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<SEC-DOCUMENT>0001193125-09-043814.txt : 20090303
<SEC-HEADER>0001193125-09-043814.hdr.sgml : 20090303
<ACCEPTANCE-DATETIME>20090303172818
ACCESSION NUMBER:		0001193125-09-043814
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20090228
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20090303
DATE AS OF CHANGE:		20090303

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NANOPHASE TECHNOLOGIES CORPORATION
		CENTRAL INDEX KEY:			0000883107
		STANDARD INDUSTRIAL CLASSIFICATION:	MISCELLANEOUS PRIMARY METAL PRODUCTS [3390]
		IRS NUMBER:				363687863
		STATE OF INCORPORATION:			IL
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-22333
		FILM NUMBER:		09652799

	BUSINESS ADDRESS:	
		STREET 1:		453 COMMERCE ST
		CITY:			BURR RIDGE
		STATE:			IL
		ZIP:			60521
		BUSINESS PHONE:		6303231200

	MAIL ADDRESS:	
		STREET 1:		453 COMMERCE STREET
		CITY:			BURR RIDGE
		STATE:			IL
		ZIP:			60521
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>d8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML><HEAD>
<TITLE>Form 8-K</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>

 <P STYLE="line-height:0px;margin-top:0px;margin-bottom:0px;border-bottom:0.5pt solid #000000">&nbsp;</P> <P
STYLE="line-height:3px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000">&nbsp;</P> <P STYLE="margin-top:3px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="4"><B>UNITED STATES </B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="4"><B>SECURITIES AND EXCHANGE COMMISSION </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman"
SIZE="3"><B>Washington D.C., 20549 </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P
STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="4"><B>Form&nbsp;8-K </B></FONT></P>
<P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="3"><B>Current Report </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="3"><B>Pursuant to Section&nbsp;13 or 15(d) of the Securities
Exchange Act of 1934 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Date Of Report (Date Of Earliest Event Reported): February 28, 2009 </B></FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="5"><B>NANOPHASE TECHNOLOGIES CORPORATION </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Exact Name of Registrant as Specified in
its Charter) </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P
STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Commission File Number: 0-22333 </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="48%"></TD></TR>
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<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Delaware</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>36-3687863</B></FONT></TD></TR>
<TR>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(State or Other Jurisdiction of</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="1"><B>Incorporation or Organization)</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(I.R.S. Employer</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="1"><B>Identification No.)</B></FONT></P></TD></TR>
</TABLE> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>1319 Marquette Drive, Romeoville, Illinois 60446 </B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Address of Principal Executive Offices, Including Zip Code) </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>(630)&nbsp;771-6700 </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Registrant&#146;s Telephone Number, Including Area Code) </B></FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Former name or former address, if changed since last report) </B></FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: </FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><FONT FACE="WINGDINGS">&#168;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425) </FONT></TD></TR></TABLE> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><FONT FACE="WINGDINGS">&#168;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12) </FONT></TD></TR></TABLE> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><FONT FACE="WINGDINGS">&#168;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </FONT></TD></TR></TABLE> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><FONT FACE="WINGDINGS">&#168;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </FONT></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="line-height:3px;margin-top:0px;margin-bottom:0px;border-bottom:0.5pt solid #000000">&nbsp;</P> <P
STYLE="line-height:3px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000">&nbsp;</P>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B><U><A NAME="toc"></A>TABLE OF CONTENTS </U></B></FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

<TR>
<TD WIDTH="98%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><A HREF="#tx78804_5">Item 1.01. Entry into a Material Definitive Agreement </A></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">3</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><A HREF="#tx78804_1">Item&nbsp;5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangement of Certain Officers
</A></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">3</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><A HREF="#tx78804_2">Item&nbsp;9.01. Financial Statements and Exhibits </A></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">3</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><A HREF="#tx78804_3">Signature(s) </A></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">4</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2"><A HREF="#tx78804_3a">Separation Agreement and General Release of All Claims, between Richard W. Brotzman, Jr. and Nanophase Technologies Corporation,
 effective March 2, 2009</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2"><A HREF="#tx78804_3b">Separation Agreement and General Release of All Claims, between Robert W. Haines and Nanophase Technologies Corporation, effective
February 19, 2009</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px"><FONT FACE="Times New Roman" SIZE="2"><A HREF="#tx78804_4">Press Release dated March 3, 2009 </A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
</TABLE> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">2 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">Items to be Included in this Report </FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="10%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B><A NAME="tx78804_5"></A>Item&nbsp;1.01.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>Entry into a Material Definitive Agreement. </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The
Company entered into a Separation Agreement and General Release of All Claims, effective as of March 2, 2009, with Dr. Brotzman (the &#147;Brotzman Separation Agreement&#148;) and a Separation Agreement and General Release of All Claims, effective
as of February 19, 2009, with Mr. Haines (the &#147;Haines Separation Agreement&#148;). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Pursuant to the Brotzman Separation Agreement, Dr.
Brotzman will receive severance pay in the aggregate gross amount of $107,299 and notice pay in the aggregate gross amount of $6,227.81. Dr. Brotzman will also receive accelerated vesting of all outstanding options previously granted to Dr.
Brotzman. Furthermore, during the period severance will be paid, the Company will pay a portion of the monthly insurance premiums for Dr. Brotzman&#146;s participation in the Company&#146;s group health insurance plan through COBRA. In consideration
for these and other benefits provided under the Brotzman Separation Agreement, Dr. Brotzman agreed to release of any and all claims against the Company and its representatives and confirmed his continuing obligations to the Company including
compliance with certain restrictive covenants and assisting the Company, at its request, in certain potential disputes. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Pursuant to the
Haines Separation Agreement, Mr. Haines will receive severance pay in the aggregate gross amount of $237,408.76 and notice pay in the aggregate gross amount of $7,021.91. Mr. Haines will also receive accelerated vesting of all outstanding options
previously granted to Mr. Haines. Furthermore, during the period severance will be paid, the Company will pay a portion of the monthly insurance premiums for Mr. Haines&#146;s participation in the Company&#146;s group health insurance plan through
COBRA. In consideration for these and other benefits provided under the Haines Separation Agreement, Mr. Haines agreed to release of any and all claims against the Company and its representatives and confirmed his continuing obligations to the
Company including compliance with certain restrictive covenants and assisting the Company, at its request, in certain potential disputes. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">Copies of the Brotzman Separation Agreement and the Haines Separation Agreement are attached hereto as Exhibits 10.1 and 10.2, respectively, and incorporated herein by reference. The descriptions thereof contained in this Form 8-K are
qualified in all respects by the terms and provisions of the Brotzman Separation Agreement and the Haines Separation Agreement. </FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="10%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B><A NAME="tx78804_1"></A>Item&nbsp;5.02.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangement of Certain Officers. </B></FONT></TD></TR></TABLE> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The Company announced on March 3, 2009 that Jess Jankowski was promoted to the positions of President and Chief Executive Officer of the Company and
appointed as a director to the Company&#146;s Board of Directors, effective February 28, 2009. Mr. Jankowski had been the Company&#146;s Acting Chief Executive Officer since August 2008. He will continue to serve as Chief Financial Officer while the
Company conducts a search for his replacement in that role. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In addition, Dr. Richard Brotzman, Chief Technology Officer, and Robert
Haines, Vice President of Operations, resigned from their respective positions, effective February 28, 2009. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">A copy of the press release
regarding the above is attached hereto as Exhibit 99.1 and incorporated herein by reference. </FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="10%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B><A NAME="tx78804_2"></A>Item&nbsp;9.01.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>Financial Statements and Exhibits </B></FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="10%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Exhibit&nbsp;10.1</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Separation Agreement and General Release of All Claims, between Richard W. Brotzman, Jr. and Nanophase Technologies Corporation, effective March 2, 2009 </FONT></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="10%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Exhibit&nbsp;10.2</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Separation Agreement and General Release of All Claims, between Robert W. Haines and Nanophase Technologies Corporation, effective February 19, 2009 </FONT></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="10%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Exhibit&nbsp;99.1<A NAME="tx78804_4"></A></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Press Release dated March 3, 2009 </FONT></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">3 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B><A NAME="tx78804_3"></A>Signature(s) </B></FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Pursuant to the Requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">Nanophase Technologies Corporation</FONT></TD></TR>
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<TD HEIGHT="16" COLSPAN="2"></TD>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Date: March 3, 2009</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ JESS JANKOWSKI</FONT></P></TD></TR>
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<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">JESS JANKOWSKI</FONT></TD></TR>
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<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Chief Financial Officer</FONT></TD></TR>
</TABLE> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">4 </FONT></P>

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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>dex101.htm
<DESCRIPTION>SEPARATION AGREEMENT - RICHARD W. BROTZMAN, JR.
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<TITLE>Separation Agreement - Richard W. Brotzman, Jr.</TITLE>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>Exhibit 10.1 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B><A NAME="tx78804_3a"></A>SEPARATION AGREEMENT AND </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>GENERAL RELEASE OF ALL CLAIMS </B></FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">This Separation Agreement and General Release (the &#147;Agreement&#148;) is made between Richard W. Brotzman, Jr. and Nanophase Technologies Corporation
(&#147;NTC&#148;). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Whereas, since September&nbsp;26, 2001, Dr.&nbsp;Brotzman has served as an officer of NTC, most recently in the
position of Chief Technology Officer, pursuant to that certain Employment Agreement between Dr.&nbsp;Brotzman and NTC dated and effective as of September&nbsp;26, 2001, as amended (&#147;Employment Agreement&#148;); and </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Whereas, Dr.&nbsp;Brotzman&#146;s employment with NTC will conclude effective February&nbsp;28, 2009; and </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Whereas, Dr.&nbsp;Brotzman and NTC wish both to provide for an orderly transition that serves their mutual interests, and to resolve any past, present or
future disputes between them. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Now, therefore, in consideration of the release, covenants, representations and obligations stated below,
Dr.&nbsp;Brotzman and NTC agree as follows: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1. <B><U>Separation Benefits</U></B>. Subject to Dr.&nbsp;Brotzman complying with all his
obligations under Paragraphs 2, 3, 4, 6, 7, 8 and 10 of this Agreement, NTC will provide him with the following benefits (collectively, the &#147;Separation Benefits&#148;): </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">A. Severance Pay, in the aggregate gross amount of $107,299 (equivalent to 27 weeks of Dr.&nbsp;Brotzman's annual base salary in effect on
February&nbsp;28, 2009), subject to tax, withholding and all other required deductions, paid in twelve equal bi-weekly installments of $8,941.58 each. The preceding installments shall begin on NTC&#146;s first regular payday for salaried employees
that occurs five days after the end of the "Revocation Period" (as defined in Paragraph 3.E of this Agreement), provided that NTC, in its discretion, may accelerate any or all installments of the Severance Pay. </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">B. Notice Pay, in the aggregate gross amount of $6,227.81 (equivalent to 11 days of pay at the per diem rate of Dr.&nbsp;Brotzman's annual
base salary on February&nbsp;28, 2009, with 19 days of Notice Pay being paid to Dr.&nbsp;Brotzman during the period from February&nbsp;9 through February&nbsp;28, 2009), subject to tax, withholding and all other required deductions, paid in full on
NTC's first regular payday for salaried employees that occurs five days after the end of the Revocation Period. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">C. If
Dr.&nbsp;Brotzman and his dependents elect to continue participating in NTC's group health insurance plan (the "Plan") through COBRA, NTC will pay the monthly insurance premiums for such participation by Dr.&nbsp;Brotzman and his dependants for so
long as the Severance Pay continues, provided that: (i)&nbsp;Dr.&nbsp;Brotzman and his dependants remain eligible to participate in the Plan, subject to all the terms and conditions of the Plan as may be in effect from time to time; and
(ii)&nbsp;Dr.&nbsp;Brotzman pays a bi-weekly contribution of $180.00 toward the cost of the premiums for COBRA coverage under the Plan. In the absence of Dr.&nbsp;Brotzman and his dependants electing to continue </FONT>
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<FONT FACE="Times New Roman" SIZE="2">participating in NTC's Plan through COBRA, coverage of Dr.&nbsp;Brotzman and his dependants under the Plan will end on February&nbsp;28, 2009. </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">D. All unvested stock options previously granted to Dr.&nbsp;Brotzman will become fully vested and will become immediately exercisable,
with such exercise continuing to be governed by all the terms and conditions of the respective grant instruments and the applicable stock option or equity compensation plan under which such options were awarded to Dr.&nbsp;Brotzman, provided that
Dr.&nbsp;Brotzman shall have until May&nbsp;28, 2009 to exercise any or all such stock options. All unexercised previously vested stock options that have been granted to Dr.&nbsp;Brotzman will continue to be governed by all the terms and conditions
of the respective grant instruments and the applicable stock option or equity compensation plan under which such options were awarded to Dr.&nbsp;Brotzman, provided that Dr.&nbsp;Brotzman shall have until May&nbsp;28, 2009 to exercise any or all
such stock options. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">E. NTC will not contest any claim for unemployment insurance benefits that Dr.&nbsp;Brotzman may file
with the Illinois Department of Employment Security by March&nbsp;16, 2009. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">F. Dr.&nbsp;Brotzman acknowledges that NTC has
made no representations to him concerning the tax consequences, if any, of the Separation Benefits to be provided to Dr.&nbsp;Brotzman under Paragraph 1 of this Agreement. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">2. <B><U>General Release</U></B>. In consideration of the preceding Separation Benefits provided by NTC to Dr.&nbsp;Brotzman, which Separation Benefits
are hereby acknowledged by Dr.&nbsp;Brotzman to be sufficient, just and adequate, Dr.&nbsp;Brotzman, for himself and his heirs, executors, administrators, legal representatives, agents, attorneys, successors and assigns, irrevocably and
unconditionally hereby releases and forever discharges NTC, all its respective officers, directors, shareholders, predecessors, successors, affiliates, employees, insurers, benefit plans, equity compensation plans, legal representatives, agents,
attorneys and assigns, of and from any and all administrative, judicial or other claims, actions, charges, suits, debts, dues, accounts, contracts, plans, controversies, agreements, promises, representations, warranties, damages and judgments, in
law or equity, which Dr.&nbsp;Brotzman had, has or may hereafter have, whether known or unknown, from the beginning of time through the date Dr.&nbsp;Brotzman signs this Agreement, arising out of, relating to, or in any manner connected with any of
the following: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">A. All matters relating to Dr.&nbsp;Brotzman&#146; employment with, or termination as an officer and
employee of, NTC. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">B. All rights or claims to any compensation or benefits from NTC (specifically including any claim for
severance pay or notice pay as provided under Sections 3, 7(b) and 8(b) of the Employment Agreement), except as otherwise expressly provided in this Agreement. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">C. All suits, claims, charges or causes of action arising under or in connection with: (i)&nbsp;Title VII of the Civil Right Act of 1964
as amended (42 U.S.C. &#167;&#167; 2000e et </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">2 </FONT></P>


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<FONT FACE="Times New Roman" SIZE="2"><I>seq</I>.), the Civil Rights Acts of 1991, 1866 and 1871 as amended, the Americans With Disabilities Act of 1990 as amended (42 U.S.C. &#167;&#167; 12101
<I>et seq</I>.), the National Labor Relations Act as amended (29 U.S.C. &#167;&#167; 151 <I>et seq</I>.), the Employee Retirement Income Security Act of 1974 as amended (29 U.S.C. &#167;&#167; 1001 <I>et seq</I>.), the Occupational Safety and Health
Act of 1970 as amended (29 U.S.C. &#167;&#167; 651 <I>et seq</I>.), the Fair Labor Standards Act as amended (29 U.S.C. &#167;&#167; 201 <I>et seq</I>.), the Family and Medical Leave Act of 1993 as amended (29 U.S.C. &#167;&#167; 2601 <I>et seq</I>.,
or the Illinois Human Rights Act as amended. (775 ILCS 5/1 <I>et seq</I>.); (ii)&nbsp;any federal, state or local law, statute, ordinance, regulation, order or public policy affecting or relating to the claims and rights of employees, directors,
officers and shareholders, or any claims arising out of or in relation to any contract or common law right including without limitation any claim in tort or contract relating to the breach of an oral, written or implied contract, breach of an
implied covenant of good faith and fair dealing, misrepresentation, defamation, interference with contract, interference with prospective economic advantage, retaliation, harassment, conspiracy, wrongful termination, intentional or negligent
infliction of emotional or psychological injury, mental or emotional distress, mental anguish, negligence, humiliation, embarrassment, pain and suffering, loss of personal or professional reputation, loss of career opportunities, stigmatization or
loss of job status or satisfaction; (iii)&nbsp;any employment-related claims for compensatory, consequential or punitive damages, equitable relief, attorneys&#146; fees or litigation costs, back-pay, front-pay, past or prospective benefits from
individual, group or other insurance coverage or any other source, loss of salary, net accumulations, wages, expense reimbursements, vacations, earnings, interest or loss of any other incidents, terms or conditions of employment; and (iv)&nbsp;any
claim for attorneys&#146; fees. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Dr.&nbsp;Brotzman and NTC agree that nothing in Paragraphs 2 or 3 of this Agreement waives any claims or
rights that Mr.&nbsp;Brotzman may have which are not subject to his unilateral waiver under applicable law. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">3.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B><U>Age Claim Release</U></B>. Dr.&nbsp;Brotzman specifically agrees that: </FONT></TD></TR></TABLE> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">A. He is releasing any and all claims under the Age Discrimination in Employment Act of 1967 (29 U.S.C. &#167;&#167; 621 <I>et seq</I>.),
as amended by the Older Workers Benefit Protection Act (and any comparable state or local laws), arising up to the date that he signs this Agreement. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">B. The consideration he will receive is greater than normally provided by NTC&#146;s policies to a person of his length of service and responsibility. </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">C. He has had an opportunity to consult with an attorney of his choice before he executed this instrument. </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">D. He has been given twenty-one days from the date he received this Agreement (or until March&nbsp;2, 2009) to decide whether to sign the
document. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">3 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">E. He has seven days after he signs this Agreement to revoke its execution (the
&#147;Revocation Period&#148;). Dr.&nbsp;Brotzman agrees that if he revokes his execution of this Agreement, he will immediately provide Nancy Baldwin, Vice-President of Human Resources&nbsp;&amp; Investor Relations of NTC, with written notice of
the revocation, transmitted to NTC by overnight delivery. In the event of such revocation, all obligations of NTC under this Agreement shall immediately cease. In the absence of such revocation, this Agreement will become effective on the eighth day
after Dr.&nbsp;Brotzman signs it. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4. <B><U>No Re-employment</U></B>. Dr.&nbsp;Brotzman waives all claims to employment, re-employment or
engagement with NTC. Dr.&nbsp;Brotzman affirmatively agrees not to seek employment, re-employment or engagement with NTC. Dr.&nbsp;Brotzman releases NTC from any future claims concerning any application for employment or engagement he makes in
breach of this Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">5. <B><U>No Admissions</U></B>. Dr.&nbsp;Brotzman acknowledges that the Separation Benefits provided by NTC, and
its execution of this Agreement, are not an admission of wrongdoing of any kind on the part of the entities and persons hereby released, by whom wrongdoing of any kind is expressly denied. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">6. <B><U>Continued Obligations</U></B>. Dr.&nbsp;Brotzman confirms the existence and enforceability of all his obligations to NTC, including those:
(a)&nbsp;under Section&nbsp;9 of the Employment Agreement; (b)&nbsp;under that certain Confidential Information and Proprietary Rights Agreement between NTC and Dr.&nbsp;Brotzman dated as of September&nbsp;2, 1994; (c)&nbsp;under the Illinois Trade
Secrets Act; (d)&nbsp;under NTC&#146;s Insider Trading Policy and practices; and (e)&nbsp;under applicable law concerning his fiduciary duties to NTC as an officer possessing material insider information. Dr.&nbsp;Brotzman further agrees that:
(x)&nbsp;if he is ever required by subpoena or order of any court or administrative agency to disclose any information concerning NTC, including its confidential or proprietary information of any kind, he will first notify NTC in writing immediately
upon his receiving any such subpoena or order and before making any disclosure; and (y)&nbsp;upon NTC's request, Dr.&nbsp;Brotzman will cooperate in any legal proceedings which in whole or part relate to any events or matters occurring while he was
employed by NTC and/or about which he has relevant information, provided that NTC will reimburse Dr.&nbsp;Brotzman for the reasonable travel, lodging and food expenses that he incurs in connection with providing such cooperation, subject to NTC's
policy governing Employee Expense Reimbursement for Corporate Expenditures in effect on February&nbsp;9, 2009. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">7.
<B><U>Non-Disparagement</U></B>. Dr.&nbsp;Brotzman agrees that he will not directly or indirectly make or cause to be made any statement or other form of communication that could be reasonably interpreted as disparaging the reputation or business
interests of NTC or any of its respective officers, directors, shareholders, employees, customers, vendors or their representatives. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">8.
<B><U>Return of NTC Property</U></B>. Dr.&nbsp;Brotzman shall immediately return to NTC all its property in his possession or control, including without limitation: (a)&nbsp;all cellular telephones (together with all telephone numbers assigned to
such telephones), keys, laptop computers, </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">4 </FONT></P>


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<FONT FACE="Times New Roman" SIZE="2">printers and related equipment; (b)&nbsp;all electronically-stored information created by or on behalf of NTC, or otherwise belonging to NTC, including all
such information contained in any hard drive or computer owned by Dr.&nbsp;Brotzman; and (c)&nbsp;all notes, documents and other written materials, including any copies, excerpts, summaries or compilations thereof. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">9. <B><U>Integration, No Other Promises and Voluntary Signing</U></B>. Dr.&nbsp;Brotzman acknowledges that: all the Separation Benefits provided by NTC
are described in this Agreement; no other promise or agreement of any kind has been made to or with him by any person or entity whatsoever to cause him to execute this Agreement; this instrument (and the other documents referenced herein)
constitutes the entire agreement between the parties; and he has knowingly signed this Agreement of his own free will, intending to be legally bound by it. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">10. <B><U>No Assignment</U></B>. Dr.&nbsp;Brotzman warrants that he has not assigned any claim, action, cause of action, suit, contract, plan, controversy, promise, damages, award or judgments which he had, has or
hereafter may have arising from any matters connected in any way with his employment by, or offices or directorship with, NTC or any claims released in this instrument. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">12. <B><U>Governing Law</U></B>. This Agreement shall be construed in accord with and governed by the laws of the State of Illinois. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ RICHARD W. BROTZMAN, Jr.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2"><B>NANOPHASE TECHNOLOGIES CORPORATION</B></FONT></TD></TR>
<TR>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">RICHARD W. BROTZMAN, JR.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
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<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000"> <P STYLE="font-size:10px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">2-23-09</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
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<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
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<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Nancy Baldwin</FONT></TD></TR>
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<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">Date</FONT></TD>
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<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Nancy Baldwin,</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Vice-President of Human
Resources</FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px"><FONT FACE="Times New Roman" SIZE="2">&amp; Investor Relations</FONT></P></TD></TR>
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<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">2-23-09</FONT></TD></TR>
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<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Date</FONT></TD></TR>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">5 </FONT></P>

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<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>dex102.htm
<DESCRIPTION>SEPARATION AGREEMENT - ROBERT W. HAINES
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<TITLE>Separation Agreement - Robert W. Haines</TITLE>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>Exhibit 10.2 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B><A NAME="tx78804_3b"></A>SEPARATION AGREEMENT AND </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>GENERAL RELEASE OF ALL CLAIMS </B></FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">This Separation Agreement and General Release (the &#147;Agreement&#148;) is made between Robert W. Haines and Nanophase Technologies Corporation
(&#147;NTC&#148;). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Whereas, since January&nbsp;22, 2001, Mr.&nbsp;Haines has served as Vice-President, Operations pursuant to that certain
Employment Agreement between Mr.&nbsp;Haines and NTC with a term beginning on January&nbsp;22, 2001, as amended (&#147;Employment Agreement&#148;); and </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">Whereas, Mr.&nbsp;Haines&#146; employment with NTC will conclude effective February&nbsp;28, 2009; and </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">Whereas, Mr.&nbsp;Haines and NTC wish both to provide for an orderly transition that serves their mutual interests, and to resolve any past, present or future disputes between them. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Now, therefore, in consideration of the release, covenants, representations and obligations stated below, Mr.&nbsp;Haines and NTC agree as follows:
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1. <B><U>Separation Benefits</U></B>. Subject to Mr.&nbsp;Haines complying with all his obligations under Paragraphs 2, 3, 4, 6, 7, 8 and
10 of this Agreement, NTC will provide him with the following benefits (collectively, the &#147;Separation Benefits&#148;): </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">A. Severance Pay, in the aggregate gross amount of $237,408.76 (equivalent to 53 weeks of Mr.&nbsp;Haines&#146; annual base salary in effect on February&nbsp;28, 2009), subject to tax, withholding and all other required deductions, paid in
twenty-six equal bi-weekly installments of $9,131.08 each. The preceding installments shall begin on NTC&#146;s first regular payday for salaried employees that occurs five days after the end of the &#147;Revocation Period&#145; (as defined in
Paragraph 3.E of this Agreement), provided that NTC, in its discretion, may accelerate any or all installments of the Severance Pay. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">B. Notice Pay, in the aggregate gross amount of $7,021.91 (equivalent to 11 days of pay at the per diem rate of Mr.&nbsp;Haines&#146; annual base salary in effect on February&nbsp;28, 2009, with 19 days of Notice Pay being paid to
Mr.&nbsp;Haines during the period from February&nbsp;9 through February&nbsp;28, 2009), subject to tax, withholding and all other required deductions, paid in full on NTC&#146;s first regular payday for salaried employees that occurs five days after
the end of the Revocation Period. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">C. If Mr.&nbsp;Haines and his dependents elect to continue participating in NTC&#146;s
group health insurance plan (the &#147;Plan&#148;) through COBRA, NTC will pay the monthly insurance premiums for such participation by Mr.&nbsp;Haines and his dependants for so long as the Severance Pay continues, provided that:
(i)&nbsp;Mr.&nbsp;Haines and his dependants remain eligible to participate in the Plan, subject to all the terms and conditions of the Plan as may be in effect from time to time; and (ii)&nbsp;Mr.&nbsp;Haines pays a bi-weekly contribution of $180.00
toward the cost of the premiums for COBRA coverage under the Plan. In the absence of Mr.&nbsp;Haines and his dependants electing to continue participating in NTC&#146;s Plan through COBRA, coverage of Mr.&nbsp;Haines and his dependants under the
Plan will end on February&nbsp;28, 2009. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">D. All unvested stock options previously granted to Mr.&nbsp;Haines will become fully
vested and will become immediately exercisable, with such exercise continuing to be governed by all the terms and conditions of the respective grant instruments and the applicable stock option or equity compensation plan under which such options
were awarded to Mr.&nbsp;Haines, provided that Mr.&nbsp;Haines shall have until May&nbsp;28, 2009 to exercise any or all such stock options. All unexercised previously vested stock options that have been granted to Mr.&nbsp;Haines will continue to
be governed by all the terms and conditions of the respective grant instruments and the applicable stock option or equity compensation plan under which such options were awarded to Mr.&nbsp;Haines, provided that Mr.&nbsp;Haines shall have until
May&nbsp;28, 2009 to exercise any or all such stock options. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">E. NTC will not contest any claim for unemployment insurance
benefits that Mr.&nbsp;Haines may file with the Illinois Department of Employment Security by March&nbsp;16, 2009. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">F.
Mr.&nbsp;Haines acknowledges that NTC has made no representations to him concerning the tax consequences, if any, of the Separation Benefits to be provided to Mr.&nbsp;Haines under Paragraph 1 of this Agreement. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">2. <B><U>General Release</U></B>. In consideration of the preceding Separation Benefits provided by NTC to Mr.&nbsp;Haines, which Separation Benefits are
hereby acknowledged by Mr.&nbsp;Haines to be sufficient, just and adequate, Mr.&nbsp;Haines, for himself and his heirs, executors, administrators, legal representatives, agents, attorneys, successors and assigns, irrevocably and unconditionally
hereby releases and forever discharges NTC, all its respective officers, directors, shareholders, predecessors, successors, affiliates, employees, insurers, benefit plans, equity compensation plans, legal representatives, agents, attorneys and
assigns, of and from any and all administrative, judicial or other claims, actions, charges, suits, debts, dues, accounts, contracts, plans, controversies, agreements, promises, representations, warranties, damages and judgments, in law or equity,
which Mr.&nbsp;Haines had, has or may hereafter have, whether known or unknown, from the beginning of time through the date Mr.&nbsp;Haines signs this Agreement, arising out of, relating to, or in any manner connected with any of the following:
</FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">A. All matters relating to Mr.&nbsp;Haines&#146; employment with, or termination as an officer and employee of, NTC.
</FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">B. All rights or claims to any compensation or benefits from NTC (specifically including any claim for severance pay or
notice pay as provided under Sections 6(b) and 7(b) of the Employment Agreement), except as otherwise expressly provided in this Agreement. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">C. All suits, claims, charges or causes of action arising under or in connection with: (i)&nbsp;Title VII of the Civil Right Act of 1964 as amended (42 U.S.C. &#167;&#167; 2000e <I>et seq</I>.), the Civil Rights Acts
of 1991, 1866 and 1871 as amended, the Americans With Disabilities Act of 1990 as amended (42 U.S.C. &#167;&#167; 12101 <I>et seq</I>.), the National Labor Relations Act as amended (29 U.S.C. &#167;&#167; 151 <I>et seq</I>.), the Employee Retirement
Income Security Act of 1974 as amended (29 U.S.C. &#167;&#167; 1001 <I>et seq</I>.), the Occupational Safety </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">2 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%">
<FONT FACE="Times New Roman" SIZE="2">and Health Act of 1970 as amended (29 U.S.C. &#167;&#167; 651 <I>et seq</I>.), the Fair Labor Standards Act as amended (29 U.S.C. &#167;&#167; 201 <I>et
seq</I>.), the Family and Medical Leave Act of 1993 as amended (29 U.S.C. &#167;&#167; 2601 <I>et seq</I>., or the Illinois Human Rights Act as amended. (775 ILCS 5/1 <I>et seq</I>.); (ii)&nbsp;any federal, state or local law, statute, ordinance,
regulation, order or public policy affecting or relating to the claims and rights of employees, directors, officers and shareholders, or any claims arising out of or in relation to any contract or common law right including without limitation any
claim in tort or contract relating to the breach of an oral, written or implied contract, breach of an implied covenant of good faith and fair dealing, misrepresentation, defamation, interference with contract, interference with prospective economic
advantage, retaliation, harassment, conspiracy, wrongful termination, intentional or negligent infliction of emotional or psychological injury, mental or emotional distress, mental anguish, negligence, humiliation, embarrassment, pain and suffering,
loss of personal or professional reputation, loss of career opportunities, stigmatization or loss of job status or satisfaction; (iii)&nbsp;any employment-related claims for compensatory, consequential or punitive damages, equitable relief,
attorneys&#146; fees or litigation costs, back-pay, front-pay, past or prospective benefits from individual, group or other insurance coverage or any other source, loss of salary, net accumulations, wages, expense reimbursements, vacations,
earnings, interest or loss of any other incidents, terms or conditions of employment; and (iv)&nbsp;any claim for attorneys&#146; fees. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">Mr.&nbsp;Haines and NTC agree that nothing in Paragraphs 2 or 3 of this Agreement waives any claims or rights that Mr.&nbsp;Haines may have which are not subject to his unilateral waiver under applicable law.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">3. <B><U>Age Claim Release</U></B>. Mr.&nbsp;Haines specifically agrees that: </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">A. He is releasing any and all claims under the Age Discrimination in Employment Act of 1967 (29 U.S.C. &#167;&#167; 621 <I>et seq</I>.),
as amended by the Older Workers Benefit Protection Act (and any comparable state or local laws), arising up to the date that he signs this Agreement. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">B. The consideration he will receive is greater than normally provided by NTC&#146;s policies to a person of his length of service and responsibility. </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">C. He has had an opportunity to consult with an attorney of his choice before he executed this instrument. </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">D. He has been given twenty-one days from the date he received this Agreement (or until March&nbsp;2, 2009) to decide whether to sign the
document. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">E. He has seven days after he signs this Agreement to revoke its execution (the &#147;Revocation Period&#148;).
Mr.&nbsp;Haines agrees that if he revokes his execution of this Agreement, he will immediately provide Nancy Baldwin, Vice-President of Human Resources&nbsp;&amp; Investor Relations of NTC, with written notice of the revocation, transmitted to NTC
by overnight delivery. In the event of such revocation, all obligations </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">3 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman" SIZE="2">of NTC under this Agreement shall immediately cease. In the absence of such revocation, this Agreement
will become effective on the eighth day after Mr.&nbsp;Haines signs it. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4. <B><U>No Re-employment</U></B>. Mr.&nbsp;Haines waives all
claims to employment, re-employment or engagement with NTC. Mr.&nbsp;Haines affirmatively agrees not to seek employment, re-employment or engagement with NTC. Mr.&nbsp;Haines releases NTC from any future claims concerning any application for
employment or engagement he makes in breach of this Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">5. <B><U>No Admissions</U></B>. Mr.&nbsp;Haines acknowledges that the
Separation Benefits provided by NTC, and its execution of this Agreement, are not an admission of wrongdoing of any kind on the part of the entities and persons hereby released, by whom wrongdoing of any kind is expressly denied. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">6. <B><U>Continued Obligations</U></B>. Mr.&nbsp;Haines confirms the existence and enforceability of all his obligations to NTC, including those:
(a)&nbsp;under Section&nbsp;8 of the Employment Agreement; (b)&nbsp;under that certain Confidential Information and Proprietary Rights Agreement between NTC and Mr.&nbsp;Haines entered into on or about June&nbsp;11, 2001; (c)&nbsp;under the Illinois
Trade Secrets Act; (d)&nbsp;under NTC&#146;s Insider Trading Policy and practices; and (e)&nbsp;under applicable law concerning his fiduciary duties to NTC as an officer and director possessing material insider information. Mr.&nbsp;Haines further
agrees that: (x)&nbsp;if he is ever required by subpoena or order of any court or administrative agency to disclose any information concerning NTC, including its confidential or proprietary information of any kind, he will first notify NTC in
writing immediately upon his receiving any such subpoena or order and before making any disclosure; and (y)&nbsp;upon NTC&#146;s request, Mr.&nbsp;Haines will cooperate in any legal proceedings which in whole or part relate to any events or matters
occurring while he was employed by NTC and/or about which he has relevant information, provided that NTC will reimburse Mr.&nbsp;Haines for the reasonable travel, lodging and food expenses that he incurs in connection with providing such
cooperation, subject to NTC&#146;s policy governing Employee Expense Reimbursement for Corporate Expenditures in effect on February&nbsp;9, 2009. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">7. <B><U>Non-Disparagement</U></B>. Mr.&nbsp;Haines agrees that he will not directly or indirectly make or cause to be made any statement or other form of communication that could be reasonably interpreted as disparaging the reputation or
business interests of NTC or any of its respective officers, directors, shareholders, employees, customers, vendors or their representatives. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">8. <B><U>Return of NTC Property</U></B>. Mr.&nbsp;Haines shall immediately return to NTC all its property in his possession or control, including without limitation: (a)&nbsp;all cellular telephones (together with all telephone numbers
assigned to such telephones), keys, laptop computers, printers and related equipment; (b)&nbsp;all electronically-stored information created by or on behalf of NTC, or otherwise belonging to NTC, including all such information contained in any hard
drive or computer owned by Mr.&nbsp;Haines; and (c)&nbsp;all notes, documents and other written materials, including any copies, excerpts, summaries or compilations thereof. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">4 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">9. <B><U>Integration, No Other Promises and Voluntary Signing</U></B>. Mr.&nbsp;Haines acknowledges that:
all the Separation Benefits provided by NTC are described in this Agreement; no other promise or agreement of any kind has been made to or with him by any person or entity whatsoever to cause him to execute this Agreement; this instrument (and the
other documents referenced herein) constitutes the entire agreement between the parties; and he has knowingly signed this Agreement of his own free will, intending to be legally bound by it. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">10. <B><U>No Assignment</U></B>. Mr.&nbsp;Haines warrants that he has not assigned any claim, action, cause of action, suit, contract, plan, controversy,
promise, damages, award or judgments which he had, has or hereafter may have arising from any matters connected in any way with his employment by, or offices or directorship with, NTC or any claims released in this instrument. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">12. <B><U>Governing Law</U></B>. This Agreement shall be construed in accord with and governed by the laws of the State of Illinois. </FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ ROBERT W. HAINES</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2"><B>NANOPHASE TECHNOLOGIES CORPORATION</B></FONT></TD></TR>
<TR>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">ROBERT W. HAINES</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD COLSPAN="3" VALIGN="top"></TD></TR>
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<TD VALIGN="top" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">02-11-09</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Nancy Baldwin</FONT></TD></TR>
<TR>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">Date</FONT></TD>
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<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Nancy Baldwin,</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Vice-President of Human
Resources</FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px"><FONT FACE="Times New Roman" SIZE="2">&amp; Investor Relations</FONT></P></TD></TR>
<TR>
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<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">02-12-09</FONT></TD></TR>
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<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Date</FONT></TD></TR>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">5 </FONT></P>

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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>4
<FILENAME>dex991.htm
<DESCRIPTION>PRESS RELEASE
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">Exhibit 99.1 </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>NANOPHASE ANNOUNCES CHANGES IN PRINCIPAL OFFICERS AND DIRECTORS </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Romeoville, IL, March 3, 2009 &#150; Nanophase
Technologies (Nasdaq: NANX)</B>,<B></B> a technology leader in nanomaterials and advanced nanoengineered products, announced today that the Company accepted the resignation of Dr. Richard Brotzman, effective February 28th, as its Chief Technology
Officer, so that he may pursue new entrepreneurial business opportunities. Dr. Brotzman was responsible for several of the Company&#146;s key patents and served as technical liaison to many of the Company&#146;s market partners, helping to bring
Nanophase from a development stage company to a commercial enterprise. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">The Company also accepted the resignation of Robert Haines, VP of Operations,
effective February 28, 2009, who left the Company for health related reasons. Mr. Haines was the critical driver in the Company&#146;s progression towards developing the world-class quality-driven volume manufacturing platform that has become one of
its key strengths. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Nanophase also announced that Jess Jankowski has been elevated to the position of President &amp; Chief Executive Officer and board
director, effective February 28, 2009. Mr. Jankowski had been Nanophase&#146;s Acting Chief Executive Officer since August of 2008. He will continue to serve also as Chief Financial Officer as the Company conducts a search for his replacement in
that role. Don Perkins, the Company&#146;s Chairman, commented that &#147;Mr. Jankowski has earned the Board&#146;s trust over the years and has impressed us with his vision for Nanophase and the team he has developed since he assumed leadership six
months ago It is reassuring to note that Mr. Jankowski and his team hold an average of 8 years experience with Nanophase.&#148; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Nanophase Technologies
Corporation (NANX), <U>www.nanophase.com</U>, is a leader in nanomaterials technologies and provides nanoengineered solutions for multiple industrial product applications. Using a platform of patented and proprietary integrated nanomaterial
technologies, the Company creates products with unique performance attributes from two ISO 9001:2000 and ISO 14001 facilities. Nanophase delivers commercial quantity and quality nanoparticles, coated nanoparticles, and nanoparticle dispersions in a
variety of media. Information about Nanophase may be found in the Company&#146;s public filings or on its website. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">All numbers in this release are
approximate; refer to the financials accompanying the release for details. Earnings per share are stated as fully diluted. This press release contains words such as &#147;expects&#148;, &#148;shall&#148;, &#147;will&#148; , &#147;believes&#148; and
similar expressions that are intended to identify forward-looking statements within the meaning of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Such statements in this announcement are made based on the
Company&#146;s current beliefs, known events and circumstances at the time of publication, and as such, are subject in the future to unforeseen risks and uncertainties that could cause the Company&#146;s results of operations, performance and
achievements to differ materially from current expectations expressed in, or implied by, these forward-looking statements. These risk and uncertainties include the following: a decision by a customer to cancel a purchase order or supply agreement in
light of the Company&#146;s dependence on a limited number of key customers; uncertain demand for, and acceptance of, the Company&#146;s nanocrystalline materials; the Company&#146;s manufacturing capacity and product mix flexibility in light of
customer demand; the Company&#146;s limited marketing experience; changes in development and distribution relationships; the impact of competitive products and technologies; the Company&#146;s dependence on patents and protection of proprietary
information; the resolution of litigation in which the Company may become involved; and other risks described in the Company&#146;s Form 10K filed March 14, 2008, and other filings with the Securities and Exchange Commission. In addition, the
Company&#146;s forward-looking statements could be affected by general industry and market conditions and growth rates. Except as required by federal securities laws, the Company undertakes no obligation to update or revise these forward-looking
statements to reflect new events, uncertainties or other contingencies. </FONT></P>
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