Document:

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                                                                   Exhibit 10.23

                              COOPERATION AGREEMENT
                              ---------------------

THIS COOPERATION AGREEMENT is made as of the 24th day of June, 2002, by and
between NANOPHASE TECHNOLOGIES CORPORATION, a Delaware corporation, with offices
at 1319 Marquette Drive, Romeoville, Illinois 60446, ("Nanophase") and RODEL,
INC., a Delaware corporation, with offices at 451 Bellevue Road, Newark, DE
19713 ("Rodel").

                                    RECITALS:
                                    ---------

WHEREAS, Nanophase manufactures and sells nanocrystalline cerium oxides
particles ("Ceria") and/or dispersions of Ceria using proprietary processes (the
"Particles") for potential use in products for chemical mechanical planarization
("CMP") for semiconductor wafers (such use being hereinafter referred to as the
"Field"); and

WHEREAS, Rodel supplies consumable products, including slurry products to the
CMP market; and

WHEREAS, Nanophase and Rodel believe that use of Nanophase's Particles for
applications in the Field with Rodel's slurry products will result in superior
products for sale to Rodel's CMP customers; and

WHEREAS, Rodel desires to purchase, and Nanophase desires to sell, the Particles
for applications in the Field in accordance with the terms and conditions of
this Agreement;

NOW, THEREFORE, in consideration of the foregoing premises and the mutual
covenants and promises hereinafter set forth, the parties agree as follows:

1. Cooperation
   -----------

   (a) Nanophase and Rodel mutually agree to use all commercially reasonable
       efforts to cooperate with one another to develop one or more commercial
       slurry products incorporating the Particles for applications in the Field
       (the

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       "Development Product"). Unless otherwise agreed, each party shall be
       responsible for its own expenses in connection with the development
       effort.

   (b) Without limiting Rodel's general obligation of cooperation under
       subsection (a), above, Rodel undertakes to (i) provide Nanophase with
       target specifications, performance data and analytical assistance as may
       be agreed to characterize Development Product performance, (ii) test and
       evaluate Development Product samples provided by Nanophase and provide
       feedback as to the results thereof to Nanophase in a timely manner, (iii)
       keep Nanophase regularly advised of the general market situation
       applicable to the Development Products, and (iv) include Nanophase
       business and technical personnel in meetings with business and technical
       personnel at Rodel's customers, as appropriate, to discuss and promote
       the Particles and the Development Products.

   (c) Without limiting Nanophase's general obligation of cooperation under
       subsection (a), above, Nanophase undertakes to (i) provide Rodel with
       reasonable research samples of the Development Product for testing and
       evaluation as may be agreed, together with related physical, chemical and
       other information, (ii) devote sufficient resources (including equipment
       and personnel) as may be agreed to provide for the development effort,
       and (iii) provide agreed technical support to Rodel and its customers as
       to the use of the Particles and the Development Products.

   (d) Any intellectual property created or invented after the date of this
       Agreement in connection with the Development Product shall be owned as
       follows, regardless of whether such intellectual property was created or
       invented by personnel of Nanophase, Rodel or both of them: (i) Nanophase
       shall own all such intellectual property to the extent related or
       applicable to the manufacture of Particles for applications in the Field,
       and (ii) Rodel shall own all such intellectual property to the extent
       related or applicable to slurry formulation and manufacture for CMP
       applications. Each party agrees to notify the other promptly of any
       inventions pertaining to applications in the

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       Field which are created by the other or its personnel under this Section,
       and to cooperate with the other and its counsel to take such action and
       execute such documents as may be required or reasonably requested to
       effect the allocation of rights set forth herein, including cooperating
       with the other in the filing and prosecution of all patent applications
       resulting from any inventions pertaining to applications in the Field in
       connection with the Development Product.

2. Purchase and Sale
   -----------------

   Subject to the terms and conditions of this Agreement, Nanophase will sell,
   and Rodel will purchase, all of Rodel's worldwide requirements for Ceria for
   applications in the Field.

3. Exclusivity
   -----------

   Subject to Rodel's complying with the purchase minimums stated in Section
   12(a), the purchase and sale obligations set forth in Section 2 shall be
   mutually exclusive; i.e,, except as specifically otherwise provided herein,
   for the term of this Agreement, Nanophase will not sell or sample Ceria
   Particles for applications in the Field to any manufacturer, seller or end
   user of CMP slurries other than Rodel, and Rodel will not purchase Ceria
   Particles for CMP applications from any manufacturer or supplier other than
   Nanophase. This Section shall not apply to Rodel's purchase of evaluation
   samples in connection with Section 11(b), nor to Nanophase's sale of
   evaluation samples to customers other than Rodel who have submitted purchase
   orders for such samples to Nanophase before the date of this Agreement, but
   not to exceed 1,000 kilograms for applications in the Field.

4. Forecasts and Orders
   --------------------

   (a) Rodel will provide Nanophase with a rolling eighteen-month forecast of
       the volume of its Particle requirements at the start of each calendar
       quarter. The first three months of this forecast shall be firm and
       accompanied by a purchase order for such forecast. Unless otherwise
       agreed, Nanophase

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       need not manufacture more than [ * * * ] of the forecasted six-month
       volume in any single month period.

   (b) Rodel will give Nanophase six months prior written notice before
       Nanophase will be obliged to either (i) have installed capacity or
       manufacture over [ * * * ] of Particles per annum, or (ii) increase
       production by more than [ * * * ] kilograms of Particles over the
       production for the previous six-month period. Provided that Nanophase is
       given such six-month notice, it will be obliged to manufacture up to [ *
       * * ] kilograms of Particles in the first year of this Agreement.

   (c) If Rodel requests that Nanophase commit to manufacture an amount of
       Particles in excess of [ * * * ] kilograms per annum, the parties will
       negotiate in good faith a mutually acceptable arrangement for payment of
       the capital expenditures required in order for Nanophase to manufacture
       such increased amount. Any failure of Rodel or Nanophase to agree upon
       such a mutually acceptable arrangement following good faith negotiations
       shall not constitute either (i) an unwillingness by Nanophase to supply
       Rodel with Particles under Section 8(a) of this Agreement, or (ii) a
       breach of any party's obligations under the Agreement.

   (d) Rodel will submit written purchase orders to Nanophase giving reasonable
       notice which may not be less than three weeks prior to the requested date
       of shipment and specifying the required quantities, shipment dates,
       destinations and other relevant information, and Nanophase will use
       commercially reasonable efforts to fill the orders (including using
       reasonable commercial efforts to fill orders for which Rodel may be
       unable to provide a full three weeks' notice) so that Rodel may meet its
       delivery commitments to its customers.

   (e) Other provisions applicable to the purchase and sale of the Particles
       shall be as provided in Rodel's standard terms and conditions of sale, to
       the extent not inconsistent with this Agreement.

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5. Price and Payment
   -----------------

   (a) Based on the minimum volumes required for Rodel to maintain exclusivity
       under Section 12(a), the sales price for the Particles shall be [ * * * ]
       If agreed indices for Ceria raw materials show that the costs of these
       materials has significantly changed after 2002, the parties will
       negotiate in good faith to determine the appropriate pricing adjustments.

   (b) Unless otherwise agreed by the parties with respect to any particular
       order, all shipment of Particles shall be F.O.B. Nanophase's facility,
       with title and risk of loss passing at the shipment point. Rodel will
       make payment in full of all Particles conforming to the specifications
       described in Exhibit A within thirty (30) days of receipt of invoice.

6. Warranties
   ----------

   (a) Nanophase warrants that (i) to the best of its knowledge, the processes
       Nanophase applies in manufacturing and selling the Particles do not
       infringe upon any patent or trade secret of any third party, and (ii) all
       Particles shipped under this Agreement will conform to the specifications
       agreed upon in writing, including those set forth in Exhibit A, as the
       same may hereafter be amended by the parties (the "Specifications"), and
       (iii) the Particles and their manufacture are and shall be in compliance
       with all applicable laws, rules and regulations, the noncompliance with
       which, if Nanophase is unable to cure the noncompliance within 90 days of
       notification thereof, would result in Nanophase's inability to meet its
       supply obligations under this Agreement. If, notwithstanding Nanophase's
       compliance with its warranty given in clause (i) hereof, Nanophase
       receives notice from a third party alleging that its processes infringe a
       patent or trade secret of such third party, then Nanophase and Rodel will
       consult one another in good faith to discuss actions to resolve the
       claim, including possible financial support by Rodel and consideration by
       Nanophase in respect thereof. These warranties are in lieu of all other
       warranties or conditions express or implied. TO THE EXTENT ALLOWABLE BY
       LAW,

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       THIS EXCLUSION OF ALL OTHER WARRANTIES OR CONDITIONS EXTENDS TO IMPLIED
       WARRANTIES OR CONDITIONS OF MERCHANTABLE QUALITY AND FITNESS FOR A
       PARTICULAR PURPOSE, AND THOSE ARISING BY STATUTE OR OTHERWISE IN LAW OR
       FROM A COURSE OF DEALING OR USAGE OF TRADE.

   (b) If any Particles fail to comply with the Specifications, Nanophase will,
       at Rodel's option, promptly return or exchange the Particles with
       conforming Particles, or issue a refund or credit of the purchase price.

7. Indemnity

   Each party (the "indemnifying party") agrees to indemnify and hold the other
   party, its parents, subsidiaries, affiliates and permitted assigns, and the
   directors, employees and agents of each of the foregoing entities (all, the
   "indemnified party"), harmless from and against all liabilities, claims,
   damages and expenses (including, without limitation, reasonable attorneys'
   fees) arising out of or in connection with (a) any act or omission of the
   indemnifying party in breach of this Agreement, (b) any injury or damage to
   the extent attributable to the fault or negligence of the indemnifying party
   or (c) violation of any law, rule, regulation or order by the indemnifying
   party related to this Agreement. This Section 7 shall not apply to relieve
   either party's liability to the other for breach of such party's obligations
   to the other party under this Agreement.

8. License

   (a) In the event (i) Nanophase provides written notice to Rodel that
       Nanophase is unwilling to supply Rodel with conforming Particles for
       applications in the Field conforming to the Specifications or (ii)
       Nanophase acknowledges in writing that it is insolvent, or the board of
       directors of Nanophase shall authorize any liquidation or winding up of
       Nanophase, or a petition seeking a receivership or involuntary bankruptcy
       is filed against Nanophase and such petition is not dismissed within
       sixty days after service upon Nanophase, or (iii) there is a change of
       control (as defined in Section 12(c)) of Nanophase to a direct competitor
       of Rodel in the Field, then, in any such

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       case, Rodel shall have an exclusive, royalty bearing, transferable
       license to make, have made, use and sell Ceria particles for applications
       in the Field under any and all intellectual property owned or controlled
       by Nanophase or its principals. Such license shall be exercisable by
       Rodel upon written notice and shall be self-executing. If requested by
       Rodel, Nanophase will sell such equipment in its possession or control as
       Nanophase may have available and Rodel may require for full exercise of
       the license rights granted hereunder. The purchase price of any such
       equipment shall [ * * * ]

   (b) In addition to the foregoing, Nanophase agrees to make available the
       reasonable services of personnel it deems appropriate to provide such
       technical assistance as Rodel may reasonably request in connection with
       the manufacture of the Particles for applications in the Field under the
       licensed intellectual property. Nanophase will provide up [ * * * ]

   (c) The license provided in this Section 8 shall bear a royalty payable by
       Rodel to Nanophase [ * * * ]. Aggregate royalties hereunder shall be paid
       on a quarterly basis and shall be accompanied by a written report of the
       quantity of Particles used by Rodel on a monthly basis during the period
       covered by the report. This Section 8 shall survive expiration or
       termination of this Agreement in the event it is invoked by Rodel for a
       reason specified in Sections 12(b)(ii) or 12(c), but not by reason of
       Section 12(b)(i).

9. Confidentiality
   ---------------

   In connection with this Agreement, the parties may from time to time exchange
   certain information and data which the disclosing party deems to be
   confidential information. As used herein, "confidential information" means
   any information disclosed in tangible form which is labeled as
   "confidential", "proprietary" or the like, or, if disclosed orally or
   visually, is confirmed in writing as "confidential", "proprietary" or the
   like within thirty (30) days of original disclosure. Confidential information
   shall not include any information which (a) is or becomes part of the public
   domain by reason other than the unauthorized disclosure of a party hereto,
   (b) the receiving party can demonstrate was

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    already in its possession prior to receipt, or (c) was received in good
    faith from a third party having the right to disclose the same, or (d) was
    independently developed by the receiving party as evidenced by the receiving
    party's written records, or (e) is required to be disclosed by law,
    regulation, judicial process or administrative order, provided that prompt
    notice and an opportunity to seek a protective order is given to the other
    party before the disclosure of confidential information. Each party agrees
    to keep in confidence and not disclose any confidential information received
    from the other, and further agrees not to use any such information for any
    purpose except as permitted by, or in furtherance of, this Agreement.
    Nothing in this Section 9 is intended to prevent or limit either party's
    disclosing the relationship contemplated by this Agreement in filings with
    the U.S. Securities and Exchange Commission, or other public disclosures,
    relating to publicly traded securities of either party, or the filing of
    this Agreement as a related exhibit, if such party's counsel reasonably
    determines that such disclosure is appropriate, and provided that to the
    extent permitted by law, (i) the party seeking to disclose provides the
    other party with written notice and (ii) Nanophase uses reasonable efforts
    to seek such redactions of confidential information contained herein as
    Rodel may reasonably request.

10. Force Majeure
    -------------

    Neither party shall be liable on account of any failure to fulfill its
    obligations hereunder if such fulfillment is delayed, hindered or prevented
    by forces or events beyond its reasonable control, including but not limited
    to fire, flood, labor difficulties, accident, explosion, riots, war, acts of
    God, terrorist acts, threats of terrorism generally affecting commerce,
    shortage of materials, transportation difficulties, and other unforeseen
    supervening events; provided, that the party claiming any such cause as an
    excuse for nonperformance has provided written notice thereof to the other
    party within two weeks of the event that is the basis of the failure to
    perform, together with the anticipated length of the delay or failure.

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11. Product Development and Improvement
    -----------------------------------

    (a) Throughout the term of this Agreement, Nanophase agrees to use
        commercially reasonable efforts and devote reasonable resources to
        maintain the Particles for applications in the Field as "state of the
        art" or better, based on mutually agreed specifications. In addition,
        pursuant to a protocol to be agreed upon between the parties, Nanophase
        shall provide Rodel with at least seven (7) months' prior written notice
        before implementing any manufacturing process change potentially
        affecting compliance with the Specifications.

    (b) Notwithstanding any other provision of this Agreement, if Rodel
        determines that Nanophase's Particles do not meet the material
        performance criteria of competitive Particles for a particular
        application in the Field, Rodel shall promptly notify Nanophase in
        writing and give it reasonably sufficient quantities of such competitive
        Particles and documentation of the material deficiency in the
        performance criteria of Nanophase's Particles, including all available
        data substantiating the performance shortfall (the "Performance
        Deficiency Notice"). Nanophase shall thereafter have six months to meet
        or exceed the material performance criteria of the competitive particles
        for the identified application. If Nanophase is unable to meet or exceed
        such criteria, then Rodel shall be free to purchase the competitive
        particle for the particular application. In such case, the parties will
        promptly meet to discuss whether and upon what terms to continue this
        Agreement on an exclusive basis as set forth in Sections 2 and 3,
        hereof. If the parties cannot agree on a course of action within 60 days
        of the commencement of such discussions, then this Agreement shall
        continue on a nonexclusive basis in accordance with its terms, and
        Sections 2, 3 and 12(a) shall be deemed accordingly amended, and Section
        8 shall be deleted.

12. Term and Termination

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    (a) This Agreement shall commence on the date first set forth above and
        continue for an initial period of five years; provided, that if as of
        December 31, 2003, [ * * * ], and Rodel has not purchased from Nanophase
        at least [ * * * ] kilograms of Particles, the parties shall meet in
        good faith to discuss the progress to date and possible adjustment of
        any targets, goals or prices previously established with respect to
        development and sale of Particles for applications in the Field (the
        "Adjustment Discussions"). If within thirty (30) days after either party
        has requested Adjustment Discussions, the parties have not agreed on an
        acceptable path forward on an exclusive basis, then either party may, by
        written notice delivered at the end of such thirty (30) day period,
        declare this Agreement to be nonexclusive, whereupon the exclusivity
        provisions of Sections 2 and 3 hereof shall be deemed void and this
        Agreement shall continue on a nonexclusive basis for the remainder of
        the initial term (the "Exclusivity Termination Procedure"). The parties
        agree to hold similar Adjustment Discussions, and adhere to the same
        Exclusivity Termination Procedure if (i) during 2004, Rodel has not
        purchased from Nanophase at least [ * * * ] kilograms of Particles for
        applications in the Field, or (ii) during 2005, Rodel has not purchased
        from Nanophase at least [ * * * ] kilograms of Particles for
        applications in the Field, or (iii) during subsequent years of the
        initial term of this Agreement, Rodel has not purchased from Nanophase
        agreed quantities of Particles for applications in the Field. Subject to
        Rodel's complying with the purchase minimums stated above (or such other
        quantities as the parties may agree pursuant to the Adjustment
        Discussions), this Agreement will renew automatically at the end of the
        initial term for consecutive additional periods of five years each,
        unless terminated by either party upon written notice delivered at least
        three (3) months prior to the end of any renewal period.

    (b) This Agreement may be terminated at any time prior to expiration upon
        written notice by either party in the event of (i) a material breach by
        the other which is not cured within thirty (30) days after delivery of
        written notice

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        by the nonbreaching party, or (ii) the other party is placed in
        bankruptcy or receivership.

    (c) This Agreement may also be terminated at any time prior to expiration
        upon written notice by either party in the event of a change of control
        of the other party to an unaffiliated third party. For purposes hereof,
        a "change in control" means a change in the voting control of the
        affected party or its direct or indirect parent. Except to the extent a
        party's counsel reasonably determines that such disclosure is prohibited
        by applicable statute or regulations of the U.S. Securities and Exchange
        Commission, the party affected by a change of control shall give the
        other at least thirty (30) days' prior notice of the contemplated
        change. If the other party does not elect to terminate this Agreement as
        provided by this subsection, this Agreement shall continue in accordance
        with its terms as provided by Section 13, below.

13. Assignment and Succession
    -------------------------

    This Agreement shall not be assigned by either party to any third party,
    except to an affiliate of such party (defined, for purposes of this
    Agreement as a company or other legal entity which controls, is controlled
    by, or is under common control with, Rodel or Nanophase, respectively),
    without the other party's prior written consent, which consent shall not be
    unreasonably withheld. This Agreement shall be binding upon, and inure to
    the benefit of, the respective successors by merger or otherwise and
    permitted assigns of each party.

14. Miscellaneous Provisions
    ------------------------

    (a) This Agreement embodies all the terms and conditions of the agreement
        between the parties hereto with respect to the matters set forth herein
        and supercedes and cancels all previous agreements and understandings,
        whether oral or written, provided that nothing in this Agreement shall
        be deemed to supersede or cancel that certain Confidentiality And
        Non-Use Agreement between Rodel and Nanophase dated November 27, 2001
        with

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       respect to information disclosed by either party to the other prior to
       the date hereof.

   (b) The terms of this Agreement may not be modified, waived or discharged
       except by an express declaration in writing signed on behalf of the
       parties hereto by their duly authorized officers and referring
       specifically to this Agreement.

   (c) The failure of Nanophase or Rodel at any time to require performance by
       the other of any provision hereof shall in no way affect the full right
       to require such performance at any time thereafter, nor shall the waiver
       by Nanophase or Rodel of a breach of any provision hereof be taken or
       held to be a waiver of any succeeding breach of such provision or as a
       waiver of the provision itself.

   (d) The termination or expiration of this Agreement for any reason shall not
       affect any of the provisions of this Agreement which expressly continue
       in force after its termination or expiration, including the provisions of
       Sections 6, 7, 9 and 14, which the parties expressly agree shall survive
       any expiration or termination hereof.

   (e) Except as expressly provided herein, nothing in this Agreement shall be
       construed to make any party hereto the representative or agent of any
       other party and no party shall so hold itself out, nor shall any party be
       liable for or bound by any act or omission of any other party.

   (f) This Agreement in all respects shall be governed by and interpreted in
       accordance with the laws of the State of Delaware, U.S.A. without giving
       effect to principles of conflict of laws. Rodel and Nanophase hereby
       consent and submit to the jurisdiction of the state or federal courts in
       Delaware and agree that any litigation arising out of or relating to this
       Agreement shall be heard only in a state or federal court located in such
       state.

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   (g) Rodel and Nanophase each agree that during the term of this Agreement,
       and for eighteen months after the termination of the Agreement, neither
       party will directly or indirectly hire or engage any current or former
       employee or contractor of the other party, nor solicit or try to induce
       any current employee or contractor of the other party, to leave that
       party's employ or engagement.

   (h) If any provision of this Agreement is held invalid by a court of
       competent jurisdiction, such invalidity shall not affect the other
       provisions of this Agreement.

   (i) Any notice required or permitted to be given under this Agreement shall
       be made by personal delivery, courier, or by telecopy or first class mail
       to the party to whom delivery is intended at its address set forth above,
       or to such other address as either party shall notify to the other from
       time to time.

IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of
the date first set forth above.

NANOPHASE TECHNOLOGIES                  RODEL, INC.
CORPORATION

By:    /s/  illegible                   By:     /s/  Joe Cross
    ------------------------                ------------------------------------
                                                Joe Cross, CEO

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                                    Exhibit A

                              Agreed Specifications

[ * * * ]

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                                                                   EXHIBIT 10.16

                              EMPLOYMENT AGREEMENT

     AGREEMENT, dated this lst day of January, 2002 (the "Agreement"),
between Heidrick & Struggles International, Inc., a Delaware corporation, and
any successor (the "Employer") and Piers Marmion (the "Employee"). The parties
hereby agree, as follows:

     1. Employment. The Employer shall employ the Employee as Chairman and
Chief Executive Officer and the Employee hereby accepts such position and agrees
to serve the Employer in such capacity during the employment period fixed by
Section 3 hereof (the "Employment Period"). The Employee shall report to the
Board of Directors of the Employer (the "Board"). The Employee's duties and
responsibilities shall be such duties and responsibilities as are consistent
with the position of Chairman and Chief Executive Officer of the Employer. The
Employee shall devote substantially all of his business time and attention to
the performance of his duties and responsibilities hereunder.

        If the Employee determines that it is advisable in connection with the
performance of his duties pursuant to Section 1 of this Agreement, he may elect
to relocate to the United States together with his spouse and children with such
financial assistance as may be deemed appropriate by the Compensation Committee
of the Board for the Chief Executive Officer. The Employee shall not make this
election after the second anniversary of the date of this Agreement without the
consent of the Employer.

     2. Compensation.

        (a) Annual Base Salary. The Employer shall pay the Employee, pursuant to
the Employer's normal and customary payroll procedures, a base salary of
$650,000 per annum (the "Annual Base Salary").

        (b) Annual Bonus. In addition to the Annual Base Salary, during the
Employment Period, the Employee may receive an annual bonus (the "Annual
Bonus"), based on the achievement of performance objectives, which shall be
determined by the Compensation Committee of the Board.

        (c) Incentive Compensation; Benefit Plans. Commencing in January 2002,
the Employee shall participate in the Employer's Annual Bonus Plan, Performance
Share Plan, Management Stock Option Plan, Change in Control Severance Plan,
Deferred Compensation Plan and the Severance Plan. In addition, during the
Employment Period, (i) the Employee shall be entitled to participate in all
other savings and retirement plans, practices, policies and programs of the
Employer which are made available generally to other employees of the

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Employer; provided, however, that the Employee shall be entitled to participate
in bonus, incentive compensation or stock-based plans and programs only to the
extent determined by the Compensation Committee of the Board; and (ii) the
Employee and/or the Employee's family, as the case may be, shall be eligible for
participation in, and shall receive all benefits under, all welfare benefit
plans, practices, policies and programs provided by the Employer (including,
without limitation, vacation, medical, prescription, dental, disability, life
insurance, group life insurance, accidental death and travel accident insurance
plans and programs, together the "Benefit Plans") which are made available
generally to other employees of the Employer.

         The Employer shall contribute to the Employee's Inland Revenue approved
personal pension plan up to the maximum cap allowable under Inland Revenue
Rules. The Employee will be eligible to join the Employer's scheme which
currently provides life insurance coverage of four times basic salary subject to
the Plan's rules together with permanent health insurance including earnings
related sick pay in case of long term sickness and disability and this may
require the Employee to have a medical examination.

         The Employee will be eligible to become a member of the Employer's
scheme providing medical insurance coverage for the Employee and his family
through BUPA. The premiums are currently paid by the Employer and this
represents a taxable benefit to the Employee. The Employee and his family will
also be eligible for medical insurance coverage in the United States through
Heidrick & Struggles, Inc.'s employee plans.

         The terms of the Employer's insurance schemes shall be at the
Employer's discretion and the schemes are subject to modification and/or
termination at the Employer's discretion.

         All payments under the permanent health insurance scheme ("PHI Scheme")
will be subject to such deductions as may be required by law and also a sum
equivalent to any employer's national insurance contributions which are payable
by the Employer in respect of any payment under the PHI Scheme. Where payments
are made under the PHI Scheme, all other benefits provided to or in respect of
Employee by the Employer will cease immediately (if they have not done so
already) except those benefits for which the Employer receives, from the insurer
under the PHI Scheme, reimbursement in full of the total cost to the Employer of
the benefit.

         (d) Sign-on Loan. The Employer shall forgive the outstanding aggregate
principal amount ((pound)1,053,881) of the loans made to the Employee pursuant
to the Employee's employment agreement, dated July 7, 2000, on December 31,
2004, subject to the next sentence.

         The Employee shall pay the outstanding principal amounts of the loans
on the date his employment terminates if (i) the Employee resigns from the
Employer's employ prior to December 31, 2004, except for Good Reason (as defined
below), or (ii) if the Employer terminates his employment for Cause.

                                      -2-

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     3.  Employment Period.

      The Employment Period shall commence on January 1, 2002 (the "Effective
Date"), and shall end on the day preceding the third anniversary of the
Effective Date. Notwithstanding the foregoing, the Employee's employment
hereunder may be terminated during the Employment Period upon the earliest to
occur of the following events:

        (a) Death. The Employee's employment hereunder shall terminate
immediately upon his death.

        (b) Disability. The Employer may terminate the Employee's employment
hereunder for "Disability," which shall mean (i) a physical or mental incapacity
of the Employee which entitles the Employee to benefits under the long-term
disability plan applicable to the Employee and maintained by the Employer; or
(ii) in the event that no such long-term disability plan is maintained by the
Employer, the Employee has been unable to perform his duties hereunder for a
period of 180 days within any twelve-month period as a result of the Employee's
incapacity due to physical or mental illness.

        (c) Cause. The Employer may terminate the Employee's employment
hereunder for Cause. For purposes of this Agreement, the term "Cause" shall mean
(i) fraud, or the embezzlement or misappropriation of funds or property of the
Employer or any of its affiliates by the Employee, the conviction of, or the
entrance of a plea of guilty or nolo contendere by the Employee, to a felony, or
a crime involving moral turpitude; (ii) neglect, misconduct or willful
malfeasance by the Employee which is materially injurious to the Employer or any
of its affiliates; or (iii) willful failure or refusal to perform the Employee's
duties, or a willful, material breach of contract. If, subsequent to the
Employee's termination of services hereunder for other than Cause, it is
discovered that the Employee's services could have been terminated for Cause,
the Employee's services shall, at the election of the Employer, be deemed to
have been terminated for Cause retroactively to the date the events giving rise
to Cause occurred.

        (d) Good Reason. The Employee may terminate his employment hereunder for
Good Reason (and such termination shall be treated as if it were a termination
by the Employer without Cause, and not a voluntary termination by the Employee).
"Good Reason" shall mean the occurrence of any of the following events during
the Employment Period:

         (i)   The assignment to the Employee of any duties
               materially inconsistent with, or the reduction of
               powers, responsibilities or functions associated
               with, the Employee's positions and status with the
               Employer, or any removal of the Employee from, or
               any failure to reelect the Employee to, membership
               on the Board and Chief Executive Officer with the
               Employer, except in connection with the
               termination of the Employee's employment by the
               Employer for Cause or on account

                               -3-

<PAGE>

                  of Disability pursuant to the terms of this Agreement;

            (ii)  A reduction by the Employer of the Annual Base
                  Salary except in connection with the termination
                  of the Employee's employment by the Employer for
                  Cause or on account of Disability pursuant to the
                  terms of this Agreement;

            (iii) The failure by the Employer to pay the Employee
                  any portion of his current compensation, or any
                  portion of his compensation deferred under any
                  plan, agreement or arrangement of or with the
                  Employer within seven (7) days of the date such
                  compensation is due.

            Notwithstanding the foregoing, an isolated and inadvertent action
taken in good faith and which is remedied by the Employer within 30 days after
receipt of written notice thereof given by the Employee shall not constitute
Good Reason.

        (e) Without Cause. The Employer may terminate the Employee's employment
hereunder without Cause.

        (f) Without Good Reason. The Employee may terminate his employment
hereunder without Good Reason, provided that the Employee provides the Employer
with notice of his intent to terminate his employment without Good Reason at
least six (6) months in advance of the Date of Termination; provided, however,
that the Employer may treat such notice as a resignation and accept it prior to
the expiration of six (6) months at the Employer's sole discretion.

     4. Expense Reimbursement. During the Employment Period, the Employer shall
reimburse the Employee for all reasonable business expenses including, without
limitation, the reasonable use of a car and driver for business purposes, upon
the presentation of statements of such expenses in accordance with the
Employer's policies and procedures now in force or as such policies and
procedures may be modified with respect to all employees of the Employer. The
Employer shall pay or reimburse the Employee for business class travel and
accommodation expenses for his spouse and children at times the Employee is
required to be away from home for up to six round trips for his spouse and three
round trips for his children per year.

     5. Termination Payments.

        A.  In the event of termination of the Employee's employment during the
Employment Period:

            (i)  by the Employer without Cause (pursuant to Section 3(e));

                                      -4-

<PAGE>

            (ii)  by the Employee for Good Reason (pursuant to Section 3(d)); or

            (iii) on the day prior to the third anniversary of the Effective
                  Date (and not prior thereto) and no renewal of the Employment
                  Period has taken place as of such date by amendment of this
                  Agreement or pursuant to a new agreement between the Employer
                  and the Employee

then, the Employee shall be entitled to the following payments:

            (a)   Annual Base Salary through the Date of Termination (to the
                  extent not paid) within 10 days following the Date of
                  Termination;

            (b)   Earned but unpaid Annual Bonus in respect of the year ended
                  prior to the Date of Termination;

            (c)   A pro rata portion of his target Annual Bonus based upon the
                  number of months worked in the year in which the Date of
                  Termination occurs;

            (d)   Severance pay pursuant to the Severance Plan;

            (e)   Amounts under the terms of Benefits Plans in which he is a
                  participant under the terms thereof; and

            (f)   Unreimbursed expenses under Section 4 of this Agreement

         B. The Employee shall not be entitled to any further payments or
benefits under this Agreement in respect of any termination of the Employee's
employment during the Employment Period by the Employer without Cause (pursuant
to Section 3(e)) or by the Employee for Good Reason (pursuant to Section 3(d))
or for expiration without renewal (pursuant to this Section 5A(iii)). The
payments and benefits provided in this Section 5A(a), (b), (c) and (d) are
subject to and conditioned upon the Employee's compliance with the restrictive
covenants provided in Section 7 and shall be subject to and conditioned upon the
Employee executing a valid general release and waiver, waiving all claims the
Employee may have against the Employer, its successors, assigns, affiliates,
employees, officers and directors.

         C. If the Employee's employment is terminated during the Employment
Period by the Employer for Cause, by the Employee without Good Reason, or as a
result of the Employee's death or Disability pursuant to Sections 3(c), 3(f),
3(a) and 3(b), respectively, the Employer shall pay the amounts referred to in
Section 5A(a) , (b), (c) and (d) to the Employee (or the Employee's estate or
legal representative in the event of the Employee's death) within thirty (30)
days following the Date of Termination and the Employee shall not be entitled to
any further payments or benefits under this Agreement.

                                      -5-

<PAGE>

         6. Non-Exclusivity of Rights. Any vested benefits and other amounts
that the Employee is otherwise entitled to receive under any Benefit Plan or
other employee benefit plan, policy, practice or program of the Employer shall
be payable in accordance with such Benefit Plan or other employee benefit plan,
policy, practice or program as the case may be, except as explicitly modified by
this Agreement.

         7. Confidentiality of Information; Duty of Non-Disclosure; Non-
Competition; Non-Solicitation.

            (a) Confidential Information; Duty of Non-Disclosure. The Employee's
employment under this Agreement necessarily involves his access to and
understanding of certain trade secrets and confidential information pertaining
to the business of the Employer and its affiliates. During the Employment Period
and thereafter, he will not, directly or indirectly, without the prior written
consent of the Employer, disclose or use for the benefit of any person,
corporation or other entity, or for himself any and all files, trade secrets or
other confidential information concerning the internal affairs of the Employer
or its affiliates, including, but not limited to, information pertaining to its
clients, services, products, earnings, finances, operations, methods or other
activities; provided, however, that the foregoing shall not apply to information
which is of public record or is generally known, disclosed or available to the
general public or the industry generally (other than as a result of the
Employee's breach of this Section 7(a)). Notwithstanding the foregoing, the
Employee may disclose such information as is required by law during any legal
proceeding or to the Employee's personal representatives and professional
advisers and, with respect to such personal representatives and professional
advisers, the Employee shall inform them of his obligations hereunder and take
all reasonable steps to ensure that such professional advisers do not disclose
the existence or substance thereof. Further, the Employee shall not, directly or
indirectly, remove or retain, without the express prior written consent of the
Employer, and upon termination of employment for any reason shall return to the
Employer, any records, computer disks, computer printouts, business plans or any
copies or reproductions thereof, or any information or instruments derived
therefrom, arising out of or relating to the business of the Employer and its
affiliates or obtained as a result of his employment.

            (b) Non-Competition. During the Employment Period and for a period
of six (6) months after the termination of the Employee's employment with the
Employer, the Employee shall not work for or provide services to a principal
competitor of the Employer and its affiliates in a substantially similar
function as the Employee held with the Employer during the two-year period prior
to the Employee's termination of employment with the Employer.

            (c) Non-Solicitation. During the Employment Period and for a period
of one (1) year after the termination of the Employee's employment with the
Employer, the Employee shall not: (i) work on the account of any client of the
Employer and its affiliates with whom such Employee had a direct relationship or
as to which the Employee had a significant supervisory responsibility or
otherwise was significantly involved at any time during the two (2) years prior
to such termination; (ii) hire, solicit for hire, or assist any other person in
soliciting or hiring any

                                      -6-

<PAGE>

employment candidate with whom the Employee has had contact while at the
Employer during the two (2) years prior to such termination; or (iii) directly
or indirectly solicit or hire, or assist any other person in soliciting or
hiring, any employee of the Employer and its affiliates (as of the Employee's
termination of employment) or any person who, as of such date, was in the
process of being recruited by the Employer and its affiliates, or induce any
such employee to terminate his or her employment with the Employer and its
affiliates.

            (d) Remedies. The parties hereto hereby agree that it is impossible
to measure in money the damages which will accrue to the Employer by reason of a
failure by the Employee to perform any of his obligations under this Section 7
and the Employee acknowledges that such obligations are a material condition to
the Employer's decision to enter into this Agreement. Accordingly, if the
Employer institutes any action or proceeding to enforce the provisions hereof,
to the extent permitted by applicable law, the Employee hereby waives the claim
or defense that the Employer has an adequate remedy at law, and the Employee
shall not urge in any such action or proceeding the defense that any such remedy
exists at law. The restrictive covenants in this Section 7 are in addition to
any rights the Employer may have in law or at equity or under any other
agreement. In the event that a court of competent jurisdiction finds the
Employee to be in violation of the provisions of Sections 7(b) or 7(c), the
non-competition and/or non-solicitation period shall be extended by the period
of time during which such court found the Employee to have been in such
violation. The foregoing shall not prejudice the Employer's right to require the
Employee to account for and pay over to the Employer any profit obtained by the
Employee as a result of any transaction constituting a breach of this Section 7.

            (e) Survival of Covenants. This Section 7 shall survive the
termination of the Employment Period.

            8.  Arbitration. Any controversy or claim arising out of or relating
to this Agreement or for the breach thereof, or Employee's employment, including
without limitation any statutory claims (for example, claims for discrimination
including but not limited to discrimination based on race, sex, sexual
orientation, religion, national origin, age, marital status, handicap or
disability; and claims relating to leaves of absence mandated by state or
federal law), breach of any contract or covenant (express or implied), tort
claims, violation of public policy or any other alleged violation of statutory,
contractual or common law rights (and including claims against officers,
directors, employees or agents of the Employer) if not otherwise settled between
the parties, shall be conclusively settled by arbitration to be held in New
York, New York, in accordance with the American Arbitration Association's
Employment Dispute Resolution Rules (the "Rules"). Arbitration shall be the
parties' exclusive remedy for any such controversies, claims or breaches. The
parties agree they shall not seek any award for punitive damages for any claims
they may have under this Agreement. The parties also consent to personal
jurisdiction in New York, New York with respect to such arbitration. The award
resulting from such arbitration shall be final and binding upon both parties.
Judgment upon said award may be entered in any court having jurisdiction.

                                      -7-

<PAGE>

            Employee and the Employer hereby waive the right to pursue any
claims, including but not limited to employment termination - related claims,
through civil litigation outside the arbitration procedures of this provision,
unless otherwise required by law. Employee and the Employer each have the right
to be represented by counsel with respect to arbitration of any dispute pursuant
to this paragraph. The arbitrator shall be selected by agreement between the
parties, but if they do not agree on the selection of an arbitrator within 30
days after the date of the request for arbitration, the arbitrator shall be
selected pursuant to the Rules.

            In the event of any arbitration hereunder, the parties agree each
shall bear its or his own attorneys' fees and costs associated with or arising
from such arbitration or other proceeding.

         9. Miscellaneous.

            (a) Notices. Any notice to be given hereunder shall be given in
writing. Notice shall be deemed to be given when delivered by hand, or three (3)
days after being mailed, postage prepaid, registered with return receipt
requested, addressed as follows.

                      If to the Employer:

                      Heidrick & Struggles, Inc.
                      233 South Wacker Drive
                      Suite 4200
                      Chicago, Illinois 60606-6303
                      Attention:  Chief Legal Officer

                      If to the Employee:

                      Piers Marmion
                      Copse Stile House
                      Spring Lane, Aston Tirrold
                      Didcot, Oxon OX11 9EJ
                      United Kingdom

or to such other address as any party hereto may designate by notice to the
others, and shall be deemed to have been given upon receipt.

            (b) Entire Agreement. This Agreement constitutes the entire
agreement among the parties hereto with respect to the Employee's employment.
The Employee expressly acknowledges that no promises or commitments have been
made to him that are not set forth in this Agreement. This Agreement expressly
supersedes the Agreement, dated July 7, 2000, between the Employer and the
Employee and shall be of no further force and effect.

                                      -8-

<PAGE>

            (c) Modification or Amendment; Waiver. This Agreement may be amended
only by an instrument in writing signed by the parties hereto, and any provision
hereof may be waived only by an instrument in writing signed by the party or
parties against whom or which enforcement of such waiver is sought. The failure
of any party hereto at any time to require the performance by any other party
hereto of any provision hereof shall in no way affect the full right to require
such performance at any time thereafter, nor shall the waiver by any party
hereto of a breach of any provision hereof be taken or held to be a waiver of
any succeeding breach of such provision or a waiver of the provision itself or a
waiver of any other provision of this Agreement.

            (d) Successors. This Agreement is binding on and is for the benefit
of the parties hereto and their respective successors, heirs, executors,
administrators and other legal representatives. Neither this Agreement nor any
right or obligation hereunder may be assigned by the Employer or by the
Employee.

            (e) Severability. Each provision hereof is severable from this
Agreement, and if one or more provisions hereof are declared invalid, the
remaining provisions shall nevertheless remain in full force and effect. If any
provision of this Agreement or portion thereof is so broad, in scope or duration
or otherwise, as to be unenforceable, such provision or portion thereof shall be
interpreted to be only so broad as is enforceable.

            (f) Tax Withholding. The Employer may withhold from any amounts
payable to the Employee hereunder all federal, state, city or other taxes that
the Employer may reasonably determine are required to be withheld pursuant to
any applicable law or regulation.

            (g) Governing Law. This Agreement shall be governed by and construed
in accordance with the laws of the State of New York, without reference to its
principles of conflicts of law.

            (h) Counterparts. This Agreement may be executed in several
counterparts, each of which shall be deemed an original, but all of which shall
constitute one and the same instrument.

            (i) Headings. The headings in this Agreement are inserted for
convenience of reference only and shall not be a part of or control or affect
the meaning of any provision hereof.

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

                            Heidrick & Struggles International, Inc.

                            By: /s/ Stephanie W. Abramson
                               ---------------------------
                            Name: Stephanie W. Abramson
                            Title: Chief Legal Officer

                                   /s/ Piers Marmion
                                   ---------------------------
                                   Piers Marmion

                                      -9-

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