SEPARATION
AGREEMENT
This Separation Agreement is made this
30 th day of June, 2007 between Nalco Company, for
itself and on behalf of its direct or indirect affiliates, parents,
subsidiaries and predecessors (collectively the
“Company” or “Nalco”) and William J. Roe
(“Mr. Roe”).
Recitals
Mr. Roe’s current position
with the Company will end on June 30, 2007.
Mr. Roe entered into a Severance
Agreement with the Company with effective date of January 1, 2004
(the “Severance Agreement”).
Mr. Roe entered into a Death
Benefit Agreement with the Company (then Nalco Chemical Company)
(the “Death Benefit Agreement”).
Mr. Roe entered into a Management
Members Agreement with Nalco LLC, an indirect parent of Nalco, on
or about June 30, 2004, pursuant to which Mr. Roe was given
the opportunity to invest in certain equity ownership units in
Nalco LLC (the “Management Members
Agreement”).
Mr. Roe signed a consent
permitting certain acceleration rights for the C and D Units on
December 13, 2006 (the “Consent
Memorandum”).
Under the Severance Agreement, any
severance payments would be paid to Mr. Roe over the period
from the date his employment ends to the date Mr. Roe becomes
age 55, permitting Mr. Roe to elect retirement on the first
day of the month following becoming age 55 (in December
2008).
As there are no severance payment
obligations, the Company agrees that Mr. Roe will continue to
vest in the B Units under the 2004 Nalco LLC Plan for the years
2007 and 2008 and he shall otherwise continue receiving medical and
dental benefits as an active employee until he reaches age 55 in
December 2008, permitting Mr. Roe to elect retirement on
January 1, 2009.
Agreement
Accordingly, Mr. Roe and Nalco
agree as follows:
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1.
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Termination of Employment and
Consulting Services
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Effective June 30, 2007, Mr. Roe
will be terminated from all positions previously held by him as an
officer, employee or director of Nalco, and all of its direct or
indirect subsidiaries, parents and affiliates. Mr. Roe shall
execute any requested
forms to resign from such positions,
including the resignation from the Nalco Foundation attached
hereto.
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a.
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Mr. Roe and Nalco LLC will
separately enter into an amendment of the Management Members
Agreement. This Agreement is conditioned upon the parties executing
the described amendment to the Management Members
Agreement.
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b.
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The Company will maintain Mr. Roe
as an active employee until he is 55 years of age at which point he
will be permitted to retire with the full retirement benefits of a
55 year old employee. As an active employee, Mr. Roe will be
available for consultation, special projects, or assistance with
any company-related litigation, but will have no salary for his
services.
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c.
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The Company will continue
Mr. Roe’s current medical and dental coverage as an
active employee for the period through December 31, 2008 at current
cost.
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d.
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The Company will reimburse tax
assistance for Mr. Roe up to a cap of $2500 and for financial
planning up to a cap of $8500, for related services rendered in
2007 and 2008.
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e.
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The Company will provide outplacement
services through an agreed vendor.
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In addition to the offset right under
paragraph (g) of the Consent Memorandum, Mr. Roe fully waives
and releases any and all claim he has or might have had under the
Severance Agreement and further waives and releases any and all
other claims he has to any payments or benefits, or any severance
payments or severance benefits from Nalco or any of its direct or
indirect affiliates, subsidiaries, parents or predecessors under
any other agreements or commitments. Mr. Roe does not waive
and release any claims under the Death Benefit
Agreement.
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4.
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Reconciliation of Expense Reports,
Travel Advances, Credit Card Charges, and Other
Obligations
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If he has not already done so, by July
15, 2007, Mr. Roe will deliver to Nalco a final written report
and reconciliation of all outstanding travel advances and charges
made against credit cards issued to Mr. Roe by or on behalf of
Nalco. Mr. Roe shall identify those portions of advances and
charges which were devoted to personal use and those portions that
were devoted to the business purposes of Nalco. For the portions
devoted to Nalco’s business purposes, Mr. Roe
will
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provide all of the information
normally provided under Nalco’s practices and procedures,
with appropriate receipts.
Mr. Roe will also provide a
detailed statement of all business expenses that Mr. Roe
claims he incurred for Nalco’s business purposes that have
not been reimbursed.
If the final report of business
expenses, use of travel advances, and credit card charges reveals
Mr. Roe owes Nalco money, the sum owing shall be promptly paid
by him by check. If the report reveals Nalco owes Mr. Roe
money, the sum owing shall be promptly paid by check.
Mr. Roe agrees to return all
Nalco property to Nalco promptly upon request.
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5.
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General Release and Covenant Not to
Sue
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In consideration of Nalco’s
promises under this Separation Agreement and the Amendment to the
Management Members Agreement, Mr. Roe individually, and
Mr. Roe’s successors, assigns, heirs, and agents, and
each and all of them, hereby unconditionally and forever release,
acquit, and discharge Nalco, its direct or indirect parents,
subsidiaries and affiliates, and each of their respective officers,
directors, stockholders, employees, agents, and attorneys from any
and all claims, demands, liabilities, and causes of action of every
kind, nature and description whatsoever whether known or unknown,
or suspected to exist, which Mr. Roe ever had or may now have
up to the date of signing this Agreement, against Nalco, or any of
them, including, without limitation, any claim arising out of or
relating to (i) any aspect of Mr. Roe’s employment with
Nalco, including the termination of such employment; (ii) any
federal, state, local or other government statute, regulation or
ordinance of any country, including but not limited to the
following US laws, Title VII of the Civil Rights Act of 1964, as
amended, the Civil Rights Act of 1991, the Age Discrimination in
Employment Act, 29 U.S.C. sec. 621 et. seq. as amended by the Older
Workers’ Benefit Protection Act of 1990, the Americans with
Disabilities Act, the Family and Medical Leave Act, the Employee
Retirement Income Security Act, and the Rehabilitation Act of 1973,
The Worker Adjustment and Retraining Notification Act and (iii) the
common law of the jurisdiction wherein Mr. Roe resides or any
other jurisdiction, including without limitation, intentional
infliction of emotional distress, breach of contract and any claims
for consequential and/or punitive damages for any reason. It is the
intention of Mr. Roe that in executing this Agreement
Mr. Roe is providing a General Release and that it shall be an
effective bar to each and every claim, demand and cause of action,
either known or unknown, for all acts, or omissions of Nalco, its
direct or indirect parents, subsidiaries and affiliates, and each
of their respective officers, directors, stockholders, employees,
agents, and attorneys, occurring prior to and up to the date this
Agreement is executed. This release includes but is not limited
to:
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any claims for assault, battery,
wrongful termination, defamation, invasion of privacy, intentional
infliction of emotional distress, or any other tort or common law
claims;
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any claim to challenge the
enforceability of any provision of the Severance Agreement,
including but not limited to the noncompetition, nondisclosure, and
nonsolicitation provisions in the Severance Agreement;
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any claims for the breach of any
written, implied or oral contract;
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any claims of discrimination,
harassment or retaliation based on such things as age, national
origin, ancestry, race, religion, sex (including sexual
harassment), sexual orientation, or physical or mental disability
or medical condition or any other protected status;
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any claims for benefits or monetary
equivalent of benefits except as provided in this Agreement;
and
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any entitlement to reinstatement with
or rehire or reemployment by Nalco.
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Also waived are any rights to
attorneys’ fees, compensation or other recovery as the result
of any legal action brought by Mr. Roe or on
Mr. Roe’s behalf by any other party, based on any right
Mr. Roe has released and waived under this Separation
Agreement.
Excepted from this release are claims
challenging the validity of this Separation Agreement under the Age
Discrimination in Employment Act. Mr. Roe’s release
under the Age Discrimination in Employment Act does not apply to
any claims that arise or may arise based on events that take place
after the date Mr. Roe signs this Agreement. Also not released
are any claims Mr. Roe may have for a) Worker’s
Compensation benefits, b) accrued wages, accrued but unused
vacation pay, and accrued commissions, if any, up to the date of
termination, c) any vested pension benefits, or d) any right to
unemployment benefits.
Mr. Roe warrants that he: (a) has
read this Agreement and understands its provisions including the
waivers and releases, (b) understands that this Agreement includes
a release of any rights or claims under the Age Discrimination in
Employment Act, (c) is waiving rights under this release on a
voluntary basis, without coercion or duress, in compliance with the
Older Workers Benefit Protection Act, and (d) has been advised to
consult an attorney before signing this Agreement.
Mr. Roe agrees never to institute
any charge, lawsuit, complaint, proceeding, grievance or action of
any kind (at law, in equity or otherwise) in any state or federal
court, or in any other public or private tribunal, against Nalco on
any grounds, for any occurrence from the beginning of time to the
effective date of
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this Agreement. The only exception to
this covenant not to sue is a claim that challenges the validity of
this Separation Agreement and alleges age discrimination. If
Mr. Roe sues Nalco in violation of this Se
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