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NEW YORK (AP) - A former Tyco International Ltd. director conceded Tuesday the company's annual proxy statements described an internal loan program as being used "primarily" to cover taxes on the vesting of restricted shares, but didn't say the loans had to be used exclusively for that purpose.
Under questioning by defense attorneys, James S. Pasman Jr., a director from 1997 to 2002, said the Bermuda conglomerate's proxy statements, in describing Tyco's so-called Key Employee Loan Program, said the loans were used primarily for the payment of taxes or "may" be used for such a purpose.
Prosecutors have alleged that L. Dennis Kozlowski, Tyco's former chief executive, and Mark H. Swartz, its ex-chief financial officer, used KELP as a personal line of credit, rather than for its original purpose of borrowing money to pay taxes.
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