Document:

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                                                                    Exhibit 10.8

JIM REID-ANDERSON
President and Chief Operating Officer

                                                                    DADE BEHRING
DADE BEHRING INC.           Tel: +1 (847) 267-5320
1717 Deerfield Road         Fax: +1 (847) 267-1066
P.O. Box 778
Deerfield, IL 60015-0778

CONFIDENTIAL
------------

August 28, 2000

Mr. Jeff Naylor
7598 North Goodrich Square
New Albany
Ohio 43054

Dear Jeff:

It is a pleasure to extend an offer of employment on behalf of Dade Behring Inc.
I am pleased to offer you the position of Senior Vice President and Chief
Financial Officer, reporting directly to me.

The terms of your employment are as follows:

Your employment with Dade Behring will commence on October 2, 2000.

This position is located in Deerfield, Illinois.

Your starting annualized salary will be $385,000 (less required deductions).

You will be eligible to participate in the Dade Behring 2000 Management
Incentive Compensation Plan (MICP). Your MICP bonus target is 50% and maximum is
100% of your annual base salary. The 2000 MICP plan brochure is enclosed for
your reference. For 2000, your annual bonus will be prorated for the portion of
the year that you are employed by Dade Behring.

You will receive a hiring bonus of $163,000 (less required deductions, $100,000
net) payable January 1, 2001. The hiring bonus is taxable income to you and will
be reported on your W2. Please note that in the event you voluntarily resign
from the Company within twenty-four months of your hire date, you will be
required to repay your hiring bonus payment to the Company.
<PAGE>

Mr. Jeff Naylor
Offer Letter
Page 2 of 4

You will also be eligible to participate in the Dade Behring long-term incentive
plan, the plan established by the Board of Directors for senior executives of
the company. Upon acceptance of this employment offer, Dade Behring will
recommend to the Board of Directors that you will be granted 275,000
non-qualified stock options with a strike price of $15.00 per share. This strike
price has been discounted by 10%/$1.55 from the company's June 30, 1999 share
repurchase price of $16.55. These options will vest over a five-year period in
20% increments. The first 20%/55,000 options will vest on July 1, 2001. You will
be provided with additional information, including a plan document and brochure
after formal approval by the Board.

As a member of the Executive Leadership Team, you will be eligible to
participate in Dade Behring's Executive Financial Planning and Legal Services
Program. This Program has been designed to provide you with comprehensive
individual financial consulting, personal tax return preparation assistance and
legal consultation services. The grossed up annual value of this benefit is
approximately $12,750 ($7,500 net) for Financial Planning and $4,250 ($2,500
net) for Legal Services. Attached for your reference is a summary of the
Program.

You will also be entitled to a car allowance of $1,000 per month.

You will be eligible for four weeks of vacation annually under Dade Behring's
executive vacation program.

You will be relocating to the Deerfield, Illinois area and will be entitled to
Dade Behring's executive relocation package. As an exception, your temporary
apartment may be extended up to nine months. All relocation activity should be
completed within one year of the effective date in your new position, however,
Jeff, you and I will assess your relocation status at the one year point and
decide on appropriate next steps. Due to the considerable expenses Dade Behring
incurs when a relocation occurs, you will be required to sign a Relocation
Repayment Agreement. A copy of the program and the relocation repayment
agreement are enclosed for your review.

You and your dependents will be eligible to participate in the various Dade
Behring employee benefit plans. A benefits overview brochure is enclosed for
your review. You will receive Dade Behring Employee Benefit Program enrollment
information from the Employee Benefits Center within one month of your start
date. Should you choose to elect health insurance coverage, it will be effective
on the first of the month following thirty days of employment. Our Human
Resources staff is available to assist you with any questions you may have in
the interim.

This offer, if accepted, would create an employment-at-will relationship between
you and Dade Behring. It is not intended nor should it be construed as a
contract of continued employment.
<PAGE>

Mr. Jeff Naylor
Offer Letter
Page 3 of 4

This employment offer is subject to your compliance with the following
requirements. Please read these carefully and contact Kathy Kennedy, Director,
Corporate Human Resources at 847-267-5352 if you need further clarification.

1. Employment Agreement - We are offering you a position of trust which requires
   the maintenance of confidence. Therefore, it will be necessary for you to
   execute an employment agreement prior to commencing employment.

2. Employment Eligibility Verification (Form I-9) - All employees are required
   to prove their eligibility to work in the United States as required by the
   U.S. Immigration Law. Please complete section 1 of the enclosed form I-9. The
   reverse side of the I-9 form lists documents which are acceptable to prove
   your eligibility to work in the United States.

3. Pre-Employment Drug Screening - Your employment offer is contingent upon
   passing a confidential urine drug screening. Enclosed is information on where
   you should go to have this done and what information will be requested of
   you. Take the chain of custody form provided and a picture ID with you to the
   clinic. Upon acceptance of this offer, your drug screen must be completed
   within two business days.

4. Employment Application - A completed Dade Behring application is required of
   every employee. Please complete the enclosed application, if you have not yet
   done so, and return it as soon as possible.

5. Reference Check Release - Your employment offer is contingent upon positive
   review of your references. This may include verifying and investigating
   educational, employment, financial, and criminal history. Please complete the
   enclosed release and return it as soon as possible.

Upon acceptance of our employment offer, Kathy Kennedy, Director Human Resources
will contact you directly to provide you with pertinent information regarding
the above as well as any questions you may have relative to the hiring process.

Jeff, we are delighted that you will be joining our professional "Dade Behring
team" as Senior Vice President and Chief Financial Officer. To indicate your
acceptance of this offer, please sign the original letter in the space provided
and return it along with a copy of the other documents listed above in the
envelope provided.
<PAGE>

Mr. Jeff Naylor
Offer Letter
Page 4 of 4

Once again, congratulations! We look forward to receiving your reply as soon as
possible.

Sincerely,

/s/ Jim Reid-Anderson

Jim Reid-Anderson
President & Chief Operating Officer

c.c. Rob Maple
     Senior Vice President, Human Resources

Enclosures

I acknowledge and accept this offer.

/s/ Jeffrey G. Naylor                 8/31/00
--------------------------------------------------------------------------------
Signature                               Date<PAGE>

                                                                    EXHIBIT 10.9

                             SEPARATION AGREEMENT
                             --------------------

          THIS SEPARATION AGREEMENT (this "Agreement") is made as of September
                                           ---------
1, 2000, by and among Dade Behring Holdings, Inc., a Delaware corporation
("Holding"), and Steve Barnes ("Executive").
---------                       ---------

          Dade Behring Inc. (a wholly-owned subsidiary of Holding) and Executive
are parties to (i) a certain Employment Agreement dated as of October 1, 1997
(the "Employment Agreement") and (ii) a certain Employment Agreement Addendum
      --------------------
dated as of October 1, 1997 (the "Addendum").
                                  --------

          Holding and Executive are parties to certain agreements (the
"Executive Agreements"), pursuant to which (i) Holding granted Executive stock
---------------------
options to purchase the number and type of shares of capital stock of Holding as
indicated on Exhibit A attached hereto (collectively, the "Options") and (ii)
             ---------                                     -------
Executive purchased (whether by exercise of the Options or otherwise) the number
and type of shares of capital stock of Holding as indicated on Exhibit A
                                                               ---------
attached hereto (collectively, the "Shares"), in each case, which are subject to
                                    ------
certain stock option plans of Holding (the "Plans").
                                            -----

          Executive desires to resign all officer positions in and employment by
Holding and its subsidiaries and Holding and its subsidiaries desire to accept
such resignations.

          In consideration of the mutual covenants contained herein and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

          1.   Resignation. Effective as of September 1, 2000, Executive hereby
               -----------
resigns all officer positions in and employment by Holding and its subsidiaries.
Upon the request of Holding, Executive shall execute and deliver any additional
documents necessary to evidence such resignations.

          2.   Board. Executive, in his capacity as President and Chief
               -----
Executive Officer of Holding, currently serves as a member of the board of
directors of Holding and one or more of its subsidiaries. Effective as of
September 1, 2000, Executive shall no longer serve as a member of any such board
of directors in such capacity. However, Executive shall remain as member of the
board of directors of Holding, but in the capacity of a Bain Director (as
defined in the Amended and Restated Stockholders Agreement dated as of April 14,
1999, as amended from time to time ("Stockholders Agreement")), subject to
                                     ----------------------
removal by the Bain Holders (as defined in the Stockholders Agreement) in
accordance with the terms of the Stockholders Agreement.

          3.   Base Salary, Benefits and Bonus. Holding shall continue to pay
               -------------------------------
Executive (i) Executive's base salary in regular installments in accordance with
Holding's general payroll practices through December 31, 2000, (ii) the package
of employee benefits currently available to Executive under the Employment
Agreement through December 31, 2000 and (iii) a bonus equal to
<PAGE>

the bonus Executive would had received had he remained employed through December
31, 2000 (the amount to be determined by the board of directors of Holding in
good faith) (payable in accordance with normal Company policy). All amounts
payable pursuant to this Section 3 shall be payable at such times as such
amounts would have been payable had Executive not resigned and which shall be
subject to withholding and any other applicable taxes. Except as set forth in
this Agreement, Executive agrees that he is not entitled to any other salary,
bonus, severance, benefit or expectation of remuneration from Holding or its
subsidiaries.

          4.   Options.
               -------

          (a)  Notwithstanding any provision to the contrary contained in this
Agreement, the Executive Agreements or any Plan, each of the parties to this
Agreement agree that the Options indicated as unvested Options on Exhibit A
                                                                  ---------
attached hereto are hereby cancelled.

          (b)  Pursuant to the Executive Agreements and the Plans, following any
termination of the employment of Executive, (i) any vested Options which are not
exercised automatically expire and (ii) the Company has the right to repurchase
all of Executive's securities. Notwithstanding any provision to the contrary
contained in this Agreement, the Executive Agreements or any Plan, each of the
parties to this Agreement agree that (i) the Options indicated as vested Options
on Exhibit A attached hereto shall not expire as a result of not being exercised
   ---------
following Executive's resignation and will remain outstanding in accordance with
their terms (i.e., as if Executive had not resigned) and (ii) Holding will not
exercise any repurchase right it is entitled to under the Executive Agreements
or the Plans with respect to the securities in connection with Executive's
resignation.

          5.   Conflict of Interest, Confidentiality, Non-Competition and
               ----------------------------------------------------------
Intellectual Property Rights. Executive acknowledges and reaffirms his
----------------------------
obligations under the Addendum and agrees that he will continue to be bound by
the terms and conditions of such Addendum, including the Conflict of Interest,
Confidentiality, Non-Competition and Intellectual Property Rights provisions
thereof (it being understood for purposes of the Addendum, the date of
termination shall be deemed to have occurred as of January 1, 2001).

          6.   Notices. Any notice provided for in this Agreement must be in
               -------
writing and must be either personally delivered, or mailed by first class mail
(postage prepaid and return receipt requested) or sent by reputable overnight
courier service (charges prepaid) to the recipient at the address below
indicated:

          To Holding:
          ----------

          Dade Behring Holdings, Inc.
          1717 Deerfield Road
          Deerfield, Illinois 60015
          Attention: President

                                      -2-
<PAGE>

          With a copy to:
          --------------

          Bain Capital, Inc.
          Two Copley Place
          Boston, Massachusetts 02116
          Attention: John P. Connaughton

          and:
          ---

          Kirkland & Ellis
          200 East Randolph Drive
          Chicago, Illinois 60601
          Attention: Matthew E. Steinmetz

          To Executive:
          ------------

          Steve Barnes
          1 Jackson Circle
          Franklin, Massachusetts 02038

or such other address or to the attention or such other person as the recipient
party shall have specified by prior written notice to the sending party. Any
notice under this Agreement will be deemed to have been given when so delivered
or sent, or, if mailed, five days after deposit in the U.S. mail.

          7.   General Provisions.
               ------------------

          (a)  Severability. Whenever possible, each provision of this Agreement
               ------------
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be invalid,
illegal or unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability shall not affect
any other provision or any other jurisdiction, but this Agreement shall be
reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provision had never been contained herein.

          (b)  Complete Agreement. This Agreement, those documents expressly
               ------------------
referred to herein and other documents of even date herewith embody the complete
agreement and understanding among the parties and supersede and preempt any
prior understandings, agreements or representations by or among the parties,
written or oral, which may have related to the subject matter hereof in any way.

          (c)  No Strict Construction. The language used in this Agreement shall
               ----------------------
be deemed to be the language chosen by the parties hereto to express their
mutual intent, and no rule of strict construction shall be applied against any
party.

                                      -3-
<PAGE>

          (d)  Counterparts. This Agreement may be executed in separate
               ------------
counterparts, any one of which may be by facsimile and each of which is deemed
to be an original and all of which taken together constitute one and the same
agreement.

          (e)  Successors and Assigns. This Agreement is intended to bind and
               ----------------------
inure to the benefit of and be enforceable by Executive, the Company and their
respective heirs, successors and assigns, except that Executive may not assign
his rights or delegate his obligations hereunder without the prior written
consent of the Company.

          (f)  Choice of Law. All issues and questions concerning the
               -------------
construction, validity, enforcement and interpretation of this Agreement and the
exhibits and schedules hereto shall be governed by, and construed in accordance
with, the laws of the State of Illinois, without giving effect to any choice of
law or conflict of law rules or provisions (whether of the State of Illinois or
any other jurisdiction) that would cause the application of the laws of any
jurisdiction other than the State of Illinois.

          (g)  Amendment and Waiver. The provisions of this Agreement may be
               --------------------
amended or waived only with the prior written consent of the Company and
Executive, and no course of conduct or failure or delay in enforcing the
provisions of this Agreement shall affect the validity, binding effect or
enforceability of this Agreement.

                 *          *          *          *          *

                                      -4-
<PAGE>

          IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the date first written above.

                                 /s/ Steve Barnes
                              ------------------------------------
                              STEVE BARNES

                              DADE BEHRING HOLDINGS, INC.

                              By: /s/ Stephen Pagliuca
                                  --------------------------------

                              Its: _______________________________
<PAGE>

                                                                       Exhibit A
                                                                       ---------

               Executive Equity Summary as of December 31, 2000
               ------------------------------------------------

Options

-----------------------------------------------------------------------------
 Date of Grant                               October 1, 1997  July 1, 1999
-----------------------------------------------------------------------------
 Number of Common A Shares Vested                 450,160        90,000
-----------------------------------------------------------------------------
 Number Of Common A Shares Unvested                     0       210,000
-----------------------------------------------------------------------------
 TOTAL NUMBER GRANTED                             450,160       300,000
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