Document:

Exhibit 10.1.14

SEPARATION AGREEMENT AND GENERAL
RELEASE

THIS SEPARATION AGREEMENT AND
GENERAL RELEASE (“Agreement”) is made and entered on 16th day of
August 2006 into by and between DAVID A. CHAPUT (“MR. CHAPUT”) and The Doe Run
Resources Corporation, doing business as The Doe Run Company (“DOE RUN”), and
sometimes collectively described as “parties.”

RECITALS

WHEREAS, DOE RUN and MR. CHAPUT
have decided that it is in their mutual interests that the employment
relationship subsisting between them be terminated;

WHEREAS, DOE RUN desires that
MR. CHAPUT remain in his present position and that he continue to receive his
current pay and benefits pending the hiring of a successor, and hereby offers
him certain “Stay Incentives,” as detailed below, to do so,

WHEREAS, MR. CHAPUT’s employment
with DOE RUN will terminate upon the hiring of his successor but in no event
later than October 31, 2006 (“Separation Date”), unless the parties mutually
agree otherwise;

WHEREAS, DOE RUN pursuant to the
terms of MR. CHAPUT’s employment agreement dated April 7, 1994, has notified
MR. CHAPUT by letter dated and personally delivered on July 25, 2006, that DOE
RUN is terminating his employment agreement;

WHEREAS, MR. CHAPUT and DOE RUN
desire to enter into full and final settlement of all issues and matters
between them through the Separation Date.

NOW THEREFORE, for and in
consideration of the mutual releases, covenants and undertakings hereinafter
set forth, and for other good and valuable consideration, which each party
hereby acknowledges, it is agreed as follows:

1.                                       Payments and Benefits.  DOE RUN
will provide the payments and benefits described below in consideration and in
exchange for the MR. CHAPUT’s promises, agreements, and obligations set out
below, so long as MR. CHAPUT submits this Agreement properly executed to
Barbara Shepard, The Doe Run Company, 1801 Park 270 Drive, Suite 300, St.
Louis, MO 63146, and adheres to the promises and agreements set out in the
balance of this Agreement.

(A)                              Payments.  Consistent with The Severance
Policy For Salaried Employees of The Doe Run Company, as amended, DOE RUN will pay MR. CHAPUT an additional thirty (30)
weeks of MR. CHAPUT’s regular pay following MR. CHAPUT’s Separation Date.  This amount will be paid as though it were
regular payroll, less legally required federal, state, and local tax
withholdings, or in a lump sum at MR. CHAPUT’s option.

  
  
 

 

(B)                                Vacation.  DOE RUN will pay MR. CHAPUT
for four (4) weeks vacation, less any amounts he may use before the Separation
Date.

(C)                                Outplacement Services.  DOE RUN
shall provide MR. CHAPUT outplacement services through Extreme Agility or other
mutually acceptable provider for up to twelve (12) months after the Separation
Date.

(D)                               Job Search Flexibility.  DOE RUN
shall allow MR. CHAPUT reasonable time away from work, without loss of pay or
benefits, to search for other employment, subject to the approval of DOE RUN’s
Chief Executive Officer, which approval will not be unreasonably withheld.

(E)                                 Stay Incentives:  Provided MR. CHAPUT remains in
his current position until October 31, 2006 or the hiring of a successor,
whichever occurs earlier, and fully cooperates with DOE RUN, as determined by
DOE RUN, he shall be entitled to the following:

i.                                          the sum of $225,000.00 payable as follows:

a)                          DOE RUN
will, upon this Agreement becoming effective, pay MR. CHAPUT, the sum of
$60,000.00 less legally required federal, state, and local tax withholdings.

b)                         The remaining balance of the payment
($165,000.00) shall be paid October 31, 2006, less legally required federal,
state and local tax withholdings.

ii.                                       Solely
for purposes of determining MR. CHAPUT’s Payments under the terms of the
Amended and Restated Net Worth Appreciation Agreement between MR. CHAPUT and
DOE RUN dated July 1, 2005, MR. CHAPUT will be deemed to have been in the
employ of DOE RUN through October 31, 2006.

iii.                                    If MR. CHAPUT elects continued health care
insurance benefits under the Consolidated Omnibus Budget Reconciliation
Act, as amended, 29 U.S.C., § 623 et seq.,
(“COBRA”) after the Separation Date for
himself, his spouse, or dependents, DOE RUN shall continue to pay that portion
of the premium that it pays on behalf of active employees employed in a similar
position as MR. CHAPUT for a period not to exceed eighteen (18) months, which period
shall commence from the Separation Date or from October 31, 2006, whichever is
later, and which period shall terminate after eighteen (18) months or when MR.
CHAPUT obtains alternate medical insurance, whichever occurs first.

iv.                                   DOE RUN will reimburse MR. CHAPUT for reasonable
attorney fees in an amount not to exceed $4,000.00.

  
  
 

 

v.                                      DOE RUN will not contest any unemployment
benefits that MR. CHAPUT may request from any state or federal agency.

vi.                                   DOE RUN will provide the following reference:

Mr. Chaput served as the Chief
Financial Officer for a company with a billion dollars in sales in 2005.  His responsibilities included accounting,
financial reporting, SEC compliance, financial planning and budgeting, and Sarbanes
Oxley compliance.  He also managed treasury
functions, including bank, private and public financing, investor relations,
presentations to analyst groups and rating agencies, acquisition transactions,
cash management, and commodity price risk management.  Mr. Chaput was a long-term employee whose
tenure spanned nineteen (19) years.  He
moved up through the ranks of the company from the initial position of Credit
Manager to Treasurer to Vice President of Finance and finally to the position
of Chief Financial Officer.  He also
served as the President of the fabrication subsidiary.  His efforts are appreciated.

vii.                                DOE
RUN shall defend, indemnify and hold harmless MR. CHAPUT (and his heirs and personal
representatives) from and against any and all proceedings, whether civil or
criminal, judgments, liabilities, claims, demands, damages, amounts paid in
settlement, fines, penalties, punitive damages, actions, causes of action of
any type or kind whatsoever, suits, losses, attorneys’ fees, costs and expenses
arising out of, in connection with, or in any way related to his serving or
having served as an officer of DOE RUN or, at the request of DOE RUN, as a
director, officer, employee, or other agent of any other organization,
including any other corporation, partnership, joint venture, trust, employee
benefit plan, or other enterprise, even if the proceedings, judgments,
liabilities, claims, demands, damages, amounts paid in settlement, fines,
penalties, punitive damages, actions, causes of action, suits, losses,
attorneys’ fees, costs, and expenses are alleged to be caused by, including but
not limited to the negligence, carelessness, recklessness, gross negligence, acts, errors, and omissions, misfeasance, malfeasance, or fault of MR. CHAPUT, whether alleged to
be acting individually or in combination with other persons or entities, or caused by, including but not limited to the
negligence, carelessness, recklessness, gross negligence, acts, errors, and
omissions, misfeasance, malfeasance, or fault of MR. CHAPUT, whether acting individually or in combination
with other persons or entities, provided that in the case of criminal actions
or proceedings, MR. CHAPUT had no reasonable cause to believe that his conduct
was unlawful.  Further, the terms of this
indemnification provision are retroactive and apply against any and all
proceedings, whether civil or criminal, judgments, liabilities, claims,
demands, damages, amounts paid in

  
  
 

 

settlement, fines,
penalties, punitive damages, actions, causes of action, suits, losses,
attorneys’ fees, costs, and expenses regardless of the time of occurrence.

viii.                             In
the event, DOE RUN hires a successor for MR. CHAPUT before October 31, 2006, it
will continue his full pay and benefits through October 31, 2006.

(F)                                 Valuable Consideration.  MR.
CHAPUT acknowledges and agrees that the payments and benefits referenced in
paragraph 1(A) through 1(E) of this Agreement constitute valuable consideration
to which MR. CHAPUT would not otherwise be entitled to upon his separation.

(G)                                No other compensation or Bonuses.  Other
than benefits MR. CHAPUT may be entitled to under his Net Worth Appreciation
Agreement, MR. CHAPUT acknowledges and agrees that he will be paid no other
compensation or bonuses except those specified in this Agreement.

2.                                       Continuing Obligations.  MR.
CHAPUT acknowledges and agrees that any post-termination obligations he has,
pursuant to any employment agreement with DOE RUN or by operation of law, shall
survive this Agreement and shall remain in full force and effect.  The terms of this Agreement add to any such obligations
and are not in any way intended to limit or modify any such other obligations.

3.                                       Release of Claims.

(A)                              MR. CHAPUT hereby agrees to, and does, remise,
release and forever discharge DOE RUN, its parent companies, its affiliate
companies, its subsidiary companies, and their directors, officers,
shareholders, employees, agents, attorneys, successors and assigns (the “DOE
RUN RELEASEES”), from any and all matters, claims, demands, damages, causes of
action, debts, liabilities, controversies, judgments and suits of every kind
and nature whatsoever, foreseen or unforeseen, known or unknown, which have
arisen or could arise between MR. CHAPUT and the DOE RUN RELEASEES from
matters, actions or inactions which occurred on or before the Separation Date.  Nothing in this Agreement shall be construed
to negate or impair any indemnity to which MR. CHAPUT is entitled pursuant to
this Agreement.

(B)                                DOE RUN hereby agrees to, and does, remise,
release and forever discharge MR. CHAPUT, his representatives, executors,
administrators, personal representatives and assigns (the “CHAPUT RELEASEES”)
from any and all matters, claims, demands, damages, causes of action, debts,
liabilities, controversies, judgments and suits of every kind and nature
whatsoever, foreseen or unforeseen, known or unknown, which have arisen or
could arise between DOE RUN and the CHAPUT RELEASEES from matters, actions or
inactions which occurred on or before the Separation Date.

  
  
 

 

(C)                                Neither DOE RUN nor MR. CHAPUT releases any of
their respective rights and benefits under this Agreement or the Net Worth
Appreciation Agreement.

4.                                       Agreement Not to File Suit or Other Claims.  In
exchange for the receipt of the payments and benefits set out in paragraph 1
above, MR. CHAPUT agrees:

(A)                              That MR. CHAPUT expressly waives the
benefit of any statute or rule of law which, if applied to this Agreement,
would otherwise exclude from its binding effect any claims not known by MR.
CHAPUT to exist.  MR. CHAPUT promises
never to file any lawsuit or initiate any other legal action based on a claim
released by this Agreement, and he will withdraw with prejudice any such
lawsuit or other legal action that may already be pending.  MR. CHAPUT promises never to seek or accept
any damages, remedies, or other relief for himself personally (any right to
which he hereby waives) by prosecuting an administrative charge, or otherwise,
with respect to any claim released by this Agreement.

(B)                                That MR. CHAPUT’s release of claims, complaints,
and actions includes, but is not limited to: 
(i) any claim for breach of an actual or implied contract of
employment between MR. CHAPUT and any of the DOE RUN RELEASEES (including any
claim of fraudulent misrepresentation or negligent misrepresentation in the
making of any actual or implied contract of employment), (ii) any claim of
unjust, wrongful, discriminatory, retaliatory or tortious discharge or other
adverse employment action (including any claim of whistleblowing),
(iii) any claim of slander, libel or other similar action for defamation,
(iv) any claim of intentional tort (including assault, battery, and intentional
infliction of emotional distress), (v) any claim of negligence (including
negligent infliction of emotional distress, negligent hiring, or negligent
retention), (vi) any claim of a violation of a statute or ordinance,
including, but not limited to, the Civil Rights Act of 1866, 42 U.S.C. §
1981, the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq.,
as amended by the Civil Rights Act of 1991, the Age Discrimination in Employment
Act, 29 U.S.C. § 621 et seq.
(including, but not limited to, the Older Worker Benefit Protection Act), the
Employee Retirement Income Security Act, 29 U.S.C. § 1001 et seq.
(including, but not limited to, COBRA), Executive Order 11246, the Occupational
Safety and Health Act, 29 U.S.C. § 651 et. seq., the
National Labor Relations Act, 29 U.S.C. § 151 et. seq.
the Equal Pay Act), the Rehabilitation Act of 1973, 29 U.S.C. § 701 et seq., the Americans with Disabilities Act, 42 U.S.C. §
12101 et seq., the Worker Adjustment and
Retraining Notification Act, 29 U.S.C. § 2101 et seq..
the Missouri Human Rights Act, Mo. Rev. Stat § 213.010 et seq., the Missouri Payment Due
Discharged Employee Statute, Mo. Rev. Stat § 290.110, the Missouri Service Letter Act, Mo. Rev. Stat § 290.140,
and any other federal, state, or local statutes or ordinances governing or
concerning employment.

(C)                                Notwithstanding
anything contrary in this Agreement nothing in Section 3 and 4 shall be
construed to negate or impair any indemnity to which MR. CHAPUT is

  
  
 

 

entitled
pursuant to this Agreement nor from enforcing his rights or benefits under this
Agreement or the Net Worth Appreciation Agreement.

5.                                       No knowledge of Injury.  MR.
CHAPUT represents and warrants that he has no present knowledge of any injury,
illness or disease to him that is or might be compensable as a workers’
compensation claim or similar claim for workplace injuries, illnesses or
diseases.

6.                                       No Admission of Wrongdoing.  The
parties agree that nothing in this Agreement is an admission by either party of
any wrongdoing, either in violation of an applicable law or otherwise, and that
nothing in this Agreement is to be construed as such by any person.

7.                                       Voluntary Agreement.  MR.
CHAPUT further acknowledges that he understands this Agreement, the claims he
is releasing, the promises and agreements he is making, and the effect of his
signing this Agreement.  MR. CHAPUT
further represents, declares, and agrees that he voluntarily accepts the
payments and benefits described above in paragraph 1 for the purpose of making
a full and final compromise, adjustment, and settlement of all claims or
potential claims against the DOE RUN RELEASEES from any action or inaction
taking place prior to the Separation Date.

8.                                       No Suggestion of Future Employment.  MR.
CHAPUT acknowledges that there is no suggestion or implication that his
employment with DOE RUN or any of the DOE RUN RELEASEES shall be continued for
a definite period of time, or once ended resumed at any future time.

9.                                       Choice of Law.  This Release shall be
construed and governed by the laws of the State of Missouri.

10.                                 Modification.  The parties hereto agree that this Agreement
may not be modified, altered, or changed except by a written agreement signed
by the parties.

11.                                 Entire
Agreement.  The parties acknowledge
that this constitutes the entire agreement between them superseding all prior
written and oral agreements, regarding MR. CHAPUT’s separation, and that there
are no other understandings or agreements, written or oral, among them on the
subject of MR. CHAPUT’s separation.

12.                                 Severability.  If any provision of this Agreement is held to
be invalid, the remaining provisions shall remain in full force and effect.

13.                                 Effective
Date.  Separate copies of this
document shall constitute original documents which may be signed separately but
which together will constitute one single agreement.  This Agreement shall become effective and
binding on the eighth day following MR. CHAPUT’s execution of this Agreement.

14.                                 Time
for Consideration and Execution.  By executing this Agreement, MR. CHAPUT
acknowledges that he has been advised by a representative of DOE RUN that he is
entitled to twenty-one (21) days within which to consider this Agreement before
his signing the

  
  
 

 

same, and that he has, in fact, been offered twenty-one (21) days
within which to consider this Agreement before signing the Agreement.

15.                                 Time for Revocation.  By
executing this Agreement, MR. CHAPUT acknowledges that he has been advised by a
representative of DOE RUN that this Agreement shall not become effective until
the eighth (8th) calendar day after the date of MR. CHAPUT’s execution of this
Agreement.  During the seven (7) day
period following MR. CHAPUT’s execution of this Agreement, MR. CHAPUT may
freely revoke his execution of this Agreement by providing written notification
of such revocation to Barbara Shepard, The Doe Run Company, 1801 Park 270
Drive, Suite 300, St. Louis, MO 63146. 
Upon expiration of the seven (7) day period, MR. CHAPUT acknowledges
that this Agreement becomes final and binding. 
If MR. CHAPUT revokes this Agreement within the seven (7) day period
following his execution of this Agreement, it shall not be effective or
enforceable, and MR. CHAPUT will not receive the payments or benefits described
in this Agreement.

16.                                 Consultation With an Attorney.  By
executing this Agreement, MR. CHAPUT acknowledges that, at the time he was
presented with this Agreement for his consideration, he was advised by a
representative from DOE RUN, in writing, to consult with an attorney about this
Agreement, its meaning and effect, before executing this Agreement.

17.                                 No
Reliance.  The parties have not
relied on any representations, promises, or agreements of any kind made to them
in connection with this Agreement, except for those set forth in this
Agreement.

18.                                 Capacity
to Settle.  MR. CHAPUT represents and
warrants that he has no legal impediments (including bankruptcies) to fully and
completely settle all claims and to sign this Agreement.  MR. CHAPUT further warrants that he is the
sole owner of all the claims he has released in this Agreement, and that he has
not assigned or transferred any such claim (or any interest in any such claim)
to any other person, and that he will indemnify, defend and hold the DOE RUN
RELEASEES harmless for any damages costs, fees or expenses which they may incur
if these representations and warranties are incorrect in any respect.

19.                                 Return of Property.  MR.
CHAPUT agrees to return all property belonging to DOE RUN, including, but not
limited to, keys, security cards, credit card, parking cards, computers,
equipment, manuals, security and access codes, and documents of any kind
provided or shown to MR. CHAPUT throughout MR. CHAPUT’s employment with DOE RUN
(including, but not limited to, policy books or memoranda, customer lists and
customer data, pricing data, marketing data, products and services materials,
and the like) promptly upon the cessation of his employment.

  
  
 

 

20.                                 Covenants
of MR. CHAPUT.

(A)                              MR.
CHAPUT covenants and agrees that he will not in any manner directly or
indirectly, except as required in the performance of his duties to DOE RUN or
as may be required by law:

(i)                                     from and after the date of this Agreement and for
all time thereafter, disclose or divulge to any person, entity, firm or company
whatsoever, or use for his own benefit or the benefit of any other person,
entity, firm or company, directly or indirectly, any confidential and
proprietary information about the business and affairs of DOE RUN (including
with limitation, information relating to DOE RUN’s or its subsidiaries’ mineral
reserves, exploration, mining, smelting, refining, and recycling activities,
customer lists, business plans, or financial information belonging to DOE RUN
or developed by MR. CHAPUT on behalf of DOE RUN during his employment with DOE
RUN or during the term of this Agreement), the parties hereto stipulating, as
between them, that the same are important, material, confidential and the
property of DOE RUN, that disclosure of the same to or use of the same by third
parties would adversely affect the effective and successful conduct of the
business of DOE RUN and the goodwill of DOE RUN,

(ii)                                  From
and after the date of this Agreement through December 31, 2008, except at the
written direction of the President of DOE RUN discuss any matters relating to
the business of operations of DOE RUN with any person, without regard to
whether any of the foregoing matters will be deemed confidential, material or
important, the parties hereto stipulating, as between them, that the same are
important, material, confidential and the property of DOE RUN, that disclosure
of the same to or use of the same by third parties would adversely affect the
effective and successful conduct of the business of DOE RUN and the good will
of DOE RUN.

Any breach of the
terms of this subparagraph (A) shall be a material breach of this Agreement.

(B)                                From
and after the date of this Agreement through December 31, 2008,  MR. CHAPUT covenants and agrees that he will
not in any manner directly or indirectly:

(i)                                     solicit,
divert, take away or interfere with any of the customers (or their respective
affiliates or successors) of DOE RUN;

(ii)                                  engage
directly or indirectly, either personally or as an employee, partner, associate
partner, officer, manager, agent, advisor, consultant or otherwise, or by means
of any corporate or other entity or device, in any business which is
competitive with the business of DOE RUN; for purposes of this covenant a
business will be deemed competitive only if it is engaged in the 

  
  
 

 

business of
producing, recycling, fabricating or selling non-ferrous metals (the parties
acknowledge DOE RUN’s trading area is global), as of the date of cessation of
MR. CHAPUT’s engagement with DOE RUN. However, nothing contained in this
subparagraph 20(B)(ii) shall be deemed to prohibit MR. CHAPUT from any
engagement in the natural resources industry, provided the engagement does not
involve a business engaged in producing, recycling, fabricating or selling
non-ferrous metals, and further provided MR. CHAPUT, in any such engagement,
shall comply with the provisions of subparagraph 20(B) hereto.

(iii)                               induce any salesman,
distributor, supplier, manufacturer, representative, agent or other person
transacting business with DOE RUN to terminate their relationship with the DOE
RUN, or to represent, distribute or sell products in competition with products
of DOE RUN; or

(iv)                              induce
or cause any employee of DOE RUN to leave the employ of DOE RUN.

(C)                                It
is the intention of the parties to restrict the activities of MR. CHAPUT under
this paragraph 20 only to the extent necessary for the protection of legitimate
business interests of DOE RUN, and the parties specifically covenant and agree
that should any of the provisions set forth herein, under any set of
circumstances not now foreseen by the parties, be deemed too broad for such
purpose, said provisions will nevertheless be valid and enforceable to the
extent necessary for such protection.

21.                                 No
Disparagement.  MR. CHAPUT agrees
that he will not disparage DOE RUN, its
parent companies, its affiliate companies, its subsidiary companies, and their
directors, officers, shareholders, employees, agents, attorneys, successors and
assigns or solicit or encourage others to do so, and he will not make,
solicit or encourage any comments, statements or the like to the media or to
others which are derogatory or detrimental to the good name or business
reputation of DOE RUN.

DOE RUN agrees
that it will not disparage MR. CHAPUT. 
In the event a comment, derogatory or detrimental to the good name or
business of reputation of MR. CHAPUT, is published or broadcast by a media
entity, and it is made by or attributed to an employee of DOE RUN and DOE RUN
is advised of it by MR. CHAPUT, then DOE RUN shall issue a statement that
states that this is not the position of the Company, and that it appreciated
the efforts of MR. CHAPUT during his 19 years of service.

22.                                 Confidentiality.  MR. CHAPUT agrees that the terms and
conditions of this Agreement are confidential and he agrees not to disclose or
disseminate information concerning this Agreement to anyone other than his
spouse, his lawyers or accountants, or government taxing authority, except as
may be required by law, or by order of court, without the prior written
permission of DOE RUN.  Nothing in this
Agreement shall prevent Doe Run

  
  
 

 

from disclosing the terms of this Agreement and
the existence thereof, if required by law or in accordance with an written
indentures to which DOE RUN is signatory.

23.                                 Arbitration.
 The parties agree that in the event of
any breach or alleged breach of this Agreement, such breach or dispute shall be
submitted to arbitration under the rules of the American Arbitration
Association (“AAA”) for selection of a neutral arbitrator.  Arbitration shall be the sole and exclusive
remedy with respect to any alleged breach or dispute, and shall be handled
pursuant to the procedures and provisions of the AAA and the proceedings shall
be private and confidential.

The parties shall
jointly request the AAA to designate a panel of arbitrators, and either the
parties mutually shall agree upon one of the arbitrators or, in the absence of
mutual agreement, each side shall alternatively strike a name from the list of
arbitrators commencing with the party seeking arbitration, and the name
remaining on the list shall be deemed chosen as the arbitrator.

The parties agree
that the issue before the arbitrator shall be whether one of the parties
breached the terms of this Agreement, and, if so, what are the appropriate
damages, if any, except that the arbitrator
will have no authority to award punitive damages or damages for non-economic
injuries.  The finding of the
arbitrator shall be final and binding on both parties.  The arbitrator shall have no power to add to,
detract from, or alter this Agreement in any way, and, notwithstanding any AAA
rule to the contrary, the arbitrator shall have no power to award, and may not
award, punitive or non-economic damages. 
The arbitrator’s decision shall be subject to review only as provided
under the Federal Arbitration Act where the arbitrator has failed to base his
or her decision on the Agreement. 
Pending final decision by the arbitrator, there shall be no other legal
action taken by either party to the controversy.

The arbitration
shall take place in the State of Missouri in the metropolitan St. Louis
area.  All costs and expenses incidental
to and arising out of the arbitration (e.g., arbitrator’s
fee) shall be borne by the losing party, but each side shall pay its own attorneys’
fees.

24.                                 Vested
Rights.  The parties further
agree that this Agreement shall not adversely affect, alter, or extinguish any
vested rights that MR. CHAPUT may have with respect to any pension or
retirement benefits to which he is or will be entitled by virtue of his
employment with DOE RUN, and nothing in this Agreement will prohibit MR. CHAPUT
from enforcing his rights to any such pension or retirement benefits, including
but not limited to DOE RUN’s 401(k) Plan, the Doe Run Defined Benefit Plan, and
the Doe Run Resources Corporation Supplemental Employee Retirement Plan.

25.                                 Recitals.  The recitals that begin this
Agreement are part of the provisions of this Agreement.

The remainder of this page
intentionally left blank

  
  
 

 

IN WITNESS WHEREOF, the undersigned
parties have executed this SEPARATION AGREEMENT AND
GENERAL RELEASE.

	
  

  	
   

  	
  THE DOE RUN RESOURCES CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/ A B Neil

  

Subscribed and sworn to before
me, a Notary Public, this 16 day of August, 2006.

	
  

  	
   

  	
  /s/ Kristina D Drayton

  	
   

  
	
   

  	
   

  	
  NOTARY PUBLIC

  

My commission expires:

	
  11/30/2006

  	
   

  

  
  
 

 

I HAVE READ THIS SEPARATION
AGREEMENT AND GENERAL RELEASE AND, UNDERSTANDING ALL OF ITS TERMS, SIGN IT OF
MY FREE WILL.  I UNDERSTAND THAT THIS
AGREEMENT HAS A BINDING ARBITRATION PROVISION WHICH CAN BE ENFORCED BY THE
PARTIES.

	
  

  	
   

  	
  /s/ David Chaput

  
	
   

  	
   

  	
  DAVID A. CHAPUT

  

Subscribed and sworn to before
me, a Notary Public, this 16 day of August, 2006.

	
  

  	
  s/ Kristina D
  Drayton

  
	
   

  	
  NOTARY PUBLIC

  

My commission expires:

	
  11/30/2006Exhibit
10.2.7

THE DOE RUN RESOURCES
CORPORATION

1801 PARK 270 DRIVE

ST. LOUIS, MISSOURI  63146

August
24, 2006

Theodore P. Fox III

49 Pacland Estates Dr.

Chesterfield,
MO  63005

Re:                               Net
Worth Appreciation Agreement (“Agreement”)

Dear Mr. Fox:

This letter, sets
forth the agreement between you and The Doe Run Resources Corporation, (the “Company”) with respect to your Net Worth Appreciation
Benefit, intended to constitute additional incentive compensation to you as an
employee of the Company.  The base date of
this Agreement shall be November 1 (the “Base Date”), 2006 (the “Base Year”).

1.             Vesting.  On the Base Date in 2009, provided that you
have been continuously in the employ of the Company from the Base Date in 2006
through such date, you shall receive a Net Worth Appreciation Credit of 0.6%
and on the Base Date in each of the years 2010 and 2011 you shall receive an
additional Net Worth Appreciation Credit of 0.2%, provided that you have been
continuously in the employ of the Company from the Base Date in 2006 to the
applicable Base Date, up to a maximum credit, if you remain in the employ of
the Company continuously through the Base Date in 2011, of 1.0% (the “Maximum
Credit”).  The aggregate number of Net
Worth Appreciation Credits received on or prior to a given date shall be
hereinafter referred to as “Vested Credits”. 
You shall not receive any credit unless you have remained in the employ
of the Company from the Base Date in 2006 continually until the Base Date in
2009, and thereafter you shall not receive credit for any partial year,
provided that (a) if your employment terminates due to death or Disability
(as defined below) preventing you from performing your usual employment
functions and duties prior to the Base Date in 2009, you shall receive a credit
of 0.6%, and (b) if your employment terminates after the Base Date in 2009
and before the Base Date in 2011, due to death or Disability (as defined
below), you shall receive a credit of 0.2% for the partial year in which the
termination takes place (in addition to all credits previously accrued under
this Agreement).  For purposes of this
Agreement, “Disability” shall mean a physical or mental impairment that can be
expected to result in death or to last for at least 12 months, and the
impairment either: (1) prevents the employee from engaging in any substantial
gainful activity; or (2) entitles the employee to receive income replacement
benefits for at least 3 months under an accident and health plan sponsored by
the Company.

2.     Treatment
of Matters in Calculation of Benefits.

(a)   For
the purposes of calculating the benefits payable under this Agreement, the
Company will continue to calculate Federal corporate income taxes and the
corporate income taxes for those jurisdictions in which the Company and its
subsidiaries do business, for the fiscal periods or portions thereof beginning
on or after the Base Date in 2006, as if the Company had commenced operations
on the Base Date in 2006 and as if

 

the Company and its subsidiaries had
continued to have C corporation status under the Federal Internal Revenue
Code and under state and local tax laws, in accordance with the provisions of
generally accepted accounting principles and the Internal Revenue Code and
regulations thereunder and under state and local tax laws applicable to
C corporations as from time to time in effect (“C Status”).  Such tax calculations will include
calculations of current and deferred tax expense or benefit and current and
non-current tax assets and liabilities (“C Taxes”) and the differences (“Tax
Differences”) between the C Taxes and the taxes as recorded by the Company
and its subsidiaries while being designated a qualified subchapter
S subsidiary (“S Taxes”).  For
clarity, the tax basis of the Company’s assets and liabilities will be deemed
to be the tax basis as of the Base Date in 2006, except that no net operating
loss carryforward will be deemed to exist as of such date.

(b)   Cumulative
Income Statement Tax Difference shall be the cumulative difference in income
tax expenses or benefit between the calculation of the C Taxes and
S Taxes, in each case calculated for the tax periods or portions thereof
beginning on or after the Base Date in 2006, and through the end of the
calculation period.  Cumulative Cash Flow
Tax Difference shall be the cumulative difference in income tax payments, net
of refunds, between the calculation of the C Taxes and S Taxes in
each case made after the Base Date in 2006 and applicable to earnings of the
Company on and after the Base Date in 2006, or which would be in the case of
C Taxes, or are in the case of S Taxes, immediately due and payable,
contemporaneously with the payment of any Distributions, as defined below. A “Distribution”
for purposes of this Agreement shall mean a dividend, management fee, or any
other form of distribution to The Renco Group, Inc. (“Renco”) or an affiliate
of Renco other than a subsidiary of the Company 
(including a transfer to Renco of assets in any form whether as cash or
other form of value which shall have the effect of reducing the net worth of
the Company), in excess of the Renco Amount (as defined herein), provided that
payments made in respect of any debt to Renco, including, but not limited to,
principal interest and fees thereon, or the preferred stock of the Company,
including, but not limited to, dividends thereon and redemptions thereof, shall
not be a Distribution.  The “Renco Amount”
shall be equal to $2,400,000 per annum, calculated cumulatively from the Base
Date in 2006 plus the amount of accrued management fees at 10/31/06.

(c)   In
connection with the annual audit of the financial statements of the Company,
the Company’s Board of Directors will require that the independent public
accountants issue a special report indicating their agreement with the Tax
Differences.

3.     Net
Worth Appreciation Benefit.  Upon the
termination of your employment by the Company, other than for cause, you shall
be entitled to a net worth appreciation payment (“Payment”)
equal to (A) the product of the Vested Credits and the Net Worth Increment,
as defined below, less (B) the product of the Vested Credits and the
Cumulative Income Statement Tax Difference (the calculation period shall end at
the end of the Company’s fiscal quarter immediately preceding your date of
termination) and excluding such Cumulative Income Statement Tax Difference to
the extent equal to Cumulative Cash Flow Tax Difference utilized in calculating
amounts payable under Paragraph 5(a). 
The “Net Worth Increment” is the amount, if any, by which the
consolidated net worth of the Company and its subsidiaries, as at the end of
its fiscal quarter immediately preceding the date of your termination, exceeds
its consolidated net worth as of the Base Date in the Base Year, provided,
however, that any increase in consolidated net worth resulting from a capital
contribution to the Company or the sale of stock of the

 2
 

 

Company shall be disregarded in calculating Net Worth Increment, and
further provided that preferred stock of the Company and cash payments of
dividends and payments in kind thereon shall be treated as debt of the Company
for purposes of calculating consolidated net worth.  For clarity, it is understood that the Net
Worth Increment will not include charges or benefits for interest on the
restructured debt of the Company to the extent not included as interest expense
or income under GAAP as accounted for under FAS 15, nor will the Tax
Differences include any benefit or charge for such interest on such
restructured debt.  The determination of
the independent public accountants for the Company as to the Net Worth
Increment, made in accordance with generally accepted accounting principles,
consistently applied, shall be conclusive on each of us.  If there is no Net Worth Increment, no amount
shall be payable.  If your employment is
terminated for cause, you shall not be entitled to receive any Payment.  Any termination referred to in this Agreement
shall mean separation from service from all members of The Renco Group, Inc.
corporate controlled group (within the meaning of Internal Revenue Code
sections 414(b), (c), (m), and (o)).

4.     Payment.  The Payment shall be payable to you (or your
designee or estate) in 40 equal quarterly installments, without interest,
commencing three months after the termination of your employment, and at 3
month intervals thereafter. 
Notwithstanding any provision in this Agreement, the Company shall not
be required to pay you (i) any Payment, where the making of such Payment would
violate any agreement between the Company and any lender of the Company, or
(ii) in the event that any agreement between the Company and any lender of the
Company limits the aggregate amount that the Company may pay as bonuses, net
worth appreciation payments, profit sharing payments or other payments of
similar nature (“Restricted Payments”) during any period, any Payment in excess
of your pro rata portion of the aggregate amount of applicable Restricted
Payments which the Company is permitted to pay. 
In the event that the Company is unable to make a Payment due to the preceding
sentence, the Company’s obligation to make such Payment shall be deferred until
such time that the Company is permitted to make such Payment pursuant to the
preceding sentence.

5.     Dividends;
Sale of Substantially All of the Company’s Stock or Assets.

(a)   If
and in the event that the Company shall make a Distribution while you shall be
employed by the Company, then you shall be entitled to receive, as additional
compensation, (“Additional Compensation Benefit”) an amount equal to
(A) the excess of  (i) the product
of the Maximum Credit and the cumulative Distributions paid by the Company
subsequent to the Base Date in the Base Year over (ii) the product of the
Maximum Credit and any positive Cumulative Cash Flow Tax Difference less
(B) the amount of Additional Compensation Benefit previously paid to you
subsequent to the Base Date in the Base Year. 
This provision shall not apply to intercompany payments among the
Company and its own wholly-owned subsidiaries or among two wholly-owned
subsidiaries of the Company, or to reimbursement to Renco for a proportionate
part of costs, such as audit charges and insurance premiums, paid by Renco on
behalf of itself and its subsidiaries, including the Company.

(b)   If,
while you shall be employed by the Company (and whether before or after the
Base Date in 2009), all or substantially all the stock or assets of the Company
shall be sold to a person who is not an affiliate of Ira Leon Rennert, or if
The Renco Group, Inc. sells a controlling interest in the Company, then, upon
the closing of such sale, your full Maximum Credit shall be deemed to be
vested, and you shall be entitled to receive, in kind and on the same terms and
conditions as the Company or its shareholder is being

 3
 

 

paid as payment in full of your participation,
an amount equal to (A) the product of the Maximum Credit and any Net Proceeds
(as defined below) of the sale, plus (B) the product of the Maximum Credit and
the cumulative Distributions paid by the Company subsequent to the Base Date in
the Base Year, less (C) the product of the Maximum Credit and the
Cumulative Income Statement Tax Difference through the date of sale, and less
(D) the amount of any Additional Compensation Benefit previously paid to
you subsequent to the Base Date in the Base Year.  “Net Proceeds”, for purposes hereof, shall be
equal to the amount, if any, of the proceeds of the sale after deducting all
expenses of the sale, all applicable federal, state and local taxes, all
liabilities retained by the seller, and all amounts paid or due to holders of
the Company’s preferred stock. Except for such payment, neither you nor the
Company shall have any further rights or liabilities hereunder.

6.     Condition
Precedent. The Company’s obligation to make the Payment to you shall be
conditioned on your faithful adherence to your employment arrangements with the
Company and on your refraining from engaging, during the period over which such
payments are to be made to you, directly or indirectly in any activity which is
competitive with the business engaged in by the Company at the date of
termination of your employment.  If you
do engage in any such competitive activities, then we shall no longer be
obligated to make any payments to you hereunder.

7.     Notice.  Any notices to be sent pursuant hereto shall
be sent by hand, certified or registered mail or overnight service to you, at
the address indicated above and a copy to The Renco Group, Inc. at
30 Rockefeller Plaza, New York, NY 10112, 42nd floor, to the attention of Ira Leon
Rennert, or to any other address which the Company or Renco may designate by
notice in writing.

Please confirm
that the foregoing correctly sets forth our full agreement with respect to your
net worth appreciation benefit by signing and returning the enclosed copy of
this letter.

	
  

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Doe Run Resources Corporation.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Ira Leon
  Rennert

  
	
   

  	
   

  	
  Ira Leon Rennert

  
	
   

  	
   

  	
  Chairman of the
  Board

  

Accepted and Agreed to:

	
  /s/ Theodore P. Fox, III

  	
   

  
	
  Theodore P. Fox

  

 

 4

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