Document:

MALLINCKRODT INC.
                 MALLINCKRODT INCOME DEFERRAL PLAN
                 ---------------------------------

                              PREAMBLE
                              --------

     The purpose of this Mallinckrodt Income Deferral Plan (the
"Plan") is to provide opportunities for a select group of management
or highly compensated employees of Mallinckrodt Inc. (the "Company")
and its Affiliates to defer, on a nontaxable basis, the receipt of
income pursuant to Section 451 of the Internal Revenue Code.  The Plan
will be effective as of January 1, 2000 as noted below.

     The Company declares its intention is to create an unfunded Plan
primarily for the purpose of providing a select group of management or
highly compensated employees of the Company and of its affiliated
organizations with deferred compensation in accordance with their
individual elections.  It is also the intention of the Company that
the Plan be an "employee pension benefit plan" as defined in Section
3(2) of Title I of the Employee Retirement Income Security Act of 1974
("ERISA") and that the Plan be the type of plan described in Sections
201(2), 301(3) and 401(a)(1) of Title I of ERISA.  The Committee, as
defined herein, is the "named fiduciary" of the Plan for purposes of
Section 402(a)(2) of ERISA.

     Accordingly, the following Plan is adopted with respect to each
such Compensation Deferral.

                              ARTICLE I
                             DEFINITIONS
                             -----------

     1.1  "ACCOUNT" means the bookkeeping device established on the
books of account of the Company to be used to measure and determine
the amounts accumulated by and to be paid to Participants and Inactive
Participants under the Plan.  Each Compensation Deferral elected and
investment return, income gain or loss credited to the Participant's
or Inactive Participant's Account thereon shall be credited to a
separate Subaccount within Participant's Account.  Separate
Subaccounts shall be created in each Participant's Account based upon
the dates or events upon which Compensation Deferrals and investment
returns thereon will be paid.  Amounts deferred to common payment
dates or events will be combined into a single Subaccount.  All
investment return, income gain or loss associated with a Compensation
Deferral which is credited to a particular Subaccount shall likewise
be credited to such Subaccount.

     1.2 "AFFILIATE" means:  (a) A corporation that is a member of the
same controlled group of corporations (within the meaning of Section
414(b) of the Code) as the Company, (b) a trade or business (whether
or not incorporated) under common control (within the meaning of
Section 414(c) of the Code) with the Company, (c) any organization
(whether or not incorporated) that is a member of an affiliated
service group (within the meaning of Section 414(m) of the Code) that
includes the Company, a corporation described in clause (a) of this
subdivision or a trade or business described in clause (b) of this
subdivision, or (d) any other entity that is required to be aggregated
with the Company pursuant to Regulations promulgated under Section
414(o) of the Code.

     1.3 "BENEFICIARY" means the person who under the Plan becomes
entitled to receive a Participant's or Inactive Participant's interest
in the Plan in the event of a Participant's or Inactive Participant's
death, or a successor Beneficiary (as designated in accordance with
the provisions of Article VIII) who becomes entitled to receive a
Participant's or Inactive Participant's interest in the event of a
Participant's or Inactive Participant's death.

     1.4   "BOARD OF DIRECTORS" means the Board of Directors of the
Company.

     1.5   (Not Used).

     1.6   "CODE" means the Internal Revenue Code of 1986 and the
regulations thereunder, as amended from time to time.

     1.7   "COMMITTEE" means the Mallinckrodt Inc. Employee Benefits
Committee or such other group or committee which may be designated by
the Board of Directors pursuant to Section 10.1.

     1.8   "COMMON STOCK" means the Common Stock of the Company and
any of its successors.

     1.9   "COMPANY" means Mallinckrodt Inc. and its successors and
assigns unless otherwise herein provided, or any Affiliate that, with
the consent of the Company or its successors or assigns, assumes the
Company's obligations hereunder.

     1.10   "COMPENSATION" means the present value in cash or Common
Stock of any awards actually made and payable to a Participant
pursuant to the Company's Management Incentive Compensation Plan,
Executive Incentive Compensation Plan and such other incentive
compensation plans as the Committee may designate from time to time.
Provided, however, only awards under such plans which are made and
payable in shares of Common Stock or which would be immediately
payable in cash pursuant to the above discussed plans may be deferred
hereunder.

     1.11   "COMPENSATION DEFERRALS" means amounts of Compensation
whose receipt a Participant affirmatively elects to defer to a later
date in accordance with the terms of this Plan.  Each annual award
under each incentive compensation plan described in Section 1.10 shall
be a separate Compensation Deferral and may be subject to a separate
deferral election under this Plan.

     1.12   "EARLY RETIREMENT AGE" means the first day of the first
calendar month following the date on which a Participant or Inactive
Participant attains age 55.

     1.13   "EFFECTIVE DATE" means the effective date of the Plan,
which shall be January 1, 2000 and this Plan shall be effective only
for deferrals of compensation awards made under the Plan as described
in Section 1.10 for plan years beginning on or after January 1, 2000.

     1.14   "ELIGIBLE EMPLOYEE" means each Employee who is employed by
the Company or an Affiliate and who is determined by the Company to be
a member of a select group of management or highly compensated
employees.  Eligibility to participate in this Plan, however, shall be
limited to Employees who are participants in the Company's Management
Incentive Compensation Plan, Executive Incentive Compensation Plan and
such other incentive compensation plans as the Committee may designate
and who receive awards of Compensation under those plans.  The Company
or Plan Administrator shall notify all Employees who will be Eligible
Employees and provide all information necessary to permit Plan
participation.

     1.15   "EMPLOYEE" means an individual whose relationship with the
Company or any of its Affiliates is, under common law, that of an
employee.  Any individual who has been engaged by the Company or an
Affiliate to provide services as a NonEmployee Service Provider
[(e.g., as a consultant, independent contractor, director, leased
employee, (as defined in Code Section 414(2)), which status
determination shall be made conclusively pursuant to written agreement
or classification established by the Company or Affiliate], shall not
be considered to be an Employee.

     1.16   "HYPOTHETICAL INVESTMENT FUND" or "INVESTMENT FUND" means
an investment allocation and investment return measurement device
created by the Committee to develop a hypothetical rate of investment
return, income, gain or loss.  The hypothetical investment performance
of such fund will mirror the actual performance of an investment
alternative, measurement, index or other standard of investment
performance developed or selected by the Committee.  To the extent
Participants direct the investment of their Compensation Deferrals and
Account balances into such Hypothetical Investment Fund, their
Accounts will be credited with deemed investment return, income, gain
or loss based upon the investment performance which the Committee
determines has been recognized under the Hypothetical Investment Fund.
These are hypothetical funds and do not represent actual investment of
Compensation Deferrals or Plan Account balances or investment return,
income, gain or loss which would result, or did result, from
investment of Plan Account balances.

     1.17   "NORMAL RETIREMENT AGE" means the first day of the first
calendar month following the date on which a Participant or Inactive
Participant attains age 65.

     1.18   "PARTICIPANT" means an Eligible Employee who has satisfied
the requirements set forth in Article II for participation in the Plan
and who is then eligible to make Compensation Deferrals hereunder.
Inactive Participant means any former Participant or Beneficiary who
has an Account balance under the Plan.  An individual shall cease to
be a Participant and Inactive Participant upon complete distribution
of the balance of his or her Plan Account.

     1.19   "PARTICIPANT ENROLLMENT AND/OR ELECTION FORM" means the
form on which a Participant elects to defer Compensation hereunder and
on which the Participant or an Inactive Participant makes certain
other designations as required by the Plan Administrator.

     1.20   "PLAN" means this Mallinckrodt Income Deferral Plan as set
forth in this document as the same may be amended, administered or
interpreted from time to time.

     1.21   "PLAN ADMINISTRATOR" means the Plan Administrator
appointed by the Committee pursuant to Section 10.2 or in the absence
of such designation, the Committee and its delegates.

     1.22   "PLAN YEAR" means the twelve (12) month period ending on
the 30th day of June of each year during which the Plan is in effect.
The first Plan Year shall commence on the Effective Date and end on
the 30th of June immediately following.

     1.23   "TRUST" means any trust fund which may be established
under this Plan to hold Plan assets, although none is required to be
established.

     1.24   "TRUSTEE" means the trustee named in the agreement
establishing the Trust and such successor and/or additional trustees
as may be named pursuant to the terms of the agreement establishing
the Trust.

     1.25   "VALUATION DATE" means the last day of each calendar
month.

                              ARTICLE II
                    ELIGIBILITY AND PARTICIPATION
                    -----------------------------

     2.1    Eligibility for Participation.  Each Employee may
            -----------------------------
participate in the Plan as soon as practicable after the date on which
the Employee meets the definition of Eligible Employee hereunder, is
notified of his eligibility for participation and becomes eligible to
defer receipt of Compensation under a plan described in Section 1.10.

     2.2    Application.  Participation in the Plan is voluntary.  In
            -----------
order to participate, an otherwise Eligible Employee must make written
application and must complete such application process, including a
Participant Enrollment and Election Form, as required by Section 3.1
and as prescribed by the Plan Administrator.  The application process
shall require an Eligible Employee to:  (a) specify a rate or amount
of Compensation Deferral, (b) authorize the Company to reduce and
defer the Employee's Compensation by the amount of the Deferral, (c)
specify the Employee's investment elections pursuant to Article V, (d)
evidence the Employee's acceptance of and agreement with all Plan
provisions, and (e) state the period for which Compensation Deferral
will be made or when payment of Compensation that has been deferred
will be made (as required by Article VI) and the manner of payment (as
required by Article VII).

     2.3    Reemployment.  If a Participant whose employment with the
            ------------
Company and its Affiliates is terminated is subsequently reemployed,
he or she shall become a Participant in accordance with the provisions
of this Article when he or she again becomes an Eligible Employee.

     2.4    Change of Employment Category.  During any period in which
            -----------------------------
a Participant remains in the employ of the Company and its Affiliates,
but ceases to be an Eligible Employee, he or she shall not be eligible
to make further Compensation Deferrals hereunder, but shall become an
Inactive Participant.

                              ARTICLE III
                       CONTRIBUTIONS AND CREDITS
                       -------------------------

     3.1    Participant Compensation Deferrals.  In accordance with
            ----------------------------------
rules established by the Committee and Plan Administrator, a
Participant may elect to defer Compensation that is due to be earned
and that would otherwise be paid or payable to the Participant.  The
Plan Administrator will establish, in its discretion, the increments
in which Compensation Deferrals may be made, along with applicable
minimum Compensation Deferral.  The maximum amount of Compensation
which a Participant may defer under the Plan shall be one hundred
percent (100%) of any award(s) which a Participant receives under any
of the incentive compensation programs of the Company, described in
Section 1.10.

     3.2    Election of Compensation Deferrals.  (a) Participants
            ----------------------------------
shall be entitled to make a separate Compensation Deferral election
for each award of Compensation made for each year under each of the
incentive plans described in Section 1.10, unless otherwise provided
by such plan or the Committee.  For each award of Compensation that a
Participant elects to defer under this Plan, he or she shall complete
a Participant Enrollment or Election Form electing the percentage or
dollar amount of such Compensation award which the Participant elects
to defer.  All elections to defer Compensation must be made before
such dates as established by the Plan Administrator and all
Compensation Deferral elections must be completed prior to the date on
which such Compensation award is finally established, due and payable
under any plan described in Section 1.10 for which the Deferral
election is being made.  Compensation Deferral elections made for any
award(s) under any such incentive plan shall not be effective for or
carry over to later Plan Years or other awards except as specified in
the actual election forms.  Each Compensation Deferral election shall
also provide the date or event upon which payment of the Compensation
Deferral and accumulated investment return thereon will commence (as
required by Article VI) and will select the manner in which each such
Compensation Deferral and accumulated investment return thereon will
be paid (as required by Article VII).  All Compensation Deferral
elections will be irrevocable once made, must be in writing and must
be prepared pursuant to such rules and procedures as established by
the Plan Administrator; however, Participants shall be permitted to
change the manner in which Compensation Deferrals, and investment
returns credited thereon to any Subaccount, are to be paid and may
select a different distribution election form as specified in Section
7.1 with respect to the entire amount credited to any Subaccount in
accordance with rules established by the Plan Administrator.

     (b)    Compensation Deferrals shall be deducted by the Company
from the Compensation of a deferring Participant and shall be credited
to the Plan Account of that Participant.

     3.3    Merger of Prior Deferred Compensation Balances.  Plan
            ----------------------------------------------
Participants and Inactive Participants who prior to the Effective Date
of this Plan had previously deferred receipt of compensation under
Company incentive compensation plans and who still have accumulated,
unpaid balances due and owing to them under those plans, shall be
permitted to elect to have such unpaid balances transferred to this
Plan.   Elections to transfer balances to this Plan will be
irrevocable once made, must be in writing and will be permitted in
accordance with such rules and procedures as established by the Plan
Administrator.   Any balances transferred to this Plan will be
governed, and may be managed by Participants and Inactive
Participants, in all respects according to the terms of this Plan.  In
addition, Participants and Inactive Participants shall not be
permitted to make any changes in the timing and payment of transferred
balances except as provided in Section 7.1 regarding the manner of
payment and Article VIII concerning beneficiary designation.

                              ARTICLE IV
                         ALLOCATION OF FUNDS
                         -------------------

     4.1    Compensation Deferral Accounts.  The Company shall
            ------------------------------
establish and maintain on its books of account for each Participant in
the Plan a separate Plan Account.  The balance to the credit of each
Participant in their Plan Account shall be his or her entire
entitlement and benefit under this Plan.

     4.2    Vesting of Account Balances.  Each Participant shall be
            ---------------------------
fully vested at all times in the entire balance to the Participant's
credit in his or her Account and such Account balance shall be
nonforfeitable and shall not be reduced except for distributions,
withdrawals and investment performance or to properly correct any
error or state any Plan transaction as determined appropriate by the
Plan Administrator.

     4.3    Crediting of Account Balances.  The Account and
            -----------------------------
Subaccounts of each Participant shall be credited and debited at such
times and in such manner as determined appropriate by the Plan
Administrator and the Committee with amounts equal to: (a) the
Participant's Compensation Deferrals, (b) any deemed investment
return, income, gains or losses determined by the Administrator to be
allocable to the Participant's prior Compensation Deferrals and
Account balance, (c) distributions or withdrawals from the
Participant's Account and (d) any other adjustments determined to be
appropriate by the Administrator or the Committee.

     4.4    Investment Subaccounts.  Each Account shall, to the extent
            ----------------------
determined appropriate by the Plan Administrator, be comprised of one
or more investment subaccounts to which all Compensation Deferrals
under the Plan and deemed investment return income, gain or loss
allocated thereon will be credited according to each Participant's
deemed investment directions, or pursuant to any mandatory deemed
investment directions made by the Committee.  Investment Subaccounts
shall be established based upon the dates and events on which
Compensation deferrals and investment returns thereon are to be paid
as described in Section 1.1.  Deemed investment return income, gains
or losses from the Hypothetical Investment Funds for which each
investment subaccount is established will be credited or debited to
that investment subaccount as described in Section 1.1.

     4.5    Investment Return and Subaccount Allocations.  The
            --------------------------------------------
Committee and Plan Administrator will have complete discretion to
allocate any deemed investment return, income, gains or losses among
Plan Accounts and subaccounts pursuant to such allocation rules or
methods as the Committee and Administrator deem to be appropriate.

     4.6    Unless the context does not allow, all references to
Participants in this Article shall also refer to Inactive
Participants.

                              ARTICLE V
       CREDITING OF DEEMED INVESTMENT RETURN ON COMPENSATION
               DEFERRALS AND COMMON STOCK DEFERRALS
       ------------------------------------------------------

     5.1    Investment Return.  The Company is not obligated in any
            -----------------
manner to actually invest Compensation Deferrals credited to
Participant Accounts in any actual or separate investment or fund of
any kind.  To the extent Compensation Deferrals are invested in any
investment or fund, the investment return, income, gain or loss from
such investment shall be the property of the Company, or Trust if one
is established under this Plan to hold its assets.  The Committee
shall determine in its discretion the amount, if any, of any
investment return, income, gain or loss to be credited or debited to
all Participant Accounts.  The Committee may change, at any time, the
manner and method in which future investment return, income, gain or
loss, if any, may be credited to Participant Accounts.

     5.2    Investment Funds.  The Committee may, from time to time,
            ----------------
establish and maintain, or cause to be established and maintained,
Hypothetical Investment Funds.  Each such Hypothetical Investment Fund
shall be deemed to carry a rate of investment return or produce
income, gains or losses, as determined by the Committee consistent
with Section 1.16.

     5.3    Hypothetical Investment Fund Directions of Participants.
            -------------------------------------------------------
To the extent the Committee creates Hypothetical Investment Funds,
Participants may direct the Company and Administrator as to how the
amounts credited to his or her Plan Account and Subaccounts shall be
deemed to be invested in and allocated among such Hypothetical
Investment Funds.   Such directions shall be made at such times and
intervals and shall be subject to such operating rules and procedures
as may be established from time to time by the Committee or the Plan
Administrator.  Such directions shall designate the percentage (in any
whole percent multiples) that the Participant requests of each of the
Participant's Subaccounts to be deemed invested in each such
Hypothetical Investment Fund as may then be available and shall,
unless otherwise provided by the Plan Administrator, be subject to the
following rules:

     (a)    A Participant may make a separate deemed investment
election among Hypothetical Investment Funds for each of the
Participant's Subaccounts.

     (b)    Any initial or subsequent Hypothetical Investment Fund
direction shall be provided on such form and in such manner as
directed by the Administrator and shall be effective on the first day
following the Valuation Date on or prior to which such directions are
provided, subject to such procedures and practices adopted by the
Administrator.

     (c)    All Compensation Deferrals and accumulated investment
return income, gain or loss thereon credited to a Participant's
Subaccount shall be deemed to be invested in accordance with the then
effective Hypothetical Investment Fund direction for that Subaccount.
An election concerning Hypothetical Investment Fund directions shall
continue indefinitely as provided in the Participant's most recent
Participant Enrollment and Election Form or other form specified by
the Administrator.  As of the effective date of any new deemed
Investment Fund direction, all of the Participant's Compensation
Deferrals credited to the Participant's Account and particular
Subaccount after that date shall be allocated among the designated
Hypothetical Investment Funds according to the percentages specified
in the new deemed investment direction unless and until a subsequent
deemed investment direction shall be filed and become effective.

     (d)    In accordance with uniform rules and practices developed
by the Plan Administrator, Participants shall also be permitted to
reallocate their existing Account and Subaccount balances among other
Hypothetical Investment Funds to be deemed invested in those Funds in
such percentages and as of such Valuation Dates as specified by the
Plan Administrator.

     (e)    If the Administrator receives an initial or revised deemed
investment direction that it deems to be incomplete, unclear, or
improper, the Participant's investment direction then in effect shall
remain in effect (or, in the case of a deficiency in an initial deemed
investment direction, the Participant shall be deemed to have filed no
deemed investment direction) unless the Administrator provides for,
and permits the application of, corrective action prior thereto.

     (f)    If the Administrator possesses at any time directions as
to the deemed investment of less than all of a Participant's Account,
the Participant shall be deemed to have directed that the undesignated
portion of the Account be deemed to be invested in such Hypothetical
Investment Fund under the Plan as determined by the Administrator in
its discretion.

     (g)    Each Participant hereunder, as a condition to his or her
participation, agrees to indemnify and hold harmless the Company, the
Trustees, the Plan Administrator and its agents and representatives
from any losses or damages of any kind relating to the deemed
investment of the Participant's Account hereunder.

     5.4    Common Stock Deferrals and Hypothetical Common Stock
            ----------------------------------------------------
Investment Fund.  If a Participant makes a Compensation Deferral under
---------------
an incentive compensation plan, as described in Section 1.10, which
Compensation would otherwise have been paid in Common Stock, then the
Compensation Deferral will be credited in shares of Common Stock to a
Participant subaccount as described in Sections 1.1 and 5.3 and will
be invested in the Hypothetical Common Stock Investment Fund.  In
addition, Participants may direct investment of Compensation
Deferrals, which would otherwise be paid in cash, to the Hypothetical
Common Stock Investment Fund, as well as any other portion of the
Participant's Account balance.  Such Fund and Compensation Deferrals
deemed to be invested therein will be operated and accounted for in
accordance with the following and such other rules as may be developed
by the Plan Administrator:

     (a)    For record-keeping purposes only, Participant Compensation
Deferral subaccounts shall be maintained in numbers of hypothetical
shares of Common Stock for Compensation Deferrals, or other Account
balances, deemed invested in the Common Stock Investment Fund.

     (b)    In determining the number of hypothetical shares of Common
Stock to be credited to a Participant's Account for each Compensation
Deferral which would otherwise have been paid in cash, as well as
other Account balances directed to the Hypothetical Common Stock Fund,
the number of shares will be determined by dividing the cash amount of
the Compensation Deferral or value of other Account balances directed
to such Fund, by the average of the high and low prices of the
Company's Common Stock on the New York Stock Exchange on the award
date or, for transfers of all or a portion of an Account balance, on
the Valuation Date on which a transfer of existing Account Balance to
the Fund is deemed to have occurred.  With respect to Participants who
make Compensation Deferrals of awards which would otherwise have been
paid in Common Stock, their Accounts will be credited with the number
of shares granted in the award.

     (c)    Any Compensation Deferrals made or Account balances deemed
invested in the Hypothetical Common Stock Investment Fund will earn a
credit on and as of the record date for payment of any dividends
equivalent to any dividend which would have been payable with respect
to the number of hypothetical shares of the Company's Common Stock
which, as of the record date for the dividend, had been credited to
the Participant as though such shares had actually been issued and
outstanding ("Dividend Equivalent").  All such Dividend Equivalents
will be credited to a Participant's Account in cash and will then be
deemed to have been reinvested in Common Stock at the average of the
high and low prices of the Company's Common Stock on the New York
Stock Exchange on the record date.

     (d)    If a stock dividend, stock split, recapitalization, or
other transaction results in a change in the number of outstanding
shares of Common Stock of the Company, the Committee shall make such
adjustment, if any, as may be equitable in the number of shares which
are credited to a Participant's Account.  The determination of the
Committee on these matters shall be final and conclusive and binding
on the Company and all Participants and Inactive Participants.

     (e)    Account balances credited with shares of Common Stock
under the Hypothetical Common Stock Investment Fund will be
distributed in cash at the same time and in the same manner as would
apply to distribution of Accounts under Article VII.

     5.5    Account Valuations.  Participant Accounts will be valued

            ------------------
by the Administrator as of each Valuation Date and the Administrator
shall have the ability to designate interim valuation dates as it
determines appropriate.

     5.6    Unless the context does not allow, all references to
Participants in this Article V shall also refer to Inactive
Participants.

                              ARTICLE VI
              TIME FOR DISTRIBUTION OF ACCOUNT BALANCES
              -----------------------------------------

     6.1    Time for Distribution of Accounts.  At the time a
            ---------------------------------
Participant elects to make a Compensation Deferral under the Plan and
in accordance with procedures prescribed by the Plan Administrator,
the Participant shall elect, with respect to each Compensation
Deferral and all investment return, income, gain or loss credited to
Participant's Account thereon, the date on which payment of such
Compensation Deferral and accumulated investment return thereon shall
commence as well as the manner and method of distribution of such
amounts.  Each Participant must elect to have payment of each such
Compensation Deferral, and associated accumulated investment return,
income, gain or loss thereon, commence upon any one of the following
events: (a) the Participant's attaining Normal Retirement Age, (b) the
Participant's attaining an Early Retirement Age, (c) the Participant's
termination of employment with the Company and all of its Affiliates,
or (d) following expiration of a fixed term of years after the Plan
Year for which a Compensation Deferral is elected.  Such elections
shall, once made, be irrevocable, and may not be altered; provided,
however, that Participants and Inactive Participants shall be
permitted to change the manner in which Compensation Deferrals and
investment return credited thereon to any Subaccount are to be paid
and may elect a different distribution election form as specified
below with respect to the entire amount credited to any Subaccount.

     6.2    Death.  If a Participant or Inactive Participant dies
            -----
before payments from his or her Account commence, his or her
Beneficiary will receive benefits in the form of payment that the
Participant had elected, commencing as soon as practicable after the
Participant's death.  If no election was made for an Account or
portions thereof, the Account will be distributed to the Participant's
Beneficiary in a lump sum.  If a Participant or Inactive Participant
dies after payments for his Account have commenced, his Beneficiary
will receive the unpaid balance of the Account in the same manner in
which the Participant was receiving such amounts.  A Participant or
Inactive Participant may designate a separate Beneficiary for each
separate Compensation Deferral made and associated investment return,
income, gain or loss thereon.  Following a Participant's or Inactive
Participant's death, the Participant's Beneficiary may designate a
successor Beneficiary to receive any remaining payments in the event
of the Beneficiary's death before all payments are made.

     6.3    Disability.  Notwithstanding any distribution or deferral
            ----------
election otherwise made under this Plan, if the employment of a
Participant or Inactive Participant with the Company and its
Affiliates terminates because of disability (as defined in the
Company's long term disability plan applicable to its salaried
employees), the Participant's or Inactive Participant's Account
balance shall be paid as soon as practicable immediately thereafter in
a single sum.

                              ARTICLE VII
              MANNER OF DISTRIBUTION OF ACCOUNT BALANCES
              ------------------------------------------

     7.1    Methods of Distribution of Accounts.  At the time a
            -----------------------------------
Participant elects to make a Compensation Deferral under the Plan, the
Participant shall elect, in accordance with uniform rules developed by
the Plan Administrator, with respect to each Compensation Deferral and
all investment return, income, gain or loss credited to Participant's
Account thereon, the manner and method of distribution of such
amounts.  Participants and Inactive Participants shall be permitted to
change the manner in which Compensation Deferrals and investment
return credited thereon to any Subaccount are to be paid and may
select a different distribution election form as specified below with
respect to the entire amount credited to any Subaccount.  A
Participant must select one of the following forms for payment of each
Compensation Deferral made under this Plan and the investment return,
income, gain or loss credited thereon:

     (a)    A lump sum cash payment to be made not later than sixty
(60) days following the event or date giving rise to the right to
receive a distribution, or

     (b)    In a series of not less than five (5) nor more ten (10)
annual installments to be made commencing not later than sixty (60)
days following the event or date giving rise to the right to receive a
distribution.

     7.2    Distribution in Cash.  All amounts paid under this Plan
            --------------------
with respect to all Account balances, regardless of the nature of the
Hypothetical Investment Fund in which such balances were deemed to be
invested, shall be payable in cash.

     7.3    Valuation of Distributions.  With respect to any Account
            --------------------------
balance and distribution to be paid under this Plan, the value of such
distribution shall be determined as of the Valuation Date coinciding
with or next following the event or date giving rise to the right to
receive a distribution under the Plan has occurred and after all of
the following also have occurred:  (a) the Participant or Inactive
Participant has provided the Plan Administrator such notice of the
distribution, if any, as may be required, (b) the Participant has
tendered such documents as prescribed by the Administrator, (c) the
Plan Administrator has properly processed and approved the
distribution and all necessary accounting and Account valuation
activities have been performed.

                              ARTICLE VIII
                        BENEFICIARY DESIGNATION
                        -----------------------

     8.1    Beneficiary Designation.  Each Participant shall have the
            -----------------------
right, at any time, to designate one or more persons or an entity as
Beneficiary (both primary as well as secondary) to whom benefits under
the Plan shall be paid in the event of the Participant's death prior
to complete distribution of the Participant's Account.  Each
Beneficiary designation shall be in a written form prescribed by the
Administrator and shall be effective only when filed with the Plan
Administrator during the Participant's lifetime.  Participants may,
subject to Administrator consent, designate several Beneficiaries for
each Compensation Deferral Subaccount and associated investment
return, income, gain or loss credited thereto.

     8.2    Changing Beneficiary.  Any Beneficiary designation may be
            --------------------
changed by filing a new designation with the Plan Administrator.  The
filing of a new designation shall cancel all designations previously
filed.

     8.3    Change in Marital Status.  If the Participant's marital
            ------------------------
status changes after the Participant has designated a Beneficiary, the
prior designation shall be void if the former spouse was named as
Beneficiary; however, the prior designation shall remain valid if a
nonspouse beneficiary was named.

    8.4     No Beneficiary Designation.  If any Participant fails to
            --------------------------
designate a Beneficiary in the manner provided above, or if the
designation is void, or if the Beneficiary designated by a deceased
Participant dies before the Participant, the Participant's Beneficiary
shall be the person in the first of the following classes in which
there is a survivor:

     (a)    the surviving spouse;

     (b)    the Participant's surviving children in equal shares; or

     (c)    the Participant's estate.

     A Beneficiary who is receiving benefits after a Participant's
death may designate a successor Beneficiary to receive any remaining
payments in the event of the Beneficiary's death before all payments
are made.  The provisions hereof relating to designation of a
Beneficiary by the Participant shall apply in like manner to the
designation of a successor Beneficiary by a Beneficiary.

     8.5    Unless the context does not allow, all references to
Participant in this Article VIII shall also refer to Inactive
Participant unless otherwise noted.

                              ARTICLE IX
                 AMENDMENT AND TERMINATION OF THE PLAN
                 -------------------------------------

     9.1     Amendment.  The Company may amend the Plan in whole or in
             ---------
part at any time.  The Company expressly reserves the right to amend
the Plan to provide lower rates of investment return, income, gain or
loss in the future than may be currently provided under the Plan.  No
amendment of the Plan, however, may reduce the Account balance of a
Participant or Inactive Participant without the written consent of
that Participant.  The Company, however, may amend the Plan at any
time to accelerate distribution of Account balances as it determines
appropriate.  The Plan may only be amended (or terminated as provided
in Section 9.2 below) by written resolution of the Committee.

     9.2    Company's Right to Terminate.  The Company or Committee,
            ----------------------------
according to the process described above and below, may at any time
partially or completely terminate the Plan.

     (a)    Partial Termination.  The Company may partially terminate
            -------------------
the Plan by not accepting any additional or ongoing deferral
commitments.  In the event of such a partial termination, the Plan
shall continue to operate on the same terms and conditions and, unless
the Company determines not to accept ongoing Compensation Deferral
commitments, shall be effective with regard to Compensation Deferral
commitments entered into prior to the effective date of such partial
termination.

     (b)    Complete Termination.  The Committee may completely
            --------------------
terminate the Plan by resolution.  In the event of complete
termination, the Plan shall cease to operate, and the Company shall
pay out to each Participant or Inactive Participant his remaining
Accounts in one lump sum payment as soon as practicable.

                              ARTICLE X
                            ADMINISTRATION
                            --------------

     10.1   The Committee.  (a) The Board of Directors shall appoint a
            -------------
Committee consisting of one or more members who shall be the Plan
Administrator within the meaning of such term as used in ERISA and
shall be responsible for the administration of the provisions of the
Plan.  In the absence of a contrary designation, the Committee shall
be the Mallinckrodt Inc. Employee Benefits Committee.  The Board of
Directors shall have the right at any time, with or without cause, to
remove any member of the Committee.  A member of the Committee may
resign and his resignation shall be effective upon delivery of the
written resignation to the Board of Directors.  Upon the resignation,
removal or failure or inability for any reason of any member of the
Committee to act hereunder, the Board of Directors shall appoint a
successor member.  Any successor member of the Committee shall have
all the rights, privileges and duties of the predecessor, but shall
not be held accountable for the acts of the predecessor.

     (b)    Any member of the Committee may, but need not, be an
employee, director, officer or shareholder of the Company and such
status shall not disqualify him from taking any action hereunder or
render him accountable for any distribution or other material
advantage received by him under the Plan, provided that no member of
the Committee who is a Participant shall take part in any matter
involving solely his rights under the Plan.

     (c)    The Committee may act at a meeting, or by writing without
a meeting, by the vote or written consent of a majority of its members
or by a vote of the majority of its members in attendance at any
meeting.  The Committee may only act in a meeting at which a quorum
(i.e., at least fifty percent (50%)) of its members are in attendance.
The Committee may select a chairman and shall keep the Company advised
of the identity of the member holding such office.  The Committee
shall appoint one of its members to act as the Plan's agent of legal
process.  The Committee shall select a secretary, who need not be a
member of the Committee, and shall keep the Company advised of the
identity of the person holding such office.  The secretary shall keep
records of all meetings of the Committee and forward all necessary
communications to the Company.

     (d)    The Committee and its successors shall have the
discretion, duty and authority to interpret and construe the Plan in
all respects, including questions involving eligibility, the status
and rights of Participants, Inactive Participants, distributees and
other persons under the Plan, and the manner, time, and amount of
payment of any distribution under the Plan.  The Company shall, from
time to time, upon request of the Committee, furnish to the Committee
such data and information as the Committee shall require in the
performance of its duties.

     (e)    The Committee shall direct the Company to make payments of
amounts to be distributed under the Plan.

     (f)    The members of the Committee may allocate their
responsibilities among themselves and may designate any person,
partnership or corporation to carry out any of their responsibilities
with respect to the administration of the Plan.  Any such allocation
or designation may be reduced to writing and such writing shall be
kept with the records of the Plan.

     (g)    The Committee may adopt such rules and procedures as it
deems desirable for the conduct of its affairs and the administration
of the Plan, provided that any such rules and procedures shall be
consistent with the provisions of the Plan and applicable portions of
ERISA.

     (h)    The Company hereby indemnifies the members of the
Committee, the Plan Administrator, the Board of Directors and the
officers of the Company and each of them from the effects and
consequences of their acts, omissions and conduct in their official
capacity, except to the extent that such effects and consequences
result from their own willful misconduct.

     (i)    The Committee may employ such counsel (who may be of
counsel for the Company) and agents and may arrange for such clerical
and other services as it may require in carrying out the provisions of
the Plan.

     (j)    No member of the Committee shall receive any compensation
or fee for his services, unless otherwise agreed between such member
of the Committee and the Company, but the Company shall reimburse the
Committee members for any necessary expenditures incurred in the
discharge of their duties as Committee members.

     10.2   Plan Administrator.  (a) The Committee may appoint a Plan
            ------------------
Administrator who may but need not be a Participant, director,
officer, or shareholder of the Company, and such status shall not
disqualify him from taking any action hereunder or render him
accountable for any distribution or other material advantage received
by him under the Plan, provided that he shall not take any part in any
action or matter involving solely his rights under the Plan.  In the
absence of a specific designation by the Committee of a Plan
Administrator, the Committee shall be the Plan Administrator.

     (b)    The Plan Administrator shall be responsible for the daily
operation of the Plan within the policies, interpretations and rules
made by the Committee and shall be delegated all of the Committee's
duties and authority, consistent with Committee direction.  The Plan
Administrator shall also perform such ministerial and all other
functions with respect to the Plan as the Committee shall from time to
time designate.  The Plan Administrator may employ such agents as it
may require in carrying out its duties or exercising its powers as
Plan Administrator and may delegate those duties to others as it
determines appropriate.

     (c)    The Plan Administrator shall be authorized to adopt such
rules and procedures, consistent with the policies interpretation and
rules made by the Committee, and to take all other actions necessary
to operate the Plan and to carry out all duties necessary to do so.

     10.3   Claims Procedure.  If any Participant, Inactive
            ----------------
Participant or other person believes he is entitled to benefits in an
amount greater than those which he is receiving or has received or has
any other dispute with respect to the Plan, he may file a claim with
the Plan Administrator.  Such a claim shall be in writing and state
the nature of the claim, the facts supporting the claim, the amount
claimed, and the address of the claimant.  The Plan Administrator
shall review the claim and, unless special circumstances require an
extension of time, within 60 days after receipt of the claim, give
written notice by mail to the claimant of his decision with respect to
the claim.  If special circumstances require an extension of time, the
claimant shall be so advised in writing within the initial 60-day
period and in no event shall such an extension exceed 30 days.  The
notice of the decision of the Plan Administrator with respect to the
claim shall be written in a manner calculated to be understood by the
claimant and, if the claim is wholly or partially denied, set forth
the specific reasons for the denial, specific references to the
pertinent Plan provisions on which the denial is based, a description
of any additional material or information necessary for the claimant
to perfect the claim and an explanation of why such material or
information is necessary, and an explanation of the claim review
procedure under the Plan.  If all or any portion of the claimant's
claim has been denied by the Plan Administrator, the claimant may
request a review by the Committee of the denial by filing with the
Committee, within 60 days after notice of the denial has been received
by the claimant, a written request for such review.  The claimant may
have reasonable access to pertinent documents and submit comments in
writing to the Committee within the same 60-day period.  If a request
is so filed, review of the denial shall be made by the Committee
within, unless special circumstances require an extension of time, 60
days after receipt of such request, and the claimant shall be given
written notice of the Committee's final decision.  If special
circumstances require an extension of time, the claimant shall be so
advised in writing within the initial 60-day period and in no event
shall such an extension exceed 60 days without agreement of claimant.
The notice of the Committee's final decision shall include specific
reasons for the decision and specific references to the pertinent Plan
provisions on which the decision is based.  The Committee's decision
shall be final and binding on all parties.  The claim and appeal
process outlined above shall be the exclusive process for resolution
of claims under the Plan.  If a Participant, Inactive Participant or
claimant fails to use and exhaust such process as described, the
claimant, Inactive Participant or Participant shall be barred from
further contesting the matter and actions of the Plan Administrator.

     10.4   Small Benefits.  Notwithstanding any election made by a
            --------------
Participant, the Committee, in its sole discretion, may pay any
Account balance whose value at the time payments are to commence is
Five Thousand Dollars ($5,000) or less in the form of a lump sum
payment to a Participant or Inactive Participant upon such terms and
conditions as the Committee may determine.

     10.5   Unsecured General Creditor.  (a) The Company shall be
            --------------------------
responsible for payment of benefits under this Plan except as provided
in (b) below.  Participants, Inactive Participants, and their
Beneficiaries, heirs, successors and assigns shall have no legal or
equitable rights, interests or claims in any property or assets of the
Company or its Affiliates, nor shall they be beneficiaries of, or have
any rights, claims or interests in any life insurance policies, or the
proceeds therefrom owned or which may be acquired by the Company or
its Affiliates ("Policies").  Such Policies or other assets of the
Company or its Affiliates shall not be required to be held under any
trust for the benefit of Participants, Inactive Participants, their
Beneficiaries, heirs, successors or assigns, or held in any way as
collateral security for the fulfilling of the obligations of the
Company under the Plan.  Any and all of the Company's and its
Affiliates' assets and Policies shall be, and remain, the general,
unpledged, unrestricted assets of the Company.  The Company's
obligation under the Plan shall be merely that of an unfunded and
unsecured promise of the Company to pay money in the future.

     (b)    Notwithstanding the foregoing and in its discretion, the
Company may establish one or more trusts, with such Trustees as the
Committee may approve, for the purpose of providing for the payment of
such benefits.  Such trust or trusts may be irrevocable, but he assets
thereof ultimately shall be subject to the claims of the Company's
creditors.  To the extent any benefits provided under the Plan are
actually paid from any such Trust, the Company and Plan shall have no
further obligation with respect thereto, but to the extent not so
paid, such benefits shall remain the obligation of, and shall be paid
by, the Company.

     10.6   Nonassignability.  Neither a Participant nor any other
            ----------------
person shall have any right to sell, assign, transfer, pledge,
anticipate, mortgage or otherwise encumber, transfer, hypothecate or
convey in advance of actual receipt the amounts, if any, payable
hereunder, or any part thereof, which are, and all rights to which
are, expressly declared to be unassignable and non-transferable.  No
part of the amounts payable shall, prior to actual payment, be subject
to seizure or sequestration for the payment of any debts, judgments,
alimony or separate maintenance owed by a Participant or Inactive
Participant or any other person, nor be transferable by operation of
law in the event of a Participant's or any other person's bankruptcy
or insolvency.  Notwithstanding the foregoing, the balance to the
credit of any Participant or Inactive Participant in this Plan may be
attached by the Company to satisfy the debts of any Participant or
Inactive Participant owed to the Company or any of its Affiliates.

     10.7   Not a Contract of Employment.  The terms and conditions of
            ----------------------------
the Plan shall not be deemed to constitute a contract of employment
between the Company and any Participant or Inactive Participant, and
neither a Participant, Inactive Participant nor any Beneficiary shall
have any rights against the Company, Committee or the Plan
Administrator or Committee except as may be specifically provided in
the Plan.  Moreover, nothing in the Plan shall be deemed to give a
Participant the right to be retained in the service of the Company or
to interfere with the right of the Company to discipline or discharge
the Participant at any time.

     10.8   Protective Provisions.  Participants and Inactive
            ---------------------
Participants shall cooperate with the Company by furnishing any and
all information requested by the Company or Plan Administrator in
order to facilitate the payment of benefits hereunder, and by taking
such physical examinations as the Company may deem necessary and
taking such other action as may be requested by the Company or Plan
Administrator.

     10.9   Withholding of Taxes.  To the extent required by the law
            --------------------
in effect at the time payments are made or made available by the
Company, the Company shall withhold from the payments made hereunder
the minimum taxes required to be withheld by the federal or any state
or local government.  The Company may also withhold from payments to
be made to any Beneficiary hereunder any amounts which the Company
determines are reasonably necessary to pay any generation-skipping
transfer tax which is or may become due.

     10.10  Payment to Guardian.  If a distribution is payable to a
            -------------------
minor or a person declared incompetent or to a person incapable of
handling the disposition of property, the Plan Administrator may
direct payment to the guardian, legal representative or person having
the care and custody of such minor, incompetent or person.  The Plan
Administrator may require proof of incompetency, minority, incapacity,
or guardianship as it may deem appropriate prior to distribution.
Such distribution shall completely discharge the Plan and Company from
all liability with respect to such benefit.

     10.11  Ineligible Participant.  Notwithstanding any other
            ----------------------
provisions of this Plan to the contrary, if any Participant or
Inactive Participant is determined by the Committee not to be a
"management or highly compensated employee" within the meaning of
ERISA or regulations thereunder, such Participant or Inactive
Participant will not be eligible to participate in this Plan and shall
receive an immediate lump sum payment equal to the vested portion of
the amounts standing credited to his Accounts.  Upon such payment, no
survivor benefit or other benefit shall thereafter be payable under
this Plan either to the Participant or any Beneficiary of the
Participant.

     10.12  Governing Law.  The provisions of this Plan shall be
            -------------
construed and interpreted according to the laws of the State of
Missouri, without reference to its conflict of laws principles, except
to the extent preempted by ERISA.

     10.13  Recovery of Overpayments.  If a Participant or Inactive
            ------------------------
Participant receives a benefit payment which is determined by the
Administrator to be erroneous or an overpayment, the Participant or
Inactive Participant receiving the payment will be obligated to return
the overpayment upon demand.

     10.14  Notice.  Any notice or filing required or permitted to be
            ------
given to the Committee under the Plan shall be sufficient if in
writing and hand delivered, or sent by mail, to the Secretary of the
Corporation.  Such notice shall be deemed given as of the date of
delivery or, if delivery is made by mail, as of the date shown on the
postmark on the receipt for registration or certification.

     10.15  Successors.  The provisions of the Plan shall bind and
            ----------
inure to the benefit of the Company and its successors and assigns.
The term successors as used herein shall include any corporate or
other business entity which shall, whether by merger, consolidation,
purchase or otherwise, acquire all or substantially all of the
business and assets of the Company, and successors of any such
corporation or other business entity.

     Executed this 8th day of December, 1999.
                  ----        --------------

                                MALLINCKRODT INC

                                By:/s/ Bruce K. Crockett
                                   ---------------------

                                Its: Vice President,
                                     Human Resourcescompplan

CPAC, INC.

 

NONQUALIFIED DEFERRED COMPENSATION PLAN

Effective January 1, 2000

 

<PAGE 19>

CPAC, INC.

NONQUALIFIED DEFERRED COMPENSATION PLAN

 

TABLE OF CONTENTS

 

	

	
	
Page

	
INTRODUCTION
	
	
4

	
ARTICLE 1. 
	
ESTABLISHMENT AND PURPOSE
	

	
Section 1.1
	
Establishment ......................................................
	
4

	
Section 1.2
	
Purpose ............................................................
	
4

	
 

ARTICLE 2.
	
 

DEFINITIONS
	
 

 

	
Section 2.1
	
Definitions ...........................................................
	
4-6

	
Section 2.2
	
Gender and Number................................................
	
6

	
 

ARTICLE 3. 
	
 

ELIGIBILITY AND PARTICIPATION
	

	
Section 3.1
	
Eligible Employee .................................................
	
6

	
Section 3.2
	
New Eligible Employees ........................................
	
7

	
Section 3.3
	
Limitation on Eligible Employees ...............................
	
7

	
Section 3.4
	
Removal from Participation as an Eligible Employee........
	
7

	
 

ARTICLE 4. 
	
 

DEFERRAL ELECTIONS
	

	
Section 4.1
	
Eligible Employee Contributions ................................
	
7

	
Section 4.2
	
Submission of Deferral Election Forms .......................
	
7

	
Section 4.3
	
Failure to Submit Deferral Elections ...........................
	
7

	
Section 4.4
	
Modification of Deferral Elections ...............................
	
7-8

	
Section 4.5
	
Nullification of Deferral Elections .................................
	
8

	
 

ARTICLE 5. 
	
 

EMPLOYER CONTRIBUTIONS
	

	
Section 5.1
	
Discretionary Contributions ........................................
	
8

	
 

ARTICLE 6. 
	
 

FORFEITABILITY
	

	
Section 6.1
	
Vesting for Deferrals of Compensation ........................
	
8

	
Section 6.2
	
Accounts of Eligible Employees .................................
	
8

	
Section 6.3 
	
Responsibility for Payments When Company is Insolvent
	
8-10

	
 

ARTICLE 7.
	
 

<PAGE 20>

STATUS OF DEFERRED AMOUNTS 
	

	
Section 7.1
	
Account ...........................................................
	
10

	
Section 7.2
	
Report of Account Balance .....................................
	
10

	
Section 7.3
	
Treatment under Other Employee Benefit Plans ...........
	
10

	
 

ARTICLE 8. 
	
 

DISTRIBUTIONS
	

	
Section 8.1
	
Form and Timing of Distributions ............................
	
10-11

	
Section 8.2
	
Form of Distribution ............................................
	
11

	
Section 8.3
	
Designation of Beneficiary ....................................
	
11

	
Section 8.4
	
Claims Procedure .............................................
	
11

	
Section 8.5
	
Excise Tax .....................................................
	
11

	
Section 8.6
	
Emergency Withdrawals From the Plan .........................
	
12

	
 

ARTICLE 9.
	
 

PROVISIONS RELATING TO PARTICIPATION
	

	
Section 9.1
	
Extent of Rights Under Plan ..................................
	
12

	
Section 9.2
	
Funding ........................................................
	
13

	
Section 9.3
	
Extent to Which Other Parties Bound by Plan ..............
	
13

	
Section 9.4
	
Payment of Taxes .............................................
	
13

	
Section 9.5
	
Status as Unsecured Creditor .................................
	
13

	
Section 9.6
	
Unfunded Plan ................................................
	
13

	
 

ARTICLE 10.
	
 

ADMINISTRATION AND FINANCES
	

	
Section 10.1
	
Administration .................................................
	
13

	
Section 10.2
	
Powers of Committee .........................................
	
13

	
Section 10.3
	
Actions of the Committee .......................................
	
14

	
Section 10.4
	
Delegation ........................................................
	
14

	
Section 10.5
	
Changes by Committee ......................................
	
14

	
Section 10.6
	
Advisors........................................................................
	
14

	
Section 10.7
	
Indemnification ..................................................
	
14

	
Section 10.8
	
Reports and Records ........................................
	
14

	
 

ARTICLE 11.
	
 

AMENDMENTS AND TERMINATION
	

	
Section 11.1
	
Amendments ....................................................
	
15

	
Section 11.2
	
Termination ....................................................
	
15

	
 

ARTICLE 12.
	
 

MISCELLANEOUS
	

	
Section 12.1
	
No Guaranty of Employment ...................................
	
15

	
Section 12.2
	
Non-Alienation ................................................
	
15

	
Section 12.3
	
Applicable Law ...............................................
	
15

<PAGE 21>

 

CPAC, INC.

 

NONQUALIFIED DEFERRED COMPENSATION PLAN

 

Effective January 1, 2000

 

     ADOPTION OF NONQUALIFIED DEFERRED COMPENSATION PLAN by CPAC, INC. (the "Employer").

INTRODUCTION

 

     The Employer desires to adopt the CPAC, Inc. Nonqualified Deferred Compensation Plan (the "Plan"), effective January 1, 2000, to provide certain eligible employees the opportunity to defer a portion of their compensation. In
accordance with the foregoing, the Employer hereby adopts the Plan, to read as set forth in this document, effective January 1, 2000.

ARTICLE 1. ESTABLISHMENT AND PURPOSE

     Section 1.1   Establishment. CPAC, Inc. (the "Employer") establishes, effective as of January 1, 2000, this Nonqualified Deferred Compensation Plan for the benefit of a select group of management or highly
compensated employees of the Employer. The plan shall be known as the CPAC, Inc. Nonqualified Deferred Compensation Plan (the "Plan").

     Section 1.2   Purpose. The purpose of the Plan is to enhance the ability of the Employer to attract and retain qualified personnel by providing Eligible Employees with (a) the opportunity to defer a portion of
their Compensation and (b) additional retirement income by means of Employer contributions, as determined by the Employer. It is intended that the Plan is an unfunded nonqualified deferred compensation, ("Top Hat"), plan for income tax purposes and within
the meaning of Sections 201(a), 301(a)(3) and 401(a)(1) for purposes of Title I of ERISA.

ARTICLE 2. DEFINITIONS

     Section 2.1    Definitions. Whenever used in this Plan, the following words and phrases shall have the meanings set forth below unless the text clearly indicates or the context plainly requires a different
meaning. When the defined meaning is intended, the term is capitalized. All references to sections or articles herein pertain to sections or articles of the Plan unless otherwise indicated by the text or context.
     (a) "Board of Directors" means the Board of Directors of the Employer. To the extent permitted by the Bylaws of the Employer or authorized by the Board of Directors, action may be taken by a designated officer
or group of officers of the Employer.

<PAGE 22>

 

     (b) "Account" means the Deferred Compensation account for each Eligible Employee established on the books of the Employer pursuant to Section 7.1, including any investment earnings credited to the Account.

     (c) "Code" means the Internal Revenue Code of 1986, as amended from time to time.

     (d) "Committee" means the Compensation Committee of the Company's Board of Directors or such other person or committee as may be appointed from time to time by the Board of Directors. The Committee may appoint
one or more individuals to carry out the day to day operations of the Plan, including general plan administration and recordkeeping. The Committee may also appoint one or more investment managers to hold the Plan's assets and to execute investment
decisions made by Eligible Employees with respect to their individual Accounts.

     (e) "Compensation" means the total wages of an Eligible Employee from the Employer, including wage amounts which if not deferred pursuant to this Plan would be reported on the Internal Revenue Service Form W-2
filed by the Employer for a Plan Year, but excluding any Employer Contributions under this Plan which are deferred pursuant to this Plan and excluding any contributions by the Employer or the Eligible Employee under the CPAC, Inc. 401(k) Savings Plan.

     (f) "Deferral Election" means the form designated by the Committee from time to time for use by Eligible Employees to elect to make deferrals of Compensation for a Plan Year under Article 4 and to defer Employer
Contributions for the Plan Year under Article 5. This form may be changed at any time and from time to time by the Committee.

     (g) "Deferred Compensation" means the amount of Compensation not yet earned, as designated in the Deferral Election, which the Eligible Employee and the Employer mutually agree shall be deferred in accordance
with the provisions of the Plan, and the amount of Employer Contributions which shall be deferred in accordance with the terms of the Plan.

     (h)      "Distribution Date" for a Plan Year means any of the dates specified in Section 8.1 hereof.

     (i)       "Distribution Election" means the form designated by the Committee from time to time for use by Eligible Employees to make elections as to the timing of distributions of
funds under Article 8. This form may be changed at any time and from time to time by the Committee.

     (j) "Effective Date" means the date on which the Plan became effective.

<PAGE 23>

 

     (k) "Eligible Employee" means those employees of the Employer as determined under Section 3.1.

     (l) "Employer" means CPAC, Inc. or any successor thereof, provided, however, that for purposes of making contributions to the Plan but not for any other purpose, including, but not limited to, adoption,
administration or operation of the Plan, the term "Employer" shall include any other corporation which is part of a controlled group with CPAC, Inc. within the meaning of Section 414(b) or Section 414(c) of the Code and whose employees are eligible to
participate in the CPAC, Inc. 401(k) Savings Plan.

     (m) "Employer Contribution" means the Employer contributions described in Article 5.

     (n) "Plan" means the CPAC, Inc. Nonqualified Deferred Compensation Plan.

     (o)       "Plan Year" means each twelve-month period ending December 31. 

 

     Section 2.2   Gender and Number. Except as otherwise indicated by context, masculine terminology also includes the feminine, and terms used in the singular may also include the plural.

ARTICLE 3. ELIGIBILITY AND PARTICIPATION

     Section 3.1    Eligible Employee. An Eligible Employee shall be any employee of the Employer who is actively employed and performs duties on or after January 1, 2000, who is either: 

                (a.)   eligible for the annual incentive plan at the 30% incentive opportunity level or above, or

                (b)   classified by the Employer as a "Sales Manager" or above,

and who in either case, is deemed to be in a select group of "management" approved by the Committee, and who meets the eligibility requirements of the CPAC, Inc. 401(k) Savings Plan. For this purpose, an Eligible Employee shall not include any
individual who performs no duties after December 31, 1999, whether or not such individual is paid or entitled to payment of Compensation or any other amount after December 31, 1999, including, but not limited to, any individual who is receiving notice pay
or similar payments in connection with the anticipated termination of such individual's employment. An Eligible Employee shall not be eligible to participate in this Plan unless the Eligible Employee participates in the CPAC, Inc. 401(k) Savings Plan by
making contributions thereunder. An Eligible Employee shall be eligible to participate under this Plan as of the first day of the Plan Year after he first becomes such an Eligible Employee.

<PAGE 24>

 

     Section 3.2   New Eligible Employees. Not withstanding Section 3.1, the Board of Directors or the Committee may select additional employees as Eligible Employees, and they shall become Eligible Employees under
this Plan on a prospective basis as of the first day of the Plan Year after such selection.

     Section 3.3    Limitation on Eligible Employees. The Committee, in its sole discretion, may change the requirements necessary for qualification as an Eligible Employee. Any such change shall be effective
for the following Plan Year, as designated by the Committee.

     Section 3.4    Removal from Participation as an Eligible Employee. The Committee may remove an Eligible Employee from participating in this Plan on a prospective basis for any reason.

ARTICLE 4. DEFERRAL ELECTIONS

     Section 4.1    Eligible Employee Contributions. No less than 1 day before the beginning of a Plan Year, each Eligible Employee who is permitted to defer Compensation under the Plan may elect to reduce the
amount of his or her Compensation which would thereafter otherwise be earned and payable in such Plan Year. The Deferral Election with respect to an Eligible Employee's Compensation must be made in 1% increments above $80,000 of salary, and must be made
in 1% increments of Incentive Compensation or bonus, subject to a total contribution dollar limit of $50,000 per year. Such election shall be prospective, shall be effective as of the first day of the month after the month in which the election is made,
and shall apply only to Compensation earned after the effective date of the election.

     Section 4.2    Submission of Deferral Election Forms. Each Eligible Employee who wishes to participate in the Plan for a Plan Year must submit a properly completed and executed Deferral Election to the
Committee no less than 1 day before the Plan Year to which such Deferral Election applies or no less than 1 day before the month with respect to which the Eligible Employee wishes to begin deferring amounts pursuant to a Deferral Election which is filed
during a Plan Year under Section 4.1. An Eligible Employee must make a new Deferral Election for each Plan Year as to which he or she wishes to defer Compensation and Employer Contributions.

     Section 4.3    Failure to Submit Deferral Elections. If an Eligible Employee fails to submit a properly completed and executed Deferral Election for a Plan Year as required by Section 4.2, he or she will
be deemed to have elected not to defer Compensation and Employer Contributions for the Plan Year to which such form otherwise would apply.

     Section 4.4    Modification of Deferral Elections. Each Deferral Election made or deemed to be made under the Plan may be reduced or revoked with respect to the amount of Compensation to be deferred during
the Plan Year by completing and filing a new Deferral Election Form. A new Deferral Election Form may only reduce the amount of Compensation that will be deferred for subsequent months in the Plan Year; provided 

<PAGE 25>

 

that any such reduction or revocation shall take effect as of the first day of the month which is at least 1 day after a properly completed and executed modified Deferral Election is submitted to the Committee. 

     Section 4.5    Nullification of Deferral Elections. Notwithstanding the submission of Deferral Elections pursuant to this Article, the Committee may nullify such Deferral Elections because of changes in
tax laws or interpretation thereunder, as determined by the Committee in its sole discretion.

ARTICLE 5. EMPLOYER CONTRIBUTIONS

     Section 5.1    Discretionary Contributions. The Employer, in its discretion, may make discretionary Employer Contributions to the extent determined by the Employer. The amount of any discretionary Employer
Contribution for a Plan Year shall be communicated to all Eligible Employees prior to March 15 of such Plan Year. The Employer, in its discretion, may increase or decrease the rate of discretionary Employer Contributions (or eliminate discretionary
Employer Contributions) from year to year by advising Eligible Employees prior to the first day of the applicable Plan Year. Such Employer Contribution (a) shall be treated as deferred amounts under Article 7; and, (b) shall be allocated among the
Eligible Employees on the basis determined by the Employer. 

ARTICLE 6. FORFEITABILITY

     Section 6.1    Vesting for Deferrals of Compensation. Except as provided in this Article, all amounts credited to an Eligible Employee's Account that relate to Compensation which the Eligible Employee
elected to defer under the Plan pursuant to Article 4 and that relate to matching Employer Contributions deferred under the Plan pursuant to Section 5.1 are fully vested and nonforfeitable.

     Section 6.2    Accounts of Eligible Employees. The Accounts of Eligible Employees and any earnings thereon, shall be held separate and apart from other funds of the Company and shall be used exclusively
for the uses and purposes of the Eligible Employees and/or their beneficiaries, as the case may be, and/or general creditors of the Company, as the case may be, as herein set forth. The Eligible Employees and/or their beneficiaries shall have no preferred
claim on, or any beneficial ownership interest in, any assets contained in their Accounts. Any rights created under the Plan shall be mere unsecured contractual rights of the Eligible Employees and/or their beneficiaries, as the case may be, against the
Company. Any assets held in Eligible Employees Accounts will be subject to the claims of the Company's general creditors under federal and state law in the event of Insolvency, as defined herein. 

     Section 6.3     Responsibility Regarding Payments When Company is Insolvent.

(a.)     The Employer shall cease payment of benefits to the Eligible Employees and/or their beneficiaries, as the case may be, if the Company is Insolvent. The Company shall be considered "Insolvent" for purposes of this Plan if
(i) the Company is unable to pay its 

<PAGE 26>

 

debts as they become due, or (ii) the Company is subject to a pending proceeding as a debtor under the United States Bankruptcy Code.

(b.)      At all times during the continuance of this Plan the assets and income of Eligible Employees Accounts shall be subject to claims of general creditors of the Company under federal and state law and the Committees'
responsibility regarding a determination of Insolvency and payment of benefits shall be governed by the following procedures: 

	The Board of Directors and the Chief Executive Officer of the Company shall have the duty to inform the Committee in writing of the Company's Insolvency. If a person claiming to be a creditor of the Company alleges in writing to the Committee that the
Company has become Insolvent, the Committee shall determine whether the Company is Insolvent and, pending such determination, the Committee shall discontinue payment of benefits to the Eligible Employees and/or their beneficiaries, as the case may be.
	Unless the Committee shall have actual knowledge of the Company's Insolvency or have written notice from the Company or a person claiming to be a creditor alleging in writing, that the Company is Insolvent, the Committee shall have no duty to inquire
whether the Company is Insolvent. The Committee may, in all events, rely on such evidence concerning the Company's solvency as may be furnished to the Committee and that provides the Committee with a reasonable basis for making a determination concerning
the Company's solvency.
	If, at any time, the Committee has determined that the Company is Insolvent, the Committee shall discontinue payments to Eligible Employees and/or their beneficiaries, as the case may be, and shall hold the assets of the Eligible Employees Accounts
for the benefit of the Company's general creditors. Nothing in this Plan shall in any way diminish any rights of the Eligible Employees and/or their beneficiaries, as the case may be, to pursue their rights as general creditors of the Company with respect
to benefits due under this Plan or otherwise.
	The Committee shall resume payment of benefits to the Eligible Employees and/or their beneficiaries, as the case may be, only after the Committee has determined that the Company is not Insolvent (or is no longer Insolvent).

(c)     Provided that there are sufficient assets, if the Committee discontinues the payment of benefits from the Eligible Employees Accounts and subsequently resumes such payments, the first payment following such discontinuance
shall include the aggregate amount of all payments due to the Eligible Employees and/or their beneficiaries, as the case may be, under the terms of the Plan for the period of such discontinuance, less the aggregate amount of any payments made to Eligible
Employees 

<PAGE 27>

 

and/or their beneficiaries, as the case may be, by the Company in lieu of the payments provided hereunder during any period of discontinuance. 

ARTICLE 7. STATUS OF DEFERRED AMOUNTS

     Section 7.1    Account. The Employer shall establish an Account for each Eligible Employee, with sub-accounts for deferrals of Compensation and Employer Contributions for which a Deferral Election has been
made. The Eligible Employee's Deferred Compensation for a Plan Year shall be credited to the Account of the Eligible Employee, in the case of deferrals of Compensation, on the last day of the calendar month in which it otherwise would have been payable to
the Eligible Employee if he or she had not made the Deferral Election, or in the case of Employer Discretionary Contributions, no later than March 15 of the Plan Year. 

     Section 7.2    Report of Account Balance. The Committee shall advise each Eligible Employee of the balance in his or her Account including each sub-account on a quarterly basis on dates to be determined by
the Committee.

     Section 7.3    Treatment under Other Employee Benefit Plans. It is intended that the amounts deferred by an Eligible Employee under Article 4 and Article 5 shall at the earliest time permitted by
applicable law be included in determining benefits under any pay-related employee benefit plans of the Employer, as well as under any tax-qualified retirement plans (to the extent permitted in such plans), except to the extent that such inclusion in any
such pay-related or tax-qualified plan would adversely affect the tax-favored status of that plan.

ARTICLE 8. DISTRIBUTIONS

     Section 8.1    Timing of Distributions. An Eligible Employee's vested Account balance shall be paid by the Employer to the Eligible Employee, or in the event of his or her death the full amount of the
Account balance shall be paid to the Eligible Employee's beneficiary or beneficiaries, after the first to occur of the following events:
(a.)     a change in control of the Company, which for purposes of this Plan shall generally include a change in the ownership or effective control of the Company or in the ownership of a substantial portion of the assets
of the Company and its subsidiaries. Specifically, the term shall include (i) the purchase or other acquisition by any person, entity or group of persons, within the meaning of Section 13(d) or 14(d) of the Securities Exchange Act of 1934, or any
comparable successor provisions, of the beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Act) of twenty percent (20%) or more of either the outstanding shares of common stock or the combined voting power of the Company's then
outstanding voting securities entitled to vote generally, or (ii) the approval by the shareholders of the Company of a reorganization, merger, or consolidation with respect to which, in each case, persons who were shareholders of the Company immediately
prior to such reorganization,

<PAGE 28>

merger, or consolidation do not immediately thereafter, own more than fifty percent (50%) of either the outstanding shares of common stock or the combined voting power of the reorganized, merged or consolidated Company's then outstanding
voting securities entitled to vote generally or (iii) the liquidation and/or dissolution of the Company.

(b) the termination of the Eligible Employee's employment with the Employer for any reason; or

(c)the Eligible Employee's death.

     Section 8.2    Form and amount of Distributions. An Eligible Employee shall designate on his or her Distribution Election Form filed with the Committee with respect to the first Plan Year, the form of the
Distribution to be made to such Eligible Employee and/or his or her beneficiary. Such designation may not be changed during the Plan Year for which it has been made, but may be changed prior to the first day of each subsequent plan year by the filing of a
new Distribution Election Form. If the amount of total vested benefit in an eligible Employee's account is $10,000 or less at date of Distribution, the Committee reserves the right to cash out and distribute the full amount of the account balance for the
Eligible Employee, without regard to five year or ten year Distribution Elections previously made by such employee. 

      Section 8.3    Designation of Beneficiary. Each Eligible Employee must designate at least one individual or other entity as a beneficiary of the Eligible Employee's account balance in the event of
the Eligible Employee's death. The Eligible Employee may also designate one or more contingent beneficiaries. These designations must be made on a properly completed and executed beneficiary designation form and must be filed with the Committee. This form
may be changed at any time and from time to time by the Committee. If a designated beneficiary does not survive the Eligible Employee, then the beneficiary shall be the Eligible Employee's estate.

     Section 8.4    Claims Procedure. The Committee shall in writing notify any Eligible Employee or beneficiary whose claim for benefits under the Plan has been denied, either wholly or in part, setting forth
the specific reasons for the denial in a manner calculated to be understood by the Eligible Employee or beneficiary. The notice shall be furnished to the Eligible Employee or beneficiary within 60 days of the denial and shall provide that, within 60 days
after receiving the notice, the Eligible Employee or beneficiary may apply to the Committee for a full and fair review of the decision denying the claim. All decisions on review shall be final.

     Section 8.5    Excise Tax. To the extent any payment under the Plan would be subject to the tax (the "Excise Tax") imposed by Section 4999 of the Code (or any similar tax that may hereafter be imposed)
because it would constitute an "excess parachute payment" as defined in Section 280G(b) of the Code, the amount of the payment shall be reduced by such amount as shall be necessary to avoid the imposition of the Excise Tax.

<PAGE 29>

 

     Section 8.6    Emergency Withdrawals From the Plan.

     (a.)    Notification of Committee. If a participating Eligible Employee suffers an unforeseeable Emergency and wishes to receive an Emergency Withdrawal from the Plan, the participating Eligible Employee
shall notify the Committee in writing of the occurrence of the Unforeseeable Emergency. The participating Eligible Employee shall provide a description of the Unforeseeable Emergency and a description of his or her assets (including an indication of the
extent to which the liquidation of each asset would cause a severe financial hardship, if applicable). The participating Eligible Employee shall also indicate whether he or she will be reimbursed or compensated by insurance or otherwise.

     (b.)    Committee Determination. Within ninety (90) days after the Committee's receipt of a notification pursuant to Section 8.6(a.), the Committee shall determine, in its sole discretion, whether the
participating Eligible Employee has suffered an Unforeseeable Emergency and, if so, the amount, if any, to be distributed to the Participant as an Emergency Withdrawal as a result of such Unforeseeable Emergency. An Emergency Withdrawal may not be made to
the extent that the Participant's severe financial hardship resulting from the Unforeseeable Emergency is or may be relieved (i) through reimbursement or compensation by insurance or otherwise, (ii) by liquidation of the Participant's assets, to the
extent liquidation of such assets would not itself cause severe financial hardship, or (iii) by cessation of Contributions under this Plan as may be approved by the Committee, in its sole discretion.

     (c. )    Effect of Emergency Withdrawals. The Accrued Balance in a participating Eligible Employees Account shall be reduced by the amount of any Emergency Withdrawals distributed to the participating
Eligible Employee. The Committee, in its sole discretion, shall determine which of the participating Eligible Employees sub-accounts shall be so reduced. In making such determination, the Committee may, but is not required to, take into account the
participating Eligible Employees preferences as to which of the participating Eligible Employees sub-accounts should be reduced.

     (d.)    Unforeseeable Emergency. For purposes of this Plan, an Unforeseeable Emergency is an unanticipated emergency that is caused by an event beyond the control of the participating Eligible Employee or
his or her beneficiary, as the case may be, and that would result in severe financial hardship to the participating Eligible Employee or his or her beneficiary, as the case may be, if an Emergency Withdrawal were not permitted. Any Emergency Withdrawal
approved by the Committee shall be limited to the amount necessary to meet such Unforeseeable Emergency.

ARTICLE 9. PROVISIONS RELATING TO PARTICIPATION

     Section 9.1    Extent of Rights Under Plan. Except as to amounts actually distributed under the Plan, no Eligible Employee and no person claiming under or through an Eligible Employee shall have any right
or interest, whether vested or otherwise, in this Plan or in the continuance of the Plan.

<PAGE 30>

 

     Section 9.2    Funding. No current or former Eligible Employee, beneficiary or other person, individually or as a member of a group, shall have any right, title or interest in or to any account, any fund,
any specific sum of money, or in any asset which may be acquired by the Employer in respect of its obligations under this Plan (other than as a general creditor of the Employer with an unsecured claim against the Employer's general assets).

     Section 9.3    Extent to Which Other Parties Bound by Plan. The Plan shall be binding upon, and shall inure to the benefit of, the Employer and its successors and assigns, and the participating Eligible
Employees and their heirs, Committee and personal representatives.

     Section 9.4    Payment of Taxes. The Employer is required by law to withhold Federal, state and local taxes (including but not limited to income taxes and taxes under the Federal Insurance Contributions
Act, if applicable) with respect to distributions from the Plan. Depending upon the timing of the withholding requirement, the Employer may withhold such taxes from other Compensation payable to the Eligible Employee. 

     Section 9.5    Status as Unsecured Creditor. Eligible Employees and/or their beneficiaries under this Plan are unsecured creditors of the Company and this Plan of deferred compensation constitutes a mere
unsecured promise by the Company to pay compensation as set forth herein.

     Section 9.6    Unfunded Plan. Notwithstanding the creation of Accounts for the benefit of Eligible Employees to provide a source of funds for the Company to meet its obligations herein, it is the intention
of the Employer that the Plan of deferred compensation created hereunder shall constitute an unfunded deferred compensation arrangement for purposes of Title I of the Employee Income Security Act of 1974 ("ERISA").

ARTICLE 10. ADMINISTRATION AND FINANCES

     Section 10.1    Administration. The Plan shall be administered by the Committee.

     Section 10.2    Powers of Committee. The Committee shall have all powers necessary to administer the Plan, including, without limitation, the power to interpret the provisions of the Plan, to resolve any
ambiguity or inconsistency, to decide all questions of eligibility, to establish rules and forms for the administration of the Plan, and to appoint or remove individuals to assist in the administration of the Plan and any other agents it deems advisable.
The determination of a majority of the Committee members shall constitute the determination of the Committee. However, if a member of the Committee is also an Eligible Employee, such member shall abstain from any Committee determination affecting his or
her participation in the Plan, and the determination of a majority of the other members of the Committee (or, of all of the other members of the Committee if the Committee consists of three or fewer members) shall constitute the determination of the
Committee with respect to any determination affecting a Committee member who is also an Eligible Employee.

<PAGE 31>

 

     Section 10.3    Actions of the Committee. All determinations, interpretations, rules, and decisions of the Committee shall be conclusive and binding upon all persons having or claiming to have any interest
or right under the Plan.

     Section 10.4    Delegation. The Committee shall have the power to delegate specific duties and responsibilities to officers or other employees of the Employer or to other individuals or entities, including
the power to delegate the responsibility to hold and administer the assets and income of Eligible Employee Accounts with one or more investment managers, banks, or trust companies. Any such delegation may be rescinded by the Committee at any time. Except
as otherwise required by law, each person or entity to whom a duty or responsibility has been delegated shall be responsible for the exercise of such duty or responsibility and shall not be responsible for any act or failure to act of any other person or
entity.

     Section 10.5    Changes by Committee. If the Committee determines that the Plan may fail to satisfy at any time any legal requirements imposed by the Code, ERISA or any other applicable law, the Committee
may or shall take such action as the Committee deems appropriate in an effort to assure compliance with such law. Such action may include, without limitation, a modification of Deferral Elections by Eligible Employees with or without the consent of such
Eligible Employees.

     Section 10.6    Advisors. The Committee may employ one or more accountants, legal counsel and other experts as it shall deem necessary or appropriate to effectively control and manage the operation and
administration of the Plan. The fees and expenses of any such expert shall be paid by the Employer.

     Section 10.7    Indemnification. The Committee (whether or not an employee of the Employer), and the Board of Directors shall be indemnified by the Employer against any and all liabilities arising by
reason of any act or failure to act made in good faith in accordance with the provisions of the Plan. For this purpose, liabilities include expenses reasonably incurred in the defense of any claim relating to the Plan. All investment decisions with
respect to the assets and income of Eligible Employee Accounts shall be made solely by participating Eligible Employees and neither the Employer, the Committee, or any individual or entity to which the Committee has delegated responsibility under the
Plan, shall be responsible or liable to any participating Eligible Employee for such investment decisions and/or for any omission to make investment decisions with respect to any participating Eligible Employee Account.

     Section 10.8    Reports and Records. The Committee and those to whom the Committee has delegated duties under the Plan shall keep records of all their proceedings and actions and shall maintain books of
account, records, and other data as shall be necessary for the proper administration of the Plan and for compliance with applicable law.

<PAGE 32>

 

ARTICLE 11. AMENDMENTS AND TERMINATION

     Section 11.1    Amendments. The Board of Directors may amend, modify, or revise the Plan, in full or in part, at any time; provided, however, that no such amendment, modification, or revision shall affect,
reduce, or eliminate an Eligible Employee's right to receive his or her vested Account balance as of the date of such amendment in accordance with the terms of this Plan.

     Section 11.2    Termination. The Employer reserves the right to terminate the Plan at any time for any reason. Upon termination of the Plan, any Compensation payable to an Eligible Employee after the
Plan's termination date shall not be reduced pursuant to the Eligible Employee's Deferral Election. In such event, any Compensation payable to an Eligible Employee after the Plan's termination date shall be paid currently to the Eligible Employee in the
ordinary course as normal compensation. 

ARTICLE 12. MISCELLANEOUS

     Section 12.1    No Guaranty of Employment. The adoption and maintenance of the plan shall not be deemed to be a contract of employment between the Employer and any employee. Nothing contained in the Plan
shall give any employee the right to be retained in the employ of the Employer or to interfere with the right of the Employer to discharge any employee at any time, nor shall it give the Employer the right to require any employee to remain in its employ
or to interfere with the employee's right to terminate his or her employment at any time.

     Section 12.2    Non-Alienation. No benefit payable at any time under this Plan shall be subject in any manner to alienation, sale, transfer, assignment, pledge, attachment, garnishment or encumbrance by
creditors of any Eligible Employee or of any Eligible Employee's beneficiary.

     Section 12.3    Applicable Law. The Plan and all rights under the Plan shall be governed by and construed according to the laws of the State of New York (regardless of the laws that might otherwise govern
under applicable New York principles of conflicts of laws), except to the extent preempted or otherwise governed by Federal law.

     IN WITNESS WHEREOF, the Employer has caused this Plan to be executed on this 30th day of December, 1999.

CPAC, INC.                                       

 

By /s/ Thomas J. Weldgen                    

Title VP Finance and CFO                   

WITNESS: /s/ James W. Pembroke    

 

<PAGE 33>

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