Document:

Separation Agreement - Wayne Hewett

 Exhibit 10.17 
 SEPARATION AGREEMENT AND 
 GENERAL RELEASE 
 This Separation Agreement and General Release (the “Separation Agreement and General Release”) is made and entered into as of the 7th
day of June, 2007 by and among Wayne Hewett (hereinafter referred to as the “Executive”) and MOMENTIVE PERFORMANCE MATERIALS, INC., a Delaware corporation (the “Company”) and for purposes of Section 4 of this
Agreement, MOMENTIVE PERFORMANCE MATERIALS HOLDING INC. (“Holdings”). Capitalized terms used and not defined herein shall have the meaning as provided in the Employment Agreement (as defined below). 
 W I T N E S S E T H : 
 WHEREAS, the
Executive and the Company are parties to an Employment Agreement dated as of March 19, 2007 (the “Employment Agreement”); and 
 WHEREAS, pursuant to Section 2(c)(ix) of the Employment Agreement and the Subscription Agreement by and among the Executive and Holdings, dated as of February 28, 2007 (the “Subscription Agreement”), the Executive
purchased 10,425 shares of Holdings common stock for an aggregate purchase price of $1,042,500 on March 30, 2007 (such purchased shares, the “Purchased Shares”); and 
 WHEREAS, the Executive has agreed (i) effective as of June 8, 2007 (the “CEO Start Date”) to resign from his position as Chief
Executive Officer (“CEO”) of the Company and to remain a non-officer employee of the Company through the 30-day period after the CEO Start Date (the last day of such period, the “Resignation Date”) and (ii) to
resign all offices, directorships and similar positions with the Company, its subsidiaries and related entities (including, without limitation, Holdings), including the Executive’s position as a non-officer employee of the Company, as an
officer of Holdings and as a member of the Board of Directors of each of the Company and Holdings; and 
 WHEREAS, the Executive and the
Company have agreed that the Executive’s termination of employment as of the Resignation Date will be treated as a termination by the Executive for Good Reason under Section 3(d) of the Employment Agreement; and 
 WHEREAS, the parties wish to amend the Employment Agreement to reflect the foregoing and to resolve any and all outstanding issues and claims that may
arise out of the Employment Agreement, the Executive’s employment by the Company, its subsidiaries and affiliates and the Executive’s termination of employment; and 
 WHEREAS, pursuant to Section 4(e) of the Employment Agreement, upon a termination of the Executive’s employment for any reason on or before
January 3, 2008, the Company or Holdings is required to purchase all of Executive’s Purchased Shares within 30 days following the Resignation Date for the total purchase price paid by the Executive for such Purchased Shares and pay to the
Executive such purchase price by check or wire upon delivery by the Executive of the certificates for such Purchased Shares. 

 NOW, THEREFORE, in consideration of the mutual promises herein contained, it is agreed as follows:

 1. Resignation. Effective as of the CEO Start Date, (i) the Executive shall no longer hold the position of CEO, but shall
remain employed by the Company as a non-officer employee through the Resignation Date and shall diligently and in good faith perform all duties requested of him through the Resignation Date and (ii) the Executive shall resign from any offices,
directorships, similar positions and other affiliations that the Executive holds or has with the Company, Holdings and their respective subsidiaries, affiliates and related entities (collectively, the “Company Entities” and each, a
“Company Entity”), including, without limitation, his position as an officer of Holdings and as a member of the Board of Directors of each of the Company and Holdings. Effective as of the Resignation Date, the Executive shall no
longer serve as a non-officer employee of the Company. A copy of the Executive’s resignation is attached hereto as Exhibit A. Notwithstanding Sections 3(d), (f) and (g) of the Employment Agreement regarding notice of
termination of the Executive’s employment, the Date of Termination (as defined in the Employment Agreement) shall be the Resignation Date. The Company and the Executive agree that the Executive’s resignation will be treated as a
termination by the Company for Good Reason under Section 3(d) of the Employment Agreement. 
 2. Severance Payments. Subject to
the Executive’s compliance with the terms of this Resignation Agreement and General Release, the Company agrees to provide the Executive with the payments and benefits set forth in Section 4(a)(ii)-(iv) of the Employment Agreement
commencing upon the Second Revocation Date (as defined below) as modified by Exhibit C annexed hereto, provided, that, as of the Resignation Date, the Executive executes and, prior to the Second Revocation Date does not revoke, a
release substantially in the form set forth on Exhibit B annexed hereto. The Company also agrees to provide the Executive with (i) the payments set forth in Section 4(a)(i) of the Employment Agreement on the Second Revocation Date
and (ii) the payments set forth in Section 2(c)(v) of the Employment Agreement in accordance with the provision of such Section 2(c)(v). The payments contemplated by Sections 2(c)(v) and 4(a)(i) – (iv) of the Employment
Agreement (as modified by Exhibit C annexed hereto) shall be comprised of the amounts set forth on Exhibit C annexed hereto. The “Second Revocation Date” shall be the date that is seven (7) days after the date on
which the Executive signs the release set forth on Exhibit B to this Separation Agreement and General Release. 
 3. Reimbursement for
Business Expenses. The Company agrees to reimburse the Executive for all business expenses actually and reasonably incurred by the Executive in the performance of his duties during his employment in accordance with the Company policy and for
which the Executive provides appropriate documentation. 
 4. Share Repurchase. Holdings hereby agrees to purchase the Purchased
Shares for an aggregate purchase price of $1,042,500, which amount shall be paid by Holdings to Executive by check or wire transfer of such amount in a single payment no later than July 15, 2007. 
 5. No Other Benefits. Except as specifically set forth in this Separation Agreement and General Release, the Executive expressly acknowledges and
agrees that, 

  

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effective as of the Resignation Date, the Executive is not entitled to receive any severance pay, severance benefits, compensation or employee benefits of
any kind whatsoever from the Company or any of the Company Entities, and all of the Executive Options held by the Executive shall terminate as of the Resignation Date. 
 6. Executive’s Release of the Company Entities. (a) In consideration for the payments set forth in paragraph 2, the Executive for himself, his heirs, administrators, representatives, executors,
successors and assigns (collectively “Releasers”) hereby irrevocably and unconditionally releases, acquits and forever discharges and agrees not to sue the Company or any Company Entity or any of its or their subsidiaries,
divisions, affiliates and related entities and their respective current and former directors, officers, shareholders, trustees, employees, consultants, independent contractors, representatives, agents, servants, successors and assigns and all
persons acting by, through or under or in concert with any of them (collectively “Releasees”), from all rights and liabilities up to and including the date of this Agreement arising under or relating to the Employment Agreement and
from any and all charges, complaints, claims, liabilities, obligations, promises, agreements, controversies, damages, actions, causes of actions, suits, rights, demands, costs, losses, debts and expenses of any nature whatsoever, known or unknown,
suspected or unsuspected and any claims of wrongful discharge, breach of contract, implied contract, promissory estoppel, defamation, slander, libel, tortious conduct, employment discrimination or claims under any federal, state or local employment
statute, law, order or ordinance, including any rights or claims arising under Title VII of the Civil Rights Act of 1964, as amended, the Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. § 621 et seq.
(“ADEA”), or any other federal, state or municipal ordinance relating to discrimination in employment. Nothing contained herein shall restrict the parties’ rights to enforce the terms of this Agreement. 
 (b) To the maximum extent permitted by law, Executive agrees that he has not filed, nor will he ever file, a lawsuit asserting any claims which are
released by this Release, or to accept any benefit from any lawsuit which might be filed by another person or government entity based in whole or in part on any event, act, or omission which is the subject of the Release set forth above. 

(c) The Release set forth above specifically excludes any claim for vested benefits to which the Executive may be entitled under any benefit plan of
the Company or any Company Entity in which the Executive participates (the “Company Plans”). The Executive’s entitlement to benefits under the Company Plans shall be determined in accordance with the provisions of those Plans.
The Release set forth above also specifically excludes the Executive’s indemnification as an officer and employee of the Company or any Company Entity. Nothing contained in this Release shall release the Executive from his obligations,
including any obligations to abide by restrictive covenants under this Agreement or the Employment Agreement, that continue or are to be performed following termination of employment. 
 (d) Executive represents that he is not aware of any facts or circumstances that would give rise, based on his actions, to any claims or lawsuits against
the Company or any Company Entity. 
  

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 (e) The parties agree that this Agreement shall not affect the rights and responsibilities of the US
Equal Employment Opportunity Commission (hereinafter “EEOC”) to enforce ADEA and other laws. In addition, the parties agree that this Separation Agreement and General Release shall not be used to justify interfering with the
Executive’s protected right to file a charge or participate in an investigation or proceeding conducted by the EEOC. The parties further agree that the Executive knowingly and voluntarily waives all rights or claims (that arose prior to the
Executive’s execution of this Agreement) the Releasers may have against the Releasees, or any of them, to receive any benefit or remedial relief (including, but not limited to, reinstatement, back pay, front pay, damages, attorneys’ fees,
experts’ fees) as a consequence of any investigation or proceeding conducted by the EEOC. 
 7. Non-Disclosure. In further
consideration for the payment described in paragraph 2 above, the Executive represents that he has kept the terms of this Separation Agreement and General Release confidential. In addition, the existence of and terms and conditions of this
Separation Agreement and General Release shall be held confidential by the Executive, except for disclosure (a) required by applicable laws, (b) to the Executive’s legal and financial advisors, each of whom shall be instructed by the
Executive to maintain the terms of this Separation Agreement and General Release in strict confidence in accordance with the terms hereof, (c) to the Executive’s spouse, who shall be instructed by the Executive to maintain the terms of
this Separation Agreement and General Release in strict confidence in accordance with the terms hereof, (d) required by order of a court or other body having jurisdiction over such matter, and (e) with the written consent of the Company.

 8. Non-Disparagement. The Company and Holdings agree to instruct their respective directors and senior executive officers to
refrain from criticizing or making disparaging or derogatory comments about the Executive and the Executive agrees to refrain from criticizing or making disparaging or derogatory comments about the Company or any of the Company Entities and its or
their officers, directors, employees and agents, or any products or services of the Company or any of the Company Entities. Except as required by applicable law or court order, the Executive and the Company agree that (a) the press release
attached as Exhibit D hereto shall be the only press release issued by the parties hereto and their respective affiliates concerning the Executive’s termination of employment and service with the Company and the Company Entities and
(b) the parties and their respective affiliates shall make no public statements concerning the Executive’s termination of employment and service with the Company and the Company Entities that are inconsistent with the Press Release.

 9. Full Force and Effect. Notwithstanding anything herein to the contrary, the Executive’s obligations under Sections 5, 6 and
7 of the Employment Agreement shall continue following the Resignation Date. As of and after the Resignation Date, Sections 5, 6, 7, 9, and 10 of the Employment Agreement shall survive in accordance with their terms, and the remainder of the
Employment Agreement shall be void and of no further force and effect, except to the extent that definitions of capitalized terms are set forth therein. 
 10. Cooperation. For one year following the Resignation Date, the Executive shall reasonably cooperate with the Company and the Company Entities without further compensation or consideration (except for
reimbursement of ordinary, necessary and reasonable business expenses for legal fees, food, transportation and/or lodging, if any, incurred in 

  

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fulfillment of a reasonable specific request for cooperation) in connection with business activities in which the Executive was involved or had knowledge,
provided that (i) the Company and the Company Entities in requesting such cooperation shall reasonably accommodate the Executive’s schedule so as not to interfere with his other professional commitments and (ii) such cooperation shall
not occupy more than 10 hours of the Executive’s time in any month or more than 50 hours of the Executive’s time over the course of such one-year period. Such cooperation shall include, but not be limited to, reasonably requested sworn
testimony. 
 11. ADEA Rights. The Executive acknowledges that the Company has
specifically advised him of the right to seek the advice of an attorney concerning the terms and conditions of this Agreement. The Executive further acknowledges that he has been furnished with a copy of this Separation Agreement and General
Release, and he has been afforded twenty-one (21) days in which to consider the terms and conditions set forth above prior to signing the Separation Agreement and General Release. By executing this Separation Agreement and General Release, the
Executive affirmatively states that he has had sufficient and reasonable time to review this Separation Agreement and General Release and to consult with an attorney concerning his legal rights prior to the final execution of this Agreement. The
Executive further agrees that he has carefully read this Separation Agreement and General Release and fully understands its terms. The Executive understands that he may revoke this Agreement within seven (7) days after signing this Separation
Agreement and General Release (the “Revocation Period”). Revocation of the Separation Agreement and General Release must be made in writing and must be received by Stan Parker at Apollo Management, L.P., 9 West 57th Street, New York, NY 10019 within the time period set forth above. 
 12. Counterparts. This Separation Agreement and General Release may be executed in several counterparts, each of which shall be deemed to be an original, but all of which together will constitute one and the
same instrument. 
 13. Entire Agreement. This Separation Agreement and General Release comprises the parties’ entire agreement
in respect of the subject matter contained herein and supersedes all prior agreements, promises, covenants, arrangements, communications, representations or warranties, whether oral or written, by any officer, employee or representative of any party
hereto, except as otherwise provided in this Separation Agreement and General Release and the Employment Agreement as amended hereby. 
 14.
Tax Withholding. Notwithstanding any other provision of this Separation and Release Agreement, the Company may withhold from any amounts payable under this Agreement, or any other benefits received pursuant hereto, such minimum Federal, state
and/or local taxes, FICA and such other deductions as may be required to be withheld under any applicable law or regulation. 
 15. Choice
of Law. This Separation and Release Agreement will be governed by and construed in accordance with the laws of the state of Delaware, without giving effect to any choice of law or conflicting provision or rule (whether of the state of Delaware
or any other jurisdiction) that would cause the laws of any jurisdiction other than the state of Delaware to be applied. In furtherance of the foregoing, the internal law of the state of Delaware will control the 

  

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 interpretation and construction of this agreement, even if under such jurisdiction’s choice of law or conflict of
law analysis, the substantive law of some other jurisdiction would ordinarily apply. 
  

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 IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the date first written
above. 
  

	
	MOMENTIVE PERFORMANCE MATERIALS INC.
	
	 By: /s/ Justin Stevens

	       Title: Vice President and Secretary

	
	MOMENTIVE PERFORMANCE MATERIALS HOLDINGS INC.
	
	 By: /s/ Justin Stevens

	      Title: Vice President and Secretary
	
	 /s/ Wayne Hewett

	 Wayne Hewett

  

 7Management Equity Investment and Incentive Term Sheet for Steven Delarge

 Exhibit 10.18 
 Management Equity Investment and Incentive Term Sheet 
 Set forth below are the key management compensation
terms by which the undersigned parties agree to abide by upon the consummation of the acquisition (the “Transaction”) of certain subsidiaries of General Electric Company (“GE”) by Nautilus Acquisition Corp. (the
“Company”), an affiliate of Apollo Management VI, LP (the “Investor”). 
  

					
	Name:	 	As set forth on Exhibit A (“you”).
		
	Base Salary:	 	As set forth on Exhibit A.
		
	Bonus:	 	As set forth on Exhibit A.
		
	Supplemental Annual Compensation in Lieu of Foregone Fringe Benefits:	 	As set forth on Exhibit A.
		
	Severance:	 	To be established by the Company and to be no less favorable to you than the policies and practices of GE, as in effect on the closing date (other than with respect to benefits
pursuant to any early retirement program, which may be changed from time to time).
		
	Investment Amount:	 	You will invest in an amount set forth on Exhibit A on an after-tax basis in the Company on the later of (i) February 28, 2007 or (ii) within 60 days after the consummation of the
Transaction (such date of consummation, the “Closing”), which final investment amount is set forth on the signature page to this Term Sheet. Your purchase price per share will be the same as the Investor’s. The Investor will use
commercially reasonable efforts to work with GE to maximize the tax efficiency of your investment.
		
	Company Option Plan:	 	Concurrent with the consummation of the Transaction, an option plan will be created and options to acquire shares of the Company’s common stock (or common equity) will be issued
to management. Management will be required to make investments and will receive options pursuant to individual letter agreements between management employees and the Company. These options will be exercisable for shares of the Company’s common
stock at an exercise price equal to the price paid by the Investor and management for shares of common stock acquired by them in connection with the Transaction.
		
	Company Options:	 	You will be granted options for Company common stock with the aggregate fair market value exercise price set forth on Exhibit A (the “Company Options”). The Company Options
will have a strike price per share equal to the Investor’s purchase 

					
		
		 	price for shares of common stock. In the event the purchase price is different, the number of Company Options will be adjusted.
		
		 	The Company Options will vest in three categories, provided that you are employed with the Company on each applicable vesting date:
			
		 	 (i)
	  	One third (“Tranche A Options”) will vest in equal tranches on each of the 14th, 24th, 36th, 48th
 and 60th month anniversaries of the consummation of the
Transaction;
			
		 	 (ii)
	  	One third will vest at such time as the Investor realizes at least a 20% cash-on-cash return; and
			
		 	 (iii)
	  	One third will vest at such time as the Investor realizes at least a 25% cash-on-cash return.
		
		 	Unvested Tranche A options will vest as follows in connection with a change in control of the Company: (A) if the Investor realizes at least a 20% cash-on-cash return upon such
change in control, 50% of such Tranche A Options will vest upon the earlier of (i) 12 months of continued employment after such change in control or (ii) termination of your employment without Cause or for Good Reason during such 12-month period; or
(B) if the Investor realizes at least a 25% cash-on-cash return upon such change in control, 100% of such Tranche A Options will vest upon the earlier of (i) and (ii) above.
		
		 	 Term. The Company Options will generally have a 90-day post-termination exercise period (180 days for death or disability), except
that all options are forfeited on a termination for Cause.
  
 The Company Options will
have a scheduled term of no less than 10 years.

		
	Put/Call Rights:	 	 Management Put Rights. If the Company terminates your employment without Cause or you terminate your employment for Good Reason,
you will have the right to require the Company to repurchase all of your common stock (including common stock that you acquire due to the exercise of Company Options (as defined below) after termination of your employment) at your original purchase
price.
  
 Investor/Company Call Rights. In the event that the Company terminates
your employment for Cause, the Investor and the Company shall each have the right to repurchase all of your 

  

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		 	 common stock (including common stock that you acquire due to the exercise of Company Options after termination of your employment) at
the lesser of (i) fair market value (as determined by the Board of Directors of the Company in good faith) (“Fair Market Value”) and (ii) your original purchase price.
  
 In the event that you terminate your employment without Good Reason, the Investor and the Company
shall each have the right to repurchase all of your common stock (including common stock that you acquire due to the exercise of Company Options after termination of your employment) at Fair Market Value.
  
 Time Period for Calls/Puts. These puts and calls must generally be exercised within 90 days
following your termination of employment. However, if necessary to avoid liability accounting, the repurchase of shares you receive in settlement of Company Options will not take place until six months and one day following the exercise of such
Company Options. Puts and calls will expire on an IPO.
  
 Repurchases shall be subject to
applicable indenture and credit agreement restrictions (subject to customary baskets and exceptions). The Investor will use reasonable efforts to obtain customary flexibility in this regard.

		
	Company Shareholder Agreement:	 	You will be party to a shareholders agreement and/or an investor rights agreement and option agreement providing for, among other things:
			
		 	 •
	  	customary tag-along rights (subject to customary underwriter cutbacks in an IPO) that will permit you to sell securities, on a pro rata basis, in the event of certain sales by the
Investor;
			
		 	 •
	  	customary drag-along rights which will require you to sell securities, on a pro rata basis, in the event of certain sales by the Investor;
			
		 	 •
	  	piggy back registration rights entitling you to register your shares of Common Stock (or other applicable securities) in certain circumstances following an IPO of the Company;
			
		 	 •
	  	permitted transfers for estate-planning purposes; and
			
		 	 •
	  	non-compete/non-solicitation provisions set forth below.
		
	Cause:	 	For purposes of the put/call rights set forth below and your Company Options (as defined below), “Cause” means a

  

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		 	termination of your employment by the Company or any of its subsidiaries based on (i) your commission of a felony crime or a crime of moral turpitude, (ii) a willful commission of
a material act of dishonesty involving the Company or any of its affiliates or subsidiaries, (iii) a material breach of your obligations under any agreement entered into between you and the Company or any of its subsidiaries and affiliates, (iv)
willful failure to perform your material duties, (v) your material breach of the Company’s policies or procedures or (vi) any other willful misconduct which causes material harm to the Company or any of its affiliates or subsidiaries or their
business reputations, including due to any adverse publicity provided, however, that none of the events described in the foregoing clauses (iii), (iv), (v) or (vi) shall constitute Cause unless the Company has notified you in writing describing the
events which constitute Cause and then only if you fail to cure such events within fifteen (15) days after receipt of such written notice (provided that, in the event such breach is not curable, no notice period shall be required).
		
	Good Reason:	 	For purposes of the put/call rights set forth below and your Company Options, “Good Reason” means your voluntary resignation after any of the following actions are taken by
the Company or any of its subsidiaries without your consent (i) a reduction in your base salary or bonus potential (but not including any diminution related to a broader compensation reduction that is not limited to any particular employee or
executive), (ii) a material reduction in your responsibilities, or (iii) a material breach by the Company of your investment or Company Option agreements that results in financial harm to you; provided, however, that none of the events described in
the foregoing clauses (i), (ii) or (iii) shall constitute Good Reason unless you have notified the Company in writing describing the events which constitute Good Reason and then only if the Company fails to cure such events within thirty (30) days
after the Company’s receipt of such written notice.
		
	Restrictive Covenants	 	Noncompetition with the Company or any of its affiliates, and no hire and nonsolicitation of the Company’s and its affiliates’ employees, independent contractors or
customers (including former employees and independent contractors) for a period of one year after termination of employment for any reason. Standard ongoing confidentiality obligation will apply.

  

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 By signing below, the parties agree that this term sheet will be binding upon the parties as of the Closing, subject
to you being employed by GE immediately prior to Closing. The parties will complete full documentation prior to the Closing based on these terms and other terms customary for transactions of this type, which will supersede this term sheet.

 Signed, 
  

													
		 		 		 		 	Nautilus Acquisition Corp.
					
	By:	 	 /s/ Steven Delarge
	 		 	By:	 	 /s/ Justin Stevens

		 	Name:	 	Steven Delarge	 		 		 	Name:	 	Justin Stevens

 Date: September 11, 2006 
 Investment Amount: $250,000 
  

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