Document:

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                                                                   EXHIBIT 10.17

                              EMPLOYMENT AGREEMENT

     AGREEMENT, made and entered into as of the 27th day of August, 2001 by and
between Viasys Healthcare Inc., a Delaware corporation (together with its
successors and assigns permitted under this Agreement, the "Company"), and Mr.
Stephen P. Connelly (the "Executive").

                              W I T N E S S E T H:
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     WHEREAS, the Company desires to employ the Executive and to enter into an
agreement embodying the terms of such employment (this "Agreement") and the
Executive desires to enter into this Agreement and to accept such employment,
subject to the terms and provisions of this Agreement;

     NOW, THEREFORE, in consideration of the premises and mutual covenants
contained herein and for other good and valuable consideration, the receipt and
sufficiency of which is mutually acknowledged, the Company and the Executive
(each individually, a "Party" and together, the "Parties") hereby agree as
follows:

     1. DEFINITIONS.

     (a) "Affiliate" of a person or other entity shall mean a person or other
entity that directly or indirectly controls, is controlled by, or is under
common control with the person or other entity specified.

     (b) "Base Salary" shall mean the salary provided for in Section 4 hereof or
any increased salary granted to the Executive pursuant thereto.

     (c) "Board" shall mean the Board of Directors of the Company.

     (d) "Cause" shall mean the occurrence of any one or more of the following
events:

          (i) the Executive shall have been convicted of a felony or any crime
     involving moral turpitude; or

          (ii) in carrying out his duties, the Executive shall have engaged in
     conduct that constitutes gross neglect or gross misconduct or any material
     violation of this Agreement or any material violation of a significant
     Company rule or policy of which the Executive is aware (or should
     reasonably have been aware), the violation of which amounts to gross
     neglect or gross misconduct.

     (e) "Change in Control" shall mean an event or occurrence set forth in
Section 1.1 of the Post Spin-Off Executive Retention Agreement.

     (f) "Code" shall mean the Internal Revenue Code of 1986, as amended.

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     (g) "Disability" or "disabled" shall mean the Executive's inability due to
physical or mental incapacity, as determined by a medical doctor selected by the
Company and the Executive, to substantially perform his duties and
responsibilities under this Agreement. If the Parties cannot agree on a medical
doctor for such purpose, each Party shall select one medical doctor and such
doctors will jointly select a third medical doctor who shall be the approved
medical doctor for such purpose.

     (h) "Effective Date" shall mean August 27, 2001.

     (i) "Good Reason" shall mean the occurrence of any one or more of the
following events without the Executive's consent:

          (i) a reduction in the Executive's then current Base Salary;

          (ii) the removal of the Executive from the position described in
     Section 3 hereof (other than due to a termination of his employment for
     Cause, Disability or death);

          (iii) a material diminution in the Executive's duties or
     responsibilities under this Agreement;

          (iv) a change in the reporting structure so that the Executive reports
     to someone other than the Chief Operating Officer;

          (v) a Pre Spin-Off Sale of the Company unless (A) there is a single
     successor to businesses of the Company with aggregate revenue for the then
     most recently completed fiscal year in excess of 75% of the revenue in
     aggregate amount of the entire Company during such fiscal year, (B) such
     successor assumes in writing the Company's obligation to perform this
     Agreement within fifteen (15) days of such Pre Spin-Off Sale (other than
     the equity components hereof), and (C) the Executive voluntarily terminates
     his employment with such successor by the 6-month anniversary of the
     effective date of such assumption of the Company's obligation to perform
     this Agreement;

          (vi) neither a Spin-Off nor a Pre Spin-Off Sale occurs on or prior to
     the Measurement Date or there is formal public disclosure by Thermo
     Electron prior to the Measurement Date of its intent not to effectuate the
     Spin-Off or a Pre Spin-Off Sale; or

          (vii) a change by the Company in the location at which the Executive
     performs his principal duties for the Company to a new location that is
     outside a radius of 50 miles from the Executive's principal residence on
     the Effective Date.

     (j) "Measurement Date" means APRIL 15, 2004.

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     (k) "Notice of Termination" shall mean a written notice from one Party to
the other Party given in accordance with Section 27 hereof, terminating the
Executive's employment hereunder. Any Notice of Termination shall (i) indicate
the specific termination provision hereunder relied on by the Party giving such
notice and (ii) to the extent applicable, set forth in reasonable detail the
facts and circumstances providing a basis for termination of the Executive's
employment under the provision so indicated. The failure by the Executive or the
Company to set forth any fact or circumstance that contributes to a showing of
Good Reason or Cause shall not waive any right of the Executive or the Company,
respectively, hereunder or preclude the Executive or the Company, respectively,
from asserting any such fact or circumstance in enforcing their respective
rights hereunder. Any Notice of Termination for (x) Cause given by the Company
must be given within 90 days from the Company becoming aware of the event(s) or
circumstance(s) that constitute(s) Cause and (y) Good Reason given by the
Executive must be given within 30 days from the Executive becoming aware of the
event(s) and circumstance(s) that constitute(s) Good Reason except for a Notice
of Termination for Good Reason given by the Executive pursuant to Section
1(i)(v) for which such notice must be given prior to the 6-month anniversary of
the effective date of the assumption by the successor referred to in such
Section of the Company's obligation to perform this Agreement.

     (l) "Pre Spin-Off Sale" shall mean an event or occurrence of any one or
more of the following prior to the Spin-Off:

          (i) the consummation of a sale or other disposition (other than a
     spin-off) of 50% or more of the outstanding Stock of the Company; or

          (ii) the consummation of a merger, consolidation, reorganization,
     recapitalization or statutory share exchange involving the Company or a
     sale or other disposition of all or substantially all of the assets of the
     Company in one or a series of transactions (a "Business Combination"),
     unless, immediately following such event, Thermo Electron Corporation, a
     Delaware corporation ("Thermo"), beneficially owns, directly or indirectly,
     more than 50% of the then-outstanding shares of common stock and the
     combined voting power of the then-outstanding securities entitled to vote
     generally in the election of directors, respectively, of the acquiring or
     resulting entity in such Business Combination (which shall include, without
     limitation, a corporation which as a result of such transaction owns the
     Company or substantially all of the Company's assets either directly or
     through one or more subsidiaries). As used in this Section 1(l)(ii), the
     term "substantially all of the assets" shall mean businesses with aggregate
     revenue for the then most recently completed fiscal year in excess of 75%
     of the revenue in aggregate amount for the entire Company during such
     fiscal year.

     (m) "Post Spin-Off Executive Retention Agreement" shall mean the Executive
Retention Agreement attached hereto as Exhibit A and incorporated herein by
reference,

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which the Company and the Executive shall enter into on the Effective Date with
respect to the period of time after a Spin-Off.

     (n) "Spin-Off" shall mean the distribution by Thermo to its stockholders of
all or substantially all of the shares of Stock held beneficially by it in a
tax-free spin-off under Section 355 of the Code.

     (o) "Spin-Off Date" shall mean the date on which the Spin-Off shall be
effective.

     (p) "Stock" shall mean the common stock, $0.01 par value per share, of the
Company.

     (q) "Termination Date" shall mean, with respect to any termination of the
Executive's employment hereunder, the effective date of such termination
pursuant to Section 11 hereof.

     2. TERM OF EMPLOYMENT. The Executive's employment under this Agreement
shall commence on the Effective Date and shall continue until the earlier of (i)
August 28, 2004 or (ii) the Spin-Off Date (the "Employment Period"). In the
event that a Spin-Off shall have occurred on or prior to both August 28, 2004
and the Termination Date, the Employment Period shall automatically extend for
an additional three-year period (the "Employment Renewal Period") commencing on
the Spin-Off Date. If the Company elects not to extend the Term of Employment on
terms and conditions substantially similar to those set forth in this Agreement,
it shall provide the Executive with written notice at least six months prior to
the end of the then current Term. For the purpose of this Agreement, "Term" or
"Term of Employment" shall mean the Employment Period and the Employment Renewal
Period, if any. Notwithstanding the foregoing, the Term of Employment may be
earlier terminated in accordance with the provisions of Section 11 hereof.

     3. POSITION, DUTIES AND RESPONSIBILITIES.

     (a) Commencing on the Effective Date, the Executive shall be employed as
President, Medical/Surgical, Business Unit & International Sales of the Company
("President, Medical/Surgical"), and shall have such duties and responsibilities
as are reasonably consistent with the position of President, Medical/Surgical
and such other duties and responsibilities reasonably consistent with such
position as shall be assigned to him from time to time by the Chief Operating
Officer of the Company or any other officer designated by the Board of Directors
or the Chief Executive Officer.

     (b) During the Term of Employment, the Executive shall devote his entire
business time, attention and energies to the business and interest of the
Company and in performing his duties and responsibilities under this Agreement,
subject to usual vacation periods and personal and sick leave in accordance with
this Agreement and the

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Company's policies, and to that end, the Executive shall not serve on the board
of directors of other corporations or entities without the prior approval of the
Board in each case; PROVIDED, that notwithstanding any such approval, such
position(s) do not materially interfere with the proper performance of the
Executive's duties and responsibilities set forth in Section 3 hereof
Notwithstanding anything contained in this Section 3(b) to the contrary, nothing
herein shall preclude the Executive from (i) serving on the boards of directors
of a reasonable number of trade associations and/or charitable organizations,
(ii) engaging in charitable activities and community affairs, and (iv) managing
his personal investments and affairs, PROVIDED, that such activities do not
materially interfere with the proper performance of his duties and
responsibilities set forth in Section 3 hereof.

     (c) The Executive, in carrying out his duties and responsibilities under
this Agreement, shall report directly to the Chief Operating Officer of the
Company.

     (d) In the event of a termination of employment of the Executive for any
reason, the Executive shall immediately resign as a member of each of the boards
of directors of the Company's Affiliates upon which the Executive serves (if
any).

     4. BASE SALARY. The Executive shall be paid an annualized base salary,
payable in accordance with the regular payroll practices of the Company, of
$210,000, which amount may be increased from time to time in the discretion of
the Board, provided that such amount may not be decreased.

     5. ANNUAL CASH INCENTIVE AWARD. During the Term of Employment, the
Executive shall participate in the annual cash incentive program of the Company.
Under such program, the Executive shall be eligible to receive an annual bonus
in an amount equal to (a) 50% of his base salary (the "Reference Amount"),
prorated for any partial calendar year of service, times (b) a number ranging
from 0 to 2 (the "Multiplier") determined in accordance with the subjective and
objective standards established by the Board for such year.

     6. INITIAL STOCK OPTION AWARD. As soon as practicable after the date
hereof, the Company shall grant to the Executive a 7-year non-qualified stock
option to purchase 150,000 shares of Stock, assuming a 40,000,000 share
capitalization of the Company (the "Initial Stock Option") at an exercise price
per share equal to the then fair market value of a share of Stock as determined
by J.P. Morgan & Co. based on current conditions and December 31, 2000 year-end
financial statements and third quarter of 2001 financial performance (the "J.P.
Morgan Valuation"). Such grant shall be substantially in accordance with and
subject to the terms and conditions of the Stock Option Agreement attached
hereto as Exhibit B and incorporated herein by reference, which the Company and
the Executive shall enter into as soon as practicable after the date hereof.

     7. EMPLOYEE BENEFIT PROGRAMS. During the Term of Employment, the Executive
shall be entitled to participate in all employee pension and welfare benefit
plans and programs made available to the Company's senior level executives or to
its

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employees generally, as such plans or programs may be in effect from time to
time, including, without limitation, pension, profit sharing, savings and other
retirement plans or programs, medical, dental, hospitalization, short-term and
long-term disability and life insurance plans, accidental death and
dismemberment protection, travel accident insurance, and any other pension or
retirement plans or programs and any other employee welfare benefit plans or
programs that may be sponsored by the Company from time to time, including any
plans that supplement the above-listed types of plans or programs, whether
funded or unfunded. The Executive shall be entitled to 4 weeks paid vacation per
year of employment.

     8. PERQUISITES. During the Term of Employment, the Executive shall be
entitled to participate in all of the Company's executive perquisites in
accordance with the terms and conditions of such arrangements as are in effect
from time to time for the Company's senior-level executives.

     9. REIMBURSEMENT OF BUSINESS AND OTHER EXPENSES. The Executive is
authorized to incur reasonable expenses in carrying out his duties and
responsibilities under this Agreement including, without limitation, reasonable
legal fees incurred in the negotiation and preparation of this Agreement, and
the Company shall promptly reimburse him for such expenses, subject to
documentation in accordance with the Company's policy.

     10. TERMINATION OF EMPLOYMENT. The Executive's employment hereunder shall
terminate effective immediately upon the earlier to occur of the following
events:

          (a) death of the Executive;

          (b) receipt by either Party of a Notice of Termination for Disability
     from the other Party, but in any event not until the Executive is
     determined to be disabled in accordance with Section 1(h) hereof;

          (c) receipt by the Executive of a Notice of Termination for Cause from
     the Company;

          (d) the 31st day following receipt by the Company of a Notice of
     Termination for Good Reason from the Executive if the Company fails to cure
     within the 30-day period following the Company's receipt of such written
     notice;

          (e) the 31st day following receipt by the Executive of a Notice of
     Termination Without Cause from the Company; and

          (f) the 31st day following receipt by the Company of a Notice of
     Termination Without Good Reason from the Executive.

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     11. RIGHTS AND REMEDIES UPON TERMINATION OF EMPLOYMENT.

     (a) TERMINATION DUE TO DEATH. In the event that the Executive's employment
is terminated due to his death, his estate or his beneficiaries, as the case may
be, shall be entitled to the following benefits:

          (i) the Executive's then current Base Salary through the Termination
     Date, which shall be payable in lump sum within thirty days of the
     Termination Date;

          (ii) an annual cash incentive bonus award for the year in which the
     Termination occurs, pro-rated through the Termination Date, determined in
     accordance with the provisions of Section 6 hereof (the "Pro-Rated Annual
     Bonus"), which shall be payable when annual cash incentive awards are
     normally paid to senior executives; and

          (iii) Stock Options.

               (A) if the Spin-Off shall not have occurred prior to the
          Termination Date, then, effective upon the Termination Date, each
          outstanding option to purchase shares of Stock of the Company held by
          the Executive, whether or not issued under this Employment Agreement,
          shall immediately cease to vest and shall be forfeited to the Company
          and cancelled;

               (B) if the Spin-Off shall have occurred on or prior to both the
          Measurement Date and the Termination Date, then, effective upon the
          Termination Date, each outstanding option to purchase shares of Stock
          of the Company held by the Executive, whether or not issued under this
          Employment Agreement, that have not previously vested prior to that
          date shall immediately vest and shall remain exercisable until one
          year from the Termination Date (but in no event beyond the end of each
          such option's exercise period);

               (C) if the Spin-Off shall have occurred after the Measurement
          Date but prior to the Termination Date, then, effective upon the
          Termination Date, each outstanding option to purchase shares of Stock
          of the Company held by the Executive, whether or not issued under this
          Employment Agreement, that have not previously vested prior to that
          date, shall immediately cease to vest and shall be forfeited to the
          Company and cancelled.

     (b) TERMINATION DUE TO DISABILITY. In the event that the Executive's
employment is terminated by either Party due to his Disability, he shall be
entitled to the following benefits:

          (i) disability benefits in accordance with the long-term disability
     ("LTD") program then in effect for senior executives of the Company;

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          (ii) the Executive's then current Base Salary through the end of the
     LTD elimination period, which shall be payable in lump sum within thirty
     days of the Termination Date;

          (iii) the Pro-Rated Annual Bonus, payable when annual cash incentive
     awards are normally paid to senior executives;

          (iv) Stock Options.

               (A) if the Spin-Off shall not have occurred prior to the
          Termination Date, then, effective upon the Termination Date, each
          outstanding option to purchase shares of Stock of the Company held by
          the Executive, whether or not issued under this Employment Agreement,
          shall immediately cease to vest and shall be forfeited to the Company
          and cancelled;

               (B) if the Spin-Off shall have occurred on or prior to both the
          Measurement Date and the Termination Date, then, effective upon the
          Termination Date, each outstanding option to purchase shares of Stock
          of the Company held by the Executive, whether or not issued under this
          Employment Agreement, that have not previously vested prior to that
          date shall immediately vest and shall remain exercisable until one
          year from the Termination Date (but in no event beyond the end of each
          such option's exercise period);

               (C) if the Spin-Off shall have occurred after the Measurement
          Date but prior to the Termination Date, then, effective upon the
          Termination Date, each outstanding option to purchase shares of Stock
          of the Company held by the Executive, whether or not issued under this
          Employment Agreement, that have not previously vested prior to that
          date, shall immediately cease to vest and shall be forfeited to the
          Company and cancelled; and

          (v) continued participation at the Company's expense in all medical
     and dental insurance coverage in which he was participating on the date of
     his termination until the earlier of (A) 12 months following the
     Termination Date, and (B) the date, or dates, he receives substantially
     equivalent coverage and benefits under the plans and programs of a
     subsequent employer.

     (c) TERMINATION BY THE COMPANY FOR CAUSE. In the event that the Company
terminates the Executive's employment for Cause:

          (i) the Executive shall be entitled to receive his current Base Salary
     through the Termination Date, which shall be payable in lump sum within
     thirty days of the Termination Date;

          (ii) Stock Options.

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               (A) if the Spin-Off shall not have occurred prior to the
          Termination Date, then, effective upon the Termination Date, each
          outstanding option to purchase shares of Stock of the Company held by
          the Executive, whether or not issued under this Employment Agreement,
          shall immediately cease to vest and shall be forfeited to the Company
          and cancelled;

               (B) if the Spin-Off shall have occurred on or prior to both the
          Measurement Date and the Termination Date, then, effective upon the
          Termination Date, each outstanding option to purchase shares of Stock
          of the Company held by the Executive, whether or not issued under this
          Employment Agreement, (1) that have not previously vested prior to
          that date shall immediately cease to vest and shall be forfeited to
          the Company and cancelled and (2) that have previously vested prior to
          the Termination Date shall remain exercisable until three months from
          the Termination Date (but in no event beyond the end of each such
          option's exercise period);

               (C) if the Spin-Off shall have occurred after the Measurement
          Date but prior to the Termination Date, then, effective upon the
          Termination Date, each outstanding option to purchase shares of Stock
          of the Company held by the Executive, whether or not issued under this
          Employment Agreement, that have not previously vested prior to that
          date, shall immediately cease to vest and shall be forfeited to the
          Company and cancelled; and

          (iii) except as otherwise set forth in this Section 12, the Executive
     shall not be entitled to any benefits, severance or other compensation
     after termination.

     (d) TERMINATION FOR GOOD REASON. In the event the Executive's employment is
terminated by the Executive for Good Reason, the Executive shall be entitled to
the following benefits:

          (i) the Executive's then current Base Salary through the Termination
     Date, which shall be payable in lump sum within thirty days of the
     Termination Date;

          (ii) the Pro-Rated Annual Bonus, payable when annual cash incentive
     awards are normally paid to senior executives;

          (iii) an amount equal to the sum of (A) the Executive's then current
     Base Salary and (B) the higher of the Reference Amount or the most recent
     cash incentive award paid or awarded to the Executive pursuant to Section 5
     hereof, payable in lump sum on or before the 90th day immediately following
     the Termination Date;

          (iv) Stock Options.

               (A) if the Spin-Off shall not have occurred prior to the
          Termination Date, then, effective upon the Termination Date, each
          outstanding option to purchase shares of Stock of the Company held by
          the Executive, whether or not issued

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          under this Employment Agreement, shall immediately cease to vest and
          shall be forfeited to the Company and cancelled;

               (B) if the Spin-Off shall have occurred on or prior to both the
          Measurement Date and the Termination Date, then, effective upon the
          Termination Date, each outstanding option to purchase shares of Stock
          of the Company held by the Executive, whether or not issued under this
          Employment Agreement, that have not previously vested prior to that
          date shall immediately vest and shall remain exercisable until one
          year from the Termination Date (but in no event beyond the end of each
          such option's exercise period;

               (C) if the Spin-Off shall have occurred after the Measurement
          Date but prior to the Termination Date, then, effective upon the
          Termination Date, each outstanding option to purchase shares of Stock
          of the Company held by the Executive, whether or not issued under this
          Employment Agreement, that have not previously vested prior to that
          date, shall immediately cease to vest and shall be forfeited to the
          Company and cancelled; and

          (v) continued participation at Company expense in all medical and
     dental insurance coverage in which he was participating on the date of his
     termination until the earlier of (A) 12 months following the Termination
     Date and (B) the date, or dates, he receives substantially equivalent
     coverage and benefits under the plans and programs of a subsequent
     employer.

     (e) TERMINATION WITHOUT GOOD REASON; TERMINATION WITHOUT CAUSE.

          (i) WITHOUT GOOD REASON. A termination of employment by the Executive
     on his own initiative, other than (A) due to death, (B) due to Disability
     or (C) for Good Reason, ("Without Good Reason") shall have the same
     consequences as provided in Section 12(c) above for a termination of the
     Executive's employment by the Company for Cause.

          (ii) WITHOUT CAUSE. A termination of the Executive's employment by the
     Company, other than (A) due to death, (B) due to Disability or (C) for
     Cause, ("Without Cause") shall have same consequences as provided in
     Section 12(d) for a termination of the Executive's employment by the
     Executive for Good Reason.

     (f) OTHER TERMINATION BENEFITS. In the case of any of the foregoing
terminations, to the extent not previously paid or provided or otherwise
contrary to the terms and conditions of this Agreement, the Executive or his
estate or beneficiaries, as the case may be, shall also be entitled to the
balance of any incentive awards due the Executive but not yet paid (including
awards due for performance periods that have been completed, but have not yet
been paid), any expense reimbursements due the Executive, and other benefits, if
any, in accordance with applicable plans or programs of or contracts or
agreements of the Executive with the Company.

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     (g) TERMINATION FOLLOWING A CHANGE IN CONTROL. Notwithstanding anything to
the contrary in this Agreement or in the Post Spin-Off Executive Retention
Agreement, in the event the Executive's employment with the Company is
terminated within 18 months following a Change in Control, the Executive shall
be entitled to benefits equal to the greater of (i) the benefits due and payable
to him under Section 4 of the Post Spin-Off Executive Retention Agreement as a
result of such termination, or (ii) the benefits due and payable to him under
Section 12 of this Employment Agreement as a result of such termination. In
furtherance thereof, it is the Parties' understanding that in the event of a
termination under such circumstances, the Executive shall only be entitled to
receive benefits payable under one or the other of the foregoing agreements (but
not both) determined on a benefit by benefit basis by the Executive and that the
term "Other Benefits" as defined in the Post Spin-Off Executive Retention
Agreement shall not include benefits payable under this Employment Agreement.

     (h) OUTPLACEMENT SERVICES. In the event that the Executive's employment is
terminated in accordance with Section 12(e)(ii) hereof without Cause or Section
12(d) for Good Reason, the Company shall provide outplacement services through
one or more outside firms of the Executive's choosing up to an aggregate of
$15,000, with such services to extend until the earlier of (i) 12 months
following the Termination Date or (ii) the date on which the Executive secures
full time employment.

     (i) NATURE OF PAYMENTS. Any amounts due under this Section 12 are in the
nature of severance payments considered to be reasonable by the Company and are
not in the nature of a penalty.

     (j) NO MITIGATION; NO OFFSET. The Executive shall not be required to
mitigate the amount of any payment or benefit provided in this Section 12 by
seeking other employment or otherwise. Further, except as provided in Sections
12(b)(v) and 12(d)(v), the amount of any payment or benefits provided for in
this Section 12 shall not be reduced by any compensation eamed by the Executive
as a result of employment by another employer or be offset by any amount claimed
to be owed by the Executive to the Company.

     12. CONFIDENTIALITY & ASSIGNMENT OF INVENTIONS.

     (a) The Executive shall execute and deliver to the Company on the Effective
Date the Company's standard employee Confidentiality and Assignment of
Inventions Agreement, substantially in the form attached hereto as EXHIBIT C.

     (b) Upon the termination of the Executive's employment, the Executive (or
in the event of his death, the Executive's personal representative) shall
promptly surrender to the Company the original and all copies of any materials
containing confidential information of the Company which are then in the
Executive's possession or control, provided, however, that the Executive shall
not be required to surrender his rolodexes, personal diaries and other items of
a personal nature.

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     13. NON-COMPETITION; NON-SOLICITATION.

     (a) The Executive acknowledges (i) that in the course of his employment
with the Company he will become familiar with trade secrets and customer lists
of, and other confidential information concerning, the Company and its
Affiliates, customers, and clients and (ii) that his services will be of
special, unique and extraordinary value to the Company.

     (b) The Executive agrees that during the Term of Employment and for a
period of one year following his termination of employment for any reason (the
"Non-Competition Period") he shall not in any manner, directly or indirectly,
through any person, firm, corporation or enterprise, alone or as a member of a
partnership or as an officer, director, stockholder, investor or employee of or
advisor or consultant to any person, firm, corporation or enterprise or
otherwise, engage or be engaged, or assist any other person, firm, corporation
or enterprise in engaging or being engaged (collectively, the "Restricted
Activity"), in any Competitive Activity (as defined below). For the purposes of
this Section 14, a "Competitive Activity" shall mean a business that (i) is
being conducted by the Company or any Affiliate at the time in question and (ii)
was being conducted, or was under active consideration to be conducted, by the
Company or any Affiliate, at the date of the termination of the Executive's
employment; provided that Competitive Activity shall not include a business of
the Company contributing less than 1% of the Company's revenues for the year in
question; and provided further that an activity shall not be deemed to be a
Competitive Activity if the activity contributes less than 1% of the revenues
for the year in question of the business by which the Executive is employed or
with which he is otherwise associated. It is agreed and understood that the
prohibitions provided for in this Section 14(b) shall not restrict the Executive
from engaging in Restricted Activity for any subsidiary, division or Affiliate
or unit of a company (collectively a "Related Entity") if that Related Entity is
not engaged in Competitive Activity, irrespective of whether some other Related
Entity of that company engages in what would otherwise be considered to be
Competitive Activity (as long as Executive does not engage in Restricted
Activity for such other Related Entity).

     (c) The Executive further agrees that during the Non-Competition Period he
shall not (i) in any manner, directly or indirectly, hire or cause to be hired
any employee of or advisor or consultant (which advisor or consultant is a
natural person and not a bona fide business entity) to the Company or any of its
Affiliates for any purpose or in any capacity whatsoever, or (ii) in connection
with any business to which Section 14(b) applies, call on, service, solicit or
otherwise do business with any customer of the Company or any of its Affiliates;
provided, however, that the restriction contained in clause (i) of this Section
14(c) shall not apply to, or interfere with, the proper performance by the
Executive of his duties and responsibilities under Section 3 of this Agreement.

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     (d) Nothing in this Section 14 shall prohibit the Executive from being a
passive owner of not more than two percent of the outstanding common stock,
capital stock and equity of any firm, corporation or enterprise so long as the
Executive has no active participation in the management of business of such
firm, corporation or enterprise.

If the restrictions stated herein are found by a court to be unreasonable, the
parties hereto agree that the maximum period, scope or geographical area
reasonable under such circumstances shall be substituted for the stated period,
scope or area and that the court shall revise the restrictions contained herein
to cover the maximum period, scope and area permitted by law.

     14. REMEDIES. Each of the parties to this Agreement shall be entitled to
enforce its rights under this Agreement specifically, to recover damages and
costs (including reasonable attorney's fees) caused by any breach of any
provision of this Agreement and to exercise all other rights existing in its
favor. The parties hereto agree and acknowledge that money damages would not be
an adequate remedy for any breach of the provisions of this Agreement and that
any party may in its sole discretion apply to any court of law or equity of
competent jurisdiction (without posting any bond or deposit) for specific
performance and/or other injunctive relief in order to enforce or prevent any
violations of the provisions of this Agreement. Nothing in this Section 15 is
intended to prevent the parties from raising any and all defenses with respect
to the necessity for, and scope of, such injunctive or equitable relief.

     15. RESOLUTION OF DISPUTES. Subject to the provisions of Section 15 hereof
regarding specific performance and/or injunctive relief, any disputes arising
under or in connection with this Agreement shall be resolved by binding
arbitration, to be held (a) in Boston, Massachusetts with respect to disputes
arising under or in connection with this Agreement on or prior to the Spin-Off
Date or (b) in Philadelphia, Pennsylvania with respect to disputes arising under
or in connection with this Agreement after the Spin-Off Date, in each case in
accordance with the rules and procedures of the American Arbitration
Association. Judgment upon the award rendered by the arbitrator(s) may be
entered in any court having jurisdiction thereof.

     16. EXPENSES. Subject to the provisions of Sections 15 and 16 hereof, in
the event any party hereto (for the purposes of this Section 17, the "Aggrieved
Party") seeks a judicial adjudication of, or an award in arbitration to enforce,
the Aggrieved Party's rights under, or to recover damages for the breach of,
this Agreement, the Aggrieved Party shall be entitled to recover from the other
party or parties, as the case may be, and shall be indemnified by the other
party or parties, as the case may be, against, any and all costs actually and
reasonably incurred by the Aggrieved Party in such judicial adjudication or
arbitration, including, without limitation, reasonable attorney's fees, but only
if the Aggrieved Party prevails in such proceeding.

                                      -13-
<PAGE>

     17. LIABILITY INSURANCE. The Company agrees to obtain, continue and
maintain a directors' and officers' liability insurance policy covering the
Executive to the extent the Company provides such coverage for its other senior
executives. The Parties shall enter into an Indemnification Agreement on the
Effective Date in the form attached hereto as EXHIBIT D.

     18. ASSIGNABILITY; BINDING NATURE. This Agreement shall be binding upon and
inure to the benefit of the Parties and their respective successors, heirs (in
the case of the Executive) and assigns. Rights or obligations of the Company
under this Agreement may be assigned or transferred by the Company pursuant to a
merger or consolidation in which the Company is not the continuing entity, or
the sale or liquidation of all or substantially all of the assets of the
Company, provided that the assignee or transferee is the successor to all or
substantially all of the assets of the Company and such assignee or transferee
assumes the liabilities, obligations and duties of the Company, as contained in
this Agreement, either contractually or as a matter of law. The Company further
agrees that, in the event of a sale of assets or liquidation as described in the
preceding sentence, it shall take whatever action it reasonably can in order to
cause such assignee or transferee to expressly assume the liabilities,
obligations and duties of the Company hereunder. No rights or obligations of the
Executive under this Agreement may be assigned or transferred by the Executive
other than his rights to compensation and benefits, which may be transferred
only by will or operation of law.

     19. REPRESENTATIONS AND WARRANTIES.

     (a) The Company represents and warrants that it has all requisite corporate
power and authority to enter into this Agreement and that the performance by the
Company of its obligations under this Agreement will not violate any agreement
to which it is a party.

     (b) The Executive represents that the execution of this Agreement by the
Executive and the performance by him of his obligations hereunder will not
violate any agreement to which he is a party.

     (c) The Executive hereby represent and warrants that he is not bound by the
terms of any agreement with any previous employer or other party to refrain from
competing, directly or indirectly, with the business of such previous employer
or any other party. The Executive further represents and warrants that
Executive's performance of all the terms of this Agreement and as an employee of
the Company does not and will not breach any agreement to keep in confidence
proprietary information, knowledge or data acquired by the Executive in
confidence or in trust prior to Executive's employment with the Company. The
Executive will not disclose to the Company or induce the Company to use any
confidential or proprietary information or material belonging to any previous
employer or others. The Executive will not hereafter grant anyone any rights
inconsistent with the terms of this Agreement.

                                      -14-
<PAGE>

     20. ENTIRE AGREEMENT. This Agreement and the Exhibits attached hereto and
incorporated herein by reference contain the entire understanding and agreement
between the Parties concerning the subject matter hereof and thereof and
supersede all prior agreements, understandings, discussions, negotiations and
undertakings, whether written or oral, between the Parties with respect thereto.
This is an integrated document.

     21. AMENDMENT OR WAIVER. No provision in this Agreement may be amended
unless such amendment is agreed to in writing and signed by the Executive and an
authorized officer of the Company, other than the Executive. No waiver by either
Party of any breach by the other Party of any condition or provision contained
in this Agreement to be performed by such other Party shall be deemed a waiver
of a similar or dissimilar condition or provision at the same or any prior or
subsequent time. Any such waiver must be in writing and signed by the Executive
or an authorized officer of the Company, other than the Executive, as the case
may be.

     22. SEVERABILITY. In the event that any provision or portion of this
Agreement shall be determined to be invalid or unenforceable for any reason, in
whole or in part, the remaining provisions of this Agreement shall be unaffected
thereby and shall remain in full force and effect to the fullest extent
permitted by law so as to achieve the purposes of this Agreement.

     23. SURVIVORSHIP. Except as otherwise expressly set forth in this
Agreement, the respective rights and obligations of the Parties hereunder shall
survive any termination of the Executive's employment. This Agreement itself (as
distinguished from the Executive's employment) may not be terminated by either
Party without the written consent of the other Party.

     24. REFERENCES. In the event of the Executive's death or a judicial
determination of his incompetence, reference in this Agreement to the Executive
shall be deemed, where appropriate, to refer to his beneficiary, estate or other
legal representative.

     25. GOVERNING LAW/JURISDICTION. This Agreement shall be governed in
accordance with the laws of the Commonwealth of Massachusetts without reference
to principles of conflict of laws.

     26. NOTICES. All notices and other communications required or permitted
hereunder shall be in writing and shall be deemed given when (a) delivered
personally, (b) sent by certified or registered mail, postage prepaid, return
receipt requested or (c) delivered by overnight courier (provided that a written
acknowledgment of receipt is obtained by the overnight courier) to the Party
concerned at the address indicated below or to such changed address as such
Party may subsequently give such notice of:

If to the Company:                      Viasys Healthcare Inc.
                                        c/o Thermo Respiratory & Sensormedics

                                      -15-
<PAGE>

                                        22705 Savi Ranch Parkway
                                        Yorba Linda, CA 92887
                                        Attention: Chief Operating Officer

Copy to:                                Chairman, Medical/Surgical Business Unit
                                        Committee of the Board of Directors

Prior to the Spin-Off Date, copy to:    Thermo Electron Corporation
                                        81 Wyman Street
                                        Waltham, MA 02254
                                        Attention: General Counsel

If to the Executive:                    Stephen P. Connelly
                                        1890 Covered Bridge Road
                                        Malvern, PA 19335

     27. HEADINGS. The headings of the sections contained in this Agreement are
for convenience only and shall not be deemed to control or affect the meaning or
construction of any provision of this Agreement.

     28. COUNTERPARTS. This Agreement may be executed in counterparts.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -16-
<PAGE>

     IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the
date first written above.

                                    VIASYS HEALTHCARE INC.

                                    By: /s/ RANDY H. THURMAN
                                        ------------------------------------
                                        Name: Randy H.Thurman
                                        Title: President and Chief
                                               Executive Officer

                                    By: /s/ STEPHEN P. CONNELLY
                                        ------------------------------------
                                        Name: Stephen P. Connelly, Executive

                                      -17-QuickLinks
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Exhibit 10.20  

 
 

SEALED AIR CORPORATION
  2002 STOCK PLAN
  FOR NON-EMPLOYEE DIRECTORS    
  

        Section 1.    Purpose.    The Sealed Air Corporation 2002 Stock Plan for Non-Employee Directors
(the "Plan") is designed to enhance the ability of Sealed Air Corporation (the "Corporation") to attract, retain and motivate Non-Employee Directors (as defined in Section 3) of
exceptional ability and to promote the common interest of directors and stockholders in enhancing the value of the Corporation's common stock, par value $0.10 per share ("Common Stock"). The Plan
provides for payment in shares of the Common Stock of all or a portion of the Retainer (as defined below) paid to each Non-Employee Director for serving as a director of the Corporation. 

        Section 2.    Stock Available.    The stock subject to the Plan shall be such authorized but unissued or
treasury shares of Common Stock as shall from time to time be available for issuance pursuant to the Plan. The total amount of Common Stock which may be issued pursuant to the Plan is 100,000 shares,
subject to adjustment in accordance with the provisions of Section 10. 

        Section 3.    Eligibility.    Each Non-Employee Director of the Corporation shall be eligible to
participate in the Plan. As used in the Plan, the term "Non-Employee Director" shall include any person who, at the time he or she becomes otherwise entitled to receive a Retainer under
the Plan, is not an officer or employee of the Corporation or any of its Subsidiaries (as such term is defined in Section 19). Any Non-Employee Director who becomes an officer or
employee of the Corporation or any of its Subsidiaries shall cease to be eligible to participate in the Plan for so long as such person remains as such an officer or employee. 

        Section 4.    Retainer.    Retainers, which shall be either Annual Retainers or Interim Retainers, shall be
earned by Non-Employee Directors as follows: 

        (a)    Annual Retainers.    Upon the adjournment of each annual meeting of the stockholders of the Corporation, each
Non-Employee Director who has been elected a director of the Corporation at such meeting shall be entitled to receive an Annual Retainer in an amount established prior to such annual
meeting by the Board of Directors. 

        (b)    Interim Retainers.    If any Non-Employee Director is elected a director other than at an annual
meeting of the stockholders of the Corporation, then on the date of such Non-Employee Director's election such Non-Employee Director shall be entitled to an Interim Retainer in
the amount of one-twelfth of the Annual Retainer for Non-Employee Directors elected at the previous annual meeting of the stockholders for each full 30-day period
during the period commencing on and including the date of such person's election as a director and ending on and including the date of the next annual meeting of the stockholders of the Corporation
provided for in accordance with the By-Laws of the Corporation as then in effect. 

        (c)    Plan Periods.    The first Plan Period shall commence upon the election of directors at the 2002 annual meeting
of the stockholders of the Corporation and terminate upon the election of directors at the 2003 annual meeting of the stockholders of the Corporation. Subsequent Plan Periods shall relate to
successive similar periods between annual meetings of the stockholders of the Corporation. 

        Section 5.    Payment of Retainers.    

        (a)
Except as otherwise provided in Section 5(c), (i) 50% of each Retainer shall be payable in shares of Common Stock, and the remaining 50% of such Retainer shall be
payable in cash or in stock, at the written election of the Non-Employee Director, (ii) issuance of the portion of a Retainer payable in shares of Common Stock shall be made as
promptly as practicable after the Non-Employee Director becomes entitled to receive it, (iii) payment of the portion of an Annual Retainer payable in cash, if 

any, shall be made in four equal installments on or about the first day of July, October, January and April in the Plan Period to which such Annual Retainer relates, and (iv) payment of the
portion of any Interim Retainer payable in cash, if any, shall be made in equal installments on the remaining cash payment dates during the Plan Period in which the Non-Employee Director
is elected, provided, that if such Non-Employee Director is elected between April 1 and the next annual meeting of stockholders of the Corporation, then the portion of the Interim
Retainer payable in cash, if any, shall be paid as promptly as practicable after the Non-Employee Director is elected. If a Non-Employee Director has not made the election
referred to in (i) above prior to the first day of the Plan Period (or, for an Interim Retainer, prior to the date such Non-Employee Director is elected), then 50% of his or her
Retainer shall be payable in shares of Common Stock and 50% of his or her Retainer shall be payable in cash. 

        (b)
The number of shares of Common Stock to be paid as all or part of an Annual Retainer shall be calculated by dividing the amount of such Annual Retainer payable in shares of Common
Stock by the last sales price of the Common Stock on the applicable annual meeting date as reported on the consolidated transaction reporting system for New York Stock Exchange listed issues on that
date or, if
no sales occurred on that date, the last sales price on the consolidated transaction reporting system on the most recent prior day on which a sale occurred (the "Fair Market Value Per Share"). The
number of shares to be paid as all or part of an Interim Retainer shall be calculated using the Fair Market Value Per Share on the date of election of the Non-Employee Director who will
receive the Interim Retainer. If the calculation of the portion of an Annual Retainer or an Interim Retainer to be paid in shares of Common Stock would result in a fractional share of Common Stock
being issued, then the number of shares to be so paid shall be rounded up to the nearest whole share. No fractional shares of Common Stock shall be issued under this Plan, whether as part of an Annual
Retainer or as part of an Interim Retainer. 

        (c)
Payment of all or part of a Retainer may be deferred under the Sealed Air Corporation Deferred Compensation Plan for Directors or any other applicable plan or arrangement providing
for the deferred payment of retainers that may be in effect from time to time. Shares of Common Stock which a Non-Employee Director becomes entitled to receive under this Plan and for
which payment is deferred under any such deferral arrangement shall be deemed to be issued under this Plan when issued. 

        Section 6.    Non-Transferability of Grants.    Except for gifts of shares permitted under this
Section, no grant of shares of Common Stock pursuant to the Plan shall be transferable by the recipient of such grant, and no shares of Common Stock issued pursuant to the Plan, or any interest
therein, may be sold, transferred, pledged, encumbered or otherwise disposed of (including without limitation by way of gift or donation) by the Non-Employee Director to whom such shares
have been issued as long as such Non-Employee Director shall remain a director of the Corporation. Any Non-Employee Director of the Corporation may make a gift of any such
shares to members of the immediate family of such Non-Employee Director or to a trust or other form of indirect ownership (a "Permitted Transferee") on the conditions that (i) the
Non-Employee Director shall continue to be deemed a beneficial owner of such transferred shares and retain voting and investment control over such shares while the Non-Employee
Director remains a director of the Corporation, except upon a Change of Control as provided below, and (ii) the Permitted Transferee shall execute an agreement with the Corporation on terms
acceptable to counsel to the Corporation providing that such shares shall be subject to all terms and restrictions of this Plan. For the purpose of this Section 6, "immediate family" shall have
the meaning given in Rule 16a-1 under the Securities Exchange Act of 1934, as amended (the "Securities Exchange Act"), and "beneficial owner" shall have the meaning given in
Rule 16a-1 under the Securities Exchange Act, other than for purposes of determining beneficial ownership of more than ten percent of any class of equity securities. 

        Section 7.    Execution of Agreement.    Each grant of Common Stock pursuant to this Plan shall be contingent
upon and subject to (i) payment by such Non-Employee Director pursuant to Section 8 of the Issue Price for the shares included as part of the Annual Retainer or the Interim
Retainer, as the case may be, and (ii) the execution by the Non-Employee Director of a document agreeing to hold the 

shares of Common Stock covered by such grant in accordance with the terms and conditions of the Plan (including without limitation Sections 6, 12 and 13) and containing such other terms and
conditions as may be required by counsel to the Corporation in order to comply with federal or state securities laws or other legal requirements. 

        Section 8.    Issue Price of Common Stock.    Before Common Stock may be issued to a Non-Employee
Director under the Plan, or credited to the account of a Non-Employee Director under any of the retainer deferral arrangements referred to in Section 5(c), the
Non-Employee Director shall pay to the Corporation an amount of money ("Issue Price") equal to the par value per share of the Common Stock times the number of shares of Common Stock to be
issued or credited. The Issue Price for shares of Common Stock granted under the Plan shall be tendered to the Corporation within thirty (30) days after notice of the amount thereof is given by
the Corporation to the recipient of such shares. 

        Section 9.    Change in Control.    A "Change in Control" shall occur when (i) there occurs a
reorganization, merger, consolidation, sale of all or substantially all the Corporation's assets, or other corporate transaction involving the Corporation (a "Corporate Transaction") and the
stockholders of the Corporation immediately prior to such Corporate Transaction do not, immediately after the Corporate Transaction, beneficially own, in the aggregate, directly or indirectly, at
least 70% of the combined voting power of the outstanding voting securities of the successor or resulting corporation or other entity resulting from such Corporate Transaction, where the term
"beneficially own" shall be used as in Sections 13(d) and 14(d) of the Securities Exchange Act, (ii) any "person" (as the term "person" is used in Sections 13(d) and 14(d) of the Securities
Exchange Act) is or becomes the beneficial owner, directly or indirectly, of securities of the Corporation representing 30% or more of the combined voting power of the Corporation's then outstanding
securities, (iii) as a result of any solicitation subject to Rule 14a-11 under the Securities Exchange Act (or any successor rule thereto) one or more persons not recommended
by or opposed for election to the Board of Directors by one-third or more of the Continuing Directors of the Corporation then in office is or are elected a director of the Corporation, or
(iv) the Corporation shall become subject for any reason to a voluntary or involuntary dissolution or liquidation. A "Continuing Director" shall be a director of the Corporation who is serving
as such at the commencement of the first Plan Period and any person who is approved as a nominee or elected to the Board of Directors by a majority of Continuing Directors who are then members of the
Board of Directors of the Corporation. Upon any Change in Control, as of the close of business at the principal executive office of the Corporation on the business day immediately preceding the date
on which such event occurs, for purposes of the Plan and to the extent that the provisions of the Plan remain applicable to shares granted under the Plan, the restriction provided for in
Section 6 of the Plan shall without further act expire and cease to apply to any securities granted under the Plan, the requirement of a legend on stock certificates provided for in
Section 12 of the Plan shall without further act expire and cease to apply to any securities granted under the Plan, and each Non-Employee Director or Permitted Transferee holding
shares issued under the Plan shall thereupon have the right to receive unlegended shares as set forth in the last sentence of Section 12 of the Plan. 

        Section 10.    Adjustments.    In the event of changes in the Common Stock of the Corporation after the
commencement of the first Plan Period by reason of any stock dividend, split-up, combination of shares, reclassification, recapitalization, merger, consolidation, reorganization or
liquidation: (a) the restrictions provided in Section 6 and the requirement of a legend on stock certificates provided in Sections 12 and 13(d) shall apply to any securities issued in
connection with any such change in respect of stock which has been issued under the Plan and (b) appropriate adjustments shall be made by the Board of Directors as to (i) the number and
class of shares available under the Plan in the aggregate, (ii) the Issue Price for future elections of Non-Employee Directors, and (iii) the number of shares to be delivered to a
Non-Employee Director and the Issue Price where such change occurred after the Non-Employee Director was elected but before the date the stock covered by the applicable Retainer is issued, including
deferred payments under any of the deferral arrangements referred to in Section 5(c). 

        Section 11.    Action by Corporation.    Neither the existence of the Plan nor the issuance of Common Stock
pursuant thereto shall impair the right of the Corporation or its stockholders to make or effect any adjustments, recapitalization or other change in the Common Stock referred to in 

Section 10, any change in the Corporation's business, any issuance of debt obligations or stock by the Corporation or any grant of options on stock of the Corporation. 

        Section 12.    Legend on Stock Certificates.    All shares of Common Stock issued under the Plan shall, so long
as the restrictions imposed by the Plan (including without limitation Section 6) remain in effect, be represented by certificates, each of which shall bear a legend in substantially the
following form: 

        This
certificate and the shares represented hereby are held subject to the terms of the 2002 Stock Plan for Non-Employee Directors of Sealed Air Corporation, which Plan
provides that neither the shares issued pursuant thereto, nor any interest therein, may be sold, transferred, pledged, encumbered or otherwise disposed of (including without limitation by way of gift
or donation) except in accordance with such Plan. A copy of such Plan is available for inspection at the executive offices of Sealed Air Corporation. 

Each
Non-Employee Director and his or her Permitted Transferees may surrender to the Corporation the certificate or certificates representing such shares in exchange for a new certificate
or certificates, free of the above legend, or for a statement from the Corporation representing such shares held in book entry form free of such legend at any time after either such
Non-Employee Director has ceased to be a director of the Corporation or the restriction set forth in Section 6 has otherwise ceased to apply to the shares covered by such
certificate. 

        Section 13.    Government and Other Regulations and Restrictions.    

        (a)    In General.    The issuance by the Corporation of any shares of Common Stock pursuant to the Plan shall be
subject to all applicable laws, rules and regulations and to such approvals by governmental agencies as may be required. 

        (b)    Registration of Shares.    The Corporation shall use its reasonable commercial efforts to cause the grants of
shares of Common Stock to be made pursuant to this Plan to be registered under the Securities Act of 1933, as amended (the "Securities Act"), but shall otherwise be under no obligation to register any
shares of Common Stock issued under the Plan under the Securities Act or otherwise. If, at the time any shares of Common Stock are issued pursuant to the Plan or transferred to a Permitted Transferee,
there shall not be on file with the Securities and Exchange Commission an effective Registration Statement under the Securities Act covering such shares of Common Stock, the person to whom such
shares are to be issued will execute and deliver to the Corporation upon receipt by him or her of any such shares an undertaking, in form and substance satisfactory to the Corporation, that
(i) such person has had access or will, by reason of such person's service as a director of the Corporation, or otherwise, have access to sufficient information concerning the Corporation to
enable him or her to evaluate the merits and risks of the acquisition of shares of the Corporation's Common Stock pursuant to the Plan, (ii) such person has such knowledge and experience in
financial and business matters that such person is capable of evaluating such acquisition, (iii) it is the intention of such person to acquire and hold such shares for investment and not for
the resale or distribution thereof, (iv) such person will comply with the Securities Act and the Securities Exchange Act with respect to such shares, and (v) such person will indemnify
the Corporation for any costs, liabilities and expenses which the Corporation may sustain by reason of any violation of the Securities Act or the Securities Exchange Act occasioned by any act or
omission on his or her part with respect to such shares. 

        (c)    Resale of Shares.    Without limiting the generality of Section 6, shares of Common Stock acquired
pursuant to the Plan shall not be sold, transferred or otherwise disposed of unless and until either (i) such shares shall have been registered by the Corporation under the Securities Act,
(ii) the Corporation shall have received either a "no action" letter from the Securities and Exchange Commission or an opinion of counsel acceptable to the Corporation to the effect that such
sale, transfer or other disposition of the shares may be effected without such registration, or (iii) such sale, transfer or disposition of the shares is made pursuant to Rule 144 under
the Securities Act, as the same 

may from time to time be in effect, and the Corporation shall have received information acceptable to the Corporation to such effect. 

        (d)    Legend on Certificates.    The Corporation may require that any certificate or certificates evidencing shares
issued pursuant to the Plan bear a restrictive legend, and be subject to stop-transfer orders or other actions, intended to effect compliance with the Securities Act or any other
applicable regulatory measures. 

        Section 14.    No Right to Continued Membership; Non-Exclusivity.    Nothing contained in the Plan
shall prevent the Board of Directors from adopting other or additional compensation arrangements or modifying existing compensation arrangements for Non-Employee Directors, subject to
stockholder approval if such approval is required by applicable statute, rule or regulation; and such arrangements may be either generally applicable or applicable only in specific cases. The adoption
of the Plan shall not confer upon any member of the Board of Directors of the Corporation any right to continued membership on the Board of Directors of the Corporation. 

        Section 15.    No Rights in Common Stock.    No Non-Employee Director or Permitted Transferee shall
have any interest in or be entitled to any voting rights or dividends or other rights or privileges of stockholders of the Corporation with respect to any shares of Common Stock granted pursuant to
the Plan unless, and until, shares of Common Stock are actually issued to such person and then only from the date such person becomes the record owner thereof. 

        Section 16.    Tax Withholding.    The Corporation shall make appropriate provisions for the payment of any
federal, state or local taxes or any other charges that may be required by law to be withheld by reason of the payment of a Retainer or a grant or the issuance of shares of Common Stock pursuant to
the Plan. 

        Section 17.    No Liability.    No member of the Board of Directors of the Corporation, nor any officer or
employee of the Corporation acting on behalf of the Board of Directors of the Corporation, shall be personally liable for any action, determination or interpretation taken or made in good faith with
respect to the Plan, and all members of the Board of Directors and each and any officer or employee of the Corporation acting on their behalf shall, to the extent permitted by law, be fully
indemnified and protected by the Corporation in respect of any such action, determination or interpretation. 

        Section 18.    Successors.    The provisions of the Plan shall be binding upon and inure to the benefit of all
successors of any person receiving a Retainer or Common Stock of the Corporation pursuant to the Plan, including, without limitation, the estate of such person and the executors, administrators or
trustees thereof, the heirs and legatees of such person, and any receiver, trustee in bankruptcy or representative of creditors of such person. 

        Section 19.    Subsidiaries.    For the purposes of the Plan, the term "Subsidiaries" includes those
corporations 50 per cent or more of whose outstanding voting stock is owned or controlled, directly or indirectly, by the Corporation and those companies, partnerships and joint ventures in which the
Corporation owns directly or indirectly a 50 per cent or more interest in the capital account or earnings. 

        Section 20.    Expenses.    The expenses of administering the Plan shall be borne by the Corporation. 

        Section 21.    Pronouns.    Masculine pronouns and other words of masculine gender shall refer to both men and
women. 

        Section 22.    Termination and Amendment of the Plan.    The Board of Directors may from time to time amend
this Plan, or discontinue the Plan or any provisions thereof, provided that no amendment or modification of the Plan shall be made without the approval of the stockholders of the Corporation that
would (i) increase the number of shares of Common Stock available for issuance under the Plan; (ii) modify the requirements as to eligibility for participation under the Plan; or
(iii) change any of the provisions of this Section 22. No amendment or discontinuation of the Plan or any provision thereof 

shall, without the written consent of the participant, adversely affect any shares theretofore granted to such participant under the Plan. 

        Section 23.    Effective Date.    The Plan shall become effective on the date of its approval by the
stockholders of the Corporation. 

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SEALED AIR CORPORATION 2002 STOCK PLAN FOR NON-EMPLOYEE DIRECTORS

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