Document:

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                                                                   EXHIBIT 10(c)

                              SEPARATION AGREEMENT

     This SEPARATION AGREEMENT (this "Agreement") is entered into as of the 16th
day of July, 2001 between William S. Kane (the "Employee"), and International
Flavors & Fragrances Inc., a New York corporation (the "Company").

                               W I T N E S S E T H

     WHEREAS, the Employee is employed by the Company as Vice President, Human
Resources; and

     WHEREAS, the Company and the Employee have agreed that the Employee's
employment with the Company shall terminate on December 31, 2001 (the
"Separation Date"); and

     WHEREAS, the Employee and the Company now desire to enter into an agreement
concerning the duties and responsibilities of the Employee from the date hereof
until the Separation Date and in respect of the Employee's separation from the
Company as hereinafter set forth,

     NOW, THEREFORE, in consideration of the mutual promises contained in this
Agreement, the Employee and the Company agree as follows:

     1. Continuation of Employment; Duties. Until the Separation Date, the
        ----------------------------------
Employee shall remain a full-time employee of the Company. Until August 31,
2001, the Employee shall continue as Vice President, Human Resources, of the
Company. Effective August 31, 2001, the Employee shall resign as Vice President,
Human Resources, and as a director and/or officer of all entities controlled
directly or indirectly by the Company (together with the Company, the "Company
Group") of which he has served as a director and/or officer prior to the date of
this Agreement Effective as of the Separation Date, the Employee shall
voluntarily resign as a director and/or officer of each Company Group entity of
which he has served as a director and/or officer and as a member of each
Administrative Committee of a Company benefit plan of which he has served as a
member, in either event prior to the date of this Agreement. Thereafter, until
the Separation Date the Employee shall perform such duties as Richard A.
Goldstein, Chairman and Chief Executive Officer, may reasonably assign to him.
The Employee understands that, from and

<PAGE>

after August 31, 2001, the Company will no longer maintain an office for the
Employee at the Company's headquarters in New York, New York or any other
facility.

     2. Termination of Employment Relationship; Resignation from Officerships
        ---------------------------------------------------------------------
and Directorships. On the Separation Date the Employee's employment with all
-----------------
members of the Company Group shall terminate.

     3. Consideration to the Employee. The Company shall make the following
        -----------------------------
payments and provide the following additional benefits and consideration to the
Employee, subject to Section 6 hereof:

     (a) Salary and Benefits through the Separation Date. Through and including
         -----------------------------------------------
the Separation Date, the Employee shall continue to be paid his current base
salary of $19,583.33 per month ($235,000 per year), and shall continue to be
entitled to all of the benefits that he currently enjoys.

     (b) Incentive Compensation. The Employee shall be entitled to the same
         ----------------------
annual incentive compensation award in respect of 2001 under the Company's
Annual Incentive Plan ("AIP"), promulgated under the Company's Stock Award and
Incentive Plan ("SAIP"), that is paid to others with the same target award as
the Employee. Any earned 2001 incentive compensation award shall be paid to the
Employee in early 2002 at the same time as incentive compensation awards under
the AIP are paid to executive employees of the Company generally. The Employee
shall also be entitled to receive one-third of any award that is paid to others
with the same target award as the Employee in respect of Cycle I under the
Company's Long-Term Incentive Plan ("LTIP") under the SAIP. Any earned Cycle I
award under the LTIP shall be paid to the Employee in early 2004 at the same
time as awards under the LTIP are paid to executive employees of the Company
generally. The Employee shall not be entitled to any other incentive
compensation, whether under the AIP, LTIP or any other plans or programs.

     (c) Severance Payments. Commencing January 1, 2002 and continuing through
         ------------------
and including August 31, 2003 (the "Severance Period"), the Employee shall
receive monthly severance payments of $31,333.33, which is equal to the sum of
(i) his current monthly base salary ($19,583.33) and $11,750, which is an amount
equal to one-twelfth of his target 2001 annual incentive award ($9,791.66)
multiplied by 24, or $235,000, divided by 20, ("Severance Payments"). Severance
Payments shall be made semi-monthly

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at the same times as compensation is paid to exempt United States employees of
the Company.

     (d) Unused Vacation. Within thirty (30) days after the Separation Date, the
         ---------------
Company shall pay the Employee for 12 days of vacation in respect of 2001. The
Employee shall not be entitled to vacation pay in respect of any other year.

     (e) Stock Options. The exercisability, lapsing and forfeiture of the
         -------------
Employee's stock options shall be governed by the provisions of various Stock
Option Agreements between the Employee and the Company.

     (f) Pension and Other Benefits. The Employee has not vested in the
         --------------------------
Company's Pension Plan and Supplemental Pension Plan, and as a result shall not
be entitled to receive any pension from the Company. The Employee shall be
vested in the benefits that he accrues through December 31, 2001 under the
Company's Retirement Income Fund Plan (including the Company's Supplemental
Retirement Income Plan) and the Company's Deferred Compensation Plan. If the
Employee is participating for 2001 in the Company's Global Employee Stock
Purchase Plan ("GESPP"), he shall also be eligible to have Company common stock
purchased on his behalf for 2001 under the GESPP. For the shorter of the
Severance Period or until the Employee becomes eligible to participate in
medical, dental and/or life insurance plans upon his commencement of new
"Employment," as hereinafter defined (the "Supplemental Benefits Period"), the
Employee and his eligible dependents shall either (a) continue to participate in
the Company's medical and dental plans and to be covered under the Company's
group life insurance plan (including the Executive Death Benefit Plan), under
the same terms and conditions, and at the same contribution levels, as are
applicable to active employees of the Company, or (b) if such continued
participation is not possible under the terms and conditions of one or more of
such plans, the Company shall arrange to have issued for the benefit of the
Employee and his dependents individual policies of insurance providing benefits
substantially similar (on an after-tax basis) to the plan(s) as to which the
Employee's continued participation is not possible. In such event the Employee
shall make contributions to the cost of such policy or policies of insurance as
if he were continuing to participate in the applicable Company plans. For the
purpose of this Agreement, "Employment" shall mean the Employee's substantially
full-time participation for monetary compensation as an officer, employee,
partner, principal or individual proprietor in any entity or business. At the
expiration of the Supplemental Benefits Period

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the Employee shall be able to continue coverage under the Company's medical plan
in accordance with the Consolidated Omnibus Budget Reconciliation Act of 1985
("COBRA") for up to eighteen (18) months after the expiration of the
Supplemental Benefits Period by paying the applicable monthly premiums.

     (g) Company Car. On the Separation Date, the Company shall arrange at its
         -----------
cost to have title to the Company-owned 1999 Grand Cherokee Limited automobile
currently provided to the Employee by the Company (the "Company Car")
transferred to him. For all periods commencing with the month of January 2002
the Employee shall be solely responsible for all costs associated with the
ownership, operation and/or maintenance of the Company Car or any other
automobile that the Employee may subsequently lease or own. The Employee shall
not be entitled to a new Company Car between the date of this Agreement and the
Separation Date, irrespective of whether, under Company policy, he would have
otherwise been so entitled.

     (h) Financial Planning/Advice. Until the Separation Date, the Employee may
         -------------------------
continue to use the financial planning and advice services of Tittman & Rusch
under the same terms and conditions as he has been using such services during
2001. Should the Employee wish to continue such services or the services of any
other financial advisor/consultant after the Separation Date, all costs and
expenses in respect of such services shall be the sole responsibility of the
Employee.

     (i) Outplacement. The Company shall arrange for the Employee to have the
         ------------
outplacement services of a firm selected by the Company and reasonably
acceptable to the Employee, and shall pay all fees associated therewith. The
Company agrees to cause such outplacement services to be continued until the
earlier of the expiration of the Severance Period or the date on which the
Employee accepts new Employment.

     4. Noncompetition; Nonsolicitation. During the Severance Period, the
        -------------------------------
Employee agrees that he shall not engage directly or indirectly in any business
which is competitive to that of the Company Group, except that Employee shall
not be prevented from owning a beneficial interest in less than five percent
(5%) of the outstanding capital stock of any publicly owned competitive company.
Additionally, during the Severance Period, the Employee agrees that he shall not
solicit, induce, or attempt to influence any individual who is an employee of
the Company Group to terminate his or her employment relationship with the
Company Group, or to become employed by him or his

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affiliates or any person by which he is employed, or interfere in any other way
with the employment, or other relationship, of the Company Group and any
employee thereof. The Employee also agrees that during the Severance Period he
shall not, in any way that interferes with the business of the Company or with
the relationship between the Company and any such entity, solicit or canvass the
trade, business or patronage of, or sell to or buy from, any persons or entities
that are either (i) customers of or suppliers to the Company Group, or (ii)
actual or prospective customers of or suppliers to the Company Group with
respect to which a sales effort, presentation or proposal was made.

     5. Entire Consideration. The Employee understands and agrees that the
        --------------------
payments and benefits provided for in this Agreement (a) are the only ones to
which he is entitled relating to his employment and/or in connection with the
termination of his employment with the Company, and (b) are in excess of those
to which he otherwise would be entitled, and that they are being provided to him
in consideration for his signing of this Agreement and the "Release," as defined
in Section 6, which consideration he agrees is adequate and satisfactory to him.

     6. Release. As a condition to the Employee's entitlement to the
        -------
compensation, payments and benefits provided for in Sections 1 and 3 hereof, the
Employee shall have executed and delivered to the Company a release in the form
attached hereto as Schedule I (the "Release"), and such Release shall have
become irrevocable. If the Employee exercises his right to revoke the Release in
accordance with the terms thereof, then this Agreement shall become null and
void ab initio.

     7. Non-Disparagement. Each of the Employee and the Company agrees that at
        -----------------
no time will either the Employee or any officer, director, employee or other
representative of the Company in any way denigrate, demean or otherwise say or
do anything, whether in oral discussions or in writing, that would cause any
third party, including but not limited to suppliers, customers and competitors
of the Company, to lower its perception about the integrity, public or private
image, professional competence, or quality of products or service, of the other
or, in the case of the Company, of any officer, director, employee or other
representative of the Company. If the Company is asked by a prospective employer
for a reference with respect to a new position for which the Employee is being
considered, without the Employee's prior written consent the Company will do no
more than confirm the Employee's dates of employment and salary history.

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     8. Cooperation and Assistance. The Employee acknowledges that he may have
        --------------------------
historical information or knowledge that may be useful to the Company in
connection with current or future legal, regulatory or administrative
proceedings. The Employee will cooperate with the Company, both during the
Severance Period and thereafter, in the defense or prosecution of any such
claims that relate to events or occurrences that transpired during the
Employee's employment with the Company. The Employee's cooperation in connection
with such claims or actions shall include being reasonably available, subject to
his other business and personal commitments, to meet with counsel to prepare for
discovery or trial and to testify truthfully as a witness when reasonably
requested by the Company at reasonable times and with reasonable advance notice
to the Employee. The Company shall reimburse the Employee for any out-of-pocket
expenses, including the reasonable fees of the Employee's personal attorney,
which he incurs in connection with such cooperation.

     9. Return of Property. Except as otherwise provided in this Section 9, the
        ------------------
Employee expressly agrees that, on the Separation Date, he will return to the
Company all property of the Company Group including, but not limited to, any and
all files, computers, computer equipment and software and diskettes, documents,
papers, records, accords, notes, agenda, memoranda, plans, calendars and other
books and records of any kind and nature whatsoever containing information
concerning the Company Group or their customers or operations. The Employee
affirms that he will not retain copies of any such property or other materials.
Notwithstanding the foregoing, the Employee shall not be required to return his
company-provided laptop computer, or his rolodexes, personal diaries and
correspondence; however, the Company may require the Employee to provide such
laptop computer to the Company so that any proprietary Company information
and/or programs may be purged from such laptop computer.

     10. Non-Disclosure. Under the Employee's Security Agreement with the
         --------------
Company, a copy of which is attached to this Agreement as Schedule II, and under
applicable trade secret law, the Employee is obliged to keep in confidence all
trade secrets and proprietary and confidential information of the Company Group,
whether patentable or not which he learned or of which he became aware or
informed during his employment by the Company (except to the extent disclosure
is or may be required by a statute, by a court of law, by any governmental
agency having supervisory authority over the business of the Company or by any
administrative or legislative body (including a committee

                                       6

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thereof) with apparent jurisdiction to order him to divulge, disclose or make
accessible such information, and not to directly or indirectly publish,
disclose, market or use, or authorize, advise, hire, counsel or otherwise
procure any other person or entity, directly or indirectly, to publish,
disclose, market or use, any such information. Both under such Security
Agreement and under applicable law, such obligations continue not only while the
Employee is employed by the Company, but after cessation of that employment. In
amplification and not in limitation of the foregoing, the Employee acknowledges
that during his employment with the Company, he has or may have acquired
proprietary and confidential knowledge and information of the Company Group,
including, but not limited to, fragrance and flavor formulae, secret processes
and products, qualities and grades of flavor and fragrance ingredients and raw
materials, including but not limited to aroma chemicals, perfumery and flavor
and fragrance compounding "know-how" and other technical data belonging to or
relating to the Company Group, and the identity of customers and suppliers of
the Company Group and the quantities of products ordered by or from and the
prices paid by or to those customers and suppliers. In addition, the Employee
has also acquired similar confidential knowledge and information belonging to
customers of the Company Group and provided to the Company Group in confidence
under written and oral secrecy agreements. The Employee agrees to abide by the
terms and conditions of the Security Agreement and of this Section 10 both
during the Severance Period and thereafter.

     11. Tax and Withholding. Any Federal, State and/or local income, personal
         -------------------
property, franchise, excise or other taxes owed by the Employee as a result of
the payments or benefits provided under the terms of this Agreement shall be the
sole responsibility and obligation of the Employee. The parties hereto agree and
acknowledge that Company shall have the right to withhold from any payments made
or benefits provided to the Employee any and all amounts that are necessary to
enable the Company to satisfy any withholding or other tax obligation that
arises in connection with such payments or benefits, and the Company shall
report any such amounts that it determines are compensation income on a Form
W-2, including but not limited to the value of the Company Car.

     12. No Oral Modification. This Agreement may not be changed orally and no
         --------------------
modification, amendment or waiver of any provision contained in this Agreement,
or any future representation, promise or condition in connection with the

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subject matter of this Agreement shall be binding upon any party hereto unless
made in writing and signed by such party.

     13. Resolution of Disputes. Any disputes under or in connection with this
         ----------------------
Agreement shall, at the election of either party, be resolved by arbitration, to
be held in New York, New York in accordance with the rules and procedures of the
American Arbitration Association then in effect. Judgment upon the award
rendered by the arbitrator(s) may be entered in any court having jurisdiction.
Each party shall bear its own costs, including but not limited to attorneys'
fees, of the arbitration or of any litigation arising out of this Agreement.
Pending the resolution of any arbitration or litigation, the Company shall
continue payment of all amounts due the Employee under this Agreement and all
benefits to which the Employee is entitled at the time the dispute arises.

     14. Severability. In the event that any provision of this Agreement or the
         ------------
application thereof should be held to be void, voidable, unlawful or, for any
reason, unenforceable, the remaining portion and application shall remain in
full force and effect, and to that end the provisions of this Agreement are
declared to be severable.

     15. Governing Law. This Agreement is made and entered into, and shall be
         -------------
subject to, governed by, and interpreted in accordance with the laws of the
State of New York and shall be fully enforceable in the courts of that state,
without regard to principles of conflict of laws.

     16. Successors and Assigns. This Agreement shall inure to the benefit of
         ----------------------
and shall be binding upon the parties hereto and their respective heirs,
administrators, representatives, executors, successors and assigns, including
but not limited to (i) with respect to the Company, any entity with which the
Company may merge or consolidate or to which the Company may sell all or
substantially all of its assets, and (ii) with respect to the Employee, his
executors, administrators, heirs and legal representatives.

     17. Notices. All notices required pursuant to this Agreement shall be in
         -------
writing and shall be deemed given if mailed, postage prepaid, or if delivered by
fax or by hand, to a party at the address set forth below:

     If to the Employee:

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     Mr. William S. Kane
     426 Birch Place
     Westfield, New Jersey 07090

     If to the Company:

     International Flavors & Fragrances Inc.
     521 West 57th Street
     New York, New York 10019

     Attention: Corporate Secretary

Any change in address by either party shall be effective when notified to the
other party as aforesaid.

     18. Counterparts. This Agreement may be executed in counterparts, and each
         ------------
counterpart, when executed, shall have the effect of a signed original.

     19. Acknowledgment of Knowing and Voluntary Release; Revocation Right. The
         -----------------------------------------------------------------
Employee certifies that he has read the terms of this Agreement. The execution
hereof by the Employee shall indicate that this Agreement conforms to the
Employee's understandings and is acceptable to him as a final agreement. It is
further understood and agreed that the Employee has had the opportunity to
consult with counsel of his choice, that he has in fact consulted with his own
counsel with respect to this Agreement, and that he has been given a reasonable
and sufficient period of time of no less than 21 days in which to consider and
return this Agreement.

     WHEREFORE, intending to be legally bound, the parties have agreed to the
aforesaid terms and indicate their agreement by signing below.

     WILLIAM S. KANE

     /s/ William S. Kane                         July 16, 2001
     -------------------                         -------------
     William S. Kane                                 Date

     INTERNATIONAL FLAVORS & FRAGRANCES INC.

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     By: /s/ Stephen A. Block                    July 16, 2001
         -----------------------                 ------------
         Stephen A. Block                            Date
         Senior Vice-President
         General Counsel
         and Secretary

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                                                                      SCHEDULE I
                                                                      ----------

                                     RELEASE
                                     -------

     KNOW ALL PERSONS BY THESE PRESENTS that the undersigned, William S. Kane,
of 426 Birch Place, Westfield, New Jersey 07090 (hereinafter referred to as
"Employee"), for and in consideration of certain benefits heretofore paid or to
be paid or provided to him by International Flavors & Fragrances Inc., a New
York corporation with a place of business at 521 West 57th Street, New York, New
York 10019 (hereinafter referred to as "IFF Inc."), as such benefits are set
forth in a Separation Agreement dated as of July 16, 2001 (the "Separation
Agreement"), DOES HEREBY IREREVOCABLY AND UNCONDITIONALLY AGREE TO RELEASE,
WAIVE and FOREVER DISCHARGE, except as otherwise provided in this Release, IFF
Inc. and all of its subsidiaries, affiliates, successors and assigns and their
respective directors, officers, employees and agents (hereinafter referred to as
"Releasees") from all "Claims", as hereinafter defined, and Employee waives,
releases and covenants not to sue Releasees or to file any lawsuit or any claim
with any Federal, state or local administrative agency asserting or in respect
of any of such Claims.

     As used in this Release, the term "Claims" means and includes all charges,
complaints, claims, liabilities, obligations,

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promises, agreements, damages, actions, causes of action, rights, costs, losses
and expenses (including attorneys' fees and costs actually incurred) of any
nature whatsoever, known or unknown, suspected or unsuspected, which Employee
now has, or claims to have, or which Employee at any earlier time had, or
claimed to have had, or which Employee at any future time may have, or claim to
have, against each or any of the Releasees as to any matters relating to or
arising out of his employment and/or service on the Board of Directors of IFF
Inc. or any subsidiary or affiliate thereof or the termination of such
employment or Board of Director service, and occurring or arising on or before
the date this Release is executed by Employee. The Claims Employee is releasing
under this Release include, but are not limited to, rights arising out of
alleged violations of any contracts, express or implied, written or oral, and
any Claims for wrongful discharge, fraud, misrepresentation, infliction of
emotional distress, or any other tort, and any other Claims relating to or
arising out of Employee's employment, compensation and benefits with IFF Inc. or
the termination thereof, and any Claim for violation of any the laws of any
country of the world or subdivision thereof, including but not limited to any
United States Federal, state or other governmental statute, regulation or
ordinance including, but not limited to, the following, each as amended to date:
(1) Title VII of the Civil Rights Act of 1964, 42 U.S.C. ss.ss. 2000e et seq.;
(2) Section 1981 of

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the Civil Rights Act of 1866, 42 U.S.C. ss. 1981; (3) the Americans with
Disabilities Act, 42 U.S.C. ss. 12101 et seq. (4) the Age Discrimination in
Employment Act, 29 U.S.C. ss.ss. 621-634; (5) the Equal Pay Act of 1963, 29
U.S.C. ss. 206; (6) Executive Order 11246; (7) Executive Order 11141; (8)
Section 503 of the Rehabilitation Act of 1973, 29 U.S.C. ss.ss. 701 et seq.; (9)
the Employee Retirement Income Security Act of 1974, 29 U.S.C. ss.ss. 1001 et
seq.; and (10) any applicable New York or New Jersey law, statute, regulation,
ordinance, or constitutional or public policy provisions. Anything in this
Release to the contrary notwithstanding, it is agreed that the Employee does not
waive his rights to coverage under any directors and officers insurance policy,
for indemnification pursuant to IFF Inc.'s By-laws as in effect on the date of
this Release for acts or omissions occurring or alleged to have occurred during
Employee's employment or other service to IFF Inc., or to enforce the Separation
Agreement or any rights under any employee or retirement benefit plan, program
or policy of IFF Inc. or any of its subsidiaries or affiliates.

     Employee hereby represents that neither he nor anyone acting at his
discretion or on his behalf has filed any complaints, charges, claims, demands
or lawsuits with respect to any Claim (an "Action") against any Releasee with
any governmental agency or any court; that he will not file or pursue any Action
at any time hereafter; and that if any such agency or court assumes

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jurisdiction of any Action, against any Releasee on behalf of Employee, he will
request such agency or court to withdraw the matter. If any such Action is filed
by the Employee, he further agrees that he will not seek any relief from the
Releasees, however that relief might be called, whether reinstatement, back pay,
compensatory, punitive or exemplary damages, claims for emotional distress or
pain and suffering, or claims for attorneys' fees, reimbursement of expenses or
otherwise, on the basis of any such claim. Neither this Release nor the
undertaking in this paragraph shall limit Employee from pursuing Claims for the
sole purpose of enforcing his rights under the Separation Agreement or under any
employment or retiree benefit plan or program of IFF Inc. or any of its
subsidiaries or affiliates.

     For the purpose of implementing a full and complete release and discharge
of claims, the Employee expressly acknowledges that this Release is intended to
include in its effect, without limitation, all the claims described in the
preceding paragraphs, whether known or unknown, apparent or concealed, and that
this Release contemplates the extinction of all such claims, including claims
for attorneys' fees. Employee expressly waives any right to assert after the
execution of this Release that any such claim, demand, obligation, or cause of
action has, through ignorance or oversight, been omitted from the scope of the
Release.

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     This Release is made and entered into, and shall be subject to, governed by
and interpreted in accordance with the laws of the State of New York and shall
be fully enforceable in the courts of that state, without regard to principles
of conflict of laws.

     Employee hereby represents that he has been given a period of twenty-one
(21) days to review and consider this Release before signing it. Employee
further understands that he may use none or as much of this 21-day period as he
wishes prior to signing.

     Employee is advised that he has the right to and acknowledges that he has
consulted with an attorney before signing this Release.

     Employee may revoke this Release within seven (7) days after he signs it.
Revocation can be made by delivering a written notice of revocation to Stephen
A. Block, Senior Vice President, General Counsel and Secretary, IFF Inc., 521
West 57th Street, New York, New York 10019. For such revocation to be effective,
written notice must be received by Mr. Block not later than the close of
business on the seventh day after the day on which Employee executes this
Release. If Employee revokes this Release, it shall not be effective and the
Separation Agreement shall be null and void ab initio.

     EMPLOYEE ACKNOWLEDGES THAT HE HAS READ THIS RELEASE, UNDERSTANDS IT AND IS
VOLUNTARILY EXECUTING IT AND THAT NO REPRESENTATIONS, PROMISES OR INDUCEMENTS
HAVE BEEN MADE TO EMPLOYEE

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EXCEPT AS SET FORTH IN THIS RELEASE VOLUNTARILY, AND THAT HE INTENDS TO BE
LEGALLY BOUND BY ITS TERMS, WITH FULL UNDERSTANDING OF ITS CONSEQUENCES.

     PLEASE READ THIS RELEASE CAREFULLY. IT COVERS ALL KNOWN AND UNKNOWN CLAIMS
INCLUDING CLAIMS UNDER THE FEDERAL AGE

DISCRIMINATION IN EMPLOYMENT ACT.

                Executed at New York, New York on July 16, 2001.

                                                     /s/ William S. Kane
                                                     ------------------------
                                                     William S. Kane

                                       16

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                                                                     SCHEDULE II
                                                                     -----------

                             IFF SECURITY AGREEMENT

                    International Flavors & Fragrances, Inc.
                    521 West 57th Street, New York, NY 10019

                                 WILLIAM S. KANE

In consideration of my employment by IFF or any of its subsidiaries (herein
together called IFF), I hereby agree as follows:

1.   I acknowledge that in the course of my employment by IFF, I may have access
     to, acquire or gain confidential knowledge or information (i) with respect
     to formulae, secret processes, plans, devices, products, computer programs
     and other intangible property, know-how and other data belonging or
     relating to IFF or belonging to a customer or supplier of IFF, or (ii) with
     respect to the identity of customers of IFF, and the identity of products
     and the quantity and prices of the same ordered by such customers. I
     acknowledge that all such information is the sole property of IFF or its
     customer or supplier, and I shall treat it as set forth below.

2.   I shall keep confidential all such knowledge or information described above
     and shall not divulge it to others nor use it for my own private purposes
     or personal gain, without the express written consent of IFF. This
     obligation on my part shall continue during and after the period of my
     employment by IFF.

3.   Upon termination of my employment, or at any time IFF may request, I shall
     deliver to IFF all notes, memoranda, formulae, records, files or other
     papers, tapes, discs or programs, and copies thereof, in my custody
     relating to any such knowledge or information described above to which I
     have had access or which I may have developed during the term of my
     employment.

4.   I shall not, without the prior written permission of IFF, after leaving the
     employ of IFF for any reason, work for others, or for my own account, on
     any of the secret processes, formulae or programs on which I have worked or
     to which I have had access while in the employ of IFF.

5.   Any invention, formula, process, product, program, idea, discovery and
     improvement conceived or developed by me within the period of my
     employment, relating to any activity engaged in by IFF, shall be the sole
     and exclusive property of IFF and I shall promptly communicate to IFF full
     information with respect to any of the foregoing conceived or developed by
     me. I shall execute and deliver all documents and do all other things as
     shall be deemed by IFF to be necessary and proper to effect the assignment
     to IFF of the sole and exclusive right, title, and interest in and to all
     such inventions, formulae, processes, products, programs, ideas,
     discoveries, and improvements and patent applications and patents thereon.

6.   I understand and agree that IFF has no interest in and will not accept
     divulgence to it of any confidential knowledge or information which is the
     property of any previous employer or other third party. Notwithstanding any
     other paragraph of this agreement, I shall not communicate any such
     confidential knowledge or information to IFF nor use the same during the
     course of my employment.

        6/1/99                                           /s/ William S. Kane
        ------                                           -------------------
         date                                                  signature

                                       17<PAGE>

                                                                   EXHIBIT 10.48

THE FELD
 GROUP

================================================================================

May 22, 2001

Mr. Francis J. Alfano
Chief Financial Officer
Interliant, Inc.
Two Manhattanville Road
Purchase, NY 10577-2118
Phone 914.640.9000
Fax 914.694.1190

Re: CEO Services

Dear Frank,

This letter outlines the understanding between The Feld Group, Inc., a Delaware
corporation ("TFG"), and Interliant, Inc. ("INIT" or the "Company"), of the
amended objective, tasks, work product and compensation for the engagement of
TFG to provide Information consulting services to the Company and of the terms
of the strategic alliance between TFG and the Company. This letter amends and
supercedes in its entirety on a go forward basis from the "Effective Date"
(defined below), that certain letter between TFG and INIT dated August 11, 2000
("August 2000 Letter").

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                                   OBJECTIVE
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     .  To act as the Chief Executive Officer, President and a director of the
        Company.

     .  To establish a strategic alliance between TFG and the Company.

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                            TASKS AND WORK PRODUCT
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Tasks

     .  Advise the Company's Senior Management and provide a leadership role or
        roles in the day-to-day operations and management of the Company and its
        subsidiaries.

     .  Perform such other tasks as may be mutually agreed upon and that are
        within our expertise.

     .  To help define, architect, and select technology partners that will help
        enable the Company and its affiliates to build its technology
        infrastructure.

     .  To perform such other tasks as are reasonably requested by the Co-
        Chairmen and/or Board of Directors of the Company and which are
        consistent with the role of a CEO of a company similar to the Company.

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     .  Personal attendance at both internal and external meetings concerning
        the Company which are consistent with fulfilling the role of CEO and as
        may be requested by the Co-Chairman and/or Board of Directors, and
        visitation to Company or customer sites as may be required to
        appropriately perform the tasks of the CEO of the Company.

Work Products

     .  Information to be discussed with you and others, as you may direct.

     .  Written reports and analytical worksheets to support our suggestions as
        you may reasonably request.

     .  Provide related operational management as appropriate.

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                                   STAFFING
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Bruce Graham will be assigned to the position of the Chief Executive Officer and
President reporting to the Board of the Company and will be dedicated full-time
to this engagement. Charlie Feld will be elected to serve as a director of the
Board of the Company to serve for such term as the Board may determine. For
planning purposes, to fulfill the responsibilities of Chief Executive Officer
and President, as well as support operations of the Company, Bruce will be
assisted on average during the term, by 1.5 additional Feld Group consultants at
various levels, all of whom have a wide range of skills and abilities related to
this type of assignment. In addition, we have relationships with, and may
retain, independent contractors with specialized skills and abilities to assist
us. These independent contractors shall be billed to Interliant directly.  Any
such engagement of independent contractors or consultants shall be subject to
the prior approval of a Co-Chairman or Chief Financial Officer of the Company.
Finally, if the need arises for the addition of other full-time Feld Group
consultants beyond Bruce Graham and the additional 1.5 consultants described
above, we agree to negotiate in good faith, the fees and compensation associated
with the additional consultants that are commensurate with the Feld Group's
standard rates and practices. Any changes to the above staffing which involve
the removal or replacement of Bruce Graham as full-time CEO and President shall
require the prior written consent of the Board of the Company.

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                           TIMING, FEES AND EXPENSES
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Monthly Fees: We will commence this agreement effective as of April 2, 2001
("Effective Date") and end on April 30, 2002.

We will bill the Company at the rate of $100,000.00 a month for services
commencing May 1, 2001, prorated for any portion of a month that is less than a
complete calendar month. For purposes of monthly billings, we will bill our fees
monthly in advance and will expect to be paid by the 20/th/ of each month. We
are also reimbursed for directly related costs, such as travel, hotel, and
production support, which costs shall be payable to TFG in accordance with an
expense budget (estimated at 10-15% of total professional fees) to be mutually
determined by TFG and the Co-Chairmen and Chief Financial Officer of the
Company. Unless not practical or not cost efficient in a particular instance,
TFG will use the Company's travel services.

We will also receive as a sign-on bonus   750,000 shares of common stock of the
Company.

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<PAGE>

In addition, we will receive a grant of options to purchase 2,000,000 shares of
common stock of the Company, with an exercise price of $1.00, such options to
become vested and exercisable in forty-eight (48) equal monthly installments
based on the passage of time, on each monthly anniversary date of the Date of
Grant (i.e., May 22, 2001) beginning June 22, 2001 and continuing through and
including, May 22, 2005.  Upon a "change in control" of the Company, the
options with respect to such number of shares equal to the difference between
1,000,000 minus the then vested portion of the first 1,000,000 of the total
share grant, shall become fully and immediately vested and exercisable. In
addition, the balance of the options, shall become fully and immediately vested
and exercisable  upon the occurrence of both of the following events
(collectively, the "Acceleration Event"): (1) a "change in control" of the
Company, and (2) after such change in control, (x) TFG's engagement by the
Company or the successor entity resulting therefrom, is terminated by the
Company or such successor or (y) TFG terminates this agreement due to a
significant adverse change in TFG's or Bruce Graham's level of responsibility,
compensation or staffing requirements as directed by the Board of Directors of
the Company or such successor which is not remedied within 30 days of written
notice from the TFG to such Board advising them with reasonable specificity of
TFG's intention to terminate this agreement. As used in this Agreement, "change
in control" shall have the meaning set forth in Exhibit A hereto.

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                          RELATIONSHIP OF THE PARTIES
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The parties intend that an independent contractor relationship will be created
by this agreement. The employees of TFG are not entitled to any of the benefits
that the Company provides for the Company's Employees such as, but not limited
to, vacation payment, retirement, health care or sick pay. Company shall not be
responsible for withholding income or other taxes from the payments made to TFG.
TFG shall be solely responsible for filing all returns and paying any income,
social security or other tax levied upon or determined with respect to the
payments made to TFG pursuant to this Agreement.  As and if required by the laws
of the states in which it operates, TFG shall provide workers compensation
insurance and upon request provide to the Company a certificate of such
coverage.

The Company and TFG each agree not to solicit, recruit or hire any employees or
agents of the other for a period of one year subsequent to the completion and/or
termination of this agreement.

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                                CONFIDENTIALITY
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TFG agrees to keep confidential all proprietary information obtained from or
created on behalf of the Company or its subsidiaries. TFG agrees that neither it
nor its directors, officers, principals, employees, consultants, agents or
attorneys will disclose to any other person or entity, or use for any purpose
other than specified herein, any information pertaining to the Company or any
affiliate thereof which is either non-public, confidential or proprietary in
nature ("Information") that it obtains or is given access to during the
performance of the services provided hereunder. TFG may make reasonable
disclosures of Information to third parties in connection with their performance
of their obligations and assignments hereunder on a "need to know" basis and
upon prior notice to Company's General Counsel; however, TFG shall not disclose
the Company's or its subsidiaries' business plans and forecasts to any party
that has not signed a confidentiality agreement nor any Information to any third
party from whom the Company has requested a signed confidentiality agreement,
until the Company receives such agreement. In addition, TFG will have the right
to disclose to others in the normal course of business its involvement with the
Company.

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Information includes, but is not limited to, data, plans, reports, schedules,
drawings, accounts, records, calculations, specifications, flow sheets, computer
programs, source or Object codes, results, models, or any work product relating
to the business of the Company, its subsidiaries, distributors, affiliates,
vendors, customers, employees, contractors and consultants, and any other
material marked "confidential" by the Company.

The Company acknowledges that all advice (written or oral) given by TFG to the
Company in connection with TFG's engagement is intended solely for the benefit
and use of the Company and its affiliates (limited to its management and
employees) in considering the transactions to which it relates. The Company
agrees that no such advice shall be used for any other purpose or reproduced,
disseminated, quoted or referred to at any time in any manner or for any purpose
other than accomplishing the tasks and programs referred to herein or in
discussions with the Company's professional advisors, lenders or debt holders,
without TFG's prior approval (which shall not be unreasonably withheld,
conditioned or delayed) except as required by law. The confidentiality
obligations of both parties under this agreement will survive the termination of
the engagement. During the engagement, TFG shall provide the Company access to
all information or work product developed by or on behalf of TFG relating to the
Company or its subsidiaries and the engagement.

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                             STRATEGIC RELATIONSHIP
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During the term of this agreement, TFG and the Company shall establish a
meaningful strategic relationship which shall include, without limitation, the
following:

 .  TFG shall outsource to the Company, all of its internal web and application
   hosting and IT solution and professional service needs related thereto,
   provided the Company offers such services and its pricing is market
   competitive.

 .  The Company shall be TFG's exclusive web hosting and application service
   provider ("ASP") partner for referrals or recommendations of such web hosting
   or ASP business to other companies or organizations with whom TFG is
   associated or performing services for. It is understood that notwithstanding
   the foregoing, TFG shall not have an obligation to refer such business to the
   Company in situations where TFG clients have established pre-existing
   relationships with other such providers.

 .  The Company shall be TFG's preferred partner for referrals or recommendations
   of IT consulting and professional services business to other companies with
   whom TFG is associated or performing services for.

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                                INDEMNIFICATION
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For purposes of indemnification, Bruce Graham shall be deemed an officer and
director of the Company and shall, along with other TFG personnel who may serve
as officers or directors of the Company, be individually covered by the same
indemnification and director's and officers' liability insurance as is
applicable to other directors and officers of the Company.

In engagements where a TFG employee is acting as an officer of the Company, it
is our practice to receive indemnification. Accordingly, in consideration of our
agreement to act on behalf of the Company in connection with this engagement,
the Company agrees to indemnify, hold harmless, and defend TFG (including its
principals, employees and agents) from and against all claims, liabilities,
losses, damages

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<PAGE>

and reasonable expenses as they are incurred, including reasonable legal fees
and disbursements of counsel, relating to or arising out of the engagement,
including any legal proceeding in which we may be required or agree to
participate but in which we are not a party (collectively "Claims"). TFG's
principals, its employees, agents and TFG may, but are not required to, engage a
single firm of separate counsel of our choice in connection with any of the
matters to which this indemnification agreement relates. This indemnification
agreement does not apply to actions taken or omitted to be taken by TFG, its
principals, employees or agents which constitute negligence or willful
misconduct.

TFG shall similarly indemnify and hold harmless the Company, its affiliates, and
their respective officers, directors, shareholders and employees from any Claims
caused by the negligence or willful misconduct of TFG, its principals, employees
or agents.

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                            TERMINATION AND SURVIVAL
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The agreement may be terminated upon  thirty (30) days' written notice at any
time given by one party to the other; provided, however, that notwithstanding
such termination TFG will be entitled to any fees,  and expenses due under the
provisions of the agreement that otherwise would be payable to TFG through the
last day of the calendar month within which the termination date falls pursuant
to such notice ("Early Termination Date").  Unless terminated as provided above,
this agreement will terminate on April 30, 2002 ("Termination Date").

The obligations of the parties under the Indemnification, Confidentiality and
Termination and Survival sections of this agreement shall survive the
termination of the agreement as well as the other sections of this agreement,
which expressly provide that they shall survive termination of this agreement.

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                                 GOVERNING LAW
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This letter agreement is governed by and construed in accordance with the laws
of the State of Texas with respect to contracts made and to be performed
entirely therein and without regard to choice of law or principles thereof.

If we have a dispute with respect to any of the provisions of this agreement and
are unable to agree on a mutually satisfactory resolution within 30 days, either
party may require the matter to be settled by binding arbitration. If such
arbitration shall occur, it shall be in the city of Dallas if brought by the
Company and the City and County of New York if brought by TFG. We shall attempt
for two weeks to agree on a single arbitrator. If that effort shall fail, each
party shall appoint one arbitrator. The two arbitrators so chosen shall attempt
for two weeks to select a third. If they are unable to agree, the American
Arbitration Association in New York City shall choose the third. The arbitration
shall occur using the rules and procedures of the American Arbitration
Association. The decision of the arbitrator(s) shall be final, binding and non-
appealable.  The arbitrator shall have the right to allocate costs and expenses
of the arbitration proceeding among TFG and the Company based on who the
prevailing party is.

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                                  DISCLOSURES
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We know of no fact or situation, which would represent a conflict of interest
for us with regard to this engagement. We do wish to disclose the following
information:

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While we are not currently aware of any other relationships that connect us to
any party in interest, because TFG is a consulting firm that serves clients on a
national basis in numerous engagements, it is possible that TFG may have
rendered services to or have business associations with other entities which had
or have relationships with the Company, including creditors, vendors, and
customers of the Company. TFG has not and will not represent the interests of
any of these aforementioned entities in this engagement, involving the Company.
During the term of this agreement, the employees and consultants of TFG who are
staffing this engagement, including without limitation Bruce Graham, shall not
render services to any companies which are in businesses in competition with the
businesses in which the Company is engaged.

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                                  SEVERABILITY
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The failure of either party to enforce any portion of this agreement shall not
be construed as a waiver or limitation of that party's right to subsequently
enforce and compel strict compliance with every provision of this agreement.

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                                ENTIRE AGREEMENT
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All of the above contains the entire understanding of the parties relating to
the services to be rendered by TFG and may not be amended or modified in any
respect except in writing signed by the parties. TFG will not be responsible for
performing any services not specifically described in this letter or in a
subsequent writing signed by the parties. This agreement supercedes the August
2000 Letter on a go forward basis, as well as any other prior written or oral
agreement between the parties. This agreement may not be modified except in a
writing signed by both parties.

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                             SUCCESSORS AND ASSIGNS
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This agreement is personal in its nature and neither of the parties hereto
shall, without the consent of the other, assign or transfer this agreement or
any rights or obligations hereunder, except that the Company may assign this
agreement to any of its  subsidiaries or to any successor entity resulting from
a merger, consolidation, sale of stock of the Company or sale of substantially
all of the assets of the CompanyThe rights, privileges and obligations of the
parties hereto shall inure to the benefit of their respective permitted
successors and assigns.

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                                    NOTICES
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All notices required or permitted to be delivered under this letter agreement
shall be sent, if to us, to the address set forth at the head of this letter, to
the attention of Mr. Michael R. Koehler, and if to you, to the address for you
set forth above, to the attention of your General Counsel, or to such other name
or address as may be given in writing to the other party. All notices under the
agreement shall be sufficient if delivered by facsimile or overnight mail. Any
notice shall be deemed to be given only upon actual receipt. Any faxes to the
Company shall be sent to 914-694-4877 and to TFG shall be sent to 972-791-3951.

If these terms meet with your approval, please sign and return the enclosed copy
of this letter.

Sincerely yours,

                                                                     Page 6 of 8
<PAGE>

The Feld Group, Inc.

  s/s Mike Koehler
------------------------------
Mike Koehler
Chief Operating Officer

Acknowledged and Agreed to:

Interliant, Inc.

  s/s Francis J. Alfano
------------------------------
Francis J. Alfano
Chief Financial Officer

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<PAGE>

                                   EXHIBIT A
                                   ---------

For purposes of this Award Agreement, "change in control" shall mean:

          (i)   an acquisition subsequent to the date hereof by any person,
     entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
     Securities Exchange Act of 1934, as amended (the "Exchange Act")) (a
     "Person"), of beneficial ownership (within the meaning of Rule 13d-3
     promulgated under the Exchange Act) of 30% or more of either (A) the then
     outstanding shares of Common Stock of the Company or (B) the combined
     voting power of the then outstanding voting securities of the Company
     entitled to vote generally in the election of directors (the "Outstanding
     Company Voting Securities"); excluding, however, the following:  (1) any
     acquisition directly from the Company, other than an acquisition by virtue
     of the exercise of a conversion privilege unless the security being so
     converted was itself acquired directly from the Company, (2) any
     acquisition by the Company and (3) any acquisition by an employee benefit
     plan (or related trust) sponsored or maintained by the Company;

          (ii)  a change in the composition of the Board of Directors of the
     Company (the "Board") such that during any period of two consecutive years,
     individuals who at the beginning of such period constitute the Board, and
     any new director (other than a director designated by a person who has
     entered into an agreement with the Company to effect a transaction
     described in subsections (i), (iii) or (iv) of this paragraph) whose
     election by the Board or nomination for election by the Company's
     stockholders was approved by a vote of at least two-thirds of the directors
     then still in office who either were directors at the beginning of the
     period or whose election or nomination for election was previously so
     approved, cease for any reason to constitute at least a majority of the
     members thereof;

          (iii) the approval by the stockholders of the Company of a
     merger, consolidation, reorganization or similar corporate transaction,
     whether or not the Company is the surviving corporation in such
     transaction, in which outstanding shares of Common Stock of the Company are
     converted into (A) shares of stock of another company, other than a
     conversion into shares of voting common stock of the successor corporation
     (or a holding company thereof) representing 80% of the voting power of all
     capital stock thereof outstanding immediately after the merger or
     consolidation or (B) other securities (of either the Company or another
     company) or cash or other property;

          (iv)  the approval by the stockholders of the Company of (A) the sale
     or other disposition of all or substantially all of the assets of the
     Company or (B) a complete liquidation or dissolution of the Company; or

          (v)   the adoption by the Board of a resolution to the effect that any
     person has acquired effective control of the business and affairs of the
     Company.

                                                                     Page 8 of 8

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