Document:

Retirement Agreement

 Exhibit 10.40 
 

 
  

					
	Date:	  	January 2, 2006	  	
		  		  	PERSONAL & CONFIDENTIAL
	From:	  	Curt Johnson	  	
		  		  	
	To:	  	Greg Lawton	  	

 The following sets forth our mutual agreement regarding your separation from the Company: 
  

	 	1.	Salary Continuation. Your last day of work will be a date mutually agreed upon by you and the Company for transition purposes after a new CEO has been hired. We have agreed
that this Termination Date will be no sooner than January 2, 2006 nor later than April 1, 2006. The Company will pay you two years base salary, flexible spending accounts at your current rate, and PBO at your current target rate in a lump
sum payment within the month following the Termination Date. This payment will have all federal, state and local taxes deducted, as applicable. 

  

	 	2.	Health Benefits. The medical, dental and vision coverage you elected under the JohnsonDiversey Choice Benefits Program will cease on your Termination Date, as defined above.
At your option, you may continue your coverage for a period of 18 months by paying the full cost for you and your covered dependents. Please contact the JDI Service Center at (866) 391-0760 for more detailed information.

  

	 	3.	COBRA Assistance. If you elect COBRA, the Company will subsidize the medical and dental rates for the 18 months coverage period so that for the same coverage you will pay the
same amount of contribution as if you were an active employee. 

  

	 	4.	Retiree Medical Savings Account (RMSA). You will retain your RMSA Employee Account to be used for payment of healthcare expenses. You will not retain any contributions or
earnings from Company Accounts. 

  

	 	5.	Life Insurance. For options on converting core and any additional life insurance coverage, please contact the JDI Service Center. 

	 	6.	Choice Benefits. As with the health benefits, the coverage you elected will cease on your Termination Date. 

  

	 	7.	Class C Stock. Since you have tendered all of your Class C Stock and Stock Options pursuant to the tender offer for those shares, all terms and conditions of the tender offer
apply to the redemption of the stock and options. 

  

	 	8.	Restricted Stock. You will forfeit your 2000 and 2003 special retention Restricted Stock awards. 

  

	 	9.	Supplemental Executive Retirement Plan. You will be eligible for a retirement benefit prorated through your Termination Date from the JohnsonDiversey, Inc. Supplemental
Executive Retirement Plan. This benefit will be calculated pursuant to Section 4.03 of the Plan Document. Details of your calculation and payment options are available from Todd Blazei. 

  

	 	10.	Flexible Spending Account. You will be entitled to use the remaining 2006 Flexible Spending Account of $17,500 for annual country club dues, financial planning, tax
advice/preparation, estate planning, legal fees associated with estate and/or property matters, automobile lease, automobile payments (monthly payments only) and health club memberships. 

  

	 	11.	Cash Profit Sharing. Your remaining cash profit sharing payment for calendar year 2005 will be made in June, 2006. 

  

	 	12.	2006 PBO. You will receive a 2006 PBO payment at the target level based on salary earned through March, 2006. This payment will be made within the month following your
termination date. In consideration of this payment, you agree to be available through December, 2006 at reasonable times upon reasonable notice for consultation with the Company’s CEO. 

  

	 	13.	JohnsonDiversey Cash Balance Plan. Your vested benefit under the JohnsonDiversey Cash Balance Plan is available to you as of your Termination Date. You will receive more
detailed information. 

  

	 	14.	401(k) Plan. You will continue to participate in the 401(k) Plan based on your base salary up to your Termination Date. Your Plan account will be based on the date of
distribution of your account to you. To access your 401(k) account, please call Fidelity at (800) 890-4015. 

  

	 	15.	All Other Benefits. All other benefits not specifically mentioned above cease as of your Termination Date. 

	 	16.	Corporate Credit Card. You agree to file all expense reports on your Mastercard Corporate Credit Card on or before your Termination Date. If any amount remains outstanding,
you agree that the Company will withhold said amount from any monies due you under this Agreement. 

  

	 	17.	Return of Company Property. You agree to return within a time and manner mutually agreed upon between you and JoAnne Brandes any and all Company property, including, but not
limited to, credit cards, files, including all originals and copies of Company documents (whether or not you were the author or recipient) and any Company material you may have in any electronic form, keys, laptop computer, cell phone, etc. in
accordance with Company guidelines. 

  

	 	18.	Release. In consideration of the Company’s provision for the severance payment provided above, you, on your own behalf and for your heirs, assigns and representatives of
any kind, hereby release and forever discharge the Company, its officers, directors, shareholders, employees, insurers, subsidiaries and any affiliated companies from any and all claims, demands, rights, liabilities and causes of action of any kind
or nature, including, without limitation, rights and/or claims under the Age Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964 and/or the Civil Rights Act of 1991, known or unknown, arising or having arisen out of, in
connection with or during your employment with or separation from the Company. However, this release shall not apply to any of your rights under benefit plans which apply generally to former employees (subject to any benefit plan restrictions) of
the Company, any claims based on facts arising after the date of execution of this Agreement, and your rights under this Agreement. 

  

	 	19.	Older Worker Benefit Protection Act. In compliance with the Older Worker Benefit Protection Act, you (“Employee”), agree and acknowledge as follows:

  

	 	a.	Employee has read the terms of this Agreement, understands its contents, and agrees to the terms and conditions set forth therein of your own free will. 

  

	 	b.	Employee has been advised orally and, by this document, in writing of your right to consult with legal counsel prior to executing this Agreement. 

  

	 	c.	Employee does not rely on any statement or representation of the Company in entering into this Agreement. 

  

	 	d.	Employee understands that this Agreement includes a general release and that Employee can make no claims against the Company except as provided in the general release.

  

	 	e.	Employee acknowledges that Employee has been afforded a reasonable period of time within which to consider this Agreement. Accordingly, Employee hereby waives the applicable period
provided under the Act (45 days) to consider this Agreement. 

	 	f.	Employee acknowledges and understands that Employee may rescind the release and waivers contained herein within seven (7) calendar days of the date on which Employee executes
this document. Should Employee wish to exercise the right to rescind the release and waivers, the rescission must be in writing and must be delivered by hand or mail within seven (7) calendar days of the date set forth herein. If Employee
wishes to deliver the rescission by mail, the rescission must be postmarked within the seven (7) calendar days set forth above; must be sent by certified mail, return receipt requested; and must be properly addressed as follows:

  

	
	 BY MAIL/HAND DELIVERY

	
	 JoAnne Brandes, General Counsel

	 JohnsonDiversey, Inc.

	 8310 - 16th Street

	 P. O. Box 902

	 Sturtevant, WI 53177-0902

 If Employee wishes to deliver the rescission by hand, the rescission shall be delivered to the
person and address stated above. 
  

	 	g.	The consideration referred to in paragraph 1, above, will not be paid until the aforesaid rescission period has expired without Employee exercising Employee’s right of
rescission and all terms of this Agreement are fulfilled. 

  

	 	20.	Confidentiality. You agree to keep strictly confidential, and will not disclose to any third party in any manner, excluding your immediate family, attorney or accountant,
directly or indirectly, the terms of this Agreement, any confidential business or technical information of the Company, as well as any information regarding any business, and/or personal affairs of any present or former directors, officers,
stockholders and/or employees of the Company or any affiliate or subsidiary companies of the Company to which you have been privy during the time that you were an employee of this Company in accordance with the requirements of this Agreement or as
may be required by the Agreement to Respect Proprietary Rights and Non-Compete (the “Non-Compete”) you signed. 

  

	 	21.	Non-Compete. You acknowledge and agree that the Non-Compete remains in full force and effect notwithstanding the termination of your employment with the Company. The terms of
the Non-Compete are hereby incorporated by reference. You reaffirm the terms of the Non-Compete and agree that (a) by executing this Agreement you are agreeing to all of the terms of the Non-Compete as if you signed that document anew, and
(b) the payments you are receiving and/or are to 

 receive under this Agreement is consideration for the
obligations you have under the Non-Compete. 

	 	22.	Breach of Agreement. The Company shall have the right to terminate any and all payments to be made to you under this Agreement in the event of your breach of any of your
obligations under this Agreement or under the Non-Compete, or in the event you challenge the enforceability of any portion of this Agreement or of the Non-Compete. 

  

	 	23.	Miscellaneous. 

  

	 	a.	You agree to cooperate with the Company (including meeting with personnel of the Company and/or their lawyers) in any claim or matter which may arise (including in the future) about
which you may have knowledge acquired during your period of employment. 

  

	 	b.	You agree and understand that this Agreement sets forth and contains all of the obligations the Company has to you and that you are not entitled to any other compensation of any
kind or description. 

  

	 	c.	We advise you to consult an attorney prior to signing this Agreement, especially in relation to the release stated above. 

 If you are in agreement with all of the terms stated in this letter, please sign both copies where provided below and return one copy to me. 
  

	
	 /s/ Curt Johnson

	Curt Johnson

 Accepted and agreed to this 3 day of February, 2006. 
  

	
	 /s/ Greg Lawton

	Greg LawtonEmployment Agreement

 Exhibit 10.41 
 EMPLOYMENT AGREEMENT 
 THIS AGREEMENT, made and entered into this March day of 17, 2006, by
and between JohnsonDiversey, Inc., a Delaware corporation (“JDI”), and Edward F. Lonergan (“Employee”). 
 In
consideration of the mutual promises and agreements set forth below, and intending to be legally bound, the parties agree as follows: 
 ARTICLE I 
 Employment 
 1.1 Position and Responsibilities. During the period of this Agreement and subject to the terms and conditions hereof, JDI shall employ Employee, and Employee shall serve, as President and Chief Executive
Officer of JDI and Employee shall have such management authority and responsibilities as are customary for a President and Chief Executive Officer and such other responsibilities commensurate with such position as may be assigned to Employee from
time to time by the Chairman. 
 1.2 Place of Employment. Employee’s initial principal place of employment shall be 8310
16th Street, Sturtevant, Wisconsin. 
 1.3 Duties. During the Period of Employment, Employee shall devote substantially all of Employee’s business time, attention and skill to the business and affairs of the Company and its subsidiaries,
except, so long as such activities do not unreasonably interfere with the business of the Company or diminish the Employee’s obligations under the Agreement, that Employee may (i) participate in the affairs of any governmental, educational
or other charitable institution, or engage in professional speaking and writing activities, or (ii) serve as a member of the board of directors of other corporations, and in either case, the Employee shall be entitled to retain all fees,
royalties and other compensation derived from such activities in addition to the compensation and other benefits payable to him under this Agreement; and provided further, that the Employee may invest Employee’s personal or family funds in any
form or manner he may choose that will not require any services on Employee’s part in the operation of or the affairs of the entities in which such investments are made, which services are inconsistent with this Paragraph. The Employee will
perform faithfully his duties and responsibilities hereunder. 

 ARTICLE II 
 Term and Termination 
 2.1 Term. Employee’s employment under this Agreement shall
commence on February 1 2006, shall be at will, and may be terminated by formal or informal action of the Chairman or the Employee at any time for any reason not prohibited by law. 
 2.2 Resignation or Termination for Cause. If Employee should resign Employee’s employment without Good Reason (defined below), or if the
Chairman should terminate Employee’s employment for Cause (defined below), Employee shall not be entitled to any compensation or remuneration other than all earned and unpaid salary, unused vacation, unreimbursed business expenses, and such
amounts and benefits as Employee is eligible to receive under JDI’s then prevailing policies and benefit plans and as prescribed by law. “Good Reason” means JDI’s material breach of any provision of this Agreement.
“Cause” means termination for any of the following reasons: 
 (a) Material breach of this Agreement. 
 (b) Material failure to perform within the provisions of “This We Believe.” 
 (c) Gross misconduct, or willful violation of the law in the performance of duties under this Agreement. 
 (d) Willful failure or refusal to follow reasonable, explicit, and lawful instructions or directions from the Chairman concerning the
operation of JDI’s business. 
 (e) Conviction of a felony. 
 (f) Theft or misappropriation of funds or property of JDI, or commission of any material act of dishonesty involving JDI, its employees,
or business. 
 (g) Breach of the fiduciary duty owed to JDI as an officer of JDI. 
 (h) Material breach of any duty or obligation under the agreements attached as Addenda A and B to this Agreement (following notice and a
reasonable opportunity to cure). 
 2.3 Retirement, Death, Disability or Termination without Cause. 
 (a) Employee’s employment shall terminate automatically and immediately upon Employee’s Retirement or Death. 
 (b) Upon the Chairman’s written determination that Employee is unable, due to a disability, to continue carrying out the duties and
responsibilities of Employee’s position, Employee’s officer status will be terminated, and Employee’s employment will continue pursuant to the JDI’s 
  

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 applicable policies and benefits related to disabled employees. For purposes of this Agreement,
“disability” means the inability of the Employee, due to a physical or mental impairment, for 120 consecutive days to perform the essential duties and functions contemplated by this Agreement with or without reasonable accommodation. A
determination of disability shall be made by an independent physician selected by the Chairman who is satisfactory to the Employee, and Employee shall cooperate with the efforts to make such determination. Notice of determination of disability shall
be provided by the Chairman in writing to Employee stating the facts and reasons for such determination. Any such determination shall be conclusive and binding on the parties. Nothing in this section, however, shall be deemed to alter JDI’s
duty to reasonably accommodate, if possible, any disability of Employee. Any determination of disability under this Section is not intended to affect any benefits to which employee may be entitled under any long term disability insurance policy
provided by JDI or Employee with respect to Employee, which benefits shall be governed solely by the terms of any such insurance policy. 
 (c) If Employee’s employment is terminated as a result of Death, JDI shall pay to Employee’s estate, in addition to all earned and unpaid salary, unused vacation, unreimbursed business expenses, and any
other compensation and benefits provided by JDI policies and benefit plans then in effect, (1) a prorated performance bonus for the fiscal year in which the termination occurs, as described in Section 3.2, which shall be payable at the
time and in the manner in which JDI normally pays such bonuses; and (2) reimbursement of expenses to which Employee is entitled under Section 3.6. 
 (d) If Employee’s employment is terminated as a result of Termination without Cause or Resignation with Good Reason, and so long as
Employee complies with all provisions of the Agreement to Respect Proprietary Rights and Noncompete and Code of Ethics, attached as Addenda A and B, respectively, JDI shall, in addition to paying Employee all earned and unpaid salary, unused
vacation, unreimbursed business expenses, and any other compensation and benefits due him under JDI policies and benefit plans then in effect, (1) continue to pay Employee his base salary for and during the two-year period beginning on the day
immediately following the date of such termination (“Salary Continuation Period”); (2) pay Employee a prorated performance bonus for the period worked during the fiscal year in which the termination occurs, as described in
Section 3.2; and (3) pay Employee a performance bonus at the target level (currently 100% of Base Salary) for each year during the Salary Continuation Period. 
 ARTICLE III 
 Compensation 
 3.1 Base Salary. Pursuant to Company policy, Employee’s compensation will be administered as a Tier 1. The Company shall pay Employee an
initial base salary 
  

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 of $700,000 (“Base Salary”). Such Base Salary shall be payable according to the customary payroll practices of
the Company. Beginning in April 2007, Employee shall be considered for an increase in Base Salary effective on the payroll date nearest April 1 of each contract year. 
 3.2 Performance Bonus. Employee shall be eligible to receive, at the discretion of the Board of Directors Compensation Committee, a Performance
Bonus in accordance with the terms of the Performance Bonus Opportunity Plan. The Employee’s target bonus is 100% of the base salary as of the last day of the fiscal year. Depending on achievement of objectives, this amount can range between 0%
and 200% of the target. The Performance Bonuses are paid after approval by the Board of Directors Compensation Committee of the Company. 
 3.3 Profit Hunt Special Incentive. Employee will be eligible to receive a Profit Hunt special incentive for fiscal years 2006 and 2007. The bonus target will be $300,000 per year and will be paid in accordance with the metrics set by
the Board of Directors. 
 3.4 Long Term Incentive Plan. Employee will participate in the new JohnsonDiversey Long Term Incentive Plan
(LTIP), and will have a target grant value of $2,000,000 per year. 
 3.5 Deferred Compensation Plan. Employee shall be eligible to
participate in the Company’s Deferred Compensation Plan. 
 3.6 Flexible Spending Account. Employee shall be entitled to an
annual Flexible Spending Account of $17,500 to be used for annual country club dues, financial planning, tax advice/preparation, estate planning, legal fees associated with estate and/or property matters, automobile lease, automobile payments
(monthly payments only), and health club membership. 
 3.7 Benefits. Employee shall be entitled to participate in all benefit
programs which JDI from time to time may make available to other executive level employees in the Employee’s assigned country for benefit purposes. Employee shall have no vested rights in any such programs except as expressly provided under the
terms thereof. JDI expressly reserves the right in its sole discretion to terminate or modify any such programs at any time and from time to time. 
 3.8 Signing Bonus. JDI shall pay Employee a signing bonus in the amount of $300,000, less applicable taxes, to be paid on JDI’s first regularly scheduled payday occurring at least 7 calendar days after the date of this
Agreement. 
 3.9 Expenses. JDI shall reimburse Employee for all reasonable and necessary business expenses he incurs in the
course of performing his duties under this Agreement, provided he submits proper substantiation and an itemized account of such expenses in accordance with JDI’s expense reimbursement policies and procedures as may be in effect from time to
time. 
  

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 3.10. Relocation. JDI shall provide relocation assistance to Employee, including new home purchase
assistance; transportation of household and storage goods from Boston, Massachusetts, and Cincinnati, Ohio, respectively; ninety days of household storage; transit insurance; sixty days of temporary living (accommodations, meals and transportation
for Employee and his family); one-time relocation allowance of $12,000 grossed up; tax counseling up to $500; Home Connections discounted products and services; Concierge Service; and tax assistance. Employee’s former employer is providing
shipment of household goods from Switzerland to Boston, including insurance, and air transportation from Switzerland to the United States for Employee and his family. 
 3.11 Vacation. During the Term, Employee shall be entitled to five (5) weeks of paid vacation each year and to paid holidays given by JDI to its employees generally, including the time between the
Christmas and New Years holidays. Vacation days accrued in any calendar year and not used on or before December 31st of such year may be carried into the subsequent year. 
 3.12 Company Resorts. Employee and his immediate family may,
at JDI’s cost, make personal use of JDI’s condominium in Aspen, Colorado, the villa in St. Jean Cap Ferrat, France, and the Lighthouse Resort in Fence Lake, Wisconsin, in accordance with the guidelines for use of each resort. 

ARTICLE IV 
 Miscellaneous

 4.1 Entire Agreement. This Agreement and the letter from S. Curtis Johnson to Edward F. Lonergan dated December 21, 2005
(“Offer Letter”), which is incorporated herein by reference, together set forth the entire agreement between the parties relating to the subject matter hereof and supersede all prior agreements between the parties relating to the subject
matter hereof. 
 4.2 Waiver of Breach. The waiver by a party of the breach of any provision of this Agreement shall not be deemed a
waiver by said party of any other or subsequent breach. 
 4.3 Assignment. This Agreement shall not be assignable by JDI without the
written consent of Employee; provided, however, that if JDI shall merge or consolidate with or into, transfer substantially all of its assets, including goodwill, to another corporation or other form of business organization, this Agreement shall be
binding upon and shall inure to the benefit of the successor corporation in such merger, consolidation or transfer. Employee may not assign, pledge or encumber any interest in this Agreement or any part thereof without the written consent of JDI.

  

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 4.4 Disputes. Any dispute or controversy arising from or relating to this Agreement shall be
submitted to and decided by binding arbitration in the State of Wisconsin, USA, before the American Arbitration Association in accordance with its National Rules for the Resolution of Employment Disputes. The arbitrator shall have full authority to
award damages and other remedies as may be permitted under applicable law and, as the law permits, award costs and attorneys’ fees. Judgment upon such award may be entered in any state or federal court of competent jurisdiction. At the request
of either JDI or Employee, arbitration proceedings will be conducted in the utmost secrecy; in such case, all documents, testimony and records shall be received, heard and maintained by the arbitrator(s) in secrecy, available for inspection only by
JDI or by the Employee and by their respective attorneys and experts who shall agree, in advance and in writing, to receive all such information in confidence and to maintain such information in secrecy until such information shall be generally
known. JDI shall pay 100% of all costs related to any such arbitration, including without limitation AAA administrative fees, arbitrator compensation and expenses, and costs of witnesses called by the arbitrator (“Arbitration Costs”),
other than the Employee’s legal expenses. Upon the conclusion of the arbitration hearing and based upon evidence presented during that hearing, the arbitrator have the right to require that, in addition to the foregoing, JDI shall reimburse the
Employee for his legal fees or that the Employee reimburse JDI for up to 50% of the Arbitration Costs. In no event shall the Employee be required to reimburse JDI prohibitive costs that would effectively deny Employee a forum to vindicate his
rights. Except to the extent set forth above and unless otherwise ordered by the Arbitrator under applicable law, each party shall bear his or its own expenses, such as attorneys’ fees, costs, and expert witness fees. 
 4.5 Limitation on Claims. Any claim or controversy otherwise arbitrable hereunder shall be deemed waived, and no such claim or controversy shall
be made or raised, unless a request for arbitration thereof has been given to the other party in writing as provided in Paragraph 4.6 below not later than one year after the termination of this Agreement. 
 4.6 Notices. All notices, requests, demands or other communications required or permitted under this Agreement shall be in writing and shall be
deemed to have been duly given to any party when delivered personally (by courier service or otherwise), when delivered by telecopy or facsimile, by overnight courier, or seven days after being mailed by first-class mail, postage prepaid and return
receipt requested in each case to the applicable addresses set forth below: 
  

			
	 If to Employee:
	  	Edward F. Lonergan
		  	c/o JohnsonDiversey, Inc.
		  	8310 16th Street
		  	P. O. Box 902
		  	Sturtevant, WI 53177-0902

  

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	 If to JDI:
	  	JoAnne Brandes
		  	Executive Vice President, Chief Administrative Officer,
		  	General Counsel & Secretary
		  	JohnsonDiversey, Inc.
		  	8310 16th Street – MS 510
		  	P. O. Box 902
		  	Sturtevant, WI 53177-0902

 or to such other address as such party shall have designated by written notice so
given to each other party. 
 4.7 Amendment. This Agreement may be modified only in writing, signed by a duly authorized
representative of JDI and Employee. Headings included in this Agreement are for convenience only and are not intended to limit or expand the rights of the parties hereto. 
 4.8 Severability. If any provision of this Agreement is determined to be invalid or unenforceable, then such invalidity or unenforceability shall have no effect on the other provisions hereof, which shall
remain valid, binding and enforceable and in full force and effect, and such invalid or unenforceable provision, shall be construed in a manner so as to give the maximum valid and enforceable effect to the intent of the parties expressed therein.

 4.9 Incorporation of Terms. The introductory language and recitals set forth above, and Addenda A and B attached hereto, are
incorporated by reference as a part of this Agreement. 
 4.10 Governing Law. This Agreement shall be governed by and construed in
accordance with the internal laws of the State of Wisconsin, USA (regardless of such State’s conflicts of law principles). 
 IN WITNESS
WHEREOF, the parties hereto have executed this Agreement as of the day, month and year first above written. 
  

			
	 JOHNSONDIVERSEY, INC.

		
	 By
	 	 /s/ JoAnne Brandes

		 	JoAnne Brandes, Executive Vice
		 	President, Chief Administrative Officer,
		 	General Counsel and Secretary
	
	 /s/ Edward F. Lonergan

	 Edward F. Lonergan

  

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