Document:

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                    TRANSITION AND GENERAL RELEASE AGREEMENT

      This Transition and General Release Agreement ("Agreement") is entered
into by and between Allergan, Inc. (the "Company") and Lester J. Kaplan (the
"Employee") (collectively referred to as the "Parties"). This Agreement is
effective on the date that the Employee signs and dates the Agreement
("Agreement Date").

      1. Benefits to Employee.

      The benefits to employee under this section are provided under the
Allergan, Inc. Severance Pay Plan.

          a. Transition.

      Employee and the Company have mutually agreed that Employee will resign
his position with the Company effective August 6, 2005 (the "Retirement Date")
and will transition his responsibilities to a replacement employee in an orderly
fashion. Accordingly, to permit a transition to his replacement, Employee and
Company agree as follows:

                  (i) Employee will use his best efforts to assist in the
recruitment, hiring, orientation and orderly transition to a replacement
Executive Vice President of Research and Development (the "Transition"). It is
currently anticipated by Employee and the Company that the Transition will be
completed by May 31, 2004. However, the Transition will be considered complete
on the date that the Company's CEO provides notice to the Employee of its
completion;

                  (ii) In addition to his role in the Transition, until the
Transition is complete, Employee will continue to use his best efforts in his
role as Executive Vice President of Research and Development to lead the
Company's Research and Development Department and research and development
activities and to perform his other Company duties;

                  (iii) Company currently intends to pursue a successor through
an executive search firm on a confidential basis. The Company will determine the
timing and extent of internal and external disclosure of the search and
Transition. Accordingly, Employee agrees to keep the search, the proposed
Transition and the existence of this Agreement strictly confidential, both
externally and internally, unless and until he has been expressly permitted to
make a particular disclosure by the CEO. The Company, however, acknowledges
that the Company's CEO has informed a limited number of internal and external
individuals regarding this matter on a "need to know" basis;

                  (iv) Upon completion of the Transition, Employee will resign
from his position as Executive Vice President of Research and Development, will
cease to be an Executive Officer of the Company, and will tender his resignation
as a member of the Company's Board of Directors;

                  (v) Although he will resign his position as Executive Vice
President Research and Development, upon completion of the Transition, Employee
will remain an employee of the Company through his Retirement Date and will
make himself available on an as-needed basis to assist in research and
development related activities and projects. Any

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such work will require reasonable advance notice by the Company and the
schedule, timing and scope of such work will be subject to the mutual agreement
of Company and Employee;

               (vi) From the Agreement Date through the Retirement Date,
Employee will be paid his current base salary at the rate of $495,000 per year.
However, if by August 6, 2004 the Transition Date has not occurred, Employee's
base salary rate shall be increased by four percent (4%), effective August 6,
2004. Likewise, if the Transition Date has not occurred on or before January 1,
2005, Employee's base salary rate shall increase an additional four percent
(4%), effective January 1, 2005. At the discretion of and subject to the
approval of the Company's Organization and Compensation Committee of the Board
of Directors (the "OCC"), Employee will be eligible to receive a pro rated
management bonus covering the period January 1, 2004 through the completion of
the Transition based on Employee's base compensation as of the date of the
Agreement Date, the bonus percentage payable to employees at Employee's grade
level (grade 15E), and the performance modifier determined for bonuses paid to
employees in the Research & Development Department. Assuming that the Transition
Date has occurred prior to January 1, 2005, Employee will not be eligible to
receive a management bonus for 2005 performance. This Agreement has no effect on
Employee's eligibility for a management bonus covering the calendar year 2003;

               (vii) At the discretion of and subject to the approval of the
OCC, Employee will be eligible for a regular 2004 grant of Non-Qualified Stock
Options ("NQSO");

               (viii) If Employee discharges his obligations hereunder, any
unvested NQSOs held by Employee at his Retirement Date will vest and all NQSOs
held by Employee on the Retirement Date will expire on the earlier of (a) the
expiration date provided in the NQSO grant or (b) August 6, 2008;

               (ix) On or about January 1, 2000, Employee and Company entered
into a Change of Control Agreement (the "COC Agreement"). Subject to Company's
right of termination provided in the COC Agreement, the COC Agreement will
remain in force and effect until the Transition Date. If a "Change of Control"
(as that term is defined in the COC Agreement) occurs before the Transition
Date, the COC Agreement will take precedence over this Agreement and this
Agreement shall be deemed null and void. Assuming no "Change of Control" has
occurred prior to the Transition Date, on the Transition Date the COC Agreement
shall be deemed null and void and any and all rights of Employee thereunder will
cease.

               (x) Employee agrees to re-execute a release in substantially the
same form as Section 3 hereof on, and effective as of, his Retirement Date.

          b. No Other Payments or Benefits.

     All of Employee's current benefits and perquisites, including
Medical/Dental & Vision Care insurance benefits, LTD, vacation accrual, life
insurance, personal accident coverage, tax and financial planning, club dues,
automobile allowance, pension accruals, Savings and Investment Plan accruals and
gasoline allowance will continue until the Retirement Date. For the avoidance of
doubt, in connection with this Agreement, Employee does not waive or

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relinquish any rights Employee may have in the Allergan Pension Plan, the
Allergan Savings and Investment Plan, or the Allergan Employee Stock Ownership
Plan.

                  The Employee relinquishes and waives any right to receive
any other remuneration, income, salary, options, benefits, or bonuses from the
Company not outlined herein. Employee will not be eligible to receive NQSOs,
restricted stock, or special incentive plan payouts granted to other employees
at his grade level for any period between the date of this Agreement and the
Retirement Date unless expressly provided in Section 1(a) above.

                  2.                Expenses.
                                    --------

                  Commencing on the completion date of the Transition, Employee
will incur no expenses on behalf of the Company nor will Employee have any
authority to act on behalf of the Company unless expressly provided such
authority by the Company's Chief Executive Officer in writing. Any advances
should be repaid by the Retirement Date.

                  3.                Release of the Company.
                                    -----------------------

                  a.                General Release. In exchange for the
Benefits set forth above, the Employee herby releases and forever discharges the
Company, its parents, subsidiaries, predecessors, successors and each of their
associates, owners, stockholders, members, assigns, employees, agents,
directors, officers, partners, representatives, lawyers, and all persons acting
by, through, under, or in concert with them, or any of them, (collectively the
"Releases") of and from any and all manner of action or actions, cause or causes
of action, in law or in equity, suits, debts, liens, contracts, agreements,
promises, liabilities, claims, demands, damages, losses, costs or expenses, of
any nature whatsoever, known or unknown, fixed or contingent (hereinafter called
"Claims"), which the Employee now has or may hereafter have against the Releases
by reason of any and all acts, omissions, events or facts occurring or existing
prior to the Retirement Date, except as expressly provided herein. The Claims
released hereunder include, without limitation, any alleged breach of any
employment agreement; any alleged breach of any covenant of good faith and fair
dealing, express or implied; any alleged torts or other alleged legal
restrictions relating to the Employee's employment and the termination thereof;
and any alleged violation of any federal, state or local statute or ordinance
including, without limitation, Title VII of the Civil Rights Act of 1964, as
amended, the Age Discrimination in Employment Act, the Americans With
Disabilities Act, the California Fair Employment and Housing Act, and the
California Labor Code. This Release shall not apply to the Employee's right to
receive the benefits provided for in this Agreement including retirement and/or
employee welfare benefits that have vested and accrued prior to the Retirement
Date.

                  b.                Release of Unknown Claims.
                                    --------------------------

                  THE EMPLOYEE ACKNOWLEDGES THAT HE IS FAMILIAR WITH THE
PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:

                  A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE
                  CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT
                  THE TIME OF EXECUTING THE

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     RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT
     WITH THE DEBTOR.

     THE EMPLOYEE, BEING AWARE OF SAID CODE SECTION, HEREBY EXPRESSLY WAIVES
ANY RIGHTS HE MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR
COMMON LAW PRINCIPLES OF SIMILAR EFFECT.

          c.   Older Worker's Benefit Protection Act. The Employee agrees and
expressly acknowledges that this Severance Agreement and General Release
includes a waiver and release of all claims which he has or may have under the
Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. Sec. 621,
et seq. ("ADEA"). The following terms and conditions apply to and are part of
the waiver and release of the ADEA claims under this Agreement:

               1.   That this paragraph and this Agreement are written in a
manner calculated to be understood by Employee.

               2.   The waiver and release of claims under the ADEA contained
in this Agreement do not cover rights or claims that may arise after the date
on which Employee signs this Agreement.

               3.   This Agreement provides for consideration in addition to
anything of value to which Employee is already entitled.

               4.   The Employee is advised to consult an attorney before
signing this Agreement.

               5.   The Employee has been granted forty-five (45) days after
being presented with this Agreement to decide whether or not to sign this
Agreement. If the Employee executes this Agreement prior to the expiration of
such period, he does so voluntarily and after having had the opportunity to
consult with an attorney.

               6.   The Employee has been provided with disclosures concerning
the ages of employees eligible and ineligible to receive severance under this
offer.

               7.   The Employee will have the right to revoke this Agreement
within seven (7) days of signing this Agreement. In the event this Agreement is
revoked, this Agreement will be null and void in its entirety.

               8.   If the Employee wishes to revoke this agreement, the
Employee shall deliver written notice stating his intent to revoke this
Agreement to David Pyott, Chairman, President and CEO, Allegan, Inc. 2525
Dupont Drive, Irvine, California 92612 on or before 5:00 p.m. on the Seventh
(7th) Day after Employee's execution of this Agreement.

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     4. No Assignment of Claims.

     The Employee represents and warrants to the Releasees that there has been
no assignment or other transfer of any interest in any Claim which the Employee
may have against the Releasees, or any of them, and the Employee agrees to
indemnify and hold the Releasees harmless from any liability, claims, demands,
damages, costs, expenses and attorneys' fees incurred as a result of any person
asserting any such assignment or transfer of any rights or Claims under any
such assignment or transfer from such party.

     5. No Suits or Actions.

     Employee has not filed any claims, actions or charges against the
Releasees and represents that he does not have any other claims of any kind
whatsoever against the Releasees, including without limitation any claims for
workers' compensation injuries. The Employee agrees that if he hereafter
commences, joins in, or in any manner seeks relief through any suit arising out
of, based upon, or relating to any of the Claims released hereunder, or in any
manner asserts against the Releasees any of the Claims released hereunder,
including without limitation through any motion to reconsider, reopen or appeal
the dismissal of the Action, then Employee will pay to the Releasee's against
whom such Claim is asserted, in addition to any other damages caused thereby,
all attorneys' fees incurred by such Releasees in defending or otherwise
responding to said suit or Claim. Provided however, that this provision shall
not obligate Employee to pay the Releasee's attorney's fees, in any action
challenging the release of claims under the Older Workers Benefit Protection
Act or the Age Discrimination in Employment Act, unless otherwise authorized by
law.

     6. Advice of Counsel.

     The Employee represents and warrants that he has read this Agreement, has
had adequate time to consider it, has been advised to consult with an attorney
prior to executing this Agreement, understands the meaning and application of
this Agreement and has signed this Agreement knowingly, voluntarily and of his
own free will with the intent of being bound by it.

     7. Severability; Modification of Agreement.

     If any provision of this Agreement is found invalid or unenforceable in
whole or in part, then such provisions shall be deemed to be modified or
restricted to the extent and in the manner necessary to render the same valid
and enforceable or shall be deemed excised from this Agreement as such
circumstances may require, and this Agreement shall be construed and enforced
to the maximum extent permitted by law as of such provision had been originally
incorporated herein as so modified or restricted or as if such provision had
not been originally incorporated herein, as the case may be.

     8. Arbitration; Waiver of Jury Trial.

     Except for claims for emergency equitable or injunctive relief which
cannot be timely addressed through arbitration, the parties hereby agree to
submit any claim or dispute arising out of the terms of this Agreement and/or
any dispute arising out of or relating to the

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Employee's employment with the Company in any way, to private and confidential
arbitration by a single neutral arbitrator through JAMS/Endispute ("JAMS"). All
arbitration proceedings, unless otherwise required by law and subject to the
terms of this paragraph, shall be governed by the then current JAMS rules
governing employment disputes, and shall take place in Orange County,
California. The decision of the arbitrator shall be final and binding on all
parties to this Agreement, and judgment thereon may be entered in any court
having jurisdiction. All costs of the arbitration proceeding or litigation to
enforce this Agreement, including attorneys' fees and witness expense fees,
shall be paid as the arbitrator or court awards in accordance with applicable
law. To the extent required by law, the Company will advance fees payable to
JAMS. Except for claims for emergency equitable or injunctive relief, which
cannot be timely addressed through arbitration, this arbitration procedure is
intended to be the exclusive method of resolving any claim relating to the
obligations set forth in this Agreement. THE EMPLOYEE HEREBY WAIVES ANY RIGHT TO
A JURY TRIAL ON ANY DISPUTE OR CLAIM COVERED BY THIS PARAGRAPH WHETHER OR NOT
THE CLAIM IS ADJUDICATED IN ARBITRATION.

     9. Successors and Assigns.

     This Agreement shall be binding upon and inure to the benefit of and be
enforceable by the parties hereto and their respective successors and assigns.
Notwithstanding the foregoing, neither this Agreement nor any rights hereunder
may be assigned to any party by any party without the prior written consent of
all other parties hereto.

     10. Company Information.

     Employee acknowledges that during the term of his employment he had, and
that during the term of this Agreement and subsequent thereto may have, access
to information confidential and/or proprietary to the Company, including but not
limited to, trade secrets, technical data or know-how relating to
investigational or marketed products, research, or manufacturing processes,
information concerning the skills and qualifications of Company employees, or
any other information of a business, financial or technical nature (not already
publicly available in a reasonably integrated form), and that such information
is and will remain at all times the exclusive property of the Company. Employee
agrees to maintain such information in confidence and will not disclose such
information to anyone else, nor use it for Employee's own benefit or for the
benefit of others, except as expressly directed in writing by the Company during
the term of this Agreement or at any time thereafter. This paragraph does not
supercede any agreement relating to confidential or proprietary information
previously entered into by the Employee. Instead, any such agreement is
incorporated herein as if fully set forth.

     11. Company Property.

     Employee agrees to return all Company property on his Retirement Date. This
includes, but is not limited to, credit, phone and travel cards, building and
card keys, office equipment such as calculators, dictation equipment, computers,
modems, and all other items which are Company property. This also includes any
report, customer list, price list, files, notebooks or other materials
pertaining to the Company's business which are in Employee's possession or under
Employee's control.

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               12.  Headings.

               The headings in this Agreement are for convenience only, and
shall not be given any affect in the interpretation of this Agreement.

               13.  Entire Agreement; No Oral Modification.

               The parties each represent and warrant that no promise or
inducement has been offered or made except as set forth herein and that the
consideration stated herein is the sole consideration for this Agreement. This
Agreement may not be modified other than in writing executed by both parties and
stating its intent to modify or supersede this Agreement.

               14.  Choice of Law.

               The parties agree that this Agreement shall be construed and
enforced in accordance with federal laws and the laws of the State of
California.

               15.  Survival.

               Section 3 shall survive the termination of this Agreement.

               16.  Counterparts; Facsimile Signature.

               This Agreement may be executed in one or more counterparts, each
of which shall constitute an original but all of which shall be but one and the
same Agreement. Delivery of a facsimile signature page shall be deemed to be
delivery of a manually executed original.

               IN WITNESS WHEREOF, the parties hereto have executed this
Agreement effective on the Agreement Date, as defined above.

                                        ALLERGAN, INC.

/s/ Lester J. Kaplan                    By: /s/ David E.I. Pyott
___________________________________     ___________________________________
Employee: Lester J. Kaplan                  David E.I. Pyott

                                        Title: CHAIRMAN, PRESIDENT & CEO
                                        ___________________________________

Date: Dec. 8, 2003                      Date: 12/1/03
___________________________________     ___________________________________

                                       7exv10w1

 

Exhibit 10.1

SEVERANCE AGREEMENT

                    
THIS AGREEMENT is entered into as of December 1, 2003 by and between
AptarGroup, Inc., a Delaware corporation (the “Company”), and Lawrence
Lowrimore (the “Executive”).

                    
WHEREAS, the Executive currently serves as a key employee of the Company
and his services and knowledge are valuable to the Company in connection with
the management of one or more of the Company’s principal operating facilities,
divisions, departments or subsidiaries; and

                    
WHEREAS, the Board of Directors of the Company (the “Board”) has
determined that it is in the best interests of the Company and its stockholders
to secure the Executive’s continued services and to ensure the Executive’s
continued dedication and objectivity in the event of any threat or occurrence
of, or negotiation or other action that could lead to, or create the
possibility of, a Change in Control (as defined in Section 1) of the Company,
without concern as to whether the Executive might be hindered or distracted by
personal uncertainties and risks created by any such possible Change in
Control, and to encourage the Executive’s full attention and dedication to the
Company, the Board has authorized the Company to enter into this Agreement.

                    
NOW, THEREFORE, for and in consideration of the premises and the mutual
covenants and agreements herein contained, the Company and the Executive hereby
agree as follows:

                    1.      Definitions.     As used in this Agreement, the following terms shall have
the respective meanings set forth below:

 

 

                    
(a)      “Cause” means:     (1) a material breach by the Executive of those duties
and responsibilities of the Executive which do not differ in any material
respect from the duties and responsibilities of the Executive during the 90-day
period immediately prior to a Change in Control (other than as a result of
incapacity due to physical or mental illness) which is demonstrably willful and
deliberate on the Executive’s part, which is committed in bad faith or without
reasonable belief that such breach is in the best interests of the Company and
which is not remedied in a reasonable period of time after receipt of written
notice from the Company specifying such breach or (2) the commission by the
Executive of a felony involving moral turpitude.

                    
(b)      “Change in Control” means:

                    
(1)      the acquisition by any individual, entity or group (a “Person”),
including any “person” within the meaning of Section 13(d)(3) or 14(d)(2) of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”), of
beneficial ownership within the meaning of Rule 13d-3 promulgated under the
Exchange Act, of more than 50% of either (i) the then outstanding shares of
common stock of the Company (the “Outstanding Company Common Stock”) or (ii)
the combined voting power of the then outstanding securities of the Company
entitled to vote generally in the election of directors (the “Outstanding
Company Voting Securities”); provided, however, that the following acquisitions
shall not constitute a Change in Control: (A) any acquisition directly from the
Company (excluding any acquisition resulting from the exercise of a conversion
or exchange privilege in respect of outstanding convertible or exchangeable
securities unless such outstanding convertible or exchangeable securities were
acquired directly from the Company), (B) any acquisition by the Company, (C)
any acquisition by an employee benefit plan (or related trust) sponsored or
maintained by the Company or any corporation controlled by the Company or (D)
any acquisition by any corporation pursuant to a reorganization, merger or
consolidation involving the Company, if, immediately after such reorganization,
merger or consolidation, each of the conditions described in clauses (i), (ii)
and (iii) of subsection (3) of Section (1)(b) shall be satisfied; and provided
further that, for purposes of clause (B), if any Person (other than the Company
or any employee benefit plan (or related trust) sponsored or maintained by the
Company or any corporation controlled by the Company) shall become the
beneficial owner of more than 50% of the Outstanding Company Common Stock or
more than 50% of the Outstanding Company Voting Securities by reason of an
acquisition by the Company and such Person shall, after such acquisition by the
Company, become the beneficial owner of any additional shares

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of the Outstanding Company Common Stock or any additional Outstanding Company Voting
Securities and such beneficial ownership is publicly announced, such additional
beneficial ownership shall constitute a Change in Control;

                    
(2)      individuals who, as of the date hereof, constitute the Board (the
“Incumbent Board”) cease for any reason to constitute at least a majority of
such Board; provided, however, that any individual who becomes a
director of the Company subsequent to
the date hereof whose election, or nomination for election by the Company’s
stockholders, was approved by the vote of at least a majority of the directors
then comprising the Incumbent Board shall be deemed to have been a member of
the Incumbent Board; and provided further, that no individual who was initially
elected as a director of the Company as a result of an actual or threatened
solicitation by a Person other than the Board for the purpose of opposing a
solicitation by any other Person with respect to the election or removal of
directors or any other actual or threatened solicitation of proxies or consents
by or on behalf of any Person other than the Board shall be deemed to have been
a member of the Incumbent Board;

                    
(3)      consummation of a reorganization, merger or consolidation unless, in
any such case, immediately after such reorganization, merger or consolidation,
(i) 50% or more of the then outstanding shares of common stock of the
corporation resulting from such reorganization, merger or consolidation and 50%
or more of the combined voting power of the then outstanding securities of such
corporation entitled to vote generally in the election of directors is then
beneficially owned, directly or indirectly, by all or substantially all of the
individuals or entities who were the beneficial owners, respectively, of the
Outstanding Company Common Stock and the Outstanding Company Voting Securities
immediately prior to such reorganization, merger or consolidation and in
substantially the same proportions relative to each other as their ownership,
immediately prior to such reorganization, merger or consolidation, of the
Outstanding Company Common Stock and the Outstanding Company Voting Securities,
as the case may be, (ii) no Person (other than the Company, any employee
benefit plan (or related trust) sponsored or maintained by the Company or the
corporation resulting from such reorganization, merger or consolidation (or any
corporation controlled by the Company) and any Person which beneficially owned,
immediately prior to such reorganization, merger or consolidation, directly or
indirectly, more than 50% of the Outstanding Company Common Stock or the
Outstanding Company Voting Securities, as the case may be) beneficially owns,
directly or indirectly, more than 50% of the then outstanding shares of common
stock of such corporation or more than 50% of

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the combined voting power of the
then outstanding securities of such corporation entitled to vote generally in
the election of directors and (iii) at least a majority of the members of the
board of directors of the corporation resulting from such reorganization,
merger or consolidation were members of the Incumbent Board at the time of the
execution of the initial agreement or action of the Board providing for such
reorganization, merger or consolidation; or

                    
(4)      consummation of (i) a plan of complete liquidation or dissolution of
the Company or (ii) the sale or other disposition of all or substantially all
of the assets of the Company other than to a corporation with respect to which, immediately
after such sale or other disposition, (A) 50% or more of the then outstanding
shares of common stock thereof and 50% or more of the combined voting power of
the then outstanding securities thereof entitled to vote generally in the
election of directors is then beneficially owned, directly or indirectly, by
all or substantially all of the individuals and entities who were the
beneficial owners, respectively, of the Outstanding Company Common Stock and
the Outstanding Company Voting Securities immediately prior to such sale or
other disposition and in substantially the same proportions relative to each
other as their ownership, immediately prior to such sale or other disposition,
of the Outstanding Company Common Stock and the Outstanding Company Voting
Securities, as the case may be, (B) no Person (other than the Company, any
employee benefit plan (or related trust) sponsored or maintained by the Company
or such corporation (or any corporation controlled by the Company) and any
Person which beneficially owned, immediately prior to such sale or other
disposition, directly or indirectly, more than 50% of the Outstanding Company
Common Stock or the Outstanding Company Voting Securities, as the case may be)
beneficially owns, directly or indirectly, more than 50% of the then
outstanding shares of common stock thereof or more than 50% of the combined
voting power of the then outstanding securities thereof entitled to vote
generally in the election of directors and (C) at least a majority of the
members of the board of directors thereof were members of the Incumbent Board
at the time of the execution of the initial agreement or action of the Board
providing for such sale or other disposition.

                    
(c)      “Date of Termination” means (1) the effective date on which the
Executive’s employment by the Company terminates as specified in a prior
written notice by the Company or the Executive, as the case may be, to the
other, delivered pursuant to Section 11 or (2) if the Executive’s employment by
the Company terminates by reason of death, the date of death of the Executive.

-4-

 

 

                    
(d)      “Good Reason” means, without the Executive’s express written consent,
the occurrence of any of the following events after a Change in Control:

                    
(1)      a reduction by the Company in the Executive’s rate of annual salary in
effect immediately prior to the Change in Control;

                    
(2)      a material reduction in any benefit afforded to the Executive pursuant
to any benefit plan of the Company in effect immediately prior to the Change in
Control, unless all comparable executives of the Company suffer a substantially
similar reduction; or

                    
(3)      the relocation of the Executive’s office to a location more than 60
miles from Crystal Lake, Illinois.

                    
For purposes of this Agreement, any good faith determination of Good
Reason made by the Executive shall be conclusive; provided,
however, that an
isolated, insubstantial and inadvertent action taken in good faith and which is
remedied by the Company promptly after receipt of notice thereof given by the
Executive shall not constitute Good Reason.

                    
(e)      “Nonqualifying Termination” means a termination of the Executive’s
employment (1) by the Company for Cause, (2) by the Executive for any reason
other than a Good Reason, (3) as a result of the Executive’s death or (4) by
the Company due to the Executive’s absence from his duties with the Company on
a full-time basis for at least 180 consecutive days as a result of the
Executive’s incapacity due to physical or mental illness.

                    
(f)      “Termination Period” means the period of time beginning with a Change
in Control and ending on the earlier to occur of (1) two years following such
Change in Control and (2) the Executive’s death.

                    
2.      Obligations of the Executive.     The Executive agrees that in the event
any person or group attempts a Change in Control, he shall not voluntarily
leave the employ of the Company without Good Reason (a) until such attempted
Change in Control terminates or (b) if a Change in Control shall occur, until
90 days following such Change in Control. For purposes of clause (a) of the
preceding sentence, Good Reason shall be determined as if a Change in Control
had occurred when such attempted Change in Control became known to the Board.

                    
3.      Payments and Other Benefits Upon Termination of Employment.

-5-

 

 

                    
(a)      If during the Termination Period the employment of the Executive shall
terminate, other than by reason of a Nonqualifying Termination, then the
Company shall pay to the Executive (or the Executive’s beneficiary or estate)
within 30 days following the Date of Termination, as compensation for services
rendered to the Company:

                    
(1)      a cash amount equal to the sum of (i) the Executive’s annual bonus in
an amount at least equal to the highest annualized (for any fiscal year
consisting of less than 12 full months or with respect to which the Executive
has been employed by the Company for less than 12 full months) bonus paid or
payable, including by reason of any deferral, to the Executive by the Company
and its affiliated companies in respect of the three fiscal years of the
Company (or such portion thereof during which the Executive performed services
for the Company if the Executive shall have been employed by the Company for
less than such three fiscal year period) immediately preceding the fiscal year in
which the Change in Control occurs, multiplied by a fraction, the numerator of
which is the number of days in the fiscal year in which the termination occurs
through the Date of Termination and the denominator of which is 365 or 366, as
applicable, and (ii) any compensation previously deferred by the Executive
(together with any interest and earnings thereon) and any accrued vacation pay,
in each case to the extent not theretofore paid; plus

                    
(2)      a lump-sum cash amount (subject to any applicable payroll or other
taxes required to be withheld) in an amount equal to (i) two (2) times the
Executive’s highest annual base salary from the Company and its affiliated
companies in effect during the 12-month period prior to the Date of
Termination, plus (ii) two (2) times the Executive’s highest annualized (for
any fiscal year consisting of less than 12 full months or with respect to which
the Executive has been employed by the Company for less than 12 full months)
bonus, paid or payable, including by reason of any deferral, to the Executive
by the Company and its affiliated companies in respect of the three fiscal
years of the Company (or such portion thereof during which the Executive
performed services for the Company if the Executive shall have been employed by
the Company for less than such three fiscal year period) immediately preceding
the fiscal year in which the Change in Control occurs;
provided, however, that
any amount paid pursuant to this Section 3(a)(2) shall be paid in lieu of any
other amount of severance relating to salary or bonus continuation to be
received by the Executive upon termination of employment of the Executive under
any severance plan, policy or arrangement of the Company; plus

-6-

 

 

                    
(3)      (i) Any unpaid salary accrued through the Date of Termination and (ii)
any unpaid expenses which shall have been incurred as of the Date of
Termination.

                    
(b)      If, during the Termination Period the employment of the Executive
shall terminate, other than by reason of a Nonqualifying Termination, then the
Executive shall be entitled, to the extent provided in any benefit plan in
which the Executive has participated, to any plan benefits which by their terms
extend beyond the Date of Termination. In addition thereto, in the event of
such a termination, for a period of two years commencing on the Date of
Termination, the Company shall continue to keep in full force and effect all
policies of medical and life insurance with respect to the Executive and his
dependents with the same level of coverage, upon the same terms and otherwise
to the same extent as such policies shall have been in effect immediately prior
to the Date of Termination or, if more favorable to the Executive, as provided
generally with respect to other peer executives of the Company, and the Company
and the Executive shall share the costs of the continuation of such
insurance coverage in the same proportion as such costs were shared
immediately prior to the Date of Termination.

                    
(c)      If during the Termination Period the employment of the Executive shall
terminate by reason of a Nonqualifying Termination, then the Company shall pay
to the Executive within 30 days following the Date of Termination, a cash
amount equal to the sum of (1) the Executive’s salary from the Company and its
affiliated companies through the Date of Termination, to the extent not
theretofore paid, (2) any compensation previously deferred by the Executive
(together with any interest and earnings thereon) and any accrued vacation pay,
in each case to the extent not theretofore paid and (3) unpaid expenses which
shall have been incurred as of the Date of Termination. In addition, the
Executive shall be entitled, to the extent provided in any benefit plan in
which the Executive has participated, to any plan benefits which by their terms
extend beyond the Date of Termination.

                    
4.     Certain Additional Payments by the Company.

                    
(a)      Notwithstanding anything in this Agreement to the contrary, in the
event it shall be determined that any payment or distribution by the Company or
its affiliated companies to or for the benefit of the Executive (whether paid
or payable or distributed or distributable pursuant to the terms of this
Agreement or otherwise, but determined without regard to any additional
payments required under this Section 4) (a “Payment”) would be subject to the
excise tax imposed by Section 4999 of the

-7-

 

 

Internal Revenue Code of 1986, as
amended (the “Code”), or any interest or penalties are incurred by the
Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the
“Excise Tax”), then the Executive shall be entitled to receive an additional
payment (a “Gross-Up Payment”) in an amount such that after payment by the
Executive of all taxes (including any interest or penalties imposed with
respect to such taxes), including, without limitation, any income taxes (and
any interest and penalties imposed with respect thereto) and Excise Tax imposed
upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the Payments. Notwithstanding the
foregoing provisions of this Section 4(a), if it shall be determined that the
Executive is entitled to a Gross-Up Payment, but that the Executive, after
taking into account the Payments and the Gross-Up Payment, would not receive a
net after-tax benefit of at least $50,000 (taking into account both income
taxes and any Excise Tax) as compared to the net after-tax proceeds to the
Executive resulting from an elimination of the Gross-Up Payment and a reduction
of the Payments, in the aggregate, to an amount (the “Reduced Amount”) such
that the receipt of Payments would not give rise to any Excise Tax, then no
Gross-Up Payment shall be made to the
Executive and the Payments, in the aggregate, shall be reduced to the
Reduced Amount.

                    
(b)      Subject to the provisions of Section 4(c), all determinations required
to be made under this Section 4, including whether and when a Gross-Up Payment
is required and the amount of such Gross-Up Payment and the assumptions to be
utilized in arriving at such determination, shall be made by the Company’s
public accounting firm (the “Accounting Firm”) which shall provide detailed
supporting calculations both to the Company and the Executive within 15
business days of the receipt of notice from the Executive that there has been a
Payment, or such earlier time as is requested by the Company. In the event
that the Accounting Firm is serving as accountant or auditor for the
individual, entity or group effecting the Change in Control, the Executive
shall appoint another nationally recognized public accounting firm to make the
determinations required hereunder (which accounting firm shall then be referred
to as the Accounting Firm hereunder). All fees and expenses of the Accounting
Firm shall be borne solely by the Company. Any Gross-Up Payment, as determined
pursuant to this Section 4 shall be paid by the Company to the Executive within
five days of the receipt of the Accounting Firm’s determination. If the
Accounting Firm determines that no Excise Tax is payable by the Executive, it
shall furnish the Executive with a written opinion that failure to report the
Excise Tax on the Executive’s

-8-

 

 

applicable federal income tax return would not
result in the imposition of a negligence or similar penalty. Any determination
by the Accounting Firm shall be binding upon the Company and the Executive. As
a result of the uncertainty in the application of Section 4999 of the Code at
the time of the initial determination by the Accounting Firm hereunder, it is
possible that Gross-Up Payments which will not have been made by the Company
should have been made (“Underpayment”), consistent with the calculations
required to be made hereunder. In the event that the Company exhausts its
remedies pursuant to Section 4(c) and the Executive thereafter is required to
make a payment of any Excise Tax, the Accounting Firm shall determine the
amount of the Underpayment that has occurred and any such Underpayment shall be
promptly paid by the Company to or for the benefit of the Executive.

                    
(c)      The Executive shall notify the Company in writing of any claim by the
Internal Revenue Service that, if successful, would require the payment by the
Company of the Gross-Up Payment. Such notification shall be given as soon as
practicable but no later than 10 business days after the Executive is informed
in writing of such claim and shall apprise the Company of the nature of such
claim and the date on which such claim is requested to be paid. The Executive
shall not pay such claim prior to the expiration of the 30-day period following
the date on which the Executive gives such notice to the Company (or such
shorter period ending on the date that any payment of taxes with respect to
such claim is due). If the Company notifies the Executive in writing prior
to the expiration of such period that it desires to contest such claim, the Executive shall:

                    
(1)      give the Company any information reasonably requested by the Company
relating to such claim,

                    
(2)      take such action in connection with contesting such claim as the
Company shall reasonably request in writing from time to time, including,
without limitation, accepting legal representation with respect to such claim
by an attorney reasonably selected by the Company,

                    
(3)      cooperate with the Company in good faith in order effectively to
contest such claim, and

                    
(4)      permit the Company to participate in any proceedings relating to such
claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an
after-tax basis,

-9-

 

 

for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses. Without limitation on the foregoing provisions
of this Section 4(c) the Company shall control all proceedings taken in
connection with such contest and, at its sole option, may pursue or forgo any
and all administrative appeals, proceedings, hearings and conferences with the
taxing authority in respect of such claim and may, at its sole option, either
direct the Executive to pay the tax claimed and sue for a refund or contest the
claim in any permissible manner, and the Executive agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of
initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided further, that if the Company directs the Executive to pay
such claim and sue for a refund, the Company shall advance the amount of such
payment to the Executive on an interest-free basis and shall indemnify and hold
the Executive harmless, on an after-tax basis, from any Excise Tax or income
tax (including interest or penalties with respect thereto) imposed with respect
to such advance or with respect to any imputed income with respect to such
advance; and provided further, that any extension of the statute of limitations
relating to payment of taxes for the taxable year of the Executive with respect
to which such contested amount is claimed to be due is limited solely to such
contested amount. Furthermore, the Company’s control of the contest shall be
limited to issues with respect to which a Gross-Up Payment would be payable
hereunder and the Executive shall be entitled to settle or contest, as the case
may be, any other issue raised by the Internal Revenue Service or any other
taxing authority.

                    
(d)      If, after the receipt by the Executive of an amount advanced by the
Company pursuant to Section 4(c), the Executive becomes entitled to receive,
and receives, any refund with respect to such claim, the Executive shall
(subject to the Company’s complying with the requirements of Section 4(c))
promptly pay to the Company the amount of such refund (together with any
interest paid or credited thereon after taxes applicable thereto). If, after
the receipt by the Executive of an amount advanced by the Company pursuant to
Section 4(c), a determination is made that the Executive shall not be entitled
to any refund with respect to such claim and the Company does not notify the
Executive in writing of its intent to contest such denial of refund prior to
the expiration of 30 days after such determination, then such advance shall be
forgiven and shall not be required to be repaid and the amount of such advance
shall offset, to the extent thereof, the amount of Gross-Up Payment required to
be paid.

-10-

 

                    
5.      Withholding Taxes.     The Company may withhold from all payments due to
the Executive (or his beneficiary or estate) hereunder all taxes which, by
applicable federal, state, local or other law, the Company is required to
withhold therefrom.

                    
6.      Reimbursement of Expenses.     If any contest or dispute shall arise under
this Agreement involving termination of the Executive’s employment with the
Company or involving the failure or refusal of the Company to perform fully in
accordance with the terms hereof, the Company shall reimburse the Executive, on
a current basis, for all legal fees and expenses, if any, incurred by the
Executive in connection with such contest or dispute, together with interest in
an amount equal to the Reference Rate of Bank of America from time to time in
effect, but in no event higher than the maximum legal rate permissible under
applicable law, such interest to accrue from the date the Company receives the
Executive’s statement for such fees and expenses through the date of payment
thereof; provided, however, that in the event the resolution of any such
contest or dispute includes a finding denying, in total, the Executive’s claims
in such contest or dispute, the Executive shall be required to reimburse the
Company, over a period of 12 months from the date of such resolution, for all
sums advanced to the Executive pursuant to this Section 6.

                    
7.      Operative Event.     Notwithstanding any provision herein to the contrary,
no amounts shall be payable hereunder unless and until there is a Change in
Control at a time when the Executive is employed by the Company.

                    
8.      Termination of Agreement.     (a)     This Agreement shall be effective on
the date hereof and shall continue until terminated by the Company as provided
in paragraph (b) of this Section 8; provided,
however, that this Agreement
shall terminate in any event upon the first to occur of (i) the Executive’s
death and (ii) termination of the Executive’s employment with the Company prior
to a Change in Control.

                    
(b)     The Company shall have the right prior to a Change in Control, in its
sole discretion, pursuant to action by the Board, to approve the termination of
this Agreement, which termination shall not become effective until the date
fixed by the Board for such termination, which date shall be at least 120 days
after notice thereof is given by the Company to the Executive in accordance
with Section 11; provided, however, that no such action shall be taken by the
Board during any period of time when the Board has knowledge that any person
has taken steps reasonably calculated to effect a Change in Control until, in
the opinion of the Board, such person has abandoned or terminated its

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efforts
to effect a Change in Control; and provided further, that in no event shall
this Agreement be terminated in the event of a Change in Control.

                    
9.      Scope of Agreement.     Nothing in this Agreement shall be deemed to
entitle the Executive to continued employment with the Company or its
subsidiaries, and if the Executive’s employment with the Company shall
terminate prior to a Change in Control, then the Executive shall have no
further rights under this Agreement; provided, however, that any termination of
the Executive’s employment following a Change in Control shall be subject to
all of the provisions of this Agreement.

                    
10.      Successors; Binding Agreement.

                    
(a)     This Agreement shall not be terminated by any merger or consolidation
of the Company whereby the Company is or is not the surviving or resulting
corporation or as a result of any transfer of all or substantially all of the
assets of the Company. In the event of any such merger, consolidation or
transfer of assets, the provisions of this Agreement shall be binding upon the
surviving or resulting corporation or the person or entity to which such assets
are transferred.

                    
(b)      The Company agrees that concurrently with any merger, consolidation or
transfer of assets referred to in paragraph (a) of this Section 10, it will
cause any successor or transferee unconditionally to assume, by written
instrument delivered to the Executive (or his beneficiary or estate), all of
the obligations of the Company hereunder. Failure of the Company to obtain
such assumption prior to the effectiveness of any such merger, consolidation or
transfer of assets shall be a breach of this Agreement and shall entitle the
Executive to compensation and other benefits from the Company in the same
amount and on the same terms as the Executive would be entitled hereunder if
the Executive’s employment were terminated following a Change in Control other
than by reason of a Nonqualifying Termination. For purposes of implementing
the foregoing, the date on which any
such merger, consolidation or transfer becomes effective shall be deemed
the Date of Termination.

                    
(c)     This Agreement shall inure to the benefit of and be enforceable by the
Executive’s personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees. If the Executive shall
die while any amounts would be payable to the Executive hereunder had the
Executive continued to live, all such amounts, unless otherwise provided
herein, shall be paid in accordance with the terms of this Agreement to such
person or persons appointed in

-12-

 

writing by the Executive to receive such amounts
or, if no person is so appointed, to the Executive’s estate.

                    
11.     Notices.     (a)     For purposes of this Agreement, all notices and other
communications required or permitted hereunder shall be in writing and shall be
deemed to have been duly given when delivered or five days after deposit in the
United States mail, certified and return receipt requested, postage prepaid,
addressed (1) if to the Executive, to 314 N. Valley Hill Rd., Woodstock, IL
60098, and if to the Company, to AptarGroup, Inc., 475 West Terra Cotta Avenue,
Suite E, Crystal Lake, Illinois 60014, attention: Stephen J. Hagge, Executive
Vice President, Chief Financial Officer, and Secretary, or (2) to such other
address as either party may have furnished to the other in writing in
accordance herewith, except that notices of change of address shall be
effective only upon receipt.

                    
(b)      A written notice of the Executive’s Date of Termination by the Company
or the Executive, as the case may be, to the other, shall (i) indicate the
specific termination provision in this Agreement relied upon, (ii) to the
extent applicable, set forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive’s employment under
the provision so indicated and (iii) specify the termination date (which date
shall be not less than 15 days after the giving of such notice). The failure
by the Executive or the Company to set forth in such notice any fact or
circumstance which contributes to a showing of Good Reason or Cause shall not
waive any right of the Executive or the Company hereunder or preclude the
Executive or the Company from asserting such fact or circumstance in enforcing
the Executive’s or the Company’s rights hereunder.

                    
12.     Full Settlement; Resolution of Disputes.     (a)     The Company’s obligation
to make any payments provided for in this Agreement and otherwise to perform
its obligations hereunder shall not be affected by any set-off, counterclaim,
recoupment, defense or other claim, right or action which the Company may have
against the Executive or others. In no event shall the Executive be obligated
to seek other employment or take any other action by way of mitigation of the
amounts payable to the Executive under any of the provisions of this Agreement
and, such
amounts shall not be reduced whether or not the Executive obtains other
employment.

                    
(b)     If there shall be any dispute between the Company and the Executive in
the event of any termination of the Executive’s employment, then, unless and
until there is a final, nonappealable judgment by a court of competent
jurisdiction

-13-

 

 

declaring that such termination was for Cause, that the
determination by the Executive of the existence of Good Reason was not made in
good faith, or that the Company is not otherwise obligated to pay any amount or
provide any benefit to the Executive and his dependents or other beneficiaries,
as the case may be, under Section 3(a) or 3(b), the Company shall pay all
amounts, and provide all benefits, to the Executive and his dependents or other
beneficiaries, as the case may be, that the Company would be required to pay or
provide pursuant to Section 3(a) or 3(b) as though such termination were by the
Company without Cause or by the Executive with Good Reason; provided, however,
that the Company shall not be required to pay any disputed amounts pursuant to
this Section 12(b) except upon receipt of an undertaking by or on behalf of the
Executive to repay all such amounts to which the Executive is ultimately
adjudged by such court not to be entitled.

                    
13.     Employment with Subsidiaries.     Employment with the Company for
purposes of this Agreement shall include employment with any corporation or
other entity in which the Company has a direct or indirect ownership interest
of 50% or more of the total combined voting power of the then outstanding
securities of such corporation or other entity entitled to vote generally in
the election of directors.

                    
14.     Governing Law; Validity.     The interpretation, construction and
performance of this Agreement shall be governed by and construed and enforced
in accordance with the internal laws of the State of Illinois without regard to
the principle of conflicts of laws. The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement, which other provisions shall remain in
full force and effect.

                    
15.     Counterparts.     This Agreement may be executed in two or more
counterparts, each of which shall be deemed to be an original and all of which
together shall constitute one and the same instrument.

                    
16.     Miscellaneous.     No provision of this Agreement may be modified or
waived unless such modification or waiver is agreed to in writing and signed by
the Executive and by a duly authorized officer of the Company. No waiver by
either party hereto at any time of any breach by the other party hereto of, or
compliance with, any condition or provision of this Agreement to be performed
by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior
or subsequent time. Failure by the Executive or the Company to insist upon
strict compliance with any provision of

-14-

 

this Agreement or to assert any right
the Executive or the Company may have hereunder, including, without limitation,
the right of the Executive to terminate employment for Good Reason, shall not
be deemed to be a waiver of such provision or right or any other provision or
right of this Agreement. The rights of, and benefits payable to, the
Executive, his estate or his beneficiaries pursuant to this Agreement are in
addition to any rights of, or benefits payable to, the Executive, his estate or
his beneficiaries under any other employee benefit plan or compensation program
of the Company.

                    
IN WITNESS WHEREOF, the Company has caused this Agreement to be executed
by a duly authorized officer of the Company and the Executive has executed this Agreement as of the day and
year first above written.

	 	 	 	 	 
	

	 	APTARGROUP, INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	
 
	

	 	Name:

Title:
	 	Carl A. Siebel

President and Chief

Executive Officer
	 
	 	 	 	 
	

	 	EXECUTIVE
	 
	 	 	 	 
	

	 	
 
	

	 	 	Lawrence Lowrimore

-15-

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