit of the Company and its successors or assigns and each Participant
and his Beneficiaries, heirs, executors, and administrators.


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        18.     Subject to its obligation to pay the amount credited to the
Participant's Deferred Compensation Account at the time distribution is called,
neither the Company, any person acting on behalf of the Company, nor the
Administrator shall be liable for any act performed or the failure to perform
any act with respect to the terms of the Program, except in the event that there
has been a judicial determination of willful misconduct on the part of the
Company, such person or the Administrator.

        19.     This Program, and all actions taken hereunder, shall be governed
by and construed in accordance with the laws of the Commonwealth of
Massachusetts, except as such laws may be superseded by any applicable Federal
laws.

        20.     Notwithstanding anything to the contrary contained herein, in
the event of a "Change in Control," each Participant shall have the right to
receive a distribution, within 30 days of such Change in Control, of all amounts
standing to the credit of his Deferred Compensation Account as of the December
31 preceding the date of the Change in Control, as adjusted for earnings and
losses based on the total investment return of the Participant's investment
choice from January 1 of the year of the Change in Control until the actual date
of such Change in Control, in one (1) lump sum payment. "Change in Control"
shall mean an event which shall be deemed to have occurred if (i) any "person"
or "group" (as such terms are used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), other than a trustee or
other fiduciary holding securities under an employee benefit plan of the
Company, is or becomes the "beneficial owner" (as defined in Rule 13d-3
promulgated under the Exchange Act), directly or indirectly, of securities of
the Company representing 25% or more of the combined voting power of the
Company's then outstanding securities; or (ii) individuals who at November 6,
1997 constitute the Board and any new director (other than a director designated
by a person who has entered into an agreement with the Company to effect a
transaction described in clauses (i) or (iii) of this paragraph) whose election
by the Board or nomination for election by the Company's stockholders was
approved by a vote of at least 80% of the directors then still in office who
either were directors at November 6, 1997 or whose election or nomination for
election was previously so approved, cease for any reason to constitute a
majority of the Board; or (iii) the stockholders of the Company approve a merger
or consolidation of the Company with or into any other corporation, other than a
merger or consolidation which would result in the voting securities of the
Company outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity) at least 50% of the combined voting power of the voting
securities of the Company or such surviving entity outstanding immediately after
such merger or consolidation, or the stockholders of the Company approve a plan
of complete liquidation of the Company or an agreement for the sale or
disposition by the Company of all or substantially all the Company's assets.

        21.     This Program shall be effective as of November 6, 1997.


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        22.     (a)     All claims for benefits under this Program shall be 
filed in writing with the Administrator in accordance with such procedures as
the Administrator shall reasonably establish.

                (b)     The Administrator shall, within 90 days of submission of
a claim, provide adequate notice in writing to any claimant whose claim for
benefits under the Program has been denied. Such notice shall contain the
specific reason or reasons for the denial and references to specific Program
provisions on which the denial is based. The Administrator shall also provide
the claimant with a description of any material or information which is
necessary in order for the claimant to perfect his claim and an explanation of
why such information is necessary. If special circumstances require an extension
of time for processing the claim, the Administrator shall furnish the claimant a
written notice of such extension prior to the expiration of the 90-day period.
The extension notice shall indicate the reasons for the extension and the
expected date for a final decision, which date shall not be more than 180 days
from the initial claim.

                (c)     The Administrator shall, upon written request by a
claimant within 60 days of receipt of the notice that his claim has been denied,
afford a reasonable opportunity to such claimant for a full and fair review by
the Administrator of the decision denying the claim. The Administrator will
afford the claimant an opportunity to review pertinent documents and submit
issues and comments in writing. The claimant shall have the right to be
represented.

                (d)     The Administrator shall, within 60 days of receipt of a
request for a review, render a written decision on his review. If special
circumstances require extra time for the Administrator to review his decision,
the Administrator will attempt to make his decision as soon as practicable, and
in no event will the Administrator take more than 120 days to send the claimant
a written notice of his decision.

        IN WITNESS WHEREOF, this Program has been signed and sealed for and on
behalf of the Company by its duly authorized officer this 6th day of November,
1997.


                                                COURIER CORPORATION



                                                By: /s/ Diana L. Sawyer
                                                    ----------------------------
                                                    Title:  Vice President