Document:

EXHIBIT
10.2

 

 

TYCO ELECTRONICS
LTD.

 

 

CHANGE IN
CONTROL SEVERANCE PLAN FOR CERTAIN

U.S.
OFFICERS AND EXECUTIVES

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
  BACKGROUND, PURPOSE AND TERM OF PLAN

  	
  1

  
	
   

  	
   

  	
   

  
	
  Section 1.01

  	
  Purpose of the Plan

  	
  1

  
	
   

  	
   

  	
   

  
	
  Section 1.02

  	
  Term of the Plan

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  DEFINITIONS

  	
  2

  
	
   

  	
   

  	
   

  
	
  Section 2.01

  	
  “Annual Bonus”

  	
  2

  
	
   

  	
   

  	
   

  
	
  Section 2.02

  	
  “Base Salary”

  	
  2

  
	
   

  	
   

  	
   

  
	
  Section 2.03

  	
  “Board”

  	
  2

  
	
   

  	
   

  	
   

  
	
  Section 2.04

  	
  “Cause”

  	
  2

  
	
   

  	
   

  	
   

  
	
  Section 2.05

  	
  “Change in Control”

  	
  2

  
	
   

  	
   

  	
   

  
	
  Section 2.06

  	
  “Change in Control Termination”

  	
  3

  
	
   

  	
   

  	
   

  
	
  Section 2.07

  	
  “COBRA”

  	
  3

  
	
   

  	
   

  	
   

  
	
  Section 2.08

  	
  “Code”

  	
  3

  
	
   

  	
   

  	
   

  
	
  Section 2.09

  	
  “Committee”

  	
  3

  
	
   

  	
   

  	
   

  
	
  Section 2.10

  	
  “Company”

  	
  3

  
	
   

  	
   

  	
   

  
	
  Section 2.11

  	
  “Effective Date”

  	
  3

  
	
   

  	
   

  	
   

  
	
  Section 2.12

  	
  “Eligible Employee”

  	
  3

  
	
   

  	
   

  	
   

  
	
  Section 2.13

  	
  “Employee”

  	
  3

  
	
   

  	
   

  	
   

  
	
  Section 2.14

  	
  “Employer”

  	
  4

  
	
   

  	
   

  	
   

  
	
  Section 2.15

  	
  “ERISA”

  	
  4

  
	
   

  	
   

  	
   

  
	
  Section 2.16

  	
  “Exchange Act”

  	
  4

  
	
   

  	
   

  	
   

  
	
  Section 2.17

  	
  “Executive Severance Plan”

  	
  4

  
	
   

  	
   

  	
   

  
	
  Section 2.18

  	
  “Good Reason Resignation”

  	
  4

  
	
   

  	
   

  	
   

  
	
  Section 2.19

  	
  “Involuntary Termination”

  	
  5

  
	
   

  	
   

  	
   

  
	
  Section 2.20

  	
  “Notice Pay”

  	
  5

  
	
   

  	
   

  	
   

  
	
  Section 2.21

  	
  “Officer”

  	
  5

  
	
   

  	
   

  	
   

  
	
  Section 2.22

  	
  “Participant”

  	
  5

  
	
   

  	
   

  	
   

  
	
  Section 2.23

  	
  “Permanent Disability”

  	
  5

  
	
   

  	
   

  	
   

  
	
  Section 2.24

  	
  “Plan”

  	
  5

  
	
   

  	
   

  	
   

  
	
  Section 2.25

  	
  “Plan Administrator”

  	
  5

  
	
   

  	
   

  	
   

  
	
  Section 2.26

  	
  “Potential Change in Control”

  	
  5

  
				

 

i

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Section 2.27

  	
  “Release”

  	
  6

  
	
   

  	
   

  	
   

  
	
  Section 2.28

  	
  “Severance Benefit”

  	
  7

  
	
   

  	
   

  	
   

  
	
  Section 2.29

  	
  “Severance Period”

  	
  7

  
	
   

  	
   

  	
   

  
	
  Section 2.30

  	
  “Subsidiary”

  	
  7

  
	
   

  	
   

  	
   

  
	
  Section 2.31

  	
  “Successor”

  	
  7

  
	
   

  	
   

  	
   

  
	
  Section 2.32

  	
  “Termination Date”

  	
  7

  
	
   

  	
   

  	
   

  
	
  Section 2.33

  	
  “Voluntary Resignation”

  	
  7

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  PARTICIPATION AND ELIGIBILITY FOR BENEFITS

  	
  8

  
	
   

  	
   

  	
   

  
	
  Section 3.01

  	
  Participation

  	
  8

  
	
   

  	
   

  	
   

  
	
  Section 3.02

  	
  Conditions

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  DETERMINATION OF SEVERANCE BENEFITS

  	
  10

  
	
   

  	
   

  	
   

  
	
  Section 4.01

  	
  Amount of Severance Benefits Upon Involuntary
  Termination and Good Reason Resignation

  	
  10

  
	
   

  	
   

  	
   

  
	
  Section 4.02

  	
  Voluntary Resignation; Termination for Death or
  Permanent Disability

  	
  12

  
	
   

  	
   

  	
   

  
	
  Section 4.03

  	
  Termination for Cause

  	
  12

  
	
   

  	
   

  	
   

  
	
  Section 4.04

  	
  Reduction of Severance Benefits

  	
  12

  
	
   

  	
   

  	
   

  
	
  Section 4.05

  	
  Non-Duplication of Benefits

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  METHOD, DURATION AND LIMITATION OF SEVERANCE
  BENEFIT PAYMENTS

  	
  14

  
	
   

  	
   

  	
   

  
	
  Section 5.01

  	
  Method of Payment

  	
  14

  
	
   

  	
   

  	
   

  
	
  Section 5.02

  	
  Other Arrangements

  	
  14

  
	
   

  	
   

  	
   

  
	
  Section 5.03

  	
  Termination of Eligibility for Benefits

  	
  14

  
	
   

  	
   

  	
   

  
	
  Section 5.04

  	
  Limitation on Benefits

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  CONFIDENTIALITY AND NON-DISPARAGEMENT

  	
  16

  
	
   

  	
   

  	
   

  
	
  Section 6.01

  	
  Confidential Information

  	
  16

  
	
   

  	
   

  	
   

  
	
  Section 6.02

  	
  Non-Disparagement

  	
  16

  
	
   

  	
   

  	
   

  
	
  Section 6.03

  	
  Reasonableness

  	
  16

  
	
   

  	
   

  	
   

  
	
  Section 6.04

  	
  Equitable Relief

  	
  16

  
	
   

  	
   

  	
   

  
	
  Section 6.05

  	
  Survival of Provisions

  	
  17

  
				

 

ii

 

	
   

  	
   

  	
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  ARTICLE VII

  	
  THE PLAN ADMINISTRATOR

  	
  18

  
	
   

  	
   

  	
   

  
	
  Section 7.01

  	
  Authority and Duties

  	
  18

  
	
   

  	
   

  	
   

  
	
  Section 7.02

  	
  Compensation of the Plan Administrator

  	
  18

  
	
   

  	
   

  	
   

  
	
  Section 7.03

  	
  Records, Reporting and Disclosure

  	
  18

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
  AMENDMENT, TERMINATION AND DURATION

  	
  19

  
	
   

  	
   

  	
   

  
	
  Section 8.01

  	
  Amendment, Suspension and Termination

  	
  19

  
	
   

  	
   

  	
   

  
	
  Section 8.02

  	
  Duration

  	
  19

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
  DUTIES OF THE COMPANY AND THE COMMITTEE

  	
  20

  
	
   

  	
   

  	
   

  
	
  Section 9.01

  	
  Records

  	
  20

  
	
   

  	
   

  	
   

  
	
  Section 9.02

  	
  Payment

  	
  20

  
	
   

  	
   

  	
   

  
	
  Section 9.03

  	
  Discretion

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
  CLAIMS PROCEDURES

  	
  21

  
	
   

  	
   

  	
   

  
	
  Section 10.01

  	
  Claim

  	
  21

  
	
   

  	
   

  	
   

  
	
  Section 10.02

  	
  Initial Claim

  	
  21

  
	
   

  	
   

  	
   

  
	
  Section 10.03

  	
  Appeals of Denied Administrative Claims

  	
  21

  
	
   

  	
   

  	
   

  
	
  Section 10.04

  	
  Appointment of the Named Appeals Fiduciary

  	
  22

  
	
   

  	
   

  	
   

  
	
  Section 10.05

  	
  Arbitration; Expenses

  	
  22

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
  MISCELLANEOUS

  	
  24

  
	
   

  	
   

  	
   

  
	
  Section 11.01

  	
  Nonalienation of Benefits

  	
  24

  
	
   

  	
   

  	
   

  
	
  Section 11.02

  	
  Notices

  	
  24

  
	
   

  	
   

  	
   

  
	
  Section 11.03

  	
  Successors

  	
  24

  
	
   

  	
   

  	
   

  
	
  Section 11.04

  	
  Other Payments

  	
  24

  
	
   

  	
   

  	
   

  
	
  Section 11.05

  	
  No Mitigation

  	
  24

  
	
   

  	
   

  	
   

  
	
  Section 11.06

  	
  No Contract of Employment

  	
  24

  
	
   

  	
   

  	
   

  
	
  Section 11.07

  	
  Severability of Provisions

  	
  24

  
	
   

  	
   

  	
   

  
	
  Section 11.08

  	
  Heirs, Assigns, and Personal Representatives

  	
  25

  
	
   

  	
   

  	
   

  
	
  Section 11.09

  	
  Headings and Captions

  	
  25

  
	
   

  	
   

  	
   

  
	
  Section 11.10

  	
  Gender and Number

  	
  25

  
	
   

  	
   

  	
   

  
	
  Section 11.11

  	
  Unfunded Plan

  	
  25

  
	
   

  	
   

  	
   

  
	
  Section 11.12

  	
  Compliance with Code Section 409A

  	
  25

  
				

 

iii

 

	
   

  	
   

  	
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  Section 11.13

  	
  Payments to Incompetent Persons

  	
  25

  
	
   

  	
   

  	
   

  
	
  Section 11.14

  	
  Lost Payees

  	
  25

  
	
   

  	
   

  	
   

  
	
  Section 11.15

  	
  Controlling Law

  	
  25

  
	
   

  	
   

  	
   

  
	
  SCHEDULE A SEVERANCE BENEFITS

  	
  A-1

  

 

iv

 

ARTICLE I

BACKGROUND, PURPOSE AND TERM OF PLAN

 

Section 1.01         Purpose of the Plan.  The purpose of the Plan is to provide
Eligible Employees with certain compensation and benefits as set forth in the
Plan in the event the Eligible Employee’s employment with the Company or a
Subsidiary is terminated due to a Change in Control Termination.  The Plan is not intended to be an “employee
pension benefit plan” or “pension plan” within the meaning of Section 3(2) of
ERISA.  Rather, this Plan is intended to
be a “welfare benefit plan” within the meaning of Section 3(1) of ERISA and to
meet the descriptive requirements of a plan constituting a “severance pay plan”
within the meaning of regulations published by the Secretary of Labor at Title
29, Code of Federal Regulations, section 2510.3-2(b).  Accordingly, the benefits paid by the Plan
are not deferred compensation and no employee shall have a vested right to such
benefits. 

 

Section 1.02         Term of the Plan.  The Plan shall generally be effective as of
the Effective Date, but subject to amendment from time to time in accordance
with Section 8.01.  The Plan shall
continue until terminated pursuant to Article VIII of the Plan.

 

 

ARTICLE II

 

DEFINITIONS

 

Section 2.01         “Annual Bonus”
shall mean 100% of the Participant’s target annual bonus.

 

Section 2.02         “Base Salary”
shall mean the annual base salary in effect as of the Participant’s Termination
Date.

 

Section 2.03         “Board” shall
mean the Board of Directors of the Company or any successor thereto, or a
committee thereof specifically designated for purposes of making determinations
hereunder.

 

Section 2.04         “Cause” shall
mean (i) a material violation of any fiduciary duty owed to the Company, (ii)
conviction of, or entry of a plea of nolo contendere with
respect to, a felony or misdemeanor, (iii) dishonesty, (iv) theft,
or (v) other egregious conduct, that is likely to have a materially detrimental
impact on the Company and its employees. 
Whether an Eligible Employee’s termination is as a result of Cause shall
be determined in the discretion of the Plan Administrator.

 

Section 2.05         “Change in Control”  shall mean any of the following events:

 

(i)            any “person” (as defined in Section
13(d) and 14(d) of the Exchange Act, excluding for this purpose, (i) the
Company or any subsidiary company (wherever incorporated) of the Company as
defined by Section 86 of the Companies Act 1981 of Bermuda, as amended or (ii)
any employee benefit plan of the Company or any such subsidiary company (or any
person or entity organized, appointed or established by the Company for or
pursuant to the terms of any such plan that acquires beneficial ownership of
voting securities of the Company), is or becomes the “beneficial owner” (as
defined in Rule 13d-3 under the Exchange Act) directly or indirectly of
securities of the Company representing more than 30 percent of the combined
voting power of the Company’s then outstanding securities; provided, however,
that no Change in Control will be deemed to have occurred as a result of a
change in ownership percentage resulting solely from an acquisition of
securities by the Company;

 

(ii)           persons who, as of the Effective
Date, constitute the Board (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 the Company subsequent to the
Effective Date shall be considered an Incumbent Director if such person’s
election or nomination for election was approved by a vote of at least 50
percent of the Incumbent Directors; but provided further, that any such person
whose initial assumption of office is in connection with an actual or
threatened proxy contest relating to the election of members of the Board or
other actual or threatened solicitation of proxies or consents by or on behalf
of a “person” (as defined in Section 13(d) and 14(d) of the Exchange Act) other
than the Board, 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;

 

2

 

(iii)          consummation of a reorganization,
merger or consolidation or sale or other disposition of at least 80 percent of
the assets of the Company (a “Business Combination”), in each case, unless,
following such Business Combination, all or substantially all of the
individuals and entities who were the beneficial owners of outstanding voting
securities of the Company immediately prior to such Business Combination
beneficially own directly or indirectly more than 50 percent of the combined
voting power of the then outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the company
resulting from such Business Combination (including, without limitation, a
company which, as a result of such transaction, owns the Company or all or
substantially all of the Company’s assets either directly or through one or
more subsidiary companies (wherever incorporated) of the Company as defined by
Section 86 of the Companies Act 1981 of Bermuda, as amended) in substantially
the same proportions as their ownership, immediately prior to such Business
Combination, of the outstanding voting securities of the Company; or

 

(iv)           approval by the stockholders of the
Company of a complete liquidation or dissolution of the Company.

 

Section 2.06         “Change in Control
Termination”  shall mean a
Participant’s Involuntary Termination or Good Reason Resignation that occurs
during the period beginning 60 days prior to the date of a Change in Control
and ending two years after the date of such Change in Control.

 

Section 2.07         “COBRA” shall
mean the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.

 

Section 2.08         “Code” shall
mean the Internal Revenue Code of 1986, as amended.

 

Section 2.09         “Committee”
shall mean the Management Development and Compensation Committee of the Board
or such other committee appointed by the Board to assist the Company in making
determinations required under the Plan in accordance with its terms.  The “Committee” may delegate its authority
under the Plan to an individual or another committee.

 

Section 2.10         “Company”
shall mean Tyco Electronics Ltd.  Unless
it is otherwise clear from the context, Company shall generally include
participating Subsidiaries.

 

Section 2.11         “Effective Date”
shall mean July 1, 2007.

 

Section 2.12         “Eligible Employee”
shall mean an Employee who is an Officer or an employee in the Band 1
classification. If there is any question as to whether an Employee is deemed an
Eligible Employee for purposes of the Plan, the Plan Administrator shall make
the determination.

 

Section 2.13         “Employee”
shall mean an individual employed by an Employer as a common law employee on
the United States payroll of Tyco Electronics Ltd. or a Subsidiary, and shall
not include any person working for the Company through a temporary service or
on a leased basis or who is hired by the Company as an independent contractor,
consultant, or otherwise as a person who is not an employee for purposes of withholding
federal employment taxes, as evidenced by payroll records or a written
agreement with the individual, regardless of 

 

3

 

any
contrary governmental or judicial determination or holding relating to such
status or tax withholding.

 

Section 2.14         “Employer”
shall mean the Company or any Subsidiary with respect to which this Plan has
been adopted.

 

Section 2.15         “ERISA” shall
mean the Employee Retirement Income Security Act of 1974, as amended, and
regulations thereunder.

 

Section 2.16         “Exchange Act”
shall mean the Securities Exchange Act of 1934, as amended.

 

Section 2.17         “Executive
Severance Plan” shall mean the Tyco Electronics Severance Plan for U.S.
Officers and Executives, which plan is superseded by this Plan in the event of
any Participant’s Change in Control Termination.

 

Section 2.18         “Good Reason
Resignation” shall mean any retirement or termination of employment by a
Participant that is not initiated by the Company or any Subsidiary and that is
caused by any one or more of the following events which occurs during the
period beginning 60 days prior to the date of a Change in Control and ending
two years after the date of such Change in Control:

 

(1)  Without the Participant’s written consent,
the Company (a) assigns or causes to be assigned to the Participant any duties
inconsistent in any material respect with his or her position as in effect
immediately prior to the Change in Control, (b) makes or causes to be made any
material adverse change in the Participant’s position (including titles and
reporting relationships and level), authority, duties or responsibilities, or
(c) takes or causes to be taken any other action which, in the reasonable
judgment of the Participant, would cause him or her to violate his or her
ethical or professional obligations (after written notice of such judgment has
been provided by the Participant to the Committee and the Company has been
given a 15-day period within which to cure such action), or which results in a
significant diminution in such position, authority, duties or responsibilities;

 

(2)  Without the Participant’s written consent,
the Participant’s being required to relocate to a principal place of employment
more than sixty (60) miles from his or her existing principal place of
employment;

 

(3)  Without the Participant’s written consent,
the Company (a) reduces the Participant’s Base Salary or Annual Bonus, or (b)
reduces the Participant’s retirement, welfare, stock incentive, perquisite and
other benefits, taken as a whole; or

 

(4)  The Company fails to obtain a satisfactory
agreement from any Successor to assume and agree to perform the Company’s
obligations to the Participant under this Plan, as contemplated in Section
11.03 herein.

 

provided,
that if the Participant remains in employment for more than one hundred and
eighty (180) days following the occurrence of (or, if later, the Participant’s
gaining knowledge of) any event set forth above, any subsequent retirement or
termination of employment by a Participant 

 

4

 

that
is not initiated by the Company or any Subsidiary shall not constitute a Good
Reason Resignation. Whether a Participant’s termination is as a result of a
Good Reason Resignation shall be determined in the discretion of the Plan
Administrator.

 

Section 2.19         “Involuntary
Termination” shall mean a termination of the Participant initiated by the
Company or a Subsidiary for any reason other than Cause, Permanent Disability
or death, as provided under and subject to the conditions of Article III.

 

Section 2.20         “Notice Pay”
shall mean the amounts that a Participant is eligible to receive pursuant to
Article IV of the Plan.

 

Section 2.21         “Officer”
shall mean any individual who is an officer of an Employer, and who is
considered an officer for purposes of Rule 16a-1(f) as promulgated under the
Exchange Act immediately before the Change in Control. 

 

Section 2.22         “Participant”
shall mean any Eligible Employee who meets the requirements of Article III and
thereby becomes eligible for salary continuation and other benefits under the
Plan.

 

Section 2.23         “Permanent
Disability” shall mean that an Employee has a permanent and total
incapacity from engaging in any employment for the Employer for physical or
mental reasons.  A “Permanent Disability”
shall be deemed to exist if the Employee meets the requirements for disability
benefits under the Employer’s long-term disability plan or under the
requirements for disability benefits under the Social Security law (or similar
law outside the United States, if the Employee is employed in that
jurisdiction) then in effect, or if the Employee is designated with an inactive
employment status at the end of a disability or medical leave.

 

Section 2.24         “Plan” means
the Tyco Electronics Ltd.   Change in Control Severance Plan for Certain
U.S. Officers and Executives as set forth herein, and as the same may from time
to time be amended.

 

Section 2.25         “Plan
Administrator” shall mean, for the period prior to a Potential Change in
Control, the individual(s) appointed by the Committee to administer the terms
of the Plan as set forth herein and if no individual is appointed by the
Committee to serve as the Plan Administrator for the Plan, the Plan
Administrator shall be the Senior Vice President – Human Resources for Tyco Electronics
(or the equivalent).  In the event of the
occurrence of a Potential Change in Control, the Senior Vice-President, Human
Resources for Tyco Electronics (or the equivalent) shall appoint a person or
entity independent of the Company and any person operating under the Company’s
control or on its behalf to serve as Plan Administrator (and such person or
entity shall be the Plan Administrator for all purposes after such
appointment), and such appointment shall take effect and become irrevocable as
of the date of said appointment (provided that such appointment shall be
revocable if a Change in Control does not occur and the Potential Change in
Control expires in accordance with Section 2.26(y)).  For periods prior to a Potential Change in
Control, the Plan Administrator may delegate all or any portion of its
authority under the Plan to any other person(s).

 

Section 2.26         “Potential Change in Control” shall
mean the occurrence and continuation of any of the following: (a)  any “person” (as defined in Section 13(d) and 14(d) of the
Exchange 

 

5

 

Act),
excluding for this purpose, (i) the Company or any subsidiary company (wherever
incorporated) of the Company as defined by Section 86 of the Companies Act 1981
of Bermuda, as amended or (ii) any employee benefit plan of the Company or any
such subsidiary company (or any person or entity organized, appointed or
established by the Company for or pursuant to the terms of any such plan that
acquires beneficial ownership of voting securities of the Company), is or
becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange
Act) directly or indirectly of securities of the Company representing more than
5 percent of the combined voting power of the Company’s then outstanding securities unless such Person has reported or
is required to report such ownership on Schedule 13G under the Exchange Act (or
any comparable or successor report) or on Schedule 13D under the Exchange Act (or
any comparable or successor report), which Schedule 13D does not state any
intention to or reserve the right to control or influence the management or
policies of the Company or engage in any of the actions specified in Item 4 of
such Schedule (other than the disposition of the common stock) so long as such
Person neither reports nor is required to report such ownership other than as
described in this paragraph; provided, however, that a Potential Change
in Control will not be deemed to have occurred as a result of a change in
ownership percentage resulting solely from an acquisition of securities by the
Company, (b) the Company enters into an agreement, the consummation of which
would result in the occurrence  of a Change in Control, (c) any “person” (as
defined in subsection(a)) publicly announces an intention to take or to
consider taking actions which, if consummated, would constitute or result in a
Change in Control, (d) any person ( as defined in subsection (a)) commences a
solicitation (as defined in Rule 14a-1 of the Exchange Act) of proxies or
consents that has the purpose of effecting or would (if successful) result in a
Change in Control, (e) a tender or exchange offer for at least 30% of the
outstanding voting securities of the Company, made by a “person” (as defined in
subsection (a)), is first published or sent or given (within the meaning of
Rule 14d-2(a) of the Exchange Act), or (f) the Board adopts a resolution to the
effect that, for purposes of the Plan, a Potential Change in Control has occurred.  The Potential Change in Control shall be
deemed in effect until the earlier of (x) the occurrence of a Change in
Control, or (y) the adoption by the Board of a resolution stating that, for
purposes of the Plan, the Potential Change in Control has expired.

 

Section 2.27         “Release”
shall mean the Separation of Employment Agreement and General Release, as
provided by the Company. 

 

Section 2.28         “Severance Benefit”
shall mean the salary and bonus replacement amounts and other benefits that a
Participant is eligible to receive pursuant to Article IV of the Plan.

 

Section 2.29         “Severance Period”
shall mean the period for which a Participant is entitled to receive Severance
Benefits under this Plan, as follows:  Chief
Executive Officer – 36 months; Officers who are direct reports to the Chief
Executive Officer – 24 months; and other Officer and Band 1 employees – 18
months.

 

Section 2.30         “Subsidiary”
shall mean (i) a subsidiary company (wherever incorporated) as defined by
section 86 of the Companies Act 1981 of Bermuda (as amended), (ii) any
separately organized business unit, whether or not incorporated, of the
Company, and (iii) any employer that is required to be aggregated with the
Company pursuant to section 414 of the Internal Revenue Code of 1986, as
amended, and regulations issued thereunder.

 

6

 

Section 2.31         “Successor”
shall mean any other corporation or unincorporated entity or group of
corporations or unincorporated entities which acquires ownership, directly or
indirectly, through merger, consolidation, purchase or otherwise, of all or
substantially all of the assets of the Company.

 

Section 2.32         “Termination Date”
shall mean the date on which the active employment of the Participant by the
Company or a Subsidiary is severed by reason of an Involuntary Termination or a
Good Reason Resignation.

 

Section 2.33         “Voluntary
Resignation” shall mean any retirement or termination of employment that is
not initiated by the Company or any Subsidiary other than a Good Reason
Resignation.

 

7

 

ARTICLE III

PARTICIPATION AND ELIGIBILITY FOR BENEFITS

 

Section 3.01         Participation.  Each Eligible Employee in the Plan who incurs
a Change in Control Termination and who satisfies the conditions of Section
3.02 shall be eligible to receive the Severance Benefits described in the Plan,
subject however, to the application of the non-duplication provisions of
Section 4.05.  

 

Section 3.02         Conditions.

 

(a)           Eligibility for any Severance
Benefits is expressly conditioned on (i) execution by the Participant of a
Release in the form provided by the Company; (ii) compliance by the Participant
with all the terms and conditions of such Release; (iii) the Participant’s
written agreement to the confidentiality and non-disparagement provisions in
Article VI during and after the Participant’s employment with the Company; and
(iv) execution of a written agreement that authorizes the deduction of amounts
owed to the Company prior to the payment of any Severance Benefit (or in
accordance with any other schedule as is agreed between the Participant and the
Company).  If the Plan Administrator
determines that the Participant has not fully complied with any of the terms of
the Release, the Plan Administrator may withhold Severance Benefits not yet in
pay status or discontinue the payment of the Participant’s Severance Benefit
and may require the Participant, by providing written notice of such repayment
obligation to the Participant, to repay any portion of the Severance Benefit
already received under the Plan.  If the
Plan Administrator notifies a Participant that repayment of all or any portion
of the Severance Benefit received under the Plan is required, such amounts
shall be repaid within thirty (30) calendar days of the date the written notice
is sent, provided, however, that if the Participant files an appeal of such
determination under the claims procedures described in Article X, then such
repayment obligation shall be suspended pending the outcome of the appeals
procedure.  Any remedy under this
subsection (a) shall be in addition to, and not in place of, any other remedy,
including injunctive relief, that the Company may have.

 

(b)           An Eligible Employee will not be
eligible to receive severance benefits under any of the following
circumstances: 

 

(i)            The Eligible Employee’s Voluntary
Resignation;  

 

(ii)           The Eligible Employee resigns
employment (other than a Good Reason Resignation) before the job-end date
mutually agreed to in writing between the Participant and the Employer,
including any extension thereto as is mutually agreed to in writing between the
parties;  

 

(iii)          The Eligible Employee’s employment is
terminated for Cause;  

 

8

 

(iv)          The Eligible Employee’s employment is
terminated due to the Eligible Employee’s death or Permanent Disability;  

 

(v)           The Eligible Employee does not return
to work within the period prescribed by law (or if there is no such period
prescribed by law, then within a reasonable period as is determined by the Plan
Administrator) following an approved leave of absence,  unless such period is extended by mutual
written agreement of the parties; or

 

(vi)          The Eligible Employee’s employment
with the Employer terminates as a result of a Change in Control and the
Eligible Employee accepts employment, or has the opportunity to continue
employment, with a Successor (other than under terms and conditions which would
permit a Good Reason Resignation).  .

 

(c)           The Plan Administrator has the
discretion to make initial determinations regarding an Eligible Employee’s
eligibility to receive Severance Benefits hereunder.  

 

(d)           An Eligible Employee returning from
approved military leave during the period beginning 60 days before a Change in
Control and ending two years after a Change in Control will be eligible for
Severance Benefits if: (i) he/she is eligible for reemployment under the
provisions of the Uniformed Services Employment and Reemployment Rights Act
(USERRA); (ii) his/her pre-military leave job is eliminated; and (iii) the
Employer’s circumstances are changed so as to make reemployment in another
position impossible or unreasonable, or re-employment would create an undue
hardship for the Employer.  If the
Eligible Employee returning from military leave qualifies for Severance
Benefits, his/her severance benefits will be calculated as if he/she had
remained continuously employed from the date he/she began his/her military
leave.  The Eligible Employee must also
satisfy any other relevant conditions for payment, including execution of a
Release.

 

9

 

ARTICLE IV

DETERMINATION OF SEVERANCE BENEFITS

 

Section 4.01         Amount of Severance Benefits Upon
Involuntary Termination and Good Reason Resignation. The
Severance Benefits to be provided to an Eligible Employee who incurs a Change
in Control Termination and is determined to be eligible for Severance Benefits
shall be as follows:

 

(a)           Notice Pay.  Except for Officers, each Eligible Employee who
meets the eligibility requirements for a Severance Benefit under Section 3.01
shall receive 30 calendar days notice as a Notice Period.  In the event that the Company determines that
a Participant’s last day of work shall be prior to the end of his or her Notice
Period, such Employee shall be entitled to pay in lieu of notice for the
balance of such Notice Period.  Notice
Pay paid to an Eligible Employee shall be in addition to, and not offset
against, the Severance Benefits the Participant may be entitled to receive
under this Article IV.  An Eligible
Employee who does not sign, or who revokes his or her signature on, a Release
shall only be eligible for Notice Pay. 
Unless otherwise permitted by the applicable plan documents or laws, an
Eligible Employee will not be eligible to apply for short-term disability,
long-term disability and/or workers’ compensation anytime after the Eligible
Employee’s last active day at work.

 

(b)           Salary Replacement Benefits.  Salary Replacement Benefits shall be provided
to the Participant in an amount as set forth in Schedule A appended to the
Plan.

 

(c)           Bonus.

 

(i)            The Participant shall receive a cash
payment equal to his or her pro rated annual bonus (based on the number of full
months completed from the beginning of the fiscal year through the Termination
Date) for the year in which Participant’s Termination Date occurs, pursuant to
the terms set forth in the applicable incentive plans; provided, however, that
to the extent that a bonus payment for such period is paid as a result of a
Change in Control under the terms of such other incentive plan, then the amount
otherwise payable under this Section 4(c) will be offset by the payment made
under such other incentive plan . 

 

(ii)           The Participant shall also receive a
cash payment equal to his or her Annual Bonus in an amount as set forth in Schedule
A appended to the Plan.

 

(d)           Medical and Dental Benefits.  The Participant shall continue to be eligible
to participate in the medical and dental coverage in effect at the date of his
or her termination (or generally comparable coverage) for himself or herself
and, where applicable, his or her spouse or domestic partner and dependents, as
the same may be changed from time to time for employees of the Company
generally, as if Participant had continued in employment during the Severance
Period (the “COBRA Continuation Coverage Period”).  The Participant shall be responsible for the
payment of the employee portion of the medical and dental contributions that
are required during the Severance 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. 
The Participant’s failure to pay the applicable contributions shall
result in the cessation of the 

 

10

 

applicable
medical and dental coverage for the Participant and his or her spouse or
domestic partner and dependents. 
Notwithstanding any other provision of this Plan to the contrary, in the
event that a Participant commences employment with another company at any time
during the Severance Period, the Participant may cease receiving coverage under
the Company’s medical and dental plans. 
Within thirty (30) days of Participant’s commencement of employment with
another company, Participant shall provide the Company written notice of such
employment and provide information to the Company regarding the medical and
dental benefits provided to Participant by his or her new employer.  The COBRA Continuation Coverage Period under
section 4980B of the Code shall run concurrently with the Severance Period.

 

(e)           Stock Options.  All stock options held by the Participant as
of his or her Termination Date that were granted prior to the Change in Control
and that are not already vested and exercisable as of such date shall become
vested and exercisable on the Termination Date. 
All outstanding stock options held by Participant that were granted
prior to the Change in Control and that are vested and exercisable as of the
Termination Date and all stock options held by the Participant that become
vested and exercisable under the preceding sentence shall be exercisable for
the greater of (i) the period set forth in Participant’s option agreement
covering such options, or (ii) twelve (12) months from the Termination
Date.  In no event, however, shall an
option be exercisable beyond its original expiration date.

 

(f)            Restricted Stock.  All unvested restricted stock and restricted
stock units held by the Participant as of his or her Termination Date that were
granted prior to the Change in Control and that are subject solely to
time-vesting requirements shall accelerate and become immediately vested as of
the Termination Date.  All unvested
restricted stock and restricted stock units held by the Participant as of his
or her Termination Date that were granted prior to the Change in Control and
that are subject to performance-based vesting provisions shall accelerate and
become vested if and to the extent that the plan administrator responsible for
the administration of such awards determines in its sole discretion that the
applicable performance vesting requirements have been or will be attained, or
would have been attained during the Severance Period in the ordinary course but
for the Change in Control and the Participant’s Change in Control Termination.

 

(g)           Outplacement Services.  The Company will pay the cost of outplacement
services for the Participant for a period of twelve (12) months from
Participant’s Termination Date.  The
Company shall pay the cost of outplacement services at either (i) the
outplacement agency that the Company regularly uses for such purpose, or
(ii)  the outplacement agency selected by
the Participant, provided that the Company will be responsible to pay no more
than the cost that would have been incurred had the Participant used the
outplacement agency that the Company regularly uses for such purpose.

 

(h)           Cash in Lieu of Benefit.  In the event that provision of any of the
benefits in (d) 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
Participant cash in lieu of such coverage in an amount equal to the Company’s
premium or average cost of providing such coverage.

 

(i)            Application of Other Plan
Provisions.  If any applicable equity
compensation or incentive plan or grant instrument, without regard to (c), (e)
or (f) above, provides the Participant the right to accelerated vesting or
payment of cash incentive awards, 

 

11

 

stock
options, restricted stock, restricted stock units or incentive awards, and/or
an extension of the otherwise applicable option exercise period, in the case of
termination of employment following a Change in Control, then the Participant’s
right to accelerated payment, vesting or extension of the option exercise
period shall be determined by whichever of the plan, grant instrument or the
provisions of (c), (e) or (f) above provides the most favorable vesting or
exercise rights for the Participant in such event.

 

Section 4.02         Voluntary Resignation; Termination Due
to Death or Permanent Disability.  If the Eligible Employee’s employment
terminates on account of (i) the Eligible Employee’s Voluntary Resignation,
(ii) death, or (iii) Permanent Disability, then the Eligible Employee shall not
be entitled to receive Severance Benefits under this Plan and shall be entitled
only to those benefits (if any) as may be available under the Company’s then-existing
benefit plans and policies at the time of such termination.

 

Section 4.03         Termination for Cause.  (a)  If
any Eligible Employee’s employment terminates on account of termination by the
Company for Cause, the Eligible Employee shall not be entitled to receive
Severance Benefits under this Plan and shall be entitled only to those benefits
that are legally required to be provided to the Eligible Employee.  Notwithstanding any other provision of the
Plan to the contrary, if the Committee or the Plan Administrator determines
that an Eligible Employee has engaged in conduct that constitutes Cause at any
time prior to the Eligible Employee’s Termination Date, any Severance Benefit
payable to the Eligible Employee under Section 4.01 of the Plan shall immediately
cease, and the Eligible Employee shall be required to return any Severance
Benefits paid to the Eligible Employee prior to such determination.  The Company may withhold paying Severance
Benefits under the Plan pending resolution of any good faith inquiry that is
likely to lead to a finding resulting in Cause. 
If the Company has offset other payments owed to the Eligible Employee
under any other plan or program, it may, in its sole discretion, waive its
repayment right solely with respect to the amount of the offset so credited. 

 

(b)            Any dispute regarding a termination
for Cause will be resolved by the Plan Administrator.  Such determination will be based
on all of the facts and circumstances presented to the Plan Administrator by
the Company.  If the Plan Administrator
determines that the Eligible Employee’s termination of employment is for Cause,
then the Plan Administrator will notify the Eligible Employee in writing of
such determination, describing in detail the reason for such determination, including
without limitation the specific conduct that constituted the basis for the
determination.  The Eligible Employee
shall have the right to contest the determination of the Plan Administrator in
accordance with the Appeals Procedure described in Section 10.03.

 

Section 4.04         Reduction of Severance Benefits.  The Plan Administrator reserves the right to
make deductions in accordance with applicable law for any monies owed to the
Company by the Participant or the value of Company property that the Participant
has retained in his/her possession.

 

Section 4.05         Non-Duplication of Benefits.  The Plan is intended to
supersede, and not to duplicate, the provisions of the Tyco Electronics
Severance Plan for U.S. Officers and Executives (“Executive Severance Plan”) in
any case in which an Eligible Employee would otherwise be entitled to severance
or related benefits under both this Plan and the Executive 

 

12

 

Severance
Plan arising out of the Eligible Employee’s Change in Control Termination.
However, the Plan is not intended to supersede any other plan, program,
arrangement or agreement providing an Eligible Employee with severance or
related benefits in the case of an Eligible Employee’s Change in Control
Termination.  In the event that an
Eligible Employee becomes entitled to receive benefits under this Plan and any
such benefit duplicates a benefit that would otherwise be provided under any
other plan, program, arrangement or agreement as a result of the Eligible Employee’s
Change in Control Termination, then the Eligible Employee shall be entitled to
receive the greater of the benefit available under the Plan, on the one hand,
and the benefit available under such other plan, program, arrangement or
agreement, on the other.

 

13

 

ARTICLE V

METHOD, DURATION AND LIMITATION OF SEVERANCE BENEFIT PAYMENTS

 

Section 5.01         Method of Payment.  The cash Severance Benefits to which a
Participant is entitled, as determined pursuant to Section 4.01, shall be paid
in a single lump sum payment.  In no
event will interest be credited on the unpaid balance for which a Participant
may become eligible.  Payment shall be
made by mailing to the last address provided by the Participant to the Company
or such other reasonable method as determined by the Plan Administrator.  In general, the payment shall be made as
promptly as practicable after the Participant’s Termination Date, the execution
of the Release required under Section 3.02, and the expiration of the required
revocation period specified in the Release. 
In no event will the payment be made later than the date that is two and
one-half (2-1/2) months following the end of the calendar year in which occurs
the Termination Date, unless (a) the Participant has failed to deliver the
Release required under Section 3.02 or (b) such date is prior to the expiration
of the required revocation period specified in the Release.  All payments of Severance Benefits are
subject to applicable federal, state and local taxes and withholdings.  In the event of the Participant’s death prior
to payment being made, the amount of such payment shall be paid to the
Participant’s estate.

 

Section 5.02         Other Arrangements.  The provisions of this Plan may provide for payments
to the Eligible Employee under certain compensation or bonus plans under
circumstances where such plans would not otherwise provide for payment
thereof.  It is the specific intention of
the Company that the provisions of this Plan shall supersede any provisions to
the contrary in such plans, to the extent permitted by applicable law, and such
plans shall be deemed to be have been amended to correspond with this Plan
without further action by the Company or the Board.

 

Section 5.03         Termination of Eligibility for
Benefits.  

 

(a)           All Eligible Employees shall cease to
be eligible to participate in the Plan, and all Severance Benefit payments
shall cease upon the occurrence of the earlier of:

 

(i)            Subject to Article VIII, termination
or modification of the Plan; or

 

(ii)           Completion of payment to the
Participant of the Severance Benefit for which the Participant is eligible
under Article IV.

 

(b)           Notwithstanding anything herein to
the contrary, the Company shall have the right to cease all Severance Benefit
payments and to recover payments previously made to the Participant should the
Participant at any time breach the Participant’s undertakings under the terms
of the Plan, the Release the Participant executed to obtain the Severance
Benefits under the Plan or the confidentiality and non-disparagement provisions
of Article VI.

 

Section 5.04         Limitation on Benefits

 

(a)           Subject to Section 5.04(b), in the
event it shall be determined that any payment or distribution by the Company or
its Subsidiaries to or for the benefit of a Participant (whether paid or
provided pursuant to the terms of this Plan or otherwise) (a “Payment”) would 

 

14

 

be
nondeductible by the Company for Federal income tax purposes because of Section
280G of the Code, then the aggregate present value of the benefits provided to
the Participant pursuant to the rights granted under this Plan (such benefits
are hereinafter referred to as “Plan Payments”) shall be reduced to the Reduced
Amount.  The “Reduced Amount” shall be an
amount expressed in present value which maximizes the aggregate present value
of Plan Payments without causing any Payment to be nondeductible by the Company
because of Section 280G of the Code.  For
purposes of this Section 5.04, present value shall be determined in accordance
with Section 280G(d)(4) of the Code.

 

(b)           If the Firm (as defined in Section
5.04(c)) determines that the payments to the Participant (before any reductions
as described in Section 5.04(a)) on an after-tax basis (i.e., after federal,
state and local income and excise taxes and federal employment taxes) would
exceed the Reduced Amount on an after-tax basis (i.e., after federal, state and
local income and federal employment taxes) then such payments will not be
reduced as is described in Section 5.04(a). 

 

(c)           All determinations required to be
made under this Section 5.04 shall be made by a nationally recognized
accounting or consulting firm selected by the Senior Vice-President, Human
Resources of Tyco Electronics (or the equivalent)  upon the occurrence of a Potential Change in
Control (the “ Firm”), which shall provide detailed supporting calculations
both to the Company and the Participant within fifteen (15) business days of
the Termination Date or such earlier time as is requested by the Company.  Any such determination by the Firm shall be
binding upon the Company, its successors and the Participant (subject to (e)
below).  Within five (5) business days of
the determination by the Firm as to the Reduced Amount, the Company shall
provide to the Participant such Payments as are then due to the Participant in
accordance with the rights afforded under this Plan or any other applicable
plan.  If Plan Payments are to be reduced,
the Participant shall determine which Plan Payments shall be reduced to comply
with this Section 5.04.

 

(d)           The Company shall reimburse the
Participant for any costs or expenses of tax counsel incurred by the
Participant in connection with any audit or investigation by the Internal Revenue
Service, or any state or local tax authorities, concerning the application of
Code Section 280G to any Payments (provided, that the Participant retains tax
counsel acceptable to the Company).   In the event that as a result of any such
audit or investigation, the reduction in Plan Payments under (a) above is
finally determined not to be sufficient in amount to permit the deduction by
the Company of all Payments under Code Section 280G, then the Company shall pay
the Participant an additional amount which shall be sufficient to put the
Participant, after payment of any additional income, employment and excise
taxes, interest and penalties, in substantially the same economic position as
if the reduction had been sufficient.

 

(e)           In the event that the Firm determines
that a reduction effected pursuant to (a) above was excessive in amount due to
changes in relevant data or information following its original determination
under (c) above (including, without limitation, any recalculation regarding the
value of stock options as contemplated under Rev. Proc. 2003-68, Section 3.04),
and that additional Plan Payments could have been made thereunder, the Company
shall promptly make such additional payments to the Participant.

 

15

 

ARTICLE VI

 

CONFIDENTIALITY AND
NON-DISPARAGEMENT

 

Section 6.01         Confidential
Information.  The Eligible Employee agrees that he or she
shall not, directly or indirectly, use, make available, sell, disclose or
otherwise communicate to any person, other than in the course of the Eligible
Employee’s assigned duties and for the benefit of the Company, either during
the period of the Eligible Employee’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 Eligible Employee during the Eligible
Employee’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 Eligible
Employee; (ii) becomes known to the public subsequent to disclosure to the
Eligible Employee through no wrongful act of the Eligible Employee or any
representative of the Eligible Employee; or (iii) the Eligible Employee is
required to disclose by applicable law, regulation or legal process (provided
that the Eligible Employee 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 Eligible Employee’s obligation to
maintain such disclosed information in confidence shall not terminate where
only portions of the information are in the public domain.

 

Section 6.02         Non-Disparagement.  Each of the Eligible Employee and the Company
(for purposes hereof, the Company shall mean only the executive officers and
directors thereof and not any other employees) agrees not to make any
statements that disparage the other party, or in the case of the Company or its
Subsidiaries, their 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 6.02.

 

Section 6.03         Reasonableness.  In the event the provisions of this Article
VI 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.

 

Section 6.04         Equitable Relief.

 

(a)           By participating in the Plan, the
Eligible Employee acknowledges that the restrictions contained in this Article
VI are reasonable and necessary to protect the legitimate interests of the
Company, its Subsidiaries and its affiliates, that the Company would not have
established this Plan in the absence of such restrictions, and that any
violation of any provision of this Article will result in irreparable injury to
the Company.  By agreeing to participate
in the Plan, the Eligible Employee represents that his or her experience and
capabilities are such that the restrictions contained in this Article VI will
not prevent the Eligible Employee from obtaining employment or otherwise
earning a living at the same general level of economic benefit as is currently
the case.  The Eligible Employee further
represents and acknowledges that (i) he or she has been advised by the Company
to consult his or her own legal counsel in respect 

 

16

 

of
this Plan, and (ii) that he or she has had full opportunity, prior to agreeing
to participate in this Plan, to review thoroughly this Plan with his or her
counsel.  The Company likewise acknowledges
that the restrictions contained in Section 6.02 are necessary to protect the
legitimate interests of the Participant, and that any violation of Section 6.02
by the Company will result in irreparable injury to the Participant.  

 

(b)           Each party agrees that the other
party shall be entitled to preliminary and permanent injunctive relief, without
the necessity of proving actual damages, as well as an equitable accounting of
all earnings, profits and other benefits arising from any violation of this Article
VI, which rights shall be cumulative and in addition to any other rights or
remedies to which such aggrieved party may be entitled.  In the event that any of the provisions of
this Article VI should ever be adjudicated to exceed the time, geographic, service,
or other limitations permitted by applicable law in any jurisdiction, then such
provisions shall be deemed reformed in such jurisdiction to the maximum time,
geographic, service, or other limitations permitted by applicable law.

 

(c)           The Eligible Employee irrevocably and
unconditionally (i) agrees that any suit, action or other legal proceeding
arising out of this Article VI, including without limitation, any action
commenced by the Company for preliminary and permanent injunctive relief or
other equitable relief, may be brought in the United States District Court for
the District of New York, or if such court does not have jurisdiction or will
not accept jurisdiction, in any court of general jurisdiction in New York, (ii)
consents to the non-exclusive jurisdiction of any such court in any such suit,
action or proceeding, and (iii) waives any objection which Participant may have
to the laying of venue of any such suit, action or proceeding in any such
court.  Participant also irrevocably and
unconditionally consents to the service of any process, pleadings, notices or
other papers in a manner permitted by the notice provisions of Section 11.02.

 

Section 6.05         Survival of Provisions.  The obligations contained in this Article VI
shall survive the termination of Eligible Employee’s employment with the
Company or a Subsidiary and shall be fully enforceable thereafter.

 

17

 

ARTICLE VII

 

THE PLAN ADMINISTRATOR

 

Section 7.01         Authority and Duties.  It shall be the duty of the Plan
Administrator, on the basis of information supplied to it by the Company and
the Committee, to properly administer the Plan. 
The Plan Administrator shall have the full power, authority and discretion
to construe, interpret and administer the Plan, to make factual determinations,
to correct deficiencies therein, and to supply omissions.  All decisions, actions and interpretations of
the Plan Administrator shall be final, binding and conclusive upon the parties
with respect to denied claims for Severance Benefits, except in those cases
where such determination is subject to review by the Named Appeals Fiduciary
(as defined in Section 10.04).  The Plan
Administrator may adopt such rules and regulations and may make such decisions
as it deems necessary or desirable for the proper administration of the Plan.

 

Section 7.02         Compensation of the Plan
Administrator.  The
Plan Administrator appointed for periods prior to a Potential Change in Control
shall receive no compensation for services as such .  The Plan Administrator appointed for periods
on and after a Potential Change in Control will be entitled to receive
reasonable compensation as is mutually agreed upon between the parties.  All reasonable expenses of the Plan
Administrator shall be paid or reimbursed by the Company upon proper
documentation.  The Plan Administrator
shall be indemnified by the Company against personal liability for actions
taken in good faith in the discharge of the Plan Administrator’s duties.

 

Section 7.03         Records, Reporting and Disclosure.  The Plan Administrator shall keep a copy of
all records relating to the payment of Severance Benefits to Participants and
former Participants and all other records necessary for the proper operation of
the Plan.  All Plan records shall be made
available to the Committee, the Company and to each Participant for examination
during business hours except that a Participant shall examine only such records
as pertain exclusively to the examining Participant and to the Plan.  The Plan Administrator shall prepare and
shall file as required by law or regulation all reports, forms, documents and
other items required by ERISA, the Code, and every other relevant statute, each
as amended, and all regulations thereunder (except that the Company, as payor
of the Severance Benefits, shall prepare and distribute to the proper
recipients all forms relating to withholding of income or wage taxes, Social
Security taxes, and other amounts that may be similarly reportable).

 

18

 

ARTICLE VIII

 

AMENDMENT, TERMINATION AND
DURATION

 

Section 8.01         Amendment, Suspension and
Termination. 
Except as otherwise provided in this Section 8.01, the Board or its
delegee shall have the right, at any time and from time to time prior to the
occurrence of a Potential Change in Control (and after the Potential Change in
Control has expired in accordance with Section 2.26(y)), to amend, suspend or
terminate the Plan in whole or in part, for any reason or without reason, and
without either the consent of or the prior notification to any Participant, by
a formal written action.  After the
occurrence of a Potential Change in Control, the Board or its delegee shall
have the right to amend the Plan, provided however, that (a) in no event shall
any amendment give the Company the right to recover any amount paid to a
Participant prior to the date of such amendment or to cause the cessation of
Severance Benefits already approved for a Participant who has executed a
Release as required under Section 3.02 and (b) the Plan may not be amended in
any manner that adversely affects any right of a Participant or Eligible
Employee without the written consent of such Participant or Eligible
Employee.  

 

Section 8.02         Duration.  The Plan shall continue in full force and
effect until termination of the Plan pursuant to Section 8.01; provided,
however, that after the termination of the Plan, if any Participants terminated
employment on account of an Involuntary Termination prior to the termination of
the Plan and are still receiving Severance Benefits under the Plan, the Plan
shall remain in effect until all of the obligations of the Company are
satisfied with respect to such Participants.

 

19

 

ARTICLE IX

 

DUTIES OF THE COMPANY AND THE
COMMITTEE

 

Section 9.01         Records.  The Company or a Subsidiary thereof shall
supply to the Committee all records and information necessary to the
performance of the Committee’s duties.

 

Section 9.02         Payment.
Payments of Severance Benefits to Participants shall be made in such amount as
determined by the Committee under Article IV, from the Company’s general assets
or from a supplemental unemployment benefits trust, in accordance with the
terms of the Plan, as directed by the Committee.

 

Section 9.03         Discretion.  Any decisions, actions or interpretations to
be made under the Plan by the Board, the Committee and the Plan Administrator,
acting on behalf of either, shall be made in each of their respective sole
discretion, not in any fiduciary capacity and need not be uniformly applied to
similarly situated individuals and such decisions, actions or interpretations
shall be final, binding and conclusive upon all parties.  As a condition of participating in the Plan,
the Eligible Employee acknowledges that all decisions and determinations of the
Board, the Committee and the Plan Administrator taken in good faith shall be
final and binding on the Eligible Employee, his or her beneficiaries and any
other person having or claiming an interest under the Plan on his or her
behalf.

 

20

 

ARTICLE X

 

CLAIMS PROCEDURES

 

Section 10.01       Claim.  Each Participant under this Plan may contest
any action taken or determination made by the Company, the Board, the Committee
or the Plan Administrator that affects the rights of such Participant hereunder
by completing and filing with the Plan Administrator a written request for
review in the manner specified by the Plan Administrator.  No person may bring an action for any alleged
wrongful denial of Plan benefits in a court of law unless the claims procedures
described in this Article X are exhausted and a final determination is made by
the Plan Administrator and/or the Named Appeals Fiduciary, except in
circumstances where the Participant has a reasonable basis to conclude that the
pursuit of his/her claim through the claims procedure would be futile.  If the terminated Participant or interested
person challenges a decision by the Plan Administrator and/or Named Appeals
Fiduciary, a review by the court of law will be limited to the facts, evidence
and issues presented to the Plan Administrator during the claims procedure set
forth in this Article X.  Facts and
evidence that become known to the terminated Participant or other interested
person after having exhausted the claims procedure must be brought to the
attention of the Plan Administrator for reconsideration of the claims
administrator.  Issues not raised with
the Plan Administrator and/or Named Appeals Fiduciary will be deemed waived.

 

Section 10.02       Initial Claim.  Before the date on which payment of a
Severance Benefit commences, each application for benefits must be supported by
such information as the Plan Administrator deems relevant and appropriate.  In the event that any claim relating to the
administration of Severance Benefits is denied in whole or in part, the
terminated Participant or his or her beneficiary (“claimant”) whose claim has
been so denied shall be notified of such denial in writing by the Plan Administrator
within thirty (30) days after the receipt of the claim for benefits.  This period may be extended an additional
thirty (30) days if the Plan Administrator determines such extension is
necessary and the Plan Administrator provides notice of extension to the
claimant prior to the end of the initial thirty (30) day period.  The notice advising of the denial shall
specify the following: (i) the reason or reasons for denial, (ii) make specific
reference to the Plan provisions on which the determination was based, (iii)
describe any additional material or information necessary for the claimant to
perfect the claim (explaining why such material or information is needed), and
(iv) describe the Plan’s review procedures and the time limits applicable to such
procedures, including a statement of the claimant’s right to bring a civil
action under section 502(a) of ERISA following an adverse benefit determination
on review.

 

Section 10.03       Appeals of Denied Administrative
Claims.  All
appeals shall be made by the following procedure:

 

(a)           A claimant whose claim has been
denied shall file with the Plan Administrator a notice of appeal of the
denial.  Such notice shall be filed
within sixty (60) calendar days of notification by the Plan Administrator of
the denial of a claim, shall be made in writing, and shall set forth all of the
facts upon which the appeal is based. 

 

(b)           The Named Appeals Fiduciary shall
consider the merits of the claimant’s written presentations, the merits of any
facts or evidence in support of the denial of benefits, and such other facts
and circumstances as the Named Appeals Fiduciary shall deem relevant.

 

21

 

(c)           The Named Appeals Fiduciary shall
render a determination upon the appealed claim which determination shall be
accompanied by a written statement as to the reasons therefor.  The determination shall be made to the
claimant within thirty (30) days of the claimant’s request for review, unless
the Names Appeals Fiduciary determines that special circumstances requires an
extension of time for processing the claim. 
In such case, the Named Appeals Fiduciary shall notify the claimant of
the need for an extension of time to render its decision prior to the end of
the initial thirty (30) day period, and the Named Appeals Fiduciary shall have
an additional thirty (30) day period to make its determination.  The determination so rendered shall be
binding upon all parties as long as it is made in good faith.  If the determination is adverse to the claimant,
the notice shall provide (i) the reason or reasons for denial, (ii) make
specific reference to the Plan provisions on which the determination was based,
(iii) a statement that the claimant is entitled to receive, upon request and
free of charge, reasonable access to, and copies of, all documents, records and
other information relevant to a the claimant’s claim for benefits, and (iv)
state that the claimant has the right to bring an action under section 502(a)
of ERISA.

 

Section 10.04       Appointment of the Named Appeals
Fiduciary.  The
Named Appeals Fiduciary shall be the person or persons named as such by the
Board or Committee, or, if no such person or persons be named, then the person
or persons named by the Plan Administrator as the Named Appeals Fiduciary,
provided however, that effective on the date of a Change in Control, the Plan
Administrator shall also serve as the Named Appeals Fiduciary.  For periods before the date of a Change in
Control, Named Appeals Fiduciaries may at any time be removed by the Board or
Committee, and any Named Appeals Fiduciary named by the Plan Administrator may
be removed by the Plan Administrator. 
All such removals may be with or without cause and shall be effective on
the date stated in the notice of removal. 
The Named Appeals Fiduciary shall be a “Named Fiduciary” within the
meaning of ERISA, and unless appointed to other fiduciary responsibilities,
shall have no authority, responsibility, or liability with respect to any
matter other than the proper discharge of the functions of the Named Appeals
Fiduciary as set forth herein.

 

Section 10.05       Arbitration; Expenses.  In the event of any dispute under the
provisions of this Plan, other than a dispute in which the primary relief
sought is an equitable remedy such as an injunction, the parties shall have the
dispute, controversy or claim settled by arbitration in New York, New York (or
such other location as may be mutually agreed upon by the Employer and the
Participant) in accordance with the National Rules for the Resolution of
Employment Disputes then in effect of the American Arbitration Association,
before a panel of three arbitrators, two of whom shall be selected by the
Company and the Participant, respectively, and the third of whom shall be
selected by the other two arbitrators. 
Any award entered by the arbitrators shall be final, binding and
nonappealable and judgment may be entered thereon by either party in accordance
with applicable law in any court of competent jurisdiction.  This arbitration provision shall be
specifically enforceable.  The
arbitrators shall have no authority to modify any provision of this Plan or to
award a remedy for a dispute involving this Plan other than a benefit
specifically provided under or by virtue of the Plan.  If the Participant substantially prevails on
any material issue, which is the subject of such arbitration or lawsuit, the
Company shall be responsible for all of the fees of the American Arbitration
Association and the arbitrators and any expenses relating to the conduct of the
arbitration (including the Company’s and Participant’s reasonable attorneys’
fees and expenses).  Otherwise, each
party shall be 

 

22

 

responsible
for its own expenses relating to the conduct of the arbitration (including
reasonable attorneys’ fees and expenses) and shall share the fees of the
American Arbitration Association.

 

23

 

ARTICLE XI

MISCELLANEOUS

 

Section 11.01       Nonalienation of Benefits.  None of the payments, benefits or rights of
any Participant shall be subject to any claim of any creditor of any
Participant, and, in particular, to the fullest extent permitted by law, all
such payments, benefits and rights shall be free from attachment, garnishment
(if permitted under applicable law), trustee’s process, or any other legal or
equitable process available to any creditor of such Participant.  No Participant shall have the right to
alienate, anticipate, commute, plead, encumber or assign any of the benefits or
payments that he may expect to receive, continently or otherwise, under this
Plan, except for the designation of a beneficiary as set forth in Section 5.01.

 

Section 11.02       Notices.  All notices and other communications required
hereunder shall be in writing and shall be delivered personally or mailed by
registered or certified mail, return receipt requested, or by overnight express
courier service.  In the case of the
Participant, mailed notices shall be addressed to him or her at the home address
which he or she most recently communicated to the Company in writing.  In the case of the Company, mailed notices
shall be addressed to the Plan Administrator.

 

Section 11.03       Successors.  Any Successor shall assume the obligations
under this Plan and expressly agree to perform the obligations under this Plan.

 

Section 11.04       Other Payments.  Except as otherwise provided in this Plan, no
Participant shall be entitled to any cash payments or other severance benefits
under any of the Company’s then current severance pay policies for a
termination that is covered by this Plan for the Participant, including,
without limitation, the Executive Severance Plan.

 

Section 11.05       No Mitigation.  Except as otherwise provided in Section
4.01(d) and Section 4.04, Participants shall not be required to mitigate the
amount of any Severance Benefit provided for in this Plan by seeking other
employment or otherwise, nor shall the amount of any Severance Benefit provided
for herein be reduced by any compensation earned by other employment or
otherwise, except if the Participant is re-employed by Company, in which case
Severance Benefits shall cease.

 

Section 11.06       No Contract of Employment.  Neither the establishment of the Plan, nor
any modification thereof, nor the creation of any fund, trust or account, nor
the payment of any benefits shall be construed as giving any Eligible Employee
or any person whosoever, the right to be retained in the service of the
Company, and all Eligible Employees shall remain subject to discharge to the
same extent as if the Plan had never been adopted.

 

Section 11.07       Severability of Provisions.  If any provision of this Plan shall be held
invalid or unenforceable by a court of competent jurisdiction, such invalidity
or unenforceability shall not affect any other provisions hereof, and this Plan
shall be construed and enforced as if such provisions had not been included.

 

24

 

Section 11.08       Heirs, Assigns, and Personal
Representatives. 
This Plan shall be binding upon the heirs, executors, administrators,
successors and assigns of the parties, including each Participant, present and
future.

 

Section 11.09       Headings and Captions.  The headings and captions herein are provided
for reference and convenience only, shall not be considered part of the Plan,
and shall not be employed in the construction of the Plan.

 

Section 11.10       Gender and Number.  Where the context admits: words in any gender
shall include any other gender, and, except where otherwise clearly indicated
by context, the singular shall include the plural, and vice-versa.

 

Section 11.11       Unfunded Plan.  The Plan shall not be funded.  No Participant shall have any right to, or
interest in, any assets of the Company that may be applied by the Company to the
payment of Severance Benefits.

 

Section 11.12       Compliance with Code Section 409A.  The terms of this Plan are intended to, and
shall be interpreted and applied so as to, comply in all respects with the
provisions of Code Section 409A and regulations and rulings thereunder.  Any provision of this Plan governing the
timing or form of payment of benefits hereunder may be modified by the Plan
Administrator if and to the extent required in order to ensure such compliance
(by way of example and not limitation, to delay commencement of any benefits
payable hereunder that are subject to Code Section 409A until at least six
months following a Participant’s termination of employment).  Nothing in this provision shall be construed
as an admission that any of the benefits payable hereunder constitute “deferred
compensation” subject to the provisions of Code Section 409A.

 

Section 11.13       Payments to Incompetent Persons.  Any benefit payable to or for the benefit of
a minor, an incompetent person or other person incapable of receipting therefor
shall be deemed paid when paid to such person’s guardian or to the party
providing or reasonably appearing to provide for the care of such person, and
such payment shall fully discharge the Company, the Committee and all other
parties with respect thereto.

 

Section 11.14       Lost Payees.  A benefit shall be deemed forfeited if the
Committee is unable to locate a Participant to whom a Severance Benefit is
due.  Such Severance Benefit shall be
reinstated if application is made by the Participant for the forfeited
Severance Benefit while this Plan is in operation.

 

Section 11.15       Controlling Law.  This Plan shall be construed and enforced
according to the laws of the State of New York to the extent not superseded by
Federal law.

 

25

 

SCHEDULE
A

 

SEVERANCE
BENEFITS

SALARY
REPLACEMENT AND ANNUAL BONUS

 

	
  Chief Executive Officer

  	
   

  	
  3 times annual base salary and annual bonus

  
	
  Officers who are direct reports to the CEO

  	
   

  	
  2 times annual base salary and annual bonus

  
	
  Other Officers and Band 1 employees

  	
   

  	
  1.5 times annual base salary and annual bonus

  

 

A-1EXHIBIT
10.3

 

TYCO
ELECTRONICS CORPORATION SUPPLEMENTAL SAVINGS

AND
RETIREMENT PLAN

 

 

Adopted
by Tyco Electronics Corporation

as of
June 29, 2007

 

 

Table Of Contents

 

	
   

  	
   

  	
   

  	
  Page

  
	
  ARTICLE I

  	
   

  	
  PURPOSE

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  1.1

  	
   

  	
  Supplemental Savings and Retirement Plan

  	
  1

  
	
  1.2

  	
   

  	
  Benefits Under the Tyco SSRP and the Plan

  	
  1

  
	
  1.3

  	
   

  	
  Deferred Compensation Plan

  	
  1

  
	
  1.4

  	
   

  	
  Transferred Participant Elections under the Tyco
  SSRP

  	
  2

  
	
  1.5

  	
   

  	
  Compliance with Code Section 409A

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  	
  DEFINITIONS

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  2.1

  	
   

  	
  Account

  	
  2

  
	
  2.2

  	
   

  	
  Affiliated Company

  	
  2

  
	
  2.3

  	
   

  	
  Base Salary

  	
  3

  
	
  2.4

  	
   

  	
  Base Salary Deferral

  	
  3

  
	
  2.5

  	
   

  	
  Beneficiary(ies)

  	
  3

  
	
  2.6

  	
   

  	
  Board

  	
  3

  
	
  2.7

  	
   

  	
  Bonus Compensation

  	
  3

  
	
  2.8

  	
   

  	
  Bonus Compensation Deferral

  	
  3

  
	
  2.9

  	
   

  	
  Cause

  	
  3

  
	
  2.10

  	
   

  	
  Change of Control

  	
  3

  
	
  2.11

  	
   

  	
  Code

  	
  4

  
	
  2.12

  	
   

  	
  Company

  	
  4

  
	
  2.13

  	
   

  	
  Company Credit

  	
  5

  
	
  2.14

  	
   

  	
  Compensation

  	
  5

  
	
  2.15

  	
   

  	
  Compensation Deferral

  	
  5

  
	
  2.16

  	
   

  	
  Disability

  	
  5

  
	
  2.17

  	
   

  	
  Discretionary Credit

  	
  5

  
	
  2.18

  	
   

  	
  Effective Date

  	
  6

  
	
  2.19

  	
   

  	
  Eligible Employee

  	
  6

  
	
  2.20

  	
   

  	
  Enrollment and Payment Agreement

  	
  6

  
	
  2.21

  	
   

  	
  Exchange Act

  	
  6

  
	
  2.22

  	
   

  	
  Fiscal Year

  	
  6

  
	
  2.23

  	
   

  	
  In-Service Payment

  	
  6

  
	
  2.24

  	
   

  	
  Matching Credit

  	
  6

  
	
  2.25

  	
   

  	
  Maximum Matching Percentage

  	
  7

  
	
  2.26

  	
   

  	
  Measurement Funds

  	
  7

  
	
  2.27

  	
   

  	
  Participant

  	
  7

  
	
  2.28

  	
   

  	
  Plan

  	
  7

  
	
  2.29

  	
   

  	
  Plan Administrator

  	
  7

  
	
  2.30

  	
   

  	
  Plan Year

  	
  7

  
	
  2.31

  	
   

  	
  Responsible Company

  	
  7

  
	
  2.32

  	
   

  	
  Retirement

  	
  7

  
	
  2.33

  	
   

  	
  RSIP

  	
  7

  
	
  2.34

  	
   

  	
  RSIP Election

  	
  8

  
	
  2.35

  	
   

  	
  Separation

  	
  8

  
	
  2.36

  	
   

  	
  Spillover Deferrals

  	
  8

  

 

i

 

	
  2.37

  	
   

  	
  Termination Date

  	
  8

  
	
  2.38

  	
   

  	
  Termination Payment

  	
  8

  
	
  2.39

  	
   

  	
  TEL

  	
  8

  
	
  2.40

  	
   

  	
  Tyco SSRP

  	
  8

  
	
  2.41

  	
   

  	
  Year of Service

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  III

  	
   

  	
  ADMINISTRATION

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  3.1

  	
   

  	
  Plan Administrator

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  IV

  	
   

  	
  ELIGIBILITY FOR PARTICIPATION

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  4.1

  	
   

  	
  Current Participants

  	
  9

  
	
  4.2

  	
   

  	
  Future Employees

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  V

  	
   

  	
  BASIC DEFERRAL PARTICIPATION

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  5.1

  	
   

  	
  Election to Participate

  	
  9

  
	
  5.2

  	
   

  	
  Amount of Deferral Election

  	
  10

  
	
  5.3

  	
   

  	
  Deferral Limits

  	
  10

  
	
  5.4

  	
   

  	
  Period of Commitment

  	
  10

  
	
  5.5

  	
   

  	
  Change of Status

  	
  10

  
	
  5.6

  	
   

  	
  Vesting of Compensation Deferrals

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  VI

  	
   

  	
  SPILLOVER
  PARTICIPATION/MATCHING, COMPANY AND DISCRETIONARY CREDITS

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  6.1

  	
   

  	
  Spillover Election

  	
  10

  
	
  6.2

  	
   

  	
  Matching Credits

  	
  11

  
	
  6.3

  	
   

  	
  Company Credits

  	
  11

  
	
  6.4

  	
   

  	
  Discretionary Credits

  	
  12

  
	
  6.5

  	
   

  	
  Vesting of Matching, Company and Discretionary
  Credits

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  VII

  	
   

  	
  PARTICIPANT ACCOUNT

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  7.1

  	
   

  	
  Establishment of Account

  	
  12

  
	
  7.2

  	
   

  	
  Earnings (or Losses) on Account

  	
  13

  
	
  7.3

  	
   

  	
  Valuation of Account

  	
  13

  
	
  7.4

  	
   

  	
  Statement of Account

  	
  13

  
	
  7.5

  	
   

  	
  Payments from Account

  	
  13

  
	
  7.6

  	
   

  	
  Separate Accounting

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  VIII

  	
   

  	
  PAYMENTS TO PARTICIPANTS

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  8.1

  	
   

  	
  Annual Election

  	
  14

  
	
  8.2

  	
   

  	
  Change in Election

  	
  14

  

 

ii

 

	
  8.3

  	
   

  	
  Cash-Out Payments

  	
  14

  
	
  8.4

  	
   

  	
  Death or Disability Benefit

  	
  15

  
	
  8.5

  	
   

  	
  Valuation of Payments

  	
  15

  
	
  8.6

  	
   

  	
  Unforeseeable Emergency

  	
  15

  
	
  8.7

  	
   

  	
  Withholding Taxes

  	
  15

  
	
  8.8

  	
   

  	
  Effect of Payment

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  IX

  	
   

  	
  CLAIMS PROCEDURES

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  9.1

  	
   

  	
  Filing a Claim

  	
  16

  
	
  9.2

  	
   

  	
  Appeal of Denied Claims

  	
  17

  
	
  9.3

  	
   

  	
  Claim Limitation Period

  	
  18

  
	
  9.4

  	
   

  	
  Legal Action

  	
  19

  
	
  9.5

  	
   

  	
  Discretion of the Plan Administrator

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  X

  	
   

  	
  MISCELLANEOUS

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  10.1

  	
   

  	
  Protective Provisions

  	
  19

  
	
  10.2

  	
   

  	
  Inability to Locate Participant or Beneficiary

  	
  19

  
	
  10.3

  	
   

  	
  Designation of Beneficiary

  	
  19

  
	
  10.4

  	
   

  	
  No Contract of Employment

  	
  19

  
	
  10.5

  	
   

  	
  No Limitation on Company Actions

  	
  20

  
	
  10.6

  	
   

  	
  Obligations to Company

  	
  20

  
	
  10.7

  	
   

  	
  No Liability for Action or Omission

  	
  20

  
	
  10.8

  	
   

  	
  Nonalienation of Benefits

  	
  20

  
	
  10.9

  	
   

  	
  Liability for Benefit Payments

  	
  20

  
	
  10.10

  	
   

  	
  TEL Guarantee

  	
  21

  
	
  10.11

  	
   

  	
  Unfunded Status of Plan

  	
  21

  
	
  10.12

  	
   

  	
  Forfeiture for Cause

  	
  21

  
	
  10.13

  	
   

  	
  Governing Law

  	
  21

  
	
  10.14

  	
   

  	
  Severability of Provisions

  	
  21

  
	
  10.15

  	
   

  	
  Headings and Captions

  	
  22

  
	
  10.16

  	
   

  	
  Gender, Singular and Plural

  	
  22

  
	
  10.17

  	
   

  	
  Notice

  	
  22

  
	
  10.18

  	
   

  	
  Amendment and Termination

  	
  22

  
	
  10.19

  	
   

  	
  Delay of Payment for Specified Employees

  	
  22

  
	
  10.20

  	
   

  	
  Special Rule Regarding Election Changes in 2005,
  2006 and 2007

  	
  22

  

 

iii

 

TYCO
ELECTRONICS CORPORATION SUPPLEMENTAL SAVINGS AND

RETIREMENT
PLAN

 

ARTICLE I

Purpose

 

1.1           Supplemental Savings
and Retirement Plan. The name of this plan is the Tyco Electronics
Corporation Supplemental Savings and Retirement Plan. The Plan is effective as
of and is contingent upon the Separation and was created as a spin-off from and
a continuation of the Tyco Supplemental Savings and Retirement Plan (“Tyco SSRP”)
with respect to the Accounts of certain Participants who are aligned with the
Tyco Electronics business unit in conjunction with the separation of Tyco
Electronics Ltd. and its underlying subsidiaries from the Tyco International
Ltd. controlled group of corporations (the “Separation”). This Separation
results from a transaction whereby the public shareholders of Tyco
International Ltd. (“TIL”) will be issued stock dividends consisting of the
common stock of Tyco Electronics Ltd. and Covidien Ltd., as described in Forms
10 filed with the SEC by Tyco Electronics Ltd. and Covidien Ltd. on January 18,
2007. The Plan was also created to provide certain of the key employees of the
Company and the key employees of its parents, subsidiaries and affiliates with
the ability to defer receipt of compensation that would otherwise be payable to
them and to make up for amounts that could not be contributed on their behalf
as matching contributions under the Tyco Electronics Corporation Retirement
Savings and Investment Plan due to certain restrictions applicable under the
Internal Revenue Code of 1986, as amended.

 

1.2           Benefits Under the
Tyco SSRP and the Plan. With respect to each Participant (or Beneficiary,
as applicable) who participated in the Tyco SSRP prior to the Separation and
who was aligned with the Tyco Electronics business unit, Tyco International
Management Company shall transfer from the Tyco SSRP to such Participant’s or
Beneficiary’s Account under the Plan an amount equal to the value of the
notional accounts credited to the Participant or Beneficiary under the Tyco
SSRP immediately prior to such transfer. The transfer of the value of the
notional accounts pursuant to this paragraph shall be in lieu of maintaining
such credits and liabilities under the Tyco SSRP and such transfer shall occur as
of, and is contingent upon, the Separation.

 

Benefits for any Participant or Beneficiary that were
credited under the Tyco SSRP prior to the Effective Date and which were
transferred to this Plan will be determined in accordance with the provisions
of the Tyco SSRP, but paid in accordance with this Plan, unless modifications
to such transferred benefits are specifically provided by a subsequent
amendment to this Plan. Benefits credited on and after the Effective Date shall
be determined in accordance with the provisions of this Plan.

 

1.3           Deferred Compensation
Plan. The Company intends that the Plan shall at all times be maintained on
an unfunded basis for federal income tax purposes under the Code, and
administered as a non-qualified, “top hat” plan exempt from the substantive
requirements of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”). The provisions of this Plan shall apply to Base Salary Deferrals,
Bonus

 

1

 

Compensation Deferrals, Spillover Deferrals, Matching
Credits, Company Credits and Discretionary Credits and to any earnings credited
thereon.

 

1.4           Transferred
Participant Elections under the Tyco SSRP. The Accounts of Participants and
Beneficiaries that are transferred to the Plan from the Tyco SSRP in
conjunction with the Separation (“Transferred Participants”) shall be subject
to certain special terms and conditions as follows:

 

(a)           Beneficiary
Designation. Absent an affirmative election to the contrary, a Transferred
Participant’s election to designate a beneficiary(ies) under the Tyco SSRP
shall be deemed to be an election to designate the same beneficiary(ies) under
the Plan.

 

(b)           Enrollment and
Payment Agreement. A Transferred Participant’s Enrollment and Payment
Agreement under the Tyco SSRP prior to the Effective Date (i) shall be deemed
to be an election to make Compensation Deferrals under the Plan, (ii) shall be
deemed to be an election as to the timing and form of distribution for amounts
relating to the applicable Enrollment and Payment Agreement, and (iii) shall be
deemed to be an election to allocate his or her Account to certain Measurement
Funds under the Plan, as provided in Section 7.2 of the Plan.

 

(c)           Deferral Elections
for 2007. Irrevocable Compensation Deferral elections made under the Tyco
SSRP for the 2007 Plan Year shall be deemed to be elections to make irrevocable
Compensation Deferrals under the Plan for the 2007 Plan Year.

 

1.5           Compliance with Code
Section 409A. The terms of this Plan are intended to, and shall be
interpreted and applied so as to, comply in all respects with the provisions of
Code Section 409A and regulations and rulings thereunder.

 

ARTICLE II

Definitions

 

For ease of reference,
the following definitions will be used in the Plan:

 

2.1           Account. “Account”
means the bookkeeping account maintained on the books of the Company used
solely to calculate the amount payable to each Participant who defers
Compensation under this Plan or is otherwise entitled to a benefit under
Article VI and shall not constitute a separate fund of assets. The term “Account”
includes the value of amounts transferred from the Tyco SSRP in conjunction
with the Separation.

 

2.2           Affiliated Company.
“Affiliated Company” shall mean a United States (a) corporation which, together
with TEL, is a member of a controlled group of corporations (as defined in Section
414(b) of the Code), (b) trade or business (whether or not incorporated) which
is under common control (as defined in Section 414(c) of the Code) with TEL,
(c) corporation, partnership or other entity which, together with TEL, is a

 

2

 

member of an affiliated service group (as defined in
Section 414(m) of the Code), or (d) organization which is required to be
aggregated with TEL pursuant to regulations promulgated under Section 414(o) of
the Code.

 

2.3           Base Salary. “Base
Salary” means the annual rate of base salary paid to each Participant as of any
date of reference before any reduction for any amounts deferred by the
Participant pursuant to Section 401(k) or Section 125 of the Code, or pursuant
to this Plan or any other non-qualified plan which permits the voluntary
deferral of compensation.

 

2.4           Base Salary Deferral.
“Base Salary Deferral” means that portion of Base Salary as to which a
Participant has made an election to defer receipt pursuant to Article V.

 

2.5           Beneficiary(ies).
“Beneficiary” or “Beneficiaries” means the person or persons designated by the
Participant to receive payments under this Plan in the event of the Participant’s
death as provided in Section 10.3.

 

2.6           Board. “Board”
means the Board of Directors of TEL.

 

2.7           Bonus Compensation.
“Bonus Compensation” means any annual performance-based cash bonus or incentive
compensation payable to a Participant as of any date of reference before any
reduction for any amounts deferred by the Participant pursuant to Section
401(k) or Section 125 of the Code, or pursuant to this Plan or any other
non-qualified plan which permits the voluntary deferral of compensation. Bonus
Compensation shall not include any special or one-time bonus payment or any
amount paid under any equity incentive plan.

 

2.8           Bonus Compensation
Deferral. “Bonus Compensation Deferral” means that portion of Bonus
Compensation as to which a Participant has made an election to defer receipt
pursuant to Article V.

 

2.9           Cause. “Cause”
means a Participant’s (i) substantial failure or refusal to perform duties and
responsibilities of his or her job as required by the Company, (ii) violation
of any fiduciary duty owed to the Company, (iii) conviction of a felony or
misdemeanor, (iv) dishonesty, (v) theft, (vi) violation of Company rules or
policy, or (vii) other egregious conduct, that has or could have a serious and
detrimental impact on the Company and its employees. The Plan Administrator, in
its sole and absolute discretion, shall determine Cause. Examples of “Cause”
may include, but are not limited to, excessive absenteeism, misconduct,
insubordination, violation of Company policy, dishonesty, and deliberate
unsatisfactory performance (e.g., Employee refuses to improve deficient
performance).

 

2.10         Change of Control.
“Change of Control” means any of the following events:

 

(a)           any “person” (as
defined in Sections 13(d) and 14(d) of the Exchange Act), excluding for this
purpose (i) TEL or any subsidiary company (wherever incorporated) of TEL as
defined by Section 86 of the Companies Act

 

3

 

1981 of Bermuda, as amended (a “Subsidiary”) and (ii)
any employee benefit plan of TEL or any Subsidiary (or any person or entity
organized, appointed or established by TEL for or pursuant to the terms of any
such plan that acquires beneficial ownership of voting securities of TEL), is
or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange
Act) directly or indirectly of securities of TEL representing more than 30% of
the combined voting power of TEL’s then-outstanding securities; provided,
however, that no Change of Control will be deemed to have occurred as a result
of a change in ownership percentage resulting solely from an acquisition of
securities by TEL;

 

(b)           persons who, as of the
Amendment Effective Date, constitute the Board (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 TEL
subsequent to the Amendment Effective Date shall be considered an Incumbent
Director if such person’s election or nomination for election was approved by a
vote of at least 50% of the Incumbent Directors; but provided further that any
such person whose initial assumption of office is in connection with an actual
or threatened proxy contest relating to the election of members of the Board or
other actual or threatened solicitation of proxies or consents by or on behalf
of a “person” (as defined in Sections 13(d) and 14(d) of the Exchange Act)
other than the Board, 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)           consummation of a
reorganization, merger or consolidation or sale or other disposition of at
least 80% of the assets of TEL (a “Business Combination”), in each case,
unless, following such Business Combination, all or substantially all of the
individuals and entities who were the beneficial owners of outstanding voting
securities of TEL immediately prior to such Business Combination beneficially
own directly or indirectly more than 50% of the combined voting power of the
then-outstanding voting securities entitled to vote generally in the election
of directors, as the case may be, of the company resulting from such Business
Combination (including, without limitation, a company which, as a result of
such transaction, owns TEL or all or substantially all of TEL’s assets either
directly or through one or more Subsidiaries) in substantially the same
proportions as their ownership, immediately prior to such Business Combination,
of the outstanding voting securities of TEL; or

 

(d)           approval by the
stockholders of TEL of a complete liquidation or dissolution of TEL.

 

2.11         Code. “Code” means
the Internal Revenue Code of 1986, as amended (and any regulations thereunder).

 

2.12         Company. “Company”
means Tyco Electronics Corporation, a Pennsylvania corporation, and its
parents, subsidiaries, affiliates and successors

 

4

 

(excluding any parent, subsidiary or affiliate that has
not been approved by the Company for participation in this Plan). Where the
context so requires, “Company” used in reference to a Participant means the
specific entity that is part of the Company as defined herein that employs the
Participant at any relevant time.

 

2.13         Company Credit. “Company
Credit” means an amount credited by the Company for the benefit of a
Participant pursuant to Section 6.3.

 

2.14         Compensation. “Compensation”
means an Eligible Employee’s (i) Base Salary as in effect from time to time
during a Plan Year, (ii) Commission Compensation earned during a Plan Year and
(iii) Bonus Compensation earned for an applicable Fiscal Year. For purposes of
determining a Participant’s Company Credits under Section 6.3 and Discretionary
Credits under Section 6.4 for any Plan Year, Compensation shall include only
Base Salary, Bonus Compensation and Commission Compensation actually paid to
the Participant during such Plan Year. Moreover, for purposes of Spillover
Deferral elections under Section 6.1, Compensation shall not include Commission
Compensation. In no event shall any of the following items be treated as
Compensation hereunder: (i) payments from this Plan or any other Company
nonqualified deferred compensation plan; (ii) income from the exercise of
nonqualified stock options or from the disqualifying disposition of incentive
stock options, or realized upon vesting of restricted stock or the delivery of
shares in respect of restricted stock units (or other similar items of income
related to equity compensation grants or exercises); (iii) reimbursement for
moving expenses or other relocation expenses; (iv) mortgage interest
differentials; (v) payment for reimbursement of taxes; (vi) international
assignment premiums, allowances or other reimbursements; or (vii) any other
payments as determined by the Plan Administrator in its sole discretion.

 

2.15         Compensation Deferral.
“Compensation Deferral” means that portion of Compensation as to which a
Participant has made an annual irrevocable election to defer receipt pursuant
to Article V or Section 6.1. A Participant’s Compensation Deferral may consist
of Base Salary Deferrals, Bonus Compensation Deferrals, Spillover Deferrals, or
a combination thereof, as applicable to the Participant.

 

2.16         Disability. “Disability”
means that a Participant either (i) is unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last
for a continuous period of not less than 12 months, or (ii) by reason of any
medically determinable physical or mental impairment which can be expected to
result in death or can be expected to last for a continuous period of not less
than 12 months, is receiving (and has received for at least three months)
income replacement benefits under any Company-sponsored disability benefit plan.
A Participant who has been determined to be eligible for Social Security
disability benefits shall be presumed to have a Disability as defined herein.

 

2.17         Discretionary Credit.
“Discretionary Credit” means any amount credited to a Participant’s Account
under Section 6.4.

 

5

 

2.18         Effective Date. “Effective
Date” means the original effective date of the Plan, which is as of and
contingent upon the Separation.

 

2.19         Eligible Employee.
“Eligible Employee” for all purposes under this Plan other than eligibility for
a Company Credit under Section 6.3 includes any employee of the Company who is
(i) a U.S. citizen or a resident alien permanently assigned to work in the
United States, (ii) paid on the United States payroll (other than Puerto Rico),
(iii) either (a) subject to the requirements of Section 16(a) of the Exchange
Act, (b) included in career bands 1-3 of the Company’s pay scale, or (c)
included in career band 4 of the Company’s pay scale and nominated by the
Company for participation in this Plan, (iv) paid a Base Salary for a relevant
Plan Year that exceeds the “highly compensated employee” dollar threshold under
Code Section 414(q)(1)(B) for such year and (v) has management responsibility. Solely
for purposes of determining eligibility for Company Credits under Section 6.3, “Eligible
Employee” includes any employee of the Company who meets the requirements set
forth in (i) and (ii) above and who, for a relevant Plan Year, is paid
Compensation in excess of the limitation on includible compensation under
Section 401(a)(17) of the Code. Notwithstanding the foregoing, employees
eligible to participate in any “Non-U.S. Tyco Electronics Corporation
Retirement Plan” shall not be Eligible Employees for purposes of the Plan. A “Non-U.S.
Tyco Electronics Corporation Retirement Plan” is defined as any pension or
retirement plan, program or scheme established outside the United States of
America that is either sponsored by a non-US Tyco Electronics Corporation
Affiliated Company or is mandated by a governmental body or under the terms of
a bargaining agreement and shall include any termination or retirement
indemnity program and the national social security arrangements in Italy,
Portugal and Spain, but shall exclude national social security arrangements in
any other country.

 

2.20         Enrollment and Payment
Agreement. “Enrollment and Payment Agreement” means the authorization form
that an Eligible Employee files with the Plan Administrator to elect a
Compensation Deferral under the Plan for a Plan Year, and/or to elect the
timing and form of distribution for Company Credits or Discretionary Credits
for a Plan Year. An Enrollment and Payment Agreement may be filed in any form
so designated by the Plan Administrator, including electronically.

 

2.21         Exchange Act. “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

2.22         Fiscal Year. “Fiscal
Year” means the Company’s fiscal year, which is the 52- or 53-week period
ending on the Friday nearest September 30 of each calendar year.

 

2.23         In-Service Payment.
“In-Service Payment” has the meaning set forth in Section 8.1.

 

2.24         Matching Credit. “Matching
Credit” means an amount credited to a Participant’s Account under Section 6.2.

 

6

 

2.25         Maximum
Matching Percentage. “Maximum
Matching Percentage” for any Plan Year means the maximum matching contribution
percentage available under the RSIP for such Plan Year for an individual who
has the same Years of Service as the Participant (disregarding any limit on the
amount of matching contributions to the RSIP imposed as a result of the
operation of the limitations in Section 401(a)(17), Section 402(g) or Section
415(c) of the Code).

 

2.26         Measurement Funds.
“Measurement Funds” means one or more of the independently established funds or
indices that are identified by the Plan Administrator. These Measurement Funds
are used solely to calculate the earnings that are credited to each Participant’s
Account(s) in accordance with Article VII below, and do not represent any
beneficial interest on the part of the Participant in any asset or other
property of the Company. The determination of the increase or decrease in the
performance of each Measurement Fund shall be made by the Plan Administrator in
its reasonable discretion. Measurement Funds may be replaced, new funds may be
added, or both, from time to time in the discretion of the Plan Administrator;
provided that if the Measurement Funds hereunder correspond with funds
available for investment under the RSIP, then, unless the Plan Administrator
otherwise determines in its discretion, any addition, removal or replacement of
investment funds under the RSIP shall automatically result in a corresponding
change to the Measurement Funds hereunder.

 

2.27         Participant. “Participant”
means any employee who satisfies the eligibility requirements and has an
account set forth in Article IV or a former employee who has an Account that is
not fully distributed. In the event of the death or incompetency of a
Participant, the term means his or her personal representative or guardian.

 

2.28         Plan. “Plan” means
this Plan, entitled the Tyco Electronics Corporation Supplemental Savings and
Retirement Plan, as amended from time to time hereafter.

 

2.29         Plan Administrator.
“Plan Administrator” means the Benefits Administrative Committee, appointed by
the Board of Directors of Tyco Electronics Corporation to manage and administer
the Plan (or, where the context so requires, any delegate of the Plan
Administrator.)

 

2.30         Plan Year. “Plan
Year” means the 12 month period beginning on each January 1 and ending on the
following December 31.

 

2.31         Responsible Company.
“Responsible Company” has the meaning assigned to that term in Section 10.9.

 

2.32         Retirement. “Retirement”
means termination of Company employment (other than for Cause) (i) after
attaining age 55 and (ii) with a combination of age and Years of Service at
termination totaling at least 60.

 

2.33         RSIP. “RSIP” means
the Tyco Electronics Corporation Retirement Savings and Investment Plan (or its
immediate predecessor or any successor plan if the context so indicates)
applicable to a Participant.

 

7

 

2.34         RSIP Election. “RSIP
Election” means the percentage of the Participant’s compensation that he or she
has elected to contribute on a pre-tax basis to the RSIP for a Plan Year,
determined at the beginning of such Plan Year.

 

2.35         Separation. “Separation”
means a transaction whereby the public shareholders of Tyco International Ltd.
will be issued stock dividends consisting of the common stock of Tyco
Electronics Ltd. and Covidien Ltd., as described in Forms 10 filed with the SEC
by Tyco Electronics Ltd. and Covidien Ltd. on January 18, 2007. As a result of
the transaction, Covidien Ltd. and its underlying subsidiaries will no longer
be an Affiliated Company with respect to Tyco International Ltd. The Separation
occurred on June 29, 2007.

 

2.36         Spillover Deferrals.
“Spillover Deferrals” means Compensation Deferrals credited to the Account of a
Participant as a result of an election made for a Plan Year by such Participant
in accordance with the terms of Section 6.1.

 

2.37         Termination Date. “Termination
Date” means the last day of a Participant’s active employment with the Company
and all Affiliated Companies without regard to any compensation continuation
arrangement, as determined by the Plan Administrator in its sole discretion and
shall be determined in accordance with the provisions of Treasury Regulations
Section 1.409A-1(h)(1)(ii). A Participant who terminates active employment with
the Company during a Plan Year, and thereafter resumes active employment with
the Company or an Affiliated Company prior to the beginning of the next Plan
Year, shall not be deemed to have had a Termination Date hereunder with respect
to the first employment termination.

 

2.38         Termination Payment.
“Termination Payment” has the meaning set forth in Section 8.1.

 

2.39         TEL  “TEL” means Tyco Electronics Ltd., a Bermuda
corporation.

 

2.40         Tyco SSRP. “Tyco
SSRP” means the Tyco Supplemental Savings and Retirement Plan in effect on the
Separation.

 

2.41         Year of Service. “Year
of Service” means a Year of Service as determined under the RSIP.

 

ARTICLE III

Administration

 

3.1           Plan Administrator.
The Plan shall be administered by the Plan Administrator, which shall have full
discretionary power and authority to interpret the Plan; to prescribe, amend
and rescind any rules, forms and procedures as it deems necessary or
appropriate for the proper administration of the Plan; and to make any other
determinations, including factual determinations, and take such other actions
as it deems necessary or advisable in carrying out its duties under the Plan.

 

8

 

ARTICLE IV

Eligibility for Participation

 

4.1           Current Participants.
Any Eligible Employee who (i) elected to make Compensation Deferrals under Section
5.1 or 6.1 under the Tyco SSRP effective for the 2007 Plan Year or (ii) is
entitled to a Company Credit or a Discretionary Credit for the Plan Year which
contains the Effective Date shall be deemed a Participant as of the Effective
Date. An individual who is not otherwise an Eligible Employee as of the
Effective Date but who has an Account transferred to this Plan from the Tyco
SSRP shall also be deemed a Participant as of the Effective Date. An individual
shall remain a Participant until that individual has received full payment of
all amounts credited to the Participant’s Account.

 

4.2           Future Employees.
Any future Eligible Employee will be eligible to become a Participant for the
first full pay period following the date on which he makes an initial election
to participate or as soon as practicable thereafter (subject to any limitations
set forth herein).

 

ARTICLE V

Basic Deferral Participation

 

5.1           Election to
Participate. An Eligible Employee may elect, by filing an Enrollment and
Payment Agreement with the Plan Administrator or its designee, a Compensation
Deferral with respect to (i) Base Salary payable in a Plan Year and (ii) Bonus
Compensation earned for the Fiscal Year that ends within the Plan Year and
payable after the close of such Fiscal Year. Enrollment and Payment Agreements
for all such Compensation Deferrals for a Plan Year (or the Fiscal Year that
ends in such Plan Year) must be filed with the Plan Administrator on or before
the November 30 immediately preceding the first day of such Plan Year unless
otherwise permitted by the Plan Administrator in its sole discretion (but in
such case, in no event later than the December 31 immediately preceding the
first day of such Plan Year). An individual who first becomes an Eligible
Employee in any Plan Year may file an initial partial-year Enrollment and
Payment Agreement, no later than 30 days after first becoming an Eligible
Employee, which shall be applicable to Base Salary payable for the remainder of
such Plan Year (but only for pay periods following the filing of such election).
An individual who first becomes an Eligible Employee on or after December 1 of
any Plan Year but prior to December 31 of such Plan Year may file an initial
Enrollment and Payment Agreement, no later than such December 31, which shall
be applicable to Base Salary for the next Plan Year and/or Bonus Compensation
earned for the Fiscal Year that ends within the next Plan Year and payable
after the close of such Fiscal Year.

 

Notwithstanding the
foregoing, if an Eligible Employee attempts to file an Enrollment and Payment
Agreement election or take any other related action and is unable to do so due
to administrative error, or if an Eligible Employee’s Enrollment and Payment
Agreement election is not appropriately processed due to administrative error,
the Plan Administrator may, in its discretion, permit the error to be corrected
by allowing

 

9

 

the Eligible Employee to make a new Enrollment and
Payment Agreement election. Such election shall only be allowed to the extent
permitted under Code Section 409A and the regulations and rulings promulgated
thereunder.

 

5.2           Amount of Deferral
Election. Pursuant to each Enrollment and Payment Agreement for a Plan Year
a Participant shall irrevocably elect to defer as a whole percentage (i) up to
50% of his or her Base Salary for the applicable Plan Year (or remainder of the
Plan Year, as the case may be); and/or (ii) up to 100% of his or her Bonus
Compensation (net of required withholding) for the applicable Fiscal Year.

 

5.3           Deferral Limits.
The Plan Administrator may change the minimum or maximum deferral percentages
from time to time. Any such limits shall be communicated by the Plan
Administrator prior to the due date for the Enrollment and Payment Agreement. Amounts
deferred under this Plan will not constitute compensation for any
Company-sponsored qualified retirement plan.

 

5.4           Period of Commitment.
A Participant’s Enrollment and Payment Agreement as to a Compensation Deferral
shall remain in effect only for the immediately succeeding Plan or Fiscal Year
(or the remainder of the current year, as applicable), unless otherwise allowed
by the Plan Administrator in its sole discretion.

 

5.5           Change of Status.
If the Plan Administrator, in its sole discretion, determines that the
Participant no longer qualifies as an Eligible Employee, the Participant’s most
recent Compensation Deferral shall terminate with respect to compensation
earned after the effective date of such determination, and the employee shall
thereafter be prohibited from making Compensation Deferrals unless otherwise
determined by the Plan Administrator in its sole discretion.

 

5.6           Vesting of
Compensation Deferrals. Compensation Deferrals, and earnings credited
thereon, shall be 100% vested at all times (subject to Section 10.12).

 

ARTICLE VI

Spillover Participation/Matching, Company and Discretionary Credits

 

6.1           Spillover Election.
Any Eligible Employee may elect to make Spillover Deferrals for a Plan Year. Such
election may be made by filing an Enrollment and Payment Agreement with the
Plan Administrator on or before the November 30 immediately preceding the first
day of such Plan Year unless otherwise permitted by the Plan Administrator in
its sole discretion (but in such case, in no event later than the December 31
immediately preceding the first day of such Plan Year). Such election shall be
deemed an irrevocable commitment by such Participant to defer hereunder a
percentage of his or her periodic Compensation equal to the Participant’s RSIP
Election for such Plan Year, with such deferrals commencing at the time the
Participant’s pretax RSIP contributions are suspended for the Plan Year as the
result of the imposition of any limitation under applicable law or any
procedure established by the Plan Administrator in accordance with applicable
law and continuing for the remainder of the Plan Year; provided that a
Participant who elects to make Spillover Deferrals will be deemed to have

 

10

 

made a commitment to maintain his or her RSIP Election
in effect for the entire Plan Year (up to the time of such suspension) without
change.

 

Notwithstanding the
foregoing, if an Eligible Employee attempts to file an Enrollment and Payment
Agreement election or take any other related action and is unable to do so due
to administrative error, or if an Eligible Employee’s Enrollment and Payment
Agreement election is not appropriately processed due to administrative error,
the Plan Administrator may, in its discretion, permit the error to be corrected
by allowing the Eligible Employee to make a new Enrollment and Payment
Agreement election. Such election shall only be allowed to the extent permitted
under Code Section 409A and the regulations and rulings promulgated thereunder.

 

6.2           Matching Credits.
An Eligible Employee who has elected to make Compensation Deferrals for a Plan
Year shall receive Matching Credits, equal to the Participant’s Maximum
Matching Percentage multiplied by (i) the dollar amount of the Participant’s
Compensation Deferrals under Section 5.1 for such Plan Year on Compensation up
to the applicable annual dollar limitation set forth in Section 401(a)(17) of
the Code, and (ii) the amount of Compensation for such Plan Year from which
Spillover Deferrals (if any) are made under Section 6.1 (disregarding any such
Compensation that exceeds the applicable annual dollar limitation set forth in
Section 401(a)(17) of the Code). Matching Credits shall be credited to a
Participant’s Account at such time or times as may be determined by the Plan
Administrator in its sole discretion, but in no event less frequently than
annually.

 

6.3           Company Credits.
A Participant who is an Eligible Employee for purposes of this Section 6.3 for
any Plan Year shall receive Company Credits for such Plan Year in an amount
equal to the Participant’s Maximum Matching Percentage for such Plan Year
multiplied by the Participant’s Compensation in excess of the annual dollar
limitation set forth in Section 401(a)(17) of the Code for such Plan Year. Company
Credits shall be credited to a Participant’s Account at such time or times as
may be determined by the Plan Administrator in its sole discretion, but in no
event less frequently than annually, as of the last day of a Plan Year. A
Participant who has elected to make Compensation Deferrals for a Plan Year, and
who receives a Company Credit for such Plan Year, shall have the portion of his
or her Account attributable to such Company Credit, if vested, distributed as
specified in his or her Enrollment and Payment Agreement for such Plan Year. A
Participant who has not elected to make Compensation Deferrals for a Plan Year,
but who receives a Company Credit for such Plan Year (and has not previously
received any Company Credit under the Plan), shall file with the Plan
Administrator an Enrollment and Payment Agreement as soon as practicable (but
no later than 30 days) after becoming eligible for such Company Credit,
electing the timing and form of payment of the portion of the Participant’s
Account attributable to such Company Credit, if vested. Such election shall be
deemed to apply also to any Company Credit received in any future Plan Year for
which the Participant does not have in effect an Enrollment and Payment
Agreement. If such Participant does not file an Enrollment and Payment
Agreement by the date specified by the Plan Administrator, he or she shall be
deemed to have elected to have the portion of his or her Account attributable
to such Company Credit, and each Company Credit received in a future Plan Year
for which the

 

11

 

Participant does not have in effect an Enrollment and
Payment Agreement, paid (if vested) as an In-Service Payment in a single lump
sum in the fifth Plan Year following the Plan Year for which each such Company
Credit was received.

 

6.4           Discretionary
Credits. A Participant who is an Eligible Employee for any Plan Year may
receive a Discretionary Credit for such Plan Year. Such credit shall be in such
amount as may be determined by the Company in its sole discretion, and shall be
credited to the Participant’s Account at such time or times as may be
determined by the Company in its sole discretion. A Participant who has elected
to make Compensation Deferrals for a Plan Year, and who receives a
Discretionary Credit for such Plan Year, shall have the portion of his or her
Account attributable to such Discretionary Credit (if vested) distributed as
specified in his or her Enrollment and Payment Agreement for such Plan Year. A
Participant who has not elected to make Compensation Deferrals for a Plan Year,
but who receives a Discretionary Credit for such Plan Year (and has not
previously received any Discretionary Credit under the Plan), shall file with
the Plan Administrator an Enrollment and Payment Agreement as soon as
practicable (but no later than 30 days) after becoming eligible for such
Discretionary Credit, electing the timing and form of payment of the portion of
the Participant’s Account attributable to such Discretionary Credit (if vested).
Such election shall be deemed to apply also to any Discretionary Credit
received in any future Plan Year for which the Participant does not have in
effect an Enrollment and Payment Agreement. If such Participant does not file
an Enrollment and Payment Agreement by the date specified by the Plan
Administrator, he or she shall be deemed to have elected to have the portion of
his or her Account attributable to such Discretionary Credit, and each
Discretionary Credit received in a future Plan Year for which the Participant
does not have in effect an Enrollment and Payment Agreement, paid (if vested)
as an In-Service Payment in a single lump sum in the fifth Plan Year following
the Plan Year for which each such Discretionary Credit was received.

 

6.5           Vesting of Matching,
Company and Discretionary Credits. The portion of a Participant’s Account
attributable to Matching Credits and Company Credits shall become 100% vested
upon the completion of three Years of Service (subject to Section 10.12). The
portion of a Participant’s Account attributable to Matching Credits and Company
Credits shall also become 100% vested (i) if his or her employment terminates
by reason of his or her death, Disability or Retirement, or (ii) upon the
occurrence of a Change of Control (subject in each case to Section 10.12). The
portion of a Participant’s Account attributable to Discretionary Credits shall
become 100% vested upon the date and/or upon the occurrence of the event(s)
specified by the Company in its sole discretion (subject to Section 10.12).

 

ARTICLE VII

Participant Account

 

7.1           Establishment of
Account. The Plan Administrator shall establish and maintain an Account
with respect to each Participant’s annual Compensation Deferrals, Matching
Credits, Company Credits, and/or Discretionary Credits hereunder, as
applicable, and amounts directly transferred from the Tyco SSRP as of the
Effective

 

12

 

Date, if any, on behalf of such Participant. Compensation
Deferrals pursuant to Section 5.1 and Spillover Deferrals pursuant to Section
6.1 shall be credited by the Plan Administrator to the Participant’s Account as
soon as practicable after the date on which such Compensation would otherwise
have been paid, in accordance with the Participant’s election. The Participant’s
Account shall be reduced by the amount of payments made to the Participant or
the Participant’s Beneficiary pursuant to this Plan and by any forfeitures.

 

7.2           Earnings (or Losses)
on Account. Participants must designate, on an Enrollment and Payment
Agreement or by such other means as may be established by the Plan
Administrator, the portion of the credits to their Account that shall be
allocated among the various Measurement Funds. In default of such designation,
credits to a Participant’s Account shall be allocated to one or more default
Measurement Funds as determined by the Plan Administrator in its sole
discretion. A Participant’s Account shall be credited with all deemed earnings
(or losses) generated by the Measurement Funds, as elected by the Participant,
on each business day for the sole purpose of determining the amount of earnings
to be credited or debited to such Account as if the designated balance of the
Account had been invested in the applicable Measurement Fund. Notwithstanding
that the rates of return credited to a Participant’s Accounts are based upon
the actual performance of the corresponding Measurement Funds, the Company
shall not be obligated to invest any amount credited to a Participant’s Account
under this Plan in such Measurement Funds or in any other investment funds. Upon
notice to the Plan Administrator in the manner it prescribes, a Participant may
reallocate the Funds to which his or her Account is deemed to be allocated.

 

7.3           Valuation of Account.
The value of a Participant’s Account as of any date shall equal the amounts
theretofore credited to such Account, including any earnings (positive or
negative) deemed to be earned on such Account in accordance with Section 7.2,
less the amounts theretofore deducted from such Account.

 

7.4           Statement of Account.
The Plan Administrator shall provide or make available to each Participant
(including electronically), not less frequently than quarterly, a statement in
such form as the Plan Administrator deems desirable setting forth the balance
standing to the credit of his or her Account.

 

7.5           Payments from
Account. Any payment made to or on behalf of a Participant from his or her
Account in an amount which is less than the entire balance of his or her
Account shall be made pro rata from each of the Measurement Funds to which such
Account is then allocated.

 

7.6           Separate Accounting.
If and to the extent required for the proper administration of the vesting or
payments provisions of the Plan, the Plan Administrator may segregate a
Participant’s Account into subaccounts on the books and records of the Plan,
all of which subaccounts shall, together, constitute the Participant’s Account.

 

13

 

ARTICLE VIII

Payments to Participants

 

8.1           Annual Election.
Except as otherwise provided in Section 6.3, 6.4, 8.3 or 8.4, any portion of
the Participant’s Account attributable to his or her Compensation Deferrals,
vested Matching Credits, vested Company Credits or vested Discretionary Credits
for a Plan Year shall be distributed as a payment to be made or to commence
following the Participant’s Termination Date (“Termination Payment”) or as a
payment to be made or to commence at a specified date, without reference to the
Participant’s termination of employment (an “In-Service Payment”). Termination
Payments and In-Service Payments shall be made by one of the following methods,
as elected by the Participant in the Enrollment and Payment Agreement filed
with the Plan Administrator for such Plan Year: (i) one lump sum; or (ii)
annual installments payable over a maximum of 15  years.
A Termination Payment shall be made, or shall commence, on or as soon as
practicable after March 1 of the year following the year in which the
Participant’s Termination Date occurs. An In-Service Payment shall be made, or
shall commence, on or as soon as practicable after March 1st of the payment
year designated by the Participant in the applicable Enrollment and Payment
Agreement, which year shall be no earlier than the fifth Plan Year following
the Plan Year for which the initial filing of the Enrollment and Payment
Agreement was made with respect to that In-Service Payment (provided, that if
the Participant’s employment terminates before the scheduled payment year for
one or more In-Service Payments, and the Participant is not reemployed before
the last day of the year in which such termination occurs, such payment shall
instead be made, or shall commence, on or as soon as practicable after March 1
of the year following the year in which the Participant’s Termination Date
occurs).

 

8.2           Change in Election.
Subject to Section 10.20, a Participant may change the payment date and/or the
form of an existing In-Service Payment election for a Plan Year by filing a new
payment election, in the form specified by the Plan Administrator, at least 12
months prior to the original payment date (in the case of installment payments,
the date of the first scheduled installment payment), provided that such new
election delays the payment year by at least five years from the original
payment year, and provided, further, that such change in election shall not be
effective until 12 months from the date it is filed. No change in payment date
or form of payment may be made with respect to a Termination Payment once
elected. In addition, a Participant’s reemployment following the commencement
of installment payments shall not cause any suspension or interruption in such
installment payments.

 

8.3           Cash-Out Payments.
Notwithstanding any election made under Section 8.1 or Section 8.2, if (i) the
total value of the Participant’s Account on the first day of the Plan Year
following his or her Termination Date is less than $5000, or (ii) the
Participant’s termination is due to voluntary resignation (other than
Retirement or Disability), then the Participant’s Account shall be paid to the
Participant in one lump sum on or as soon as practicable after March 1 of the
year following the year in which the Participant’s Termination Date occurs.

 

14

 

8.4           Death or Disability
Benefit. Upon the death or Disability of a Participant, the Participant or
the Participant’s Beneficiary, as applicable, shall be paid the balance in his
or her Account in the form of a lump sum payment, with such payment to be made
as soon as practicable after the calendar quarter in which occurs such
Participant’s death or Disability. Such payment shall be in an amount equal to
the value of the Participant’s Account of the last day of the calendar quarter
following the Participant’s death or Disability, with the Measurement Funds
being deemed to have been liquidated on that date to make the payment.

 

8.5           Valuation of
Payments. Any lump sum benefit under Sections 8.1, 8.2 or 8.3 shall be
payable in an amount equal to the value of the Participant’s Account (or
relevant portion thereof) as of the December 31 preceding the relevant payment
date, with the Measurement Funds being deemed to have been liquidated on that date
to make the payment. The first annual installment payment in a series of
installment payments shall be equal to (i) the value of the Participant’s
Account (or relevant portion thereof) as of the December 31 preceding the
relevant payment date, with the Measurement Funds being deemed to have been
liquidated on that date to make the payment, divided by (ii) the number of
installment payments elected by the Participant. The remaining installments
shall be paid in an amount equal to (a) the value of such Account (or relevant
portion thereof) as of the December 31 preceding the relevant payment date,
with the Measurement Funds being deemed to have been liquidated on that date to
make the payment, divided by (b) the number of remaining unpaid installment payments.

 

8.6           Unforeseeable
Emergency. In the event that the Plan Administrator, upon written request
of a Participant, determines that the Participant has suffered an “unforeseeable
emergency” within the meaning of Code Section 409A(a)(2)(B)(ii), the Participant
shall be paid from that portion of his or her Account resulting from
Compensation Deferrals, as soon as practicable following such determination, an
amount necessary to meet the emergency, after  deduction
of any and all taxes as may be required pursuant to Section 8.7 (but in no
event to exceed the maximum permitted amount determined under Code Section
409A(a)(2)(B)(ii)).

 

8.7           Withholding Taxes.
The Company may make such provisions and take such action as it may deem
necessary or appropriate for the withholding of any taxes which the Company is
required by any law or regulation of any governmental authority, whether
federal, state or local, to withhold in connection with any benefits under the
Plan, including, but not limited to, the withholding of appropriate sums from
any amount otherwise payable to the Participant (or his or her Beneficiary). Each
Participant, however, shall be responsible for the payment of all individual
tax liabilities relating to any such benefits.

 

8.8           Effect of Payment.
The full payment of the applicable benefit under this Article VIII shall
completely discharge all obligations on the part of the Company to the
Participant (and each Beneficiary) with respect to the operation of this Plan,
and the Participant’s (and Beneficiary’s) rights under this Plan shall
terminate.

 

15

 

ARTICLE IX

Claims Procedures

 

9.1           Filing a Claim. Any
controversy or claim arising out of or relating to the Plan shall be filed in
writing with the Plan Administrator in accordance with the Plan Administrator’s
procedures. The Plan Administrator shall make all determinations concerning
such claim. Any decision by the Plan Administrator denying such claim shall be
in writing using language calculated to be understood by the Participant and
shall be delivered to the Participant or Beneficiary filing the claim (“Claimant”).

 

(a)           In General. Notice
of a denial of benefits (other than Disability benefits) will be provided
within 90 days of the Plan Administrator’s receipt of the Claimant’s claim for
benefits. If the Plan Administrator determines that it needs additional time to
review the claim, the Plan Administrator will provide the Claimant with a
notice of the extension before the end of the initial 90-day period. The
extension will not be more than 90 days from the end of the initial 90-day
period and the notice of extension will explain the special circumstances that
require the extension and the date by which the Plan Administrator expects to
make a decision.

 

(b)           Disability Benefits.
Notice of denial of Disability benefits will be provided within 45 days of the
Plan Administrator’s receipt of the Claimant’s claim for Disability benefits
(unless such period is extended, as provided below). If the Plan Administrator
determines that it needs additional time to review the Disability claim, the
45-day period may be extended by the Plan Administrator for up to 30 days. The
Plan Administrator will provide the Claimant with a notice of the extension
before the end of the initial 45-day period. If the Plan Administrator
determines that a decision cannot be made within the first 30-day extension due
to matters beyond the control of the Plan Administrator, the period for making
a determination may be further extended for an additional 30 days. If such an
additional extension is necessary, the Plan Administrator shall notify the
Claimant prior to the expiration of the initial 30-day extension. Any notice of
extension shall indicate the circumstances necessitating the extension of time,
the date by which the Plan Administrator expects to furnish a notice of
decision, the standards on which entitlement to a benefit is based, the
unresolved issues that prevent a decision on the claim, and any additional
information needed to resolve those issues. A Claimant will be provided a
minimum of 45 days to submit any necessary additional information to the Plan
Administrator. In the event that a 30-day extension is necessary due to a
Claimant’s failure to submit information necessary to decide a claim, the
period for furnishing a notice of decision shall be tolled from the date on
which the notice of the extension is sent to the Claimant until the earlier of
the date the Claimant responds to the request for additional information or the
response deadline.

 

(c)           Contents of Notice.
If a claim for benefits is completely or partially denied, notice of such
denial shall include a written explanation, using language calculated to be
understood by the Participant.

 

16

 

(i)            The decision shall set
forth (a) the specific reason or reasons for such denial, (b) specific
reference(s) to the relevant provision(s) of this Plan on which such denial is
based, (c) a description, where appropriate, as to how the Claimant can perfect
the claim, including a description of any additional material or information
necessary to complete the claim and why such material or information is
necessary, (d) the appropriate information as to the steps to be taken if the
Participant wishes to submit the claim for review, (e) the time limits for
requesting a review under Section 9.2, and (f) a statement of the Claimant’s
right to bring a civil action under Section 502(a) of ERISA following an
adverse decision on review.

 

(ii)           In the case of a
complete or partial denial of a Disability benefit claim, the notice shall also
provide a statement that the Plan Administrator will provide to the Claimant,
upon request and free of charge, a copy of any internal rule, guideline,
protocol, or other similar criterion that was relied upon in making the
decision.

 

9.2           Appeal of Denied
Claims. A Claimant whose claim has been completely or partially denied
shall be entitled to appeal the claim denial by filing a written appeal with
the Plan Administrator within the deadlines described below. A Claimant (or his
or her authorized representative) who timely requests a review of the denied
claim may review, upon request and free of charge, copies of all documents,
records and other information relevant to the denial and may submit written
comments, documents, records and other information relevant to the claim to the
Plan Administrator. All written comments, documents, records, and other
information shall be considered “relevant” if the information (a) was relied
upon in making a benefits determination, (b) was submitted, considered or
generated in the course of making a benefits decision regardless of whether it
was relied upon to make the decision, or (c) demonstrates compliance with
administrative processes and safeguards established for making benefit
decisions. The Plan Administrator may, in its sole discretion and if it deems
appropriate or necessary, decide to hold a hearing with respect to the claim
appeal.

 

(a)           In General. Appeal
of a denied benefits claim (other than a Disability benefits claim) must be
filed in writing with the Plan Administrator no later than 60 days after
receipt of the written notification of such claim denial. The Plan
Administrator shall make its decision regarding the merits of the denied claim
within 60 days following receipt of the appeal (or within 120 days after such
receipt in a case where there are special circumstances requiring an extension
of time for reviewing the appealed claim). If an extension of time for
reviewing the appeal is required, notice of the extension shall be furnished to
the Claimant prior to the commencement of the extension. The notice will
indicate the special circumstances requiring the extension of time and the date
by which the Plan Administrator expects to render the determination on review. The
review will take into account comments, documents, records and other
information submitted by the Claimant relating to the claim without regard to
whether such information was submitted or considered in the initial benefit
determination.

 

17

 

(b)           Disability Benefits.
Appeal of a denied Disability benefits claim must be filed in writing with the
Plan Administrator no later than 180 days after receipt of the notification of
such claim denial. The review shall be conducted by the Plan Administrator
(exclusive of the person who made the initial adverse decision or such person’s
subordinate). In reviewing the appeal, the Plan Administrator shall (1) not
afford deference to the initial denial of the claim, (2) consult a medical
professional who has appropriate training and experience in the field of
medicine relating to the Claimant’s disability and who was neither consulted as
part of the initial denial nor is the subordinate of such individual, and (3)
identify the medical or vocational experts whose advice was obtained with
respect to the initial benefit denial, without regard to whether the advice was
relied upon in making the decision. The Plan Administrator shall make its
decision regarding the merits of the denied claim within 45 days following
receipt of the appeal or within 90 days after such receipt, in a case where
there are special circumstances requiring an extension of time for reviewing
the appealed claim. If an extension of time for reviewing the appeal is
required because of special circumstances, written notice of the extension
shall be furnished to the Claimant prior to the commencement of the extension.
The notice will indicate the special circumstances requiring the extension of
time and the date by which the Plan Administrator expects to render the
determination on review. Following its review of any additional information
submitted by the Claimant, the Plan Administrator shall render a decision on
its review of the denied claim.

 

(c)           Contents of Notice.
If a benefits claim is completely or partially denied on review, notice of such
denial shall set forth the reasons for denial in language calculated to be
understood by the Participant.

 

(i)            The decision on review
shall set forth (a) the specific reason or reasons for the denial, (b) specific
reference(s) to the relevant provision(s) of this Plan on which the denial is
based, (c) a statement that the Claimant is entitled to receive, upon request
and free of charge, reasonable access to and copies of all documents, records,
or other information relevant (as defined above) to the Claimant’s claim, and
(d) a statement of the Claimant’s right to bring an action under Section 502(a)
of ERISA.

 

(ii)           For the denial of a
Disability benefit, the notice will also include a statement that the Plan
Administrator will provide, upon request and free of charge:  (a) any internal rule, guideline, protocol or
other similar criterion relied upon in making the decision, and (b) any medical
opinion relied upon to make the decision.

 

9.3           Legal Action. A
Claimant may not bring any legal action relating to a claim for benefits under
the Plan unless and until the Claimant has followed the claims procedures under
the Plan and exhausted his or her administrative remedies under such claims
procedures.

 

18

 

9.4           Discretion of the
Plan Administrator. All interpretations, determinations and decisions of
the Plan Administrator with respect to any claim shall be made in its sole
discretion, and shall be final and conclusive.

 

ARTICLE X

Miscellaneous

 

10.1         Protective Provisions.
Each Participant and Beneficiary shall cooperate with the Plan Administrator by
furnishing any and all information requested by the Plan Administrator in order
to facilitate the payment of benefits hereunder. If a Participant or
Beneficiary refuses to cooperate with the Plan Administrator, the Company shall
have no further obligation to the Participant or Beneficiary under the Plan,
other than payment of the then-current balance of the Participant’s Accounts in
accordance with prior elections and subject to Section 10.12.

 

10.2         Inability to Locate
Participant or Beneficiary. In the event that the Plan Administrator is
unable to locate a Participant or Beneficiary within two years following the
date the Participant was to commence receiving payment, the entire amount
allocated to the Participant’s Account shall be forfeited. If, after such
forfeiture, the Participant or Beneficiary later claims such benefit, such
benefit shall be reinstated without interest or earnings from the date payment
was to commence pursuant to Article VIII.

 

10.3         Designation of
Beneficiary. Each Participant may designate in writing a Beneficiary or
Beneficiaries (which Beneficiary may be an entity other than a natural person
if approved by the Plan Administrator in its sole discretion) to receive any
payments which may be made under the Plan following the Participant’s death. No
Beneficiary designation shall become effective until it is in writing and it is
filed with the Plan Administrator. A Beneficiary designation under the Plan may
be separate from all other retirement-type plans sponsored by the Company. Such
designation may be changed or canceled by the Participant at any time without
the consent of any such Beneficiary. Any such designation, change or
cancellation must be made in a form approved by the Plan Administrator and
shall not be effective until received by the Plan Administrator or its designee.
If no Beneficiary has been named, or the designated Beneficiary or
Beneficiaries have predeceased the Participant, the Beneficiary shall be the
Participant’s estate. If a Participant designates more than one Beneficiary,
the interests of such Beneficiaries shall be paid in equal shares, unless the
Participant has specifically designated otherwise.

 

10.4         No Contract of
Employment. Neither the establishment of the Plan, nor any modification
thereof, nor the creation of any fund, trust or account, nor the payment of any
benefits shall be construed as giving any Participant, or any person whosoever,
the right to be retained in the service of the Company, and all Participants
and other employees shall remain subject to discharge to the same extent as if
the Plan had never been adopted.

 

19

 

10.5         No Limitation on
Company Actions. Nothing contained in the Plan shall be construed to
prevent the Company from taking any action which is deemed by it to be
appropriate or in its best interest. No Participant, Beneficiary, or other
person shall have any claim against the Company as a result of such action.

 

10.6         Obligations to Company.
If a Participant becomes entitled to a payment of benefits under the Plan, and
if at such time the Participant has outstanding any debt, obligation, or other
liability representing an amount owing to the Company, then the Company may
offset such amount owed to it against the amount of benefits otherwise
distributable. Such determination shall be made by the Plan Administrator in
its sole discretion.

 

10.7         No Liability for
Action or Omission. Neither the Company nor any director, officer or
employee of the Company shall be responsible or liable in any manner to any
Participant, Beneficiary or any person claiming through them for any benefit or
action taken or omitted in connection with the granting of benefits, the
continuation of benefits, or the interpretation and administration of this
Plan.

 

10.8         Nonalienation of
Benefits. Except as otherwise specifically provided herein, all amounts
payable hereunder shall be paid only to the person or persons designated by the
Plan and not to any other person or corporation. No part of a Participant’s
Account shall be liable for the debts, contracts, or engagements of any
Participant, or his or her Beneficiary or successors in interest, nor shall
such accounts of a Participant be subject to execution by levy, attachment, or
garnishment or by any other legal or equitable proceeding, nor shall any such
person have any right to alienate, anticipate, commute, pledge, encumber, or
assign any benefits or payments hereunder in any manner whatsoever. If any
Participant, Beneficiary or successor in interest is adjudicated bankrupt or
purports to anticipate, alienate, sell, transfer, assign, pledge, encumber or
charge any payment from the Plan, voluntarily or involuntarily, the Plan
Administrator, in its discretion, may cancel such payment (or any part thereof)
to or for the benefit of such Participant, Beneficiary or successor in interest
in such manner as the Plan Administrator shall direct. Notwithstanding the
foregoing, all or a portion of a Participant’s Account may be awarded to an “alternate
payee” (within the meaning of Section 206(d)(3)(K) of ERISA) if and to the
extent so provided in a judgment, decree or order that, in the Committee’s sole
discretion, would meet the applicable requirements for qualification as a “qualified
domestic relations order” (within the meaning of Section 206(d)(3)(B)(i) of
ERISA) if the Plan were subject to the provisions of Section 206(d) of ERISA.

 

10.9         Liability for Benefit
Payments. The obligation to pay or provide for payment of a benefit
hereunder to any Participant or his or her Beneficiary shall, at all times, be
the sole and exclusive liability and responsibility of the company that
employed the Participant immediately prior to the event giving rise to a
payment obligation (the “Responsible Company”). No other company or parent,
affiliated, subsidiary or associated company shall be liable or responsible for
such payment, and nothing in this Plan shall be construed as creating or
imposing any joint or shared liability for any such payment (other than the TEL
guarantee set forth in Section 10.10 below). The fact that a 

 

20

 

company or a parent, affiliated, subsidiary or
associated company other than the Responsible Company actually makes one or
more payments to a Participant or his or her Beneficiary shall not be deemed a
waiver of this provision; rather, any such payment shall be deemed to have been
made on behalf of and for the account of the Responsible Company.

 

10.10       TEL Guarantee. TEL
guarantees the payment by the Responsible Company (as defined in Section 10.9)
of any benefits provided for or contemplated under this Plan which either (i)
the Responsible Company concedes are due and owing to a Participant or
Beneficiary or (ii) are finally determined to be due and owing to a Participant
or Beneficiary, but which in either case the Responsible Company fails to pay.

 

10.11       Unfunded Status of Plan.
The Plan is intended to constitute an “unfunded” deferred and supplemental
retirement compensation plan for Participants, with all benefits payable
hereunder constituting an unfunded contractual payment obligation of the
Company. Nothing contained in the Plan, and no action taken pursuant to the
Plan, shall create or be construed to create a trust of any kind. The Company
shall reflect on its books the Participants’ interests hereunder, but no
Participant or any other person shall under any circumstances acquire any
property interest in any specific assets of the Company. Nothing contained in
this Plan and no action taken pursuant hereto shall create or be construed to
create a fiduciary relationship between the Company and any Participant or
other person. A Participant’s right to receive payments under the Plan shall be
no greater than the right of an unsecured general creditor of the Company. Except
to the extent that the Company determines that a “rabbi” trust may be
established in connection with the Plan, all payments shall be made from the
general funds of the Company, and no special or separate fund shall be
established and no segregation of assets shall be made to assure payment. The Company’s
obligations under this Plan are not assignable or transferable except to (i)
any corporation or partnership which acquires all or substantially all of the
Company’s assets or (ii) any corporation or partnership into which the Company
may be merged or consolidated. The provisions of the Plan shall inure to the
benefit of each Participant and the Participant’s Beneficiaries, heirs,
executors, administrators or successors in interest.

 

10.12       Forfeiture for Cause.
Notwithstanding any other provision of this Plan, if a Participant’s employment
is terminated for Cause, or if the Plan Administrator determines that a
Participant whose employment terminates for any other reason had engaged in
conduct prior to his or her termination which would have constituted Cause,
then the Plan Administrator may determine in its sole discretion that such
Participant’s Account under the Plan shall be forfeited and shall not be
payable hereunder.

 

10.13       Governing Law. This
Plan shall be construed in accordance with and governed by the laws of the
Commonwealth of Pennsylvania to the extent not superseded by federal law,
without reference to the principles of conflict of laws.

 

10.14       Severability of
Provisions. If any provision of this Plan shall be held invalid or
unenforceable, such invalidity or unenforceability shall not affect any other

 

21

 

provisions hereof, and this Plan shall be construed
and enforced as if such provisions had not been included.

 

10.15       Headings and Captions.
The headings and captions herein are provided for reference and convenience
only, shall not be considered part of the Plan, and shall not be employed in
the construction of the Plan.

 

10.16       Gender, Singular and
Plural. All pronouns and any variations thereof shall be deemed to refer to
the masculine, feminine, or neuter, as the identity of the person or persons
may require. As the context may require, the singular may read as the plural
and the plural as the singular.

 

10.17       Notice. Any notice
or filing required or permitted to be given to the Plan Administrator under the
Plan shall be sufficient if in writing and hand delivered, or sent by
registered or certified mail, to the Plan Administrator, Tyco Electronics
Corporation Supplemental Savings and Retirement Plan, c/o Tyco Electronics
Corporation HR Benefits, 1050 Westlakes Drive, Berwyn, PA 19312 or to such
other person or entity as the Plan Administrator may designate from time to
time. Such notice shall be deemed given as of the date of delivery, or, if
delivery is made by mail, as of the date shown on the postmark on the receipt
for registration or certification.

 

10.18       Amendment and
Termination. The Plan may be amended, suspended, or terminated at any time
by the Company in its sole discretion; provided, however, that no such
amendment, suspension or termination shall result in any reduction in the value
of a Participant’s Account determined as of the effective date of such
amendment. In addition, the Plan, and/or the terms of any election made hereunder,
may be amended at any time and in any respect by the Company or by the Plan
Administrator if and to the extent recommended by counsel in order to conform
to the requirements of Code Section 409A and regulations thereunder or to any
other Code Section or regulation that bears on the tax-deferred character of
the benefits provided hereunder or to maintain the tax-qualified status of the
RSIP. In the event of any suspension or termination of the Plan, payment of
Participants’ Accounts shall be made under and in accordance with the terms of
the Plan and the applicable elections (except that the Plan Administrator may
determine, in its sole discretion, to accelerate payments to all Participants
if and to the extent that such acceleration is permitted under Code Section
409A and regulations thereunder).

 

10.19       Delay of Payment for
Specified Employees. Notwithstanding any provision of this Plan to the
contrary, in the case of any Participant who is a “specified employee” within
the meaning of Code Section 409A(a)(2)(B)(i), no distribution under this Plan
may be made, or may commence, before the date which is six months after the
date of such Participant’s “separation from service” within the meaning of Code
Section 409A(a)(2)(B)(i) (or, if earlier, the date of the Participant’s death).

 

10.20       Special Rule Regarding
Election Changes in 2005, 2006 and 2007. To the extent permitted under the
provisions of Internal Revenue Service Notice 2005-1, A-19(c) and subsequent
related guidance, the Company may, in its sole discretion, permit a

 

22

 

Participant to modify an existing election with
respect to the timing and form of payment of the Participant’s Account
hereunder without regard to the limitations set forth in Section 8.2, so long
as: (i) such modification is made on or before December 31, 2007 (or, in the
case of any amount that would have been payable in 2007, December 31, 2006, or,
in the case of any amount that would have been payable in 2006, December 31,
2005), and (ii) such modified election is consistent with the provisions of
Sections 8.1 and 10.19 hereof.

 

23

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