Document:

exv10w1

 

Exhibit 10.1   

February 27, 2007

Mr. Richard F. Pops

Re:   Your employment agreement with Alkermes, Inc. dated February 7, 1991

Dear Richard,

This letter agreement (the “Agreement”) serves as an amendment to and replacement of your
employment agreement with Alkermes, Inc. (the “Company”) dated February 7, 1991 (the “1991
Agreement”) and contains terms and conditions approved by the Compensation Committee of the
Company.

The 1991 Agreement will be modified as follows commencing April 1, 2007:

1.      Position and Duties. The title of your position will be Chairman of the Board of
Directors of the Company. You will be responsible for oversight of strategic issues affecting the
Company and maintaining key relationships in the industry. In addition, during the initial year of
the term of this Agreement (as defined below), you will dedicate the time and resources necessary
to ensure a smooth transition to the individual taking on the role of CEO of the Company.

2.      Compensation and Related Matters.

               (a)      The term of this Agreement shall extend from April 1, 2007 (the “Commencement Date”) until
the third anniversary of the Commencement Date (the “term of this Agreement”). During the term of
this Agreement, you will be compensated at your existing salary (adjusted annually to account for
inflation) and continue to be eligible for all your current employee benefits, including
participation in the Company 401K, health and dental plans and long-term disability and life
insurance.

               (b)      For a period of one year, you will be eligible to receive your current target bonus under
the Company named-executive bonus plan and restricted stock commensurate with recent equity awards
based on performance criteria to be determined by the Compensation Committee of the Board.
Thereafter, any bonus and/or equity award would be based on criteria established by the
Compensation Committee of the Board.

3.      Termination. Your employment may be terminated without any breach of this Agreement in
the following circumstances:

               (a)      Death. Your employment hereunder will terminate upon your death.

               (b)      Disability. If you become disabled and are unable to perform the essential
functions of your position under this Agreement, the Board may remove you from your
responsibilities. Notwithstanding any such removal or reassignment, you shall continue to receive
your full base salary (less any disability pay or sick pay benefits to which you may be entitled
under the Company’s policies) and benefits (except to the extent that you may be ineligible for one
or more such benefits under the applicable plan terms) for a period of time equal to the lesser of
(i) six (6) months or (ii) the balance of the term of this Agreement, and your employment may be
terminated by the Company at any time thereafter. Nothing in this Subparagraph 4(b) shall be
construed to waive your rights, if any, under existing law including, without limitation, the
Family and Medical Leave Act of 1993, 29 U.S.C. §2601 et seq. and the Americans with Disabilities
Act, 42 U.S.C. §12101 et seq.

               (c)      Termination by Company for Cause. At any time during the term of this Agreement,
the Company may terminate your employment hereunder for Cause if such termination is approved by
not less than a majority of the Board at a meeting of the Board at which you would not participate
called and held for such purpose. For purposes of this Agreement, “Cause” shall mean: (A) conduct
constituting a material act of willful misconduct in connection with the performance of your
duties; (B) commission of a felony or any misdemeanor involving moral turpitude, deceit, dishonesty
or fraud, or conduct that would reasonably be expected to result in material injury to the

 

 

Company; (C) continued, willful and deliberate non-performance of duties hereunder (other than
by reason of your physical or mental illness, incapacity or disability) which has continued for
more than thirty (30) days following written notice of such non-performance from the Board; (D) a
violation of the Company’s employment policies which has continued following written notice of such
violation from the Board, or (E) willful failure to cooperate with a bona fide internal
investigation or an investigation by regulatory or law enforcement authorities, after being
instructed by the Company to cooperate, or the willful destruction or failure to preserve documents
or other materials known to be relevant to such investigation or the willful inducement of others
to fail to cooperate or to produce documents or other materials.

               (d)      Termination Without Cause. At any time during the term of the Agreement, the
Company may terminate your employment hereunder without Cause if such termination is approved by a
majority of the Board (excluding yourself) at a meeting of the Board called and held for such
purpose. Any termination by the Company of your employment under this Agreement which does not
constitute a termination for Cause under Subparagraph 3(c) or result from the death or disability
under Subparagraph 3(a) or (b) shall be deemed a termination without Cause.

               (e)      Termination by You. At any time during the term of this Agreement, you may
terminate your employment hereunder for any reason, including but not limited to Good Reason. For
purposes of this Agreement, “Good Reason” shall mean that you have complied with the “Good Reason
Process” following the occurrence of any of the following events: (A) a substantial diminution or
other substantive adverse change, not consented to by you, in the nature or scope of your
responsibilities, authorities, powers, functions or duties; (B) any removal, during the term of
this Agreement, of your title that you do not consent to; (C) an involuntary reduction in your base
salary except for across-the-board reductions similarly affecting all or substantially all
management employees; (D) a breach by the Company of any of its other material obligations under
this Agreement, or (E) the involuntary relocation of the Company’s offices at which you are
principally employed to a location more than thirty (30) miles from such offices, or the
requirement by the Company that you be based anywhere other than the Company’s offices on an
extended basis. “Good Reason Process” shall mean that (i) you reasonably determine in good faith
that a “Good Reason” event has occurred; (ii) you notify the Company in writing of the occurrence
of the Good Reason event; (iii) you cooperates in good faith with the Company’s efforts, for a
period not less than thirty (30) days following such notice, to modify your employment situation in
a manner acceptable to you and the Company; and (iv) notwithstanding such efforts, one or more of
the Good Reason events continues to exist and has not been modified in a manner acceptable to you.
If the Company cures the Good Reason event in a manner acceptable to you during the thirty (30) day
period, Good Reason shall be deemed not to have occurred.

               (f)      Notice of Termination. Except for termination as specified in Subparagraph 3(a),
any termination of your employment by the Company or any such termination by you shall be
communicated by written Notice of Termination to the other party hereto. For purposes of this
Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific
termination provision in this Agreement relied upon.

               (g)      Date of Termination. “Date of Termination” shall mean: (A) if your employment is
terminated by your death, the date of your death; (B) if your employment is terminated on account
of disability or by the Company for Cause, the date on which Notice of Termination is given; (C) if
your employment is terminated by the Company under Subparagraph 3(d), thirty (30) days after the
date on which a Notice of Termination is given; and (D) if your employment is terminated by you
under Subparagraph 3(e), thirty (30) days after the date on which a Notice of Termination is given.

4.      Compensation Upon Termination.

               (a)      Termination Generally. If your employment with the Company is terminated for any
reason during the term of this Agreement, the Company shall pay or provide to you any earned but
unpaid base salary, incentive compensation earned but not yet paid, unpaid expense reimbursements,
accrued but unused vacation and any vested benefits you may have under any employee benefit plan of
the Company (the “Accrued Benefit”)

               (b)      Termination by the Company Without Cause or by You with Good Reason. If your
employment is terminated by the Company without Cause, or you terminate your employment for Good
Reason,

 

 

during the term of this Agreement, then the Company shall pay you your Accrued Benefit. In
addition, subject to your signing a general release of claims in a form and manner satisfactory to
the Company,

                    (i)      the Company shall pay you an amount equal to two times your Average Compensation (the
“Severance Amount”). The Severance Amount shall be paid out in substantially equal bi-weekly
installments over twenty-four months, in arrears. For purposes of this Agreement, “Average
Compensation” shall mean (i) the average of your base salary in effect as of the date of the
Notice of Termination and your prior year’s base salary plus (ii) the average of your bonus under
the Company named-executive bonus plan for the prior two fiscal years; and

                    (ii)     subject to your co-payment of premium amounts at the active employees’ rate, you shall be
entitled to continued participation in the Company’s group health, dental and vision program for
eighteen (18) months (continuation of health benefits under this Subparagraph shall reduce and
count against your rights under the Consolidated Omnibus Budget Reconciliation Act of 1985, as
amended (“COBRA”)), and continued life and long term disability insurance for twenty-four months;
and

                    (iii)    anything in this Agreement to the contrary notwithstanding, if at the time of your
termination of employment you are considered a “specified employee” within the meaning of Section
409A(a)(2)(B)(i) of the Internal Revenue Code of 1986, as amended (the “Code”), and if any payment
that you become entitled to under this Agreement is considered deferred compensation subject to
interest and additional tax imposed pursuant to Section 409A(a) of the Code as a result of the
application of Section 409A(a)(2)(B)(i) of the Code, then no such payment shall be payable prior to
the date that is the earliest of (i) six months after your Date of Termination, (ii) your death, or
(iii) such other date as will cause such payment not to be subject to such interest and additional
tax, and the initial payment shall include a catch-up amount covering amounts that would otherwise
have been paid during the first six-month period but for the application of this Subparagraph
4(b)(iii).

5.      Litigation and Regulatory Cooperation. During and after your employment, you will
cooperate fully with the Company in the defense or prosecution of any claims or actions now in
existence or which may be brought in the future against or on behalf of the Company which relate to
events or occurrences that transpired while you were employed by the Company. Your full
cooperation in connection with such claims or actions shall include, but not be limited to, being
available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf
of the Company at mutually convenient times. During and after your employment, you also shall
cooperate fully with the Company in connection with any investigation or review of any federal,
state or local regulatory authority as any such investigation or review relates to events or
occurrences that transpired while you were employed by the Company. The Company shall reimburse
you for any reasonable out-of-pocket expenses incurred in connection with your performance of such
obligations.

6.      Integration. This Agreement constitutes the entire agreement between you and the
Company with respect to the subject matter hereof and supersedes all prior agreements between us,
including the 1991 Agreement, with respect to any related subject matter, other than the Change in
Control Employment Agreement dated December 19, 2000.

7.      Enforceability. If any portion or provision of this Agreement shall to any extent
be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of
this Agreement, or the application of such portion or provision in circumstances other than those
as to which it is so declared illegal or unenforceable, shall not be affected thereby, and each
portion and provision of this Agreement shall be valid and enforceable to the fullest extent
permitted by law.

8.      Waiver. No waiver of any provision hereof shall be effective unless made in writing and
signed by the waiving party. The failure of any party to require the performance of any term or
obligation of this Agreement, or the waiver by any party of any breach of this Agreement, shall not
prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any
subsequent breach.

9.      Notices. Any notices, requests, demands and other communications provided for by this
Agreement shall be sufficient if in writing and delivered in person or sent by overnight courier or
by registered or certified mail, postage prepaid, return receipt requested, to you at the address
you have on file with the Company or, in the case of

 

 

the Company, at its main offices, attention of the Chief Executive Officer, and shall be effective
on the date of delivery in person or by courier or three (3) days after the date mailed.

10.      Amendment. This Agreement may be amended or modified only by a written instrument
signed by you and by a duly authorized representative of the Company.

11.      Governing Law. This is a Massachusetts contract and shall be construed under and be
governed in all respects by the laws of the Commonwealth of Massachusetts, without giving effect to
the conflict of laws principles of such Commonwealth. With respect to any disputes concerning
federal law, such disputes shall be determined in accordance with the law as it would be
interpreted and applied by the United States Court of Appeals for the First Circuit.

12.      Change in Control Payments. Notwithstanding anything in this letter to the contrary,
in the event that your employment terminates under circumstances that would entitle you to
severance payments under the Change in Control Employment Agreement dated December 19, 2000 entered
into between the Company and you, you may elect to collect severance under either this Agreement or
the Change in Control Employment Agreement, but not both. Nothing herein shall be interpreted to
affect your rights to receive gross-up payment pursuant to Section 10 of the Change in Control
Employment Agreement.

	 	 	 	 	 
	 	Sincerely,

ALKERMES, INC.

 	 
	 	/s/ Michael J. Landine
 	 
	 	 	 
	 	By: Michael J. Landine

Vice President, Corporate Development 	 
	 

Agreed and Accepted this 27th day of February, 2007:

	 	 	 	 	 
	 	 	 
	/s/ Richard F. Pops
 	 	 
	Richard F. PopsSEPARATION AGREEMENT
	 

	 
		 
	 

	 
		           This
		Separation Agreement is made this 30th day of June, 2006 between
		Nalco Company for itself and on behalf of its affiliates (collectively the
		“Company” or “Nalco”) and Philippe F. Creteur,
		(“Mr. Creteur”).
	 

	 
		 
	 

	 
		Recitals
	 

	  

	 
		 
	 

	 
		                Mr. Creteur’s
		employment with the Company will be terminated on July 31, 2006.
	 

	 
		                Mr. Creteur
		entered into a Severance Agreement with the Company with effective date of
		January 1, 2004 (the “Severance Agreement”), a copy of which is
		attached as Attachment 1.
	 

	 
		 
	 

	 
		                Mr. Creteur
		entered into a Management Members Agreement with Nalco LLC, an indirect parent
		of Nalco, on or about June 30, 2004, a copy of which is attached as Attachment
		2, pursuant to which Mr. Creteur was given the opportunity to invest in
		certain equity ownership units in Nalco LLC (the “Management Members
		Agreement”).
	 

	 
		 
	 

	 
		                Terms
		not otherwise defined in this Agreement shall have the meanings indicated in
		the Severance Agreement.
	 

	 
		 
	 

	 
		Agreement
	 

	 
		 
	 

	 
		Accordingly, Mr. Creteur and Nalco
		agree as follows:
	 

	 
		 
	 

	 
			
				
				  1.
				

			 	
				
				  Termination of Employment and
				  Severance Agreement
				

			 

 

	 
		 
	 

	 
		Effective July 31, 2006, Mr. Creteur
		will be terminated from all positions held by him as an officer, employee or
		director of Nalco, and all of its subsidiaries and affiliates. Mr. Creteur
		shall execute any requested forms to resign from such positions. The terms and
		conditions of the Severance Agreement are incorporated herein by reference.
		
	 

	 
		 
	 

	 
			
				
				  2.
				

			 	
				
				  Separation Benefits
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				  a.
				

			 	
				
				  Mr. Creteur and Nalco LLC will
				  separately enter into an amendment of the Management Members Agreement. This
				  Agreement is conditioned upon the parties executing the described amendment to
				  the Management Members Agreement. 
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				  b.
				

			 	
				
				  The Company shall pay
				  Mr. Creteur a cash severance amount of USD 20,050.
				

			 

 

	 
		 
	 

	 
	 

	 

	 
	 

	 
			
				
				   
				

			 	
				
				  c.
				

			 	
				
				  The Company shall reimburse
				  Mr. Creteur for housing through November 1, 2006 and storage through
				  November 1, 2006, such amounts not to exceed USD 25,120.
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				  d.
				

			 	
				
				  The Company will continue
				  Mr. Creteur’s current medical and dental coverage for the period
				  through July 31, 2007 at current cost.
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				  e.
				

			 	
				
				  The Company will reimburse tax
				  assistance for Mr. Creteur up to a cap of USD 5,000.
				

			 

 

	 
		 
	 

	 
			
				
				  3.
				

			 	
				
				  Waiver of Severance Benefit under
				  Severance Agreement
				

			 

 

	 
		 
	 

	 
		Mr. Creteur waives and releases any and
		all claim he has to the severance benefits under Section 3(a) of the Severance
		Agreement and further waives and releases any and all other claims he has to
		severance payments or severance benefits from Nalco or any of its affiliates
		and any housing benefits not specifically stated herein. 
	 

	 
		 
	 

	 
		All other terms and conditions in the
		Severance Agreement not modified by this Separation Agreement shall remain in
		effect and enforceable.
	 

	 
		 
	 

	 
			
				
				  4.
				

			 	
				
				  Reconciliation of Expense
				  Reports, Travel Advances, Credit Card Charges, and Other Obligations

				

			 

 

	 
		 
	 

	 
		If he has not already done so, by August 10,
		2006, Mr. Creteur will deliver to Nalco a final written report and
		reconciliation of all outstanding travel advances and charges made against
		credit cards issued to Mr. Creteur by or on behalf of Nalco.
		Mr. Creteur shall identify those portions of advances and charges which
		were devoted to personal use and those portions that were devoted to the
		business purposes of Nalco. For the portions devoted to Nalco’s business
		purposes, Mr. Creteur will provide all of the information normally
		provided under Nalco’s practices and procedures, with appropriate
		receipts.
	 

	 
		 
	 

	 
		Mr. Creteur will also provide a
		detailed statement of all business expenses which Mr. Creteur claims
		Mr. Creteur incurred for Nalco’s business purposes which have not
		been reimbursed.
	 

	 
		 
	 

	 
		If the final report of business expenses,
		use of travel advances, and credit card charges reveals Mr. Creteur owes
		Nalco money, the sum owing shall be deducted from severance payments. If the
		report reveals Nalco owes Mr. Creteur money, the sum owing shall be
		promptly paid by check. 
	 

	 
		 
	 

	 
		By filing Mr. Creteur’s final
		report of business expenses, expenditure of travel advances, and credit card
		charges, Mr. Creteur warrants the accuracy of the report and also that
		there are no further credit card charges or business expenses (except 
	 

	 
		 
	 

	 
	 

	 

	 
		minor telephone charges). Nalco shall not
		reimburse any subsequently reported expenses. 
	 

	 
		 
	 

	 
		If Mr. Creteur has an unpaid obligation
		to Nalco arising from a loan, cash advance, overpayment, or other obligation,
		Mr. Creteur authorizes Nalco to deduct the outstanding debt or obligation
		from Mr. Creteur’s net (after withholding taxes and any other
		withholding obligations) severance pay. 
	 

	 
		 
	 

	 
		Mr. Creteur agrees to immediately
		return all Nalco property to Nalco.
	 

	 
		 
	 

	 
		 
	 

	 
			
				
				  5. 
				

			 	
				
				  General Release and Covenant Not
				  to Sue
				

			 

 

	 
		 
	 

	 
		In consideration of Nalco’s promises
		under this Separation Agreement, Mr. Creteur individually, and
		Mr. Creteur’s successors, assigns, heirs, and agents, and each and
		all of them, hereby unconditionally and forever release, acquit, and discharge
		Nalco, its parents (including Nalco LLC), subsidiaries and affiliates, and each
		of their respective officers, directors, stockholders, employees, agents, and
		attorneys from any and all claims, demands, liabilities, and causes of action
		of every kind, nature and description whatsoever whether known or unknown, or
		suspected to exist, which Mr. Creteur ever had or may now have up to the
		date of signing this Agreement, against Nalco, or any of them, including, any
		claim arising out of or relating to (i) any aspect of Mr. Creteur’s
		employment with Nalco, including the termination of such employment; (ii) any
		federal, state, local or other government statute, regulation or ordinance of
		any country, including but not limited to the following US laws, Title VII of
		the Civil Rights Act of 1964, as amended, the Civil Rights Act of 1991, the Age
		Discrimination in Employment Act, 29 U.S.C. sec. 621 et. seq. as amended by the
		Older Workers’ Benefit Protection Act of 1990, the Americans with
		Disabilities Act, the Family and Medical Leave Act, the Employee Retirement
		Income Security Act, and the Rehabilitation Act of 1973, The Worker Adjustment
		and Retraining Notification Act and (iii) the common law of the jurisdiction
		wherein Mr. Creteur resides or any other jurisdiction, including without
		limitation, intentional infliction of emotional distress, breach of contract
		and any claims for consequential and/or punitive damages for any reason. It is
		the intention of Mr. Creteur that in executing this Agreement
		Mr. Creteur is providing a General Release and that it shall be an
		effective bar to each and every claim, demand and cause of action, either known
		or unknown, for all acts, or omissions of Nalco occurring prior to and up to
		the date this Agreement is executed. This release includes but is not limited
		to:
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				  -
				

			 	
				
				  any claims for assault, battery,
				  wrongful termination, defamation, invasion of privacy, intentional infliction
				  of emotional distress, or any other tort or common law claims;
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				   
				

			 	
				
				  -
				

			 	
				
				  any claim to challenge the
				  enforceability of any provision of the Severance Agreement, including but not
				  limited to the noncompetition, nondisclosure, and nonsolicitation provisions in
				  the Severance Agreement;
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				  -
				

			 	
				
				  any claims for the breach of any
				  written, implied or oral contract;
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				  -
				

			 	
				
				  any claims of discrimination,
				  harassment or retaliation based on such things as age, national origin,
				  ancestry, race, religion, sex (including sexual harassment), sexual
				  orientation, or physical or mental disability or medical condition or any other
				  protected status;
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				  -
				

			 	
				
				  any claims for benefits or monetary
				  equivalent of benefits except as provided in this Agreement; and
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				  -
				

			 	
				
				  any entitlement to reinstatement
				  with or rehire or reemployment by Nalco.
				

			 

 

	 
		 
	 

	 
		Also waived are any rights to
		attorneys’ fees, compensation or other recovery as the result of any legal
		action brought by Mr. Creteur or on Mr. Creteur’s behalf by any
		other party, based on any right Mr. Creteur has released and waived under
		this Separation Agreement. Excepted from this release are claims challenging
		the validity of this Separation Agreement under the Age Discrimination in
		Employment Act. Mr. Creteur’s release under the Age Discrimination in
		Employment Act does not apply to any claims that arise or may arise based on
		events that take place after the date Mr. Creteur signs this Agreement.
		Also not released are any claims Mr. Creteur may have for a) Worker’s
		Compensation benefits, b) accrued wages, accrued but unused vacation pay, and
		accrued commissions, if any, up to the date of termination, c) any vested
		pension benefits, or d) any right to unemployment benefits.
	 

	 
		 
	 

	 
		Mr. Creteur agrees never to institute
		any charge, lawsuit, complaint, proceeding, grievance or action of any kind (at
		law, in equity or otherwise) in any state or federal court, or in any other
		public or private tribunal, against Nalco on any grounds, for any occurrence
		from the beginning of time to the effective date of this Agreement. The only
		exception to this covenant not to sue is a claim that challenges the validity
		of this Separation Agreement and alleges age discrimination. If
		Mr. Creteur sues Nalco in violation of this Separation Agreement, then
		Mr. Creteur shall be liable for Nalco’s actual attorneys’ fess
		and other litigation costs incurred in defending such matter.
	 

	 
		 
	 

	 
			
				
				  6. 
				

			 	
				
				  Confidentiality and
				  Covenants
				

			 

 

	 
		 
	 

	 
		Mr. Creteur agrees not to disclose any
		of the terms of this Separation Agreement to anyone, other than
		Mr. Creteur’s spouse, attorney, and accountant or as required by law.
		Mr. Creteur may disclose the terms of this Separation Agreement to them
		only upon the understanding they shall be bound not to 
	 

	 
		 
	 

	 
	 

	 

	 
		disclose the terms to anyone else. Before
		disclosing these terms to them, Mr. Creteur shall inform them of their
		confidentiality obligations. Similarly, Nalco’s directors, officers and
		other employees are not authorized, except as required by law, to disclose any
		of the terms of this Separation Agreement to any party outside Nalco (other
		than Nalco’s attorneys and auditors) or to other officers or employees of
		Nalco except as necessary in connection with the performance of their duties to
		Nalco.
	 

	 
		 
	 

	 
		Disclosure of the terms of this Separation
		Agreement by anyone to whom Mr. Creteur discloses them shall be deemed an
		unauthorized disclosure by Mr. Creteur.
	 

	 
		 
	 

	 
		In exchange for the consideration hereunder,
		for a period of two (2) years beginning on September 30, 2006, (i)
		Mr. Creteur shall not, within any jurisdiction or marketing area in which
		the Company (or its subsidiaries (as such term is defined below)) is doing
		business, directly or indirectly, own, manage, operate, control, consult with,
		be employed by, or participate in the ownership, management, operation or
		control of any business of the type and character engaged in or competitive
		with that conducted by the Company (or its subsidiaries); (ii) Mr. Creteur
		shall not, directly or indirectly, employ, solicit for employment or otherwise
		contract for the services of any individual who is an employee of the Company
		(or its subsidiaries and affiliates (as such term is defined below)) at the
		time of this Agreement or who shall subsequently become an employee of the
		Company (or its subsidiaries and affiliates).
	 

	 
		 
	 

	 
		(a) Mr. Creteur will not divulge,
		transmit or otherwise disclose (except as legally compelled by court order, and
		then only to the extent required, after prompt notice to the Company of any
		such order), directly or indirectly, other than in the regular and proper
		course of business of the Company, any confidential knowledge or information
		with respect to the operations, finances, organization or employees of the
		Company (or its Subsidiaries and Affiliates) or with respect to trade secrets,
		confidential or secret processes, services, techniques, product formulations,
		customer information, marketing or business plans with respect to the Company
		(or its Subsidiaries and Affiliates); and (ii) Mr. Creteur will not use,
		directly or indirectly, any confidential information for the benefit of anyone
		other than the Company (or its Subsidiaries and Affiliates); provided, however, that Mr. Creteur has no obligation, express or
		implied, to refrain from using or disclosing to others any such knowledge or
		information which is or hereafter shall become available to the public other
		than through disclosure by Mr. Creteur. All new processes, techniques,
		know-how, inventions, plans, products, patents and devices developed, made or
		invented by Mr. Creteur, alone or with others, while an employee of the
		Company which are related to the business of the Company (or its subsidiaries
		and affiliates) shall be and become the sole property of the Company, unless
		released in writing by the Company, and Mr. Creteur hereby assigns any and
		all rights therein or thereto to the Company. All files, records,
		correspondence, memoranda, notes or other documents (including, without 

	 

	 
		 
	 

	 
	 

	 

	 
		limitation, those in computer-readable form)
		or property relating or belonging to the Company, whether prepared by
		Mr. Creteur or otherwise coming into his possession in the course of the
		performance of his services under this Agreement, shall be the exclusive
		property of Company and shall be delivered to Company and not retained by
		Mr. Creteur (including, without limitations, any copies thereof) upon
		termination of this Agreement for any reason whatsoever.
	 

	 
		 
	 

	 
		Mr. Creteur will communicate and
		disclose in writing to the Company all inventions, discoveries, improvements,
		machines, devices, designs, processes, products, software, treatments,
		formulae, mixtures and/or compounds whether patentable or not as well as
		patents and patent applications made, conceived, developed or acquired by
		Mr. Creteur or under which Mr. Creteur acquired the right to grant
		licenses or become licensed, whether alone or jointly with others, during his
		employment with the Company (all collectively referred to as
		“Inventions”). All of Mr. Creteur’s right, title and
		interest in, to and under such Inventions, including licenses and right to
		grant licenses are the sole property of the Company and the same are hereby
		assigned to the Company. Any Invention disclosed by Mr. Creteur to anyone
		within one (1) year after September 30, 2006, which relates to any matters
		pertaining to, applicable to, or useful in connection with, the business of the
		Company shall be deemed to have been made or conceived or developed by
		Mr. Creteur during his employment with the Company.
	 

	 
		 
	 

	 
		For all of Mr. Creteur’s
		Inventions, Mr. Creteur will execute and deliver all documents which the
		Company shall deem necessary or appropriate to assign, transfer and convey to
		the Company, all of Mr. Creteur’s right, title, interest in and to
		such Inventions, and enable the Company to file and prosecute applications for
		Letters Patent of the United States and any foreign countries on Inventions as
		to which the Company wishes to file patent applications; and do all other
		things (including the giving of evidence in suits and other proceedings) which
		the Company shall deem necessary or appropriate to obtain, maintain, and assert
		patents for any and all such Inventions and to assert its rights in any
		Inventions not patented.
	 

	 
		 
	 

	 
		Mr. Creteur hereby assigns to the
		Company the copyright in all works prepared by Mr. Creteur which are or
		were either within the scope of Mr. Creteur’s employment with the
		Company; or, based upon information acquired from the Company not
		normally made available to the public; or, commissioned by the Company but not
		within Mr. Creteur’s scope of employment.
	 

	 
		 
	 

	 
		Mr. Creteur also agrees to do all
		things (including the giving of evidence in suits and other proceedings) which
		the Company shall deem necessary or appropriate to obtain, maintain, and enable
		the Company to protect its rights in and to such works.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		Mr. Creteur hereby releases and allows
		the Company to use, for any lawful purpose, any voice reproduction, photograph,
		or other video likeness of Mr. Creteur made in the scope of
		Mr. Creteur’s employment.
	 

	 
		 
	 

	 
		All expenses incident to any action required
		by the Company to assign Inventions or copyrights to the Company or so taken in
		its behalf pursuant to the terms of this Agreement shall be borne by the
		Company, including a reasonable payment for Mr. Creteur’s time and
		expenses involved if not then in the Company’s employ. 
	 

	 
		 
	 

	 
		Mr. Creteur acknowledges that a breach
		of his covenants contained herein may cause irreparable damage to the Company
		(its subsidiaries and affiliates), the exact amount of which will be difficult
		to ascertain, that the remedies at law for any such breach will be inadequate
		and that the payments and other benefits, in the Severance Agreement and this
		Separation Agreement, are additional consideration for the covenants contained
		herein. Accordingly, Mr. Creteur agrees that if he breaches any of the
		covenants contained herein, in addition to any other remedy which may be
		available at law or in equity, the Company shall be entitled to specific
		performance and injunctive relief. In addition, the breach of any of the
		covenants contained herein shall entitle the Company to permanently withhold,
		and, if applicable, to recover from Mr. Creteur any payments, benefits, or
		other entitlements, of any type owed by the Company to Executive under the
		Severance Agreement, this Separation Agreement, any other agreement or plan
		irrespective of whether the covenants in this Separation Agreement or the
		Severance Agreement are deemed enforceable by a court. The Company and
		Mr. Creteur further acknowledge that the time, scope, geographic area and
		other provisions herein have been specifically negotiated by sophisticated
		commercial parties and agree that all such provisions are reasonable under the
		circumstances of the activities contemplated by this Agreement. In the event
		that the covenants herein shall be determined by any court of competent
		jurisdiction to be unenforceable by reason of their extending for too great a
		period of time or over too great a geographical area or by reason of their
		being too extensive in any other respect, they shall be interpreted to extend
		only over the maximum period of time for which they may be enforceable and/or
		over the maximum geographical area as to which they may be enforceable and/or
		to the maximum extent in all other respects as to which they may be
		enforceable, all as determined by such court in such action.
	 

	 
		 
	 

	 
		Mr. Creteur agrees to cooperate with
		the Company during his employment hereunder and thereafter (including following
		Mr. Creteur’s termination of employment for any reason), by making
		himself reasonably available to testify on behalf of the Company in any action,
		suit, or proceeding, whether civil, criminal, administrative, or investigative,
		and to assist the Company, in any such action, suit, or proceeding, by
		providing information and meeting and consulting with the Company’s Board
		of Directors or its representatives or counsel, or representatives or counsel
		to the Company, as reasonably requested; provided, however that the same does not materially interfere with his
		then current professional activities or 
	 

	 
		 
	 

	 
	 

	 

	 
		important personal activities and is not
		contrary to the best interests of Mr. Creteur. The Company agrees to
		reimburse Mr. Creteur, on an after-tax basis, for all expenses including
		pre-approved legal expenses, actually incurred in connection with his provision
		of testimony or assistance.
	 

	 
		 
	 

	 
		Mr. Creteur will not make statements or
		representations, or otherwise communicate, directly or indirectly, in writing,
		orally, or otherwise, or take any action which may, directly or indirectly,
		disparage the Company, its subsidiaries or its or their respective officers,
		directors, employees, advisors, businesses or reputations. The Company agrees
		that it shall advise the members of the Board of Directors and its senior
		officers not to disparage Mr. Creteur and the Company shall use its
		reasonable business efforts to prevent them from doing so; provided, however, the Company’s obligations to Mr. Creteur in
		the immediately preceding sentence shall not apply to any oral, written or
		electronic statements, representations or other communications made internally
		at the Company by any member of the Board of Directors or any of the
		Company’s senior officers if such oral, written or electronic statements,
		representations or other communications are made by any of the foregoing
		individuals in the course of such individual’s duties, responsibilities or
		obligations to the Company. Notwithstanding the foregoing, nothing in this
		Agreement shall preclude Mr. Creteur or a representative of the Company
		from making truthful statements or disclosures that are required by applicable
		law, regulation or legal process.
	 

	 
		 
	 

	 
			
				
				  7. 
				

			 	
				
				  Additional Provisions
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				  A.
				

			 	
				
				  Mr. Creteur acknowledges and
				  agrees that:
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				  -
				

			 	
				
				  Mr. Creteur is entering into
				  this Agreement knowingly and voluntarily and of Mr. Creteur’s own
				  free will and not because of any threats or duress;
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				  -
				

			 	
				
				  Mr. Creteur has been advised by
				  this Agreement to consult with an attorney before signing this
				  Agreement;
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				  -
				

			 	
				
				  Mr. Creteur has read this
				  Agreement and understands its provision, including that a portion of the
				  consideration being paid by Nalco is for a release of any rights or claims
				  under the Age Discrimination in Employment Act:
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				  -
				

			 	
				
				  Mr. Creteur understands that
				  Mr. Creteur may take up to 21 days to consider this Agreement before
				  signing it;
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				  -
				

			 	
				
				  After Mr. Creteur signs this
				  Agreement, Mr. Creteur will have 7 days to revoke it;
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				   
				

			 	
				
				  -
				

			 	
				
				  If Mr. Creteur wants to revoke
				  it, Mr. Creteur must deliver a written notice of revocation to
				  Ms. Mary Manupella at Nalco headquarters in Naperville, IL. If
				  Mr. Creteur does not revoke it within 7 days after having signed it, this
				  Agreement will become final between and enforceable by the parties; and
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				  -
				

			 	
				
				  If Mr. Creteur chooses to
				  revoke this Agreement within 7 days after Mr. Creteur signs it,
				  Mr. Creteur will not receive consideration set forth above, or the other
				  benefits described hereunder. 
				

			 

 

	 
		 
	 

	 
		              Any
		violation by Mr. Creteur of the covenants, commitments, or obligations, in
		this Agreement shall release Nalco from its obligation to provide any other
		benefits promised in this Agreement and shall release any rights in the vesting
		of any units in Nalco LLC. Nalco’s right to withhold benefits and Nalco
		LLC’s right to refuse the vesting of any Nalco LLC units shall be without
		prejudice to any other remedy available to Nalco for breach of this Agreement.
		
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				  B. 
				

			 	
				
				  Mr. Creteur shall not directly
				  or indirectly employ, solicit for employment, or otherwise contract for the
				  services of any individual who is an employee of the Company or its affiliates
				  for a period of 5 years.
				

			 

 

	 
		 
	 

	 
		In Witness Whereof, the parties have
		executed this Agreement on the date indicated:
	 

	 
		 
	 

	 
		 
	 

	 
		NALCO COMPANY
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
			
				
				  By: /S/ Mary
				  Manupella          

				

			 	
				
				  /S/ Philippe F.
				  Creteur          
				

			 
	
				
				  Title: Vice President
				

			 	
				
				  Mr. Philippe F. Creteur

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