Document:

<PAGE>   1
                                                                    Exhibit 10-B

                                SECOND AMENDMENT
                                       TO
                      AMENDED AND RESTATED CREDIT AGREEMENT

         THIS SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this
"Agreement"), dated as of July 26, 2000, is entered into among HERCULES
INCORPORATED, a Delaware corporation (the "Company"), BETZDEARBORN CANADA, INC.,
an Ontario corporation (the "Canadian Borrower"), certain subsidiaries of the
Company identified on the signature pages hereto (the "Subsidiary Guarantors"),
the several banks and other financial institutions identified on the signature
pages hereto (the "Lenders"), BANK OF AMERICA, N.A., as administrative agent
(the "Administrative Agent") Lenders and BANK OF AMERICA CANADA, as Canadian
administrative agent (the "Canadian Administrative Agent"). Terms used but not
otherwise defined herein shall have the meanings provided in the Credit
Agreement described below.

                                    RECITALS

         A. The Company, the Canadian Borrower, the Subsidiary Guarantors, the
Lenders, the Administrative Agent and the Canadian Administrative Agent entered
into that certain Amended and Restated Credit Agreement dated as of April 19,
1999 (as amended by that First Amendment to Amended and Restated Credit
Agreement dated as of March 31, 2000 (the "Credit Agreement").

         B. The Company has requested certain modifications to the Credit
Agreement.

         C. Such modifications require the consent of the Required Lenders (as
defined in the Credit Agreement).

         D. The Required Lenders have consented to the requested modifications
on the terms and conditions set forth herein.

                                    AGREEMENT

         NOW, THEREFORE, IN CONSIDERATION of the premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

         1. Amendment to Subsection 5.2(d)(i). Subsection 5.2(d)(i) of the
Credit Agreement is hereby deleted in its entirety and the following substituted
therefor:

                  (i) Leverage Ratio. It will not permit, as the last day of any
         fiscal quarter, the Leverage Ratio to exceed the ratio set forth below
         for the applicable period:
<PAGE>   2
<TABLE>
<CAPTION>
                              Period                            Maximum Leverage Ratio
                              ------                            ----------------------
<S>                                                             <C>
                  Closing Date through March 31, 1999                  5.0 to 1.0
                  April 1, 1999 through September 30, 1999             4.5 to 1.0
                  October 1, 1999 through March 31, 2000               3.5 to 1.0
                  April 1, 2000 through June 30, 2000                 3.75 to 1.0
                  July 1, 2000 through September 30, 2000              3.5 to 1.0
                  October 1, 2000 through Termination Date             3.0 to 1.0
</TABLE>

         2. Representations and Warranties. Each of the Credit Parties
represents and warrants to the Lenders, the Administrative Agent and the
Canadian Administrative Agent as follows:

                  (a) It has taken all necessary action to authorize the
         execution, delivery and performance of this Agreement.

                  (b) This Agreement has been duly executed and delivered by
         such Credit Party and constitutes such Credit Party's legal, valid and
         binding obligation, enforceable in accordance with its terms, except as
         such enforceability may be limited (x) by general principles of equity
         and conflicts of laws or (y) by bankruptcy, reorganization, insolvency,
         moratorium or other laws of general application relating to or
         affecting the enforcement, of creditors' rights.

                  (c) No consent, approval, authorization or order of, or
         filing, registration or qualification with, any court or governmental
         authority or third party is required in connection with the execution,
         delivery or performance by such Credit Party of this Agreement.

                  (d) The execution and delivery of this Agreement does not
         diminish or reduce its obligations under the Credit Documents
         (including, without limitation, in the case of each Guarantor, such
         Guarantor's guaranty pursuant to Section 3A of the Credit Agreement) in
         any manner, except as specifically set forth herein.

                  (e) Such Credit Party has no claims, counterclaims, offsets,
         or defenses to the Credit Documents and the performance of its
         obligations thereunder, or if such Credit Party has any such claims,
         counterclaims, offsets, or defenses to the Credit Documents or any
         transaction related to the Credit Documents, the same are hereby
         waived, relinquished and released in consideration of the Required
         Lenders' execution and delivery of this Agreement.

                  (f) The representations and warranties of the Credit Parties
         set forth in Section 1 of the Credit Agreement are true and correct as
         of the date hereof (except those that expressly relate to an earlier
         date) and all of the provisions of the Credit Documents, except as
         amended hereby, are in full force and effect.

                  (g) Subsequent to the execution and delivery of this Agreement
         and after giving effect hereto, no unwaived event has occurred and is
         continuing which constitutes a Default or an Event of Default.

                                       2
<PAGE>   3
         3. Liens. Each Credit Party affirms the liens and security interests,
if any, created and granted by it in the Credit Documents (including, but not
limited to, the Pledge Agreement) and agrees that this Agreement shall in no
manner adversely affect or impair such liens and security interests.

         4. Effect of Amendment. Except as expressly modified and amended in
this Agreement, all of the terms, provisions and conditions of the Credit
Documents shall remain unchanged and in full force and effect. The Credit
Documents and any and all other documents heretofore, now or hereafter executed
and delivered pursuant to the terms of the Credit Agreement are hereby amended
so that any reference to the Credit Agreement shall mean a reference to the
Credit Agreement as amended hereby.

         5. Expenses. The Company agrees to pay all reasonable costs and
expenses incurred in connection with the preparation, execution and delivery of
this Agreement, including the reasonable fees and expenses of the Administrative
Agent's legal counsel.

         6. Condition Precedent. The effectiveness of this Agreement is subject
to satisfaction of each of the following conditions:

                 (a) Receipt by the Administrative Agent of executed
         counterparts (or other evidence of execution, including facsimile
         signatures, satisfactory to the Administrative Agent) of this
         Agreement, which collectively shall have been duly executed on behalf
         of each of the Borrowers, the Subsidiary Guarantors, the Required
         Lenders, the Administrative Agent and the Canadian Administrative
         Agent.

                  (b) Each Lender who executes and delivers this Amendment on or
         before 12:00 Noon Eastern Standard Time on July 26, 2000 (provided that
         this Amendment is approved by the Required Lenders) shall have received
         an amendment fee in an amount equal to .05% of its aggregate Commitment
         amount.

         7. Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed and delivered shall be deemed to be an original and all of
which taken together shall constitute one and the same instrument.

         8. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of North Carolina.

         9. ENTIRETY. THIS AGREEMENT, THE CREDIT AGREEMENT AND THE OTHER CREDIT
DOCUMENTS EMBODY THE ENTIRE AGREEMENT BETWEEN THE PARTIES AND SUPERSEDE ALL
PRIOR AGREEMENTS AND UNDERSTANDINGS, IF ANY, RELATING TO THE SUBJECT MATTER
HEREOF. THESE CREDIT DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES
AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT
ORAL AGREEMENTS OF THE PARTIES.

                                       3
<PAGE>   4
         IN WITNESS WHEREOF, the parties hereto have caused this Agreement, to
be duly executed and delivered by their proper and duly authorized officers as
of the day and year first above written.

THE COMPANY:                   HERCULES INCORPORATED,
                               a Delaware corporation

                               By:  /s/ G. MacKenzie
                                  ----------------------------
                               Name:  George MacKenzie
                                    --------------------------
                               Title: Executive VP and CFO
                                     -------------------------

CANADIAN
BORROWER:                      BETZDEARBORN CANADA, INC.,
                               an Ontario corporation

                               By:  /s/ G. MacKenzie
                                  ----------------------------
                               Name:  George MacKenzie
                                    --------------------------
                               Title: Executive VP and CFO
                                     -------------------------

<PAGE>   5
OTHER SUBSIDIARY
GUARANTORS:
                               HERCULES CREDIT, INC.,
                                    a Delaware corporation
                               HERCULES FLAVOR, INC.,
                                    a Delaware corporation
                               WSP, INC.,
                                    a Delaware corporation
                               AQUALON COMPANY,
                                    a Delaware partnership
                               HERCULES FINANCE COMPANY,
                                    a Delaware partnership
                               FIBERVISIONS, L.L.C.,
                                    a Delaware limited liability company
                               FIBERVISIONS INCORPORATED,
                                    a Delaware corporation
                               FIBERVISIONS PRODUCTS, INC.,
                                    a Georgia corporation
                               HERCULES INTERNATIONAL LIMITED,
                                    a Delaware corporation
                               BETZDEARBORN, INC.,
                                    a Pennsylvania corporation
                               BETZDEARBORN EUROPE, INC.,
                                    a Delaware corporation
                               DRC, LTD.,
                                    a Delaware corporation
                               BL TECHNOLOGIES, INC.,
                                    a Delaware corporation
                               BLI HOLDINGS, INC.,
                                    a Delaware corporation

                               By:  /s/ S. C. Shears
                                  --------------------------------
                               Name: Stuart C. Shears
                                    ------------------------------
                               Title: Vice President and Treasurer
                                     -----------------------------
                                      for each of the foregoing

<PAGE>   6
ADMINISTRATIVE
AGENT:                         BANK OF AMERICA, N.A.,
                               in its capacity as Administrative Agent and
                               as a Lender

                               By:  /s/ David Noda
                                  ----------------------------
                               Name:  David Noda
                                    --------------------------
                               Title: Managing Director
                                     -------------------------

CANADIAN
ADMINISTRATIVE AGENT:          BANK OF AMERICA CANADA,
                               as Canadian Administrative Agent

                               By:  /s/ M. Hurtubise
                                  ----------------------------
                               Name:  Michel Hurtubise
                                    --------------------------
                               Title: Principal
                                     -------------------------

<PAGE>   7
                            Signed on behalf of the following banks
                            and other financial institutions:

                            Bank of America Canada
                            The Chase Manhattan Bank
                            Citibank, N.A.
                            Abn Amro Bank N.V.
                            Morgan Guaranty Trust Company of New York
                            Banco Espirito Santo, S.A.
                            Banca Commerciale Italiana of Canada
                            Banca Commerciale Italiana, New York Branch
                            Arab Banking Corp.
                            The Bank of New York
                            Bank of Montreal Ireland PLC
                            Bank of Tokyo - Mitsubishi Trust Company
                            The Bank of Nova Scotia
                            Commerzbank AG, New York Branch
                            Comerica Bank
                            Citibank Canada
                            Chevy Chase Bank, FSB
                            Chang Hwa Commercial Bank Ltd., New York Branch
                            BW Capital Markets, Inc.
                            Bayerische Hypo-und Vereinsbank AG, New York Branch
                            Bank Polska Kass Opieki S.A.
                            Dresdner Bank AG, New York and Grand Cayman Branches
                            Deutsche Bank AG New York Branch and/or
                             Cayman Island Branch
                            Den Danske Bank Aktieselkab, Cayman Islands Branch
                            The Dai-Ichi Kangyo Branch, Ltd.
                            Dexia Bank S.A.
                            Erste Bank New York
                            Bank One, NA
                            First Union National Bank
                            General Electric Capital Corporation
                            IKB Deutsche Industriebank AG Luxembourg Branch
                            Indosuez Capital Funding IV, L.P.
                            The Industrial Bank of Japan, Ltd.
                            KBC Bank NV
                            Landesbank Schleswig-Holstein Girozentrale
                            HSBC Bank USA
                            Mellon Bank, N.A.
                            The Mitsubishi Trust and Banking Corporation
                            Natexis Banques
                            Norddeutsche Landesbank Girozentrale, New York/
                             Cayman Islands Branch

<PAGE>   8
                               BNP Paribas
                               The Sanwa Bank, Limited
                               Toronto Dominion (Texas), Inc.
                               The Toronto Dominion Bank
                               UBS AG, Stamford Branch
                               Wachovia Bank, NA<PAGE>   1
                                                                   Exhibit 10.1

                              EMPLOYMENT AGREEMENT

                  This Employment Agreement (the "Agreement") is entered into as
of September 28, 1999, by and between Thomas L. Auth ("Employee") and ITI
Technologies, Inc. a Delaware corporation (the "Company").

                                   Background

                  The Company has entered an Agreement and Plan of Merger and
Reorganization dated as of September 28, 1999 by and between the Company and SLC
Technologies, Inc. (the "Merger Agreement"). Capitalized terms used but not
defined herein shall have the meanings ascribed to them in the Merger Agreement.
Employee is currently the Chairman of the Board of Directors of the Company and
the Merger Agreement provides that at the Effective Time Employee will continue
as the Chairman of the Board of Directors of the Company. In addition to his
services as non-executive Chairman of the Board of Directors of the Company
after the Effective Time, the Company desires to engage Employee to provide
services as an employee of the Company and Employee desires to provide such
services as an employee of the Company, all upon the terms and conditions
hereinafter set forth.

                                      Terms

                  NOW, THEREFORE, in consideration of the mutual representations
and warranties, covenants, undertakings and agreements herein contained, the
Company and Employee, intending to be legally bound hereby, agree as follows:

                  1. Establishment of Employment. Subject to Section 10, the
Company hereby engages the services of Employee, and Employee hereby accepts
employment with the Company upon the terms and subject to the conditions set
forth in this Agreement.

                  2. Employment Period. For purposes of this Agreement the
"Employment Period" means the period beginning at the Effective Time and ending
upon the date his employment is terminated pursuant to Section 6(a) hereof.

                  3. Services. During the Employment Period, Employee shall
carry out such duties as are reasonably assigned or delegated to Employee by the
Chief Executive Officer of the Company. It is expected that for the first six
months after the Effective Time Employee shall assist in the integration and
transition to the extent mutually agreed by the Employee and the Chief Executive
Officer of the Company. Thereafter, Employee shall carry out such duties as may
be mutually agreed by Employee and the Chief Executive Officer of the Company
(it being understood, for the purpose of clarity, that the Employee shall not be
under any obligation whatsoever to accept any such duties and the Chief
Executive Officer shall not be under any obligation to offer any such duties or
permit Employee to perform any duties).

                  4. Office and Secretarial Support. From the Effective Time
until the earlier to occur of (a) the two-year anniversary of the Effective Time
and (b) the termination of the
<PAGE>   2
Employment Period, the Company shall provide Employee with an off-site office
and secretarial support at such off-site location.

                  5. Compensation and Benefits.

                           (a) During the Employment Period, but subject to the
terms of this Section 5 and Section 7 hereof, Employee shall receive the
following compensation and benefits:

                                (i) Salary. The Company shall pay Employee a
monthly salary of $33,333 ("Salary"), payable monthly in arrears;

                                (ii) Standard Group Benefits. Employee shall
receive all group benefits, other than pursuant to bonus or equity-based
compensation plans, that are made available to senior executives of the Company
as a matter of standard policy;

                                (iii) Withholding. All compensation to Employee
made pursuant to this Agreement shall be subject to such withholding as may be
required by any applicable laws; and

                                (iv) Automobile. The Company has furnished
Employee with an automobile, and from the Effective Time until the earlier to
occur of (a) the two-year anniversary of the Effective Time and (b) the
termination of the Employment Period, the Company shall continue to pay or
reimburse Employee for all operating costs associated therewith.

                           (b) Options. At the Effective Time the Company will
grant Employee options to acquire 20,000 shares of the Company's Common Stock.
The options to be granted pursuant to this Section 5(e) are referred to herein
as the "Options." The terms of the Options shall be the standard terms for
options granted pursuant to the stock option plan referenced in Section 5.14 of
the Merger Agreement, except that (i) the exercise price for the Options will be
the fair market value on the date of grant, (ii) the Options shall be fully
vested on the date of grant, (iii) the Options will not expire prior to ninety
(90) days after the end of the Employment Period, and (iv) Employee will not be
permitted to exercise Options covering 10,000 shares of the Company's Common
Stock until the first anniversary of the Effective Time, and will not be
permitted to exercise the remaining Options until the second anniversary of the
Effective Time.

                           (c) Health Coverage. By written notice to the Company
delivered at least two (2) months prior to the end of the Employment Period,
Employee may elect to waive the last $40,000 in Salary payable hereunder to
Employee and in lieu of such payment require the Company to provide health
insurance coverage for Employee and his spouse at the cost of the Company until
the Employee reaches the age of sixty-five (65), pursuant to the health coverage
generally made available to senior executives of the Company as a matter of
standard policy or substantially similar coverage.

                                      -2-
<PAGE>   3
                  6. Termination.

                           (a) Employee's employment shall terminate immediately
upon the earliest to occur of: (i) the third anniversary of the Effective Time,
(ii) Employee's death, (iii) the date the Company provides written notice of
termination of Employee by the Company for Cause (as defined herein) and (iv)
termination by Employee of his services hereunder by resignation. Employee's
resignation as a director of the Company, should Employee elect to resign, shall
not be considered a resignation by Employee hereunder.

                           (b) For purposes of this Agreement "Cause" means the
occurrence of any of the following circumstances:

                                (i) the willful engaging by Employee in conduct
that is significantly injurious to the Company and/or its affiliates, monetarily
or otherwise, after a written demand for cessation of such conduct is delivered
to Employee by the Board of Directors of the Company, which demand specifically
identifies the manner in which the Board of Directors of the Company believes
that Employee has engaged in such conduct and the injury to the Company and/or
its affiliates;

                                (ii) the conviction of Employee of a crime
involving moral turpitude;

                                (iii) Employee's abuse of illegal drugs or other
controlled substances or habitual intoxication; or

                                (iv) Employee's willful breach of Section 9
hereof.

                           (c) Notwithstanding anything to the contrary herein,
the Company may, without terminating Employee's employment, at any time relieve
Employee of all his duties and responsibilities hereunder and may relieve
Employee of authority to act on behalf of, or legally bind, the Company,
provided that any such action by the Company shall be without prejudice to
Employee's right to the compensation and benefits provided under this Agreement.
Employee covenants and agrees that in the event the Company relieves Employee of
his duties and responsibilities pursuant to this Section 6(c), from and after
the date the Company notifies Employee in writing that he is relieved of his
duties and responsibilities, Employee shall not hold himself out as a
representative or agent of the Company or hold himself out as having the
authority to act on behalf of, or legally bind, the Company, except that
Employee may hold himself out as the Chairman of the Board of Directors of the
Company.

                  7. Obligations of the Company upon Termination.

                           (a) Termination For Cause. If the Company terminates
Employee prior to the third anniversary of the Effective Time for Cause, so long
as Employee has not breached Section 9 hereof, the Company shall pay Employee
such portion of the Salary as is accrued prior to the date of such termination.
Upon termination of Employee by the Company

                                      -3-
<PAGE>   4
for Cause, except as set forth in this Section 7(a), the Company shall have no
further liability or obligation under this Agreement to Employee or any person
claiming under or through him.

                           (b) Termination Upon Death. If Employee's employment
is terminated prior to the third anniversary of the Effective Time by reason of
Employee's death, so long as Employee has not breached Section 9 hereof, the
Company shall (i) pay the Salary to Employee's estate until the third
anniversary of the Effective Time and (ii) continue to provide the benefits set
forth in Section 5(a)(ii) hereof until the third anniversary of the Effective
Time. Upon termination of Employee by reason of death or disability, except as
set forth in this Section 7(b), the Company shall have no further liability or
obligation under this Agreement to Employee or any person claiming under or
through him.

                           (c) Termination By Employee. If Employee terminates
his employment by resignation prior to the third anniversary of the Effective
Time, the Company shall have no further liability or obligation under this
Agreement to Employee or any person claiming under or through him, except that
the Company shall pay Employee for such portion of the Salary as is accrued
prior to the date of such termination.

                           (d) Termination Upon Expiration of Employment Term.
Except as provided in Section 5(c), after the third anniversary of the Effective
Time, the Company shall have no further liability or obligation under this
Agreement to Employee or any person claiming under or through him, except that
the Company shall pay Employee for such portion of the Salary as is accrued
prior to the third anniversary of the Effective Time.

                  8. Employee's Representation and Warranty. Employee represents
and warrants that he is not a party to or otherwise subject to or bound by the
terms of any contract, agreement or understanding that in any manner would limit
or otherwise affect his ability to perform his obligations hereunder.

                  9. Employee's Covenants and Agreements; Non-Disparagement.

                           (a) Employee has entered into the Employee Stock
Option Agreements listed on Exhibit A hereto (collectively, the "Specified
Agreements"). The Company is entering into this Agreement in reliance on the
existence and validity of Section 4 of the Specified Agreements, which is
incorporated herein by reference. Any breach of Section 4 of the Specified
Agreements will be deemed to be a breach of this Agreement.

                           (b) Employee agrees during the Employment Term and
thereafter not to make any statements that are materially injurious or
disparaging to the Company or any of its directors, officers, employees,
representatives or stockholders.

                  10. Effect of Non-consummation. This Agreement is contingent
upon the consummation of the Merger under the Merger Agreement and shall not
take effect until the Effective Time. Accordingly, notwithstanding anything
contained herein to the contrary, in the

                                      -4-
<PAGE>   5
event that the Merger Agreement is terminated prior to the Effective Time, this
Agreement shall become null and void without any further action

                  11. Governing Law. This Agreement shall be governed by, and
interpreted in accordance with, the laws of the State of Delaware applicable to
contracts executed in and to be performed in that State, without giving effect
to the conflicts of law provisions thereof.

                  12. Binding Agreement. This Agreement shall be binding upon
and inure to the benefit of the parties, and their legal representatives, heirs,
successors and assigns, except that the duties and responsibilities of Employee
hereunder are of a personal nature and shall not be assignable in whole or in
part by Employee.

                  13. Duration. Notwithstanding the termination of the
Employment Period and of Employee's employment with the Company, this Agreement
shall continue to bind the parties for so long as any obligations remain under
the terms of this Agreement.

                  14. Notices. All notices required or permitted hereunder shall
be made in writing by hand-delivery, facsimile, certified or registered
first-class mail, or air courier guaranteeing overnight delivery to the other
party at the following addresses:

                                      -5-
<PAGE>   6
                             If to the Company, to:

                                   ITI Technologies, Inc.
                                   2266 North Second Street
                                   North Saint Paul, Minnesota 55109
                                   Attention:  General Counsel
                                   Telephone:  651-777-2690
                                   Facsimile:  651-779-4802

                            With a required copy to:

                                   SLC Technologies, Inc.
                                   c/o Berwind Corporation
                                   West Tower, Centre Square
                                   1500 Market Street
                                   Philadelphia, PA  19102
                                   Attention:  Pamela I. Lehrer
                                               General Counsel
                                   Telephone:  215-563-2800
                                   Facsimile:  215-563-4489

                            If to Employee, to:

                                   Thomas L. Auth
                                   8 Evergreen Road
                                   North Oaks, Minnesota 55127
                                   Telephone:
                                   Facsimile:

or to such other address as any of such party may designate in a written notice
served upon the other party in the manner provided herein. All notices required
or permitted hereunder shall be deemed duly given and received when delivered by
hand, if personally delivered; when delivered if delivered via facsimile
transmission; when delivered if sent by certified or registered first-class
mail; and on the day next succeeding the date of mailing if timely delivered to
an express air courier guaranteeing overnight delivery.

                  15. Entire Agreement. This instrument, together with the
Specified Agreements, constitutes the entire agreement with respect to the
subject matter hereof among the parties hereto and replaces and supersedes as of
the date hereof, any and all prior oral and written

                                      -6-
<PAGE>   7
agreements and understandings between or among Employee, the Company and any
subsidiary of the Company, including the Letter Agreement dated March 15, 1993
among Employee, the Company and Interactive Technologies, Inc. This Agreement
may only be modified by an agreement in writing executed by parties hereto.

                  16. Severability. If any term or provision of this Agreement
or the Specified Agreements or the application thereof to any person or
circumstance shall, to any extent, be held invalid or unenforceable by a court
of competent jurisdiction, the remainder of this Agreement and the Specified
Agreements or the application of any such term or provision to persons or
circumstances other than those as to which it is held invalid or unenforceable,
shall not be affected thereby, and each term and provision of this Agreement and
the Specified Agreements shall be valid and enforceable to the fullest extent
permitted by law. If any of the provisions contained in this Agreement or the
Specified Agreements shall for any reason be held to be excessively broad as to
duration, scope, activity or subject, it shall be construed by limiting and
reducing it, so as to be valid and enforceable to the extent compatible with the
applicable law or the determination by a court of competent jurisdiction.

                  17. Waiver of Breach. The waiver by the Company of a breach of
any provision of this Agreement by Employee shall not operate or be construed as
a waiver of any other or subsequent breach by Employee of such or any other
provision. No delay or omission by the Company or Employee in exercising any
right, remedy or power hereunder or existing at law or in equity shall be
construed as a waiver thereof, and any such right, remedy or power may be
exercised by the Company or Employee from time to time and as often as may be
deemed expedient or necessary by the Company or Employee in its or his sole
discretion.

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

                  19. Headings. The headings preceding the text of the sections
and subsections hereof are inserted solely for convenience of reference, and
shall not constitute a part of this Agreement, nor shall they affect its
meaning, construction or effect.

                  20. Release; Covenant not to Sue.

                           (a) In consideration of the guarantee of employment
through the end of the Employment Period and the other consideration set forth
herein, to which Employee would otherwise not be entitled, Employee (for
himself, his heirs and his personal representatives) hereby releases and
discharges the Company, SLC Technologies, Inc., their respective principals,
owners, affiliates, parents, subsidiaries, successors and predecessors, and all
of their respective principals, owners, shareholders, affiliates, parents,
subsidiaries, successors, predecessors, partners, employees, agents, officers
and directors (collectively "Released Parties") for any and all claims and/or
causes of action, known or unknown, from the beginning of time through the date
hereof, which Employee may have or could claim to have against the Released
Parties, except for such claims arising solely from Employee's status as a

                                      -7-
<PAGE>   8
shareholder, elected officer or director of the Company. This general release
includes, but is not limited to, all claims arising from Employee's status as an
employee of the Company and all claims arising from or during Employee's
employment through the Effective Time, and all claims arising under federal,
state or local laws prohibiting employment discrimination based upon age, race,
sex, handicap, disability, national origin or any other protected
characteristic, including, but not limited to, any and all claims arising under
the common law, the Age Discrimination in Employment Act, Title VII of the Civil
Rights Act of 1964, the Americans with Disabilities Act, the Family and Medical
Leave Act, the Employee Retirement Income Security Act and/or claims growing out
of any other federal, state or local statute, rule or ordinance or any other
legal restrictions, expressed or implied, on the Company's right to control or
terminate the employment of its employees.

                           (b) Employee acknowledges that under this Agreement
the Company may restrict or eliminate completely his duties pursuant to Sections
3 and 6(c) hereof and that the Company is under no obligation to extend his
employment after the third anniversary of the Effective Time. In consideration
of the guarantee of employment through the end of the Employment Period and the
other consideration set forth herein, to which Employee would otherwise not be
entitled, Employee (for himself, his heirs and his personal representatives)
further agrees not to make any claim, suit or demand against the Company, SLC
Technologies, Inc., their respective principals, owners, affiliates, parents,
subsidiaries, successors and predecessors, and all of their respective
principals, owners, shareholders, affiliates, parents, subsidiaries, successors,
predecessors, partners, employees, agents, officers and directors (collectively
"Released Parties") for any and all claims and/or causes of action, known or
unknown, which Employee may have or could claim to have against the Released
Parties arising from the specific rights set forth in the first sentence of this
Section 20(b) under this Agreement. This covenant includes all claims arising
under federal, state or local laws prohibiting employment discrimination based
upon age, race, sex, handicap, disability, national origin or any other
protected characteristic, including, but not limited to, any and all claims
arising under the common law, the Age Discrimination in Employment Act, Title
VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the
Family and Medical Leave Act, the Employee Retirement Income Security Act and/or
claims growing out of any other federal, state or local statute, rule or
ordinance or any other legal restrictions, expressed or implied, on the
Company's right to control or terminate the employment of its employees.

                           (c) Employee hereby on advice of counsel has freely
and knowingly waived the twenty-one (21) day consideration period provided for
releases under the Americans with Disabilities Act. Employee shall have until
the close of business on October 6, 1999 to revoke this Agreement in writing
and, if Employee revokes this Agreement in writing prior to the close of
business on October 6, 1999, this Agreement shall be null and void and have no
further force and effect.

                                      -8-
<PAGE>   9
                  IN WITNESS WHEREOF, the parties have executed this Agreement
as of the day and year first written above and signed below.

                                        /s/ Thomas L. Auth
                                        --------------------------------------
                                        Thomas L. Auth

                                        ITI TECHNOLOGIES, INC.

                                        By: /s/ Kenneth L. Boyda
                                           -----------------------------------
                                           Name: Kenneth L. Boyda
                                           Title: President & CEO

                                      -9-

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