Document:

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                                                                    EXHIBIT 10.1

                                    AGREEMENT

AGREEMENT, dated as of August 10, 2001 by and between PAXAR CORPORATION, a New
York corporation (the "COMPANY"), and PAUL GRISWOLD ("EXECUTIVE").

1.       PURPOSE.

The Company acknowledges and recognizes the value of Executive's services, which
services are of special, unique and extraordinary character. The Company desires
to continue to employ Executive and retain his abilities and services as and
officer and director of the Company through February 28, 2005, and thereafter,
on the mutual agreement of the parties, until February 28, 2010, unless
Executive's employment is sooner terminated in accordance with this Agreement.
The Company also desires to provide Executive and his spouse with the retirement
benefits specified in this Agreement.

2.       EMPLOYMENT.

The Company hereby agrees to continue to employ Executive, and Executive hereby
agrees to continue to be employed by the Company, upon the terms, and subject to
the conditions, set forth in this Agreement effective as of August 10, 2001 (the
"EFFECTIVE DATE").

3.       PERIOD OF EMPLOYMENT.

The term of this Agreement shall consist of (i) an "INITIAL TERM," which shall
end on February 28, 2005, unless Executive's employment is terminated earlier in
accordance with Section 8 below, and (ii) if this Agreement has not theretofore
been terminated, an "EXTENSION TERM," which shall commence on March 1, 2005, and
shall end on February 28, 2010, unless Executive's employment is terminated
earlier in accordance with Section 8 below. As used in this Agreement, the
phrase "EMPLOYMENT PERIOD" refers to Executive's period of employment from the
Effective Date until his last day of employment.

4.       MEMBERSHIP ON BOARD OF DIRECTORS.

During the Employment Period or Executive's attainment of the mandatory
retirement age for service on the Company's Board of Directors (the "BOARD"),
the Company shall include Executive in the management slate for election as a
director and shall recommend his election at any stockholders' meeting at which
his term otherwise would expire.

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5.       POSITIONS; DUTIES AND RESPONSIBILITIES.

(a)      DIRECTOR DUTIES. Executive shall have the following duties and
         responsibilities as a member of the Board:

         (i)      Until Executive's appointment as Chairman of the Board, as
                  provided in Section 5(a)(ii) below, Executive shall have the
                  same duties and responsibilities as other members of the
                  Board.

         (ii)     After December 31, 2003 or such earlier date of the present
                  Chairman's resignation, and until the expiration of the
                  Employment Period or Executive's attainment of the Board's
                  mandatory retirement age or such earlier date as is mutually
                  agreed by the parties, Executive shall serve as the Chairman
                  of the Board. As Chairman of the Board, Executive shall have
                  such duties and responsibilities as shall be set forth in the
                  Company's By-Laws or as otherwise delegated by the Board of
                  Directors.

(b)      CEO DUTIES. During the Employment Period, Executive shall continue to
         serve as the Company's Chief Executive Officer. In such capacity,
         Executive shall perform the customary duties and have the customary
         responsibilities of such position.

(c)      FULL TIME EMPLOYMENT. Executive agrees to serve the Company faithfully,
         to devote his full business time, attention, efforts and energies to
         the performance of his duties, and to perform the duties under this
         Agreement to the best of his abilities.

(d)      COMPLIANCE WITH LAWS, RULES, ETC. Executive agrees (i) to comply with
         all applicable laws, rules and regulations, and all requirements of all
         applicable regulatory, self-regulatory, and administrative bodies; (ii)
         to comply with the Company's rules, procedures, policies, requirements,
         and directions; and (iii) not to engage in any other business or
         employment without the written consent of the Company, except as
         otherwise specifically provided herein.

6.       COMPENSATION AND BENEFITS DURING EMPLOYMENT PERIOD:

Executive shall receive the following compensation and benefits during the
Employment Period:

(a)      BASE SALARY. The Company shall pay Executive a base salary at the rate
         of $500,000 per annum ("Base Salary") in accordance with the
         compensation policy applicable to the Company's senior executive
         officers. Upon recommendation from the Board's Compensation Committee,
         the Board may change Executive's Base Salary from time to time in its
         discretion. Such Base Salary shall be paid in accordance with the
         Company's standard payroll practice for senior executive officers.

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(b)      ANNUAL INCENTIVE COMPENSATION. Executive shall be eligible to receive
         annual incentive compensation in the form of a cash bonus, profit
         sharing or otherwise as the Board or the Compensation Committee may
         grant Executive from time to time in accordance with targets and other
         criteria established by the Board or the Compensation Committee for
         senior executive officers of the Company. Executive's annual bonus
         award will be equal to 75% of his Base Salary in effect for the
         calendar year, if the Company achieves 100% of the plan targets as
         established for Executive.

(c)      STOCK OPTIONS. On execution of this Agreement by Executive, the Company
         shall grant Executive options to purchase 125,000 shares of the
         Company's common stock under and subject to the terms and conditions of
         the Company's stock option plans. Thereafter, Executive shall
         participate in the Company's stock option plans and be eligible to
         receive additional grants under such plans in accordance with the
         Company's policy applicable to senior executive officers.

(d)      BENEFIT PLANS, FRINGE BENEFITS AND VACATIONS. Executive shall be
         eligible to participate in or receive benefits under any pension plan,
         401(k) savings plan, nonqualified deferred compensation plan,
         supplemental executive retirement plan, medical and dental benefits
         plan, life insurance plan, short-term and long-term disability plans,
         supplemental and/or incentive compensation plans, or any other employee
         benefit or fringe benefit plan, generally made available by the Company
         to senior executive officers in accordance with the eligibility
         requirements of such plans and subject to the terms and conditions set
         forth in this Agreement. Such benefits shall include life insurance
         coverage equal to three times Executive's Base Salary in effect from
         time to time.

(e)      AUTOMOBILE ALLOWANCE. The Company shall provide Executive with an
         automobile allowance of $1,500 per month.

(f)      EXPENSE REIMBURSEMENT. The Company shall promptly reimburse Executive
         for the ordinary and necessary business expenses incurred by Executive
         in the performance of his duties under this Agreement in accordance
         with the Company's customary practices applicable to senior executive
         officers.

7.       SUPPLEMENTAL RETIREMENT BENEFIT.

Provided that Executive shall have been employed by the Company for a period of
five (5) years (including periods for which Executive is receiving payments as a
result of termination of his employment by the Company without Cause, as
provided in Section 8(d), or by Executive for Good Reason, as provided in
Section 8(e)), the Company shall pay Executive a supplemental retirement benefit
as follows:

(a)      CALCULATION OF BENEFIT. The supplemental retirement benefit will be an
         amount equal to 60% of Executive's Final Average Compensation.
         Executive's "FINAL AVERAGE

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         COMPENSATION" shall be equal to the average of Executive's Total
         Compensation for the three (3) calendar years of the last five (5) full
         calendar years of Executive's employment with the Company preceding
         such last day of employment in which Executive earned the highest Total
         Compensation. "TOTAL COMPENSATION" as used in the preceding sentence
         means the total Base Salary and incentive compensation earned by
         Executive, including compensation earned in one calendar year and paid
         or payable in a subsequent calendar year, and any payments paid or
         payable to Executive for a calendar year under Section 9(d) as a result
         of termination of his employment by the Company without Cause or for
         Good Reason. For purposes hereof, if Executive's employment is
         terminated effective before February 28, 2005, by the Company without
         Cause, in accordance with Section 8(d), or for Good Reason, in
         accordance with Section 8(e), Executive's last day of employment shall
         be deemed to be February 28, 2005. In addition, if Executive's last day
         of employment occurs on December 31, then the year in which such last
         day of employment occurs shall be included as a full calendar year for
         purposes of determining Executive's Final Average Compensation.

(b)      PAYMENT OF BENEFIT TO EXECUTIVE. The Company shall pay the supplemental
         retirement benefit to Executive in equal monthly installments
         commencing on the first day of the first calendar month after
         Executive's 65th birthday. Executive may elect by written notice to the
         Company to commence the supplemental retirement benefit prior to his
         65th birthday, but no earlier than his 55th birthday, subject to a 3%
         per year reduction in the percentage of his Final Average Compensation
         that he is entitled to receive (e.g., if Executive elects to commence
         receipt of the supplemental benefit immediately after his 64th
         birthday, his supplemental retirement benefit would be equal to 57% of
         his Final Average Compensation).

(c)      SPOUSE'S BENEFIT IF PAYMENTS HAVE COMMENCED. In the event of
         Executive's death after commencement of payments of such supplemental
         retirement benefits to Executive, the Company shall pay to his
         surviving spouse until her death or such earlier date as determined in
         accordance with Section 22(f) below, an amount equal to 50% of the
         monthly supplemental retirement benefit paid to Executive. Such
         payments will commence as soon as practicable following Executive's
         date of death.

(d)      SPOUSE'S BENEFIT IF PAYMENTS HAVE NOT COMMENCED. In the event of
         Executive's death before commencement of payments of the supplemental
         retirement benefit, commencing on the first day of the first calendar
         month after Executive would have attained age 65, the Company shall pay
         Executive's surviving spouse, until her death or such earlier date as
         determined in accordance with Section 22(f) below, in equal monthly
         installments an amount equal to 50% of the supplemental retirement
         benefit that would have been payable to Executive. Executive's
         surviving spouse may elect by written notice to the Company to commence
         the supplemental retirement benefit prior to the date on which
         Executive would have attained age 65, but not earlier than the date on
         which Executive would have attained age 55, subject to a 3% per year
         reduction in percentage of Executive's Final Average Compensation that
         she is entitled to receive (e.g., if

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         Executive's surviving spouse elects to commence payment of the
         supplemental retirement benefit immediately after Executive would have
         attained age 64, the supplemental retirement benefit would be equal to
         27% of Executive's Final Average Compensation).

8.       TERMINATION OF EMPLOYMENT.

Executive's employment under this Agreement may be terminated under any of the
circumstances set forth in this Section 8.

(a)      DEATH.  Executive's employment shall terminate upon Executive's death.

(b)      TOTAL DISABILITY. The Company may terminate Executive's employment upon
         his becoming "Totally Disabled." For purposes of this Agreement,
         Executive shall be "Totally Disabled" if Executive is physically or
         mentally incapacitated so as to render Executive incapable of
         performing his usual and customary duties under this Agreement without
         reasonable accommodation. Executive's receipt of disability benefits
         under the Company's long-term disability benefits plan (the "LTD Plan")
         or receipt of Social Security disability benefits shall be deemed
         conclusive evidence of Total Disability for purpose of this Agreement;
         provided, however, that in the absence of Executive's receipt of such
         long-term disability benefits or Social Security benefits, the
         Company's Board of Directors may, in its reasonable discretion (but
         based upon appropriate medical evidence), determine that Executive is
         Totally Disabled.

(c)      TERMINATION BY THE COMPANY FOR CAUSE. The Company may terminate
         Executive's employment for "CAUSE". Such termination shall be effective
         as of the date specified in the written notice of termination provided
         to Executive.

         (i)      For purposes of this Agreement, the term "CAUSE" shall mean
                  any of the following: (A) conviction (including conviction on
                  a nolo contendere plea) of (I) a crime involving the
                  commission by Executive of a felony or (II) a criminal act
                  intended to result directly or indirectly in substantial gain
                  or personal enrichment to Executive at the expense of the
                  Company, but excluding any such conviction that results solely
                  from Executive's title or position with the Company and is not
                  based on his personal conduct; or (B) willful misconduct or
                  gross negligence in connection with the business of the
                  Company or an affiliate occurring after the Effective Date of
                  this Agreement that results in material damage to the Company
                  or the affiliate or to their respective businesses, whether
                  monetary or otherwise; or (C) persistent failure to observe or
                  perform Executive's duties and responsibilities or to comply
                  with Company policies as set forth in Section 5 hereof after
                  written notice thereof by the Company; or (D) breach of any of
                  the covenants set forth in Section 11 or Section 12 of this
                  Agreement.

         (ii)     Executive's employment shall in no event be considered to have
                  been terminated by the Company for Cause if the act or failure
                  to act upon which such termination

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                  is based was done or omitted to be done as a result of bad
                  judgment or negligence on Executive's part.

         (iii)    Any determination of Cause under this Agreement shall be made
                  by resolution duly adopted by the affirmative vote of all of
                  the non-employee members of the Board at a meeting of the
                  Board called and held for that purpose. Executive shall be
                  provided with reasonable notice of such meeting and shall be
                  given the opportunity to be heard before such vote is taken by
                  the Board.

(d)      TERMINATION DURING THE INITIAL TERM BY THE COMPANY WITHOUT CAUSE. The
         Company may terminate Executive's employment under this Agreement
         without Cause effective at any time before February 28, 2005, after
         providing sixty (60) days' prior written notice of termination to
         Executive.

(e)      TERMINATION BY EXECUTIVE FOR GOOD REASON. Executive may terminate his
         employment under this Agreement for "GOOD REASON" after providing sixty
         (60) days' written notice to the Company. Termination of employment by
         Executive for "GOOD REASON" shall be deemed to have occurred if
         Executive terminates his employment following the occurrence of any of
         the following:

         (i)      The Company's failure to comply with its obligations under
                  this Agreement in any material respect if such failure
                  continues for thirty (30) days after notice in writing from
                  Executive specifying such failure.

         (ii)     The assignment to Executive of any duties inconsistent with
                  the position of Chief Executive Officer (or such other
                  position as he shall hold at the time of such assignment) or
                  any significant adverse alteration in the nature or status of
                  Executive's responsibilities or the conditions of his
                  employment as Chief Executive Officer (or such other position
                  as he shall hold at the time of such alteration).

(f)      TERMINATION DURING THE INITIAL TERM BY EXECUTIVE OTHER THAN FOR GOOD
         REASON. Executive may terminate his employment under this Agreement
         effective at any time before February 28, 2005, for any reason other
         than "Good Reason" pursuant to Section 8(e) above, after providing
         sixty (60) days' prior written notice to the Company.

(g)      TERMINATION DURING THE EXTENSION TERM BY THE COMPANY WITHOUT CAUSE. The
         Company may terminate Executive's employment under this Agreement
         without Cause effective on or after February 28, 2005, after providing
         sixty (60) days' prior written notice of termination to Executive.

(h)      TERMINATION DURING THE EXTENSION TERM BY EXECUTIVE OTHER THAN FOR GOOD
         REASON. Executive may terminate his employment under this Agreement for
         any reason effective

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         on or after February 28, 2005, for any reason other than "Good Reason"
         pursuant to Section 8(e) above, after providing sixty (60) days' prior
         written notice to the Company.

(i)      NOTICE OF TERMINATION. Any termination by the Company or by Executive
         under this Agreement shall be communicated by notice of termination to
         the other party hereto. For purposes of this Agreement, a Notice of
         Termination shall mean a notice in writing which shall indicate the
         specific termination provision in this Agreement relied upon to
         terminate Executive's employment and, if applicable, shall set forth in
         reasonable detail the facts and circumstances claimed to provide a
         basis for termination of Executive's employment under the provision so
         indicated.

9.       COMPENSATION AND BENEFITS PAYABLE FOLLOWING TERMINATION OF EMPLOYMENT.

In the event that Executive's employment is terminated during the Employment
Period, Executive (or his surviving spouse, beneficiary or estate, as the case
may be) shall receive the following compensation and benefits:

(a)      DEATH. In the event that Executive's employment is terminated by reason
         of his death:

         (i)      STOCK OPTIONS. All outstanding unexercised stock options
                  granted to Executive under the Company's stock option plan
                  shall become fully vested and exercisable as of Executive's
                  date of death.

         (ii)     SUPPLEMENTAL RETIREMENT BENEFIT. Provided that such
                  termination of employment as a result of Executive's death
                  occurs on or after February 28, 2005, the Company shall
                  provide Executive's surviving spouse with the supplemental
                  retirement benefit in accordance with in Section 7 above.

(b)      TOTAL DISABILITY. In the event that Executive's employment is
         terminated by reason of his Total Disability pursuant to Section 8(b)
         above:

         (i)      STOCK OPTIONS. All outstanding unexercised stock options
                  granted to Executive under the Company's stock option plans
                  (A) shall become fully vested and exercisable as of his
                  employment termination date and (B) shall continue to be
                  exercisable until the option expiration date (determined
                  without regard to Executive's employment termination).

         (ii)     SUPPLEMENTAL RETIREMENT BENEFIT. Provided that such
                  termination of employment as a result of his Total Disability
                  occurs on or after February 28, 2005, the Company shall
                  provide Executive and his spouse with the supplemental
                  retirement benefit in accordance with Section 7 above.

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(c)      TERMINATION FOR CAUSE. In the event that Executive's employment is
         terminated on or after February 28, 2005, by the Company for Cause
         pursuant to Section 8(c) above, the Company shall provide Executive
         with the supplemental retirement benefit in accordance with Section 7
         above.

(c)      TERMINATION DURING INITIAL TERM BY THE COMPANY WITHOUT CAUSE OR BY
         EXECUTIVE FOR GOOD REASON. In the event that Executive's employment is
         terminated effective before February 28, 2005, by the Company without
         Cause, pursuant to Section 8(d) above or by Executive for Good Reason,
         pursuant to Section 8(e) above:

         (i)      CONTINUATION OF COMPENSATION. The Company shall continue to
                  pay Executive his Base Salary as in effect when the notice of
                  termination is given until the later of (A) February 28, 2005,
                  or (B) two years after the last day of the Employment Period;
                  provided, however, that such compensation and benefits shall
                  terminate upon Executive's death; and provided, further, that
                  the amount of such payments shall be reduced dollar-for-dollar
                  by all compensation the Executive earns during the period such
                  payments are to be made, including, without limitation,
                  compensation earned for services rendered as a consultant,
                  partner or member of any business organization.

         (ii)     CONTINUATION OF BENEFITS. The Company shall continue to
                  provide Executive with the benefits set forth in Section 6
                  above until February 28, 2005; provided, however, that such
                  benefits shall terminate on Executive's death or employment
                  before such date.

         (iii)    STOCK OPTIONS. All outstanding unexercised stock options
                  granted to Executive under the Company's stock option plans
                  (A) shall become fully vested and exercisable as of his
                  employment termination date and (B) shall continue to be
                  exercisable until the option expiration date (determined
                  without regard to Executive's employment termination).

         (iv)     SPECIAL RETIREMENT BENEFITS. Executive and his surviving
                  spouse will receive the supplemental retirement benefit in
                  accordance with Section 7.

(e)      TERMINATION DURING EXTENSION TERM BY THE COMPANY WITHOUT CAUSE OR BY
         EXECUTIVE FOR GOOD REASON. In the event that the Company terminates
         this Agreement effective on or after February 28, 2005, without Cause,
         pursuant to Section 8(g) above, or Executive terminates his employment
         for Good Reason, pursuant to Section 8(f) above:

           (i)    SEVERANCE PAYMENTS. The Company shall pay executive his Base
                  Salary as in effect when the notice of termination is given in
                  equal monthly installments until the earlier of (A) two years
                  after the last day of the Employment Period or (B) February
                  28, 2010; provided, however, that such payments shall

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                  terminate on Executive's death; and provided, further, that
                  the amount of such payments shall be reduced dollar-for-dollar
                  by all compensation the Executive earns during the period such
                  payments are to be made, including, without limitation,
                  compensation earned for services rendered as a consultant,
                  partner or member of any business organization.

         (ii)     SPECIAL RETIREMENT BENEFITS. Executive and his surviving
                  spouse will receive the supplemental retirement benefit in
                  accordance with Section 7 above.

(f)      TERMINATION DURING EXTENSION TERM BY EXECUTIVE OTHER THAN FOR GOOD
         REASON. In the event that Executive terminates this Agreement other
         than for Good Reason effective on or after February 28, 2005, pursuant
         to Section 8(h) above, Executive and his surviving spouse shall receive
         the supplemental retirement benefit in accordance with Section 7 above.

(g)      EARNED BUT UNPAID COMPENSATION. Upon termination of Executive's
         employment under Section 8 hereof, the Company shall pay Executive (or
         his personal representative) any accrued but unpaid Base Salary for
         services rendered to the date of termination, the amount of any
         compensation previously earned and deferred by Executive, any earned
         but unpaid incentive compensation for any calendar year ended prior to
         the year in which his employment terminates, any accrued but unpaid
         expenses required to be reimbursed under this Agreement, and any
         vacation accrued to the date of the termination. The Company shall pay
         all of the foregoing amounts, except for earned but unpaid incentive
         compensation, within 30 days after the date of termination; earned but
         unpaid incentive compensation for any calendar year ended prior to the
         year in which Executive's employment terminates shall be paid at the
         same time as the Company pays incentive compensation to its other
         senior executives.

(h)      OTHER COMPENSATION AND BENEFITS. Except as may otherwise be provided
         under this Agreement,

         (i)      Any benefits to which Executive may be entitled pursuant to
                  the plans, policies and arrangements referred to in Section
                  6(d) above shall be determined and paid in accordance with the
                  terms of such plans, policies and arrangements; and

         (ii)     Executive shall have no right to receive any other
                  compensation, or to participate in any other plan, arrangement
                  or benefit, with respect to future periods after such
                  termination or resignation.

10.      ADDITIONAL COMPENSATION FOLLOWING CHANGE OF CONTROL.

(a)      APPLICABILITY. Executive shall be entitled to the compensation and
         benefits described in this Section 10 if (i) a Change of Control (as
         hereinafter defined) occurs and (ii) on or

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         within three years after the Change of Control Effective Date (as
         hereinafter defined), Executive's employment is terminated by the
         Company without Cause pursuant to Section 8(d) or Section 8(g) above or
         Executive terminates his employment for Good Reason pursuant to Section
         8(f) above.

(b)      ADDITIONAL COMPENSATION. In addition to the compensation and benefits
         set forth in Section 9(d) or Section 9(e) above, the Company shall pay
         Executive an amount equal to the excess (if any) of:

         (i)      the product of (A) 2.99 TIMES (B) the sum of (I) an amount
                  equal to Executive's annual rate of Base Salary at the rate in
                  effect immediately prior his employment termination date and
                  (II) the amount of annual incentive compensation that the
                  Executive would have received had the Company achieved 100% of
                  the Company's incentive compensation plan targets for the
                  calendar year in which his employment termination date occurs;
                  over

         (ii)     the amount payable under Section 9(d) or Section 9(e) above;

         provided, however, that in no event shall the additional cash
         compensation payable under this Section 10(b) exceed an amount equal to
         one dollar ($1) less than the amount that would trigger the excise tax
         payable under Section 4999 of the Internal Revenue Code with respect to
         "excess parachute payments," as defined in Section 280G of the Code, it
         being the intention of the parties that the Company shall have no
         obligation to make any payment under this Section 10(b) to Executive
         upon termination of his employment that would result in the requirement
         to pay such excise tax. Such additional cash compensation shall be
         payable to Executive in a single lump sum within thirty (30) days after
         his employment termination.

(c)      DETERMINATION OF PAYMENT. Subject to the provisions of Section 10(d)
         the amount described in Section 10(b) shall be initially determined by
         a certified public accounting firm designated by the Company and agreed
         to by Executive (the "Accounting Firm") which determination shall
         provide detailed supporting calculations both to the Company and
         Executive. All fees and expenses of the Accounting Firm shall be borne
         by the Company. The determination of the Accounting Firm of the amount
         payable under Section 10(b) shall be binding on the Company and
         Executive, and no greater amount shall be owed by the Company.
         Notwithstanding the preceding sentence, if any amount is finally
         determined pursuant to Section 10(d) to be subject to the excise tax
         described in Section 10(b), the Executive shall repay excess amount to
         the Company within 90 days of such final determination.

(d)      NOTIFICATION OF CLAIMS BY IRS. Executive shall notify the Company in
         writing of any claim by the Internal Revenue Service that, if
         successful, would require the payment by Executive of the additional
         tax described in Section 10(b) (determined without regard to

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         the repayment obligation of the Executive). Such notification shall be
         given as soon as practicable, but no later than ten (10) business days,
         after Executive is informed in writing of such claim and whether
         Executive chooses to defend such claim at his own cost and expense or
         desires the Company to defend such claim. If Executive notifies the
         Company that he desires the Company to defend such claim, then the
         Company shall defend such claim at its cost and expense. If Executive
         elects to have the Company defend such claim, Executive shall apprise
         the Company of the notice of such claim and (i) give the Company any
         information reasonably requested by the Company relating to such claim,
         (ii) take such action in connection with contesting such claim as the
         Company shall reasonably request from time to time; and (iii) cooperate
         with the Company in good faith in order to effectively contest such
         claim.

(e)      ESTABLISHMENT OF TRUST. In the event that Executive notifies that
         Company that this Section 10(e) is to become effective, the Company
         shall, as soon as possible, but in no event later than five (5)
         business days after receipt of notice, take the following actions:

         (i)      The Company shall establish an irrevocable trust for the
                  purpose of providing funds for the payment of the supplemental
                  retirement benefits payable pursuant to Section 7 of this
                  Agreement. Such trust shall be a grantor trust containing
                  provisions, which are the same as, or similar to, the
                  provisions contained in the model "rabbi trust" set forth in
                  IRS Revenue Procedure 92-64. The Company shall pay all costs
                  relating to the establishment and maintenance of the trust and
                  the investment of funds held in such trust.

         (ii)     The Company shall make an irrevocable contribution to the
                  Trust in an amount that is sufficient to pay Executive (and
                  his surviving spouse) the supplemental retirement benefits
                  pursuant to Section 7 above.

(f)      DEFINITIONS. For purposes of this Section 10:

         (i)      "Change of Control" shall have the meaning set forth in
                  Appendix A attached to this Agreement.

         (ii)     "Change of Control Effective Date" means the date on which a
                  Change of Control occurs, provided that if (A) a Change of
                  Control occurs, (B) Executive's employment with the Company is
                  terminated prior to the date on which the Change of Control
                  occurs, and (C) such termination (I) was at the request of a
                  third party who has taken steps reasonably calculated to
                  effect a Change of Control or (II) otherwise arose in
                  connection or in anticipation of a Change of Control, then for
                  all purposes under this Section 10, the Change of Control
                  Effective Date shall mean the date immediately prior to the
                  date of such termination of employment.

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11.      RESTRICTIVE COVENANTS.

(a)      RESTRICTIONS. Executive covenants that, except in furtherance of his
         duties hereunder and as approved by the Board:

         (i)      COMPETITIVE ACTIVITY. During the Restricted Period (as
                  hereinafter defined), Executive shall not directly or
                  indirectly, own any interest in, participate or engage in,
                  assist, render any services (including advisory services) to,
                  become associated with, work for, serve (in any capacity
                  whatsoever, including, without limitation, as an employee,
                  consultant, advisor, agent, independent contractor, officer or
                  director) or otherwise become in any way or manner connected
                  with the ownership, management, operation, or control of, any
                  business, firm, corporation, partnership, trust or other
                  business or governmental entity (collectively, together with
                  any individual, a "Person") that engages in, or assists others
                  in engaging in or conducting, any business that deals,
                  directly or indirectly, in products or services similar to or
                  competitive with the Company's product line or services
                  anywhere in the world that the Company does business as of
                  Executive's last day of employment; provided, however, that
                  the restrictions set forth above shall not be deemed to
                  exclude the Executive from acting as director of a corporation
                  for the benefit of the Company with the consent of the Board;
                  and provided, further, that the restrictions set forth above
                  shall not be deemed to prohibit Executive from owning or
                  acquiring securities issued by any corporation whose
                  securities are listed on a national securities exchange or are
                  quoted on Nasdaq or the OTC Bulletin Board, provided that the
                  Executive at no time owns, directly or indirectly,
                  beneficially or otherwise, one (1%) percent or more of any
                  class of any such corporation's outstanding capital stock.

         (ii)     NON-SOLICITATION OF CUSTOMERS. During the Restricted Period,
                  Executive shall not knowingly provide or solicit to provide to
                  any Person any goods or services that are competitive with
                  those provided by the Company or that would be competitive
                  with the goods or services that the Company has planned to
                  provide. The term "customer" shall mean any Person to whom the
                  Company has provided goods and services during the last five
                  (5) years of Executive's employment by the Company.

         (iii)    NON-SOLICITATION OF COMPANY PERSONNEL. During the Restricted
                  Period, Executive will not solicit for employment, or attempt
                  to solicit, directly or by assisting others, any employee of
                  Company.

         (iv)     PROTECTED INFORMATION. Executive shall not divulge to others,
                  nor shall he use at any time during the Restricted Period or
                  thereafter, any confidential or trade secret information
                  obtained by him during the course of his employment with the
                  Company, including information relating to sales, salesmen,
                  sales volume or strategy, customers, formulas, processes,
                  methods, machines, manufactures,

                                       12
<PAGE>
                  compositions, ideas, improvements or inventions belonging to
                  or relating to the business of the Company, or its subsidiary
                  or affiliated companies.

         (v)      NON-DISPARAGEMENT. Executive covenants and agrees that during
                  the Restricted Period or at any time thereafter, Executive
                  shall not, directly or indirectly, in public or private,
                  deprecate, impugn, disparage, or make any remarks that would
                  tend to or be construed to tend to defame the Company or any
                  of its employees, members of its board of directors or agents,
                  nor shall Executive assist any other person, firm or company
                  in so doing.

(b)      DEFINITION OF "RESTRICTED PERIOD." For purposes of this Agreement, the
         term "Restricted Period" shall mean the Employment Period and the
         period of three (3) years after the end of the Employment Period.

(c)      ENFORCEMENT OF COVENANTS. Executive acknowledges that his breach of any
         of the restrictive covenants contained in this Section 11 may cause
         irreparable damage to the Company for which remedies at law would be
         inadequate. Accordingly, if Executive breaches or threatens to breach
         any of the provisions of this Section 11, the Company shall be entitled
         to appropriate injunctive relief, including, without limitation,
         preliminary and permanent injunctions, in any court of competent
         jurisdiction, restraining Executive from taking any action prohibited
         hereby. This remedy shall be in addition to all other remedies
         available to the Company at law or in equity. If any portion of this
         Section 11 is adjudicated to be invalid or unenforceable, this Section
         11 shall be deemed amended to delete therefrom the portion so
         adjudicated, such deletion to apply only with respect to the operation
         of this Section 11 in the jurisdiction in which such adjudication is
         made.

12.      PROPRIETARY PROPERTY.

(a)      OWNERSHIP OF PROPRIETARY PROPERTY. Executive agrees that any and all
         inventions, discoveries, investigations, know-how, trade secrets and
         developments or improvements in technology (collectively "Inventions")
         as well as any and all Proprietary Information (as defined in Section
         12(b)) created, developed, conceived of or discovered during the
         Employment Period (i) by Executive (solely or jointly with others)
         either (A) in the course of his employment or engagement, on the
         Company's time or with the Company's materials or facilities, or (B)
         relating to any subject matter with which his work for the Company is
         or may be concerned or to any business in which the Company or any of
         its subsidiaries or affiliated companies is involved, regardless of how
         or when he shall have created, developed, conceived, or discovered such
         Inventions or Proprietary Information (collectively, "Proprietary
         Property"), or (ii) by or for the Company, or (iii) by any independent
         Person and thereafter acquired by

                                       13
<PAGE>
         the Company, and which are within the Executive's knowledge or
         possession in the case of (i) above or that come into the Executive's
         knowledge or possession during the Restricted Period in the case of
         (ii) or (iii) above, shall be, if created, developed, conceived of or
         discovered by the Executive, promptly disclosed to the Company, or
         shall be, if otherwise developed or acquired by the Company, received
         by Executive as an employee, consultant or retiree of the Company and
         not in any way for his own benefit. Executive shall neither have nor
         obtain any right, title or interest in or to such Proprietary Property
         unless and until the Company shall expressly and in writing waive the
         rights that it has therein and thereto under the provisions of this
         Section. With respect to any and all Proprietary Property that is
         invented, created, written, developed, furnished or produced by
         Executive, or suggested by Executive to the Company, during the
         Employment Period, Executive does hereby agree that all such
         Proprietary Property shall be the exclusive property of the Company,
         and that the Executive shall neither have nor retain any right, title
         or interest, of any kind therein and thereto or in and to any results
         or proceeds therefrom. At any time, whether during or after the
         Employment Period, the Executive will, upon the request and at the
         expense of the Company, (A) obtain patents or copyrights on, or (B)
         permit the Company to patent or copyright, any such Proprietary
         Property, whichever (A) or (B) is appropriate, and/or (C) execute,
         acknowledge and deliver any and all assignments, instruments of
         transfer, or other documents, that the Company deems necessary or
         appropriate to transfer to and vest in the Company all right, title and
         interest in and to such Proprietary Property and to evidence the
         Company's ownership of such Proprietary Property, including, without
         limitation, taking all steps necessary to enable the Company to publish
         or protect said Proprietary Property by patents or otherwise in any and
         all countries and to render all such assistance as the Company may
         require in any patent office proceeding or litigation involving said
         Proprietary Property. Executive shall not, without limitation as to
         time or place, use any Proprietary Property except on Company business,
         during or after the Employment Period, nor disclose the same to any
         other Person or individual except for disclosure on Company business or
         as may be required by law.

(b)      DEFINITION OF PROPRIETARY INFORMATION. As used in this Agreement,
         "Proprietary Information" means any information about the affairs of
         the Company or any of its subsidiaries or affiliates, including,
         without limitation, trade secrets, trade "know-how", inventions,
         customer lists, client lists, business plans, operational methods,
         pricing policies, marketing plans, sales plans, identity of suppliers,
         trading positions, sales, profits or other financial information, which
         is confidential to the Company or any of its subsidiaries or affiliates
         or is not generally known in the relevant trade, regardless of whether
         Executive developed such information.

(c)      DISCLOSURE OF PROPRIETARY PROPERTY. During the Employment Period and
         thereafter, the Executive will not, directly or indirectly, lecture
         upon, publish articles concerning, use, disseminate, disclose, sell or
         offer for sale any Proprietary Property without the Company's prior
         written permission.

13.      INDEMNIFICATION.

(a)      INDEMNIFICATION AND PROCEDURE. The Company agrees that if the Executive
         is made a party, or is threatened to be made a party, to any action,
         suit or proceeding, whether civil, criminal, administrative or
         investigative (a "Proceeding"), by reason of the fact that he is

                                       14
<PAGE>
         or was a director, officer or employee of the Company or is or was
         serving at the request of the Company as a director, officer, member,
         employee or agent of another corporation, partnership, joint venture,
         trust or other enterprise, including services with respect to employee
         benefits plans, whether or not the basis of such Proceeding is the
         Executive's alleged action in an official capacity while serving as a
         director, officer, employee or agent, the Executive shall be
         indemnified and held harmless by the Company to the fullest extent
         legally permitted or authorized by the Company's certificate of
         incorporation or bylaws or resolutions of the Board or, if greater, by
         the laws of the Company's state of incorporation against all cost,
         expense, liability and loss (including without limitation, attorneys'
         fees, judgments, fines, ERISA excise taxes or penalties and amounts
         paid or to be paid in settlement) reasonably incurred or suffered by
         the Executive in connection therewith, and such indemnification shall
         continue as to the Executive even if he has ceased to be a director,
         member, employee or agent of the Company or other entity and shall
         inure to the benefit of the Executive's heirs, executors and
         administrators. The Company shall advance the Executive all reasonable
         costs and expenses incurred by him in connection with a Proceeding
         within twenty (20) days after receipt by the Company of a written
         request for such advance. Such request shall include an undertaking by
         the Executive to repay the amount of such advance if it shall
         ultimately be determined that he is not entitled to be indemnified
         against such costs and expenses.

(b)      NO PRESUMPTION. Neither the failure of the Company (including its
         Board, independent legal counsel or shareholders) to have made a
         determination prior to the commencement of any Proceeding concerning
         payment of amounts claimed by the Executive under paragraph (a) above
         that indemnification of the Executive is proper because he has met the
         applicable standard of conduct, nor a determination by the Company
         (including its Board, independent legal counsel or shareholders) that
         the Executive has not met such applicable standard of conduct, shall
         create a presumption that the Executive has not met the applicable
         standard of conduct.

(c)      D&O LIABILITY INSURANCE. The Company shall 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 executive officers.

14.      WITHHOLDING OF TAXES.

The Company shall withhold from any compensation and benefits payable under this
Agreement all applicable federal, state, local, or other taxes.

15.      ARBITRATION OF DISPUTES.

Except as provided in Section 11 above, any dispute, controversy or claim
arising out of or pursuant to this Agreement or the breach hereof shall be
settled by arbitration in the City of New York, State of New York. Such
arbitration shall be effected by arbitrators selected as hereinafter provided
and shall be conducted in accordance with the National Rules for the Resolution
of

                                       15
<PAGE>
Employment Disputes, existing at the date thereof, of the American Arbitration
Association. The dispute, controversy or claim shall be submitted to three
arbitrators, one arbitrator to be selected by the Company, one arbitrator to be
selected by the Executive and the third arbitrator to be selected by the two so
selected by the Company and the Executive, or if they cannot agree on a third,
by the American Arbitration Association. In the event that either the Company or
the Executive within one (1) month after notification of any demand for
arbitration hereunder, shall not have selected its arbitrator and given notice
thereof to the other party in accordance with the terms of Section 21 of this
Agreement, the arbitrator for such party shall be selected by the American
Arbitration Association. Meetings of the arbitrators shall be held in New York,
New York, or at such other place or places as may be agreed upon by the parties
and the arbitrators. The results of final determination of any such arbitration
proceedings shall be binding on the parties hereto and a judgment may be entered
in any court having jurisdiction.

16.      PAYMENT OF FEES, EXPENSES AND INTEREST.

If Executive is the prevailing party in any arbitration conducted under Section
15 hereof, the Company shall promptly reimburse Executive for all fees and
expenses (including legal, consultants' and other professional fees and
expenses) incurred by Executive in connection with such arbitration. In
addition, the Company shall pay Executive interest on any delayed payment under
this Agreement at the applicable federal rate provided for in Section
7872(f)(2)(A) of the Internal Revenue Code (or any successor to such section).

17.      NO CLAIM AGAINST ASSETS.

Nothing in this Agreement shall be construed as giving Executive any claim
against any specific assets of the Company or as imposing any trustee
relationship upon the Company in respect of Executive. Except as otherwise
provided in Section 10 (e), above, the Company shall not be required to
establish a special or separate fund or to segregate any of its assets in order
to provide for the satisfaction of its obligations under this Agreement.
Executive's rights under this Agreement shall be limited to those of an
unsecured general creditor of the Company and its affiliates.

18.      SUCCESSORS AND ASSIGNMENT.

Except as otherwise provided in this Agreement, this Agreement shall inure to
the benefit of and be binding upon the parties hereto and their respective
heirs, representatives, successors and assigns. The rights and benefits of
Executive under this Agreement are personal to him and no such right or benefit
shall be subject to voluntary or involuntary alienation, assignment or transfer;
provided, however, that nothing in this Section 18 shall preclude Executive from
designating a beneficiary or beneficiaries to receive any benefit payable on his
death.

19.       ENTIRE AGREEMENT; AMENDMENT.

                                       16
<PAGE>
This Agreement shall supersede any and all existing oral or written agreements,
representations, or warranties between Executive and the Company or any of its
subsidiaries or affiliated entities relating to the terms of Executive's
employment. It may not be amended except by a written agreement signed by both
parties.

20.      GOVERNING LAW.

This Agreement shall be governed by and construed in accordance with the laws of
the State of New York applicable to agreements made and to be performed in that
State, without regard to its conflict of laws provisions.

21.      NOTICES.

Any notice, consent, request or other communication made or given in connection
with this Agreement shall be in writing and shall be deemed to have been duly
given when delivered or mailed by registered or certified mail, return receipt
requested, or by facsimile or by hand delivery, to those persons listed below at
their following respective addresses or at such other address as each may
specify by notice to the others:

To the Company:

         Paxar Corporation
         105 Corporate Park Drive
         White Plains, New York 10604
         Attention: General Counsel

To Executive:

         Paul Griswold
         101 Deepwood Road
         Bedford, New York 10506

22.      MISCELLANEOUS.

(a)      NO SET-OFF, ETC. Except as otherwise provided in Section 9(d)(i) and
         Section 9(e)(i), the Company's obligation to make the payments provided
         for in this Agreement and otherwise perform its obligations under this
         Agreement shall not be affected by any set-off, counterclaim,
         recoupment, defense, or other claim, right, or action that the Company
         may have against Executive.

(b)      WAIVER. The failure of a party to insist upon strict adherence to any
         term of this Agreement on any occasion shall not be considered a waiver
         thereof or deprive that party

                                       17
<PAGE>
         of the right thereafter to insist upon strict adherence to that term or
         any other term of this Agreement.

(c)      SEVERABILITY. If any term or provision of this Agreement is declared
         illegal or unenforceable by any court of competent jurisdiction and
         cannot be modified to be enforceable, such term or provision shall
         immediately become null and void, leaving the remainder of this
         Agreement in full force and effect.

(d)      HEADINGS. Section headings are used herein for convenience of reference
         only and shall not affect the meaning of any provision of this
         Agreement.

(e)      RULES OF CONSTRUCTION. Whenever the context so requires, the use of the
         singular shall be deemed to include the plural and vice versa.

(f)      TERM OF PAYMENTS TO AND BENEFITS FOR SURVIVING SPOUSE. If Sharon
         Griswold, Executive's spouse on the date of this Agreement, is
         Executive's surviving spouse at the time of his death, then she shall
         be entitled to receive the payments to a surviving spouse under Section
         7 of this Agreement for the periods specified therein. However, if
         Sharon Griswold is not Executive's surviving spouse at the time of his
         death, for purposes of Section 7 of this Agreement, Executive's
         surviving spouse, if any, shall be entitled to receive the amounts
         payable to a surviving spouse under this Agreement until the earlier of
         (i) the date of such surviving spouse's death or (ii) the last date on
         which Sharon Griswold would have been entitled to receive such payment,
         the date of death of such surviving spouse being deemed to be the last
         day of Sharon Griswold's life expectancy used by the Company for
         purposes of preparing the Company's financial statements to determine
         the accrual of the Company's expenses resulting from such payments and
         benefits.

(g)      COUNTERPARTS. This Agreement may be executed in any number of
         counterparts, each of which so executed shall be deemed to be an
         original, and such counterparts will together constitute but one
         Agreement.

                             SIGNATURE PAGE FOLLOWS

                                       18
<PAGE>
IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of
the day and year set forth below.

<TABLE>
<S>                                                     <C>
PAXAR CORPORATION                                       EXECUTIVE

By:  /s/ Leo Benatar                                    /s/ Paul Griswold
     ------------------                                 ------------------
Name:  Leo Benatar                                      Paul Griswold
Title:  Director, for the Board of Directors

Date: October 5, 2001                                   Date: October 4, 2001
      ---------------                                         ---------------
</TABLE>

                                       19
<PAGE>
                                   APPENDIX A

                         DEFINITION OF CHANGE OF CONTROL

For purposes of Section 10 of this Agreement, "Change of Control" means:

(a)      The acquisition by any individual, entity, or group (within the meaning
         of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934,
         as amended (the "Exchange Act")) of beneficial ownership (within the
         meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or
         more of either (1) the then outstanding shares of common stock of the
         Company (the "Outstanding Company Common Stock") or (2) the combined
         voting power of the then outstanding voting securities of the Company
         entitled to vote generally in the election of directors (the
         "Outstanding Company Voting Securities"); provided, however, that for
         purposes of this clause (A), the following acquisitions of stock shall
         not result in a Change of Control: (1) any acquisition directly from
         the Company, (2) any acquisition by the Company, (3) any acquisition by
         any employee benefit plan (or related trust) sponsored or maintained by
         the Company or any corporation controlled by the Company, or (4) any
         acquisition by any corporation pursuant to a transaction that complies
         with clauses (1), (2), and (3) of subsection (c) of this definition; or

(b)      Individuals who, as of the date hereof, constitute the Company's Board
         of Directors (the "Incumbent Board") cease for any reason to constitute
         at least a majority of the Company's Board of Directors; provided,
         however, that any individual becoming a director subsequent to the date
         hereof whose election, or nomination for election, by the Company's
         shareholders was approved by a vote of at least a majority of the
         directors then comprising the Incumbent Board shall be considered as
         though such individual were a member of the Incumbent Board, but
         excluding, for this purpose, any such individual whose initial
         assumption of office occurs as a result of an actual or threatened
         election contest with respect to the election or removal of directors
         or other actual or threatened solicitation of proxies or consents by or
         on behalf of a Person other than the Company's Board of Directors; or

                                       20
<PAGE>
(c)      Consummation of a reorganization, merger, or consolidation or sale or
         other disposition of all or substantially all of the assets of the
         Company (a "Business Combination"), in each case, unless following such
         Business Combination, (1) all or substantially all of the individuals
         and entities who were the beneficial owners, respectively, of the
         Outstanding Company Common Stock and Outstanding Company Voting
         Securities immediately prior to such Business Combination beneficially
         own, directly or indirectly, more than 60% of, respectively, the
         outstanding shares of common stock and the combined voting power of the
         then outstanding voting securities entitled to vote generally in the
         election of directors, as the case may be, of the corporation resulting
         from such Business Combination, including, without limitation, a
         corporation that as a result of such transaction owns the Company or
         all or substantially all of the Company's assets either directly or
         through one or more subsidiaries (any such corporation being referred
         to herein as a "Resulting Corporation"), in substantially the same
         proportions as their ownership of the Outstanding Company Common Stock
         and Outstanding Company Voting Securities, as the case may be,
         immediately prior to such Business Combination, (2) no Person
         (excluding any employee benefit plan (or related trust) of the Company
         or a Resulting Corporation) beneficially owns, directly or indirectly,
         30% or more of, respectively, the outstanding shares of common stock of
         the Resulting Corporation or the combined voting power of the then
         outstanding voting securities of such Resulting Corporation except to
         the extent that such ownership existed prior to the Business
         Combination, and (3) at least a majority of the members of the board of
         directors of the Resulting Corporation were members of the Incumbent
         Board at the time of the execution of the initial agreement, or of the
         action of the Board, providing for such Business Combination; or

(d)      Approval by the shareholders of the Company of a complete liquidation
         or dissolution of the Company.

                                       21<PAGE>

                                                                    EXHIBIT 10.2

                                                                  EXECUTION COPY

                                    AGREEMENT

         AGREEMENT, dated as of September 1, 2001, by and between PAXAR
CORPORATION (the "Company"), and VICTOR HERSHAFT ("Executive").

1.       PURPOSE.

The Company acknowledges and recognizes the value of Executive's services, which
services are of special, unique and extraordinary character. The Company desires
to continue to employ Executive and retain his abilities and services as an
employee through December 31, 2001 and, for two years thereafter, to continue to
obtain his advice as a consultant to the Company. In recognition of his long and
faithful service to the Company, the Company also desires to provide Executive
and his spouse with the retirement benefits specified in this Agreement.

2.       1989 EMPLOYMENT AGREEMENT SUPERSEDED.

(a)      TERMINATION OF 1989 AGREEMENT. Executive and the Company originally
         entered into an Employment Agreement dated as of February 13, 1989, and
         amended as of October 1, 1998, and extended from time to time
         thereafter (as amended and extended, the "1989 AGREEMENT"). The parties
         have agreed that the terms and conditions set forth in this Agreement
         shall supersede any and all provisions of the 1989 Agreement and any
         other existing oral or written agreements, representations, or
         warranties, between Executive and the Company, and that such agreements
         shall be null and void and of no further force and effect, except as
         otherwise specifically provided in this Agreement.

(b)      SATISFACTION OF PRIOR OBLIGATIONS. Notwithstanding the termination of
         the 1989 Agreement, as of the date hereof (the "EFFECTIVE DATE"), the
         Company shall be required to pay Executive in accordance with the terms
         of 1989 Agreement (i) any accrued but unpaid base salary under the 1989
         Agreement for services rendered before the Effective Date, (ii) the
         amount of any compensation earned and deferred under the 1989 Agreement
         by Executive before the Effective Date, if any, and (iii) any expenses
         required to be reimbursed under the 1989 Agreement that have accrued,
         but are unpaid as of the Effective Date.

3.       EMPLOYMENT.

The Company hereby agrees to continue to employ Executive as an employee and a
consultant, and Executive hereby agrees to continue to be employed by the
Company as an employee and a consultant, upon the terms, and subject to the
conditions, set forth in this Agreement.

                                       1

<PAGE>
4.       PERIOD OF EMPLOYMENT AND CONSULTANCY.

(a)      EMPLOYMENT PERIOD. The parties agree that Executive's last day of
         employment with the Company as an employee will be December 31, 2001,
         unless his employment is terminated earlier in accordance with Section
         9 below. As used in this Agreement, the term "EMPLOYMENT PERIOD" refers
         to Executive's period of employment as an employee from the Effective
         Date until his last day of such employment.

(b)      CONSULTING PERIOD. Provided that this Agreement shall not have been
         terminated in accordance with Section 9 below, the period for which
         Executive shall act as a consultant hereunder shall commence on January
         1, 2002, and shall end on December 31, 2003. As used in this Agreement,
         the phrase "CONSULTING PERIOD" refers to Executive's period of
         employment as a consultant hereunder from January 1, 2002, until his
         last day of employment as a consultant.

5.       MEMBERSHIP ON BOARD OF DIRECTORS.

Executive shall continue to serve as a director of the Company until expiration
of his current term and until his successor is duly elected and qualified.
Thereafter, the Company shall have no obligation to include Executive in the
management slate for election as a director or to recommend his election at any
meeting of stockholders. Executive may resign as a director of the Company at
any time upon written notice to the company without liability or otherwise
affecting the Company's obligations under this Agreement. In the event of
Executive's resignation as a director, the Company (and not the Executive) shall
make the public announcement of such resignation, which announcement shall be
subject to Executive's prior review and approval, which approval shall not be
unreasonably withheld.

6.       POSITIONS; DUTIES AND RESPONSIBILITIES.

(a)      DIRECTOR. As a member of the Company's Board of Directors (the
         "BOARD"), Executive shall have the same duties and responsibilities as
         other members of the Board.

(b)      EMPLOYEE.  As an employee of the Company, during the Employment Period:

         (i)      Executive shall continue to serve as an officer of the Company
                  in the same capacity and with the same titles as that in which
                  he served on the Effective Date, and as such officer,
                  Executive shall have the same duties and responsibilities as
                  he had on the Effective Date and such other duties and
                  responsibilities as he and the Company's Chief Executive
                  Officer may from time to time agree upon.

          (ii)    Executive shall serve the Company faithfully, to devote such
                  business time, attention and energies as is necessary or
                  appropriate to the performance of his duties, and to perform
                  the duties under this Agreement to the best of his abilities.

                                       2
<PAGE>
         (iii)    Executive shall (i) comply with all applicable laws, rules and
                  regulations, and all requirements of all applicable
                  regulatory, self-regulatory, and administrative bodies; (ii)
                  comply with the Company's rules, procedures, policies,
                  requirements, and directions; and (iii) not engage in any
                  other business or employment without the written consent of
                  the Company, except as otherwise specifically provided herein.

(c)      CONSULTANT. As a consultant of the Company, during the Consulting
         Period:

         (i)      Executive shall perform such consulting services as may be
                  requested from time to time by the Company's Board or its
                  Chief Executive Officer, consistent with Executive's previous
                  experience and qualifications as a senior executive officer
                  and employee of the Company.

         (ii)     Executive shall perform such consulting services at such time
                  or times during normal business hours and at such locations as
                  Executive and the Company shall mutually agree, provided that
                  Executive shall not be required to devote more than ten (10)
                  hours in any week to the performance of such consulting
                  services, it being understood that if Executive performs such
                  services for fewer than ten (10) hours in any week, the
                  difference shall not be carried over to a subsequent week.

7.       COMPENSATION AND BENEFITS.

Executive shall receive the following compensation and benefits during the
Employment Period and the Consulting Period (together the "TERM").

(a)      BASE SALARY. During the Employment Period, the Company shall pay
         Executive a base salary at the annual rate in effect immediately prior
         to the Effective Date of this Agreement ("Base Salary") in accordance
         with the compensation policy applicable to the Company's senior
         executive officers. Base Salary shall be paid during the Employment
         Period in accordance with the Company's standard payroll practice for
         senior executive officers. During the Consulting Period, the Company
         shall continue to pay Executive the Base Salary in arrears in equal
         monthly installments on the last business day of each month.

(b)      ANNUAL INCENTIVE COMPENSATION. For the Company's fiscal year ending
         December 31, 2001, Executive shall be eligible to receive incentive
         compensation under the incentive compensation plan in effect and
         applicable to Executive on the Effective Date.

(c)      STOCK OPTIONS. All outstanding unexercised stock options granted to
         Executive under the Company's stock option plans (A) shall become fully
         vested and exercisable as of December 31, 2001, and (B) shall continue
         to be exercisable by Executive until the option expiration date
         (determined without regard to Executive's employment termination).

                                       3
<PAGE>
(d)      BENEFIT PLANS, FRINGE BENEFITS AND VACATIONS. During the Employment
         Period, Executive shall be eligible to participate in or receive
         benefits under any pension plan, 401(k) savings plan, nonqualified
         deferred compensation plan, supplemental executive retirement plan,
         medical and dental benefits plan, life insurance plan, short-term and
         long-term disability plans, supplemental and/or incentive compensation
         plans, or any other employee benefit or fringe benefit plan, generally
         made available by the Company to senior executive officers in
         accordance with the eligibility requirements of such plans and subject
         to the terms and conditions set forth in this Agreement. During the
         Consulting Period, Executive shall be eligible to participate in the
         Company's medical and dental benefits plan and life and disability
         insurance plan on the same basis as the Company's senior executive
         officers.

(e)      COMPANY-PROVIDED AUTOMOBILE. Until the earlier of the expiration of the
         Term or the expiration of the lease of the automobile that Executive is
         using on the Effective Date, the Company shall continue to provide
         Executive with the full-time use of such automobile and payment of
         related expenses at the same style and level as provided to Executive
         immediately prior to the Effective Date.

(f)      EXPENSE REIMBURSEMENT. During the Term, the Company shall promptly
         reimburse Executive for the ordinary and necessary business expenses
         incurred by Executive in the performance of his duties under this
         Agreement in accordance with the Company's customary practices
         applicable to senior executive officers.

8.       SUPPLEMENTAL RETIREMENT BENEFIT.

The Company shall pay Executive a supplemental retirement benefit as follows:

(a)      CALCULATION OF BENEFIT. The supplemental retirement benefit will be an
         amount equal to 60% of Executive's Final Average Compensation. For
         purposes of this Agreement, Executive's "FINAL AVERAGE COMPENSATION"
         shall be equal to the average of Executive's Total Compensation for the
         three (3) calendar years during the period from and including 1996 to
         and including 2001 (or any part of 2001) in which Executive earned the
         highest Total Compensation. "Total Compensation" means the total Base
         Salary and incentive compensation earned by Executive for a calendar
         year, including compensation earned in one calendar year and paid or
         payable in a subsequent calendar year.

(b)      PAYMENT OF BENEFIT TO EXECUTIVE. The Company shall pay the supplemental
         retirement benefit to Executive until his death in equal monthly
         installments commencing on the first day of the first calendar month
         after Executive's 65th birthday. Executive may elect by written notice
         to the Company to commence the supplemental retirement benefit prior to
         his 65th birthday, but no earlier than his 60th birthday, subject to a
         3% per year reduction in the percentage of his Final Average
         Compensation that he is entitled to receive (e.g., if Executive elects
         to commence receipt of the supplemental benefit

                                       4
<PAGE>
         immediately after his 64th birthday, his supplemental retirement
         benefit would be equal to 57% of his Final Average Compensation).

(c)      SPOUSE'S BENEFIT IF PAYMENTS HAVE COMMENCED. In the event of
         Executive's death after commencement of payments of such supplemental
         retirement benefit to Executive, the Company shall pay to his surviving
         spouse until her death or such earlier date as determined in accordance
         with Section 23(f) below an amount equal to 50% of the supplemental
         retirement benefit determined under Section 8(a) above in equal monthly
         installments. Such payments will continue without interruption at the
         adjusted rate following Executive's date of death.

(d)      SPOUSE'S BENEFIT IF PAYMENTS HAVE NOT COMMENCED. In the event of
         Executive's death before commencement of payments of the supplemental
         retirement benefit, commencing on the first day of the first calendar
         month after Executive would have attained age 65, the Company shall pay
         Executive's surviving spouse, until her death or such earlier date as
         determined in accordance with Section 23(f) below, in equal monthly
         installments an amount equal to 50% of the supplemental retirement
         benefit that would have been payable to Executive. Executive's
         surviving spouse may elect by written notice to the Company to commence
         the supplemental retirement benefit prior to the date on which
         Executive would have attained age 65, but not earlier than the date on
         which Executive would have attained age 60, subject to a 3% per year
         reduction in percentage of Executive's Final Average Compensation that
         she is entitled to receive (e.g., if Executive's surviving spouse
         elects to commence payment of the supplemental retirement benefit
         immediately after Executive would have attained age 64, the
         supplemental retirement benefit would be equal to 27% of Executive's
         Final Average Compensation).

(e)      BENEFIT IMMEDIATELY VESTED. The Company shall be required to pay the
         supplemental retirement benefit to Executive and his surviving spouse
         in accordance with this Section 8, regardless of the reason for
         termination of Executive's employment under this Agreement, including a
         termination by the Company for Cause under Section 9(c).

9.       TERMINATION OF AGREEMENT.

Executive's employment under this Agreement as an employee or consultant may be
terminated prior to December 31, 2003 (the "EXPIRATION DATE") under any of the
circumstances set forth in this Section 9.

(a)      DEATH. Executive's employment as an employee or consultant shall
         terminate upon Executive's death.

(b)      TOTAL DISABILITY. The Company may terminate Executive's employment as
         an employee or consultant upon his becoming "Totally Disabled." For
         purposes of this Agreement, Executive shall be "Totally Disabled" if
         Executive is physically or mentally incapacitated so as to render
         Executive incapable of performing his usual and customary duties under
         this Agreement without reasonable accommodation. Executive's receipt of
         disability

                                       5
<PAGE>
         benefits under the Company's long-term disability benefits plan (the
         "LTD Plan") or receipt of Social Security disability benefits shall be
         deemed conclusive evidence of Total Disability for purpose of this
         Agreement; provided, however, that in the absence of Executive's
         receipt of such long-term disability benefits or Social Security
         benefits, the Company's Board of Directors (the "Board") may, in its
         reasonable discretion (but based upon appropriate medical evidence),
         determine that Executive is Totally Disabled.

(c)      TERMINATION BY THE COMPANY FOR CAUSE. The Company may terminate
         Executive's employment as an employee or consultant for "Cause". Such
         termination shall be effective as of the date specified in the written
         notice of termination provided to Executive.

         (i)      For purposes of this Agreement, the term "Cause" shall mean
                  any of the following: (A) conviction (including conviction on
                  a nolo contendere plea) of (I) a crime involving the
                  commission by Executive of a felony or (II) a criminal act
                  intended to result directly or indirectly in substantial gain
                  or personal enrichment to Executive at the expense of the
                  Company, but excluding any such conviction that results solely
                  from Executive's title or position with the Company and is not
                  based on his personal conduct; or (B) willful misconduct or
                  gross negligence in connection with the business of the
                  Company or an affiliate occurring after the Effective Date of
                  this Agreement that results in material damage to the Company
                  or the affiliate or to their respective businesses, whether
                  monetary or otherwise; or (C) persistent failure to observe or
                  perform Executive's duties and responsibilities or to comply
                  with Company policies as set forth in Section 6 hereof after
                  written notice thereof by the Company and, if capable of cure,
                  failure to cure the same within thirty (30) days after such
                  notice; or (D) breach of any of the covenants set forth in
                  Section 12 or 13 of this Agreement.

         (ii)     Executive's employment shall in no event be considered to have
                  been terminated by the Company for Cause if the act or failure
                  to act upon which such termination is based was done or
                  omitted to be done as a result of bad judgment or negligence
                  on Executive's part.

(d)      TERMINATION BY EXECUTIVE. Executive may terminate his employment under
         this Agreement at any time before the Expiration Date for any reason
         after providing thirty (30) days' prior written notice to the Company.

(e)      NOTICE OF TERMINATION. Any termination by the Company or by Executive
         under this Agreement shall be communicated by notice of termination to
         the other party hereto. For purposes of this Agreement, a Notice of
         Termination shall mean a notice in writing which shall indicate the
         specific termination provision in this Agreement relied upon to
         terminate Executive's employment and, if applicable, shall set forth in
         reasonable detail the facts and circumstances claimed to provide a
         basis for termination of Executive's employment under the provision so
         indicated.

                                       6
<PAGE>
10.      COMPENSATION AND BENEFITS PAYABLE FOLLOWING TERMINATION PRIOR TO THE
         EXPIRATION DATE.

In the event that Executive's employment is terminated prior to the Expiration
Date, Executive (or his surviving spouse, beneficiary or estate, as the case may
be) shall receive the following compensation and benefits:

(a)      DEATH OR TOTAL DISABILITY. In the event that Executive's employment is
         terminated by reason of his death as provided in Section 9(a) above or
         his Total Disability as provided in Section 9(b) above:

         (i)      STOCK OPTIONS. All outstanding unexercised stock options
                  granted to Executive under the Company's stock option plans
                  (A) shall become fully vested and exercisable as of his
                  employment termination date and (B) shall continue to be
                  exercisable until the option expiration date (determined
                  without regard to Executive's employment termination).

         (i)      SUPPLEMENTAL RETIREMENT BENEFIT. The Company shall provide
                  Executive with the supplemental retirement benefit set forth
                  in Section 8 above and shall have no further obligations under
                  Section 7 hereof.

(b)      TERMINATION BY COMPANY FOR CAUSE OR BY EXECUTIVE. In the event that
         Executive's employment as an employee or consultant is terminated by
         the Company for Cause pursuant to Section 9(c) above or by Executive
         pursuant to Section 9(d) above, the Company shall provide Executive
         with the supplemental retirement benefit set forth in Section 8 above
         and shall have no further obligations under Section 7 hereof.

(c)      TERMINATION FOR ANY OTHER REASON. If the Company terminates Executive's
         employment under this Agreement, whether as an employee or as a
         consultant, for a reason not set forth in Section 9, or if Executive
         terminates his employment, whether as an employee or as a consultant,
         as a result of a material breach of this Agreement by the Company, then
         notwithstanding such termination of employment, the Company shall
         continue to make the payments and provide the benefits set forth in
         Section 7 until the earliest of (i) the Expiration Date, (ii) the date
         of Executive's death, or (iii) the date of Executive's Total
         Disability, and the Company shall provide Executive with the
         supplemental retirement benefit set forth in Section 8 above.

 (d)     ANNUAL INCENTIVE COMPENSATION. In the event that Executive's employment
         is terminated for any reason prior to December 31, 2001, the Company
         shall pay Executive (or his personal representative) an amount equal to
         the pro rata portion (based on the number of days of employment prior
         to the termination date) of the annual incentive compensation that
         would have been payable to Executive if he had continued in employment
         through the end of the calendar year. Such amount will be paid at the
         same time and in the same manner as the annual incentive compensation
         for such year is paid to other senior executive officers.

                                       7
<PAGE>
(e)      EARNED BUT UNPAID COMPENSATION. Upon termination of Executive's
         employment under Section 9 hereof, the Company shall pay Executive (or
         his personal representative) any accrued but unpaid Base Salary for
         services rendered to the date of termination, the amount of any
         compensation previously earned and deferred by Executive, any earned
         but unpaid incentive compensation for any calendar year ended prior to
         the year in which is employment terminates, any accrued but unpaid
         expenses required to be reimbursed under this Agreement, and any
         vacation accrued to the date of the termination. The Company shall pay
         all of the foregoing amounts, except for earned but unpaid incentive
         compensation, within 30 days after the date of termination; earned but
         unpaid incentive compensation for any calendar year ended prior to the
         year in which Executive's employment terminates shall be paid at the
         same time as the Company pays incentive compensation to its other
         senior executives.

(f)      OTHER COMPENSATION AND BENEFITS. Except as may otherwise be provided
         under this Agreement,

         (i)      any benefits to which Executive may be entitled pursuant to
                  the plans, policies and arrangements referred to in Section
                  7(d) above shall be determined and paid in accordance with the
                  terms of such plans, policies and arrangements; and

         (iii)    Executive shall have no right to receive any other
                  compensation, or to participate in any other plan, arrangement
                  or benefit, with respect to future periods after such
                  termination or resignation.

11.      ESTABLISHMENT OF TRUST FOLLOWING CHANGE OF CONTROL.

         If Executive notifies the Company within thirty (30) days after a
         Change of Control (as defined in Appendix A hereto) occurs that this
         Section 11 is to become effective, the Company shall, as soon as
         possible, but in no event later than five (5) business days after
         receipt of such notice, take the following actions:

          (i)     The Company shall establish an irrevocable trust for the
                  purpose of providing funds for the payment of the supplemental
                  retirement benefits payable pursuant to Section 8 of this
                  Agreement. Such trust shall be a grantor trust containing
                  provisions which are the same as, or are similar to, the
                  provisions contained in the model "rabbi trust" set forth in
                  IRS Revenue Procedure 92-64. The Company shall pay all costs
                  relating to the establishment and maintenance of the trust and
                  the investment of funds held in such trust.

         (ii)     The Company shall make an irrevocable contribution to the
                  Trust in an amount that is sufficient to pay Executive (and
                  his surviving spouse) the supplemental retirement benefit
                  pursuant to Section 8 above

                                       8
<PAGE>
         The Company acknowledges that regardless of the establishment of such
         trust, the Company shall continue to be liable for payment of the
         supplemental retirement benefits payable pursuant to Section 8 of this
         Agreement in the event that the funds held in such trust are
         insufficient to make all payments of such supplemental retirement
         benefit provided for in Section 8.

12.      RESTRICTIVE COVENANTS.

(a)      RESTRICTIONS. Executive covenants that, except in furtherance of his
         duties hereunder and as approved by the Board or Chief Executive
         Officer:

         (i)      COMPETITIVE ACTIVITY. During the Restricted Period (as
                  hereinafter defined), Executive shall not directly or
                  indirectly, own any interest in, participate or engage in,
                  assist, render any services (including advisory services) to,
                  become associated with, work for, serve (in any capacity
                  whatsoever, including, without limitation, as an employee,
                  consultant, advisor, agent, independent contractor, officer or
                  director) or otherwise become in any way or manner connected
                  with the ownership, management, operation, or control of, any
                  business, firm, corporation, partnership, trust or other
                  business or governmental entity (collectively, together with
                  any individual, a "PERSON") that engages in, or assists others
                  in engaging in or conducting, any business that deals,
                  directly or indirectly, in products or services similar to or
                  competitive with the Company's product line or services
                  anywhere in the world that the Company does business as of
                  Executive's last day of employment; provided, however, that
                  the restrictions set -------- forth above shall not be deemed
                  to exclude the Executive from acting as director of a
                  corporation for the benefit of the Company with the consent of
                  the Board; and provided, -------- further, that the
                  restrictions set forth above shall not be deemed to prohibit
                  Executive from owning or acquiring securities issued by any
                  corporation whose securities are listed on a national
                  securities exchange or are quoted on Nasdaq or the OTC
                  Bulletin Board, provided that -------- the Executive at no
                  time owns, directly or indirectly, beneficially or otherwise,
                  one (1%) percent or more of any class of any such
                  corporation's outstanding capital stock.

         (ii)     NON-SOLICITATION OF CUSTOMERS. During the Restricted Period,
                  Executive shall not knowingly provide or solicit to provide to
                  any Person any goods or services that are competitive with
                  those provided by the Company or that would be competitive
                  with the goods or services that the Company has planned to
                  provide. The term "CUSTOMER" shall mean any Person to whom the
                  Company has provided goods and services during the last five
                  (5) years of Executive's employment by the Company.

         (iii)    NON-SOLICITATION OF COMPANY PERSONNEL. During the Restricted
                  Period, Executive will not solicit for employment, or attempt
                  to solicit, directly or by assisting others, any employee of
                  Company with whom Executive had contact during Executive's
                  employment with the Company. For the purposes of this

                                       9
<PAGE>
                  paragraph, "contact" means any interaction whatsoever between
                  Executive and the other employee.

         (iv)     PROTECTED INFORMATION. Executive shall not divulge to others,
                  nor shall he use at any time during the Restricted Period or
                  thereafter, any confidential or trade secret information
                  obtained by him during the course of his employment with the
                  Company, including information relating to sales, salesmen,
                  sales volume or strategy, customers, formulas, processes,
                  methods, machines, manufactures, compositions, ideas,
                  improvements or inventions belonging to or relating to the
                  business of the Company, or its subsidiary or affiliated
                  companies.

         (v)      NON-DISPARAGEMENT. Executive covenants and agrees that during
                  the Restricted Period or at any time thereafter, Executive
                  shall not, directly or indirectly, in public or private,
                  deprecate, impugn, disparage, or make any remarks that would
                  tend to or be construed to tend to defame the Company or any
                  of its employees, members of its board of directors or agents,
                  nor shall Executive assist any other person, firm or company
                  in so doing.

(b)      DEFINITION OF "RESTRICTED PERIOD." For purposes of this Agreement, the
         term "RESTRICTED PERIOD" shall mean the Term and the period of five (5)
         years after the end of the Term.

(c)      COMPANY'S COVENANT. The Company covenants and agrees that during the
         Restricted Period or at any time thereafter, the Company shall not,
         directly or indirectly, in public or private, deprecate, impugn,
         disparage, or make any remarks that would tend to or be construed to
         tend to defame Executive, nor shall the Company assist any other
         person, firm or company in so doing.

(d)      ENFORCEMENT OF COVENANTS. Executive and the Company acknowledge that
         his or its breach of any of the restrictive covenants contained in this
         Section 12 may cause irreparable damage to the Company or the
         Executive, as applicable, for which remedies at law would be
         inadequate. Accordingly, if Executive or the Company breaches or
         threatens to breach any of the provisions of this Section 12, the
         Company or the Company, as the case may be, shall be entitled to
         appropriate injunctive relief, including, without limitation,
         preliminary and permanent injunctions, in any court of competent
         jurisdiction, restraining Executive or the Company, as the case may be,
         from taking any action prohibited hereby. This remedy shall be in
         addition to all other remedies available to the Company or Executive at
         law or in equity. If any portion of this Section 12 is adjudicated to
         be invalid or unenforceable, this Section 12 shall be deemed amended to
         delete therefrom the portion so adjudicated, such deletion to apply
         only with respect to the operation of this Section 12 in the
         jurisdiction in which such adjudication is made.

13.      PROPRIETARY PROPERTY.

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<PAGE>
(a)      OWNERSHIP OF PROPRIETARY PROPERTY. Executive agrees that any and all
         inventions, discoveries, investigations, know-how, trade secrets and
         developments or improvements in technology (collectively "Inventions")
         as well as any and all Proprietary Information (as defined in Section
         13(b)) created, developed, conceived of or discovered during the
         Employment Period (i) by Executive (solely or jointly with others)
         either (A) in the course of his employment or engagement, on the
         Company's time or with the Company's materials or facilities, or (B)
         relating to any subject matter with which his work for the Company is
         or may be concerned or to any business in which the Company or any of
         its subsidiaries or affiliated companies is involved, regardless of how
         or when he shall have created, developed, conceived, or discovered such
         Inventions or Proprietary Information (collectively, "PROPRIETARY
         PROPERTY"), or (ii) by or for the Company, or (iii) by any independent
         Person and thereafter acquired by the Company, and which are within the
         Executive's knowledge or possession in the case of (i) above or that
         come into the Executive's knowledge or possession during the Restricted
         Period in the case of (ii) or (iii) above, shall be, if created,
         developed, conceived of or discovered by the Executive, promptly
         disclosed to the Company, or shall be, if otherwise developed or
         acquired by the Company, received by Executive as an employee,
         consultant or retiree of the Company and not in any way for his own
         benefit. Executive shall neither have nor obtain any right, title or
         interest in or to such Proprietary Property unless and until the
         Company shall expressly and in writing waive the rights that it has
         therein and thereto under the provisions of this Section. With respect
         to any and all Proprietary Property that is invented, created, written,
         developed, furnished or produced by Executive, or suggested by
         Executive to the Company, during the Term, Executive does hereby agree
         that all such Proprietary Property shall be the exclusive property of
         the Company, and that the Executive shall neither have nor retain any
         right, title or interest, of any kind therein and thereto or in and to
         any results or proceeds therefrom. At any time, whether during or after
         the Term, the Executive will, upon the request and at the expense of
         the Company, (A) obtain patents or copyrights on, or (B) permit the
         Company to patent or copyright, any such Proprietary Property,
         whichever (A) or (B) is appropriate, and/or (C) execute, acknowledge
         and deliver any and all assignments, instruments of transfer, or other
         documents, that the Company deems necessary or appropriate to transfer
         to and vest in the Company all right, title and interest in and to such
         Proprietary Property and to evidence the Company's ownership of such
         Proprietary Property, including, without limitation, taking all steps
         necessary to enable the Company to publish or protect said Proprietary
         Property by patents or otherwise in any and all countries and to render
         all such assistance as the Company may require in any patent office
         proceeding or litigation involving said Proprietary Property. Executive
         shall not, without limitation as to time or place, use any Proprietary
         Property except on Company business, during or after the Employment
         Period, nor disclose the same to any other Person or individual except
         for disclosure on Company business or as may be required by law.

(b)      DEFINITION OF PROPRIETARY INFORMATION. As used in this Agreement,
         "Proprietary Information" means any information about the affairs of
         the Company or any of its subsidiaries or affiliates, including,
         without limitation, trade secrets, trade "know-how", inventions,
         customer lists, client lists, business plans, operational methods,
         pricing

                                       11
<PAGE>
         policies, marketing plans, sales plans, identity of suppliers, trading
         positions, sales, profits or other financial information, which is
         confidential to the Company or any of its subsidiaries or affiliates or
         is not generally known in the relevant trade, regardless of whether
         Executive developed such information.

(c)      DISCLOSURE OF PROPRIETARY PROPERTY. During the Term and thereafter, the
         Executive will not, directly or indirectly, lecture upon, publish
         articles concerning, use, disseminate, disclose, sell or offer for sale
         any Proprietary Property without the Company's prior written
         permission.

14.      INDEMNIFICATION.

(a)      INDEMNIFICATION AND PROCEDURES. The Company agrees that if the
         Executive is made a party, or is threatened to be made a party, to any
         action, suit or proceeding, whether civil, criminal, administrative or
         investigative (a "Proceeding"), by reason of the fact that he is or was
         a director, officer or employee of the Company or is or was serving at
         the request of the Company as a director, officer, member, employee or
         agent of another corporation, partnership, joint venture, trust or
         other enterprise, including services with respect to employee benefits
         plans, whether or not the basis of such Proceeding is the Executive's
         alleged action in an official capacity while serving as a director,
         officer, employee or agent, the Executive shall be indemnified and held
         harmless by the Company to the fullest extent legally permitted or
         authorized by the Company's certificate of incorporation or bylaws or
         resolutions of the Board or, if greater, by the laws of the Company's
         state of incorporation against all cost, expense, liability and loss
         (including without limitation, attorneys' fees, judgments, fines, ERISA
         excise taxes or penalties and amounts paid or to be paid in settlement)
         reasonably incurred or suffered by the Executive in connection
         therewith, and such indemnification shall continue as to the Executive
         even if he has ceased to be a director, member, employee or agent of
         the Company or other entity and shall inure to the benefit of the
         Executive's heirs, executors and administrators. The Company shall
         advance the Executive all reasonable costs and expenses incurred by him
         in connection with a Proceeding within twenty (20) days after receipt
         by the Company of a written request for such advance. Such request
         shall include an undertaking by the Executive to repay the amount of
         such advance if it shall ultimately be determined that he is not
         entitled to be indemnified against such costs and expenses.

(b)      NO PRESUMPTION. Neither the failure of the Company (including its
         Board, independent legal counsel or shareholders) to have made a
         determination prior to the commencement of any Proceeding concerning
         payment of amounts claimed by the Executive under paragraph (a) above
         that indemnification of the Executive is proper because he has met the
         applicable standard of conduct, nor a determination by the Company
         (including its Board, independent legal counsel or shareholders) that
         the Executive has not met such applicable standard of conduct, shall
         create a presumption that the Executive has not met the applicable
         standard of conduct.

                                       12
<PAGE>
(c)      D&O LIABILITY INSURANCE. The Company shall continue and maintain a
         directors' and officers' liability insurance policy covering the
         Executive to the extent the Company provides such coverage for its
         other current and former senior executive officers and directors.

15.      WITHHOLDING OF TAXES.

The Company shall withhold from any compensation and benefits payable under this
Agreement all applicable federal, state, local, or other taxes.

16.      ARBITRATION OF DISPUTES.

Except as provided in Section 13 above, any dispute, controversy or claim
arising out of or pursuant to this Agreement or the breach hereof shall be
settled by arbitration in the City of New York, State of New York. Such
arbitration shall be effected by arbitrators selected as hereinafter provided
and shall be conducted in accordance with the National Rules for the Resolution
of Employment Disputes, existing at the date thereof, of the American
Arbitration Association. The dispute, controversy or claim shall be submitted to
three arbitrators, one arbitrator to be selected by the Company, one arbitrator
to be selected by the Executive and the third arbitrator to be selected by the
two so selected by the Company and the Executive, or if they cannot agree on a
third, by the American Arbitration Association. In the event that either the
Company or the Executive within one (1) month after notification of any demand
for arbitration hereunder, shall not have selected its arbitrator and given
notice thereof to the other party in accordance with the terms of Section 22 of
this Agreement, the arbitrator for such party shall be selected by the American
Arbitration Association. Meetings of the arbitrators shall be held in New York,
New York, or at such other place or places as may be agreed upon by the parties
and the arbitrators. The results of final determination of any such arbitration
proceedings shall be binding on the parties hereto and a judgment may be entered
in any court having jurisdiction.

17.      PAYMENT OF FEES, EXPENSES AND INTEREST.

If any arbitration is conducted under Section 16 hereof, the arbitrator(s) shall
have the right, in his (their) discretion, to award to the prevailing party all
fees and expenses (including legal, consultants' and other professional fees and
expenses) incurred by the prevailing party in connection with such arbitration.
In addition, if Executive is the prevailing party, the Company shall pay
Executive interest on any delayed payment under this Agreement at the applicable
federal rate provided for in Section 7872(f)(2)(A) of the Internal Revenue Code
(or any successor to such section).

18.      NO CLAIM AGAINST ASSETS.

Nothing in this Agreement shall be construed as giving Executive any claim
against any specific assets of the Company or as imposing any trustee
relationship upon the Company in respect of Executive. Except as provided in
Section 11 above, the Company shall not be required to establish a special or
separate fund or to segregate any of its assets in order to provide for the

                                       13
<PAGE>
satisfaction of its obligations under this Agreement. Executive's rights under
this Agreement shall be limited to those of an unsecured general creditor of the
Company and its affiliates.

19.      SUCCESSORS AND ASSIGNMENT.

Except as otherwise provided in this Agreement, this Agreement shall inure to
the benefit of and be binding upon the parties hereto and their respective
heirs, representatives, successors and assigns. The rights and benefits of
Executive under this Agreement are personal to him, and no such right or benefit
shall be subject to voluntary or involuntary alienation, assignment or transfer;
provided, however, that nothing in this Section 19 shall preclude Executive from
designating a beneficiary or beneficiaries to receive any benefit payable on his
death.

20.       ENTIRE AGREEMENT; AMENDMENT.

This Agreement shall supersede any and all existing oral or written agreements,
representations, or warranties between Executive and the Company or any of its
subsidiaries or affiliated entities relating to the terms of Executive's
employment. It may not be amended except by a written agreement signed by both
parties.

21.      GOVERNING LAW.

This Agreement shall be governed by and construed in accordance with the laws of
the State of New York applicable to agreements made and to be performed in that
State, without regard to its conflict of laws provisions.

22.      NOTICES.

Any notice, consent, request or other communication made or given in connection
with this Agreement shall be in writing and shall be deemed to have been duly
given when delivered or mailed by registered or certified mail, return receipt
requested, or by facsimile or by hand delivery, to those persons listed below at
their following respective addresses or at such other address as each may
specify by notice to the others:

To the Company:

         Paxar Corporation
         105 Corporate Park Drive
         White Plains, New York 10604
         Attention: General Counsel

To Executive:

         Victor Hershaft
         One Hunting Trail
         Armonk, NY  10504

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<PAGE>
23.      MISCELLANEOUS.

(a)      NO SET-OFF, ETC. The Company's obligation to make the payments provided
         for in this Agreement and otherwise perform its obligations under this
         Agreement shall not be affected by any set-off, counterclaim,
         recoupment, defense, or other claim, right, or action that the Company
         may have against Executive.

(b)      WAIVER. The failure of a party to insist upon strict adherence to any
         term of this Agreement on any occasion shall not be considered a waiver
         thereof or deprive that party of the right thereafter to insist upon
         strict adherence to that term or any other term of this Agreement.

(c)      SEVERABILITY. If any term or provision of this Agreement is declared
         illegal or unenforceable by any court of competent jurisdiction and
         cannot be modified to be enforceable, such term or provision shall
         immediately become null and void, leaving the remainder of this
         Agreement in full force and effect.

(d)      HEADINGS. Section headings are used herein for convenience of reference
         only and shall not affect the meaning of any provision of this
         Agreement.

(e)      RULES OF CONSTRUCTION. Whenever the context so requires, the use of the
         singular shall be deemed to include the plural and vice versa.

(f)      TERM OF PAYMENTS TO AND BENEFITS FOR SURVIVING SPOUSE. If Yvette
         Hershaft, Executive's spouse on the date of this Agreement, is
         Executive's surviving spouse at the time of his death, then she shall
         be entitled to receive the payments to and benefits provided for a
         surviving spouse under Section 8 of this Agreement for the periods
         specified therein. However, if Yvette Hershaft is not Executive's
         surviving spouse at the time of his death, for purposes of Section 8 of
         this Agreement, Executive's surviving spouse, if any, shall be entitled
         to receive the amounts payable to and benefits provided for a surviving
         spouse under this Agreement until the earlier of (i) the date of such
         surviving spouse's death or (ii) the last date on which Yvette Hershaft
         would have been entitled to receive such payment or benefit, the date
         of death of such surviving spouse being deemed to be the last day of
         Yvette Hershaft's life expectancy used by the Company for purposes of
         preparing the Company's financial statements to determine the accrual
         of the Company's expenses resulting from such payments and benefits.

(g)      COUNTERPARTS. This Agreement may be executed in any number of
         counterparts, each of which so executed shall be deemed to be an
         original, and such counterparts will together constitute but one
         Agreement.

                             SIGNATURE PAGE FOLLOWS

                                       15
<PAGE>
IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of
the day and year set forth below.

<TABLE>
<S>                                                     <C>
PAXAR CORPORATION                                       EXECUTIVE

/s/ Leo Benatar                                         /s/ Victor Hershaft
---------------                                         -------------------
Leo Benatar                                             Victor Hershaft
Director
On Behalf of the Board of Directors

Date:  October 31, 2001                                 Date:  October 30, 2001
       ----------------                                        ----------------
</TABLE>

                                       16
<PAGE>
                                   APPENDIX A

                         DEFINITION OF CHANGE OF CONTROL

For purposes of Section 11 of this Agreement, "CHANGE OF CONTROL" means:

(a)      The acquisition by any individual, entity, or group (within the meaning
         of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934,
         as amended (the "Exchange Act")) of beneficial ownership (within the
         meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or
         more of either (1) the then outstanding shares of common stock of the
         Company (the "OUTSTANDING COMPANY COMMON STOCK") or (2) the combined
         voting power of the then outstanding voting securities of the Company
         entitled to vote generally in the election of directors (the
         "OUTSTANDING COMPANY VOTING SECURITIES"); provided, however, that for
         purposes of this clause (A), the following acquisitions of stock shall
         not result in a Change of Control: (1) any acquisition directly from
         the Company, (2) any acquisition by the Company, (3) any acquisition by
         any employee benefit plan (or related trust) sponsored or maintained by
         the Company or any corporation controlled by the Company, or (4) any
         acquisition by any corporation pursuant to a transaction that complies
         with clauses (1), (2), and (3) of subsection (c) of this definition; or

(b)      Individuals who, as of the date hereof, constitute the Company's Board
         of Directors (the "INCUMBENT BOARD") cease for any reason to constitute
         at least a majority of the Company's Board of Directors; provided,
         however, that any individual becoming a director subsequent to the date
         hereof whose election, or nomination for election, by the Company's
         shareholders was approved by a vote of at least a majority of the
         directors then comprising the Incumbent Board shall be considered as
         though such individual were a member of the Incumbent Board, but
         excluding, for this purpose, any such individual whose initial
         assumption of office occurs as a result of an actual or threatened
         election contest with respect to the election or removal of directors
         or other actual or threatened solicitation of proxies or consents by or
         on behalf of a Person other than the Company's Board of Directors; or

(c)      Consummation of a reorganization, merger, or consolidation or sale or
         other disposition of all or substantially all of the assets of the
         Company (a "BUSINESS COMBINATION"), in each case, unless following such
         Business Combination, (1) all or substantially all of the individuals
         and entities who were the beneficial owners, respectively, of the
         Outstanding Company Common Stock and Outstanding Company Voting
         Securities immediately prior to such Business Combination beneficially
         own, directly or indirectly, more than 60% of, respectively, the
         outstanding shares of common stock and the combined voting power of the
         then outstanding voting securities entitled to vote generally in the
         election of directors, as the case may be, of the corporation resulting
         from such Business Combination, including, without limitation, a
         corporation that as a result of such transaction owns the Company or
         all or substantially all of the Company's assets either directly or
         through one or more subsidiaries (any such corporation being referred
         to

                                       17
<PAGE>
         herein as a "RESULTING CORPORATION"), in substantially the same
         proportions as their ownership of the Outstanding Company Common Stock
         and Outstanding Company Voting Securities, as the case may be,
         immediately prior to such Business Combination, (2) no Person
         (excluding any employee benefit plan (or related trust) of the Company
         or a Resulting Corporation) beneficially owns, directly or indirectly,
         30% or more of, respectively, the outstanding shares of common stock of
         the Resulting Corporation or the combined voting power of the then
         outstanding voting securities of such Resulting Corporation except to
         the extent that such ownership existed prior to the Business
         Combination, and (3) at least a majority of the members of the board of
         directors of the Resulting Corporation were members of the Incumbent
         Board at the time of the execution of the initial agreement, or of the
         action of the Board, providing for such Business Combination; or

(d)      Approval by the shareholders of the Company of a complete liquidation
         or dissolution of the Company.

                                       18

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