<Page>
EXHIBIT 10.61
TABLE OF CONTENTS
<Table>
<Caption>
PAGE
----
Introduction ................................................1
Words with Special Meanings .................................2
Eligibility .................................................4
Vesting .....................................................4
Normal, Early or Late Retirement ............................5
Normal Retirement .........................................5
Early Retirement ..........................................5
Late Retirement ...........................................5
Your Normal Retirement Benefit ..............................6
Your Early Retirement Benefit ...............................8
Your Late Retirement Benefit ................................9
Payment of Your Benefit .....................................9
Normal Form of Payment ....................................9
Optional Forms of Payment ................................10
Small Amounts ............................................11
Electing a Form of Payment ...............................11
If You Leave the Company ...................................12
If You Become Disabled .....................................12
If You Should Die ..........................................13
Loss of Benefits ...........................................14
Social Security Benefits ...................................14
Claiming Your Benefits .....................................15
What Else You Should Know ..................................15
Assignment of Benefits ...................................15
Maximum Benefits .........................................16
Top Heavy Provisions .....................................16
Employment Rights ........................................17
Future of the Plan .......................................17
Pension Benefit Guaranty Corporation .....................18
Your Rights Under ERISA ....................................19
Administration of the Plan .................................21
About This Booklet .........................................22
</Table>
<Page>
INTRODUCTION
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The Pension Plan for Employees of Chase Corporation was designed to add to your
income at retirement. Chase Corporation values your continued service and
loyalty and is committed to providing quality benefits while you are employed
and after you retire. For this reason, the Pension Plan is financed completely
through contributions by Chase Corporation. This Pension Plan offers you a
source of income when you retire in addition to personal savings and Social
Security benefits.
The Plan's special features include:
- - Retirement benefits whether you choose to retire at normal, early or late
retirement age
- - A choice of several benefit payment options
- - Disability benefits if you become disabled before age 65 and have met the
vesting requirements and
- - Benefits to your beneficiary if you die before retirement and are vested.
This Summary Plan Description (SPD) will explain your benefits and rights under
the Pension Plan for Employees of Chase Corporation as amended in 1995 and as it
applies to employees of Chase Corporation who retire or terminate after December
31, 1995.
We hope you will find this information helpful and will discuss it with your
family. If you have any questions after reading this SPD, please contact the
Plan Administrator at the Company's main office.
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WORDS WITH SPECIAL MEANINGS
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This booklet contains special words and phrases that apply to the Plan. The
following definitions will help you understand how the Plan works.
ACCRUED BENEFIT is your monthly retirement benefit payable at normal retirement
age based on a formula which uses your years of credited service with the
Company and your compensation. (See page 6 for the actual benefit formula.)
AVERAGE MONTHLY COMPENSATION means the total of your compensation for the 60
consecutive months out of the most recent 120 months of employment during which
your compensation was highest, divided by 60. (If you received compensation for
less than 60 months, the average will be calculated using the total number of
months you received compensation.)
BREAK-IN-SERVICE is a Plan year in which you are credited with 500 or fewer
hours of service. If you are vested at the time of a break-in-service, your
vesting service and credited service will be restored for purposes of the Plan
once you resume working 500 or more hours of service a year. If you are not
vested at the time of a break-in-service, your pre-break vesting service and
credited service will be restored at the completion of the break, provided the
length of your break is less than five years or less than your years of vesting
service prior to the break, whichever is greater.
COMPENSATION means your total base earnings excluding any overtime pay,
commissions, bonus payments, severance pay or any other additions to or
deductions from regular base compensation.
CREDITED SERVICE is used to determine the amount of your benefit. You will earn
one year of credited service for each Plan year during which you work 1,000 or
more hours of service. If you have less than 1,000 hours of service during a
Plan year, you will be credited with 1/10th of a year for each 100 hours of
service that you earn.
<Page>
You will receive a partial year of credited service if you did not complete
1,000 hours of service during the 10-month period between March 1,1987 and
December 31,1987. Your service during this period will be based on your actual
hours of service earned during that period divided by 833.33 rounded to the next
highest 1/10th of a year (but not exceeding one year) . Before March 1,1987, you
earned a year of credited service in accordance with the Plan provisions in
effect at that time.
FINAL-3 COMPENSATION means your average monthly earnings for the last three
consecutive Plan years ending with the last year used in determining your
average monthly compensation. Final-3 compensation does not include compensation
greater than the monthly covered compensation level for that Plan year.
The covered compensation level is a 35-year average of the maximum amount of
wages used to calculate Social Security benefits. Covered compensation levels
vary by your year of birth and change each calendar year. The following are
examples of 1996 annual covered compensation levels:
<Table>
<Caption>
YEAR OF BIRTH 1996 COVERED COMPENSATION
------------- -------------------------
1931 $ 27,576
1941 45,204
1951 57,444
1961 62,592
</Table>
You may contact the Plan Administrator for more information on the covered
compensation level.
HOURS OF SERVICE means the number of hours for which you are paid or are
entitled to be paid by the Company (e.g., paid holidays, vacation, sickness,
disability, paid layoff, jury duty, military duty, an absence for maternity or
paternity leave and any similar non-working time). These hours of service are
used to determine your credited service and vesting service.
PLAN YEAR means the period from January 1 through December 31. Before 1988, a
Plan year was the period from March 1 through February 28. There was a short
Plan year for the 10-month period between March 1, 1987 through December 31,
1987.
<Page>
VESTING SERVICE determines your right to receive benefits if you terminate
employment before retirement. You will earn a year of vesting service for each
Plan year in which you are credited with 1,000 or more hours of service. Between
February 28, 1987 and December 31,1987, you earned up to two years of vesting
service if you had 1,000 hours of service in the 12-month period ending on
February 28,1987 and in the 12-month period ending on December 31, 1987. (Prior
to March 1, 1975, you earned a year of vesting service for each full or partial
year of credited service.)
ELIGIBILITY
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You are eligible for this Plan on the January 1 following completion of six
months of employment, provided you are at least 21 years of age and are
scheduled to work (or actually work) 1,000 or more hours per year.
VESTING
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Vesting means you have a right to receive a retirement benefit from the Plan.
You become vested in your benefits under the Plan once you have completed five
years of vesting service. If you leave the Chase Corporation before completion
of five years of vesting service, you will forfeit your entire accrued benefit.
If the Plan is, or again becomes, top heavy, you will become vested according to
the schedule on page 16.
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NORMAL, EARLY OR LATE RETIREMENT
You may retire and receive a benefit from the Company at normal, early or late
retirement. Your benefit will be payable after you retire.
NORMAL RETIREMENT
The normal retirement age for most participants is age 65. If you were age 60 or
over when you were hired, your normal retirement age is the earlier of the date
you complete five years of vesting service or the fifth anniversary of the date
you began participating in the Plan. You are eligible to receive normal
retirement benefits beginning on your normal retirement date which is the first
of the month on or after your normal retirement age.
EARLY RETIREMENT
You are eligible for early retirement once you are at least age 55 and have
completed five or more years of vesting service. You may elect to receive
benefit payments on the first day of any month after your early retirement date.
LATE RETIREMENT
You are eligible for a late retirement benefit if you continue to work beyond
your normal retirement age. You may elect to receive monthly benefits on the
first day of any month after your late retirement date or a lump sum payment any
time after your normal retirement age, if you continue working.
Federal law requires that you begin receiving benefit payments by the April 1
following the calendar year in which you reach age 70-1/2, even if you have not
yet retired.
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YOUR NORMAL RETIREMENT BENEFIT
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The amount you receive from the Plan will equal your vested accrued benefit as
determined on the date of your retirement or termination. IF YOU WERE EMPLOYED
BEFORE MAY 1,1995 OR ARE COVERED BY A COLLECTIVE BARGAINING AGREEMENT, your
accrued benefit is determined using the following formula:
The sum of (A minus B) plus C where:
(A) (1.5%) of your average monthly compensation, TIMES your years of credited
service (to a maximum of 35 years) MINUS
(B) (.6%) of your final-3 compensation, TIMES your years of credited service
(to a maximum of 35 years) PLUS
(C) (.8%) of your average monthly compensation, TIMES your years of credited
service in excess of 35 years (to a maximum of 5 years)
The amount determined under (13) will not be more than 50% of the amount
determined under (A).
IF YOU BECAME EMPLOYED ON OR AFTER MAY 1,1995 AND YOU ARE NOT COVERED BY A
COLLECTIVE BARGAINING AGREEMENT, your accrued benefit is determined using the
following formula:
The sum of (A minus B) plus C where:
(A) (.75%) of your average monthly compensation, TIMES your years of credited
service (to a maximum of 35 years) MINUS
(B) (.3%) of your final-3 compensation, TIMES your years of credited service
(to a maximum of 35 years) PLUS
(C) (.4%) of your average monthly compensation, TIMES your years of credited
service in excess of 35 years (to a maximum of 5 years)
The amount determined under (B) will not be more than 50% of the amount
determined under (A).
<Page>
EXAMPLE 1
For example, assume you retire in 1996 at age 65, earning $27,000 each year
and with 10 years of credited service. If your pay remains constant, your
average monthly compensation will equal $2,250. Your final-3 compensation will
also equal $2,250. So the accrued benefit in this example will equal $203 per
month as calculated below:
A = (1.5% times $2,250) TIMES 10 years = $338
B = (.6% times $2,300) TIMES 35 years = $483
C = (.8% times $4,000) TIMES 5 years = $160
So, (A minus B) plus C equals ($338 minus $135) plus $0, or $203.
EXAMPLE 2
Assume you retire in 1996 at age 65, earning $48,000 and with 40 years of
credited service. If your pay remains constant, your average monthly
compensation will equal $4,000. Your final-3 compensation will be equal to
$2,300 (the covered compensation level of $27,600 divided by 12). So the accrued
benefit in this example will equal $1,777 per month as calculated below:
A = (1.5% times $4,000) TIMES 35 years = $2,100
B = (.6% times $2,250) TIMES 10 years = $135
C = (.8% times $2,250) TIMES 0 years = $0
So, (A minus B) plus C equals ($2,100 minus $483) plus $160, or $1,777.
IF YOU WERE HIRED ON OR AFTER MAY 1,1995 AND YOU ARE NOT COVERED BY A COLLECTIVE
BARGAINING AGREEMENT, YOUR ACCRUED BENEFIT WILL BE BASED ON THE BENEFIT FORMULA
DESCRIBED AT THE BOTTOM OF PAGE 6.
If the Plan becomes top heavy, your accrued benefit will be determined under the
formula described on page 16 and if the top heavy formula gives you a larger
benefit than the normal retirement benefit formula, you will receive the larger
benefit.
<Page>
YOUR EARLY RETIREMENT BENEFIT
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Your early retirement benefit is calculated using the normal retirement benefit
formula based on your credited service and compensation at the time of your
early retirement. You may elect to have benefit payments start on the first of
any month after you retire, up to your normal retirement date.
However, if you retire early and begin receiving benefits before your normal
retirement date, your monthly normal retirement benefit will be reduced for each
full month between your normal retirement date and the date your payments begin.
This reduction is made because your monthly benefit will be paid earlier and
over a longer period of time.
The following chart shows the percentage of your monthly accrued benefit that
you would receive at various ages:
<Table>
<Caption>
YOUR EXACT AGE WHEN PERCENTAGE
RETIREMENT BENEFITS START PAID
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65 100.0%
64 93.3%
63 86.6%
62 80.0%
61 73.3%
60 66.6%
59 63.3%
58 60.0%
57 56.6%
56 53.3%
55 50.0%
</Table>
For example, suppose you retire at age 60 and your monthly accrued benefit
payable from this Plan at early retirement is $800.You can postpone your
benefit payments until your normal retirement date and receive your full benefit
of $800 per month.
If you elect to have your payments start as soon as you retire, you would
receive a monthly benefit of approximately $533. This equals your monthly
benefit of $800, multiplied by 66.6%.
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YOUR LATE RETIREMENT BENEFIT
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You may also retire after your normal retirement age. Your late retirement
benefit will be equal to the greater of:
1) the actuarial equivalent of your accrued benefit as determined on your normal
retirement date, or
2) your accrued benefit calculated using your credited service and compensation
at the time you retire.
Your late retirement benefit will not be less than the normal retirement benefit
you could have received from the Plan.
If your late retirement benefit is paid as a lump sum, this payment will equal
the value of your accrued benefit at the time you receive payment. Any benefits
you receive after the lump sum payment will be reduced to reflect the value of
the lump sum you received.
PAYMENT OF YOUR BENEFIT
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NORMAL FORM OF PAYMENT
IF YOU ARE SINGLE AND WERE EITHER EMPLOYED BEFORE MAY 1,1995 OR ARE COVERED BY A
COLLECTIVE BARGAINING AGREEMENT, when you retire and do not choose an optional
form of payment, you will receive a monthly benefit for the rest of your life
including 120 guaranteed monthly benefit payments. If you die before receiving
120 monthly benefit payments, your beneficiary will receive the remaining
guaranteed monthly payments. This is called a 10-year certain and continuous
annuity.
IF YOU ARE SINGLE AND BECAME EMPLOYED ON OR AFTER MAY 1, 1995 AND ARE NOT
COVERED BY A COLLECTIVE BARGAINING AGREEMENT, when you retire and do not choose
an optional form of payment, you will receive a monthly benefit for the rest of
your life. No benefits would be paid upon your death. This is called a life
annuity.
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IF YOU ARE MARRIED when you retire and do not choose an optional form of benefit
payment, you will automatically receive a qualified joint and survivor annuity.
Under this method, a reduced monthly benefit will be payable to you during your
lifetime, and after your death, 50% of this reduced amount will continue to your
spouse for the rest of his or her lifetime. Payments during your lifetime are
reduced because a qualified joint and survivor annuity provides a benefit
payable to your spouse after your death for his or her lifetime. The amount of
the reduced benefit you will receive under the qualified joint and survivor
annuity depends on your age and the age of your spouse on your retirement date.
OPTIONAL FORMS OF PAYMENT
You may wish to take your benefit in a form other than the normal form. The Plan
gives you the option of choosing one of the forms described below. However, if
you are married and elect one of the optional forms of payment, or if you wish
to designate a person other than your spouse as your beneficiary, you must
obtain your spouse's written, notarized consent on the appropriate form. The
Plan Administrator must receive your spouse's written and notarized consent
before payments begin.
The life annuity is a monthly benefit paid during your lifetime. If you elect
this form of payment, your monthly benefit payments will be higher than under
the joint and survivor annuity or the certain and continuous annuity options.
However, with the life annuity, all benefits stop after your death.
THE JOINT AND SURVIVOR ANNUITY means you will receive a reduced benefit during
your lifetime, with a portion of your reduced benefit (either 50%, 66-2/3%, or
100%, depending on your election) continued after your death to your spouse, or
any other person you name as your beneficiary, for the rest of his or her
lifetime. The reduction will be based on your age and your spouse's or
beneficiary's age when your benefits begin. If your designated beneficiary is
someone other than your spouse, you may not elect a joint and survivor annuity
option which reduces the amount of the benefit payable to you to less than 50%
of the value of your total benefit.
<Page>
THE CERTAIN AND CONTINUOUS ANNUITY provides a benefit (reduced for employees
hired on or after May 1, 1995) for the rest of your life, with payments
guaranteed for either 60 or 120 months (depending on your election). If you die
before receiving 60 or 120 benefit payments, your beneficiary will continue to
receive the same benefit you were receiving for the remainder of the guaranteed
payment period. If you elect to receive 60 guaranteed monthly payments, your
monthly payment will be higher than the monthly benefit you would receive if you
elect 120 guaranteed monthly payments.
THE LUMP SUM PAYMENT provides you with a single, lump sum payment instead of
monthly retirement benefits. Your benefit will be based on the present value of
your monthly accrued benefit as determined using interest rate assumptions
specified in the Plan.
If you elect a lump sum, your payment will be subject to mandatory federal tax
withholding unless you transfer your payment in a direct rollover to an
Individual Retirement Account or to another employer plan.
SMALL AMOUNTS
If the value of your accrued benefit is $3,500 or less when you terminate or
retire, you (or in the event of your death, your surviving spouse) will receive
a single, lump sum payment.
ELECTING A FORM OF PAYMENT
You must notify the Plan Administrator, in writing, of your intent to retire and
your form of payment within 90 days prior to your retirement. Your payment
election must be approved and confirmed by the Plan Administrator at least 30
days before you begin receiving benefits.
<Page>
IF YOU LEAVE THE COMPANY
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If you leave the Company and have at least five years of vesting service, you
will be entitled to a benefit from the Plan at your normal retirement age. Your
accrued benefit will be determined according to the normal retirement benefit
formula using your years of credited service and your compensation as of your
termination date.
Your benefit will be payable on your normal retirement date. However, you may
elect to receive a reduced benefit on the first of any month after you reach age
55, provided you had completed five years of vesting service when you
terminated employment.
Your benefit will be paid according to the normal form of payment at the time
you begin receiving payments, unless you elect an optional form of payment. If
you are married, your spouse must provide his or her written, notarized consent
to your election of an optional form of payment.
IF YOU BECOME DISABLED
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If you become totally and permanently disabled before age 65, you may be
eligible for a monthly disability benefit, provided you were vested on the date
of your disability. Payment of your monthly disability benefit will begin on
the first day of the month following your termination of employment due to your
disability.
"Total and permanent disability" means you are physically or mentally incapable
of performing any job within or outside the Company for wages or profit (except
for purposes of rehabilitation). You must submit satisfactory evidence of your
disability to the Plan Administrator to receive this benefit. The Company can
also request certification that you continue to be disabled at any time.
If your disability is caused by addiction to alcohol or narcotics, or is the
result of a self-inflicted injury, involvement in a criminal enterprise or
service in the armed forces of any country in which a disability benefit is
payable, it is not covered by the Plan.
<Page>
Your disability benefit will be calculated according to your accrued benefit at
the time you become disabled. Your disability benefit will be reduced for
commencement prior to age 65.
As long as you are disabled, payments will continue until you become eligible
for early retirement. At that time, you will begin receiving any early
retirement benefits for which you are eligible. If you die, your spouse may be
eligible for continued benefits based on the form of payment you elected for
your disability benefit.
Once you are no longer permanently disabled, your disability benefits will stop.
If you return to work at Chase Corporation, you may become eligible for a normal
or early retirement benefit. In this case, your vesting service and credited
service prior to your date of disability will be restored. However, the period
of time you were collecting a disability benefit will not be counted as credited
service or vesting service for calculating these benefits.
IF YOU SHOULD DIE
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If you should die before retirement from the Company and you are vested in your
benefit, your beneficiary will be eligible to receive a benefit from the Plan .
If you are married, your beneficiary will be your spouse unless you elect
otherwise and your spouse provides his or her written, notarized consent to your
beneficiary election.
Your beneficiary may receive a lump sum payment based on the present value of
100% of your monthly accrued benefit determined as of your date of death.
If your beneficiary is your spouse, he or she may receive a reduced monthly
benefit instead of a lump sum. The amount of the monthly benefit is equal to 50%
of the amount that you would have received under the 50% joint and survivor
annuity if you had terminated employment on your last day of work and survived
to your earliest retirement date allowed under the Plan.
<Page>
Your spouse may begin receiving payments on the first day of any month after
your death or, if later, the earliest date you could have begun receiving
benefit payments. Your spouse must make an election in order to receive payment
in a lump sum instead of the normal monthly pre-retirement survivor benefit. If
your beneficiary is not your spouse, he or she will receive payment in a lump
sum.
If you die after you begin receiving benefits, any payment to your beneficiary
will be determined based on the form of payment you elected when you retired.
LOSS OF BENEFITS
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If you terminate employment with Chase Corporation before you have completed
five years of vesting service, you will forfeit any benefits you have earned in
the Plan. If the Plan becomes top heavy (see pages 16 and 17), you will forfeit
any benefits you have accrued if you leave before you complete two years of
vesting service.
SOCIAL SECURITY BENEFITS
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Another important part of your retirement income is your Social Security
benefit. This benefit is in addition to the retirement benefit provided under
this Plan. Social Security benefits may also be payable in the event of your
death or disability as well as at retirement. Your Social Security benefits are
based on the amount of your earnings that are subject to Social Security taxes
(FI.C.A.). Chase Corporation pays half of the cost of your Social Security
benefits and you pay the other half by payroll deduction.
The amount you will receive from Social Security will depend on your age at
retirement and your past earnings which have been subject to Social Security
taxes. An estimate of your retirement benefit is available from the Social
Security Administration. Contact your local Social Security Administration
office for details.
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CLAIMING YOUR BENEFITS
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If you wish to file a claim for benefits under the Plan, the Company will supply
you with all the necessary forms. These forms should be filed with the Plan
Administrator.
If you (or your beneficiary) make a claim for benefits under the Plan and all or
any part of it is denied, the Plan Administrator will notify you within 60
days, explain the reasons for the denial and describe any additional information
that may be necessary to support or substantiate your claim. In addition, this
notice will explain the claim review procedure and cite the specific Plan
provisions) on which the denial is based.
If any or all of your claim for benefits is denied, you or your beneficiary can
request a full and fair review of the decision within 90 days of your receipt of
the denial notice. You or your beneficiary may request a hearing by the Plan
Administrator, review pertinent documents or submit written issues and comments
for review.
To make such a request, you should send a letter to the Plan Administrator and
include any facts which would be helpful in deciding your case. After the Plan
Administrator reviews your claim, it will send you its final decision, and the
specific reasons for the decision, within 60 days after receipt of your request
(120 days if special circumstances require an extension of time).
WHAT ELSE YOU SHOULD KNOW
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ASSIGNMENT OF BENEFITS
You cannot assign, transfer or convey any of the benefits provided by this Plan.
Your benefits will be exempt from the claims of creditors to the maximum extent
permitted by law. However, part or all of your benefit may be used to provide
support to your former spouse or dependents if the Plan is ordered to make
payments under a Qualified Domestic Relations Order.
<Page>
MAXIMUM BENEFITS
Federal regulations limit the maximum amount payable from the Plan each year to
any one participant and the maximum amount of compensation which can be
recognized for plan purposes. If you are affected by these limits, you will be
notified by the Plan Administrator.
TOP HEAVY PROVISIONS
If this Plan becomes a "top heavy" plan, certain provisions apply to all Plan
years during which the Plan is top heavy. These top heavy provisions generally
are designed to improve the benefits of all Plan participants except for the
most highly paid participants.
A plan is considered top heavy when the total present value of the accrued
benefits of "key employees" under a plan exceed 60% of the total present value
of the accrued benefits of all employees under the plan. A key employee refers
to certain highly paid employees, or employees who are officers or owners of the
Company.
If the Plan becomes top heavy, you will become vested according to the following
schedule:
<Table>
<Caption>
YEARS OF VESTING SERVICE VESTED PERCENTAGE
------------------------ -----------------
Less than 2 years 0%
2 but less than 3 20%
3 but less than 4 40%
4 but less than 5 60%
5 or more years 100%
</Table>
If the Plan is deemed to be top heavy, your accrued benefit shall be no less
than the amount determined using the following formula:
your average compensation for high five years
TIMES
the lesser of 20%, or 2% times your years of vesting service.
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Average compensation for high five years means the average of your compensation
for a five consecutive calendar year period (or period of consecutive years if
less than five) during which you received a year of credited service and had the
greatest aggregate compensation. Compensation while the Plan is top heavy means
your earnings as indicated on your Form W-2. For purposes of this formula,
vesting service will not include any year of vesting service completed while the
Plan was not a top heavy plan.
EMPLOYMENT RIGHTS
Participation in this Plan does not guarantee your continued employment with
Chase Corporation nor does it guarantee your rights to any benefits except as
specified in this Plan.
FUTURE OF THE PLAN
Chase Corporation expects to continue the Plan indefinitely, but reserves the
right to amend or discontinue it at any time. If the Plan is discontinued, you
will become 100% vested in your accrued benefit earned as of the Plan's
termination date. Whether you eventually receive all or part of your Plan
benefit depends on whether there are sufficient assets in the pension fund to
pay for it, and if not, whether the benefit is insured by the Pension Benefit
Guaranty Corporation (PBGC). (See the section on the PBGC below.) The law
establishes priorities as to how the pension fund's assets will be used to
provide Plan benefits after Plan termination. Assets are used to pay for the
following benefits in the order they are listed below, until the assets are
exhausted.
- Benefits for (a) those who have received Plan benefits for at least three
years before the termination date, and (b) those who could have started
receiving benefits at least three years before the termination date. Benefits
in these instances will be based on any Plan provision in effect during the
five years prior to termination which would produce the lowest amount. In
addition, the maximum for those who have received benefits for at least three
years would be based on the lowest benefit payment received during that
three-year period;
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- All other benefits which are insured by the Pension Benefit Guaranty
Corporation (see below);
- Vested benefits that are not insured by the Pension Benefit Guaranty
Corporation; and
- Any other benefits earned in the Plan. This includes those benefits which
became vested only because of Plan termination.
PENSION BENEFIT GUARANTY CORPORATION
Benefits under the Plan are insured by the Pension Benefit Guaranty Corporation
(PBGC). Generally, the PBGC guarantees most vested normal retirement benefits,
early retirement benefits, and certain disability and survivor's benefits.
However, the PBGC does not guarantee all types of benefits under covered plans,
and the amount of benefit protection is subject to certain limitations. The PBGC
guarantees vested benefits at the level in effect on the date of plan
termination. However, if benefits have been increased within the five years
before plan termination, the whole amount of the plan's vested benefits or the
benefit increase may not be guaranteed. In addition, there is a ceiling on the
amount of monthly benefit that the PBGC guarantees, which is adjusted
periodically.
For more information on the PBGC insurance protection and its limitations, ask
the Plan Administrator or the PBGC. Inquiries to the PBGC should be addressed
to: Pension Benefit Guaranty Corporation, Administrative Review and Technical
Assistance Branch, Suite 930,1200 K Street, N.W, Washington, DC 20005 and may
also be reached by calling (202) 326-4000.
<Page>
YOUR RIGHTS UNDER ERISA
- --------------------------------------------------------------------------------
As a member of the Plan, you are entitled to certain rights and protections
under the Employee Retirement Income Security Act (ERISA). ERISA provides that
all Plan participants shall be entitled to:
1. Examine, without charge, at the Company's main office or at certain other
Company locations, all Plan documents, including insurance contracts, and
copies of all Plan documents filed by the Company with the U.S. Department
of Labor, such as annual reports and Plan descriptions. However, you may not
inspect materials containing confidential information about other
participants.
2. Obtain copies of all Plan documents and other Plan information upon written
request to the Plan Administrator. The Administrator may make a reasonable
charge for the copies.
3. Receive a summary of the Plan's annual financial report. The Plan
Administrator is required by law to furnish you with a copy of this
financial report.
4. Obtain a statement telling you the amount of your accrued benefit. This
statement must be requested in writing and is not required to be given more
than once a year. The Plan Administrator must provide the statement free of
charge.
5. Obtain a statement telling you whether you have a right to receive a benefit
from the Plan at normal retirement age and if so, what your benefits would
be if you stop working under the Plan now. If you do not have a right to a
benefit, the statement will tell you how many more years you have to work to
get a right to a benefit. This statement must be requested in writing and
is not required to be given more than once a year. The Plan Administrator
must provide the statement free of charge.
6. File suit in a federal court if any materials requested are not received
within 30 days of your request, unless the materials are not sent because of
matters beyond the control of the Plan Administrator. The court may require
the Plan Administrator to pay you up to $100 for each day's delay until the
materials are received.
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In addition to creating rights for Plan participants, ERISA imposes obligations
upon the persons who are responsible for the Plan's operation. The law refers
to these persons as "fiduciaries." Fiduciaries must act solely in the interest
of participants and beneficiaries and they must exercise prudence in the
performance of their duties. Fiduciaries who violate ERISA may be removed and
required to make good any losses they have caused the Plan.
Your employer may not fire you or discriminate against you as a means of
preventing you from obtaining a Plan benefit or exercising your rights under
ERISA.
If your claim to a Plan benefit is denied in whole or in part, you must receive
a written explanation of the reason for the denial. You have the right to have
the Plan Administrator review and reconsider your claim. If you have any
questions about this Plan, you should contact the Plan Administrator.
If you are improperly denied a Plan benefit in full or in part, you also have a
right to file suit in a federal or state court. If fiduciaries are misusing the
Plan's money, you have a right to file suit in a federal court or request
assistance from the U.S. Department of Labor. If you are successful in your
lawsuit, the court may, if it so decides, require the other party to pay your
legal costs such as court costs and attorney's fees. If you lose your lawsuit,
the court may order you to pay these costs and fees. The court may do so, for
example, if it finds your claim to be frivolous.
If you have any questions about this statement or your rights under ERISA, you
should contact the nearest Area Office of the U.S. Labor-Management Service
Administrator, U.S. Department of Labor.
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ADMINISTRATION OF THE PLAN
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The information below may be helpful if you need further details about Plan
administration.
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PLAN SPONSOR: Chase Corporation
26 Summer Street
Bridgewater, MA 02324
PLAN ADMINISTRATOR: Plan Committee
Chase Corporation
26 Summer Street
Bridgewater, MA 02324
(508) 279-1789
PLAN NAME: Pension Plan for Employees of Chase
Corporation
PLAN YEAR: January 1 - December 31
EFFECTIVE PLAN DATE: March 1, 1975
AMENDED: July 1,1995
PLAN NUMBER: 001
EMPLOYER I.D. NUMBER: 11-1797126
TYPE OF PLAN: Defined benefit plan
FUNDING METHOD: Company contributions based on
recommendations by an enrolled
actuary
FUNDING MEDIUM: Group annuity contract with
AUSA Life Insurance Company, Inc.
AGENT FOR SERVICE
OF LEGAL PROCESS: Chase Corporation
26 Summer Street
Bridgewater, MA 02324
</Table>