Document:

Exhibit
10.5

 

EXECUTIVE
EMPLOYMENT AGREEMENT

 

                EMPLOYMENT
AGREEMENT (the “Agreement”) dated as of December 29, 2006 (the “Effective Date”)
between Tyco Healthcare Ltd., a Bermuda corporation (“Company”) and Richard J.
Meelia (“Executive”).

 

W I T N E S S E T H:

 

-
- - - - - - - - -

 

                WHEREAS,
Company is a wholly-owned subsidiary of Tyco International Ltd., a Bermuda
corporation (“Parent”) and, along with its subsidiaries, currently does
business as Parent’s “Healthcare” business segment; and

 

                WHEREAS,
Executive is currently employed by Tyco Healthcare Group LP and serves as Chief
Executive Office of Parent’s “Healthcare” business segment;

 

                WHEREAS,
it is anticipated that Company will be spun off by Parent in 2007 as a separate
publicly-traded corporation through issuance of a stock dividend to Parent’s
shareholders (the “Separation”), as described in a Form 8-K filed by Parent on
January 19, 2006;

 

                WHEREAS,
Company and Executive desire to enter into this Employment Agreement to set
forth certain material terms of Executive’s employment;

 

                NOW
THEREFORE, in consideration of the foregoing, of the mutual promises contained
herein and of other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree
as follows:

 

                1.             POSITION/DUTIES.

 

                                (a)           Prior to the Separation, Executive shall continue to serve
as Chief Executive Officer of Parent’s “Healthcare” business segment.  In this capacity, Executive shall have such
duties, authorities and responsibilities as the Chairman, President and Chief
Executive Officer of Parent (the “CEO”) shall designate that are consistent
with Executive’s position.  Executive
shall report to the CEO.

 

                                (b)           Upon and following the Separation,
Executive shall serve as the Company’s Chief Executive Officer.  In this capacity, Executive shall have such
duties, authorities and responsibilities as the Board of Directors of the
Company (“Board”) shall designate that are consistent with Executive’s
position.  Upon and following the
Separation, Executive shall report to the Board. 

 

 

 

1

Hereinafter, for ease of reference, the term “Employing
Company” shall refer to “Parent” prior to the Separation and “Company”
thereafter.

 

                                (c)            Executive’s employment shall be at
will, meaning that such employment may be terminated by Executive or by the
Employing Company at any time and for any reason, with or without notice,
subject to the provisions of Section 3 hereof.

 

                                (d)
          Executive shall devote substantially
all of his business time (excluding periods of vacation and other approved
leaves of absence) to the performance of his duties with the Employing Company,
provided the foregoing shall not prevent Executive from (i) participating in charitable,
civic, educational, professional, community or industry affairs or, with prior
written approval of the CEO or the Board (as applicable), serving on the board
of directors or advisory boards of other companies; and (ii) managing his and
his family’s personal investments so long as such activities do not materially
interfere with the performance of his duties hereunder or create a potential
business conflict or the appearance thereof. If at any time service on any
board of directors or advisory board would, in the good faith judgment of the
CEO or the Board (as applicable), conflict with Executive’s fiduciary duty to the
Employing Company or create any appearance thereof, Executive shall promptly
resign from such other board of directors or advisory board after written
notice of the conflict is received from the CEO or the Board (as applicable).
Service on the boards of directors or advisory boards disclosed by Executive to
Parent on which he is serving as of the Effective Date is hereby approved by Parent
and Company.

 

                                (e)           Executive further agrees to serve
without additional compensation as an officer and/or director of any of the
Employing Company’s subsidiaries and agrees that any amounts received from such
corporation may be offset against the amounts due hereunder.  In addition, it is agreed that the Company may
assign the Executive to one of its subsidiaries or affiliated companies for
payroll purposes.

 

 

                2.             COMPENSATION AND BENEFITS.  Executive shall receive compensation for his
services hereunder as determined by the Employing Company’s Board of Directors
from time to time, including base salary, bonus and long-term incentive
opportunity.  Any base salary shall be
payable periodically in accordance with the Employing Company’s regular payroll
practices.  In addition, Executive shall
be entitled to participate in all employee benefit plans and programs of the
Employing Company applicable to senior executives generally, as may be
determined or modified from time to time. 
Travel, business and entertainment expenses shall be reimbursed by the
Employing Company in accordance with its then-applicable corporate policies.  

 

 

 

2

Upon the occurrence of a “change in control”
or a sale of the Employing Company on or prior to June 30, 2007, all shares of
restricted stock previously granted to Executive that are still subject to risk
of forfeiture shall become fully vested and nonforfeitable and all options to
purchase common shares of the Employing Company (or any converted shares
received in the separation) that remain unxercisable shall become fully
exercisable and vested.  For purposes of
this Section 2, “change in control” shall mean the first to occur of the
following:

 

                (a)
Any “person” (as that term is used in Sections 13 and 14(d)(2) of the
Securities Exchange act of 1934 (the “Exchange Act”)) becomes the beneficial
owner (as that term is used in Section 13(d) of the Exchange Act), directly or
indirectly, of 30% or more of Employing Company’s capital stock entitled to
vote in the election of directors:

 

                (b)
Persons who, as of the Effective Date (or with respect to the Company, as of
the effective date of the Separation), constitute the board of Employing
Company (the “Incumbent Directors”) cease for any reason, including, without
limitation, as a result of a tender offer, proxy contest, merger or similar
transaction, to constitute at least a majority thereof, provided that any
person becoming a director of Employing Company subsequent to the Effective
Date (or with respect to the Company, subsequent to the effective date of the
Separation) shall be considered an Incumbent Director if such person’s election
or nomination for election was approved by a vote of at least three-quarters of
the Incumbent Directors; but provided further, that any such person whose
initial assumption of office is in connection with an actual or threatened
election contest relating to the election of members of the board of Employing
Company or other actual or threatened solicitation of proxies or consents by or
on behalf of a “person” (as that term is used in Sections 13 and 14(d)(2) of
the Exchange Act) other than the board of Employing Company, including by
reason of agreement intended to avoid or settle any such actual or threatened
contest or solicitation, shall not be considered an Incumbent Director;

 

                (c)
The shareholders of Employing Company approve any consolidation or merger of
Employing Company, other than a merger of Employing Company in which the
holders of the common stock of Employing Company immediately prior to the
merger hold more than 50% of the common stock of the surviving corporation
immediately after the merger;

 

                (d)
The shareholders of Employing Company approve any plan or proposal for the sale
or dissolution of Employing Company;

 

                (e)
Substantially all of the assets of Employing Company are sold or otherwise
transferred to parties that are not within a “controlled group of 

 

 

 

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corporations” (as defined in Section 1563 of
the Internal Revenue Code of 1986, as amended) in which the Employing Company
is a member.

 

For avoidance of any doubt, the Separation
does not constitute a “Change in Control” hereunder.

 

                3.             SEPARATION BENEFITS UPON TERMINATION
OTHER THAN FOR CAUSE.  If Executive’s
employment terminates for any reason other than termination by the Employing
Company for Cause (as hereinafter defined), then the Employing Company shall
pay or provide Executive with (i) a lump sum cash payment in an amount equal to
two times the sum of (1) the greater of (a) his then-current base salary or (b)
his base salary in effect as of the date immediately preceding the Effective
Date and (2) the greater of (a) his then-current target annual bonus or (b) the
greater of the average annual bonus (i) received by Executive or (ii) target
for Executive, for two fiscal years of the Company immediately preceding the
date of termination of employment; and (ii) subject to Executive’s continued co-payment
of premiums, continued participation for two years in all health and welfare
plans which cover Executive (and eligible dependents) upon the same terms and
conditions (except for the requirements of Executive’s continued employment) in
effect on the date of termination (or as amended from time to time).  The continuation of health benefits under this
subsection shall not reduce or count against Executive’s rights under the
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”).  Any termination payments made and benefits
provided under this Agreement to Executive shall be in lieu of any termination
or severance payments or benefits for which Executive may be eligible under any
of the plans, policies or programs of the Employing Company or its subsidiaries
or affiliates (other than benefits under the Company’s employee benefit plans
that by their terms survive termination of employment and COBRA benefits).

 

                The
payments made to Executive under this Section 3 shall be made as soon as
practical after his termination of employment; provided, that if and to the
extent so required under Section 409A(a)(2)(B)(i) of the Internal Revenue Code,
such payment or any applicable portion thereof shall be made no earlier than 6
months after the date of termination (or the date of Executive’s death, if
earlier).

 

                                Executive acknowledges and
agrees that the Separation shall not be deemed a “termination of employment”
for any purpose under this Section 3, so long as his employment continues
through the effective date of the Separation and he is employed immediately
after the Separation by the Company as contemplated in Section 1(b).

 

 

 

4

                                For purposes of this Agreement, “Cause” shall mean:
(i) conviction of a felony or misdemeanor involving dishonesty, theft, fraud or
moral turpitude; Executive’s violation of Employing Company’s Code of Ethical
conduct; or other willful misconduct conduct, that in each case, is materially
and demonstrably injurious to Parent or the Company, or any of their affiliates,
as applicable, monetarily or otherwise; or (ii) willful failure or refusal by
Executive to substantially follow his reasonably assigned duties with the
Employing Company or to follow the proper written direction of the CEO or
Board, as applicable, after a written notice of demand is delivered to
Executive by the CEO or Board, as applicable, which remains uncured for fifteen
(15) days after written notice is given to Executive.  The Company must notify Executive of an event
constituting “Cause” within 90 days following the knowledge of its existence or
such event shall not constitute Cause under this Agreement.

 

5.                             Certain
Additional Payments by the Company.

 

(a)   Gross-UP Payment.   If it shall be determined that any payment
or distribution of any type to or in respect of Executive, by the Company or
any other person, whether paid or payable or distributed or distributable
pursuant to the terms of this Agreement or otherwise (the “Total Payments”), is
or will be subject to the excise tax imposed by Section 4999 of the Internal Revenue
Code of 1986, as amended (the “Code”) or any interest or penalties are incurred
by Executive with respect to such excise tax (such excise tax, together with
any such interest and penalties, are collectively referred to as the “Excise
Tax”), then executive shall be entitled to receive an additional payment (a “Gross-Up
Payment”) in an amount such that after payment by Executive of all taxes
(including any interest or penalties imposed with respect to such taxes)
imposed upon the Gross-Up Payment, Executive retains an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the total Payments.

 

(b)   Determination by Accountant.

 

(1)                   All computations and
determinations relevant to this Section shall be made by a national accounting
firm selected by the Company from among the five (5) largest accounting firms
in the United States (the “Accounting Firm”), and reasonably acceptable to
Executive, which firm may be the Company’s accountants.  All fees and expenses of the Accounting Firm
shall be borne solely by the Company. 
Such determinations shall include whether any of the Total Payments are “parachute
payments” (within the meaning of Section 280G of the Code).  In making the initial determination hereunder
as 

 

 

 

5

to whether a Gross-Up
Payment is required, the Accounting Firm shall be required to determine that no
Gross-Up Payment is required if, but only if, the Accounting Firm (A) concludes
that (i) there has not occurred a change in the ownership or effective control
of the Company or a change in the ownership of a substantial portion of the
assets of the Company (as such terms are defined in Section 280G of the Code)
or (ii) no portion of the total Payments constitutes “parachute payments”
(within the meaning of said Section 280)G), in either case on the basis of “substantial
authority” (within the meaning of Section 6230 of the Code), and (B) provides
an opinion to that effect to both the Company and Executive, including the
reasons therefore and an option that Executive has substantial authority not to
report any Excise Tax on his federal income tax return.  If the Accounting Firm determines that a
Gross-Up Payment is required, the Accounting Firm shall provide its determination
(the “Determination”), together with detailed supporting calculations regarding
the amount of any Gross-Up Payment and any other relevant matter both to the
Company and Executive by no later than ten (10) days following the Date of
Termination, or such earlier time as is requested by the Company or Executive
(if Executive reasonably believes that any of the Total Payments may be subject
to the Excise Tax).

 

(2)                   If a Gross-Up Payment is
determined to be payable, it shall be paid to Executive within 20 days after
the Determination is delivered to the Company by the Accounting Firm.  Any determination by the Accounting Firm
shall be binding upon the Company and Executive, absent manifest error.  Notwithstanding the foregoing, a Gross-up
Payment shall be made as soon as practicable following a determination by the
Internal Revenue Service that any portion for the Total Payments is subject to
the Excise Tax.

 

(3)                   As a result of uncertainly in
the application of Section 4999 of the Code at the time of the initial
determination by the Accounting Firm hereunder, it is possible that Gross-Up
Payments not made by the Company should have been made (“Underpayment”), or
that Gross-Up Payments will have been made by the company which should not have
been made (“Overpayments”).  In either
such event, the Accounting Firm shall determine the amount of the Underpayment
or Overpayment that has occurred.  In the
case of an Underpayment, the amount of such Underpayment (together with any
interest and penalties payable by Executive as a result of such Underpayment)
shall be promptly paid by the Company to or for the benefit of Executive.

 

 

 

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(4)                   In the case of any
Overpayment, Executive shall, at the direction and expense of the Company, take
such steps as are reasonably necessary (including the filing of returns and
claims for refund), follow reasonable instructions from, and procedures
established by, the Company, and otherwise reasonably cooperate with the
Company to correct such Overpayment, provided, however, that (i) Executive
shall not in any event be obligated to return to the Company and amount greater
than the net after-tax portion of the Overpayment that he has retained or as
recovered as a refund from the applicable taxing authorities and (ii) this
provision and all other provisions in this Agreement shall be interpreted in a
manner consistent with the intent of this Section, which is to make Executive
whole, on an after-tax basis, from the application of the Excise Taxes, it
being acknowledged and understood that the correction of an Overpayment may
result in Executive repaying to the Company and amount which is less than
Overpayment.

 

(5)                   Executive shall notify the
Company in writing of any claim by the Internal Revenue Service relating to the
possible application of the Excise Tax under Section 4999 of the Code to any of
the payments and amounts referred to herein and shall afford the Company, at
its expense, the opportunity to control the defense of such claims.

 

(6)                   Executive shall cooperate
with any reasonably requests by the company in connection with any contests or
disputes with the Internal Revenue Service in connection with the Excise Tax
and shall be reimbursed by the Company, on an after-tax basis, for all costs,
expenses, interest and penalties incurred by Executive in connection with any
such contest or dispute.

 

                5.
            RELEASE. Any and all amounts
payable and benefits or additional rights provided pursuant to this Agreement upon
Executive’s termination of employment, beyond Accrued Amounts, shall only be payable
if Executive delivers to the Employing Company a general release of all claims of
Executive occurring up to the release date in the form of Exhibit A hereto
(with such changes therein as may be necessary to make it valid and encompassing
under applicable law) within 21 days of presentation thereof by the Employing Company
to Executive.

 

                6.             (a)           CONFIDENTIALITY.
 Executive agrees that he shall not, directly
or indirectly, use, make available, sell, disclose or otherwise 

 

 

 

7

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

 

                                (b)           NONSOLICITATION.  During Executive’s employment with the
Employing Company and for the one year period thereafter, Executive 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 Employing Company 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 Employing Company 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 Employing Company or any of its subsidiaries or affiliates
to purchase goods or services then sold by the Employing Company 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.

 

                                (c)           NONCOMPETITION. Executive
acknowledges that he performs services of a unique nature for the Employing Company
that are irreplaceable, and that his performance of such services to a
competing business will result in irreparable harm to the Employing Company.
Accordingly, during Executive’s employment by the Employing Company hereunder and
for the one year period thereafter, Executive agrees that he 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 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 Employing Company or any of its subsidiaries or affiliates
is 

 

 

 

8

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 Executive has been involved to any extent (other
than de minimis) at any time during the 12-month period ending with the date of
termination, in any locale of any country in which the Employing Company conducts
business. This Section 6(c) shall not prevent Executive 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 Executive
from rendering services to charitable organizations, as such term is defined in
Section 501(c)(3) of the Code.  In
addition, Parent acknowledges and agrees that Executive’s continued employment
by the Company and its subsidiaries and affiliates following the Separation
shall not be deemed to violate the restrictions of this Section 6(c) as
applicable to Executive’s employment by Parent.

 

                                (d)            NONDISPARAGEMENT. Each of Executive
and the Employing Company (for purposes hereof, Employing Company 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 Employing Company, 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 6(d).

 

                                (e)           EQUITABLE RELIEF AND OTHER REMEDIES.
Executive acknowledges and agrees that the Employing Company’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, Executive agrees that, in
the event of such a breach or threatened breach, in addition to any remedies at
law, the Employing Company, 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.

 

                                (f)
           REFORMATION. If it is
determined by a court of competent jurisdiction in any state that any
restriction in this Section 6 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.

 

                                (g)
          SURVIVAL OF PROVISIONS. The
obligations contained in this Section 5 shall survive the termination or
expiration of Executive’s employment with the Employing Company and shall be
fully enforceable thereafter.

 

 

 

9

                7.             ASSIGNMENTS.

 

                                (a)           This Agreement is personal to each of
the parties hereto. Except as provided in Section 7(b) below, no party may
assign or delegate any rights or obligations hereunder without first obtaining
the written consent of the other party hereto.

 

                                (b)           Parent or Company (as applicable) may
assign this Agreement to any successor to all or substantially all of the
business and/or assets of the “Healthcare” business segment (before the
Separation) or the Company (thereafter); provided that Parent or Company (as
applicable) shall require such successor to expressly assume and agree to
perform this Agreement in the same manner and to the same extent that Parent or
Company (as applicable) would be required to perform it if no such succession
had taken place.

 

                8.
            NOTICE.  For the purpose of this Agreement, notices and
all other communications provided for in this Agreement shall be in writing and
shall be deemed to have been duly given (i) on the date of delivery if
delivered by hand, (ii) on the date of transmission, if delivered by confirmed
facsimile, (iii) on the first business day following the date of deposit if
delivered by guaranteed overnight delivery service, or (iv) on the fourth
business day following the date delivered or mailed by United States registered
or certified mail, return receipt requested, postage prepaid, addressed as
follows:

 

        
If to Executive:

 

        
At the address (or to the facsimile number)
         shown on the records of the
Employing Company.

 

        
If to Parent:

 

        
Tyco International Ltd.
         The Zurich Centre
         Second Floor
         90 Pitts Bay Road
         Pembroke, HMO8, Bermuda
         Attention:  Corporate Secretary

 

 

        
If to Company:

 

 

 

10

        
Tyco Healthcare Ltd.
          The Zurich Centre
         Second Floor
         90 Pitts Bay Road
         Pembroke, HMO8, Bermuda
         Attention:  Corporate Secretary

 

 

or to such other address as either party may
have furnished to the other in writing in accordance herewith, except that
notices of change of address shall be effective only upon receipt.

 

                9.
            SECTION HEADINGS;
INCONSISTENCY. The section headings used in this Agreement are included solely
for convenience and shall not affect, or be used in connection with, the
interpretation of this Agreement. In the event of any inconsistency between the
terms of this Agreement and any form, award, plan or policy of Parent or Company,
the terms of this Agreement shall control.

 

                10.           SEVERABILITY. The provisions of this
Agreement shall be deemed severable and the invalidity of unenforceability of
any provision shall not affect the validity or enforceability of the other
provisions hereof.

 

                11.           COUNTERPARTS. This Agreement may be
executed in several counterparts, each of which shall be deemed to be an
original but all of which together will constitute one and the same
instruments.

 

                12.           ARBITRATION. Any dispute or
controversy arising under or in connection with this Agreement, other than
injunctive relief under Section 6(e) hereof or damages for breach of Section 6,
shall be settled exclusively by arbitration, conducted before a single
arbitrator in New York, New York in accordance with the J*A*M*S/ENDISPUTE
Streamlined Arbitration Rules and Procedures or J*A*M*S/ENDISPUTE Comprehensive
Arbitration Rules and Procedures, as applicable, but expressly excluding Rule
28 of the J*A*M*S/ENDISPUTE Streamlined Rules (Final Offer (or Baseball)
Arbitration Option) and Rule 33 of the J*A*M*S/ENDISPUTE 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 J*A*M*S/ ENDISPUTE. 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. The Employing Company shall bear all costs and
expenses arising in connection with any arbitration proceeding 

 

 

 

11

pursuant to this Section 12 (including,
without limitation, all reasonable legal fees incurred by Executive in
connection with such arbitration.

 

                13.           INDEMNIFICATION. The Employing Company
hereby agrees to indemnify Executive and hold him harmless to the fullest
extent permitted by law and under the by-laws of the company against and in
respect to any and all actions, suits, proceedings, claims, demands, judgments,
costs, expenses (including reasonable attorney’s fees), losses, and damages
resulting from Executive’s good faith performance of his duties and obligations
with the Employing Company.

 

                14.           LIABILITY INSURANCE. The Employing Company
shall cover Executive under directors and officers liability insurance both
during his employment by the Employing Company and, while potential liability
exists, thereafter in the same amount and to the same extent as the Employing Company
covers its other officers and directors.

 

                15.           MISCELLANEOUS.  No provision of this Agreement may be
modified, waived or discharged unless such waiver, modification or discharge is
agreed to in writing and signed by Executive and such officer or director as
may be designated by the Employing Company’s Board. No waiver by either party
hereto at any time of any breach by the other party hereto of, or compliance
with, any condition or provision of this Agreement to be performed by such
other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time. This Agreement
together with all exhibits hereto sets forth the entire agreement of the
parties hereto in respect of the subject matter contained herein. No agreements
or representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not expressly
set forth in this Agreement. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of New
York without regard to its conflicts of law principles.

 

                16.           FULL SETTLEMENT.  Except as set forth in this Agreement, the
Employing Company’s obligation to make the payments provided for in this
Agreement and otherwise to perform its obligations hereunder shall not be
affected by any circumstances, including without limitation, set-off,
counterclaim, recoupment, defense or other claim, right or action which the
Employing Company may have against Executive or others, except to the extent
any amounts are due the Employing Company or its subsidiaries or affiliates pursuant
to a judgment against Executive.  In no
event shall Executive be obliged to seek other employment or take any other
action by way of mitigation of the amounts payable to Executive under any of
the provisions of this Agreement, nor shall the 

 

 

 

12

amount of any payment hereunder be reduced by
any compensation earned by Executive as a result of employment by another employer.

 

                17.           WITHHOLDING.  The Employing Company may withhold from any
and all amounts payable under this Agreement such federal, state and local
taxes as may be required to be withheld pursuant to any applicable law or
regulation.

 

                18.           COMPLIANCE WITH CODE SECTION 409A.  If payment or provision of any amount or benefit hereunder
at the time specified in this Agreement would fail to comply with the
provisions of Section 409A of the Code because Executive is treated as a “specified”
employee (within the meaning of Section 409A(a)(2)(B)(i) of the Code), then
such amount or benefit shall not be paid or provided at the time otherwise
specified in this Agreement, but instead shall be paid or provided on the date
that is six (6) months after the date of separation from service (or, if
earlier, the date of Executive’s death). In addition, to the extent that any
regulations or guidance issued under Code §409A (after application of the
previous provision of this paragraph) would result in Executive being subject
to the payment of interest or any additional tax under Code §409A, the
Employing Company and Executive agree, to the extent reasonably possible, to
amend this Agreement in order to avoid the imposition of any such interest or
additional tax under Code §409A, which amendment shall have the minimum
economic effect necessary on Executive and be reasonably determined in good
faith by the Employing Company and Executive.

 

 

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as

of the date first written above.

 

 

 

	
   

  	
  TYCO HEALTHCARE LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Carrick

  
	
   

  	
  Name:

  	
  David Carrick

  
	
   

  	
  Title: 

  	
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  RICHARD J. MEELIA

  
	
   

  	
   

  
	
   

  	
  /s/ Richard J. Meelia

  
				

 

 

 

13

EXHIBIT
A

 

FORM
OF RELEASE

 

AGREEMENT
AND GENERAL RELEASE

 

                Tyco
Healthcare 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 Richard J. Meelia, his heirs, executors, administrators,
successors and assigns (collectively referred to throughout this Agreement as “Employee”)
agree:

 

                1.             LAST DAY OF EMPLOYMENT. Employee’s
last day of employment with Employer is DATE. In addition, effective as of
DATE, Employee resigns from his position as Chief Executive Officer [of the
Employer’s Healthcare business segment] [Tyco healthcare Ltd.] and will not be
eligible for any benefits or compensation after DATE, other than as specifically
provided in Section 3 of the employment agreement between Tyco Healthcare Ltd.
and Employee dated as of _________________ (the “Employment Agreement”),
subject to the Employee’s executing, delivering and not revoking Appendix 1
hereto. Employee further acknowledges and agrees that, after DATE, 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 6(a) of the Employment Agreement and in no event will
the Employee make any statements as an agent or representative of the Employer.
In addition, effective as of DATE, 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.
These resignations will become irrevocable as set forth in Section 3 below.

 

                2.             CONSIDERATION. The parties
acknowledge that this Agreement and General Release is being executed in
accordance with Section 5 of the Employment Agreement.

 

                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 the Employer and state, “I
hereby revoke my acceptance of our Agreement and General Release.” The
revocation must be

 

 

 

14

personally delivered to SENIOR VICE PRESIDENT
OF HUMAN RESOURCES’ NAME, or her designee, or mailed to the Employer at the
notice address set forth in the Employment Agreement 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.

 

                4.             GENERAL RELEASE OF CLAIMS. 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:

 

	
   

  	
  —

  	
  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;

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  —

  	
  The Family and Medical
  Leave Act of 1993;

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  —

  	
  The STATE Civil Rights
  Act, as amended;

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  —

  	
  The STATE Minimum Wage
  Law, as amended;

  	
   

  

 

 

 

15

	
   

  	
  —

  	
  Equal Pay Law for STATE,
  as amended;

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  —

  	
  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 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 DATE with regard to his service as an officer of
the Employer (including, without limitation, under Sections 13 and 14 of the
Employment Agreement); (ii) the Employee’s rights 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; (iii)
the Employee’s rights under the provisions of the Employment Agreement which
are intended to survive termination of employment; or (iv) the Employee’s
rights as a stockholder.

 

                5.             NO CLAIMS PERMITTED.  Employee waives his right to file any charge
or complaint against Employer 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 

 

 

 

16

Section 3 of the Employment Agreement.
Employee also affirms he has no known workplace injuries.

 

                7.
            CONFIDENTIALITY; COOPERATION;
RETURN OF PROPERTY. Employee agrees not to disclose any information regarding
the circumstances surrounding the cessation of his employment, or the existence,
terms, or conditions of this Agreement and General Release, 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). 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.
The Employer will reimburse the Employee for any reasonable pre-approved out-of-pocket
travel, delivery or similar expenses incurred in providing such service to the
Employer. Employee represents that he has returned 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.
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
either may institute an action to specifically enforce any term or terms of
this Agreement and General Release. 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 

 

 

 

17

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 in the Employment Agreement which are intended to
survive termination of the Employment Agreement, including but not limited to
those contained in Section 6 thereof, 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 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 IN SET FORTH IN THE
EMPLOYMENT AGREEMENT, 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.

 

 

 

18

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

 

 

	
   

  	
  Tyco Healthcare Ltd.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
  RICHARD J. MEELIA

  	
   

  	
  SENIOR VICE PRESIDENT OF

  
	
   

  	
   

  	
  HUMAN RESOURCES’ NAME

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  
					

 

MR. RICHARD J. MEELIA

 

                 Re: Agreement and General
Release

 

Dear Rich:

 

        
This letter confirms that on DATE, I personally sent to you the enclosed
Agreement and General Release. You have until DATE to consider this Agreement
and General Release, in which you waive important 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.

 

	
   

  	
  Regards,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SENIOR VICE PRESIDENT OF

  
	
   

  	
  HUMAN RESOURCES’ NAME

  
	
   

  	
  [Tyco International Ltd.]

  
	
   

  	
  [Tyco Healthcare Ltd.]

  

 

 

 

19

APPENDIX
1

 

SENIOR VICE PRESIDENT OF

HUMAN RESOURCES’ NAME

[Tyco International Ltd.] [Tyco Healthcare Ltd.]

 

                      Re: Agreement and General
Release

 

Dear NAME,

 

        
On __________ [date] I executed an Agreement and General Release between
[Tyco Healthcare Ltd.] and me. I was advised by [Tyco Healthcare Ltd.], in
writing, to consult with an attorney of my choosing, prior to executing this
Agreement and General Release.

 

        
More than seven (7) calendar days have expired since I executed the above-mentioned
Agreement and General Release. I have at no time revoked my acceptance or
execution of that Agreement and General Release and hereby reaffirm my
acceptance of it. Therefore, in accordance with the terms of our Agreement and General
Release, I request payment of the monies and benefits described in Section 3 of
the Employment Agreement.

 

 

	
   

  	
  Regards,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signed:

  	
   

  	
   

  
	
   

  	
   

  	
  RICHARD J. MEELIA

  	
   

  

 

 

 

20Exhibit 10.7

 

SEPARATION
OF EMPLOYMENT AGREEMENT AND GENERAL RELEASE

 

THIS SEPARATION OF EMPLOYMENT AGREEMENT AND
GENERAL RELEASE (the “Agreement”) is made as of this 7th day of October, 2006,
by and between Tyco Healthcare Group, L.P., (the “Company”) and Mr. Kevin
Gould (“Executive”).

 

WHEREAS, Executive is employed by the Company
as Chief Operating Officer for Tyco Healthcare;

 

WHEREAS, Executive is a Participant in the
Tyco International (US) Inc. Severance Plan for U.S. Officers and Executives
(the “Plan”) which provides for certain benefits in the event that Executive’s
employment is terminated on account of a reason set forth in the Plan, subject
to the terms of the Plan;

 

WHEREAS, Executive and the Company mutually
desire to terminate Executive’s employment on an amicable basis, such
termination to be effective March 31, 2007 (“Date of Termination”);
Between October 1, 2006 and March 31, 2007, Mr. Gould will be
required to perform his current duties as determined by Mr. Richard
Meelia, Chief Executive officer of Tyco Healthcare or designee.  At Mr. Meelia’s discretion, Mr. Gould
may be required to come into the office only on an as needed basis beginning December 1,
2006 through March 31, 2007.  In
addition, Mr. Gould will be required to comply with all Tyco policies and
procedures during this period including the Tyco Guide to Ethical Conduct; and

 

WHEREAS, in connection with the termination
of Executive’s employment, the parties have agreed to a separation package and
the resolution of any and all disputes between them.

 

NOW, THEREFORE, IT IS HEREBY AGREED by and
between Executive and the Company as follows:

 

1.                                       Notice.  Pursuant to this Agreement and the Plan,
Executive is hereby being provided with more than 30 calendar days’ written
notice of the termination of his employment (the “Notice Period”), which
termination shall be effective on the Date of Termination.  Unless otherwise provided under applicable
law, Executive will not be eligible to apply for workers’ compensation at any
time after the Executive’s last active day at work.

 

2.                                       In consideration
for Executive’s agreement as set forth herein, the Company agrees subject to
prior approval by the Tyco Compensation Committee to the following:

 

(a)                                  Severance
Payment.  Six months after the Date
of Termination or the end of the revocation period for the Release, whichever
is later, Executive will begin receiving 18 months of pay (such number of
months shall hereinafter be referred to as the “Severance Period”) at a gross
monthly rate of $47,916.66, minus any applicable deductions or withholdings or
other reductions provided for under the Plan, which will be payable in a manner
and on days that correspond to the Company’s regular paydays and payroll
practices.  Executive expressly
authorizes the Company to make any necessary deductions, withholding, or other
reductions.

 

1

 

(b)                                 Bonus.

 

(i)                                     Executive
shall receive 18 gross cash payments which in total shall equal $646,875, minus
any applicable deductions or withholdings. 
Such bonus payments shall be paid to Executive in equal consecutive
installments over the course of the Severance Period in a manner on days that
correspond to the Company’s regular paydays and payroll practices, except that
in the sole discretion of the Company, any unpaid installments may be paid in a
single lump sum.

 

(ii)                                  Executive
will be eligible for a cash payment for his full year FY2006 and prorated
FY2007 annual bonus for the year in which the Date of Termination occurs subject
to the discretion of the Company and pursuant to the terms set forth in the
applicable in incentive plan, if any.

 

(c)                                  Medical
and Dental Benefits.  Executive shall
continue to receive the medical and dental coverage in effect at Executive’s
Date of Termination (or generally comparable coverage) for Executive and, where
applicable, Executive’s spouse or domestic partner and dependents, as the same
may be changed from time to time for employees of the Company generally, as if
Executive had continued in employment from April 1, 2007 through September 30,
2008.  Executive shall be responsible for
the payment of the employee portion of the medical and dental contributions
that are required during this period and such contributions shall be made
within the time period and in the amounts that other employees are required to
pay to the Company for similar coverage.  Employee will deliver a check for the employee
portion of this monthly cost to Human Resources for the period April through
September 30, 2006.  Thereafter for
the next 12 months the cost will be deducted from the Executive’s monthly
Severance payment.  Executive’s failure
to pay the applicable contributions shall result in the cessation of the
applicable medical and dental coverage for the Executive and Executive’s spouse
or domestic partner and dependents.  Notwithstanding
any other provision of the plan to the contrary, in the event that Executive
commences employment with another company at any time during the Severance
Period, Executive may choose to cease receiving coverage under the Company’s
medical and dental plans.  Within thirty
(30) days of Executive’s commencement of employment with another company,
Executive shall provide the Company written notice of such employment and
provide information to the Company regarding the medical and dental benefits
provided to Executive by his new employer.  On September 30, 2008, Executive’s
medical and dental coverage, as described above, will cease.  Executive will receive election forms and
other notices regarding this COBRA coverage from the Company’s third-party
administrator.  The COBRA Continuation
Coverage Period under section 4980B of the Internal Revenue Code shall run
for eighteen months from March 31, 2007 through September 30th 2008...  Any questions regarding these plans should be
directed to Ms. Suzanne Carlson, Tyco Healthcare.

 

(d)                                 Dependent
Care Reimbursement Account.  Executive’s
pre-tax contributions to a Dependent Care Reimbursement Account will cease on
Executive’s Date of Termination.  Any
claims incurred before Executive’s Date of Termination will be reimbursed
according to the terms of the applicable plan.  Executive may submit a 

 

2

 

request for
reimbursement for expenses incurred before Executive’s Date of Termination for
reimbursement until March 31, 2008.

 

(e)                                  Health
Care Reimbursement Account. 
Executive’s pre-tax contributions to a Health Care Reimbursement Account
will cease on Executive’s Date of Termination. 
Any eligible health care expenses incurred through the end of the month
of Executive’s Date of Termination, will be reimbursed according to the terms
of the plan.  Executive may continue
participation in a Health Care Reimbursement Account on an after-tax basis
through Cobra (see paragraph 2c above).

 

(f)                                    Retirement
Savings and Investment Plan.  Executive
shall be fully vested in all Company contributions, if any, made to the Company’s
Retirement Savings and Investment Plan on behalf of the Executive.  To request changes to Executive’s Plan
account(s) or to obtain additional information, Executive should log on to
Fidelity NetBenefits® at www.40lk.com or
call the Tyco Benefits Center toll free at 1-888-222-TYCO (8926).

 

If Executive has an outstanding loan under
the RSIP, Executive will have ninety (90) days from the Date of Termination to
repay in full the outstanding loan balance and finance charges in order to
avoid current taxation on the amount of the loan.  Should the repayment not occur, the RSIP will
consider the Executive to be in default of the loan and the outstanding amount
of the loan will be treated as a distribution to the Executive.  The distribution would be currently taxable
under applicable Internal Revenue Service rules.  In the event that Executive elects not to
repay the loan, Executive may avoid current taxation by making a rollover contribution
of the outstanding loan balance to an Individual Retirement Account (“IRA”) in
accordance with applicable tax law.

 

(g)                                 Life
insurance. Executive’s life
insurance coverage will end on Executive’s Date of Termination.  Executive may be eligible to convert basic
term life, personal and family accident, accidental death and dismemberment,
supplemental life and the business travel accident insurance policies to
individual policies.  Conversion
information is available by contacting your local Human Resource representative.  Executive must apply and pay the first
conversion premium within 31 days of Executive’s Date of Termination, if such
conversion is available.

 

(h)                                 Disability
insurance and sick pay.  Executive’s
disability insurance coverage will end on Executive’s last active day at work.  Sick pay will not be granted after Executive’s
last active day at work.

 

(i)                                     Return
of Company Property. Executive is
required to return all company property to Ms. Carol Pender
Company property includes, but is not limited to, building I.D. and name tags,
office keys and company car keys, Executive’s company computer and/or laptop,
all computer files and software, diskettes, samples, cases, brochures, papers,
notes, and other documents, and all copies, relating to Tyco
Healthcare its business, and its customers, that Executive has
acquired by virtue of Executive’s employment. 
As of the Date of Termination, the Company will make 

 

3

 

arrangements
to remove, terminate or transfer any and all business communication lines
including network access, cellular phone, fax line and other business numbers.

 

(j)                                     Stock
Option Awards.  Executive’s stock
option awards dated March 10th and November 22nd, 2005 will fully
vest as of the Date of Termination and be exercisable until March 31, 2008
.... All other stock option awards will vest in accordance with the applicable
award agreements and will be exercisable until December 31, 2007.  Executive’s period to exercise any of the
vested shares listed above may be extended beyond the period listed in this
agreement if specifically provided for in the applicable award agreement.  In no event, however, shall an option be exercisable
beyond its original term.  To understand
the number of stock options available to you, the length of the remaining
exercise period, and to exercise any remaining vested stock options, please
call UBS at (877) 785-8926 or (201) 785-7611 or visit the UBS website at “www.ubs/onesource/tyc”.
 To the extent there is a discrepancy
between the language in this agreement and the terms of the applicable award
agreements, the stock option agreement(s) language will govern.

 

(k)                                  Restricted
Stock and Performance Shares.  All
outstanding unvested restricted stock awards and performance shares held by the
Executive will fully vest as of the Date of Termination.  (Please refer to the attached excel
spreadsheet which sets forth the treatment of your restricted stock awards and
performance shares and approximate current value ...)

 

(l)                                     Outplacement
Services.  The Company shall pay the
cost of outplacement services for the Executive for a period of twelve months
at either (i) the outplacement agency that the Company uses for such
purposes for executives at Executive’s level; or (ii) in the event that
the Chief Executive Officer of the successor corporation to Tyco Healthcare
(sometimes referred to as “Newco”) provides prior approval, at an outplacement
agency selected by the Executive.  The
Executive understands that the cost of these services will not exceed $40,000
over the twelve month period.

 

(m)                               Other
Benefits.  The Executive shall
receive any amounts earned, accrued or owing but not yet paid to Executive as
of his Date of Termination, including, but not limited to, unused accrued
vacation, unpaid base salary earned by Executive through the Date of Termination,
payable in a lump sum, and any benefits accrued or earned, will be distributed
in accordance with the terms of the applicable benefit plans and programs of
the Company.  Executive will not accrue
any vacation pay after December 31, 2006.

 

(n)                                 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, the Company, in its sole discretion,
may elect to pay to the Executive cash in lieu of such coverage in an amount
equal to the Company’s contribution or average cost of providing such coverage.

 

4

 

(o)                                 Transfer
or Rehire.  After the date of this letter
agreement, Executive will not be eligible to receive any other salary, bonus or
benefits from the Company other than as provided in this Section 2.  Further, if Executive accepts a transfer or is
rehired by any Tyco entity, affiliate or subsidiary as an employee, consultant
or independent contractor, any remaining Severance Payment that Executive has
not yet received will discontinue upon the respective transfer or rehire date.

 

(p)                                 Reduction
of Severance Benefits.  The Company
reserves the right to make deductions in accordance with applicable law for any
monies owed to the Company by the Executive or the value of the Company
property that the Executive has retained in his possession.

 

(q)                                 Computer
Loan –If the Executive has an outstanding computer loan or other company
loan the Executive is required to pay this loan in full on or before the Date
of Termination.

 

(r)                                    Supplemental
Savings and Retirement Plan (SSRP) - Executive’s participation in the SSRP
will cease on Executive’s Date of Termination and any unvested portion of
Executive’s account balance will fully vest on the Date of Termination.  If Executive’s separation is due to an
involuntary termination (not for cause), retirement or disability, Executive
will be paid out according to the elections made under the plan, provided
Executive’s account balance is at least $5,000, otherwise Executive’s account
balance will be paid out in a lump sum.  Payment will be made within sixty (60) days
after the end of the calendar year in which occurs the Executive’s Date of Termination.
 If Executive has any questions regarding
the SSRP, Executive should contact the Tyco Benefits Center at 1-888-222- TYCO
(8926) or log on to www.401k.com.

 

(s)                                  Deferred
Compensation Plan (DCP) - For Executives who participated in the Tyco
Deferred Compensation Plan and whose grandfathered account balance is now
maintained under the Supplemental Savings and Retirement Plan (SSRP), payment
of this portion of your account under the SSRP will be made according to the terms
and provisions of the Deferred Compensation Plan, as in effect on December 31,
2004.  Payment will be made within sixty
(60) days after the end of the calendar year in which occurs the Executive’s
Date of Termination.  If Executive has
any questions regarding his grandfathered DCP balance under the SSRP, Executive
should contact the Tyco Benefits Center at 1-888-222- TYCO (8926) or log onto
www.401k.com.

 

(t)                                    Supplemental
Executive Retirement Plan (SERP) - If Executive participated in the SERP,
any unvested portion of Executive’s account will fully vest on the Date of Termination
and payment of the SERP account will be based on Executive’s irrevocable
election.  If no election is on file,
payment will be made in a lump sum on the last day of the quarter following
Executive’s Date of Termination, or as soon as administratively practicable
thereafter.  For installment elections,
payments begin on January 1 following Executive’s Date of Termination or
as soon as administratively practicable thereafter.  All subsequent installment payments are paid
out during the same timeframe in future years.  If Executive has any questions regarding this
plan, Executive 

 

5

 

should contact
the Tyco Benefits Center at 1-888-222¬TYCO(8926) or log onto www.40lk.com.

 

(u)                                 Tyco
Employee Stock Purchase Plan - Executive’s voluntary deductions for the
Company’s Employee Stock Purchase Plan will cease as of the Date of
Termination.  If Executive currently
participates in the Plan, or if Executive participated in the past and still
hold shares of Company stock under the Plan, Executive should contact
Computershare at 1-866-571-2090 to determine the current status of Executive’s
account and/or receive a distribution.

 

(v)                                 Perquisite
Payments.  Executive’s last
perquisite payment will be made in March, 2007, assuming Executive is an active
employee on March 31, 2007.

 

3.                                       (a) Executive,
for and in consideration the commitments of the Company as set forth in
paragraph 2 of this Agreement, and intending to be legally bound, does hereby
REMISE, RELEASE AND FOREVER DISCHARGE the Company, its affiliates, subsidiaries
and parents, and its officers, directors, employees, and agents, and its and
their respective successors and assigns, heirs, executors, and administrators
(collectively, “Releasees”) from all causes of action, suits, debts, claims and
demands whatsoever in law or in equity, which Executive ever had, now has, or
hereafter may have, whether known or unknown, or which his heirs, executors, or
administrators may have, by reason of any matter, cause or thing whatsoever,
from the beginning of his employment to the date of this Agreement, and
particularly, but without limitation of the foregoing general terms, any claims
arising from or relating in any way to Executive’s employment relationship with
Company, the terms and conditions of that employment relationship, and the
termination of that employment relationship, including, but not limited to, any
claims arising under the Age Discrimination in Employment Act, the Older
Workers Benefit Protection Act (“OWBPA”), Title VII of The Civil Rights Act of
1964, the Americans with Disabilities Act, the Family and Medical Leave Act of
1993, the Employee Retirement Income Security Act of 1974, the Massachusetts state employment laws, and any other claims
under any federal, state or local common law, statutory, or regulatory
provision, now or hereafter recognized, and any claims for attorneys’ fees and
costs.  This Agreement is effective
without regard to the legal nature of the claims raised and without regard to
whether any such claims are based upon tort, equity, implied or express contract
or discrimination of any sort.

 

(b)                                 To
the fullest extent permitted by law, and subject to the provisions of paragraph
12 below, Executive represents and affirms that (i) Executive has not
filed or caused to be filed on Executive’s behalf any claim for relief against
the Company or any Releasee and, to the best of his knowledge and belief, no
outstanding claims for relief have been filed or asserted against the Company
or any Releasee on Executive’s behalf; and (ii) Executive has no knowledge
of any improper, unethical or illegal conduct or activities that Executive has
not already reported to any supervisor, manager, department head, human
resources representative, agent or other representative of the Company, to any
member of the Company’s legal or compliance departments, or to the ethics
hotline; and (iii) Executive will not file, commence, prosecute or
participate in any judicial or arbitral action or proceeding against the
Company or any Releasee based upon or arising out of any act, omission,
transaction, occurrence, contract, claim or event existing or occurring on or
before the date of this Agreement.

 

6

 

©  The
Company agrees to release Executive from any claims the Company may have
against Executive that are known to them up to the date of the execution of
this Agreement.

 

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

 

(b) Non-solicitation.
 During the Executive’s employment with
the Company or a subsidiary and for the eighteen (18) month period thereafter,
the Executive agrees that Executive 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 employee of
the Company or any of its subsidiaries or affiliates (as defined by the
Company) 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 Company 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 Company or any of its
subsidiaries or affiliates to purchase goods or services then sold by the
Company 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. 
This paragraph does not prohibit the Executive from providing a verbal
or written recommendation to a current or former employee of the Company.

 

(c) Non-competition.
 Executive acknowledges that Executive
performs services of a unique nature for the Company that are irreplaceable,
and that Executive’s performance of such services to a competing business will
result in irreparable harm to the Company. 
Accordingly, during the Executive’s employment with the Company or
subsidiary and for the eighteen (18) months, thereafter, the Executive agrees
that Executive 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 compensation) or render services to, engaged
in any business of the same type as any business in which the Company or any of
its subsidiaries or affiliates is engaged on the date of termination or in
which, to the executive’s knowledge they have proposed, on or prior to such
date, to be engaged in on or after such date and in which the Executive 

 

7

 

has been
involved to any extent (other than de minimis) at any time during the one (1) year
period ending with the date of termination, in any locale of any country in
which the Company or any of its subsidiaries conducts business.  This subparagraph 4(c) shall not prevent
the Executive 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 Executive from rendering services to
charitable organizations, as such term is defined in section 501(c) of
the Code nor providing an oral or written letter of recommendation concerning a
current or former employee of the Company.

 

(d)  Continued
Cooperation.  Executive acknowledges
that that Company may need to consult with Executive from time to time after Executive’s
Date of Termination including, during the severance period matters that
Executive had worked on prior to the Date of Termination.  Executive agrees to continue to cooperate
with Company and to provide any such information as is reasonably requested by
Company.

 

(e)  Reasonableness.  Executive acknowledges that the restrictions
contained in this paragraph 4 are reasonable and necessary to protect the
legitimate interests of the Company, its subsidiaries and its affiliates, that
the Company would not have executed this Agreement in the absence of such
restrictions, and that any violation of any provision of this paragraph will
result in irreparable injury to the Company. 
By executing this Agreement, Executive represents that Executive’s
experience and capabilities are such that the restrictions contained in this
paragraph 4 will not prevent Executive from obtaining employment or otherwise
earning a living at the same general level of economic benefit as is currently
the case.  Executive further represents
and acknowledges that (i) Executive has been advised by the Company to
consult with legal counsel of Executive’s choosing in respect of this
Agreement, and (ii) that Executive has had full opportunity, prior to
executing this Agreement, to review thoroughly this Agreement with counsel.  In the event the provisions of this paragraph
4 shall ever be deemed to exceed the time, scope or geographic limitations
permitted by applicable laws, then such provisions shall be reformed to the
maximum time, scope or geographic limitations, as the case may be, permitted by
applicable laws.

 

(f)  Survival
of Provisions.  The obligations contained
in paragraphs 4, 5, 6, 7, 10, 11, 15, and any other paragraph that contains
obligations to be performed following the termination of Executive’s employment
with the Company or a subsidiary, shall survive such termination and shall be
fully enforceable thereafter.

 

5.                                       Subject to the
provisions of paragraph 12, in further consideration of the payments described
in paragraph 2, Executive agrees that Executive will not file, charge, claim,
sue or cause or permit to be filed, charged or claimed, any civil action, suit
or legal proceeding seeking equitable or monetary relief (including damages,
injunctive, declaratory, monetary or other relief) for himself or herself
involving any matter released in paragraph 3.  In the event that suit is filed in breach of
this covenant not to sue, it is expressly understood and agreed that this
covenant shall constitute a complete defense to any such suit.  In the event any Releasee is required to
institute litigation to enforce the terms of this paragraph, Releasees shall be
entitled to recover reasonable costs and attorneys’ fees incurred in such
enforcement.  Executive further agrees
and covenants that should any person, organization, or other entity file,
charge, claim, sue, 

 

8

 

or cause or permit to be filed
any civil action, suit or legal proceeding involving any matter occurring at
any time in the past, Executive will not seek or accept personal equitable or
monetary relief in such civil action, suit or legal proceeding.

 

6.                                       Executive
further agrees and recognizes that Executive has permanently and irrevocably
severed his employment relationship with the Company, that Executive shall not
seek employment or seek to provide services as a consultant, independent
contractor or otherwise with the Company or any affiliated entity at any time
in the future, and that the Company has no obligation to employ, or retain the
services of, Executive in the future.

 

7.                                       Executive and Company
agree to use best efforts to ensure that neither party is disparaged in any
manner.

 

8.                                       Executive
understands and agrees that the payments, benefits and agreements provided in
this Agreement are being provided to Executive in consideration for Executive’s
acceptance and execution of, and in reliance upon Executive’s representations
in, this Agreement, and that they are greater than the payments, benefits and
agreements, if any, to which the Executive would have received if Executive had
not executed this Agreement.  In the
event of the Executive’s death prior to the completion of all severance
payments being made under this Agreement, the remaining payments shall be paid
to the Executive’s estate.

 

9.                                       Executive
acknowledges and agrees that the Company previously has satisfied any and all
obligations owed to Executive under any employment agreement or offer letter
Executive has with the Company and, further, that this Agreement fully
supersedes any prior agreements or understandings, whether written or oral,
between the parties.  Executive
acknowledges that, except as set forth expressly herein, neither the Company,
the Releasees, nor their agents or attorneys have made any promise,
representation or warranty whatsoever, either express or implied, or written or
oral.

 

10.                                 Subject to the
provisions of paragraph 12 below, Executive agrees not to disclose the terms of
this Agreement to anyone, except his spouse, attorney, current supervisor and,
as necessary, tax/financial advisor. It is expressly understood that any
violation of the confidentiality obligation imposed hereunder constitutes a
material breach of this Agreement.

 

11.                                 Executive represents
that Executive will provide to the Company on or before his last active day of
employment any records and business documents, whether on computer or hard
copy, and other materials (including but not limited to computer disks and
tapes, computer programs and software, office keys, correspondence, files,
customer lists, technical information, customer information, pricing
information, business strategies and plans, sales records and all copies
thereof) (collectively, the “Corporate Records”) provided by the Company and/or
its predecessors, subsidiaries or affiliates or obtained as a result of his
prior employment with the Company and/or its predecessors, subsidiaries or
affiliates, or created by Executive while employed by or rendering services to
the Company and/or its predecessors, subsidiaries or affiliates.  Such records do not include his personal
financial records.  Executive
acknowledges that all such Corporate Records are the property of the Company.

 

9

 

12.                                 Nothing in this
Agreement shall prohibit or restrict Executive 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 the Company’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.

 

13.                                 The parties agree and
acknowledge that the agreement by the Company described herein, and the
settlement and termination of any asserted or unasserted claims against the
Releasees, are not and shall not be construed to be an admission of any
violation of any federal, state or local statute or regulation, or of any duty
owed by any of the Releasees to Executive.

 

14.                                 Executive agrees and
recognizes that should Executive breach any of the obligations or covenants set
forth in this Agreement, the Company will have no further obligation to provide
Executive with the consideration set forth herein, and will have the right to
seek repayment of all consideration paid up to the time of any such breach
exclusive of any deferred compensation benefits owed to the Executive.  Further, Executive acknowledges in the event
of a breach of this Agreement, Releasees may seek any and all appropriate
relief for any such breach, including equitable relief and/or money damages,
attorney’s fees and costs.

 

15.                                 Executive irrevocably
and unconditionally (i) agrees that any suit, action or other legal
proceeding relating to or arising out of this Agreement, including without
limitation, any action commenced by the Company for preliminary and permanent
injunctive relief or other equitable relief, may be brought in Massachusetts, (ii) consents
to the non-exclusive jurisdiction of any such court in any such suit, action or
proceeding, and (iii) waives any objection which Executive may have to the
laying of venue of any such suit, action or proceeding in any such court.  Executive also irrevocably and unconditionally
consents to the service of any process, pleadings, notices or other papers by
personal service or by registered or certified mail, return receipt requested,
or by overnight express courier service, addressed to Executive at the home
address which Executive most recently communicated to the Company in writing.

 

16.                                 This Agreement and the
obligations of the parties hereunder shall be construed, interpreted and
enforced in accordance with the laws of the Massachusetts.

 

17.                                 Executive certifies
and acknowledges as follows:

 

(a)                                  That
Executive has read the terms of this Agreement, and that Executive understands
its terms and effects, including the fact that Executive has agreed to RELEASE
AND FOREVER DISCHARGE the Company and each and everyone of its affiliated
entities from any legal action arising out of Executive’s employment
relationship with the Company and the termination of that employment
relationship;

 

(b)                                 That
Executive has signed this Agreement voluntarily and knowingly in exchange for
the consideration described herein, which Executive acknowledges is adequate
and satisfactory to Executive and which Executive 

 

10

 

acknowledges
is in addition to any other benefits to which Executive is otherwise entitled;

 

(c)                                  That
Executive has been and is hereby advised in writing to consult with an attorney
prior to signing this Agreement;

 

(d)                                 That
Executive does not waive rights or claims that may arise after the date of this
Agreement is executed;

 

(e)                                  That
the Company has provided Executive with a period of 21 days within which to
consider this Agreement, and that Executive has signed on the date indicated
below after concluding that this Agreement is satisfactory to Executive.

 

(f)                                    Executive
acknowledges that this Agreement maybe revoked by Executive within seven (7) days
after Executive’s execution, and it shall not become effective until the
expiration of such seven day revocation period. 
Any revocation within this period must be submitted in writing, to
Company and state, “I hereby revoke my acceptance of our Agreement.”  The revocation must be personally delivered
to Mr. Rich Meelia or his designee,
postmarked within seven (7) calendar days of Executive’s execution of this
Agreement.  If the last day of the
revocation period is a Saturday, Sunday, or legal holiday in Massachusetts, then the revocation period shall not expire
until the next following day which is not a Saturday, Sunday, or legal
holiday.  In the event of a timely
revocation by Executive, this Agreement will be deemed null and void and the
Company will have no obligations hereunder.

 

Intending to be legally bound hereby,
Executive and the Company executed the foregoing Confidential Separation of Employment
Agreement and General Release this 7th day of October, 2006.

 

	
  Mr. Kevin
  J. Gould

  
	
   

  
	
    /s/ Kevin J. Gould

  	
   

  
	
   

  
	
   

  	
  Witness:

  	
    /s/
  Kathleen A. Gould

  	
   

  
	
   

  
	
  Tyco
  International (US) Inc.

  
	
   

  
	
  By:

  	
    /s/ Laurie Siegel

  	
   

  
	
  Ms. Laurie Siegel

  
	
  Senior Vice President

  
	
  Human Resources

  
	
   

  
	
  Tyco Healthcare

  
	
   

  
	
  By:

  	
    /s/ Rich Meelia

  	
   

  
	
  Mr. Rich Meelia

  
							

 

11

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