Document:

exv10w21

 

Exhibit 10.21

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT between AptarGroup, Inc., a Delaware corporation
(the “Company”), and Patrick F. Doherty (the “Executive”) is entered into on
December 1, 2003. In consideration of the covenants contained herein, the
parties agree as follows:

     1. Employment. The Company shall employ the Executive, and the Executive
agrees to be employed by the Company, upon the terms and subject to the
conditions set forth herein for the period beginning on December 1, 2003 and
ending on December 1, 2006, unless earlier terminated pursuant to Section 4
hereof; provided, however, that such term shall automatically be extended as of
each December 1, commencing December 1, 2004, for one additional year unless
either the Company or the Executive shall have terminated this automatic
extension provision by written notice to the other party at least 30 days prior
to the automatic extension date; and provided further that in no event shall
such term extend beyond December 1, 2013. The term of employment in effect
from time to time hereunder is hereinafter called the “Employment Period.”

     2. Position and Duties. During the Employment Period, the Executive shall
serve as the President of SeaquistPerfect Dispensing LLC or in such other
executive position as determined by the Chief Executive Officer of the Company
(the “Company CEO”) and shall have the normal duties, responsibilities and
authority of an executive serving in such position, subject to the direction of
the Company CEO. The Executive shall have the title of President or such other
title denoting an executive office as determined by the Company CEO and shall
report to the Company CEO or such other executive officer of the Company as
determined by the Company CEO. During the Employment Period, the Executive
shall devote his best efforts and his full business time to the business and
affairs of the Company.

     3. Compensation and Benefits. (a) The Company shall pay the Executive a
salary during the Employment Period, in monthly installments, initially at the
rate of $260,000 per annum. The Company CEO may, in his sole discretion (i)
increase (but not decrease) such salary from time to time and (ii) award a
bonus to the Executive for any calendar year during the Employment Period.

     (b) The Company shall reimburse the Executive for all reasonable expenses
incurred by him in the course of performing his duties under this Agreement
which are consistent with the Company’s policies in effect from time to time.

     (c) During the Employment Period, the Executive shall be entitled to
participate in the Company’s executive benefit programs on the same basis as
other executives of the Company having the same level of responsibility, which
programs consist of those benefits (including insurance, vacation, company car
or car allowance and/or other benefits) for which substantially all of the
executives of the Company are from time to time generally eligible, as
determined from time to time by the Board of Directors of the Company (the
“Board”).

 

 

     (d) In addition to participation in the Company’s executive benefit
programs pursuant to Section 3(c), the Executive shall be entitled during the
Employment Period to:

	 	(i)	 	additional term life insurance
coverage in an amount equal to the Executive’s salary,
but only if and so long as such additional coverage is
available at standard rates from the insurer providing
term life insurance coverage under the executive benefit
programs or a comparable insurer acceptable to the
Company; provided, that if the Executive is not
participating in such additional life insurance coverage
and if the Employment Period ends on account of the
Executive’s death, the Company shall pay to the
Executive’s estate (or such person or persons as the
Executive may designate in a written instrument signed
by him and delivered to the Company prior to his death)
amounts equal to one-half of the amounts the Executive
would have received as salary (based on the Executive’s
salary then in effect) had the Employment Period
remained in effect until the second anniversary of the
date of the Executive’s death, at the times such amounts
would have been paid.
	 
	 	(ii)	 	supplementary long-term disability
coverage in an amount which will increase maximum
covered annual compensation to 66 2/3% of the
executive’s annual salary; but only if and so long as
supplementary coverage is available at standard rates
from the insurer providing long-term disability coverage
under the executive benefit program or a comparable
insurer acceptable to the Company.

     4. Termination of Employment. (a) The Employment Period shall end upon
the first to occur of: (i) the expiration of the term of this Agreement
pursuant to Section 1 hereof, (ii) retirement of the Executive at
(“Retirement”), (iii) termination of the Executive’s employment by the Company
on account of the Executive’s having become unable (as determined by the Board
in good faith) to regularly perform his duties hereunder by reason of illness
or incapacity for a period of more than six consecutive months (“Termination
for Disability”), (iv) termination of the Executive’s employment by the Company
for Cause (“Termination for Cause”), (v) termination of the executive’s
employment by the Company other than a Termination for Disability or a
Termination for Cause (“Termination Without Cause”), (vi) the Executive’s death
or (vii) termination of the Executive’s employment by the Executive for any
reason following written notice to the Company at least 90 days prior to the
date of such termination (“Termination by the Executive”).

     (b) For purposes of this Agreement, “Cause” shall mean (i) the commission
of a felony involving moral turpitude, (ii) the commission of a fraud, (iii)
the commission of any act involving dishonesty with respect to the Company or
any of its subsidiaries or affiliates, (iv) gross negligence or willful
misconduct with respect to the Company or any of its subsidiaries or
affiliates, (v) breach of any provision of Section 5 or Section 6 hereof or
(vi) any other breach of this Agreement which is material and which is not
cured within 30 days following written notice thereof to the Executive by the
Company.

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     (c) If the Employment Period ends for any reason set forth in Section
4(a), except as otherwise provided in this Section 4, the Executive shall cease
to have any rights to salary, bonus (if any) or benefits hereunder, other than
(i) any unpaid salary accrued through the date of such termination, (ii) any
bonus payable, but only if such termination occurs during the third or fourth
quarter of the Company’s fiscal year, such bonus to be prorated in accordance
with Company policy, (iii) any unpaid expenses which shall have been incurred
as of the date of such termination and (iv) to the extent provided in any
benefit plan in which the Executive has participated, any plan benefits which
by their terms extend beyond termination of the Executive’s employment.
Notwithstanding the foregoing, if the Employment Period ends on account of
Termination by the Executive other than for Good Reason (as defined in Section
4(i) hereof) pursuant to Section 4(h) hereof or Termination for Cause, the
Executive shall not be entitled to any unpaid bonus accrued through the date of
such termination.

     (d) If the Employment Period ends on account of Retirement, the Company
shall make no payments to the Executive other than as provided in Section 4(c)
hereof.

     (e) If the Employment Period ends on account of Termination for
Disability, in addition to the amounts described in Section 4(c) hereof, the
Executive shall receive the disability benefits to which he is entitled under
any disability benefit plan in which the Executive has participated as an
employee of the Company.

     (f) If the Employment Period ends on account of the Executive’s death, the
Company shall pay to the Executive’s estate (or such person or persons as the
Executive may designate in a written instrument signed by him and delivered to
the Company prior to his death) amounts equal to one-half of the amounts the
Executive would have received as salary (based on the Executive’s salary then
in effect) had the Employment Period remained in effect until the second
anniversary of the date of the Executive’s death, at the times such amounts
would have been paid.

     (g) If the Employment Period ends on account of Termination without Cause,
in addition to the amounts described in Section 4(c) hereof, the Company shall
pay to the Executive amounts equal to the amounts the Executive would have
received as salary (based on the Executive’s salary then in effect) had the
Employment Period remained in effect until the date on which (without any
extension thereof, or, if previously extended, without any further extension
thereof) it was then scheduled to end, at the times such amounts would have
been paid, less any payments to which the Executive shall be entitled during
such salary continuation period under any disability benefit plan in which the
Executive has participated as an employee of the Company; provided, however,
that in the event of the Executive’s death during the salary continuation
period, the Company shall pay to the Executive’s estate (or such person or
persons as the Executive may designate in a written instrument signed by him
and delivered to the Company prior to his death) amounts during the remainder
of the salary continuation period equal to one-half of the amounts which would
have been paid to the Executive but for his death. It is expressly understood
that the Company’s payment obligations under this Section 4(g) shall cease in
the event the Executive shall breach any provision of Section 5 or Section 6
hereof.

     (h) Notwithstanding the foregoing provisions of this Section 4, in the
event of a Change in Control (as defined in Appendix A hereto), the employment
of the Executive

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hereunder shall not be terminated by the Company or any successor to the
Company within two years following such Change in Control unless the Executive
receives written notice of such termination from the Company or such successor
at least 30 days prior to the date of such termination. In the event of such
termination of employment by the Company or such successor other than a
Termination for Cause, Retirement, a Termination for Disability or due to the
Executive’s death (in which case the provisions of Section 4(c), 4(d), 4(e) or
4(f), as the case may be, shall apply), within two years following a Change in
Control, or in the event that the Executive terminates his employment hereunder
for Good Reason (as defined in Section 4(i) hereof) within two years following
a Change in Control:

   (1) the Company shall pay to the Executive within 30 days following
the date of termination, in addition to the amounts and benefits
described in Sections 4(c)(i), (iii) and (iv) hereof:

      (A) 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 Change in
Control 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

      (B) 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 4(h)(1)(B) 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; and

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   (2) 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, disability 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.

The Executive agrees that he shall not terminate his employment hereunder,
other than for Good Reason, within one year following a Change in Control
unless the Company or any successor to the Company receives written notice of
such termination from the Executive at least six months prior to the date of
such termination.

     (i) For purposes of this Agreement “Good Reason” shall mean (x) a
reduction by the Company in the Executive’s rate of annual salary in effect
immediately prior to the Change in Control, (y) 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 (z) the
relocation of the Executive’s office to a location more than 60 miles from his
current office.

     (j) 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(j) or Appendix B hereto) (a “Payment”)
would be subject to the excise tax imposed by Section 4999 of the 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(j), 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.
All procedures relating to the determination and payment of the Gross-Up
Payment are set forth in Appendix B hereto.

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     (k) If the Employment Period ends solely on account of the expiration of
the term of this Agreement pursuant to Section 1 hereof and not for any other
reason set forth in this Section 4, the Executive shall be entitled to receive
the amounts the Executive would have received as salary (based on the
Executive’s salary then in effect) at the times such amounts would otherwise
have been paid, and the medical and life insurance benefits the Executive and
his dependents otherwise would have received, had the Employment Period
remained in effect for one year following the date of such termination. It is
expressly understood that the Company’s payment obligations under this Section
4(k) shall cease in the event the Executive shall breach any provision of
Section 5 or Section 6 hereof.

     5. Confidential Information. The Executive acknowledges that the
information, observations and data obtained by him while employed by the
Company pursuant to this Agreement, as well as those obtained by him while
employed by the Company or any of its subsidiaries or affiliates or any
predecessor thereof prior to the date of this Agreement, concerning the
business or affairs of the Company or any of its subsidiaries or affiliates or
any predecessor thereof (“Confidential Information”) are the property of the
Company or such subsidiary or affiliate. Therefore, the Executive agrees that
he shall not disclose to any unauthorized person or use for his own account any
Confidential Information without the prior written consent of the Company CEO
unless and except to the extent that such Confidential Information becomes
generally known to and available for use by the public other than as a result
of the Executive’s acts or omissions to act. The Executive shall deliver to
the Company at the termination of the Employment Period, or at any other time
the Company may request, all memoranda, notes, plans, records, reports,
computer tapes and software and other documents and data (and copies thereof)
relating to the Confidential Information or the business of the Company or any
of its subsidiaries or affiliates which he may then possess or have under his
control.

     6. Noncompetition; Nonsolicitation. (a) The Executive acknowledges that
in the course of his employment with the Company pursuant to this Agreement he
will become familiar, and during the course of his employment by the Company or
any of its subsidiaries or affiliates or any predecessor thereof prior to the
date of this Agreement he has become familiar, with trade secrets and customer
lists of and other confidential information concerning the Company and its
subsidiaries and affiliates and predecessors thereof and that his services have
been and will be of special, unique and extraordinary value to the Company.

     (b) The Executive agrees that during the Employment Period and for one
year thereafter in the case of either Termination for Good Reason following a
Change in Control or Termination without Cause, or for two years thereafter in
the case of termination of employment for any other reason, the
(“Noncompetition Period’) he shall not in any manner, directly or indirectly,
through any person, firm or corporation, alone or as a member of a partnership
or as an officer, director, stockholder, investor or employee of or in any
other corporation or enterprise or otherwise, engage or be engaged, or assist
any other person, firm corporation or enterprise in engaging or being engaged,
in any business then actively being conducted by the Company in any geographic
area in which the Company is conducting such business (whether through
manufacturing or production, calling on customers or prospective customers, or
otherwise). Notwithstanding the foregoing, subsequent to the Employment Period
the Executive may engage or be engaged, or assist any other person, firm,
corporation or enterprise in engaging or being engaged, in any business
activity which is not competitive with a business activity being

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conducted by the Company at the time subsequent to the Employment Period
that the Executive first engages or assists in such business activity.

     (c) The Executive further agrees that during the Noncompetition Period he
shall not in any manner, directly or indirectly (i) induce or attempt to induce
any employee of the Company or of any of its subsidiaries or affiliates to
terminate or abandon his employment, or any customer of the Company or any of
its subsidiaries or affiliates to terminate or abandon its relationship, for
any purpose whatsoever, or (ii) in connection with any business to which
Section 6(b) applies, call on, service, solicit or otherwise do business with
any then current or prospective customer of the Company or of any of its
subsidiaries or affiliates.

     (d) Nothing in this Section 6 shall prohibit the Executive from being (i)
a stockholder in a mutual fund or a diversified investment company or (ii) a
passive owner of not more than 2% of the outstanding stock of any class of a
corporation any securities of which are publicly traded, so long as the
Executive has no active participation in the business of such corporation.

     (e) If, at the time of enforcement of this Section 6, a court holds that
the restrictions stated herein are unreasonable under circumstances then
existing, the parties hereto agree that the maximum period, scope or
geographical area reasonable under such circumstances shall be substituted for
the stated period, scope or area and that the court shall be allowed to revise
the restrictions contained herein to cover the maximum period, scope and area
permitted by law.

     7. Enforcement. Because the services of the Executive are unique and the
Executive has access to confidential information of the Company, the parties
hereto agree that the Company would be damaged irreparably in the event any
provision of Section 5 or Section 6 hereof were not performed in accordance
with its terms or were otherwise breached and that money damages would be an
inadequate remedy for any such nonperformance or breach. Therefore, the
Company or its successors or assigns shall be entitled, in addition to other
rights and remedies existing in their favor, to an injunction or injunctions to
prevent any breach or threatened breach of any of such provisions and to
enforce such provisions specifically (without posting a bond or other
security).

     8. Survival. Sections 5, 6 and 7 hereof shall survive and continue in
full force and effect in accordance with their respective terms,
notwithstanding any termination of the Employment Period.

     9. Notices. Any notice provided for in this Agreement shall be in writing
and shall be either personally delivered, or sent by certified mail, return
receipt requested, postage prepaid, addressed (a) if to the Executive, to 4614
Amy Dr., Crystal Lake, IL 60014, 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 (b) to such other address as either party shall have furnished to
the other in accordance with this Section 9.

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     10. 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 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.

     11. Entire Agreement. This Agreement constitutes the entire agreement and
understanding between the parties with respect to the subject matter hereof and
supersedes and preempts any prior understandings, agreements or representations
by or between the parties, written or oral, which may have related in any
manner to the subject matter hereof.

     12. Successors and Assigns. This Agreement shall inure to the benefit of
and be enforceable by the Executive and his heirs, executors and personal
representatives, and the Company and its successors and assigns. Any successor
or assignee of the Company shall assume the liabilities of the Company
hereunder.

     13. Governing Law. This Agreement shall be governed by the internal laws
(as opposed to the conflicts of law provisions) of the State of Illinois.

     14. Amendment and Waiver. The provisions of this Agreement may be amended
or waived only with the prior written consent of the Company and the 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.

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

	 	 	 	 	 
	 	APTARGROUP, INC.

 

 	 
	 	By:  	/s/ Carl A. Siebel
 	 
	 	Name:  	 	Carl A. Siebel 	 
	 	Title:  	 	President and Chief Executive Officer 	 
	 
	 	EXECUTIVE:

 

 	 
	 	 	 	/s/ Patrick F. Doherty
 	 
	 	 	 	Patrick F. Doherty 	 
	 	 	 
	 

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Appendix A to

Employment Agreement

DEFINITION OF CHANGE IN CONTROL

     “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 this Appendix A 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 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;

A-1

 

     (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 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.

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Appendix B to

Employment Agreement

PROVISIONS RELATING TO

GROSS-UP PAYMENT

     (a) Subject to the provisions of Paragraph (b) of this Appendix B, all
determinations required to be made under Section 4(j), 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 Section 4(j) and this Appendix B 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 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 Paragraph (b) of this
Appendix B 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.

     (b) 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:

B-1

 

     (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, 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 Paragraph (b), 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.

     (c) If, after the receipt by the Executive of an amount advanced by the
Company pursuant to Paragraph (b) of this Appendix B, 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
Paragraph (b)) 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 Paragraph (b) of this Appendix B, 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.

B-2exv10w22

 

Exhibit 10.22

Permanent Employment Contract

Between

Seaquist Perfect Dispensing SAS,

Registered Office: 11C quai Conti, Louveciennes (78430), France.

Company registration number: 510783500033L

Represented by François Boutan, acting as “Président",

and

Mr. Jacques Blanié,

Address: 9 chemin de la Coulette, L’Etang-le-Ville (78620), France.

Social security number: 1 46 11 47 001 004 61,

French nationality

The parties hereto agree as follows:

Article 1 – General Context

The company Seaquist Perfect Dispensing SAS is a member of the AptarGroup
group.

Jacques BLANIE has been employed by the subsidiaries and affiliates of the
AptarGroup since July 1st, 1973.

On July 1st, 1986, he was appointed as “Geschäftsführer” of Seaquist Perfect
Dispensing GmbH in Germany.

Jacques BLANIE also managed the sub-division “Seaquist Perfect Dispensing
France” which was created in 1996 as part of the French company VALOIS. He
received by way of compensation for this responsibility a subsidiary salary
paid directly by VALOIS. The Seaquist Perfect Dispensing France sub-division
had grown significantly since then, and in 2002, it was transformed into a full
and separate legal entity, known as SEAQUIST PERFECT DISPENSING SAS.

Consequent to this reorganization and to the fact that this activity had become
predominant in Jacques Blanié’s career, it was decided that the new French
company, SEAQUIST PERFECT DISPENSING SAS, would be Jacques Blanié’s main
Employer as from January 1st, 2003, and that the German function of
"Geschäftsführer” of Seaquist Perfect Dispensing GmbH would become a subsidiary
employment.

Article 2 – Collective Bargaining Agreement

This contract is governed by the French Collective Bargaining Agreement of the
Plastic Industry and by the internal rules of SEAQUIST PERFECT DISPENSING SAS.

Given that SEAQUIST PERFECT DISPENSING SAS is a subsidiary of AptarGroup, Inc.,
and the nature of Mr. Blanié’s functions, this contract shall also be bound by
rules and policies directly issued by AptarGroup, Inc. in respect of executives
of the group.

Page 1 of 5

 

Article 3 – Functions

Jacques Blanié holds the position of Directeur Délégué of SEAQUIST PERFECT
DISPENSING SAS.

Jacques Blanié reports to the Company’s “Président”. Moreover, given that the
AptarGroup is organized into several divisions, and given that SEAQUIST PERFECT
DISPENSING SAS is related to the SeaquistPerfect Division, Mr Jacques Blanié
shall also report, for operational purposes, to Mr. Patrick Doherty, who is
President of the aforementioned division.

Mr. Jacques Blanié’s functions may evolve according to the organization and the
activities of the SeaquistPerfect division, and according to those of the
AptarGroup in general.

Mr. Jacques Blanié’s is classified as executive, “VII C, 880” of the French
Collective Bargaining Agreement of the Plastic Industry

Article 4 – Term of Contract – Period of Notice

This contract shall remain in full force and effect for an unlimited period. It
is effective as of January 1, 2003.

Each party has the right to terminate this contract according to the conditions
in this respect provided for by the law and subject, except in the event of
gross misconduct, to the legal and conventional provisions in respect of
notification of dismissal or resignation.

Article 5 – Compensation

Jacques Blanié will receive a base gross annual salary equal to €120,000 (One
Hundred and Twenty Thousand Euros), settled in 12 (twelve) equal monthly
payments, in addition to which, he is entitled to the usual AptarGroup annual
bonus for executives.

Article 6 – Seniority

Jacques Blanié was hired on July 1, 1973. His seniority within the AptarGroup
shall be taken into account as far as rights and obligations are concerned.

Article 7 – Place of Work

Jacques Blanié’s main place of work is the Company’s registered office.

Depending on the needs of the position he holds, Jacques Blanié may undertake
business trips and temporary missions, either in France or abroad; such
business trips shall not bring about any change of place of residence or any
additional compensation, but will be subject to reimbursement of professional
expenses on presentation of the corresponding receipts.

Moreover, it is obvious that for reasons relating to the organization and the
smooth functioning of the Company, Jacques Blanié’s main place of work could be
transferred in France, in case a new establishment is set up or in case the
main place of business of SEAQUIST PERFECT DISPENSING SAS is transferred. Such
transfer shall comply with the AptarGroup’s relocating policy.

Given the level of initiative that is required by the position that Jacques
Blanié holds, the latter should devote all the time that is necessary in this
respect.

Page 2 of 5

 

Article 8 – Vacation

Jacques Blanié benefits from the same rights in respect of paid vacation as
what is common to all employees of the Company. If these rights differ from
those in Seaquist Perfect Dispensing GmbH, the most favorable will apply.

Article 9 – Terms and Conditions

Jacques Blanié shall strictly and absolutely refrain from disclosing any
information or confidential material he might obtain in the course of his
function, regardless of their nature or origin. This obligation shall survive
and continue in full force and effect despite termination and regardless of the
reason of its termination.

Jacques Blanié is also bound by the various AptarGroup policies that affect the
category of executives he belongs to, such as, and without limitation, the
“Conflict of Interest Policy” and “Insider Trader Policy”.

Finally, Jacques Blanié shall inform the Company, without delay, of any change
that might occur in respect of his civil status, family situation, address,
military status, etc...

Article 10 – Intellectual Property

During the term of the present contract, Jacques Blanié hereby agrees and
acknowledges, without reservation or exception, and without any additional
compensation other than what is provided for in this contract:

	 	•	 	To inform the Company of all inventions, improvements or plans
carried out by himself;
	 
	 	•	 	To vest in the Company or in any company within AptarGroup
requesting it, the exclusive ownership in France or abroad of such
inventions, improvements or plans;
	 
	 	•	 	To fill in for that purpose all formalities and procedures
necessary to allow the Company to be the legitimate owner of the
abovementioned inventions, improvements, plans etc...

Furthermore Jacques Blanié shall waive to the Company or to any company within
AptarGroup requesting it, all title and rights, he may have in France or
abroad, to an invention made with a third party and within the scope materials,
machines or products manufactured and sold by AptarGroup.

In return for such transfer and waiver of ownership, SEAQUIST PERFECT
DISPENSING SAS shall, any time it deems it fair and possible, have the name of
Jacques Blanié figure in the summary of the patent that will be filed by the
said company to protect Jacques Blanié’s invention.

Furthermore, both parties will discuss in equity the possibility of
compensation, the amount and the form of which will be, in any case, appraised
by the said company.

Article 11 – Non Competition

	11.1	 	Because of SEAQUIST PERFECT DISPENSING SAS’ need to protect all its
techniques, methods, processes, know-how and other information that may be
conveyed to

Page 3 of 5

 

	 	 	Jacques Blanié and that contribute to the efficiency of its business,
Jacques Blanié, given the nature of his responsibilities, shall refrain
from:

	 	•	 	Working, either directly or indirectly, in any form
whatsoever or through any intermediary, for the benefit of private
individuals or corporate entities or any other organisation having a
Competing or Similar Activity.
	 
	 	•	 	Acquiring an interest, whether directly, indirectly or
through any intermediary, in any form whatsoever (e.g. creating a
business, acquiring a stake) in any private individual or corporate
entity or any other organisation having a Competing or Similar
Activity.
	 
	 	 	 	“Competing or Similar Activity” shall be understood as anything with a
direct or indirect relation to the activity of the Company, i.e.
realization and production of dispensing systems for the packaging
industry.
	 
	 	•	 	Soliciting or having anybody solicit, whether directly of
indirectly, in the framework of an activity outside the Company or
the AptarGroup, the services of the Company’s employees, whether
full-time or part-time.

	11.2	 	This non-competition obligation shall apply to the entire territory of
the European Union in its 2004 boundaries.
	 
	 	 	The geographic scope of this clause shall apply both to the location of
the domicile or registered office of the above-mentioned private
individual or corporate entity having a Competing or Similar Activity and
to the pursuit of the Competing or Similar Activity as such.
	 
	11.3	 	The present clause shall apply for a period of 2 (two) years commencing
on the date of the effective termination of the present contract, whether
or not Jacques Blanié works for the duration of his period of notice and
regardless of the reason for the termination of the present contract.
	 
	11.4	 	In consideration for this non-competition obligation, Jacques Blanié
shall receive, except in the event of gross misconduct, a fixed amount for
special compensation equal to 50% (fifty percent) of the average monthly
salary received by him during his last 3 (three) months’ presence in the
Company. This compensation shall be paid as from the effective end of his
activity.
	 
	11.5	 	In the event Jacques Blanié does not comply with the present clause, the
Company shall be released from its obligation to pay financial
compensation.
	 
	 	 	Furthermore, Jacques Blanié shall automatically owe a sum corresponding
to 2 (two) years’ salary based on the average monthly salary received by
him during the last 3 (three) months’ presence in the Company. Such sum
shall be paid to the Company for each infringement observed, without
formal notice to end the competing activity being necessary.
	 
	 	 	The payment of such sum does not exclude any right that the Company
reserves to sue Jacques Blanié for compensation for the harm actually
caused and to take out an injunction to ensure that he ends the Competing
or Similar Activity.
	 
	11.6	 	However, the Company reserves the option of releasing Jacques Blanié from
the non-competition obligation.
	 
	 	 	In this case, the Company shall inform Jacques Blanié accordingly by
registered letter, return receipt requested, within one month of
notification of the termination of his employment contract.

Page 4 of 5

 

	 	 	The Company shall then be released from its obligation to pay the
financial compensation provided for in paragraph 4 above.

Article 12 – Miscellaneous

	12.1	 	The cancellation of any one of the provisions of this contract shall not
terminate the contract as long as the litigious clause is not considered
by both parties as essential and determining to the agreement herein, and
the cancellation does not challenge the general balance of the contract.
In the event of cancellation of any of the provisions herein, the parties
shall, in any case, endeavor to negotiate in good faith the drawing up of
an economically equivalent clause.
	 
	12.2	 	The failure of either party to enforce at any time any provision of this
contract shall not be construed as a waiver of such provision.
	 
	12.3	 	Any waiver by a party of any of its rights, or any change of any
provision of this contract, shall not come into force except in writing,
and if duly signed by both parties.
	 
	12.4	 	Any dispute, controversy or claim arising out of or in connection with
this contract, or the breach, termination or invalidity hereof, that the
parties are unable to resolve between themselves, shall be submitted to
the French Conciliation Board (“Conseil des Prud’hommes") or to any court
having jurisdiction thereof on the date the dispute is filed.
	 
	12.5	 	This employment contract is drawn up in two original copies.

	 	 	 
	 

	 	Executed in Louveciennes

On January 10, 2003,
	 
	 	 
	

	 	On behalf of

Seaquist Perfect Dispensing SAS
	 
	 	 
	

	 	/s/ François Boutan
	

	 	
 
	 

	 	François Boutan

Président
	 
	 	 
	

	 	(«Read and Approved»)
	 
	 	 
	

	 	/s/ Jacques Blanie
	

	 	
 
	

	 	Jacques Blanie

Page 5 of 5

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