Document:

Exhibit 10.14

Exhibit 10.14

AGREEMENT

AGREEMENT, dated as of December 24, 2009, by and between W.P. Carey & Co. LLC (the “Company”),
a Delaware limited liability company, W.P. Carey International LLC (“WPCI”), a Delaware limited
liability company, and Edward V. LaPuma (“Executive”).

WHEREAS, the parties have agreed that it would be in their mutual best interests for Executive
to resign from employment with the Company and WPCI and, in connection therewith, the Company, WPCI
and Executive have determined to settle all of their respective rights and obligations in respect
of the Employment Agreement between Executive and the Company, dated as of June 28, 2000, as
amended March 21, 2003, and as further amended on December 31, 2008 (as so amended, the “Employment
Agreement”) and other matters pertaining to Executive’s services with the Company, WPCI and any of
their affiliates;

NOW, THEREFORE, in consideration of their mutual promises, the Company, WPCI and Executive
agree as follows:

1. Resignation. Effective as of the date hereof (the “Resignation Date”), the
Executive hereby resigns from employment with the Company and hereby simultaneously resigns
(i) as an employee, as President and as a member of the board of directors of WPCI, and
from each other officer or executive position held with WPCI, (ii) as an employee and
Managing Director and Head of International Investments of the Company and from each other officer
or executive position held with the Company, (iii) from employment with each of the
Company’s other subsidiaries and affiliates and (iv) from each other officer or executive
position held with the Company and each directorship or officer or executive position held with
each of the Company’s subsidiaries or affiliates, including, without limitation, any Corporate
Property Associates entity, such as CPA 14, CPA 15, CPA 16 and CPA 17 (the “CPA Entities”).
Without limiting the generality of the foregoing, during the 90 day period following the
Resignation Date, Executive shall execute promptly such other documents evidencing each or any of
the foregoing resignations as the Company or WPCI shall request.

2. Compensation. Promptly following the Resignation Date, Executive shall be paid any
portion of his base salary payable for services through the Resignation Date that has not been
previously paid to Executive. On or before December 30, Executive shall also be paid $436,000, net
of draw previously paid, in accordance with prior practice, in respect of all other compensation
due and owing to Executive in addition to his base salary, including commission, bonus and other
incentive compensation, in respect of his services to the Company, WPCI and their affiliates (the
“Company
Entities”) through the Resignation Date. Except as otherwise expressly provided in this
Agreement, the payments made under this Section 2 shall be in full and complete satisfaction of all
of Executive’s claims, rights and entitlements (including, but not limited to, any claims in
respect of bonuses, commissions, incentive compensation and vacation pay) relating to or arising
from his employment by or other services to the Company Entities.

 

 

 

3. Rights in Respect of Restricted Stock Units and Options. Notwithstanding Section 2
hereof, (i) Executive’s rights and entitlements with respect to the 94,208 restricted stock
units credited to Executive’s account under the W.P. Carey & Co. LLC Deferred Compensation Plan for
Employees shall be governed by the terms of such Plan, a copy of which has been provided to
Executive, (ii) Executive shall have the right, for 30 days following the Resignation Date,
to exercise in accordance with its terms the option in respect of 36,000 of the Company’s shares
remaining exercisable from the option grant made April 1, 2002, as illustrated on Exhibit A hereto
(the “April 2002 Option”) and (iii) Executive shall have the right to exercise in
accordance with their terms all options listed on Annex A other than the April 2002 Option (the
“PEP Options”), from and after the Resignation Date or, if later, the date such options become
exercisable in accordance with their terms, and until the stated expiration date for such options.
The PEP Options are non-forfeitable and become exercisable ratably in annual installments,
commencing with the fifth, and ending with the ninth, anniversary of the date on which such option
was granted, and regardless of whether any such anniversary date shall occur after the Resignation
Date. Stacey Lamendola (or, if any time she is no longer serving as the Company’s principal human
resources officer, her successor in such position) shall upon Executive’s request assist Executive
with any forms or information required to exercise the April 2002 Option or any of the PEP Options.

4. Purchase of WPCI Equity Interests. The Company shall purchase from Executive and
Executive shall sell to the Company all of his right, title and interest in WPCI and W.P.C.I.
Holdings I LLC (“Holdings I”) and W.P.C.I. Holdings II LLC (“Holdings II)” (such interests to be
collectively referred to as, the “WPCI Interests”) for a payment in cash of $15,380,000, to be made
by wire transfer, on or before December 30, 2009, to the Executive’s account previously used by the
Company Entities in respect of other payments made to him by the Company Entities. For the
avoidance of doubt, the parties agree that the WPCI Interests being purchased by the Company from
Executive are owned outright by him, as a capital asset, and that this purchase transaction
reflects a negotiated fair market value of such interests and not a compensatory transaction. The
purchase and sale of such WPCI Interests shall be effected after the distribution of the property
dividend payable by WPCI in respect of the fourth quarter of 2009, which shall be made on or before
December 24, 2009, and by Holdings I and Holdings II in respect of the fourth quarter of 2009,
which shall be made on or before December 28, 2009. Upon the confirmation of receipt of such wire
by the institution at which such account is held, Executive shall have no further ownership,
interest or claim in respect of any of
WPCI, Holdings I or Holdings II or by reason of having been a member thereof, except that
Executive shall be entitled to receive tax distributions in respect of the income allocable to him
in respect of his having been a member of WPCI, Holdings I and Holdings II during 2009, in each
such case in the amount determined by the Company or WPCI, acting in good faith consistent with
past practices, and any such amount shall be payable at the same time and in the same manner
payable to the other individual member of each such entity, which shall be determined in a manner
consistent with past practices. WPCI, Holdings I and Holdings II shall each record on its books
and records the transfer of ownership of Executive’s interests to the Company in accordance with
this Section 4, and Executive agrees to execute any and all additional documents that, during the
90 day period following the Resignation Date, the Company requests Executive to execute to
otherwise evidence or record the sale of such WPCI Interests by Executive to the Company.

 

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5. Employee Benefits. Except as otherwise expressly provided herein, Executive’s
participation in, and coverage under any and all Company-provided benefit plans, policies and
arrangements shall cease on the Resignation Date, in accordance with the benefit plan guidelines.
Following the Resignation Date, Executive shall have all of the rights of a terminated vested
participant under the Company’s profit sharing plan and 401(k) plan, including the right to direct
the timing of distribution of his account balance under each such plan and the ability to rollover
a distribution therefrom, in either case in accordance with the terms and conditions of such plans
and applicable law. Executive shall be entitled to receive a profit sharing allocation for 2009 in
accordance with the terms of the profit sharing plan. Executive shall be eligible to continue his
coverage under the Company’s medical benefit plan in accordance with, and subject to the terms and
conditions applicable under COBRA; provided that the Company has no further duty or obligation to
reimburse Executive for medical expenses incurred after the Resignation Date under any agreement or
arrangement that was applicable solely to Executive. Stacey Lamendola shall provide Executive with
the requisite forms and explain to Executive his options under the qualified plans and in respect
of COBRA continuation coverage. Within 30 days following the Resignation Date, the Company shall
cause title to the Company car that was made available for his use on September 1, 2009 to be
transferred to Executive without Executive having to pay the book value for such transfer. Unless
the Company shall otherwise determine, in its discretion, the Company shall not reimburse Executive
or otherwise be liable for any expenses related to the maintenance or repair of such vehicle that
have not previously been paid. The Company shall have no responsibility in respect of any car
Executive commissioned to be purchased on or after September 1, 2009.

6. Expenses. Except as expressly provided in Section 5, all expenses reasonably
incurred by Executive through the Resignation Date and submitted to the Company within 30 days of
the Resignation Date shall be subject to reimbursement in
accordance with the Company’s generally applicable policies, subject to appropriate
documentation and review.

 

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7. Attorney’s Fees. The Company shall make a payment of $250,000 to the law Firm of
McCarter and English, LLP, by wire transfer to the account previously identified to the Company, on
or before the payment is made for Executive’s WPCI interests, as specified in Section 4, in respect
of Executive’s fees and expenses incurred in connection with the negotiation and execution of this
Agreement. Except as provided in this Section 7, the Company shall have no duty or obligation to
reimburse Executive, or otherwise be liable for. any other legal, financial or other personal
expenses of Executive.

8. Nondisparagement. Executive shall not make any statements, directly or indirectly,
to any third party (other than his spouse and attorneys, who must agree not to repeat such
statements) that are intended to, or could reasonably be expected to, damage the business or
reputation any of the Company Entities or any of its subsidiaries or affiliates (including, without
limitation, any CPA Entity), or any other organization associated with any of the Company Entities
or having as part of its name the name “Carey” or “W.P. Carey” or any of their respective officers,
directors, shareholders, partners, principals, employees, counsel or agents, whether in their
official or individual capacities. The Company and the Specified Officers (as defined below) shall
not (and shall cause its subsidiaries, including, without limitation, WPCI not to) make any
statements, directly or indirectly, to any third party (other than to its attorneys, who must agree
not to repeat such statements) that are intended to, or could reasonably be expected to, damage
Executive’s business or reputation, whether personally or professionally. The Specified Officers
shall mean, with respect to the Company, Wm. Polk Carey, Gordon F. DuGan, and Mark J. DeCesaris,
and with respect to WPCI, Jan Karst. The Company and WPCI shall each also use commercially
reasonable efforts to cause its other officers and directors to refrain from making any statements,
directly or indirectly, that would or could reasonably be expected to damage Executive’s business
or reputation, whether personally or professionally. The parties hereto agree that Executive’s
departure from the Company Entities shall be communicated to third parties, including in any
required filing with the SEC or in any other filings required at law or regulation or pursuant to
the rules of any self-regulating organization, in a manner consistent with Schedule A attached
hereto. Nothing in this Section 8 shall be interpreted, however, to preclude either party (or, in
the case of the Company, its subsidiaries, officers and directors) from making any truthful
statements about the other to the extent required by applicable law or regulation, in connection
with any litigation (regardless of whether between the parties) or in the course of any regulatory
or administrative inquiry, review or investigation.

 

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9. Non-Competition. During the three month period commencing on the date hereof,
Executive shall not, without the written consent of the Company, directly or indirectly, as a
stockholder owning beneficially or of record more than 5% of the outstanding shares of any class of
stock of any issuer, or as an officer, director, employee,
Executive, consultant, joint venturer, proprietor, or otherwise, engage in or become interested in
any Competing Business in the United States, United Kingdom, France or in any other jurisdiction in
which the Company is actively engaged in business or with respect to which, at the date hereof, the
Company had taken material steps toward becoming actively engaged in such business. For purpose of
this Agreement, the term “Competing Business” shall mean any business which is engaged in (i) the
business of structuring, obtaining the financing for, or otherwise implementing or facilitating
long-term financing of corporate property using leasing arrangements (“Leasing Transactions”) or
(ii) any other business activity in which Executive personally participated (other than solely in
an administrative capacity with respect to matters for which Executive had no material
responsibility) during the 12 month ended on the date of this Agreement of a type and kind that, at
the relevant time, is conducted by the Company and which accounts for ten percent (10%) or more of
either the Company’s gross revenues or net after tax income (“Other Material Activities”); provided
that nothing in this Agreement shall preclude Executive from providing services to any Competing
Business so long as such services do not relate, directly or indirectly, to Leasing Transactions or
Other Material Activities. Without limiting the generality of the foregoing, Executive
acknowledges and agrees that the Company is engaged in business in each state of the United States
and in the entirety of the United Kingdom and France. The Company and Executive acknowledge and
agree that the provisions of this Section 9 are intended to protect the legitimate business
interests of the Company and not to restrain the ability of Executive to obtain gainful employment.
The Company agrees that this Section 9 should not be interpreted to preclude Executive from raising
capital or seeking to structure or effect financial transactions in respect of investments of a
type or nature not undertaken by the Company and its affiliates, even if such other investments
compete for investment funds from the same sources of funds as the Company looks to for its
transactions (e.g., this Section 9 will not preclude Executive from participating in the structure,
financing or implementation of a venture capital fund or mezzanine debt fund, even if the potential
investors in such funds include some or all of the same persons or entities as would generally
invest in a transaction sponsored or promoted by the Company). For avoidance of doubt, nothing
herein shall preclude the Executive, during the three month period commencing on the date hereof,
from exploring business opportunities of a competitive nature provided only that he not actually
engage in such competitive business activities during the three month period. Notwithstanding the
immediately preceding sentence, Executive agrees to not attempt to establish a commercial
arrangement with Ameriprise during the three-month period during which this Section 9 is applicable
without the prior written consent of the Company.

 

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10. Confidential Information. Except as may be compelled by judicial or
administrative subpoena, Executive shall not, without the written consent of the Company, use for
his personal benefit, or disclose, communicate or divulge to, or use for any person other than the
Company or its subsidiaries or affiliates, any Confidential Information (as defined below) that had
been made known to Executive or learned or
acquired by Executive while in the employ of, or while providing services to, the Company,
WPCI or any of their subsidiaries or affiliates, unless such information has become public other
than by reason of Executive’s breach of this covenant. Confidential Information shall mean:

(i) information not in the public domain (or in the public domain as a result of a breach
by Executive or another executive of the Company, WPCI or any of their subsidiaries or
affiliates who is also bound by a similar confidentiality clause) regarding the business
methods, business policies, procedures, techniques, research or developments projects or
results, trade secrets, or other processes of or developed by the Company, WPCI or any of
their subsidiaries or affiliates;

(ii) any names and addresses of customers or clients or any data on or relating to past,
present or prospective customers or clients not in the public domain (or in the public
domain as a result of a breach by Executive or another executive of the Company, WPCI or
any of their subsidiaries or affiliates who is also bound by a similar confidentiality
clause); and

(iii) any other material information not in the public domain (or in the public domain as a
result of a breach by Executive or another executive of the Company who is also bound by a
similar confidentiality clause) relating to or dealing with the business operations or
activities of the Company, WPCI or any of their subsidiaries or affiliates which has been
designated by the Company as confidential or which, if disclosed to any third party, could
reasonably be expected to result in a material adverse effect to the Company, WPCI or any
of their subsidiaries or affiliates.

11. Nonsolicitation of Employees. Executive agrees that for a period of two years
after the termination of his service with the Company Entities, he will not and will not assist or
encourage any other person to (i) employ, hire, engage or become associated with (as a
shareholder, partner, employee, consultant or in a similar capacity) any employee, partner or other
person connected with the Company who rendered services as a professional, including, without
limitation, all persons who provide direct and substantial services with respect to Leasing
Transactions or any business or type that constitutes an Other Material Activity, regardless of
whether Section 9 restricts Executive’s ability to compete in activity (the “Restricted
Employees”), at the time of such termination or during any part of the six months (three months, in
the case of any employee who was not also an officer of the Company or WPCI) preceding such
termination of service, (ii) induce any Restricted Employees to leave the employ of any Company
Entity or any of its affiliates, or (iii) solicit the employment of any Restricted Employees on his
own behalf or on behalf of any other business enterprise. The Company shall, upon request from
Executive, determine whether to waive the restrictions under this Section 11 as to any Restricted
Employee who was an any officer of the Company and/or WPCI who has ceased to be employed by the
Company for a period of
six months and as to any other Restricted Employee who has ceased to be employed by the Company
and/or WPCI for a period of three months.

 

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12. Injunctive Relief. Executive agrees and acknowledges that the remedies at law for
any breach by him of the provisions of Sections 8, 9, 10 and 11 may be inadequate and that the
Company and/or WPCI shall be entitled to seek injunctive relief against him from a court of
competent jurisdiction in the event of any such breach. Similarly, the Company and WPCI each agree
and acknowledge that the remedies at law for any breach by it of its covenants in Section 8 may be
inadequate and that Executive shall be entitled to seek injunctive relief against it from a court
of competent jurisdiction in the event of any such breach If any such court of competent
jurisdiction shall determine that the restrictions contained in any such Section are unreasonable
as to scope, time or geographical area, such court shall reform said restrictions to the extent
necessary in the opinion of such court to make them reasonable and enforceable.

13. Acknowledgments and Releases. Executive hereby agrees and acknowledges that,
subject to payment of the amounts expressly provided for or referenced in this Agreement, he will
have received full payment for all services rendered on behalf of the Company, WPCI and their
respective affiliates. In consideration of the Company’s commitments pursuant to Sections 4 and 7,
and the Company’s Release (as defined below), Executive shall execute, on the Resignation Date, the
release attached hereto as Exhibit B (“Executive’s Release”). Executive’s Release shall pertain to
any and all claims that Executive may now have or may hereafter have against any of the Company
Entities or any of its predecessors (including, without limitation, W.P. Carey & Co., Inc), arising
out of or in connection with Executive’s employment with, or service as an officer, member, partner
or director of, any such entity (including, without limitation, Executive’s assertion of the right
to terminate employment for Good Reason under his Employment Agreement), other than any claim for
the payments or benefits to be provided to Executive under or in accordance with the terms of this
Agreement (including any claim for indemnification or other similar rights as specified in Section
16 hereof). Subject to Executive’s execution of Executive’s Release, each of the Company and WPCI
shall execute the release attached hereto as Exhibit C (the “Company Release”). The Company
Release shall pertain to any and all claims that the Company and WPCI may now have or may hereafter
have against Executive or any of his successors or assigns arising out of or in connection with
Executive’s employment with, or service as an officer, member, partner or director of, any Company
Entity, including, but not limited to, any claims which have been made or may be made in the
future by any employee of the Company against Executive arising out of actions or omissions by
Executive during the period he was employed by the Company.

 

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14. Cooperation and Assistance. Subject to and consistent with past practice,
Executive shall promptly execute and approve such documents (including financial statements)
pertaining to the business and operations of Company, WPCI and each of the
Company Entities during periods prior to the Resignation Date while he has an officer,
employee or director of any such entity, as the Company or WPCI shall request (i) in the case of
the Company and any other US entity, within 90 days of the Resignation Date and (ii) in the case of
any foreign entity, prior to the first anniversary of the Resignation Date. Executive shall also
cooperate with and assist the Company and WPCI in connection with any litigation or investigation
of the Company or WPCI pertaining to matters arising during Executive’s employment. The assistance
to be provided pursuant to the immediately preceding sentence (the “Litigation Assistance”) shall
be on a reasonable and customary basis, and shall not extend beyond that which is reasonably
necessary and appropriate under the circumstances with respect to the matter in litigation or under
investigation. The Company and WPCI agree that one or the other entity will reimburse Executive
for any out-of-pocket expenses reasonably incurred in connection with such Litigation Assistance,
so long as such expenses are otherwise reimbursable in accordance with the generally applicable
policies of the Company or WPCI, as applicable. In seeking Executive’s help in respect to
Litigation Assistance, the Company and WPCI shall make all reasonable accommodation for Executive’s
business and personal commitments.

15. Withholding. All payments to be made or benefits to be provided to Executive in
accordance with this Agreement (other than the amounts payable to Executive for the reimbursement
of business expenses actually incurred) are in consideration of the performance of his services as
an employee of the Company and shall be made net of all applicable income and employment taxes
required to be withheld from such payments, which may be deducted from such payments or from other
payments made hereunder. Notwithstanding the foregoing, the payment made to Executive in
consideration of his interests in WPCI pursuant to Section 4 hereof are made in consideration of
his ownership rights in WPCI, are not compensatory and are not subject to withholding in accordance
with this Section 15.

16. Indemnification. The Company and WPCI each agree to indemnify and hold Executive
harmless from and against any claim, loss or cause of action arising from or out of Executive’s
performance of services as an officer, director, member, partner or employee of any Company Entity,
including, without limitation, any claim by any CPA Entity or any other entity to which Executive
provided services at the direction of the Company or any claim by an employee of the Company or
WPCI, in accordance with the provisions of the applicable limited liability company agreement and
by-laws, as in effect from time to time. The Company further agrees that it shall indemnify,
defend and hold harmless Executive with respect to his services as an officer, director, partner,
member or employee of the Company, WPCI and their respective subsidiaries in a manner no less
favorable to Executive than is generally applicable to former officers, directors, partners,
members and employees of each such entity, and shall extend to Executive any rights and coverage
under any director and officer liability insurance coverage to the same extent
such coverage is generally made available to such former officers, directors and employees.

 

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17. Notices. Except as otherwise explicitly provided in this Agreement, any notice
provided hereunder will be deemed to be given when delivered in writing by hand or sent overnight
courier. All notices to the Company or WPCI will be marked confidential and addressed to:

Paul Marcotrigiano, Esq.

Chief Legal Officer

W.P. Carey & Co., LLC

50 Rockefeller Plaza

New York New York 10020

with a copy to:

Lawrence K. Cagney

Debevoise & Plimpton LLP

919 Third Avenue

New York, New York 10022.

All notices to Executive will be addressed to the most recent address for Executive reflected in
the Company’s records (or such other address as Executive may from time to time specify to the
Company in accordance with this notice provision), with a copy to:

Daniel A. Pollack, Esq.

McCarter & English LLP

245 Park Avenue

New York, New York 10167

18. Miscellaneous. This Agreement supersedes and extinguishes the Employment
Agreement (as that term is defined in the Whereas clause hereto) in all respects. The Company and
WPCI each hereby represent and warrant to Executive that it has been duly authorized to enter into
this Agreement. The Company also represents and warrants that the purchase by the Company of the
WPCI interests described in Section 4 has been approved by the Compensation Committee of its Board
of Directors, pursuant to an express delegation of authority from the Board. This Agreement may be
amended only by a written instrument signed by the Company, WPCI and Executive. Except with
respect to the equity compensation plans and agreements referenced in Section 3 and the employee
benefit plans, policies and arrangements that are referenced in Section 5 hereof (under which
Executive’s rights and entitlements shall be determined in accordance with such Sections), this
Agreement shall constitute the entire agreement between the Company and Executive with respect to
the subject matter hereof. This Agreement shall be governed by the laws of the State of New York,
other than the provisions thereof
relating to conflict of laws. This Agreement shall be binding upon and inure to the benefit
of the parties hereto and their respective successors, heirs, executors, administrators (in the
case of Executive) and assigns. In the event that any one or more of the provisions of this
Agreement shall be or become invalid, illegal or unenforceable
in any respect, the validity, legality or enforceability of the remaining provisions of this
Agreement shall not be affected thereby. This Agreement may be executed in counterparts, each of
which shall be deemed an original but all of which together shall constitute one and the same
instrument.

 

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IN WITNESS WHEREOF, the parties have executed this AGREEMENT effective as of the day first
written above.

	 	 	 	 	 
	 	W.P. CAREY & CO., LLC

 	 
	 	By:  	/s/ M. J. DeCesaris
 	 
	 	 	Title: Acting Chief Financial Officer 	 
	 	 	 
	 	W. P. CAREY INTERNATIONAL LLC 	 
	 
	 	 	 
	 	By:  	/s/ Jan Karst
 	 
	 	 	Title: Chief Operating Officer 	 
	 	 	 	 
	 
	 	EDWARD LAPUMA

 	 
	 	/s/ Edward v. LaPuma
 	 
	 	 	 
	 	 	 
	 

 

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Schedule A

Mutually Agreed Statement

(1) Edward V. LaPuma, Managing Director and Head of International Investments of W.P. Carey LLC
(the “Company”), and President of W. P. Carey International LLC (“WPCI”), resigned from the
Company, WPCI, and all affiliated entities effective as of December 24, 2009 pursuant to a mutually
agreed separation.

(2) As part of this separation, the Company effected the purchase of Mr. LaPuma’s substantial
minority interest in WPCI, for cash, at a negotiated fair market value of $15,380,000.

(3) Mr. LaPuma joined the Company as an Assistant to the Chairman in July 1994, where he helped
establish the firm’s institutional department and as a result became President of Carey
Institutional Properties (“CIP”). Over his 15 year tenure with the Company, he served in various
positions with increasing responsibilities. When he moved to the investment team, Mr. LaPuma
participated in negotiating and structuring in excess of $1.5 billion dollars of sale and leaseback
transactions across the United States. Mr. LaPuma then played a key role in establishing and
developing WPCI. As President of WPCI for over six years, Mr. LaPuma participated in the
negotiation and structuring of in excess of $2 billion dollars of sale and leaseback transactions
in 11 countries. Mr. LaPuma also served as President of CPA: 14.

 

1exv10w6w2

Exhibit 10.6.2

LSI CORPORATION

NONQUALIFIED STOCK OPTION AGREEMENT

     On the grant date (the “Grant Date”) shown on the attached Notice of Grant of Stock Option
(the “Notice of Grant”), LSI Corporation granted you a Nonqualified Stock Option under the LSI
Corporation 2003 Equity Incentive Plan (the “Plan”) covering the number of shares of LSI common
stock indicated on the Notice of Grant. The Notice of Grant and this agreement collectively are
referred to as the “Agreement”. Capitalized terms that are not defined in this agreement or the
Notice of Grant have the same meaning as in the Plan.

     1. Grant of Option. LSI has granted you a nonqualified stock option to purchase, on the terms
set forth in this Agreement and the Plan, all or any part of the Number of Shares shown on the
Notice of Grant. The option is a separate incentive in connection with your employment and is not
in lieu of any salary or other compensation for your services. The option is not an incentive stock
option as defined in Section 422 of the Internal Revenue Code.

     2. Exercise Price. The price per Share at which you can purchase LSI common stock under this
option (the “Exercise Price”) is the Exercise Price shown on the Notice of Grant.

     3. When the Option Becomes Exercisable. Except as otherwise provided in this Agreement, the
option becomes exercisable with respect to the numbers of Shares and on the dates shown on the
Notice of Grant. You may not exercise any portion of your option that is not exercisable. Your
right to exercise the option will terminate on the Expiration Date shown on the Notice of Grant or
earlier if provided in this Agreement or in the Plan.

     4. Effect of Your Termination of Service.

     (a) Termination of Employment. Except as provided in paragraph 4(b) or 4(c), if you
have a Termination of Service for any reason, your right to exercise any portion of your option
that is exercisable when your employment ends will terminate 90 days after the date of your
Termination of Service or, if earlier, the Expiration Date shown on the Notice of Grant.

     (b) Death or Disability. If you have a Termination of Service because you die or
become totally disabled, any portion of your option that was exercisable on the date of your
Termination of Service will remain exercisable until the earlier of 12 months from that date and
the Expiration Date shown on the Notice of Grant.

     (c) Discharge for Misconduct. If you have a Termination of Service because of your
Misconduct (as defined below), your right to exercise this option will terminate immediately when
your employment ends. “Misconduct” means (i) willful breach or neglect of duty; (ii) failure or
refusal to work or to comply with LSI’s rules, policies, or practices; (iii) dishonesty; (iv)
insubordination; (v) being under the influence of drugs (except to the extent medically prescribed)
while on duty or on LSI premises (or those of an Affiliate); (vi) conduct endangering, or likely to
endanger the health or safety of another employee, any other person or the property of LSI or an
Affiliate; (vii) your violation of LSI’s Standards of Business Conduct, or (viii) conviction of, or
plea of nolo contendere to, a felony.

 

 

     (d) A leave of absence or an interruption in service (including an interruption during
military service) authorized or acknowledged by LSI or the Affiliate employing you will not be
deemed a Termination of Service.

     5. Who Can Exercise the Option. Except as otherwise determined by the Committee in its sole
discretion, during your lifetime, only you can exercise your option.

     6. Your Option is Not Transferable. Except as otherwise provided in this Agreement, you may
not sell, transfer, pledge, assign, hypothecate or otherwise dispose of your option or your rights
under this Agreement (whether by operation of law or otherwise) and your option shall not be
subject to sale under execution, attachment or similar process. Upon any attempt to sell,
transfer, pledge, assign, hypothecate or otherwise dispose of your option, or of any rights under
this Agreement, or upon any attempted sale under any execution, attachment or similar process, your
option will terminate immediately.

     7. Exercise Procedure. To exercise this option, you must give notice of exercise and pay the
exercise price in such form and at such, time, place and/or manner as LSI may designate. When LSI
deems it necessary or desirable for regulatory reasons, LSI may require that when you exercise this
option, you must simultaneously sell the shares you purchase.

     8. Tax Withholding and Payment Obligations. If LSI determines that it and/or an Affiliate will
withhold or collect any Tax Obligations as a result of your option, you must make arrangements
satisfactory to LSI to satisfy all withholding and/or collection requirements and you may not
exercise this option until you do so. You acknowledge that you have the ultimate liability for any
and all Tax Obligations imposed on you and that LSI and any Affiliate that employs you (a) make no
representations or undertaking regarding treatment of those Tax Obligations; and (b) do not commit
to take any action to reduce or eliminate your liability for Tax Obligations. To the maximum extent
permitted by law, LSI and any Affiliate that employs you have the right to retain without notice
from salary or other amounts payable to you, amounts sufficient to satisfy any Tax Obligations that
LSI determines has not or cannot be satisfied through other means. By [signing the Notice of Grant]
[accepting this Award], you expressly consent to any additional cash withholding under this
paragraph 8.

     9. Agreement Not To Solicit LSI Employees. You agree that, without LSI’s prior written
consent, you will not solicit (or induce or encourage others to solicit) any employee of LSI or any
Subsidiary to leave their employment with LSI or any Subsidiary. This agreement applies both while
you are employed by LSI or any Subsidiary and for a period of 12 months after your employment with
LSI or any Subsidiary ends, and is in addition to your separately enforceable obligations under
existing intellectual property and non-disclosure agreements, and under common law. You and LSI
agree that the precise amount of damages LSI will experience if you violate your agreement in the
first sentence of this paragraph 9 would be impracticable or extremely difficult to calculate or
prove, and that $125,000 (the “Liquidated Damages”) constitutes a best estimate of those damages
for each employee solicited or induced. You agree that, if you violate your agreement in the first
sentence of this paragraph 9, for each employee solicited or induced, at LSI’s election: (i) you
will pay the Liquidated Damages amount to LSI within 45 days of LSI’s written request; or (ii) LSI
may cancel any unexercised portion of this Option and/or any other options to purchase LSI Shares
you hold, and you will pay to LSI any remaining portion of the Liquidated Damages amount within 45
days of LSI’s written request. The value of any options that LSI so cancels may not exceed the
Liquidated Damages amount multiplied by the number of employees solicited or induced. LSI will
calculate that value on the cancellation date using the valuation methodology it then uses for
financial reporting purposes.

     10. Suspension of Exercisability.

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     (a) If at any time LSI determines that the listing, registration or qualification of the
Shares upon any securities exchange or under any state, federal or foreign law, or the consent or
approval of any governmental regulatory authority, is necessary or desirable as a condition of the
purchase of Shares hereunder, this option may not be exercised, in whole or in part, unless and
until such listing, registration, qualification, consent or approval shall have been effected or
obtained free of any conditions not acceptable to LSI. LSI shall make reasonable efforts to meet
the requirements of any such state, federal or foreign law or securities exchange and to obtain any
such consent or approval of any such governmental authority.

     (b) LSI may designate times when you cannot exercise this option in connection with corporate
events such as a stock split, reverse stock split, reclassification, spin-off, merger or
change-in-control transaction. If the option is scheduled to expire during one of those periods,
you will need to exercise the option before that period begins.

     11. No Rights of Stockholder. You will not have any of the rights of a stockholder of LSI in
respect of any of the Shares issuable upon exercise of this option until those Shares are delivered
to you or deposited in your account at LSI’s designated broker.

     12. No Effect on Employment or Future Awards.

     (a) Your employment with LSI or one of its Affiliates is on an at-will basis only, subject to
applicable law and the terms of any employment agreement you may have with LSI or an Affiliate.
Nothing in this Agreement or the Plan is intended to give you any right to continue to be employed
by LSI or any Affiliate or to interfere with or restrict in any way the right of LSI or the
Affiliate to terminate your employment at any time for any reason whatsoever, with or without good
cause.

     (b) LSI does not intend by granting this option to you to confer upon you the right to be
selected to receive any future Award under the Plan.

     13. Address for Notices. Any notice to be given to LSI under this Agreement must be in
writing and addressed to LSI Corporation, Attn: Stock Administration Department, Mailstop D-206,
1621 Barber Lane, Milpitas, CA 95035, or such other address as LSI may designate in writing.

     14. Maximum Term of Option. Notwithstanding any other provision of this Agreement, this
option is not exercisable after the Expiration Date.

     15. Plan Governs. In the event of a conflict between this Agreement and the Plan, the Plan
will govern.

     16. Captions. The captions in this Agreement are for convenience only and are not to serve as
a basis for the interpretation or construction of this Agreement.

     17. Agreement Severable. If any provision in this Agreement is held invalid or unenforceable,
that invalidity or unenforceability will not be construed to have any effect on the remaining
provisions of this Agreement.

     18. Modifications. This Agreement constitutes the entire understanding of the parties on the
subjects covered. Modifications to this Agreement can be made only in writing by an authorized
officer of LSI.

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     19. Governing Law. This Agreement is governed by the laws of the state of Delaware, United
States, without regard to principles of conflict of laws.

     20. Electronic Delivery. LSI may, in its sole discretion, deliver any documents related to
this Award, including materials relating to its Annual Meeting of Stockholders, by electronic means
or request your consent to participate in the Plan by electronic means. You hereby consent to
receive such documents by electronic delivery and agree to participate in the Plan through any
on-line or electronic system established and maintained by LSI or another third party designated by
LSI.

     21. Committee Actions. All actions taken and all interpretations and determinations made by
the Board or its delegate will be final and binding on you, LSI and all other interested persons.
No member of the Board and no delegate will have any personal liability for any action,
determination or interpretation made with respect to the Plan or this Agreement.

     Paragraphs 22 through 24 below apply only if you are employed by a subsidiary of LSI outside
the United States.

     22. Acknowledgment and Waiver. By [signing the Notice of Grant] [accepting this Award], you
agree that:

	 	(a)	 	Your participation in the Plan is voluntary.
	 
	 	(b)	 	Your option is not part of your normal or expected compensation or
salary for any purpose, including, but not limited to, calculating any termination,
severance, resignation, redundancy, or end of service payments, bonuses,
long-service awards, pension or retirement benefits, or similar payments, except as
may be specifically provided for by the applicable plan or agreement.
	 
	 	(c)	 	The future value of the Shares subject to your option is unknown and
cannot be predicted. It is possible that you will not make any money from this
option.
	 
	 	(d)	 	This option does not create an employment relationship between you and
any entity.
	 
	 	(e)	 	You have no right to make a claim of entitlement to compensation or
damages because of the expiration or termination this option, or any diminution in
value of the option, or Shares purchased under the Plan. If it should be determined
that you did acquire any such rights, you irrevocably agree to release LSI and its
Affiliates, officers and employees from any such claim to the extent permitted by
applicable law.

     23. Data Privacy.

	 	(a)	 	You understand that LSI may hold certain personal information about
you, including but not limited to your name, home address and telephone number,
date of birth, social security number or other identification number, salary,
nationality, job title, any shares or directorships held in LSI, details of all
options or any other entitlements to shares awarded,
canceled, purchased, or outstanding in your favor, for the purpose of implementing,
administering and managing the Plan (“Personal Data”);
	 
	 	(b)	 	You consent to the collection, use, processing, and transfer, in
electronic or other form, of Personal Data by LSI and its Affiliates for the
exclusive

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	 	 	 	purpose of implementing, administering or managing your participation in
the Plan and to the extent required in connection with LSI’s financial reporting.
	 
	 	(c)	 	You understand that Personal Data may be transferred to any third
parties assisting LSI in the administration of the Plan or involved in LSI’s
financial reporting.
	 
	 	(d)	 	You understand that the recipients of Personal Data may be located
outside your country of residence, and that the recipient’s country may have
different data privacy laws and protections than your country of residence.
	 
	 	(e)	 	You authorize the recipients to receive, possess, use, retain and
transfer the Personal Data, in electronic or other form, for the purposes of
implementing, administering or managing your participation in the Plan, including
any transfer of Personal Data as may be required for the administration of the Plan
and/or any subsequent transfer of Shares to your account at a brokerage firm and in
connection with LSI’s financial reporting.
	 
	 	(f)	 	You understand that Personal Data will be held only as long as
necessary to implement, administer or manage your participation in the Plan.
	 
	 	(g)	 	You understand that you may, at any time, review the Personal Data,
require any necessary amendments to Personal Data or withdraw the consents herein
in writing by contacting LSI.
	 
	 	(h)	 	You understand that withdrawing your consent may affect your ability to
participate in the Plan.

     24. Translation. If this Agreement or any other document related to the Plan is translated
into a language other than English, and if the translated version is different from the English
language version, the English language version will take precedence.

     [Insert the remainder of the document for options awarded to the ELT and the Corporate
Controller:] 25. Acceptance of LSI Policy on Recoupment of Compensation. By [signing the Notice of
Grant] [accepting this Award], you agree to comply with the LSI Policy on Recoupment of
Compensation attached hereto.

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LSI Corporation

Policy on Recoupment of Compensation

Last revised: February 10, 2010

Policy Statement

     Each “covered individual” must, if requested by the Compensation Committee, repay or return
“covered payments” in the event that the company issues a material restatement of its financial
statements, where the restatement is caused, in whole or in part, by such individual’s intentional
misconduct.

Definitions

     “covered individual” means each member of the company’s executive leadership team, as well as
the company’s corporate controller.

     “covered payments” means cash bonuses paid after the date of adoption of this policy and stock
options, restricted stock units and any other equity-based awards granted under any stock-based
plan maintained by the company.

     “covered period” means the period beginning on the day the financial statements that must be
restated, or financial results for the latest period covered by such financial statement, are first
made public, whether by press release or filing with the Securities and Exchange Commission, and
ending on the date that the restated financial statements are first filed with the Securities and
Exchange Commission.

Additional Terms

     The Committee anticipates determining the amount that it will recoup in accordance with the
following principles:

	 	•	 	Cash bonuses: The portion of any bonus previously paid to a covered individual that
would not have been paid if the company’s financial results had been as reported in the
restatement, excluding the amount of taxes the Committee believes to be payable by the
covered individual in connection with the bonus, will be subject to recoupment. Bonuses
shall not be subject to recoupment if they were paid more than five years prior to the
date on which the company determined that it would be necessary or appropriate to
restate its financial statements.
	 
	 	•	 	Stock options and stock appreciation rights:

	 	•	 	Any awards outstanding at the time the Board or a committee of the Board
determines that a restatement is necessary or appropriate, as well as any awards
granted after such time but before a determination is made as to

 

 

	 	 	 	whether the covered individual’s intentional wrongdoing contributed to the need to restate the
financial statements, will be canceled.
	 
	 	•	 	The net amount realized from any award exercised during the covered period will
be subject to recoupment. The net amount will be determined as the amount
receivable by the covered individual upon exercise of the award, less applicable
commissions and fees and the amount of taxes the Committee believes to be payable
by the covered individual in connection with the exercise of the award.
	 
	 	•	 	If the covered individual retains any shares after exercising a stock option
during the covered period, the Committee may require those shares to be returned.
In determining the number of shares it will require to be returned, the Committee
may take into account its estimate of the covered individual’s tax liability in
connection with the award and the company’s tax withholding in connection with the
award.

	 	•	 	Restricted stock units and similar awards:

	 	•	 	Any awards outstanding at the time the Board or a committee of the Board
determines that a restatement is necessary or appropriate, as well as any awards
granted after such time but before a determination is made as to whether the
covered individual’s intentional wrongdoing contributed to the need to restate the
financial statements, will be canceled.
	 
	 	•	 	For any awards that vested during the covered period:

	 	•	 	If the covered individual still holds any of the vested shares, those
 shares will be subject to recoupment.
	 
	 	•	 	If the shares were sold, the proceeds of the sale, net of commissions
and fees, will be subject to recoupment.
	 
	 	•	 	In determining the amounts subject to recoupment under the two preceding
bullets, the Committee may take into account its estimate of the covered
individual’s tax liability in connection with the award and the company’s
tax withholding in connection with the award.

	 	•	 	If the company pays dividends on its common stock, the Committee may seek additional
recoupment based on the dividends paid or payable during the covered period.
	 
	 	•	 	If cash is to be recouped, the Committee may require the payment of interest on the
amount thereof from the date the cash was originally paid to or received by the covered
individual until the date of repayment.
	 
	 	•	 	The Committee will have discretion to determine a different amount to be recouped if
believes it to be appropriate under the circumstances.
	 
	 	•	 	Recoupment will not be required if the restatement occurred following a change in
control of LSI.

-2-

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