Document:

Exhibit 10.5

GUARANTOR ASSUMPTION
AGREEMENT

 

Guarantor
Assumption Agreement

(Healthcare Businesses)

This Assignment and Assumption Agreement (Healthcare
Businesses) (this “Agreement”)
is made and dated as of June 29, 2007, by and between Tyco International Ltd.,
a Bermuda company (the “Assignor”),
and Covidien Ltd., a Bermuda company (the “Assignee”).

RECITALS

A.            The Assignor is a party to the 364-Day Senior Bridge Loan
Agreement (Healthcare Businesses) dated as of April 25, 2007 among Tyco
International Group S.A., Covidien International Finance S.A., the Assignor,
the Assignee, the lenders party thereto and Citibank, N.A., as administrative
agent for such lenders (as amended, supplemented or otherwise modified from
time to time, the “Credit
Agreement”).

B.            The Credit Agreement contemplates that the Assignor and
the Assignee shall execute and deliver this Agreement.

NOW, THEREFORE, in
accordance with the foregoing premises and for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:

1. Assignment and
Assumption. Assignor hereby assigns and transfers to the Assignee and the
Assignee hereby accepts and assumes from the Assignor, all of the right, title,
interest, obligations and duties of the Assignor in, to and under the Credit
Agreement, effective as of the date of this Agreement (the “Effective Date”).

2. Guarantor. The
Assignee hereby confirms that, as of the Effective Date, automatically and
without further action of any party, (i) the Assignee shall be a party to the
Credit Agreement in place of the Assignor in all respects, (ii) the Assignee
shall assume, in full, all of the obligations and duties of the “Guarantor”
under the Credit Agreement, (iii) the Assignor shall relinquish its rights and
be released from its obligations under the Credit Agreement and (iv) all of the
terms and conditions of the Guarantee set forth in Article VIII of the Credit
Agreement are ratified and confirmed in all respects.

3. Representations and
Warranties. The Assignee hereby represents and warrants to the Assignor and
the Credit Agreement Parties that the representations and warranties set forth
in

Sections 3.01, 3.02, 3.03, 3.06 and 3.11 of the Credit
Agreement are true and correct as of the Effective Date with respect to it as
an Obligor.

4. Governing Law. This Agreement shall be
governed by, and construed in accordance with, the law of the State of New
York.

5. Beneficiaries. This Agreement is intended to
be solely for the benefit of the parties hereto and the parties to the Credit
Agreement and their respective successors and assigns (collectively, the “Credit Agreement Parties”)
and is not intended to confer any benefits upon, or create any rights in favor
of, any person other than the parties hereto and the Credit Agreement Parties.

6. Website. The Assignee hereby designates
www.covidien.com as its website for the purposes of Section 5.01 of the Credit
Agreement.

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

[Remainder of page intentionally left blank; Signature
pages follow.]

 2

[Signature Page to Guarantor
Assumption Agreement

(Healthcare
- Bridge Loan Agreement)]

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be executed by their
respective duly authorized officers as of the date first above written.

	
  

  	
  ASS1GNOR:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TYCO INTERNATIONAL LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christopher Coughlin

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Christopher Coughlin

  
	
   

  	
   

  	
  Title:

  	
  EVP & CFO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ASSIGNEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COVIDIEN LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles J. Dockendorff

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Charles J. Dockendorff

  
	
   

  	
   

  	
  Title:

  	
  EVP & CFOExhibit 10.6

GUARANTOR ASSUMPTION
AGREEMENT

(Healthcare Businesses)

This Assignment and Assumption Agreement (Healthcare
Businesses) (this “Agreement”)
is made and dated as of June 29, 2007, by and between Tyco International Ltd.,
a Bermuda company (the “Assignor”),
and Covidien Ltd., a Bermuda company (the “Assignee”).

RECITALS

A.            The Assignor is a party to the Five-Year Senior Credit
Agreement dated as of April 25, 2007 among Covidien International Finance S.A.,
the Assignor, the Assignee, the lenders party thereto and Citibank, N.A., as
administrative agent for such lenders (as amended, supplemented or otherwise
modified from time to time, the “Credit Agreement”).

B.            The Credit Agreement contemplates that the Assignor and
the Assignee shall execute and deliver this Agreement.

NOW, THEREFORE, in accordance with the foregoing
premises and for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

1.   Assignment and Assumption. Assignor
hereby assigns and transfers to the Assignee and the Assignee hereby accepts
and assumes from the Assignor, all of the right, title, interest, obligations
and duties of the Assignor in, to and under the Credit Agreement, effective as
of the date of this Agreement (the “Effective Date”).

2.   Guarantor. The Assignee hereby confirms
that, as of the Effective Date, automatically and without further action of any
party (i) the Assignee shall be a party to the Credit Agreement in place of the
Assignor in all respects, (ii) the Assignee shall assume, in full, all of the
obligations and duties of the “Guarantor” under the Credit Agreement, (iii) the
Assignor shall relinquish its rights and be released from its obligations under
the Credit Agreement and (iv) all of the terms and conditions of the Guarantee
set forth in Article VIII of the Credit Agreement are ratified and confirmed in
all respects.

3.   Representations
and Warranties. The Assignee hereby represents and warrants to the Assignor
and the Credit Agreement Parties that the representations and warranties set
forth in Sections 3.01, 3.02, 3.03, 3.06 and 3.11 of the Credit Agreement are
true and correct as of the Effective Date with respect to it as an Obligor.

4.   Governing
Law. This Agreement shall be governed by, and construed in accordance with,
the law of the State of New York.

5.   Beneficiaries. This Agreement is
intended to be solely for the benefit of the parties hereto and the parties to
the Credit Agreement and their respective successors and assigns (collectively,
the “Credit Agreement
Parties”) and is not intended to confer any benefits upon, or
create any rights in favor of, any person other than the parties hereto and the
Credit Agreement Parties.

6.   Website.
The Assignee hereby designates www.covidien.com as its website for the purposes
of Section 5.01 of the Credit Agreement.

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

[Remainder of page intentionally left blank; Signature
pages follow.]

 2

[Signature
Page to Guarantor Assumption Agreement (Healthcare Revolver)]

IN WITNESS
WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective duly authorized officers as of the date first above written.

	
  

  	
  ASS1GNOR:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TYCO INTERNATIONAL LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christopher Coughlin

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Christopher Coughlin

  
	
   

  	
   

  	
  Title:

  	
  EVP & CFO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ASSIGNEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COVIDIEN LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles J. Dockendorff

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Charles J. Dockendorff

  
	
   

  	
   

  	
  Title:

  	
  EVP & CFOExhibit 10.7

Covidien Ltd.

2007 Stock and Incentive Plan

TERMS AND CONDITIONS

OF

OPTION AWARD

OPTION AWARD granted on
July 2, 2007 (the “Grant Date”).

1.                                       Grant of Option.  Covidien
Ltd. (the “Company”) has granted to you an Option to purchase the number of
Shares of Common Stock set forth in the Grant Letter that issued this Option to
you, subject to the provisions of these Terms and Conditions and the Plan.  This Option is a Nonqualified Stock Option.

2.                                       Exercise Price. 
The Exercise Price required to purchase the Shares covered by this
Option is set forth in the Grant Letter.

3.                                       Vesting.  Except
as provided below, Shares subject to this Option will vest according to the
following schedule:

	
  Date

  	
   

  	
  Vested Percentage

  	
   

  
	
  1st Anniversary of Grant Date

  	
   

  	
  25

  	
  %

  
	
  2nd Anniversary of Grant Date

  	
   

  	
  50

  	
  %

  
	
  3rd Anniversary of Grant Date

  	
   

  	
  75

  	
  %

  
	
  4th Anniversary of Grant Date

  	
   

  	
  100

  	
  %

  

 

If you terminate employment before full (100%) vesting, you will forfeit
the unvested portion of this Option and may exercise the vested portion until
the earlier of (i) the date described in Section 4 below or (ii) 90 days after
you terminate employment.  However, if you terminate employment due to Normal
Retirement (you terminate employment on or after age 60 and the sum of your age
and years of service equals at least 70), Retirement (you terminate employment on
or after age 55 and the sum of your age and years of service equals at least
60), death, Disability, a Change in Control or Divestiture or Outsourcing
Agreement, this Option will become vested and exercisable in accordance with
the provisions of Section 7, 8 or 9, as applicable.

4.                                       Term of Option.  Unless
this Option has been terminated or cancelled, it must be exercised before the
close of the New York Stock Exchange (“NYSE”) on the day prior to the 10th anniversary of the Grant Date.  If the NYSE is not open for business on such date,
this Option will expire at the close of the NYSE’s first business day that
immediately precedes the day prior to the 10th anniversary of the Grant Date.

5.                                       Payment of Exercise Price.  To
exercise all or a portion of this Option, you must pay the Exercise Price for
each Share as set forth in the Grant Letter. 
You may pay the Exercise Price in cash or by certified check, bank
draft, wire transfer or postal or express money order.  You may also pay the Exercise Price by using one
or more of the following methods: (i) delivering to the Company a properly
executed exercise notice, together with irrevocable 

 1
 

instructions to a
broker to deliver promptly (within the typical settlement cycle for the sale of
equity securities on the relevant trading market, or otherwise in accordance
with Regulation T issued by the Federal Reserve Board) to the Company sale or
loan proceeds adequate to satisfy the portion of the Exercise Price being so
paid; (ii) if expressly approved by the Committee, tendering to the Company (by
physical delivery or attestation) certificates of Common Stock that you have
held for 6 months or longer (unless the Committee, in its discretion, waives
this 6-month period) and that have an aggregate Fair Market Value as of the day
prior to the date of exercise equal to the portion of the Exercise Price being
so paid; or (iii) if such form of payment is expressly authorized by the Board
or the Committee, instructing the Company to withhold Shares that would
otherwise be issued were the Exercise Price to be paid in cash and that have an
aggregate Fair Market Value as of the date of exercise equal to the portion of
the Exercise Price being so paid. 
Notwithstanding the foregoing, you may not tender any form of payment
that the Company determines, in its sole discretion, could violate any law or
regulation.  You are not required to
purchase all Shares subject to this Option at one time, but you must pay the
full Exercise Price for all Shares that you elect to purchase before they will
be delivered.  The date of exercise of an
Option shall be the date on which the Company receives the Exercise Price for
such Option.

6.                                       Exercise of Option.  If
you are entitled to exercise this Option, you may exercise it by contacting UBS
Financial Services through its web site at www.ubs.com/onesource/cov or by
calling its toll free number.  If you are calling from the U.S., the
number is 1-877-461-7805.  If you are calling
from outside the U.S., the number is 001-201-272-7685.  If someone other than you attempts to
exercise this Option (for example, because the Option is being exercised after
your death), the Company will deliver the Shares only after determining that
the person attempting to exercise this Option is the duly appointed executor or
administrator of your estate or an individual to whom this Option has been
transferred in accordance with these Terms and Conditions and the terms of the
Plan.

7.                                       Retirement, Normal Retirement, Disability or Death.  Notwithstanding the vesting and exercise provisions
described in Section 3, this Option will vest and remain exercisable if your
Termination of Employment is a result of your Retirement, Normal Retirement, Disability
or death as follows:

(i)                                     Retirement.  If you
terminate employment as a result of your Retirement (as defined in Section 3)
and your Retirement occurs less than 12 months after the Grant Date, you will
forfeit all Shares subject to this Option. 
If, however, your Retirement occurs at least 12 months after the Grant
Date, then you will be entitled to pro rata vesting of this Option based on (A)
the number of whole months completed from Grant Date through your employment
termination date divided by 48 times (B) the total number of shares awarded
under the Option minus (C) the number of shares that previously vested.  You will be entitled to exercise this Option
until the earlier of (1) the date described in Section 4 or (2) the third
anniversary of your Retirement date.

(ii)                                  Normal Retirement, Disability or Death.  If you terminate employment as a result of
your Normal Retirement (as defined in Section 3) and your Normal Retirement
occurs less than 12 months after the Grant Date of this Option, you will forfeit
all Shares subject to this Option.  If,
however, your Normal Retirement occurs at least 12 months after the Grant Date of
this Option or you terminate employment because 

 2
 

of your death or a
Disability, then you will become fully vested in this Option on the date of your
Normal Retirement, death or Termination of Employment due to Disability and be
entitled to exercise this Option until the earlier of (A) the date described in
Section 4 or (B) the third anniversary of the date of your Normal Retirement,
death or Termination of Employment due to Disability, as applicable.

8.                                       Termination of Employment
Following a Change in Control.  Notwithstanding the
vesting and exercise provisions described in Section 3, you will become fully vested in this Option on
the date you terminate employment after a Change in Control and be entitled to exercise
this Option until the earlier of (A) the date described in Section 4 or (B) the
third anniversary of your employment termination date, if you satisfy one of the following requirements:

(i)                                     Within 12 months after a Change in
Control, the Company terminates your employment for any reason other than
Cause, Disability or death; or

(ii)                                  Within 12 months after a Change in
Control and within 60 days after one of the events listed in this Section
8(ii), you terminate your employment because (A) the Company (1) assigns or
causes to be assigned to you duties inconsistent in any material respect with
your position as in effect immediately prior to the Change in Control; (2)
makes or causes to be made any material adverse change in your position
(including titles and reporting relationships and level), authority, duties or
responsibilities; or (3) takes or causes to be taken any other action which, in
your reasonable judgment, would cause you to violate your ethical or
professional obligations (after written notice of such judgment has been
provided by you to the Company and the Company has been given a 15-day period
within which to cure such action), or which results in a significant diminution
in your position, authority, duties or responsibilities; or (B) the Company,
without your consent, (1) requires you to relocate to a principal place of
employment more than 50 miles from your existing place of employment; or (2)
reduces your base salary, annual bonus, or retirement, welfare, stock
incentive, perquisite (if any) and other benefits when taken as a whole.

9.                                   Termination of Employment
Resulting From Divestiture or Outsourcing Agreement. 
Notwithstanding the vesting and exercise provisions described in
Section 3, and subject to the provisions of subsection (i) below, if you terminate employment as a result
of a Disposition of Assets, Disposition of a Subsidiary or Outsourcing
Agreement, then this Option will vest on a pro-rata basis based on (A)
the number of whole months completed from Grant Date through the closing date
of the applicable transaction divided by 48 times (B) the total number of
shares awarded under the Option minus (C) the number of shares that previously
vested.  If you are entitled to pro rata
vesting under this Section 9, then the vested portion of this Option will
expire on the earlier of (1) the date described in Section 4 or (2) the third
anniversary of your employment termination date.

(i)                                     Notwithstanding
the foregoing provisions of this Section 9, you shall not be eligible for
pro-rata vesting and an extended Option expiration date if (A) your Termination
of Employment occurs on or prior to the closing date of a Disposition of Assets
or Disposition of a Subsidiary or such later date as is provided specifically in
the applicable transaction agreement or related agreements, or on the effective
date of an 

 3
 

Outsourcing Agreement (the “Applicable Employment Date”), and (B) you
are offered Comparable Employment with the buyer, successor company or
outsourcing agent, as applicable, but do not commence such employment on the
Applicable Employment Date.

(ii)                                  For
purposes of Section 9(i), (A) “Comparable Employment” means employment at a
location that is no more than 50 miles from your job location at the time of
your Termination of Employment that has a base salary and bonus target that is
at least equal to your base salary and bonus target in effect immediately prior
to your Termination of Employment; (B) “Disposition of Assets” means the
disposition by the Company or a Subsidiary of all or a portion of the assets
used by the Company or Subsidiary in a trade or business to an unrelated
corporation or entity; (C) “Disposition of a Subsidiary” means the disposition
by the Company or Subsidiary of its interest in a subsidiary or controlled
entity to an unrelated individual or entity, provided that such subsidiary or
entity ceases to be a member of the Company’s controlled group as a result of
such disposition; and (D) “Outsourcing Agreement” means a written agreement
between the Company or Subsidiary and an unrelated third party (“Outsourcing
Agent”) pursuant to which (1) the Company or Subsidiary transfers the
performance of services previously performed by Company or Subsidiary employees
to the Outsourcing Agent, and (2) the Outsourcing Agreement includes an
obligation of the Outsourcing Agent to offer employment to any employee whose
employment is being terminated as a result of or in connection with said
Outsourcing Agreement.

10.                                 Withholdings. 
The Company has the right, prior to the issuance or delivery of any
Shares in connection with the exercise of this Option, to withhold or require
from you the amount necessary to satisfy applicable tax requirements, as
determined by the Committee.  The methods
described in Section 5 may also be used to pay your withholding tax obligation.

11.                                 Transfer of Option. 
You generally may not transfer this Option or any interest in this
Option except by will or the laws of descent and distribution.  However, you may transfer this Option to
members of your immediate family or to one or more trusts for the benefit of
family members or to one or more partnerships in which the family members are
the only partners, provided that (i) you do not receive any consideration for
the transfer, (ii) you furnish the Committee or its designee with detailed
written notice of the transfer at least 3 business days in advance, and (iii)
the Committee or its designee consents in writing to the transfer.  For this purpose, “family member” means any
spouse, children, grandchildren, parents, grandparents, siblings, nieces,
nephews, grandnieces and grandnephews, including adopted, in-laws and step
family members.  If this Option is transferred
pursuant to this provision, it will continue to be subject to the same terms
and conditions that applied immediately prior to the transfer.  This Option may be exercised by the
transferee only to the same extent that you could have exercised this Option
had no transfer occurred.

12.                                 Forfeiture of Option. 
You will forfeit all or a portion of this Option if your employment
terminates under the circumstances described below:

(i)                                     If the Company or Subsidiary terminates
your employment for Cause, including without limitation a termination as a
result of your violation of the Company’s Code of Ethical Conduct, then the
Company will immediately rescind the unvested portion of this Option and any
vested but unexercised portion of this Option and you will 

 4
 

immediately forfeit any and all rights you have remaining at such time with
respect to this Option.  Also, you hereby
agree and promise to deliver to the Company immediately upon your Termination
of Employment for Cause, Shares (or, in the discretion of the Committee, cash)
equal in value to the amount of any profit you realized upon the exercise of any
portion of this Option during the 12-month period that occurs immediately prior
to your Termination of Employment for Cause.

(ii)                                  If, after your Termination of Employment,
the Committee determines in its sole discretion that while you were a Company
or Subsidiary employee you engaged in activity that would have constituted
grounds for the Company or Subsidiary to terminate your employment for Cause,
then the Company will immediately rescind the unvested portion of this Option
and any vested but unexercised portion of this Option and you will immediately
forfeit any and all rights you have remaining on the date that the Committee
makes such determination with respect to this Option.  Also, you hereby agree and promise to deliver
to the Company immediately upon the date the Committee determines that you
could have been terminated for Cause, Shares (or, in the discretion of the
Committee, cash) equal in value to the amount of any profit you realized upon
the exercise of any portion of this Option during the period that begins 12
months immediately prior to your Termination of Employment and ends on the date
the Committee determines that you could have been terminated for Cause.

(iii)                             If the Committee determines in its sole
discretion that at anytime after your Termination of Employment and prior to
the second anniversary of your Termination of Employment you (A) disclosed
confidential or proprietary information related to any business of the Company
or Subsidiary or (B) entered into an employment or consultation arrangement
(including any arrangement for employment or service as an agent, partner,
stockholder, consultant, officer or director) with any entity or person engaged
in a business and (1) such employment or consultation arrangement would likely
(in the Committee’s sole discretion) result in the disclosure of confidential
or proprietary information related to any business of the Company or a
Subsidiary to a business that is competitive with any Company or Subsidiary
business as to which you had access to strategic or confidential information
and (2) the Committee has not approved the arrangement in writing, then any portion
of this Option that you have not exercised (whether vested or unvested) will
immediately be rescinded and you will forfeit any rights you have with respect
to this Option as of the date of the Committee’s determination.  Also, you hereby agree and promise to deliver
to the Company, immediately upon the Committee’s determination date, Shares
(or, in the discretion of the Committee, cash) equal in value to the amount of
any profit you realized upon the exercise of any portion of this Option during the
period that begins 12 months immediately prior to your Termination of Employment
and ends on the date of the Committee’s determination.

13.                                 Adjustments. 
In the event of any stock split, reverse stock split, dividend or other
distribution (whether in the form of cash, Shares, other securities or other
property), extraordinary cash dividend, recapitalization, merger,
consolidation, split-up, spin-off, reorganization, combination, repurchase or
exchange of Shares or other securities, the issuance of warrants or other
rights to purchase Shares or other securities, or other similar corporate
transaction or event, the Committee may in its sole discretion adjust the
number and kind of 

 5
 

Shares covered by this
Option, the Exercise Price and other relevant provisions to the extent
necessary to prevent dilution or enlargement of the benefits or potential
benefits intended to be provided by this Option.  Any such determinations and adjustments made
by the Committee will be binding on all persons.

14.                                 Restrictions on Exercise. 
Exercise of this Option is subject to the conditions that, to the extent
required at the time of exercise:

(i)                                     The Shares covered by this Option will
be duly listed, upon official notice of issuance, on the NYSE; and

(ii)                                  A Registration Statement under the
Securities Act of 1933 with respect to the Shares will be effective or an
exemption from registration will apply.

The Company will not be
required to deliver any Shares until all applicable federal and state laws and
regulations have been complied with and all legal matters in connection with
the issuance and delivery of the Shares have been approved by the Company’s
legal counsel.  Notwithstanding the
foregoing, you may only exercise this Option in cash or by certified check,
bank draft, wire transfer or postal or express money order if local law permits
such exercise method at the time of exercise.

15.                                 Disposition of Securities. 
By accepting this Option, you acknowledge that you have read and
understand the Company’s Insider Trading Policy and are aware of and understand
your obligations under federal securities laws with respect to trading in the
Company’s securities.  You also hereby agree
not to use the Company’s “cashless exercise” program (or any successor program)
at any time when you possess material nonpublic information with respect to the
Company (including Subsidiaries) or when using the program would otherwise
result in a violation of applicable securities law.  The Company has the right to recover, or
receive reimbursement for, any compensation or profit realized on the exercise
of this Option or by the disposition of Shares received upon exercise of this
Option to the extent that the Company has a right of recovery or reimbursement
under applicable securities laws.

16.                                 Plan Terms Govern. 
The vesting and exercise of this Option, the disposition of any Shares
received upon exercise of this Option, and the treatment of any gain on the
disposition of such Shares are subject to the terms of the Plan and any rules
that the Committee prescribes.  The Plan
document, as amended from time to time, is incorporated into this Terms and
Conditions document.  Capitalized terms
used herein are defined in the Plan.  If
there is any conflict between the terms of the Plan and these Terms and
Conditions, the Plan’s terms govern.  By
accepting this Option Award, you hereby acknowledge receipt of the Plan, as in
effect on the Grant Date.

17.                                 Personal Data. 
To comply with applicable law and to administer this Option appropriately,
the Company and its agents may hold and process your personal data and/or
sensitive personal data.  Such data
includes, but is not limited to, the information provided to you as part of the
grant package and any changes thereto, other appropriate personal and financial
data about you, and information about your participation in the Plan and Shares
obtained under the Plan from time to time. 
By accepting this Option, you hereby give your explicit consent to the
Company’s processing personal data and/or sensitive personal data as is
necessary or 

 6
 

appropriate for Plan
administration.  You also hereby give your
explicit consent to the Company’s transfer of personal data and/or sensitive
personal data outside the country in which you work or reside and to the United
States.  The legal persons for whom your
personal data are intended include the Company, its Subsidiaries (or former
Subsidiaries as are deemed necessary), the outside Plan administrator, and any
other person that the Company retains or utilizes for Plan administration
purposes.  You have the right to review
and correct your personal data by contacting your local Human Resources
Representative.  You hereby acknowledge
your understanding that the transfer of the information outlined here is
important to Plan administration and that failure to consent to the
transmission of such information may limit or prohibit your participation in
the Plan.

18.                                 No Contract of Employment or
Promise of Future Grants.  By accepting this Option, you agree that you
are bound by the terms of the Plan and these Terms and Conditions and
acknowledge that this Option is granted in the Company’s sole discretion and is
not considered part of any employment contract or your ordinary or expected
salary or other compensation.  This
Option and any gains received hereunder are not considered part of your salary
or compensation for purposes of any pension benefits or for purposes of severance,
redundancy or resignation.  If the
Company or Subsidiary terminates your employment for any reason, you agree that
you will not be entitled to damages for breach of contract, dismissal or
compensation for loss of office or otherwise to any sum, Shares, Options or
other benefits to compensate you for the loss or diminution in value of any
actual or prospective rights, benefits or expectation under or in relation to
the Plan.

19.                                 Limitations. 
Nothing in these Terms and Conditions or the Plan grants to you any
right to continued employment with the Company or any Subsidiary or to
interfere in any way with the Company or Subsidiary’s right to terminate your
employment at any time and for any reason. 
Payment of Shares is not secured by a trust, insurance contract or other
funding medium, and you do not have any interest in any fund or specific Company
asset by reason of this Option.  You have
no rights as a stockholder of the Company pursuant to this Option until Shares
are actually delivered to you.

20.                                 Entire Agreement and Amendment. 
These Terms and Conditions and the Plan constitute the entire
understanding between you and the Company regarding this Option.  These Terms and Conditions supersede any prior
agreements, commitments or negotiations concerning this Option.  These Terms and Conditions may not be
modified, altered or changed except by the Committee (or its delegate) in
writing and pursuant to the terms of the Plan.

21.                                 Severability. 
The invalidity or unenforceability of any provision of these Terms and
Conditions will not affect the validity or enforceability of the other
provisions of these Terms and Conditions, which will remain in full force and
effect.  Moreover, if any provision is
found to be excessively broad in duration, scope or covered activity, the
provision will be construed so as to be enforceable to the maximum extent
compatible with applicable law.

22.                                 Acceptance.  By
accepting this Option, you agree to the following:

(i)                                     You have carefully read, fully
understand and agree to all of the terms and conditions contained in the Plan
and these Terms and Conditions; and

 7
 

(ii)                                  You understand and agree that the Plan
and these Terms and Conditions constitute the entire understanding between you
and the Company regarding this Option, and that any prior agreements,
commitments or negotiations concerning this Option are replaced and superseded.

You will be deemed to consent to the application of the terms and
conditions set forth in the Plan and these Terms and Conditions unless you
contact Covidien Ltd., c/o Equity Plan Administration, 15 Hampshire Street,
Mansfield, MA 02048 in writing within 30 days of receiving the grant package.  Receipt by the Company of your non-consent
will nullify this Option unless otherwise agreed to in writing by you and the
Company.

 8

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