Document:

Exhibit 4.10

 

 

AMENDMENT NO. 2

TO THE

FOG CUTTER LONG TERM

VESTING TRUST

 

Amendment No. 2 to
the Fog Cutter Long Term Vesting Trust Agreement dated as of May 26, 2004 (the “Amendment”),
between Fog Cutter Capital Group Inc., a Maryland corporation and the successor
in interest to Wilshire Real Estate Investments Inc. (the “Company”),
and David Dale-Johnson, Don H. Coleman and
Andrew Wiederhorn (hereinafter referred to, individually and collectively, as
the “Trustee” or “Trustees”) to the Fog Cutter Long Term Vesting
Trust Agreement made as of the 1st day of October, 2000 by and between the
Company and the Trustees, as amended from time to time (the “Trust Agreement”).

 

WHEREAS, the Company had
established the Trust Agreement to raise its employees’ and directors’ stock
ownership in the Company, thereby strengthening the mutuality of interest
between the employees, officers and directors and the Company’s stockholders;
and

WHEREAS, the Company and the
Trustees wish to amend the Trust Agreement to provide more flexibility in
bestowing awards to employees and officers under the Trust Agreement; and

WHEREAS, in accordance with
Section 10 of the Trust Agreement, the parties to the Trust Agreement may amend
the Trust Agreement without the consent or approval of any Trust Beneficiary;
and

NOW THEREFORE, in consideration
of the premises and the mutual agreements herein set forth, the parties hereby
agree as follows:

 

SECTION 1.  Definitions.  All terms used in this Amendment that are
defined in the Trust Agreement, either directly or by reference therein, have
the meanings assigned to them therein, except to the extent such terms are
defined or modified in this Amendment or the context clearly requires
otherwise.  In the event that any term or
provision contained herein shall conflict with or be inconsistent with any term
or provision contained in the Trust Agreement, the terms and provisions of this
Amendment shall govern.

SECTION 2.  Amendments.

(a)  The first
sentence of Section 2(c) of the Trust Agreement is hereby amended and restated
as follows:

“A Trust Beneficiary shall not have any rights with respect to shares
of Common Stock allocated to such individual’s account or any income credited
pursuant to Section 2(b) (“Trust Income”), unless and until the
individual completes five years of continuous service with the Company,
commencing with the date the individual first receives an 

 

 

allocation of
shares of Common Stock hereunder (the “Vesting Period”); provided,
however that the Trustees and the Company may agree in writing that such period
of service need not be continuous for an employee or officer who leaves the
Company for a period of not more than 36 months.”

 

(b)  Section
2(d) of the Trust Agreement is hereby amended and restated in its entirety as
follows:

                “(d)         In the event a Trust Beneficiary
terminates employment with the Company for any reason prior to completion of
such individual’s Vesting Period, the shares of Common Stock and any Trust
Income allocated to such individual hereunder shall be immediately forfeited
and, subject to Section 10(c) hereof, be reallocated by the Trustees to those
employees and/or directors of the Company, in such amounts and at such times as
determined by the Trustees in their sole discretion; provided, however, that if
the Trustees and the Company have determined that an employee or officer need
not provide continuous service and have agreed that such employee or officer
may leave the Company for a period not exceeding 36 months as provided in
Section 2(c) above, then such Trust Beneficiary shall not forfeit his shares of
Common Stock (and they shall not be reallocated) or any Trust Income and
instead the Trust shall continue to hold such shares until such time as such
Trust Beneficiary has returned to the Company and completed the Vesting Period
(or has failed to do so).”

 

SECTION 3.  Agreement.  The Trustees and the Company have determined
that Andrew Wiederhorn, the Company’s Chief Executive Officer, need not provide
continuous service and have agreed that such officer may leave the Company for
a period not exceeding 36 months and the Trust shall continue to hold shares of
Common Stock and Trust Income allocated to him.

SECTION 4.  Ratification
of Agreement.  As supplemented and
amended by this Amendment, the Trust Agreement is in all respects ratified and
confirmed and the Trust Agreement, as so supplemented and amended by this
Amendment, shall be read, taken, and construed as one and the same instrument.

SECTION 5.  Counterparts.  This Amendment may be executed in any number
of counterparts, each of which so executed shall be deemed to be an original,
but all of such counterparts shall together constitute but one and the same
instrument.

SECTION
6.  Governing Law; Instrument under
Seal.  THIS AMENDMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
DELAWARE APPLICABLE TO CONTRACTS MADE AND PERFORMED WITHIN THE STATE OF
DELAWARE AND WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAWS PROVISIONS THEREOF.

 

 

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                IN WITNESS WHEREOF, the parties hereto have executed
this Amendment No. 1 to the Trust Agreement effective as of the 26 day of May,
2004.

 

 

	
   

  	
  FOG CUTTER CAPITAL GROUP
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  David Dale-Johnson

  
	
   

  	
   

  	
   

  
	
   

  	
  TRUSTEE

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  Andrew A. Wiederhorn

  
	
   

  	
   

  	
   

  
	
   

  	
  TRUSTEE

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Don H. Coleman

  
	
   

  	
   

  	
   

  
	
   

  	
  TRUSTEE

  
				

 

 

3Exhibit 10.1

 

AGREEMENT AND GENERAL RELEASE

 

Tyco
International Ltd., its affiliates, subsidiaries, divisions, successors and
assigns and the current, future and former employees, officers, directors,
trustees and agents thereof (collectively referred to throughout this Agreement
as “Employer”) and David J. FitzPatrick, his heirs, executors, administrators,
successors and assigns (collectively referred to throughout this Agreement as “Employee”)
agree:

 

1.  VOLUNTARY RESIGNATION.

 

Employee
is voluntarily resigning his employment from Employer under the terms of Section 7(f)
of the Executive Employment Agreement dated September 18, 2002 (together
with the First Amendment To The Executive Employment Agreement, collectively
referred to herein as “Employment Agreement”), and Employee agrees and
acknowledges that (i) such resignation does not constitute a resignation by him
for “Good Reason,” as defined in Section 7(e) of the Employment Agreement,
or in any plan document or grant agreement applicable to stock options,
restricted stock or deferred stock units granted to Employee by the Employer,
and no “Good Reason” (as so defined) exists as of the date hereof and,
therefore, (ii) absent the terms of this Agreement and General Release,
Employee would be entitled to receive in connection with such resignation only
those benefits provided under Section 8(c) of the Employment
Agreement.  Employee acknowledges and
agrees that he is not entitled to any rights or benefits under the Employment
Agreement or otherwise, other than those expressly set forth herein.

 

Employee’s
last day of employment with Employer will be December 31, 2005. In
addition, effective as of March 7, 2005, Employee resigns from his
position as Executive Vice President and Chief Financial Officer of Tyco
International Ltd..   Employee will not
be eligible for any benefits or compensation after December 31, 2005,
other than as specifically provided in Sections 5 and 8 of the Employment
Agreement and as set forth herein, subject to the Employee’s executing,
delivering and not revoking Appendix 1 hereto. Employee further acknowledges
and agrees that, after December 31, 2005, he will not represent himself as
being a director, employee, officer, trustee, agent or representative of the
Employer for any purpose and will not make any public statements relating to
the Employer, other than general statements relating to his position, title or
experience with the Employer, subject to the confidentiality provision under Section 11(a)
of the Employment Agreement and in no event will the Employee make any
statements as an agent or representative of the Employer or conduct or
participate in any interview, press conference or other similar communication
concerning the Company or its officers or directors, or concerning his
employment or termination of employment. 
In addition, effective as of March 7, 2005 Employee resigns from
all offices, directorships, trusteeships, committee memberships and fiduciary
capacities held with, or on behalf of, the Employer or any benefit plans of the
Employer, except as otherwise agreed with the Employer’s Chief Executive
Officer. Employee further acknowledges and agrees that, after March 7,
2005, he will not represent himself as being a director, officer, or trustee of
the Employer.  These resignations will
become irrevocable as set forth in Section 3 below.

 

During
the period from his resignation as Executive Vice President and Chief Financial
Officer to the date of termination, Employee will continue to be employed by
Employer as a

 

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salaried employee, with
the title of “Special Advisor to the Chief Executive Officer,” at the same base
salary and benefits as in effect on the date of resignation as Executive Vice
President and Chief Financial Officer. 
Employee will be required to report to work through the date of
termination as directed by Employer’s Chief Executive Officer and to work on
matters as assigned by the Chief Executive Officer including, among other
things, facilitating the transition of the duties of his position to his
successor, assisting in the preparation and filing of financial reports, and
management of such strategic projects or initiatives as the Chief Executive
Officer may assign.  Employee shall perform the services described
herein at such location(s) as may be approved by the Chief Executive Officer;
where appropriate, and with the consent of the Chief Executive Officer,
Employee may perform such services from his home office.  Employee agrees that, consistent with current
practice, no tax adjustment will be made in his compensation from and after March 7,
2005 based on the location of the services he performs hereunder.  Employee further agrees that if, prior
to December 31, 2005, he (i) obtains employment with another company, (ii)
becomes a consultant or provides services to any other company without the
written consent of Employer, or (iii) fails or refuses to perform the services
assigned to him by the Chief Executive Officer as described above for any
reason other than a material breach of this Agreement by the Employer, the date
of termination hereunder shall accelerate to the earliest of (i) the date that
Employee begins such other employment, (ii) the date that Employee first
becomes a consultant or provides services to such other company, or (iii) the
date on which Employee first fails or refuses to perform services assigned to
him by the Chief Executive Officer; provided, that the foregoing shall not be
deemed to prohibit Employee from serving as a director of up to two public
companies, with the approval of the Chief Executive Officer and the Nominating
and Governance Committee of the Employer’s Board of Directors; and provided
further that a failure or refusal to perform assigned services shall only
accelerate the date of termination if Employee does not cure such failure or
refusal as soon as practical, but no later than five (5) business days, after
being provided, where feasible, written notice of such failure or refusal.  In addition, the Employer may, in its sole
discretion, accelerate the date of termination from December 31, 2005 to
any date on or after September 30, 2005 (or any earlier date on which
there exists “Cause” as defined in Section 7(c) of the Employment
Agreement); in such event, such earlier date shall be deemed the date of
termination for all purposes hereunder, except that Employee shall continue to
be paid his base salary (in accordance with the Employer’s regular payroll
practices) through December 31, 2005.

 

2.  CONSIDERATION.  The parties acknowledge that this Agreement
and General Release is being executed in accordance with Section 9 of the
Employment Agreement.  The parties
further agree as follows:

 

(a)                                  Bonus.  Employee shall be eligible to receive an
annual bonus for fiscal year 2005; such bonus shall be calculated under the
terms of the Tyco International Ltd. 2004 Stock and Incentive Plan without
application of negative discretion for performance.  Employee shall not be eligible to receive any
bonus for fiscal year 2006.

 

(b)                                 Medical
Benefits.  Employee (and Employee’s
spouse and dependents) shall be eligible to continue to receive medical, dental
and vision coverage at Employee’s own expense following the date of termination
as provided under the “COBRA” provisions of Employer’s applicable group medical
plan.

 

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(c)                                  Flexible
Spending Account.  Employee’s pre-tax
contributions to a Flexible Spending Account will cease on Employee’s date of
termination.  Any claims incurred before
Employee’s date of termination will be reimbursed according to the terms of the
applicable plan. Employee may submit a request for reimbursement for expenses
incurred before Employee’s date of termination for reimbursement until March of
2006.

 

(d)                                 Insurance.  Employee shall be entitled, following the
date of termination, to convert his life insurance coverage under Employer’s
applicable group term life insurance plan to a policy of individual coverage,
as provided under the terms of the plan. 
Employer will cease paying premiums under Employee’s individual
universal life insurance policy with a face value of $3,515,000 effective as of
the date of termination. Employee’s group disability insurance coverage will
end on Employee’s date of termination. 
Employer’s contribution to Employee’s supplemental officer insurance
benefits will terminate on the date of termination, and such benefits will be
treated at termination in accordance with their terms.

 

(e)                                  Stock
Options, Deferred Stock Units and Other Long-Term Incentive Awards.  Employee shall not receive a Long Term
Incentive Award for fiscal year 2005 or fiscal year 2006.  The unvested portion of Employee’s 2004
Option Grant shall be forfeited as of the date of termination.  The 2004 Restricted Stock Grant shall vest on
March 26, 2007 in accordance with the vesting schedule set forth in
the grant agreement under which such restricted shares were awarded, as if
Employee remained in employment through such date, contingent upon Employee’s
compliance in all respects with the terms of this Agreement and General Release
(including, without limitation, the non-competition, non-solicitation,
non-disparagement and other covenants set forth herein and in Section 11
of the Employment Agreement).  The
Sign-On Option Grant, the Sign-On Deferred Stock Units, the 2002/2003 Option
Grant and the 2002/2003 Deferred Stock Units shall vest and be exercisable (in
the case of options) or shall vest and be payable (in the case of shares of
common stock underlying deferred stock units) in accordance with the terms of
Employer’s Long Term Incentive Plan and the grant agreements under which such
options and deferred stock units were awarded.

 

(f)                                    Tyco Supplemental Savings and Retirement Plan.  Employee’s
benefits under the Tyco Supplemental Savings and Retirement Plan (formerly the
Tyco Deferred Compensation Plan) (“SSRP”) will be treated as addressed in the
plan document.  Employee shall receive
his account balance under the SSRP in fifteen (15) annual installments, with
the first installment being paid as soon as practical after July 1, 2006,
and the remaining installments being paid as soon as practical after January 1
of each remaining year in such installment period, with such installment
payment amounts being determined in accordance with the applicable provisions
of the SSRP.

 

(g)                                 Supplemental
Retirement Benefit.  The value of
Employee’s supplemental retirement benefit, as set forth in Section 6(b)
of the Employment Agreement, shall be determined as of the date of termination,
based on Final Average Earnings and years of service through the date of
termination, plus actual 2005 annual bonus. 
Such amount shall be paid to Employee, as elected by him in a written
notice to the Employer no later than April 15, 2005, either in a lump-sum
cash payment, with such payment to be made as of July 1, 2006, or in the

 

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form of a joint and 50%
survivor annuity, with his spouse as survivor annuitant, with monthly payments
commencing as of July 1, 2006.  The amount
of such lump-sum payment or annuity shall be determined in either case by
Mercer Human Resource Consulting, based on the applicable provisions of Section 6(b)
of the Employment Agreement.

 

(h)                                 Flex-Perq
Allowance; Use of Company Aircraft. 
Employee shall continue to receive Flex-Perq Allowance payments under
Employer’s Flexible Perquisite Plan for US Executives through the date of
termination.  Employee’s use (and use by
his family) of Employer aircraft for personal air travel in accordance with
Employer’s Corporate Aircraft Policy shall cease as of the date of termination.

 

(i)                                     Tax
Status of Benefits.  In the event
that provision of any of the benefits listed above would adversely affect the
tax status of the applicable plan or benefits, Employer, in its sole
discretion, may elect to pay to the Employee cash in lieu of such coverage in
an amount equal to Employer’s contribution or average cost of providing such
coverage (or, in the case of benefits that Employee is to continue at his own
expense, shall subsidize Employee’s purchase of such benefits such that his
out-of-pocket expense is no greater than if he had been able to purchase such
coverage under the applicable Employer plan or benefit).

 

(j)                                     Expenses.  Employer will reimburse Employee for his reasonable
out of pocket expenses (including reasonable attorneys’ fees) incurred in
connection with his preparation for and participation in criminal or civil
proceedings on behalf of Employer.

 

3.  REVOCATION. 
Employee may revoke this Agreement and General Release for a period of
seven (7) calendar days following the day he executes this Agreement and
General Release. Any revocation within this period must be submitted, in
writing, to Tyco and state, “I hereby revoke my acceptance of our Agreement and
General Release.” The revocation must be personally delivered to Laurie Siegel,
Senior Vice President, Human Resources, or her designee, or mailed to Tyco, 9
Roszel Road, Princeton, NJ 08540 and postmarked within seven (7) calendar days
of execution of this Agreement and General Release. This Agreement and General
Release shall not become effective or enforceable until the revocation period
has expired. If the last day of the revocation period is a Saturday, Sunday, or
legal holiday in New York, then the revocation period shall not expire until
the next following day which is not a Saturday, Sunday, or legal holiday.

 

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4.  GENERAL RELEASE OF CLAIM.

 

(a)                                  Employee
knowingly and voluntarily releases and forever discharges Employer from any and
all claims, causes of action, demands, fees and liabilities of any kind
whatsoever, whether known and unknown, against Employer, Employee has, has ever
had or may have as of the date of execution of this Agreement and General Release,
including, but not limited to, any alleged violation of:

 

	
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  The National
  Labor Relations Act, as amended;

  
	
   

  	
   

  	
   

  
	
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  Title VII of the
  Civil Rights Act of 1964, as amended;

  
	
   

  	
   

  	
   

  
	
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  The Civil Rights
  Act of 1991;

  
	
   

  	
   

  	
   

  
	
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  Sections 1981
  through 1988 of Title 42 of the United States Code, as amended;

  
	
   

  	
   

  	
   

  
	
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  The Employee
  Retirement Income Security Act of 1974, as amended;

  
	
   

  	
   

  	
   

  
	
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  The Immigration
  Reform and Control Act, as amended;

  
	
   

  	
   

  	
   

  
	
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  The Americans
  with Disabilities Act of 1990, as amended;

  
	
   

  	
   

  	
   

  
	
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  The Age
  Discrimination in Employment Act of 1967, as amended;

  
	
   

  	
   

  	
   

  
	
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  The Older
  Workers Benefit Protection Act of 1990;

  
	
   

  	
   

  	
   

  
	
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  The Worker
  Adjustment and Retraining Notification Act, as amended;

  
	
   

  	
   

  	
   

  
	
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  The Occupational
  Safety and Health Act, as amended;

  
	
   

  	
   

  	
   

  
	
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  The Family and
  Medical Leave Act of 1993;

  
	
   

  	
   

  	
   

  
	
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  The New York
  State Human Rights Law;

  
	
   

  	
   

  	
   

  
	
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  The New York
  City Human Rights Law;

  
	
   

  	
   

  	
   

  
	
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  The New Jersey
  Law Against Discrimination;

  
	
   

  	
   

  	
   

  
	
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  The New Jersey
  Conscientious Employee Protection Act;

  
	
   

  	
   

  	
   

  
	
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  Any other
  federal, state or local civil or human rights law or any other local, state
  or federal law, regulation or ordinance;

  

 

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  Any public
  policy, contract, tort, or common law; or

  
	
   

  	
   

  	
   

  
	
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  Any allegation
  for costs, fees, or other expenses including attorneys’ fees incurred in
  these matters.

  

 

Notwithstanding
anything herein to the contrary, the sole matters to which the Agreement and
General Release do not apply are: (i) the Employee’s rights of indemnification
and directors and officers liability insurance coverage to which he was
entitled immediately prior to his resignation as Executive Vice President and
Chief Financial Officer with regard to his service as an officer of the
Employer (including, without limitation, under Sections 19 and 20 of the
Employment Agreement); or (ii) the Employee’s rights, except as modified
herein, under any tax-qualified pension or claims for accrued vested benefits
under any other employee benefit plan, policy or arrangement maintained by the
Employer or under COBRA.

 

(b)                                 Employee
agrees that on the date of termination, he will execute a general release in
the form attached hereto as Appendix 2.

 

5.  NO CLAIMS PERMITTED.  Employee waives his right to file any charge
or complaint against Employer in which he seeks individual relief arising out
of his employment with or separation from Employer before any federal, state or
local court or any state or local administrative agency, except where such
waivers are prohibited by law. This Agreement, however, does not prevent
Employee from filing a charge with the Equal Employment Opportunity Commission,
any other federal government agency, and/or any government agency concerning
claims of discrimination, although Employee waives his right to recover any
damages or other relief in any claim or suit brought by or through the Equal
Employment Opportunity Commission or any other state or local agency on behalf
of Employee under the Age Discrimination in Employment Act, Title VII of the Civil
Rights Act of 1964 as amended, the Americans with Disabilities Act, or any
other federal or state discrimination law, except where such waivers are
prohibited by law.

 

6.  AFFIRMATIONS. 
Employee affirms he has not filed, has not caused to be filed, and is
not presently a party to, any claim, complaint, or action against Employer in
any forum or form. Employee further affirms that he has been paid and/or has
received all compensation, wages, bonuses, commissions, and/or benefits to
which he may be entitled and no other compensation, wages, bonuses, commissions
and/or benefits are due to him, except as provided in Sections 5 and 8 of the
Employment Agreement or herein. Employee also affirms he has no known workplace
injuries.

 

7.  RESTRICTIVE COVENANTS; CONFIDENTIALITY, COOPERATION;
RETURN OF PROPERTY.

 

(a)                                  RESTRICTIVE
COVENANTS.                                  Employee
acknowledges and affirms the continuing validity and enforceability of the
various restrictive covenants set forth in Section 11 of the Employment
Agreement.  In exchange for the benefits
provided herein, which Employee acknowledges provide consideration in addition
to that provided under the terms of the Employment Agreement, the Employee
expressly agrees as follows.

 

6

 

(i)                                     Confidentiality.  The Employee agrees that he shall not,
directly or indirectly, use, make available, sell, disclose or otherwise
communicate to any person, other than in the course of the Employee’s assigned
duties and for the benefit of the Employer, either during the period of the
Employee’s employment or at any time thereafter, any nonpublic, proprietary or
confidential information, knowledge or data relating to the Employer, any of
its subsidiaries, affiliated companies or businesses, which shall have been
obtained by the Employee during the Employee’s employment by the Employer. The
foregoing shall not apply to information that (i) was known to the public prior
to its disclosure to the Employee; (ii) becomes known to the public subsequent
to disclosure to the Employee through no wrongful act of the Employee or any
representative of the Employee; or (iii) the Employee is required to disclose
by applicable law, regulation or legal process (provided that the Employee
provides the Employer with prior notice of the contemplated disclosure and
reasonably cooperates with the Employer at its expense in seeking a protective
order or other appropriate protection of such information). Notwithstanding
clauses (i) and (ii) of the preceding sentence, the Employee’s obligation to
maintain such disclosed information in confidence shall not terminate where
only portions of the information are in the public domain.

 

(ii)                                  Nonsolicitation.  During the Employee’s employment with the
Employer and for the one year period thereafter, the Employee agrees that he
will not, directly or indirectly, individually or on behalf of any other
person, firm, corporation or other entity, knowingly solicit, aid or induce (i)
any managerial level employee of the Employer or any of its subsidiaries or
affiliates to leave such employment in order to accept employment with or
render services to or with any other person, firm, corporation or other entity
unaffiliated with the Employer or knowingly take any action to materially
assist or aid any other person, firm, corporation or other entity in
identifying or hiring any such employee or (ii) any customer of the Employer or
any of its subsidiaries or affiliates to purchase goods or services then sold
by the Employer or any of its subsidiaries or affiliates from another person,
firm, corporation or other entity or assist or aid any other persons or entity
in identifying or soliciting any such customer.

 

(iii)                               Noncompetition.  The Employee acknowledges that he performs
services of a unique nature for the Employer that are irreplaceable, and that
his performance of such services to a competing business will result in
irreparable harm to the Employer. Accordingly, during the Employee’s employment
hereunder and for the one year period thereafter, the Employee agrees that the
Employee will not, directly or indirectly, own, manage, operate, control, be
employed by (whether as an employee, consultant, independent contractor or
otherwise, and whether or not for

 

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compensation)
or render services to any person, firm, corporation or other entity, in
whatever form, engaged in any business of the same type as any business in
which the Employer or any of its subsidiaries or affiliates is engaged on the
date of termination or in which they have proposed, on or prior to such date,
to be engaged in on or after such date and in which the Employee has been
involved to any extent (other than de minimus) at any time during the 12-month
period ending with the date of termination, in any locale of any country in
which the Employer conducts business. This Section 7(a)(iii) shall not
prevent the Employee from owning not more than one percent of the total shares
of all classes of stock outstanding of any publicly held entity engaged in such
business, nor will it restrict the Employee from rendering services to
charitable organizations, as such term is defined in Section 501(c) of the
Code.

 

(iv)                              Nondisparagement.  Each of the Employee and the Employer (for
purposes hereof, the Employer shall mean only the executive officers and
directors thereof and not any other employees) agrees not to make any public
statements that disparage the other party, or in the case of the Employer, its
respective affiliates, employees, officers, directors, products or services.
Notwithstanding the foregoing, statements made in the course of sworn testimony
in administrative, judicial or arbitral proceedings (including, without
limitation, depositions in connection with such proceedings) shall not be subject
to this Section 7(a)(iv).

 

(v)                                 Equitable
Relief and Other Remedies.  The
Employee acknowledges and agrees that the Employer’s remedies at law for a
breach or threatened breach of any of the provisions of this Section would
be inadequate and, in recognition of this fact, the Employee agrees that, in
the event of such a breach or threatened breach, in addition to any remedies at
law, the Employer, without posting any bond, shall be entitled to obtain
equitable relief in the form of specific performance, temporary restraining
order, a temporary or permanent injunction or any other equitable remedy which
may then be available.

 

(vi)                              Reformation.  If it is determined by a court of competent
jurisdiction in any state that any restriction in this Section 7 is excessive
in duration or scope or is unreasonable or unenforceable under the laws of that
state, it is the intention of the parties that such restriction may be modified
or amended by the court to render it enforceable to the maximum extent
permitted by the law of that state.

 

(vii)                           Survival
of Provisions. The obligations contained in this Section 7 shall
survive the termination or expiration of the Employee’s employment with the
Employer and shall be fully enforceable thereafter.

 

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(b)                                 Except
as required by law or agreed to in writing by Employer and Employee, Employee
agrees not to disclose any information regarding the circumstances surrounding
the cessation of his employment, the existence, terms, or conditions of this
Agreement and General Release, or the Company’s business, operations or
financial condition, to any person or entity whatsoever, including without
limitation, any members of the media (including, but not limited to, print
journalists, newspapers, radio, television, cable, satellite programs, or
Internet media) or any Internet web page or “chat room,” or any other entity or
person, with the exception of Employee’s spouse, accountant, tax advisor,
and/or attorneys. Notwithstanding the aforementioned provision, nothing herein
shall preclude Employee from divulging any information to any agency of the
federal, state, or local government pursuant to an official request by such
government agency or pursuant to court order (provided that the Employee provides
the Employer with prior notice of the contemplated disclosure and reasonably
cooperates with the Employer at its expense in seeking a protective order or
other appropriate protection of such information).

 

(c)                                  Nothing
in this Agreement and General Release or the Employment Agreement shall
prohibit or restrict Employee from: (i) making any disclosure of information
required by law; (ii) providing information to, or testifying or otherwise
assisting in any investigation or proceeding brought by, any federal regulatory
or law enforcement agency or legislative body, any self-regulatory
organization, or Employer’s designated legal, compliance or human resources
officers; or (iii) filing, testifying, participating in or otherwise assisting
in a proceeding relating to an alleged violation of any federal, state or
municipal law relating to fraud, or any rule or regulation of the Securities
and Exchange Commission or any self-regulatory organization.

 

(d)                                 Employee
agrees to reasonably cooperate with the Employer and its counsel in connection
with any investigation, administrative proceeding or litigation relating to any
matter that occurred during his employment in which he was involved or of which
he has knowledge. Employee acknowledges that Employer may need to consult with
Employee from time to time on a reasonable basis after Employee’s date of
termination on matters that Employee had worked on prior to the date of
termination. Employee agrees to continue to cooperate with Employer and to
provide any such information as is reasonably requested by Employer.  Employer agrees that after the date of
termination, it will provide Employee with a fee of $2,500 a day in connection
with matters that require his attendance at Employer or on Employer’s
behalf.  Employer will reimburse Employee
for the cost of first class air travel or for any other reasonable expenses
incurred by Employee in connection with such attendance.

 

(e)                                  Employee agrees that within five business days of
the date of termination he will return to the Employer all property belonging
to the Employer, including but not limited to any leased vehicle, laptop, cell
phone, keys, access cards, phone cards and credit cards.

 

8.  GOVERNING LAW AND INTERPRETATION;
ARBITRATION.  This Agreement and General
Release shall be governed and conformed in accordance with the laws of the
State of New York without regard to its conflict of laws provision. In the
event Employee or Employer breaches any provision of this Agreement and General
Release, Employee and Employer affirm

 

9

 

either may institute an
action to specifically enforce any term or terms of this Agreement and General
Release.

 

Any dispute or
controversy arising under or in connection with this Agreement and General
Release, other than injunctive relief under Section 7(a)(v) hereof or
damages for breach of Section 7, shall be settled exclusively by
arbitration, conducted before a single arbitrator in New York, New York in
accordance with the JAMS Streamlined Arbitration Rules and Procedures or JAMS
Comprehensive Arbitration Rules and Procedures, as applicable, but expressly
excluding Rule 28 of the JAMS Streamlined Rules (Final Offer (or Baseball)
Arbitration Option) and Rule 33 of the JAMS Comprehensive Rules (Final Offer
(or Baseball) Arbitration Option), as the case may be (or any successor
provisions). The arbitrator will be a former or retired judge selected from a
list of those affiliated with JAMS. The arbitrator will have the authority to
permit discovery and to follow the procedures that he or she determines to be
appropriate. The arbitrator will have no power to award consequential
(including lost profits), punitive or exemplary damages. The decision of the
arbitrator will be final and binding upon the parties hereto. Judgment may be
entered on the arbitrator’s award in any court having jurisdiction.  Each party shall bear its own legal fees and
costs and equally divide the forum fees and cost of the arbitrator.

 

Should any provision of
this Agreement and General Release be declared illegal or unenforceable by any
court of competent jurisdiction and should the provision be incapable of being
modified to be enforceable, such provision shall immediately become null and
void, leaving the remainder of this Agreement and General Release in full force
and effect. Nothing herein, however, shall operate to void or nullify any
general release language contained in the Agreement and General Release.

 

9.  NONADMISSION OF WRONGDOING.  Employee agrees neither this Agreement and
General Release nor the furnishing of the consideration for this Release shall
be deemed or construed at any time for any purpose as an admission by Employer
of any liability or unlawful conduct of any kind.

 

10.  AMENDMENT. 
This Agreement and General Release may not be modified, altered or
changed except upon express written consent of both parties wherein specific
reference is made to this Agreement and General Release.

 

11.  ENTIRE AGREEMENT.  This Agreement and General Release sets forth
the entire agreement between the parties hereto and fully supersedes any prior
agreements or understandings between the parties; provided, however, that
notwithstanding anything in this Agreement and General Release, the provisions
contained in Section 11 of the Employment Agreement shall survive and
continue in full force and effect. Employee acknowledges he has not relied on
any representations, promises, or agreements of any kind made to him in
connection with his decision to accept this Agreement and General Release.

 

EMPLOYEE
HAS BEEN ADVISED THAT HE HAS UP TO TWENTY-ONE (21) CALENDAR DAYS TO REVIEW THIS
AGREEMENT AND GENERAL RELEASE AND

 

10

 

HAS BEEN ADVISED IN
WRITING TO CONSULT WITH AN ATTORNEY PRIOR TO EXECUTION OF THIS AGREEMENT AND
GENERAL RELEASE.

 

EMPLOYEE
AGREES ANY MODIFICATIONS, MATERIAL OR OTHERWISE, MADE TO THIS AGREEMENT AND
GENERAL RELEASE DO NOT RESTART OR AFFECT IN ANY MANNER THE ORIGINAL TWENTY-ONE
(21) CALENDAR DAY CONSIDERATION PERIOD.

 

HAVING
ELECTED TO EXECUTE THIS AGREEMENT AND GENERAL RELEASE, TO FULFILL THE PROMISES
SET FORTH HEREIN, AND TO RECEIVE THE SUMS AND BENEFITS SET FORTH IN THE
EMPLOYMENT AGREEMENT AND HEREIN, EMPLOYEE FREELY AND KNOWINGLY, AND AFTER DUE
CONSIDERATION, ENTERS INTO THIS AGREEMENT AND GENERAL RELEASE INTENDING TO
WAIVE, SETTLE AND RELEASE ALL CLAIMS HE HAS OR MIGHT HAVE AGAINST EMPLOYER.

 

 

IN
WITNESS WHEREOF, the parties hereto knowingly and voluntarily executed this
Agreement and General Release as of the date set forth below:

 

	
  TYCO
  INTERNATIONAL LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  
	
   

  	
  /s/ EDWARD D.
  BREEN

  	
   

  
	
   

  	
  EDWARD D. BREEN

  
	
   

  	
  CHAIRMAN AND
  CHIEF EXECUTIVE OFFICER

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  
	
   

  	
  3/24/05

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DAVID J.
  FITZPATRICK

  
	
   

  	
   

  
	
   

  	
  /s/ DAVID J.
  FITZPATRICK

  	
   

  
	
   

  	
  MR. DAVID J.
  FITZPATRICK

  
	
   

  	
   

  
	
  Date:

  
	
   

  	
  3/22/05

  	
   

  
						

 

11

 

Re: Agreement and General Release

 

Dear David:

 

This
letter confirms that on March 22, 2005, I personally sent to you the
enclosed Agreement and General Release. You have up to 21 days to consider and
execute this Agreement and General Release, in which you waive rights,
including those under the Age Discrimination in Employment Act of 1967. To this
end, we advise you to consult with an attorney of your choosing prior to
executing this Agreement and General Release. 
If you execute this Agreement, you will have up to 7 days to revoke the
Agreement.

 

	
   

  	
  Regards,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ LAURIE
  SIEGEL

  
	
   

  	
  Laurie Siegel

  
	
   

  	
  Senior Vice
  President, Human Resources

  
	
   

  	
  Tyco
  International Ltd.

  

 

 

APPENDIX 1

 

Laurie Siegel

Senior Vice President,
Human Resources

Tyco International Ltd.

 

 

Re: Agreement and General Release

 

Dear Laurie,

 

On March 22,
2005, I executed an Agreement and General Release between Tyco International
Ltd. and me. I was advised by Tyco International Ltd., in writing, to consult
with an attorney of my choosing, and that I had up to 21days to review the
documents prior to executing this Agreement and General Release.

 

If I
do not revoke this Agreement during the next seven (7) calendar days, I request
that payment of the monies and benefits described in Sections 5 and 8 of the
Employment Agreement be made to me in an expeditious manner thereafter.

 

	
   

  	
  Regards,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signed:

  	
  /s/ DAVID J.
  FITZPATRICK

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DAVID J.
  FITZPATRICK

  
					

 

 

APPENDIX 2

 

GENERAL
RELEASE

 

In consideration for Tyco
International, Ltd.’s, and its affiliates, subsidiaries, divisions, successors
and assigns and the current, future and former employees, officers, directors,
trustees and agents thereof (collectively referred to throughout this General
Release as “Employer”), execution of the Agreement and General Releases dated                              ,
2005 (the “Agreement”) and the obligations contained therein, and subject to
the terms and conditions of the Agreement, David J. FitzPatrick (“Employee”)
hereby agree as follows:

 

1.  CONSIDERATION.  Employee acknowledge that this General
Release is being executed in accordance with Section 4 of the Agreement.

 

2.  GENERAL RELEASE OF CLAIM.  Employee knowingly and voluntarily releases
and forever discharges Employer from any and all claims, causes of action,
demands, fees and liabilities of any kind whatsoever, whether known and
unknown, against Employer, Employee has, has ever had or may have as of the
date of execution of this General Release, including, but not limited to, any
alleged violation of:

 

	
  -

  	
   

  	
  The National
  Labor Relations Act, as amended;

  
	
   

  	
   

  	
   

  
	
  -

  	
   

  	
  Title VII of the
  Civil Rights Act of 1964, as amended;

  
	
   

  	
   

  	
   

  
	
  -

  	
   

  	
  The Civil Rights
  Act of 1991;

  
	
   

  	
   

  	
   

  
	
  -

  	
   

  	
  Sections 1981
  through 1988 of Title 42 of the United States Code, as amended;

  
	
   

  	
   

  	
   

  
	
  -

  	
   

  	
  The Employee
  Retirement Income Security Act of 1974, as amended;

  
	
   

  	
   

  	
   

  
	
  -

  	
   

  	
  The Immigration
  Reform and Control Act, as amended;

  
	
   

  	
   

  	
   

  
	
  -

  	
   

  	
  The Americans
  with Disabilities Act of 1990, as amended;

  
	
   

  	
   

  	
   

  
	
  -

  	
   

  	
  The Age Discrimination
  in Employment Act of 1967, as amended;

  
	
   

  	
   

  	
   

  
	
  -

  	
   

  	
  The Older
  Workers Benefit Protection Act of 1990;

  
	
   

  	
   

  	
   

  
	
  -

  	
   

  	
  The Worker
  Adjustment and Retraining Notification Act, as amended;

  
	
   

  	
   

  	
   

  
	
  -

  	
   

  	
  The Occupational
  Safety and Health Act, as amended;

  

 

1

 

	
  -

  	
   

  	
  The Family and
  Medical Leave Act of 1993;

  
	
   

  	
   

  	
   

  
	
  -

  	
   

  	
  The New York
  State Human Rights Law;

  
	
   

  	
   

  	
   

  
	
  -

  	
   

  	
  The New York
  City Human Rights Law;

  
	
   

  	
   

  	
   

  
	
  -

  	
   

  	
  The New Jersey
  Law Against Discrimination;

  
	
   

  	
   

  	
   

  
	
  -

  	
   

  	
  The New Jersey
  Conscientious Employee Protection Act;

  
	
   

  	
   

  	
   

  
	
  -

  	
   

  	
  Any other
  federal, state or local civil or human rights law or any other local, state
  or federal law, regulation or ordinance;

  
	
   

  	
   

  	
   

  
	
  -

  	
   

  	
  Any public
  policy, contract, tort, or common law; or

  
	
   

  	
   

  	
   

  
	
  -

  	
   

  	
  Any allegation for
  costs, fees, or other expenses including attorneys’ fees incurred in these
  matters.

  

 

Notwithstanding
anything herein to the contrary, the sole matters to which the General Release
do not apply are: (i) the Employee’s rights of indemnification and directors
and officers liability insurance coverage to which he was entitled immediately
prior to his resignation as Executive Vice President and Chief Financial
Officer with regard to his service as an officer of the Employer (including,
without limitation, under Sections 19 and 20 of the Employment Agreement); or
(ii) the Employee’s rights, except as modified herein, under any tax-qualified
pension or claims for accrued vested benefits under any other employee benefit
plan, policy or arrangement maintained by the Employer or under COBRA.

 

3.  NO CLAIMS PERMITTED.  Employee waives his right to file any charge
or complaint against Employer in which he seeks individual relief arising out
of his employment with or separation from Employer before any federal, state or
local court or any state or local administrative agency, except where such
waivers are prohibited by law. This General Release, however, does not prevent
Employee from filing a charge with the Equal Employment Opportunity Commission,
any other federal government agency, and/or any government agency concerning
claims of discrimination, although Employee waives his right to recover any
damages or other relief in any claim or suit brought by or through the Equal
Employment Opportunity Commission or any other state or local agency on behalf
of Employee under the Age Discrimination in Employment Act, Title VII of the
Civil Rights Act of 1964 as amended, the Americans with Disabilities Act, or
any other federal or state discrimination law, except where such waivers are
prohibited by law.

 

4.  AFFIRMATIONS. 
Employee affirms he has not filed, has not caused to be filed, and is
not presently a party to, any claim, complaint, or action against Employer in
any forum or form. Employee further affirms that he has been paid and/or has
received all compensation, wages, bonuses, commissions, and/or benefits to
which he may be entitled and no other compensation, wages, bonuses, commissions
and/or benefits are due to him, except as provided

 

2

 

in Sections 5 and 8 of
the Employment Agreement and in the Agreement. Employee also affirms he has no
known workplace injuries.

 

HAVING ELECTED TO EXECUTE
THIS GENERAL RELEASE, TO FULFILL THE PROMISES SET FORTH HEREIN, AND TO RECEIVE
THE SUMS AND BENEFITS SET FORTH IN THE AGREEMENT, EMPLOYEE FREELY AND
KNOWINGLY, AND AFTER DUE CONSIDERATION, ENTERS INTO THIS GENERAL RELEASE
INTENDING TO WAIVE, SETTLE AND RELEASE ALL CLAIMS HE HAS OR MIGHT HAVE AGAINST
EMPLOYER.

 

IN
WITNESS WHEREOF, and intending to be legally bound hereby, David J. FitzPatrick
hereby executes the foregoing General Release as of the date set forth below.

 

	
  DAVID J.
  FITZPATRICK

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MR. DAVID J.
  FITZPATRICK

  
	
   

  
	
  Date:

  
	
   

  	
   

  	
   

  
				

 

3

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