[ABBOTT LABORATORIES LETTERHEAD]

August 8, 2000

Mr. Robert L. Parkinson, Jr.
1332 Edgewood Lane
Northbrook, IL 60062

Dear Bob:

You have expressed a desire to retire from Abbott Laboratories on January 31,
2001, after nearly 25 years of exemplary service with the Company. This
letter reflects our agreement concerning the timing and other matters
relating to your retirement. Most importantly, since you may consider other
opportunities in the health care field, this letter provides an additional
benefit in return for your agreement not to compete with Abbott for a certain
period of time following your retirement. We both agreed this commitment is
necessary to protect Abbott's best interest.

Our agreement is as follows:

1.  You will resign as a Director and Officer of Abbott and of all its
    subsidiaries and related entities and as a Director of TAP Pharmaceutical
    Products Inc., effective September 1, 2000.

2.  You will remain as an employee of Abbott until your retirement date of
    January 31, 2001 at your current monthly salary. In consideration for
    your agreement under paragraph 5 below, on January 31, 2001, you, or in
    the event of your death, your estate or a beneficiary designated by you
    for this purpose in a written notice to Abbott, will be paid $4,263,000
    (equivalent to approximately two years base salary and bonus). Such
    payment will not be included as earnings for purposes of determining your
    retirement benefits from Abbott.



Mr. Robert L. Parkinson
August 8, 2000
Page 2


3.  You will be entitled to participate in all Abbott employee benefit plans
    (including Abbott's stock option plans) in accordance with their terms,
    based on your compensation and service with Abbott as an employee through
    January 31, 2001, and as a retiree thereafter (including retirement under
    the Abbott Laboratories Annuity Retirement Plan and coverage for yourself
    and your eligible dependents under normal Abbott retiree medical and
    dental coverage and retiree life insurance under the normal provisions of
    the Abbott plans as they may be in effect from time to time), subject to
    the following:

    a.  The restrictions on the stock awards granted to you on February 14,
        1997, and on February 13, 1998, of Abbott's common stock will be
        removed effective as of the date of your retirement.

    b.  You will receive a bonus award in the amount of $1,089,000 on January
        31, 2001. This represents the normal bonus you would have earned in
        2000 under the Company's Performance Incentive Plan assuming targets
        were met.

    c.  You will be paid on January 31, 2001 for eight weeks of unused
        vacation for 2000 and 2001.

    d.  You will have the option to take title for your company automobile on
        or before January 31, 2001, and will be responsible for all taxes
        associated with that transfer, including imputed income.

4.  You will remain bound by the non-compete provisions of your Abbott
    Employee Agreement and your stock option agreements in accordance with
    their terms.

5.  In consideration of the payment referred to in paragraph 2 above, you
    agree that until July 31, 2002, you will not engage directly or
    indirectly in any activity, employment or business which is competitive
    with any business conducted by, or under current consideration by, Abbott
    or any of its subsidiaries or affiliates, including TAP Pharmaceutical
    Products Inc.



Mr. Robert L. Parkinson
August 8, 2000
Page 3


6.  You will be entitled to indemnification from Abbott to the same extent as
    other current or former directors or officers of Abbott. You will also be
    entitled to coverage under the directors and officers liability insurance
    coverage maintained by Abbott (as in effect from time to time) to the
    same extent as other current or former officers and directors of Abbott;
    provided, however, that nothing in this paragraph 6 will be construed to
    require Abbott to continue to maintain any such directors or officers
    liability insurance coverage. Any liability intended to be covered by the
    foregoing protection will extend to your activities not only on behalf of
    Abbott, but also that of its subsidiaries and affiliates, including TAP
    Pharmaceutical Products Inc.

If you are in agreement with the foregoing, please sign a copy of this letter
in the space provided.

I know you reached your decision to retire after significant thought and
deliberation. While we are disappointed to see you leave Abbott, we
understand your desire to pursue other personal and professional challenges.

Sincerely,

/s/ Miles

Miles D. White
MDW:aam

                  
ACCEPTED:            /s/ Robert Parkinson Jr.
                     --------------------------
                              (Name)


                     Date:   8/9/00
                     --------------------------