Document:

Exhibit 10.14

Transition
Agreement, Dated November 8, 2006 by and between Michael R. Imbriani and PQ
Corporation

This TRANSITION AGREEMENT
AND GENERAL RELEASE (the “Transition
Agreement”), entered into by Michael R. Imbriani (“Mr. Imbriani”) and PQ Corporation
(the “Company”), a Pennsylvania
Corporation and Niagara Holdings, Inc., a Delaware Corporation (“Holdings”) of
which the Company is a wholly-owned subsidiary.

RECITALS

WHEREAS, Mr. Imbriani and the Company previously
entered into an employment agreement, dated February 11, 2005 (the “Employment Agreement”), to employ Mr.
Imbriani as the Vice Chairman, PQ Corporation and President, Chemical Groups
for an initial term of three (3) years;

WHEREAS, Mr. Imbriani and the Company mutually
desire: (i) to amicably conclude Mr. Imbriani’s employment relationship with
the Company and (ii) to enter into this Transition Agreement which supersedes
and cancels all other agreements that Mr. Imbriani has with the Company,
including, but not limited to, the Employment Agreement;

WHEREAS, Mr. Imbriani and the Company intend for
this Transition Agreement to satisfy Section 409A of the Internal Revenue Code
of 1986, as amended (the “Code”), including the transition rules of the
regulations proposed by the Secretary of the United States Treasury Department
and the Internal Revenue Service under Code Section 409A;

WHEREAS, Mr. Imbriani hereby certifies that he has been afforded a
reasonable opportunity of at least twenty-one (21) days to consider this
Transition Agreement and has been advised by the Company to consult with an
attorney of his choice with respect to the execution of this Transition
Agreement; and

WHEREAS, Mr. Imbriani has carefully read and fully understands all
of the provisions and effects of this Transition Agreement, including its
effects on any and all provisions of the Employment Agreement, and on any other
contract or agreement to which he is a party.

NOW, THEREFORE, in consideration of the covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

Section 1.              Effective Retirement from
Employment.  Effective as of December 31, 2006 (the “Effective Date”), Mr. Imbriani will retire
and his employment with the Company will cease and, as a result, the Company
shall pay and provide the benefits described under this Transition Agreement to
Mr. Imbriani.  To the extent not
theretofore paid, Mr. Imbriani shall be paid his base salary through December
31, 2006.

Section 2.              Consideration.  Subject to
Mr. Imbriani entering into and not revoking the Release Agreement with the
Company, which is attached hereto and made part hereof as Appendix A, Mr.
Imbriani shall receive the following consideration described in this Section 2.

a.             Separation Payments.  In place of the
Appendix C of the Employment Agreement, Severance Pay, the Company shall pay
Mr. Imbriani a separation payment in the amount of six hundred fifty-four
thousand six hundred three dollars ($654,603), which is equal to twenty-two
months of his base salary (for the period of January 1, 2007 to October 31,
2008).  Such payment shall be in a single lump sum  and shall be made on or before January 19, 2007.

b.             Bonus Payments.

(i)            2006 Bonus.  Despite
not being employed with the Company through the payment date, Mr. Imbriani
shall be eligible to participate in the 2006 PQ Incentive Plan (the “Bonus Plan”).  The amount of any bonus due shall be
calculated in accordance with the terms of the Bonus Plan as applicable to all
participants of the Bonus Plan and payment of the bonus shall be made at the
same time as other senior executives of the Company are paid their bonus.

(ii)           2007 and 2008
Bonus.  Mr. Imbriani shall also be entitled to Bonus
Plan payments for 2007 and 2008 calendar years in accordance with this
Section.  Mr. Imbriani’s base salary
shall be assumed to be three hundred fifty-seven thousand fifty-six dollars
($357,056) for the 2007 calendar year and two hundred ninety-seven thousand

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five hundred forty-seven dollars ($297,547) for the
2008 calendar year.  Mr. Imbriani’s bonus
amounts for the 2007 and 2008 calendar years shall be based on the highest
actual bonus percentage paid
to him for any year in the period 2002 through 2006.  These Bonus Plan payments will be paid to Mr.
Imbriani within 10 days of his receipt of his 2006 bonus.

c.             Retention Bonus.  The Company shall pay Mr. Imbriani a
retention bonus payment in the amount of nine hundred fifty-eight thousand
three hundred thirty-three dollars ($958,333). 
Such payment shall be in
a single lump sum and shall be made on or before January 19, 2007.

d.             Group Health Plan Benefits.  On or before
December 31, 2006, Mr. Imbriani will elect for himself and his eligible
dependents to either continue to participate in the Company’s Group Medical
Plan (which includes medical, vision, and prescription drug coverage), or such
comparable plans that may be maintained by the Company’s successor
(collectively referred to as the “Group Medical Plans”), as if Mr. Imbriani had continued in active employment,
or the Company’s Retiree Medical Plan. 
Mr. Imbriani’s participation in either the Group Medical Plans or
Retiree Medical Plan shall be governed solely by, and subject to, all of the
terms and conditions set forth in such Group Medical Plans or Retiree Medical
Plan, and pursuant to the Company’s full discretionary authority to amend,
modify, or terminate such Plans at any time and for any reason for employees of
the Company generally .  Mr. Imbriani’s
participation in these Group Medical Plans is also contingent upon his
continued payment of the employee/retiree portion of the applicable premiums
thereunder.  If Mr. Imbriani fails to pay
his share of the cost, his participation shall terminate in accordance with the
terms of that Group Medical Plan.

Mr.
Imbriani will continue to participate in the Company’s Buy-Up Dental Plan
through October 31, 2008, as if he had continued in active employment.  Mr. Imbriani’s participation in the Buy-Up
Dental Plan shall be governed solely by, and subject to, all of the terms and
conditions set forth in such in such Buy-Up Dental Plan and pursuant to the
Company’s full discretionary authority to amend, modify, or terminate such
Plans at any time and for any reason for employees of the Company
generally.  Mr. Imbriani’s participation
in the Buy-Up Dental Plan is also contingent upon his continued payment of the
employee portion of the applicable premiums thereunder.  If Mr. Imbriani fails to pay his share of the
cost of continued participation in the Buy-Up Dental Plan, his participation in
the plan shall terminate in accordance with the terms of that Plan.

Mr.
Imbriani’s participation in all other benefit plans (life insurance, short and
long term disability plans, etc.) shall cease effective December 31, 2006 in
accordance with the terms of such plans and no alternative benefits shall be
provided hereunder.

e.             Life Insurance.  The Company shall
pay Mr. Imbriani twenty-seven thousand thirty-seven dollars ($27,037) which
represents the present value of the estimated cost to convert his life
insurance coverage (one times (1x) current base salary) under the Company’s
group term coverage to an individual policy for a period of twenty-two (22)
months, based on the policy’s current conversion rate table.  Such payment shall be made in a single lump
sum payment and shall be made on or before January 19, 2007.

f.              Savings Plan Matching Contribution.  The Company
shall pay Mr. Imbriani eleven thousand nine hundred seventy-four dollars
($11,974), which represents the present value of the matching contributions the
Company would have made on Mr. Imbriani’s behalf to the PQ Corporation Savings
Plan had Mr. Imbriani remained employed through October 31, 2008, and had Mr.
Imbriani continued making elective deferrals at the same level as of the
Effective Date.  Such payment shall be made in a single lump
sum and shall be made on or before January 19,
2007

g.             Company Car.  The Company shall pay Mr. Imbriani a single
lump sum payment of twenty-one thousand four hundred thirty-two dollars
($21,432), which represents the total monthly lease payments that the Company
would have made for Mr. Imbriani’s use of the Company Car through October 31,
2008 had his employment not ended herewith. 
The lump sum payment shall be made on or before January 19, 2007.  No Company Car will be available for Mr.
Imbriani’s use after the Effective Date.

h.             Club Dues.  The Company shall reimburse
Mr. Imbriani for club dues that relate to the period beginning on January 1,
2007 and ending on October 31, 2008.  The
Company shall reimburse Mr. Imbriani in a single lump sum payment of ten
thousand dollars ($10,000).  The lump sum
payment shall be made on or before January 19, 2007.

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i.              Financial Planning Assistance.  The Company shall reimburse
Mr. Imbriani, for the period beginning on January 1, 2007 and ending on October
31, 2008, for the financial planning assistance services being provided to him
by the Company at the Effective Date. 
The Company shall reimburse Mr. Imbriani in a single lump sum payment of
eight thousand dollars ($8,000).  The
lump sum payment shall be made on or before January 19, 2007.

j.              Vacation Pay.  Mr. Imbriani
acknowledges that he has been paid for all accrued and unused vacation time for
the calendar year 2006 and that he is not entitled to any additional vacation
pay for calendars years 2007 and 2008.

k.             Consulting Services Agreement.  In exchange
for entering into this Transition Agreement, the Company hereby agrees to enter
into a Consulting Services Agreement, attached hereto as Appendix C and made a
part hereof.  In accordance with the
Consulting Services Agreement, the Company further agrees to pay Mr. Imbriani’s
Consulting Fees of seventy thousand dollars ($70,000) in a single lump sum
payment on or before December 30, 2006.

l.              Legal Fees.  Within 30 days of the presentation of proper
invoices, the Company agrees to pay up to a maximum of three thousand dollars
($3,000) of reasonable legal fees and expenses due Morgan, Lewis & Bockius
LLP, in connection with the legal advice Mr. Imbriani received concerning this
Transition Agreement, the General Release and the Consulting Agreement.  Morgan, Lewis & Bockius LLP is an
intended third party beneficiary of this Section 2.l.

m.            Gross-Up Payments Pursuant to Internal Revenue Code.

(i)            If any payment or distribution by the Company to or for the
benefit of Mr. Imbriani, whether
paid under this Agreement or otherwise, (a “Payment”) would be subject to the
excise tax imposed by Code Section 4999, or any interest or penalties with
respect to such excise tax (such excise tax, together with any such interest
and penalties, are hereinafter collectively referred to as the “Excise Tax”), then Mr. Imbriani shall
be entitled to receive an additional payment (a “Gross-Up Payment”) in an amount such that,
after Mr. Imbriani pays all taxes of
any nature (including any interest or penalties
imposed with respect to such taxes and any Excise Tax imposed upon the Gross-Up
Payment), Mr. Imbriani shall retain an amount of the Gross-Up Payment equal to
the Excise Tax imposed upon the Payment.

(ii)           Subject to the provisions of subparagraph (v)below, all determinations required to be made under
this subsection, including whether a Gross-Up Payment is required and the
amount of such Gross-Up Payment, shall be made by the an accountant designated
by the Company (the “Accountant”).  The
Company shall request the Accountant to provide detailed supporting
calculations to the Mr. Imbriani by January 15, 2007.  Any
determination by the Accountant shall be binding upon the Company and Mr.
Imbriani.

(iii)          The initial Gross-Up Payment, if any, as determined
pursuant to this section, shall be paid to Imbriani within five (5) days of the
receipt of the Accountant’s determination. 
If the Accountant determines that no Excise Tax is payable by Mr.
Imbriani, it shall furnish Mr. Imbriani with an opinion, on which he may rely in filing his Federal
and state income tax returns, that that there is substantial authority that Mr.
Imbriani is not required to report any Excise Tax on his federal income tax return.

(iv)          If Mr. Imbriani is required to pay any Excise Tax after the
Company has reimbursed Mr. Imbriani hereunder or after a determination has been
made that no reimbursement is required, the Company shall promptly reimburse
Mr. Imbriani for the Underpayment, as determined by the Accountant.  For purposes of this subsection,
the “Underpayment” is the difference between the finally determined Gross-Up
Payment and the amount that the Company previously paid to Mr. Imbriani
hereunder.

(v)           Notwithstanding anything herein to the contrary, Mr.
Imbriani shall notify the Company in writing of any claim by the Internal
Revenue Service that, if successful, would require payment by the Company of
the Gross-Up Payment.  Such notification
shall be given as soon as practicable, but no later than ten (10) business days
after Mr. Imbriani knows of such claim, and shall advise the Company of the
nature of such claim and the date on which such claim is requested to be paid.  Mr. Imbriani shall not pay such claim prior
to the expiration of the thirty (30) day period following the date on which it
gives such notice to the Company (or such shorter period ending on the date
that any payment of taxes with 

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respect to such claim is due).  If the Company notifies Mr. Imbriani in
writing prior to the expiration of such period that it desires to contest such
claim, Mr. Imbriani shall:

(a)           give the Company any information reasonably requested by
the Company relating to such claim;

(b)           take such action in connection with contesting such claim
as the Company shall reasonably request in writing from time to time, including
without limitation, accepting legal representation with respect to such claim
by an attorney reasonably selected by the Company;

(c)           cooperate with the Company in good faith in order
effectively to contest such claim; and

(d)           permit the Company to participate in any proceedings
relating to such claim;

provided, however, that the Company
shall bear and pay directly all costs and expenses (including additional
interest and penalties) incurred in connection with such contest and shall
indemnify and hold Mr. Imbriani harmless, on an after-tax basis, for any Excise
Tax or other tax, including interest and penalties with respect thereto,
imposed as a result of such representation and payment of costs and
expenses.  Without limitation on the
foregoing provisions of this subparagraph, the
Company shall control all proceedings taken in connection with such contest
and, in its sole discretion, may pursue or forgo any and all administrative
appeals, proceedings, hearings and conferences with the taxing authority in
respect of such claim and may, in its sole discretion, either direct Mr.
Imbriani to pay the tax claimed and sue for a refund or contest the claim in
any permissible manner.  Mr. Imbriani
agrees to prosecute such contest to a determination before any administrative
tribunal, in a court of initial jurisdiction and in one or more appellate
courts, as the Company shall determine; provided, however, that if the Company
directs Mr. Imbriani to pay such claim and sue for a refund, the Company shall
advance the amount of such payment to Mr. Imbriani, on an interest-free basis,
and shall indemnify and hold Mr. Imbriani harmless, on an after-tax basis, from
any Excise Tax or income or employment tax, including interest or penalties
with respect thereto, imposed with respect to such advance or with respect to
any imputed income with respect to such advance; and further provided that any
extension of the statute of limitations relating to payment of taxes for the
Mr. Imbriani’s taxable year with respect to which such contested amount is
claimed to be due is limited solely to such contested amount.  Furthermore, the Company’s control of the
contest shall be limited to issues with respect to which a Gross-Up Payment
would be payable hereunder, and Mr. Imbriani shall be entitled to settle or
contest, as the case may be, any other issue raised by the Internal Revenue
Service or any other taxing authority.

(vi)          If, after the receipt by Mr. Imbriani of an amount advanced
by the Company pursuant to
subparagraph (v), Mr. Imbriani becomes entitled to receive any refund with
respect to such claim, Mr. Imbriani shall (subject to the Company’s complying
with the requirements of subparagraph (v)) promptly pay to the Company the
amount of such refund (together with any interest paid or credited thereon
after taxes applicable thereto).  If,
after the receipt by Mr. Imbriani of an amount advanced by the Company pursuant
to subparagraph (v), a determination is made
that Mr. Imbriani shall not be entitled to any refund with respect to such
claim, and the Company does not notify Mr. Imbriani in writing of its intent to
contest such denial of refund prior to the expiration of thirty (30) days after
such determination, then such advance shall be forgiven and shall not be
required to be repaid, and the amount of such advance shall offset, to the
extent thereof, the amount of Gross-Up Payment required to be paid.

	
  

  	
  n.

  	
  Company Release. The Company shall furnish Mr.
  Imbriani with a Mutual Release, which is attached 

  
	
  hereto and made part hereof, as Appendix B on the
  8th day following the execution and non-revocation of the Release Agreement.

  

 

	
  Section 3.

  	
  Payments and
  Withholding. 

  	
  The Company agrees that all
  payments made pursuant to Section 2 

  
	
  subparagraphs 2.a. Separation Payments, 2.c.
  Retention Bonus, 2.e. Life Insurance, 2.f. Savings Plan, 2.g. Company Car,
  2.h. Club Dues, and 2.i. Financial Planning Assistance will be paid in a
  single lump sum payment of one million six hundred ninety-one thousand three
  hundred seventy nine dollars ($1,691,379) via direct deposit on or before
  January 19, 2007. The Company shall deduct from any payments to be made by it
  to or on behalf of Mr. Imbriani under this Transition Agreement any amounts
  required to be withheld in respect of any federal, state or local income or
  other taxes.

  

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  Section 4.

  	
  Covenants.

  

 

a.             Basis for Covenants.  Mr. Imbriani agrees
and acknowledges that he occupied a position of substantial confidence and
trust with the Company and, in such position, that he has access to
Confidential Information.  Mr. Imbriani
further agrees and acknowledges that the nature and periods of restrictions
imposed by the following covenants are fair, reasonable and necessary to
protect and preserve for the Company its legitimate and protectible interests
and that such restrictions will not prevent Mr. Imbriani from earning a
livelihood.  Mr. Imbriani agrees that the
Company would sustain an irreparable loss and damage if Mr. Imbriani were to
breach the covenants and that the covenants are made as an inducement to enter,
and have been relied upon by the Company in entering, this Agreement.

b.             Covenant to Maintain Confidential Information.  Mr. Imbriani shall hold in a fiduciary
capacity for the benefit of the Company all Confidential Information which
shall have been obtained by Mr. Imbriani during Mr. Imbriani’s employment by
the Company.  At no time during or after
termination of Mr. Imbriani’s employment with the Company shall Mr. Imbriani,
without the prior written consent of the Company, communicate or divulge any
Confidential Information to anyone other than the Company and those designated
by it, except to the extent that (i) such disclosure or use is directly related
to and required by Mr. Imbriani’s performance of duties assigned to Mr.
Imbriani by the Company; (ii) such disclosure is required in connection with
any action by Mr. Imbriani to enforce rights under this Agreement or (iii) such
disclosure is required by a court of law, governmental agency, or by any
administrative or legislative body with jurisdiction to order Mr. Imbriani to
divulge or disclose such Confidential Information; provided, that, Mr. Imbriani
shall provide ten (10) days (or such shorter notice as Mr. Imbriani can
reasonably provide under the then circumstances) prior written notice to the
Company of any such requirement or order to disclose Confidential Information
so that the Company may seek a protective order or similar remedy; and,
provided, further, that, in each case set forth above, Mr. Imbriani informs the
recipients that such information or communication is confidential in nature.

c.             Confidentiality of Transition Agreement.  Mr. Imbriani understands and agrees he shall
treat this Transition Agreement as confidential and that he shall not disclose
or divulge the terms of this Transition Agreement to any third party, with the
exception of his immediate family, his accountant, banker or financial advisor, his attorney, a subsequent employer (as
to his obligation under this Section 4) or the Internal Revenue Service;
provided, however, that before any disclosure permitted by this subsection is undertaken,
Mr. Imbriani shall inform such third party of the obligation to maintain this
Transition Agreement as confidential as provided herein and provided further
that any portion disclosed by the Company shall not be subject to this
obligation.

d.             Covenant Not to Disparage.  The
Company and Mr. Imbriani each covenant and agree not to disparage the other
and, in the case of the Company, its affiliates, or make any derogatory
statements concerning the other or, in the case of the Company, any of its officers, directors, representatives,
employees or agents.

e.             Covenant Not to Compete.  Mr. Imbriani
hereby covenants and agrees that during the Transition Period, without the
prior written consent of the Company, he shall not engage, directly or
indirectly, in a Competitive Activity either for his own benefit or as an
officer, director, shareholder (of more than one percent), partner, proprietor,
employee, agent, consultant, or independent contractor of any Person.  To the extent that the covenant provided for
in this Section 4.e. may later be deemed by a court to be too broad to be
enforced with respect to its duration or with respect to any particular
activity or geographic area, the court making such determination shall have the
power to reduce the duration or scope of the provision, and to add or delete
specific words or phrases to or from the provision.  The provision as modified shall then be
enforced.

f.              Inventions and Patents.  Mr. Imbriani
agrees that all Work Product belongs to the Company.  Mr. Imbriani will promptly disclose such Work
Product to the Board and perform all actions reasonably requested by the Board
(whether during or after the Employment Period) to establish and confirm such
ownership (including, without limitation, the execution and delivery of
assignments, consents, powers of attorney and other instruments) and to provide
reasonable assistance to the Company in connection with the prosecution of any
applications for patents, trademarks, trade names, service marks or reissues
thereof or in the prosecution or defense of interferences relating to any Work
Product.

g.             Covenant Regarding Solicitation.  Mr. Imbriani
covenants and agrees that during the Transition Period, except as expressly
provided herein, Mr. Imbriani will not, directly or indirectly, either for
himself or for any other Person (i) solicit any employee or consultant of the
Company or any of its Subsidiaries to terminate his or her employment or 

 5
 

 

consulting relationship with the Company or any of
its Subsidiaries; (ii) employ any employee or consultant of the Company or any
of its Subsidiaries during the period of his or her employment or consulting
relationship with the Company or any of its Subsidiaries (until at least 12
months have transpired since the individual left the employ of the Company or
any of it subsidiaries); (iii) solicit any customer of the Company or any of
its Subsidiaries to purchase or distribute information, products or services of
or on behalf of Mr. Imbriani or such other Person that are competitive with the
information, products or services provided by the Company or any of its
Subsidiaries; or (iv)
take any action that may cause material injury to the relationships between the
Company or any of its Subsidiaries or any of their employees and any lessor,
lessee, vendor, supplier, customer, distributor, employee, consultant or other
business associate of the Company or any of its Subsidiaries as such
relationship relates to the Company’s or any of its Subsidiaries’ conduct of
their business.

Section 5.              Delivery of Materials Upon
Termination of Employment.

 Mr. Imbriani shall deliver to
the Company on or before December 31, 2006, or at any time the Company may
request, all memoranda, notes, plans, records, reports, computer tapes and
software and other documents and data (and copies thereof) relating to the
Confidential Information or Work Product which he may then possess or have
under his control regardless of the location or form of such material and, if
requested by the Company, will provide the Company with written confirmation
that all such materials have been delivered to the Company.

Section 6.              Company Computer.  Mr. Imbriani
may continue to use his Company laptop computer, cell phone and
blackberry following the termination of his active employment through the end
of his Consulting Agreement.  At the end
of his Consulting Agreement, Mr. Imbriani may purchase the Company laptop
computer, cell phone and blackberry for its
then prevailing fair market value. 
Before purchasing the computer, however, Mr. Imbriani will make the
computer available to the Company’s IT Department which will remove from its
hard drive all Company documents which are considered proprietary and
confidential trade secrets.

Section 7.              Enforcement.  Because Mr.
Imbriani’s services are unique and because Mr. Imbriani has access to
Confidential Information and Work Product, the parties hereto agree that money
damages would be an inadequate remedy for any breach of this Transition
Agreement.  Therefore, in the event of a
breach or threatened breach of this Transition Agreement, the Company or its
successors or assigns may, after providing Mr. Imbriani with at least 15 business
days’ written notice and requesting that he
cease the violation prior to the expiration of that period, in the event it
wishes to apply the provisions of the next sentence hereof, in addition to
other rights and remedies existing in their favor, apply to any court of
competent jurisdiction for specific performance and/or injunctive or other
relief in order to enforce, or prevent any violations of, the provisions
hereof.  In addition to the foregoing,
and not in any way in limitation thereof, or in limitation of any right or
remedy otherwise available to the Company, if Mr. Imbriani violates any
provision of Section 4 and does not cure during the notice period
described above, any payments then or
thereafter due from the Company to Mr. Imbriani pursuant to Section 2 hereto
shall be terminated forthwith and the Company’s obligation to pay and Mr.
Imbriani’s right to receive such payments shall terminate and be of no further
force or effect, in each case without limiting or affecting Mr. Imbriani’s
obligations under such Section 4 or the Company’s other rights and remedies
available at law or equity.

Section 8.              Cooperation.  Mr. Imbriani
agrees that he will cooperate in the defense of any actual and potential claims
filed against the Company or its officers, directors, employees or agents,
including but not limited to, any actual or potential claims which may require
Mr. Imbriani’s involvement.  The Company
agrees to provide reasonable notice to Mr. Imbriani taking into account any
other obligations to which he may be subject. 
PQ will pay all reasonable travel and other expenses, including
legal expenses, related to Mr. Imbriani’s cooperation in this regard.  In calendar year 2007, Mr. Imbriani’s
compensation for such services shall be considered part of his Consulting Fees;
thereafter, Mr. Imbriani shall be paid one thousand three hundred seventy-five
dollars ($1,375) per day for each day of service hereunder.

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Section 9.              Indemnification.  The Company shall indemnify Mr. Imbriani, to
the maximum extent permitted by applicable law, against all reasonable costs,
charges and expenses incurred or sustained by Mr. Imbriani, including the
reasonable fees and costs of legal
counsel selected and retained by Mr. Imbriani, in connection with any action,
suit or proceeding to which Mr. Imbriani may be made a party by reason of Mr.
Imbriani being or having been an officer, director, or employee of the Company
or any of its subsidiaries. Mr. Imbriani shall not be entitled to
indemnification under this Section 9 unless he meets the standard of conduct
specified under Pennsylvania law.  In
addition, Mr. Imbriani shall be covered during the entire term of this
Transition Agreement and thereafter by officer and director liability insurance
in amounts and on terms similar to that afforded to other executives and/or
directors of the Company (or former executives and/or directors, as applicable),
which insurance shall be paid by the Company.

Section 10.            Death.  If Mr.
Imbriani dies prior to the completion of the Company’s payment to him of all
the payments and benefits set forth in Section 2 of this Transition Agreement,
the Company shall pay to Mr. Imbriani’s estate all salary continuation
payments, and other benefits owing to Mr. Imbriani, pursuant to this Transition
Agreement.  The Company shall pay any and
all sums that are payable in cash due to Mr. Imbriani’s estate in one lump sum
payment as soon as administratively feasible after Mr. Imbriani’s death.

Section 11.            Payment Dates are
Fixed/Code Section 409A.  Neither Mr. Imbriani nor the Company may, at
any time, accelerate or modify the payment schedules for any of the cash and
non-cash benefits described under Section 2, unless the United States
Treasury Department or Internal Revenue Service
issues guidance under Code Section 409A permitting otherwise (in which case,
the payment schedule for such payments may be modified only in accordance with
such guidance and only by mutual agreement of both parties).

Section 12.            Resignation of PQ Officer
Positions.  Mr. Imbriani hereby resigns, as of the
Effective Date, from any and all Company (including subsidiaries, divisions,
parents, related or affiliated companies or employee benefit plan committees)
director, officer and committee positions. 
Mr. Imbriani also agrees that as of the Effective Date, he will no
longer have the authority, nor will he cause the Company, to incur any
contractual or financial obligations.

Section 13.            Employee Understanding.  Mr. Imbriani
understands and agrees that he would not receive the consideration, nor would
he be entitled to all the monies or benefits specified in Section 2 above,
except for his execution of this Transition Agreement and his agreement to
fulfill the promises as described herein.

Section 14.            Definitions.

“Board” shall mean the board of directors of the Company.

“Business Day” shall mean any day that is not a Saturday,
Sunday, or a day on which banking institutions in New York are not required to
be open.

“Competitive Activity” shall mean any business activity when
such activity involves substantial and direct competition with any business
activity or significant line of business of the Company or its subsidiaries;
provided, however, the term “Competitive Activity” shall not include Mr.
Imbriani rendering services exclusively to a division, business unit, or
affiliate of a company where such division, business unit, or affiliate is not
engaged in substantial and direct competition with the Company’s business as of
the date of change of control or businesses of the successor in which Mr.
Imbriani has been employed, even if other divisions, business units, or
affiliates of such company are engaged in business activities that involve such
substantial and direct competition.

“Confidential Information” shall mean any information
relating to the Company or its business or to any of its parents, Subsidiaries
or affiliates, whether proprietary or otherwise, and that is treated as
confidential and not generally known to the public, including without
limitation (i) research, marketing and financial information, observations,
procedures and data; (ii) products or services; (iii) costs and pricing
structures; (iv) analyses; (v) drawings, photographs and reports; (vi) computer
software, including operating systems, applications and program listings; (vii)
flow charts, manuals and documentation; (viii) data bases; (ix) accounting and
business methods; (x) inventions, devices, new developments, and business and
manufacturing processes, methods, techniques and systems, whether patentable or
unpatentable and whether or not reduced to practice; (xi) customers, vendors,
suppliers and customer, vendor and supplier lists; (xii) other copyrightable
works; (xiii) all production methods, processes, technology and trade secrets
and (xiv) all similar and related information in whatever form. Confidential
Information will not include any information that has been published in a form
generally available to the

 7
 

 

public prior to the date Mr. Imbriani proposes to
disclose or use such information. Confidential Information will not be deemed
to have been published merely because individual portions of the information
have been separately published, but only if all material features comprising
such information have been published in combination.

“Person” shall be construed broadly and shall include,
without limitation, an individual, a partnership, an investment fund, a limited
liability company, a corporation, an association, a joint stock company, a
trust, a joint venture, an unincorporated organization and a governmental
entity or any department, agency or political subdivision thereof “Subsidiary”
or “Subsidiaries” of any Person shall mean any corporation, partnership, joint
venture or other legal entity of which such Person (either alone or through or
together with any other Person), owns, directly or indirectly, 50% or more of
the stock or other equity interests which are generally entitled to vote for
the election of the board of directors or other governing body of such
corporation or other legal entity.

“Subsidiary” or “Subsidiaries” of any Person shall mean any
corporation, partnership, joint venture or other legal entity of which such
Person (either alone or through or together with any other Person), owns,
directly or indirectly, 50% or more of the stock or other equity interests
which are generally entitled to vote for the election of the board of directors
or other governing body of such corporation or other legal entity.

“Transition Period” shall be defined as beginning on January
1, 2007 and continuing through October 31, 2008.

“Work Product” shall mean all inventions, innovations,
improvements, technical information, systems, software developments, methods,
designs, analyses, drawings, reports, service marks, trademarks, tradenames,
logos and all similar or related information (whether patentable or
unpatentable) which relates to the Company’s or any of its Subsidiaries’ actual
or anticipated business, research and development or existing or future
products or services and which are conceived, developed or made by Mr. Imbriani
(whether or not during usual business hours and whether or not alone or in
conjunction with any other Person) while employed by the Company together with
all patent applications, letters patent, trademark, tradename and service mark
applications or registrations, copyrights and reissues thereof that may be
granted for or upon any of the foregoing.

Section 15.            General Provisions.

a.             Severability.  It is the desire
and intent of the Parties hereto that the provisions of this Transition
Agreement be enforced to the fullest extent permissible under the laws and
public policies applied in each jurisdiction in which enforcement is sought.
Accordingly, if any particular provision of this Transition Agreement shall be
adjudicated by a court of competent jurisdiction to be invalid, prohibited or
unenforceable for any reason, such provision, as to such jurisdiction, shall be
ineffective, without invalidating the remaining provisions of this Transition
Agreement or affecting the validity or enforceability of this Transition
Agreement or affecting the validity or enforceability of such provision in any
other jurisdiction. Notwithstanding the foregoing, if such provision could be
more narrowly drawn so as not to be invalid, prohibited or unenforceable in
such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn,
without invalidating the remaining provisions of this Transition Agreement or
affecting the validity or enforceability of such provision in any other
jurisdiction.

b.             Notices. All notices, requests, demands, claims and other
communications hereunder shall be in writing and sufficient if (i) delivered
personally, (ii) delivered by certified United States Post Office mail return
receipt requested, (iii) telecopied or (iv) sent to the recipient by a
nationally-recognized overnight courier service (charges prepaid) and addressed
to the intended recipient as set forth below:

(i)                                    if to Mr. Imbriani, to:

Michael R. Imbriani

195 Daylesford Blvd.

Berwyn, PA  19312

With a copy to:

Morgan, Lewis & Bockius, LLP

1700 Market Street

Philadelphia, PA  19103

 8
 

 

Attention:  Robert J. Lichtenstein

(ii)                           if to the Company, to:

PQ Corporation

1200 Swedesford Road

Berwyn, PA  19312

Attention:              William J. Sichko,
Jr.

With a copy to:

Buchanan Ingersoll & Rooney

301 Oxford Centre, 20th Floor

Pittsburgh, PA  15219

Attention:              Thomas S. Giotto

or such other address as the recipient party to whom notice
is to be given may have furnished to the other party in writing in accordance
herewith. Any such communication shall deemed to have been delivered and
received (a) in the case of personal delivery, on the date of such delivery,
(b) in the case of delivery by mail, on the third Business Day following such
mailing, (c) if telecopied, on the date telecopied, and (d) in the case of
delivery by nationally-recognized, overnight courier, on the Business Day
following dispatch.

c.             Entire Agreement.  The Transition
Agreement, including the
Consulting Agreement referred to above, embodies
the complete agreement and understanding among the parties and supersede and
preempt any prior or contemporaneous understandings, agreements or
representations by or among the parties, written or oral, which may have
related to the subject matter hereof in any way, including, without limitation,
the Change in Control Agreement.

d.             Counterparts.  This Transition
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original and all of which together shall constitute one and the same
instrument.

e.             Successors and Assigns.

(i)           Except as otherwise provided herein, this Transition
Agreement shall bind and inure to the benefit of and be enforceable by Mr.
Imbriani and the Company and their respective successors, assigns, heirs,
representatives and estate, as the case may be; provided, however, that the
obligations of Mr. Imbriani under this Transition Agreement shall not be
assigned without the prior written consent of the Company and except as
provided in subsection (ii) below, the obligations of the Company under this
Transition Agreement shall not be assigned without the prior written consent of
Mr. Imbriani.  This Transition Agreement
shall inure to the benefit of and be enforceable by Mr. Imbriani’s legal
representatives in accordance with its terms.

(ii)          The Company will require any successor to the Company or
substantially all of its assets to assume expressly and agree to perform this
Transition Agreement in the same manner and to the same extent that the Company
would be required to perform it if no such succession had taken place. As used
in this Transition Agreement, “Company” shall mean the Company as hereinbefore
defined and any successor to its business and/or assets as aforesaid which
assumes and agrees to perform this Transition Agreement by operation of law or
otherwise.

f.              Amendment and Waiver. The provisions of this Transition Agreement may be
amended and waived only with the prior written consent of the Company and Mr.
Imbriani, and no course of conduct or failure or delay in enforcing the
provisions of this Transition Agreement shall affect the validity, binding
effect or enforceability of this Agreement or any provision hereof.

 9
 

 

g.             Governing Law.  This Transition
Agreement, the Release Agreement
and the Mutual Release, shall be governed by
and construed in accordance with the domestic laws of the Commonwealth of
Pennsylvania without giving effect to any choice or conflict of law provision
or rule that would cause the application of the laws of any jurisdiction other
than the Commonwealth of Pennsylvania. 
The parties acknowledge that they have determined that this Transition
Agreement shall not be treated as an employee welfare benefit plan as that term
is defined under Employee Retirement Income Security Act, as amended, 29 U.S.C.
§ 1002 (“ERISA”).

h.             Descriptive Headings; Nouns and Pronouns.  Descriptive headings are for convenience only
and shall not control or affect the meaning or construction of any provision of
this Transition Agreement.  Whenever the
context may require, any pronouns used herein shall include the corresponding
masculine, feminine or neuter forms, and the singular form of nouns and
pronouns shall include the plural and vice-versa.

i.              Adjudication of Controversy or Claims.  Any controversy or claim arising out of or
relating to this Transition Agreement, or any breach hereof: shall be settled
in accordance with the terms of this Section. 
EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL
BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO
THIS TRANSITION AGREEMENT.

(i)           Claims for Employee Benefits. Any controversy or claim
relating to an employee benefit plan governed by ERISA referenced in Section 2
of this Transition Agreement initially shall be submitted pursuant to the
administrative claims procedures established by the plan sponsor of the
employee benefit plan in question.  Such
claims procedures shall be fully exhausted, and the determination thereunder
shall be final and binding, subject to any right of review hereunder, if all of
the procedures have been followed.  If
Mr. Imbriani desires further review of the final and binding administrative
determination, his sole and exclusive recourse shall be pursuant to the
Arbitration Procedures herein, and Mr. Imbriani hereby expressly waives any
right of review in state or federal court or pursuant to any agency rules or
regulations, including without limitation those established by the Department
of Labor.  Adjudication of any claim for
benefits under this subsection in arbitration shall be under the arbitrary and
capricious standard of review mandated by ERISA, without regard to any claim or
assertion by Mr. Imbriani for de novo
review.

(ii)          All Other Claims.  In the event of any controversy or claim
hereunder, other than one relating to an employee benefit as set forth in the
preceding subsection, the parties’ sole and exclusive recourse shall be
pursuant to the Arbitration Procedures herein, and each party hereby expressly
waives any right of review in state or federal court or pursuant to any agency
rules or regulations, including without limitation those established by the
Department of Labor.

(iii)          Arbitration Procedures.  Appeals
of claims under subsection (i) above, or claims or disputes initiated under
subsection (ii) above, shall be settled by arbitration in accordance with
Employment Dispute Resolution Rules of the American Arbitration Association (or
such other rules as may be agreed upon by Mr. Imbriani and the Company).  The place of the arbitration shall be
Philadelphia, Pennsylvania., or such other location as may be mutually agreed
by the parties.  Judgment upon the award
rendered by the arbitrator(s) may be entered by any court having jurisdiction
thereof.  Such award shall be binding and
conclusive upon the parties hereto.

j.              Legal Expenses. The Company agrees to pay, to the full extent permitted by
law, all reasonable attorneys’ fees and costs, as well as all reasonable costs
and fees associated with any arbitration, which Mr. Imbriani may reasonably
incur as a result of any contest of the validity or enforceability of, or the
Company’s liability under, any provision of this Transition Agreement; provided,
however, that such payment shall be made after, and only if, Mr. Imbriani
prevails on at least one material issue raised in the proceeding following
exhaustion of all rights of appeal or review.

Section 16.            Affirmations.  Mr. Imbriani
affirms that he has not filed, nor has he caused to be filed, nor is Mr.
Imbriani presently a party to any claim, complaint, or action against Releasees
in any forum or form.  Mr. Imbriani
further affirms that he has been paid and/or has received all leave (paid or
unpaid), compensation, wages, bonuses and/or commissions to which Mr. Imbriani
may be entitled and that no other leave (paid or unpaid), compensation, wages,
bonuses and/or commissions are due to Mr. Imbriani, except as provided in this
Transition Agreement. Mr. Imbriani acknowledges that he received with this
Transition Agreement a COBRA notice advising of him of his rights under COBRA.

 10
 

 

IN WITNESS WHEREOF, the parties hereto have
executed this Transition Agreement and General Release as of the date first
written above.

	
  WITNESS: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Kevin W. Doran 

  	
   

  	
   

  	
  /s/ Michael
  R. Imbriani  

  	
   

  
	
   

  	
   

  	
  Michael R. Imbriani, Individually
  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ATTEST: 

  	
   

  	
  PQ CORPORATION  

  
	
   

  	
   

  	
   

  
	
  /s/ Kevin W. Doran 

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ William
  J. Sichko, Jr.  

  	
   

  
	
   

  	
   

  	
   

  	
  William J. Sichko, Jr. 

  
	
   

  	
   

  	
   

  	
  Chief Administrative Officer
  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NIAGARA HOLDINGS, INC.  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ William
  J. Sichko, Jr.  

  	
   

  
	
   

  	
   

  	
   

  	
  William J. Sichko, Jr.  

  
	
   

  	
   

  	
   

  	
  Secretary

  

 

 

 11

 

APPENDIX A

GENERAL RELEASE

1.             I, Michael R. Imbriani, for
and in consideration of certain payments to be made and the benefits to be
provided to me under Section 2 of the Transition Agreement to which this
Appendix A is attached, dated as of November 8, 2006, (the “Transition
Agreement”) with PQ Corporation (the “Company”) and Niagara Holdings, Inc. (“Niagara”),
and conditioned upon such payments and provisions, do hereby REMISE, RELEASE,
AND FOREVER DISCHARGE the Company and each of its parent corporations,
subsidiaries and affiliates, their officers, directors, shareholders, partners,
employees and agents, their respective successors and assigns, heirs, executors
and administrators (hereinafter collectively included within the term the “Company”),
acting in any capacity whatsoever, of and from any and all manner of actions
and causes of actions, suits, debts, claims and demands whatsoever in law or in
equity, which I ever had, now have, or hereafter may have, or which my heirs,
executors or administrators hereafter may have, by reason of any matter, cause
or thing whatsoever from the date of the Transition Agreement to the date of
this Mr. Imbriani Release arising from or relating in any way to my employment
relationship, and the terms, conditions and benefits payments resulting
therefrom, and the termination of my employment relationship with the Company,
including but not limited to, any claims which have been asserted, could have
been asserted, or could be asserted now or in the future under any federal, state
or local laws, including any claims under the Age Discrimination in Employment
Act (“ADEA”), as amended, 29 U.S.C. § 621 et
seq., , Title VII of the Civil Rights Act of 1964, as amended, 42
U.S.C. § 2000e et seq., the
Americans with Disabilities Act, as amended, 42 U.S.C. § 12101 et seq., the Family and Medical Leave Act
of 1993, as amended, 29 U. S. C. § 2601 et
seq., the Employee Retirement Income Security Act of 1974, as
amended. 29 U.S.C. § 1001, the Pennsylvania Human Relations Act, as amended, Pa.
Stat. Tit. 43, § 951 et seq., and
the common law of the Commonwealth of Pennsylvania, any contracts between the
Company and me and any common law claims now or hereafter recognized and all
claims for counsel fees and costs; provided, however, that this Mr. Imbriani
Release shall not apply to (i) any entitlements under the terms of the
Transition Agreement or under any other plans or programs of the Company in
which I participated and under which I have accrued and am due a benefit nor
(ii) to my right to be indemnified by the Company, pursuant to Section 9 of the
Transition Agreement.

This release is intended to be a
general release except that it excludes claims under any statute or common law
that Mr. Imbriani is legally barred from releasing (MR. IMBRIANI SHOULD CONSULT
WITH COUNSEL IF MR. IMBRIANI SEEKS CLARIFICATION ON THE SCOPE OF THE RELEASE);
provided, however, that Mr. Imbriani represents and agrees by signing below
that with respect to the Family and Medical Leave Act, Mr. Imbriani has not
been denied any leave or benefit requested, with respect to the Fair Labor
Standards Act and the Pennsylvania Minimum Wage Act, Mr. Imbriani has received
the appropriate pay under those Acts for all hours worked for the Company and
with respect to workers’ compensation benefits, Mr. Imbriani has no known
workplace injuries or occupational diseases.

Nothing herein is intended to or
shall preclude Mr. Imbriani from filing a charge with any appropriate federal,
state, or local government agency and/or cooperating with said agency in its
investigation.  Mr. Imbriani, however,
explicitly waives any right to file a personal lawsuit or receive monetary
damages that the agency may recover against Releasees, without regard as to who
brought any said complaint or charge.

2.             Subject to the limitations
of paragraph 1 above, I expressly waive all rights afforded by any statute
which expressly limits the effect of a release with respect to unknown
claims.  I understand the significance of
this release of unknown claims and the waiver of statutory protection against a
release of unknown claims which provides that a general release does not extend
to claims which the creditor does not know or suspect to exist in his favor at
the time of executing the release, which if known by it must have materially
affected its settlement with the debtor.

3.             I hereby agree and
recognize that my employment by the Company was permanently and irrevocably
severed on December 31, 2006 and the Company has no obligation, contractual or
otherwise to me to hire, rehire or re-employ me in the future.  I acknowledge that the terms of the
Transition Agreement provide me with payments and benefits which are in
addition to any amounts to which I otherwise would have been entitled.

4.             I hereby agree and
acknowledge that the payments and benefits provided by the Company are to bring
about an amicable resolution of my employment arrangements and are not to be
construed as an admission of any violation of any federal, state or local
statute or regulation, or of any duty owed by the Company and that this Mr.
Imbriani Release is made voluntarily to provide an amicable resolution of my
employment relationship with the Company.

 12
 

 

5.             I hereby certify that I
have read the terms of this Release, that I have been advised by the Company to
discuss it with my attorney, and that I understand its terms and effects.  I acknowledge, further, that I am executing
this Release of my own volition with a full understanding of its terms and
effects and with the intention of releasing all claims recited herein in
exchange for the consideration described in the Transition Agreement, which I
acknowledge is adequate and satisfactory to me. 
None of the above-named parties, nor their agents, representatives, or
attorneys have made any representations to me concerning the terms or effects
of this  Release other than those
contained herein.

6.             I hereby acknowledge that I
have been informed that I have the right to consider this Release for a period
of 21 days prior to execution. I also understand that I have the right to
revoke this Release for a period of seven days following execution by giving
written notice to the Company.

Intending to be legally bound hereby, I execute the
foregoing Release this 8th day of November, 2006.

	
  

  	
   

  	
   

  
	
  /s/ Kevin W. Doran

  	
   

  	
  /s/ Michael
  R. Imbriani

  
	
  Witness

  	
   

  	
  Michael R. Imbriani

  

 

 13
 

 

APPENDIX B

MUTUAL RELEASE

1.             PQ Corporation, and each of its parent,
subsidiaries and affiliates, their officers, directors, shareholders, partners,
employees and agents, their respective successors and assigns, heirs, executors
and administrators (hereinafter collectively, the “Company”),  for and in consideration of the release of
Michael R. Imbriani (“Mr. Imbriani”) under Section 2 of the Transition
Agreement dated as of November 8, 2006 (the “Transition Agreement”) to which
this Mutual Release is attached as Appendix B, and other good and valuable
consideration, do hereby REMISE, RELEASE, and FOREVER DISCHARGE Mr. Imbriani,
his assigns, heirs, executors and administrators (hereinafter collectively
included within the term “Mr. Imbriani”), acting in any capacity whatsoever, of
and from any and all manner of actions and causes of actions, suits, debts,
claims and demands whatsoever in law or in equity, which it ever had, now have,
or hereafter may have, by reason of any matter, cause or thing whatsoever from
the date of his employment by the Company to the date of this Mutual Release
arising from or relating in any way to Mr. Imbriani’s employment relationship
or the termination of Mr. Imbriani’s employment relationship with the Company,
including but not limited to, any claims which have been asserted, could have
been asserted, or could be asserted now or in the future under any federal,
state or local laws, any contracts between the Company and Mr. Imbriani and any
common law claims now or hereafter recognized and all claims for counsel fees
and costs; provided, however, that this Mutual Release shall not apply to
action attributable to a criminal act, an action to enforce the terms of the
Transition Agreement, Appendix A, General Release, nor shall this release
become effective until the eighth day after the execution, without revocation
of Mr. Imbriani’s General Release.

2.             Subject to the limitations of paragraph 1
above, the Company expressly waives all rights afforded by any statute which
expressly limits the effect of a release with respect to unknown claims.  The Company understands the significance of
this release of unknown claims and the waiver of statutory protection against a
release of unknown claims which provides that a general release does not extend
to claims which the creditor does not know or suspect to exist in its favor at
the time of executing the release, which if known by it must have materially
affected its settlement with the debtor.

The Company hereby certifies that it has been advised
by counsel in the preparation and review of this Mutual Release.

[SIGNATURE PAGE FOLLOWS]

 14
 

 

Intending to be legally bound hereby, the Company
executed the foregoing Mutual Release this 8th day of November 2006.

	
  

  	
  PQ CORPORATION

  
	
   

  
	
   

  
	
   

  	
  By:

  	
  /s/ William
  J. Sichko, Jr.

  	
   

  
	
   

  	
  Printed Name:
  William J. Sichko, Jr.

  
	
   

  	
  Title: Chief
  Administrative Officer

  

 

 15
 

 

APPENDIX C

THIS CONSULTING AGREEMENT is hereby entered into by and between PQ
Corporation (“PQ”) and Michael R.
Imbriani (“Mr. Imbriani”) on this
8th day of November 2006 under which PQ and the Consultant agree as follows:

Imbriani’s
Duties.  Mr.
Imbriani will perform consulting
services as reasonably
requested by PQ’s Chief Executive Officer or his designee.  At such time as PQ requests him to render
such services, PQ will provide Mr. Imbriani with reasonable administrative
support

Term of Consulting Agreement.  The term of
the Consulting Agreement will start on January 1, 2007 and will continue until
December 31, 2007.

Compensation.  PQ will pay Mr. Imbriani Seventy
Thousand Dollars ($70,000) to work as a consultant pursuant to this Consulting
Agreement.  This amount shall be paid to
Mr. Imbriani in a single lump sum on or before December 30,
2006.  In exchange for the compensation, Mr.
Imbriani agrees to work 30 days in calendar year 2007.  PQ agrees to provide Mr. Imbriani reasonable
notice of such days, taking into account any other obligations to which he is
then subject.  If Mr. Imbriani works more
than 30 days during the term of this Consulting Agreement, he will be
compensated at a rate of $1,375 per day.

Expenses.  PQ will reimburse Mr. Imbriani for
all reasonable and necessary expenses performing any of the duties required of
him under this Consulting Agreement which are consistent with the Company’s
policies in effect from time to time. 
All expenses will be reimbursed under the same conditions as the PQ T+E
policy. Notwithstanding the foregoing, Mr. Imbriani must submit all expense
reimbursement requests to the PQ representative identified in Section 7 of this Consulting Agreement.

Confidentiality.  Mr. Imbriani
agrees that all of the covenants of Section 4 of his Transition Agreement are
applicable to all work that he performs as a consultant.

Surviving Provisions. The obligations set forth in Sections 5 of this
Consulting Agreement shall survive the termination and/or expiration of the
Consulting Agreement.

Notices to the Company.  All notices to and communications
with PQ shall be directed to:

	
  (i)

  	
   

  	
  if to Mr. Imbriani:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Michael R. Imbriani

  
	
   

  	
   

  	
  195 Daylesford Blvd.

  
	
   

  	
   

  	
  Berwyn, PA 19312

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (ii)

  	
   

  	
  if to the Company, to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PQ Corporation

  
	
   

  	
   

  	
  1200 Swedesford Road

  
	
   

  	
   

  	
  Berwyn, PA 19312

  
	
   

  	
   

  	
  Attention:

  	
  William J. Sichko, Jr.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

Termination of Consulting Agreement.  PQ shall have the right to
terminate its obligations under the Consulting Agreement at any time in the event of a material breach of any
of its terms by Consultant.  PQ will
provide Consultant with written notice of breach of this Consulting Agreement,
and Consultant will have ten (10) business days to cure such breach.  Consultant will be liable for all damages
that may result from his gross negligence or willful misconduct in the
performance of his obligations under this
Consulting Agreement.

Agreed to by Consultant and PQ:

	
  

  	 

	
  CONSULTANT:

  	
   

  	
  /s/ MICHAEL R. IMBRIANI

  	
   

  
	
   

  	
  Michael R. Imbriani

  	 

					

 

 16
 

 

	
  DATE:

  	
   

  	
  November 8, 2006

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PQ CORPORATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BY:

  	
   

  	
  /s/ William
  J. Sichko, Jr.

  	
   

  
	
   

  	
   

  	
  William J. Sichko, Jr.

  
	
   

  	
   

  	
  Chief Administrative Officer

  
	
   

  	
   

  	
   

  
	
  DATE:

  	
   

  	
  November 8, 2006

  
					

 

 

 17Exhibit 10.15

Employment
Agreement, Effective October 1, 2005 by and between Paul Ferrall and PQ
Corporation

EMPLOYMENT
AGREEMENT dated as of
September 15, 2005, and effective as of October 1, 2005, by and between PQ
Corporation, a Pennsylvania corporation (the “Company”) and wholly-owned
subsidiary of Niagara Holdings, Inc., a Delaware corporation (“Holdings”),
and Paul Ferrall (the “Executive”).

WHEREAS, pursuant to that certain Agreement and Plan
of Merger dated as of December 15, 2004 (the “Merger Agreement”) by and
among the Company, Holdings and Niagara Acquisition, Inc., a Delaware
corporation and wholly-owned subsidiary of Holdings (“Merger Sub”),
Merger Sub was merged with and into PQ, with PQ as the surviving corporation
(the “Merger”) effective as of February 11, 2005.

WHEREAS, the Company desires to employ the Executive,
and the Executive desires to accept such employment, on the terms and subject
to the conditions hereinafter set forth. 
Capitalized terms used herein and not otherwise defined shall have the
meanings ascribed to them in Section 13.

NOW,
THEREFORE, in
consideration of the covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

Employment.

The
Company shall employ the Executive, and the Executive accepts employment with
the Company, upon the terms and conditions set forth in this Agreement for the
period beginning on October 1, 2005 (the “Effective Date”) and ending on
the Termination Date determined pursuant to Section 4(a) (the “Employment
Period”).

Position
and Duties.

During the Employment Period, the Executive shall report to the Chief
Executive Officer of the Company  (the
“CEO”)  and perform such
duties, activities and responsibilities as directed by the CEO.  The Executive acknowledges and agrees that he
owes a fiduciary duty of loyalty to the Company to discharge his duties and
otherwise act in a manner consistent with the best interests of the Company and
its Subsidiaries.

During the Employment Period, except with the prior consent of the
Board (excluding the Executive if he should be a member of the Board at the
time of such determination), the Executive shall devote his best efforts and
all of his working time, attention and energies to the performance of his
duties and responsibilities under this Agreement (except for vacations to which
he is entitled pursuant to Section 3(a) and except for illness or
incapacity).  The Executive shall not
engage in any business activity which, in the reasonable judgment of the Board
(excluding the Executive if he should be a member of the Board at the time of
such determination), conflicts with the duties of the Executive hereunder,
whether or not such activity is pursued for gain, profit or other pecuniary
advantage.

Base
Salary, Bonus and Benefits.

During the Employment Period, the Executive’s base salary shall be
$200,000 per annum, or such higher rate as the Board or Compensation Committee
of the Board (excluding the Executive if he should be a member of the Board or
the Compensation Committee at the time of such determination) may designate
from time to time (the “Base Salary”), which salary shall be payable in
such installments as is customary for other senior executives of the Company.  The Executive shall be entitled to take four
(4) weeks of paid vacation annually.  The
Board or Compensation Committee shall conduct a review of the Executive’s Base
Salary on an annual basis.  During the
Employment Period, the Executive shall also be entitled to participate in the
standard benefit plans available to the Company’s employees generally, in
accordance with the terms and conditions of such plans as in effect from time
to time.

Executive shall be eligible to receive, in addition to the Base Salary,
an annual bonus (the “Bonus”) for services rendered during each calendar
year in the Employment Period.  The
amount of Bonus, if any, payable in respect of any calendar year will be
determined based on the achievement of performance goals established by the
Board or Compensation Committee within the first 90 days of such year.  The target Bonus in respect of each calendar
year (the “Target Bonus Percentage”) will equal 35%  of the base salary paid or payable to the
Executive for such year.  The Bonus, if
any, payable with respect to a calendar year shall be paid within thirty (30)
days following the rendering of the Company’s audited financial statements for
the relevant calendar year, subject to Executive’s continued
employment with the Company through such payment date.

 1
 

 

The Company shall reimburse the Executive for all reasonable and
necessary expenses incurred by him in the course of performing his duties under
this Agreement which are consistent with the Company’s policies in effect from
time to time with respect to travel, entertainment and other business expenses,
subject to the Company’s requirements with respect to reporting and
documentation of such expenses.

The
Company shall deduct from any payments to be made by it to or on behalf of the
Executive under this Agreement any amounts required to be withheld in respect
of any federal, state or local income or other taxes.

Termination.

Termination Date.  The Executive’s employment under this
Agreement shall terminate upon the earliest to occur (the date of such
occurrence being the “Termination Date”) of (i) the expiration of the
Term; (ii) the effective date of the Executive’s resignation other than for
Good Reason (a “Resignation”); (iii) the Executive’s death or Disability
(an “Involuntary Termination”); (iv) the effective date of a termination
of the Executive’s employment for Cause by the Board (a “Termination for
Cause”); (v) the effective date of Executive’s resignation for Good Reason
(a “Termination for Good Reason”) and (vi) the effective date of a
termination of the Executive’s employment by the Board for reasons that do not
constitute Cause (a “Termination without Cause”).  The effective date of a Resignation or
Termination for Good Reason shall be as determined under Section 4(b); the
effective date of an Involuntary Termination shall be the date of death or, in
the event of a Disability, the date specified in a notice delivered to the
Executive by the Company; and the effective date of a Termination for Cause or
a Termination without Cause shall be the date specified in a notice delivered
to the Executive by the Company of such termination.

Resignation or Termination for Good Reason.  The
Executive shall give the Company at least 30 days’ prior written notice of his
Resignation or Termination for Good Reason, with the effective date thereof
specified therein.  The Board may, in its
discretion, accelerate the effective date of such termination of employment.

Term/Renewal.  The initial term of employment under this
Agreement (the “Initial Term”) shall be for the period beginning on the
Effective Date and ending on the fifth anniversary thereof, unless earlier
terminated pursuant to Section 4(a); provided that the term of
employment may be extended for one or more additional one (1) year period(s)
(each, an “Extension Term”) by mutual agreement of the Company and the
Executive not later than 90 days prior to the expiration of the Initial Term or
Extension Term, if any, then in effect. 
The Initial Term and any Extension Term shall be collectively referred
to as the “Term” hereunder. 
Nothing stated in this Agreement or represented orally or in writing to
either party shall create any obligation of either party to renew this
Agreement.

Effect of
Termination; Severance.

General.  In the event of the Executive’s termination
of employment for any reason, the Executive or his estate or beneficiaries
shall have the right to receive the following:

the
unpaid portion of the Base Salary and paid time off accrued and payable through
the Termination Date; and

reimbursement
for any expenses for which
the Executive shall not have been previously reimbursed, as provided in Section
3(c).

The Executive (or his estate or beneficiaries) shall
be entitled to the cash severance payments described below only as set forth
herein, and the provisions of this Section 5 shall supersede in their
entirety any severance payment provisions in any severance plan, policy,
program or arrangement maintained by the Company.

Termination without Cause
or Termination for Good Reason. In the event of a Termination
without Cause or a Termination for Good Reason, and subject to the Executive’s
entering into a Release Agreement with the Company in substantially the form
attached hereto as Exhibit A (the “Release”), the Executive
shall have the right to receive the following:

the
Base Salary provided by Section 3(a) hereof for a period of eighteen
(18) months from the Termination Date (the “Severance Period”), such
amount to be deemed liquidated damages and payable at the applicable payroll
periods; provided, however, that in the event of a breach by the
Executive of Section 6, 7, 8, or 9 on or after the
Termination Date, the provisions of Section 11 shall apply;

 2
 

 

a
pro rata amount of the Bonus, if any, which would have been payable to the
Executive for the calendar year in which such termination occurs, determined
after the end of the calendar year in which such termination occurs and equal
to the amount which would have been payable to the Executive if Executive’s
employment had not been terminated during such calendar year multiplied by a
fraction, the numerator of which is the number of whole months the Executive
was employed by the Company during such calendar year and the denominator of
which is 12.  Any pro rata bonus payable
under this Section 5(b)(ii) shall be paid in substantially equal
installments over the remaining term of the Severance Period following
calculation of such pro rata bonus amount;

an
amount equal to the product of (A) the amount of the Bonus, if any, paid or
payable to the Executive in respect of the most recently completed fiscal year
ending on or prior to the Termination Date and (B) 1.5, to be paid in
substantially equal installments over the Severance Period; and

an
amount equal to any earned but unpaid Bonus in respect of fiscal years ending
on or prior to the Termination Date, to be paid in substantially equal
installments over the Severance Period.

Involuntary Termination.  In the event of an Involuntary
Termination, the Executive (or his estate or beneficiaries) shall have the
right to receive a pro rata amount of the Bonus, if any, which would have been
payable to the Executive for the calendar year in which such termination
occurs, determined after the end of the calendar year in which such termination
occurs and equal to the amount which would have been payable to the Executive
if Executive’s employment had not been terminated during such calendar year
multiplied by a fraction, the numerator of which is the number of whole months
the Executive was employed by the Company during such calendar year and the
denominator of which is 12.  Any pro rata
bonus payable under this Section 5(c) shall be paid within thirty days
following the determination of such pro rata bonus amount.

The rights of the Executive set forth in this Section 5 are
intended to be the Executive’s exclusive remedy for termination and, to the
greatest extent permitted by applicable law, the Executive waives all other
remedies.

Nondisclosure
and Nonuse of Confidential Information.

The
Executive will not disclose or use at any time, either during the Employment
Period or thereafter, any Confidential Information of which the Executive is or
becomes aware, except to the extent that (i) such disclosure or use is directly
related to and required by the Executive’s performance of duties assigned to
the Executive by the Company; (ii) to the extent that such disclosure is
required in connection with any action by the Executive to enforce rights under
this Agreement or (iii) such disclosure is required by a court of law,
governmental agency, or by any administrative or legislative body with
jurisdiction to order the Executive to divulge or disclose such Confidential
Information; provided, that, the Executive shall provide ten (10) days
prior written notice to the Company of any such requirement or order to
disclose Confidential Information so that the Company may seek a protective
order or similar remedy; and, provided, further, that, in each case set forth
above, the Executive informs the recipients that such information or
communication is confidential in nature.

Inventions
and Patents.

The
Executive agrees that all Work Product belongs to the Company.  The Executive will promptly disclose such
Work Product to the Board and perform all actions reasonably requested by the
Board (whether during or after the Employment Period) to establish and confirm
such ownership (including, without limitation, the execution and delivery of
assignments, consents, powers of attorney and other instruments) and to provide
reasonable assistance to the Company in connection with the prosecution of any
applications for patents, trademarks, trade names, service marks or reissues
thereof or in the prosecution or defense of interferences relating to any Work
Product.

Non-Compete
and Non-Solicitation.

The
Executive acknowledges and agrees with the Company that during the course of
the Executive’s employment with the Company, the Executive will have the
opportunity to develop relationships with existing employees, customers and
other business associates of the Company and its Subsidiaries which
relationships constitute goodwill of the Company, and the Company would be
irreparably damaged if the Executive were to take actions that would damage or
misappropriate such goodwill. 
Accordingly, the Executive agrees as follows:

The Executive acknowledges that the Company currently conducts its
business throughout North America, South America, Europe and Asia (the “Territory”).  Accordingly, during the Term and during the
18-month period following the Termination Date (the “Non-Compete Period”),
the Executive shall not, directly or indirectly, enter into, engage in, assist,

 3
 

give
or lend funds to or otherwise finance, be employed by or consult with, or have
a financial or other interest in, any business which engages within the
Territory in any business in which the Company engages, whether for or by
himself or as an independent contractor, agent, stockholder, partner or joint
ventures for any other Person (any such activity, “Competition”).  To the extent that the covenant provided for
in this Section 8(a) may later be deemed by a court to be too broad to
be enforced with respect to its duration or with respect to any particular
activity or geographic area, the court making such determination shall have the
power to reduce the duration or scope of the provision, and to add or delete
specific words or phrases to or from the provision.  The provision as modified shall then be
enforced.

Notwithstanding the foregoing, the aggregate ownership by the Executive
of no more than two (2) percent (on a fully-diluted basis) of the outstanding
equity securities of any Person, which securities are traded on a national or
foreign securities exchange, quoted on the NASDAQ stock market or other
automated quotation system, and which Person competes with the Company (or any
part thereof) within the Territory, shall not be deemed to be a violation of Section
8(a).  In the event that any Person
in which the Executive has any financial or other interest directly or indirectly
enters into a line of business during the Non-Compete Period that competes with
the Company or engages in the business of the Company within the Territory, the
Executive shall divest all of his interest (other than as permitted to be held
pursuant to the first sentence of this Section 8(b)) in such Person
within 15 days after such Person enters into such line of business that
competes with the Company or engages in such business within the Territory.

The Executive covenants and agrees that during the Term and during the
18-month period following the Termination Date, except as expressly
provided herein, the Executive will not, directly or indirectly, either for
himself or for any other Person (i) solicit any employee or consultant of the
Company or any of its Subsidiaries to terminate his or her employment or
consulting relationship with the Company or any of its Subsidiaries; (ii)
employ any employee or consultant of the Company or any of its Subsidiaries
during the period of his or her employment or consulting relationship with the
Company or any of its Subsidiaries; (iii) solicit any customer of the Company
or any of its Subsidiaries to purchase or distribute information, products or
services of or on behalf of the Executive or such other Person that are
competitive with the information, products or services provided by the Company
or any of its Subsidiaries or (iv) take any action that may cause injury
to the relationships between the Company or any of its Subsidiaries or any of
their employees and any lessor, lessee, vendor, supplier, customer,
distributor, employee, consultant or other business associate of the Company or
any of its Subsidiaries as such relationship relates to the Company’s or any of
its Subsidiaries’ conduct of their business. 
Notwithstanding the preceding sentence, the provisions of this Section
8(c) shall not apply to the solicitation or employment of the members of
the Peak Group (but shall apply with respect to the solicitation or employment
of Michael R. Boyce); provided, however, that nothing herein
shall be construed as an amendment, waiver or modification to any other term or
provision of this Agreement, or to any restrictive covenant or other provision
contained in any agreement between any member of the Peak Group or Michael R.
Boyce and Holdings, the Company or any Subsidiary of either of them.

The Executive understands that the foregoing restrictions may limit his
ability to earn a livelihood in a business similar to the business of the
Company and any of its Subsidiaries, but he nevertheless believes that he has
received and will receive sufficient consideration and other benefits as an
employee of the Company and as otherwise provided hereunder or as described in
the recitals hereto to clearly justify such restrictions which, in any event
(given his education, skills and ability), the Executive does not believe would
prevent him from otherwise earning a living.

Delivery
of Materials Upon Termination of Employment.

The
Executive shall deliver to the Company at the termination of the Employment
Period or at any time the Company may request all memoranda, notes, plans,
records, reports, computer tapes and software and other documents and data (and
copies thereof) relating to the Confidential Information or Work Product which
he may then possess or have under his control regardless of the location or
form of such material and, if requested by the Company, will provide the
Company with written confirmation that all such materials have been delivered
to the Company.

Insurance.

The
Company may, for its own benefit, maintain “key man” life and disability
insurance policies covering the Executive. 
The Executive will cooperate with the Company and provide such
information or other assistance as the Company may reasonably request in connection
with the Company obtaining and maintaining such policies.

Enforcement.

Because
the Executive’s services are unique and because the Executive has access to
Confidential Information and Work Product, the parties hereto agree that money
damages would be an inadequate remedy for any breach of this

 4
 

Agreement. 
Therefore, in the event of a breach or threatened breach of this
Agreement, the Company or its successors or assigns may, in addition to other
rights and remedies existing in their favor, apply to any court of competent
jurisdiction for specific performance and/or injunctive or other relief in
order to enforce, or prevent any violations of, the provisions hereof (without
posting a bond or other security).  In addition
to the foregoing, and not in any way in limitation thereof, or in limitation of
any right or remedy otherwise available to the Company, if the Executive
violates any provision of the foregoing Sections 6, 7, 8
or 9, any payments then or thereafter due from the Company to the
Executive pursuant to Section 5(b) shall be terminated forthwith and the
Company’s obligation to pay and the Executive’s right to receive such payments
shall terminate and be of no further force or effect, in each case without
limiting or affecting the Executive’s obligations under such Sections 6,
7, 8 and 9 or the Company’s other rights and remedies
available at law or equity.

Representations.

Each party hereby represents and warrants to the other party that (a)
the execution, delivery and performance of this Agreement by such party does
not and will not conflict with, breach, violate or cause a default under any
agreement, contract or instrument to which such party is a party or any
judgment, order or decree to which such party is subject, and (b) upon the
execution and delivery of this Agreement by such party, this Agreement will be
a valid and binding obligation of such party, enforceable in accordance with
its terms, except as enforcement hereof may be limited by any applicable
bankruptcy, reorganization, insolvency or other laws affecting creditors rights
generally or by general principles of equity. 
In addition, the Executive represents and warrants to the Company that
the Executive is not a party to or bound by any employment agreement,
consulting agreement, non-compete agreement, confidentiality agreement or
similar agreement with any other Person.

The Executive has as of the date hereof purchased, directly or
indirectly, or has caused PQP LLC to purchase, for his benefit, not less than
five hundred (500) shares of Class B Common Stock (the “Executive Stock”).  The Executive represents and warrants that at
all times during the Employment Period, he shall maintain his direct or
indirect beneficial ownership of the Executive Stock (as adjusted for any stock
dividend, stock split, reverse stock split or recapitalization) and shall not
transfer, and shall cause the record owner of the Executive Stock or any voting
or economic interest therein not to transfer, the Executive Stock other than
pursuant to and in compliance with the Stockholders Agreement.

Definitions.

 “Board”
shall mean the board of directors of the Company.

“Business Day” shall mean any day that is not a
Saturday, Sunday, or a day on which banking institutions in New York are not
required to be open.

“Cause” shall mean (i) the failure by the
Executive to perform such duties as are reasonably requested by the Board which
is not cured within thirty (30) days of receipt by the Executive of written
notice detailing the same from the Board; (ii) the failure by the Executive to
observe any material Company policies and material policies of all Subsidiaries
of the Company generally applicable to executives of the Company and/or its
Subsidiaries of which the Executive has notice; (iii) gross negligence or
willful misconduct by the Executive in the performance of his duties or the
Executive’s willful disregard of his duties; (iv) the commission by the
Executive of any act which results in his conviction, or plea of guilty or no
contest to, a felony, or his commission of any act involving moral turpitude,
fraud or theft; (v) the material breach by the Executive of (A) this
Agreement, including, without limitation, any breach by the Executive of the
provisions of Section 6, Section 7 or Section 8, (B) any
Subscription Agreement or Restricted Stock Agreement or (C) any Stockholders
Agreement to which the Company or Holdings and the Executive may become a party
or (vi) any acts of dishonesty undertaken by the Executive and intended to
result in substantial enrichment, at the Company’s expense, of the Executive or
any other Person.

“Change
of Control” shall mean the first occurrence of any one of the
following:  (i) a change in the ownership or control of the Company
effected through a transaction or series of transactions (including by way of
merger, consolidation, business combination or similar transaction involving
the Company or any of its Subsidiaries) whereby any “person” or related “group”
of “persons” (as such terms are used in Sections 13(d) and 14(d)(2) of the Exchange
Act) (other than the Company, any of its Subsidiaries, an employee benefit plan
maintained by the Company or any of its Subsidiaries, or a “person” that, prior
to such transaction, directly or indirectly controls, is controlled by, or is
under common control with, the Company) directly or indirectly acquires
beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act),
of 50% or more of the total combined voting power of the Company’s Shares
outstanding immediately after such transaction or series of transactions; or
(ii) the sale, lease, transfer, conveyance or other disposition (other than by
way of a transaction that would not be deemed a Change of Control pursuant to
clause (i) above), in one or a series of related transactions, of all or
substantially all of the assets of the Company and its Subsidiaries taken as a
whole, to any “person” (as defined above).

 5
 

 

“Class B
Common Stock” shall mean the Class B Common Stock, $0.01 par value
per share, of Holdings.

“Company” shall have the meaning set forth in
the preamble; provided, that, for purposes of Sections 6, 7, 8 and 9,
“Company” shall include Niagara Holdings, Inc.

“Confidential Information” shall mean
information that is not generally known to the public and that is or was used,
developed or obtained by the Company or any of its Subsidiaries or affiliates,
known by the Executive as a consequence of his employment with, or direct or
indirect services as agent, employee or consultant, to or on behalf of, the
Company or Holdings or any Subsidiary or affiliate of either of them,
including, but not limited to the following: (i) information,
observations, procedures and data concerning the business or affairs of the
Company or any of its Subsidiaries; (ii) products or services; (iii) costs and
pricing structures; (iv) analyses; (v) drawings, photographs and reports;
(vi) computer software, including operating systems, applications and program
listings; (vii) flow charts, manuals and documentation; (viii) data bases;
(ix) accounting and business methods; (x) inventions, devices, new
developments, methods and processes, whether patentable or unpatentable and
whether or not reduced to practice; (xi) customers, vendors, suppliers and
customer, vendor and supplier lists; (xii) other copyrightable works; (xiii)
all production methods, processes, technology and trade secrets and (xiv) all
similar and related information in whatever form.  Confidential Information will not include any
information that has been published in a form generally available to the public
prior to the date the Executive proposes to disclose or use such
information.  Confidential Information
will not be deemed to have been published merely because individual portions of
the information have been separately published, but only if all material
features comprising such information have been published in combination.

“Disability” shall mean the physical or mental
illness, disease or incapacity of the Executive (i) that renders him
substantially unable to perform all of his duties under this Agreement for a
period of 90 consecutive days or longer, or for 90 or more days in any period
of 365 consecutive days, or (ii) that, in the opinion of a physician selected
by the Board (excluding the Executive if the Executive is a member of the Board
at such time), but reasonably acceptable to the Executive, is likely to prevent
the Executive from substantially performing all of his duties under this
Agreement for more than 90 days in any period of 365 consecutive days.

“Good Reason” shall mean the occurrence of any
of the following events without the prior consent of the Executive:  (i) a material reduction in the Executive’s
authority, duties and responsibilities, excluding for this purpose isolated or
immaterial actions or (ii) a reduction in the Base Salary or Target Bonus
Percentage or any failure by the Company to provide any material payment or
benefit under this Agreement; provided, however, that in each case the
Executive may not resign his employment for Good Reason unless: (x) he provides
the Company with at least 30 days’ prior written notice of his intent to resign
for Good Reason (which notice is provided not later than the 30th day following
the occurrence of the event constituting Good Reason) and (y) the Company does
not remedy the alleged violation(s) within such 30-day notice period.  In addition to the foregoing, the Executive
shall have “Good Reason” to resign his employment upon 30 days’ prior
written notice not later than 90 days following the occurrence of a Change of
Control.

“Peak Group” shall mean William J. Sichko, Jr.,
Scott Randolph and Billy Whalen.

“Person” shall be construed broadly and shall
include, without limitation, an individual, a partnership, an investment fund,
a limited liability company, a corporation, an association, a joint stock
company, a trust, a joint venture, an unincorporated organization and a
governmental entity or any department, agency or political subdivision thereof.

“Representative” shall mean, with respect to a
deceased Executive, the duly appointed, qualified and acting personal
representative (or personal representatives collectively) of the estate of the
deceased Executive (or portion of such estate that includes Executive Stock),
whether such personal representative holds the position of executor,
administrator or other similar position qualified to act on behalf of such
estate.

“Restricted Stock Agreement” shall mean the
Restricted Stock Agreement, dated on or about the date hereof, relating to the
vesting, sale and other matters involving the stock of Holdings held by the
Executive.

“Stockholders Agreement” shall mean the
Stockholders Agreement dated on or about the Effective Date between Holdings
and certain stockholders of Holdings, as amended, modified or supplemented from
time to time.

“Subscription Agreement” shall mean that
certain Subscription and Stock Purchase Agreement dated on or about the date
hereof between Holdings and the Executive.

 6
 

 

“Subsidiary” or “Subsidiaries” of any
Person shall mean any corporation, partnership, joint venture or other legal
entity of which such Person (either alone or through or together with any other
Person), owns, directly or indirectly, 50% or more of the stock or other equity
interests which are generally entitled to vote for the election of the board of
directors or other governing body of such corporation or other legal entity.

“Work Product” shall mean all inventions,
innovations, improvements, technical information, systems, software
developments, methods, designs, analyses, drawings, reports, service marks,
trademarks, tradenames, logos and all similar or related information (whether
patentable or unpatentable) which relates to the Company’s or any of its
Subsidiaries’ actual or anticipated business, research and development or
existing or future products or services and which are conceived, developed or
made by the Executive (whether or not during usual business hours and whether
or not alone or in conjunction with any other Person) while employed by the
Company together with all patent applications, letters patent, trademark,
tradename and service mark applications or registrations, copyrights and
reissues thereof that may be granted for or upon any of the foregoing.

General
Provisions.

Severability.  It is the desire and intent of the Parties hereto
that the provisions of this Agreement be enforced to the fullest extent
permissible under the laws and public policies applied in each jurisdiction in
which enforcement is sought. 
Accordingly, if any particular provision of this Agreement shall be adjudicated
by a court of competent jurisdiction to be invalid, prohibited or unenforceable
for any reason, such provision, as to such jurisdiction, shall be ineffective,
without invalidating the remaining provisions of this Agreement or affecting
the validity or enforceability of this Agreement or affecting the validity or
enforceability of such provision in any other jurisdiction.  Notwithstanding the foregoing, if such
provision could be more narrowly drawn so as not to be invalid, prohibited or
unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so
narrowly drawn, without invalidating the remaining provisions of this Agreement
or affecting the validity or enforceability of such provision in any other
jurisdiction.

Notices.  All notices, requests, demands, claims and
other communications hereunder shall be in writing and sufficient if (i)
delivered personally, (ii) delivered by certified United States Post Office
mail, return receipt requested, (iii) telecopied or (iv) sent to the recipient
by a nationally-recognized overnight courier service (charges prepaid) and
addressed to the intended recipient as set forth below:

if
to the Executive, to him at his most recent address in the Company’s records,

	
  with a copy to:

  	
   

  	
  Peak Investments, L.L.C.

  
	
   

  	
   

  	
  15700 College
  Blvd.

  
	
   

  	
   

  	
  Suite 101

  
	
   

  	
   

  	
  Lenexa, KS 66219

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:

  	
  William J. Sichko, Jr.

  
	
   

  	
   

  	
  Facsimile:

  	
  (913) 227-0287

  
	
   

  	
   

  	
   

  
	
  if to the Company, to:

  	
   

  	
  PQ Corporation

  
	
   

  	
   

  	
  c/o J.P. Morgan
  Partners (BHCA), L.P.

  
	
   

  	
   

  	
  1221 Avenue of
  the Americas, 39th Floor

  
	
   

  	
   

  	
  New York, New
  York 10020

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:

  	
  Timothy J. Walsh

  
	
   

  	
   

  	
   

  	
  Stephen V. McKenna

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Facsimile:

  	
  (212) 899-3401

  
	
   

  	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  Latham & Watkins LLP

  
	
   

  	
   

  	
  885 Third
  Avenue, Suite 1000

  
	
   

  	
   

  	
  New York, NY
  10022

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:

  	
  David S. Allinson

  
	
   

  	
   

  	
  Facsimile:

  	
  (212) 751-4864

  

 

 7
 

 

or such other address as the recipient party to whom
notice is to be given may have furnished to the other party in writing in
accordance herewith.  Any such
communication shall deemed to have been delivered and received (a) in the case
of personal delivery, on the date of such delivery, (b) in the case of delivery
by mail, on the third Business Day following such mailing, (c) if telecopied,
on the date telecopied, and (d) in the case of delivery by nationally-recognized,
overnight courier, on the Business Day following dispatch.

Entire Agreement.  This Agreement, the Subscription Agreement,
the Restricted Stock Agreement and the Stockholders Agreement embody the
complete agreement and understanding among the parties and supersede and
preempt any prior or contemporaneous understandings, agreements or
representations by or among the parties, written or oral, which may have
related to the subject matter hereof in any way.

Counterparts.  This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which
together shall constitute one and the same instrument.

Successors and Assigns.  Except as otherwise provided
herein, this Agreement shall bind and inure to the benefit of and be
enforceable by the Executive and the Company and their respective successors,
assigns, heirs, representatives and estate, as the case may be; provided,
however, that the obligations of the Executive under this Agreement
shall not be assigned without the prior written consent of the Company.

Amendment and Waiver.  The provisions of this
Agreement may be amended and waived only with the prior written consent of the
Company and the Executive, and no course of conduct or failure or delay in
enforcing the provisions of this Agreement shall affect the validity, binding
effect or enforceability of this Agreement or any provision hereof.

Governing Law.  This Agreement shall be governed by and
construed in accordance with the domestic laws of the State of Delaware without
giving effect to any choice or conflict of law provision or rule that would
cause the application of the laws of any jurisdiction other than the State of
Delaware.

Descriptive Headings; Nouns and Pronouns. 
Descriptive headings are for convenience only and shall not control or
affect the meaning or construction of any provision of this Agreement.  Whenever the context may require, any
pronouns used herein shall include the corresponding masculine, feminine or
neuter forms, and the singular form of nouns and pronouns shall include the
plural and vice-versa.

Non-Qualified Deferred Compensation.  The
parties acknowledge and agree that, to the extent applicable, this Agreement
shall be interpreted in accordance with Section 409A of the Internal Revenue
Code of 1986, as amended (the “Code”) and Department of Treasury regulations
and other interpretive guidance issued thereunder, including without limitation
any such regulations or other guidance that may be issued after the date hereof.  Notwithstanding any provision of this
Agreement to the contrary, in the event that the Company determines that any
amounts payable hereunder will be immediately taxable to the Executive under
Section 409A of the Code and related Department of Treasury guidance, the
Company may (a) adopt such amendments to this Agreement and appropriate
policies and procedures, including amendments and policies with retroactive
effect, that the Company determines necessary or appropriate to preserve the
intended tax treatment of the benefits provided by this Agreement and/or (b)
take such other actions as the Company determines necessary or appropriate to
comply with the requirements of Section 409A of the Code and related Department
of Treasury guidance, including such Department of Treasury guidance and other
interpretive materials as may be issued after the date hereof.

Waiver of Jury Trial.  EACH OF THE PARTIES HERETO
HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING
OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT.

 8
 

 

*      *      *      *      *

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

PQ CORPORATION

	
  By:

  	
   

  	
  /s/ William
  J. Sichko, Jr.

  
	
   

  	
   

  	
  Name: William J. Sichko, Jr.

  
	
   

  	
   

  	
  Title:Chief
  Administrative Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Paul
  Ferrall

  
	
   

  	
   

  	
  Paul Ferrall

  

 

 9
 

 

EXHIBIT A

FORM OF
GENERAL RELEASE AND WAIVER OF CLAIMS

This General Release and Waiver of Claims (hereafter “Agreement”) is
entered into by and between PQ Corporation, a Pennsylvania corporation (the “Company”)
and Paul Ferrall (the “Employee”) on                            .

In
consideration of the mutual promises and covenants contained herein and in the
Employment Agreement by and between the Company and the Employee dated                          
(the “Employment Agreement”), and other good and valuable consideration, the
receipt of which hereby is acknowledged, the parties agree as follows:

Section
1.               Release and Waiver of
Claims.  Effective as of                       ,
in consideration of the payments, benefits, and other considerations provided
to the Employee under the Employment Agreement, the Employee, for the Employee
and the Employee’s family, heirs, executors, administrators, legal
representatives, and their respective successors and assigns, hereby releases
and forever discharges the Company, and all of its subsidiaries, officers,
directors, employees, agents, stockholders, representatives, and their
successors and assigns (collectively, “Company Entities”), from all rights,
claims or demands the Employee may have, arising at any time on or before the
date hereof, based on or arising out of the Employee’s employment with any
Company Entity or the termination of that employment, including without
limitation any claims under the Employment Agreement, or based on any services
provided to any Company Entity by the Employee other than pursuant to an
employment relationship with any Company Entity.  This includes a release of any and all
rights, claims or demands the Employee may have, whether known or unknown,
under the Age Discrimination in Employment Act (“ADEA”), which prohibits age
discrimination in employment; Title VII of the Civil Rights Act of 1964, which
prohibits discrimination in employment based on race, color, national origin,
religion or sex; the Equal Pay Act, which prohibits paying men and women
unequal pay for equal work; or under any other federal, state or local laws or
regulations regarding employment discrimination or termination of
employment.  This also includes a release
by the Employee of any claims for wrongful discharge or discrimination under
any statute, rule, regulation or under the common law, including, without limitation,
the Sarbanes-Oxley Act.  The Employee
hereby agrees never individually or with any person to file, or commence the
filing of, any charges, lawsuits, complaints or proceedings with any
governmental agency, or against any Company Entity, with respect to any of the
matters released by the Employee pursuant to this Section 1.

Section
2.               Rights Not Released or
Waived.  Section 1 hereof
notwithstanding, by signing this Agreement the Employee shall not have
relinquished any right to enforce the provisions of this Agreement.

Section
3.               Release and Waiver of
Claims Under the Age Discrimination in Employment Act.  The Employee acknowledges that the Company
has encouraged the Employee to consult with an attorney of the Employee’s
choosing and, through this Agreement, encourages the Employee to consult with
an attorney with respect to any possible claims the Employee may have,
including claims under the ADEA, as well as under the other federal, state and
local laws described in Section 1 hereof. 
The Employee understands that by signing this Agreement the Employee is
in fact waiving, releasing and forever giving up any claim under the ADEA, as
well as all other federal, state and local laws described in Section 1 hereof
that may have existed on or prior to the date hereof.

Section
4.               Waiting Period and Revocation
Period.  The Employee hereby acknowledges
that the Company has informed the Employee that the Employee has up to twenty-one
(21) days to consider this Agreement and the Employee may knowingly and
voluntarily waive that twenty-one (21) day period by signing this Agreement
earlier.  The Employee also understands
that the Employee shall have seven (7) days following the date on which the
Employee signs this Agreement within which to revoke it by providing a written
notice of revocation to the Company.

Section
5.               Acceptance.  To accept this Agreement, the Employee shall
execute and date this Agreement on the spaces provided and return a copy to the
Company at any time during the twenty-one (21) day period commencing on the date
hereof.  This Agreement shall take effect
on the eighth day following the Employee’s execution of this Agreement unless
the Employee’s written revocation is delivered to the Company within seven (7)
days after such execution.

Section 6.               Entire
Agreement.  This Agreement represents the
entire agreement of the parties with respect to the Employee’s employment and
termination thereof.  Except as
specifically provided herein, this Agreement shall supersede any written
employment agreement between the parties hereto in all respects effective as of
the date hereof.

THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND
ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF                             
APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE.

IN
WITNESS WHEREOF, and with the intention of being legally bound hereby, the
Employee has executed this General

 10
 

Release
and Waiver of Claims.

	
  

  	
   

  	
  Date:

  	
   

  	
   

  
	
  [Employee]

  	
   

  	
   

  	
   

  	
   

  

 

 

 11

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