Document:

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                                                                     EXHIBIT 4.3

                         REGISTRATION RIGHTS AGREEMENT

          THIS REGISTRATION RIGHTS AGREEMENT is made and entered into as of
February 12, 2001 by and among Tyco International Group S.A., a Luxembourg
company (the "Company"), Tyco International Ltd., a Bermuda company and the sole
shareholder of the Company ("Tyco" and, together with the Company, the
"Companies") and Credit Suisse First Boston Corporation (the "Initial
Purchaser"), pursuant to the Purchase Agreement, dated February 7, 2001 (the
"Purchase Agreement"), among the Companies and the Initial Purchaser.  In order
to induce the Initial Purchaser to enter into the Purchase Agreement, the
Companies have agreed to provide the registration rights set forth in this
Agreement.  The execution of this Agreement is a condition to the closing under
the Purchase Agreement.

          The Companies agree with the Initial Purchaser, (i) for its benefit as
Initial Purchaser and (ii) for the benefit of the beneficial owners (including
the Initial Purchaser) from time to time of the Zero Coupon Convertible
Debentures due February 12, 2021 (the "Securities") and the beneficial owners
from time to time of the Underlying Common Shares (as defined herein) issued
upon conversion of the Securities or in payment of the purchase price of a
purchase of Securities by the Company on February 12, 2003 (each of the
foregoing a "Holder" and together the "Holders"), as follows:

       Section 1.    Definitions.  Capitalized terms used herein without
                     -----------
definition shall have their respective meanings set forth in the Purchase
Agreement.  As used in this Agreement, the following terms shall have the
following meanings:

       "Affiliate."  With respect to any specified person, an "affiliate," as
        ---------
defined in Rule 144, of such person.

       "Applicable Conversion Price."  The Applicable Conversion Price as of any
        ---------------------------
date of determination means the Applicable Principal Amount per $1,000 principal
amount at maturity of Securities as of such date of determination divided by the
Conversion Rate in effect as of such date of determination or, if no Securities
are then outstanding, the Conversion Rate that would be in effect were the
Securities then outstanding.

       "Applicable Principal Amount."  Applicable Principal Amount as of any
        ---------------------------
date of determination, with respect to each $1,000 principal amount at maturity
of Securities means the sum of the initial issue price of such Securities
($741.65) plus accrued original issue
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discount with respect to such Security through such date of determination or, if
no Securities are then outstanding, such sum calculated as if such Securities
were then outstanding.

       "Business Day."  Each Monday, Tuesday, Wednesday, Thursday and Friday
        ------------
that is not a day on which banking institutions in The City of New York are
authorized or obligated by law or executive order to close.

       "Common Shares."  The Common Shares, $0.20 par value, of Tyco and any
        -------------
other shares of capital stock as may constitute "Common Shares" for purposes of
the Indenture, including the Underlying Common Shares.

       "Companies."  Companies shall have the meaning set forth in the preamble
        ---------
to this Agreement.

       "Conversion Rate."  Conversion Rate shall have the meaning assigned to
        ---------------
such term in the Indenture.

       "Damages Accrual Period."  See Section 2(e) hereof.
        ----------------------

       "Damages Payment Date."  Each February 12 and August 12 in the case of
        --------------------
Securities and the Underlying Common Shares.

       "Deferral Notice."  See Section 3(i) hereof.
        ---------------

       "Deferral Period."  See Section 3(i) hereof.
        ---------------

       "Effectiveness Deadline Date."  See Section 2(a) hereof.
        ---------------------------

       "Effectiveness Period."  The period of two years from the later of the
        --------------------
(a) Issue Date or (b) the last date of original issuance of the Securities, or
such shorter period ending on the date that all Registrable Securities have
ceased to be Registrable Securities.

       "Event."  See Section 2(e) hereof.
        -----

       "Event Termination Date."  See Section 2(e) hereof.
        ----------------------

       "Event Date."  See Section 2(e) hereof.
        ----------

       "Exchange Act."  The Securities Exchange Act of 1934, as amended, and the
        ------------
rules and regulations of the SEC promulgated thereunder.

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       "Filing Deadline Date."  See Section 2(a) hereof.
        --------------------

       "Holder."  See the second paragraph of this Agreement.
        ------

       "Indenture."  The Indenture dated as of the date hereof between the
        ---------
Company, Tyco, as guarantor, and State Street Bank and Trust Company, as
trustee, pursuant to which the Securities are being issued.

       "Initial Purchaser."  Credit Suisse First Boston Corporation.
        -----------------

       "Initial Shelf Registration Statement."  See Section 2(a) hereof.
        ------------------------------------

       "Issue Date."  means February 12, 2001.
        ----------

       "Liquidated Damages Amount."  See Section 2(e) hereof.
        -------------------------

       "Losses."  See Section 6 hereof.
        ------

       "Material Event."  See Section 3(i) hereof.
        --------------

       "Notice and Questionnaire."  A written notice delivered to the Company
        ------------------------
containing substantially the information called for by the Selling Security
Holder Notice and Questionnaire attached as Annex A to the Offering Circular of
the Company dated February 7, 2001 relating to the Securities.

       "Notice Holder."  On any date, any Holder that has delivered a Notice and
        -------------
Questionnaire to the Company on or prior to such date.

       "Prospectus."  The prospectus included in any Registration Statement
        ----------
(including, without limitation, a prospectus that discloses information
previously omitted from a prospectus filed as part of an effective registration
statement in reliance upon Rule 415 promulgated under the Securities Act), as
amended or supplemented by any amendment or prospectus supplement, including
post-effective amendments, and all materials incorporated by reference or
explicitly deemed to be incorporated by reference in such Prospectus.

       "Purchase Agreement."  See the first paragraph of this Agreement.
        ------------------

       "Record Holder."  With respect to any Damages Payment Date relating to
        -------------
any Securities or Underlying Common Shares as to which any Liquidated Damages
Amount has accrued, the registered Holder of such Security or Underlying Common
Shares, as the case

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may be, the first day of the month of the next succeeding Damages Payment Date,
or when the Event is cured, the registered Holder on the date of such cure.

       "Registrable Securities."  The Securities and the Underlying Common
        ----------------------
Shares, until such securities have been converted or exchanged, and, at all
times subsequent to any such conversion or exchange, any securities into or for
which such securities have been converted or exchanged, and any security issued
with respect thereto upon any stock dividend, split or similar event until, in
the case of any such security, the earliest of (i) its effective registration
under the Securities Act and resale in accordance with the Registration
Statement covering it, (ii) expiration of the holding period that would be
applicable thereto under Rule 144(k) were it not held by an Affiliate of the
Company or (iii) its sale to the public pursuant to Rule 144.

       "Registration Expenses."  See Section 5 hereof.
        ---------------------

       "Registration Statement."  Any joint registration statement of the
        ----------------------
Companies that covers any of the Registrable Securities pursuant to the
provisions of this Agreement, including the Prospectus, amendments and
supplements to such registration statement, including post-effective amendments,
all exhibits, and all materials incorporated by reference or explicitly deemed
to be incorporated by reference in such registration statement.

       "Restricted Securities."  As this term is defined in Rule 144.
        ---------------------

       "Rule 144."  Rule 144 under the Securities Act, as such Rule may be
        --------
amended from time to time, or any similar rule or regulation hereafter adopted
by the SEC.

       "Rule 144A."  Rule 144A under the Securities Act, as such Rule may be
        ---------
amended from time to time, or any similar rule or regulation hereafter adopted
by the SEC.

       "SEC."  The Securities and Exchange Commission.
        ---

       "Securities."  The Zero Coupon Convertible Debentures due February 12,
        ----------
2021 of the Company to be purchased pursuant to the Purchase Agreement.

       "Securities Act."  The Securities Act of 1933, as amended, and the rules
        --------------
and regulations promulgated by the SEC thereunder.

       "Shelf Registration Statement."  See Section 2(a) hereof.
        ----------------------------

       "Subsequent Shelf Registration Statement."  See Section 2(b) hereof.
        ---------------------------------------

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       "TIA."  The Trust Indenture Act of 1939, as amended.
        ---

       "Trustee."  State Street Bank and Trust Company (or any successor
        -------
entity), the Trustee under the Indenture.

       "Underlying Common Shares."  The Common Shares into which the Securities
        ------------------------
are convertible or issued upon any such conversion or in payment of the purchase
price of a purchase of the Securities by the Company on February 12, 2003.

       Section 2.    Shelf Registration.  (a)  The Companies shall prepare and
                     ------------------
file, or cause to be prepared and filed, with the SEC, as soon as practicable
but in any event by the date (the "Filing Deadline Date") ninety (90) days after
the Issue Date, a Registration Statement for an offering to be made on a delayed
or continuous basis pursuant to Rule 415 of the Securities Act (a "Shelf
Registration Statement") registering the resale from time to time by Holders
thereof of all of the Registrable Securities (the "Initial Shelf Registration
Statement").  The Initial Shelf Registration Statement shall be on Form S-3 or
another appropriate form permitting registration of such Registrable Securities
for resale by such Holders in accordance with the methods of distribution
elected by the Holders and set forth in the Initial Shelf Registration
Statement; provided, that in no event will such method(s) of distribution take
the form of an underwritten offering of the Registrable Securities without the
prior agreement of the Companies.  The Companies shall use reasonable efforts to
cause the Initial Shelf Registration Statement to be declared effective under
the Securities Act as promptly as is practicable, but in any event by the date
(the "Effectiveness Deadline Date") that is two hundred and ten (210) days after
the Issue Date, and to keep the Initial Shelf Registration Statement (or any
Subsequent Shelf Registration Statement) continuously effective under the
Securities Act until the expiration of the Effectiveness Period.  At the time
the Initial Shelf Registration Statement is declared effective, each Holder that
became a Notice Holder on or prior to the date ten (10) Business Days prior to
such time of effectiveness shall be named as a selling securityholder in the
Initial Shelf Registration Statement and the related Prospectus in such a manner
as to permit such Holder to deliver such Prospectus to purchasers of Registrable
Securities in accordance with applicable law.  None of the securityholders of
either of the Companies (other than the Holders of Registrable Securities) shall
have the right to include any of the securities of any of the Companies in the
Shelf Registration Statement.

       (b) If the Initial Shelf Registration Statement or any Subsequent Shelf
Registration Statement ceases to be effective for any reason at any time during
the Effective ness Period, the Companies shall use all reasonable efforts to
obtain the prompt withdrawal of any order suspending the effectiveness thereof,
and in any event shall within thirty (30) days of such cessation of
effectiveness amend the Shelf Registration Statement in a manner reasonably
expected to obtain the withdrawal of the order suspending the effectiveness
thereof, or file an

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additional Shelf Registration Statement covering all of the securities that as
of the date of such filing are Registrable Securities (a "Subsequent Shelf
Registration Statement"). If a Subsequent Shelf Registration Statement is filed,
the Companies shall use all reasonable efforts to cause the Subsequent Shelf
Registration Statement to become effective as promptly as is practicable after
such filing and to keep such Registration Statement (or subsequent Shelf
Registration Statement) continuously effective until the end of the
Effectiveness Period.

       (c) The Companies shall supplement and amend the Shelf Registration
Statement if required by the rules, regulations or instructions applicable to
the registration form used by the Companies for such Shelf Registration
Statement, if required by the Securities Act or, to the extent to which the
Companies do not reasonably object, as reason ably requested by the Initial
Purchaser or by the Trustee on behalf of the registered Holders.

       (d) Each Holder of Registrable Securities agrees that if such Holder
wishes to sell Registrable Securities pursuant to a Shelf Registration Statement
and related Prospectus, it will do so only in accordance with this Section 2(d)
and Section 3(i).  Each Holder of Registrable Securities wishing to sell
Registrable Securities pursuant to a Shelf Registration Statement and related
Prospectus agrees to deliver a Notice and Questionnaire to the Company at least
five (5) Business Days prior to any intended distribution of Registrable
Securities under the Shelf Registration Statement. From and after the date the
Initial Shelf Registration Statement is declared effective, the Companies shall,
as promptly as is practicable after the date a Notice and Questionnaire is
delivered, (i) if required by applicable law, file with the SEC a post-effective
amendment to the Shelf Registration Statement or prepare and, if required by
applicable law, file a supplement to the related Prospectus or a supplement or
amendment to any document incorporated therein by reference or file any other
document required by the SEC so that the Holder delivering such Notice and
Questionnaire is named as a selling securityholder in the Shelf Registration
Statement and the related Prospectus in such a manner as to permit such Holder
to deliver such Prospectus to purchasers of the Registrable Securities in
accordance with applicable law and, if the Companies shall file a post-effective
amendment to the Shelf Registration Statement, use reasonable efforts to cause
such post-effective amendment to be declared effective under the Securities Act
as promptly as is practicable; (ii) provide such Holder copies of any documents
filed pursuant to Section 2(d)(i); and (iii) notify such Holder as promptly as
practicable after the effectiveness under the Securities Act of any post-
effective amendment filed pursuant to Section 2(d)(i); provided, that if such
Notice and Questionnaire is delivered during a Deferral Period, the Company
shall so inform the Holder delivering such Notice and Questionnaire and shall
take the actions set forth in clauses (i), (ii) and (iii) above upon expiration
of the Deferral Period in accordance with Section 3(i), provided, further, that
if under applicable law the Companies have more than one option as to the type
or manner of making any such filing, as set forth in an opinion of nationally-
recognized counsel experienced in such matters delivered by the Holder to the

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Companies, they will make the required filing or filings in the manner or of a
type that is reasonably expected to result in the earliest availability of the
Prospectus for effecting resales of Registrable Securities. Notwithstanding
anything contained herein to the contrary, the Companies shall be under no
obligation to name any Holder that is not a Notice Holder as a selling
securityholder in any Registration Statement or related Prospectus; provided,
however, that any Holder that becomes a Notice Holder pursuant to the provisions
of Section 2(d) of this Agreement (whether or not such Holder was a Notice
Holder at the time the Registration Statement was initially declared effective)
shall be named as a selling securityholder in the Registration Statement or
related Prospectus subject to and in accordance with the requirements of this
Section 2(d).

       (e) The parties hereto agree that the Holders of the Registrable
Securities will suffer damages, and that it would not be feasible to ascertain
the extent of such damages with precision, if (i) the Initial Shelf Registration
Statement has not been filed on or prior to the Filing Deadline Date, (ii) the
Initial Shelf Registration Statement has not been declared effective under the
Securities Act on or prior to the Effectiveness Deadline Date, or (iii) the
aggregate duration of Deferral Periods in any period exceeds the number of days
permitted in respect of such period pursuant to Section 3(i) hereof (each of the
events of a type described in any of the foregoing clauses (i) through (iii) are
individually referred to herein as an "Event," and the Filing Deadline Date in
the case of clause (i), the Effectiveness Deadline Date in the case of clause
(ii), and the date on which the aggregate duration of Deferral Periods in any
period exceeds the number of days permitted by Section 3(i) hereof in the case
of clause (iii), being referred to herein as an "Event Date").  Events shall be
deemed to continue until the "Event Termination Date," which shall be the
following dates with respect to the respective types of Events: the date the
Initial Shelf Registration Statement is filed in the case of an Event of the
type described in clause (i), the date the Initial Shelf Registration Statement
is declared effective under the Securities Act in the case of an Event of the
type described in clause (ii), termination of the Deferral Period that caused
the limit on the aggregate duration of Deferral Periods in a period set forth in
Section 3(i) to be exceeded in the case of the commencement of an Event of the
type described in clause (iii).

        Accordingly, commencing on (and including) any Event Date and ending on
(but excluding) the next date on which there are no Events that have occurred
and are continuing (a "Damages Accrual Period"), the Companies agree, jointly
and severally, to pay, as liquidated damages and not as a penalty, an amount
(the "Liquidated Damages Amount"), payable on the Damages Payment Dates to
Record Holders of then outstanding Securities that are Registrable Securities
and of then outstanding shares of Underlying Common Shares issued upon
conversion of, or in payment of the purchase price of, Securities that are
Registrable Securities, as the case may be, accruing, for each portion of such
Damages Accrual Period beginning on and including a Damages Payment Date (or, in
respect of the

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first time that the Liquidation Damages Amount is to be paid to Holders on a
Damages Payment Date as a result of the occurrence of any particular Event, from
the Event Date) and ending on, but excluding the first to occur of (A) the date
of the end of the Damages Accrual Period or (B) the next Damages Payment Date,
at a rate per annum equal to one-quarter of one percent (0.25%) for the first
90-day period from the Event Date, and thereafter at a rate per annum equal to
one-half of one percent (0.5%) of the aggregate Applicable Principal Amount of
such Securities and the aggregate Applicable Conversion Price of such shares of
Underlying Common Shares, as the case may be, in each case determined as of the
Business Day immediately preceding the next Damages Payment Date; provided, that
any Liquidated Damages Amount accrued with respect to any Security or portion
thereof called for redemption on a redemption date or converted into Underlying
Common Shares on a conversion date prior to the Damages Payment Date, shall, in
any such event, be paid instead to the Holder who submitted such Security or
portion thereof for redemption or conversion on the applicable redemption date
or conversion date, as the case may be, on such date (or promptly following the
conversion date, in the case of conversion). Notwithstanding the foregoing, no
Liquidated Damages Amounts shall accrue as to any Registrable Security from and
after the earlier of (x) the date such security is no longer a Registrable
Security and (y) expiration of the Effectiveness Period. The rate of accrual of
the Liquidated Damages Amount with respect to any period shall not exceed the
rate provided for in this paragraph notwithstanding the occurrence of multiple
concurrent Events. Following the cure of all Events requiring the payment by the
Companies of Liquidated Damages Amounts to the Holders of Registrable Securities
pursuant to this Section, the accrual of Liquidated Damages Amounts will cease
(without in any way limiting the effect of any subsequent Event requiring the
payment of the Liquidated Damages Amount by the Companies).

        The Trustee shall be entitled, on behalf of Holders of Securities or
Underlying Common Shares, to seek any available remedy for the enforcement of
this Agreement, including for the payment of any Liquidated Damages Amount.
Notwithstanding the foregoing, the parties agree that the sole monetary damages
payable for a violation of the terms of this Agreement with respect to which
liquidated damages are expressly provided shall be such liquidated damages.
Nothing shall preclude a Notice Holder or Holder of Registrable Securities from
pursuing or obtaining specific performance or other equitable relief with
respect to this Agreement.

        All of the respective obligations of the Companies set forth in this
Section 2(e) that are outstanding with respect to any Registrable Security at
the time such security ceases to be a Registrable Security shall survive until
such time as all such obligations with respect to such security have been
satisfied in full (notwithstanding termination of this Agreement pursuant to
Section 8(j)).

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        The parties hereto agree that the liquidated damages provided for in
this Section 2(e) constitute a reasonable estimate of the damages that may be
incurred by Holders of Registrable Securities by reason of the failure of the
Shelf Registration Statement to be filed or declared effective or available for
effecting resales of Registrable Securities in accordance with the provisions
hereof.

       Section 3.    Registration Procedures.  In connection with the
                     -----------------------
registration obligations of the Companies under Section 2 hereof:

       (a) Before filing any Registration Statement or Prospectus or any
amendments or supplements thereto with the SEC, the Companies shall furnish to
the Initial Purchaser copies of all such documents proposed to be filed and use
reasonable efforts to reflect in each such document when so filed with the SEC
such comments as the Initial Purchaser reason ably shall propose within two (2)
Business Days of the delivery of such copies to the Initial Purchaser.

       (b) The Companies shall (i) prepare and file with the SEC such amendments
and post-effective amendments to each Registration Statement as may be necessary
to keep such Registration Statement continuously effective for the applicable
period specified in Section 1(a); (ii) cause the related Prospectus to be
supplemented by any required Prospectus supplement, and as so supplemented to be
filed pursuant to Rule 424 (or any similar provisions then in force) under the
Securities Act; and (iii) use all reasonable efforts to comply with the
provisions of the Securities Act applicable to them with respect to the
disposition of all securities covered by such Registration Statement during the
Effectiveness Period in accordance with the intended methods of disposition by
the sellers thereof set forth in such Registration Statement as so amended or
such Prospectus as so supplemented.

       (c) As promptly as practicable, the Company shall give notice to the
Notice Holders (which notice shall be in a manner appropriate under the
circumstances, which may or may not be the manner of notice described in
Sections 8(b)(w) or (x) hereof) and the Initial Purchaser (i) when any
Prospectus, Prospectus supplement, Registration Statement or post-effective
amendment to a Registration Statement has been filed with the SEC and, with
respect to a Registration Statement or any post-effective amendment, when the
same has been declared effective, (ii) of any request, following the
effectiveness of the Initial Shelf Registration Statement under the Securities
Act, by the SEC or any other federal or state governmental authority for
amendments or supplements to any Registration Statement or related Prospectus or
for additional information, (iii) of the issuance by the SEC or any other
federal or state governmental authority of any stop order suspending the
effectiveness of any Registration Statement or the initiation or threatening of
any proceedings for that purpose, (iv) of the receipt by either of the Companies
of any notification with respect to the suspen-

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sion of the qualification or exemption from qualification of any of the
Registrable Securities for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose, (v) of the occurrence of (but
not the nature of or details concerning) a Material Event (provided, however,
that no notice by the Companies shall be required pursuant to this clause (v) in
the event that the Companies either promptly file or cause to be filed a
Prospectus supplement to update the Prospectus or a Form 8-K or other
appropriate Exchange Act report that is incorporated by reference into the
Registration Statement, which, in either case, contains the requisite
information with respect to such Material Event that results in such
Registration Statement no longer containing any untrue statement of material
fact or omitting to state a material fact necessary to make the statements
contained therein not misleading) and (vi) of the determination by the Companies
that a post-effective amendment to a Registration Statement will be filed with
the SEC, which notice may, at the discretion of the Companies (or as required
pursuant to Section 3(i)), state that it constitutes a Deferral Notice, in which
event the provisions of Section 3(i) shall apply.

       (d) The Companies shall use reasonable efforts to obtain the withdrawal
of any order suspending the effectiveness of a Registration Statement or the
lifting of any suspension of the qualification (or exemption from qualification)
of any of the Registrable Securities for sale in any jurisdiction in which they
have been qualified for sale, in either case at the earliest possible moment.

       (e) If reasonably requested by the Initial Purchaser or any Notice
Holder, the Companies shall as promptly as reasonably practicable incorporate in
a Prospectus supplement or post-effective amendment to a Registration Statement
such information as the Initial Purchaser or such Notice Holder shall, on the
basis of an opinion of nationally-recognized counsel experienced in such
matters, determine to be required to be included therein by applicable law and
make any required filings of such Prospectus supplement or such post-effective
amendment; provided, that the Companies shall not be required to take any
actions under this Section 3(e) that are not, in the reasonable opinion of
counsel for the Companies, in compliance with applicable law.

       (f) As promptly as reasonably practicable, the Company shall furnish to
each Notice Holder and the Initial Purchaser, upon their request and without
charge, at least one (1) conformed copy of the Registration Statement and any
amendment thereto, including financial statements, but excluding schedules, all
documents incorporated or deemed to be incorporated therein by reference and all
exhibits (unless requested in writing to the Company by such Notice Holder or
the Initial Purchaser, as the case may be).

       (g) During the Effectiveness Period, the Company shall deliver to each
Notice Holder in connection with any sale of Registrable Securities pursuant to
a Registration

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Statement, without charge, as many copies of the Prospectus or Prospectuses
relating to such Registrable Securities (including each preliminary prospectus)
and any amendment or supplement thereto as such Notice Holder may reasonably
request; and the Companies hereby consent (except during such periods that a
Deferral Notice is outstanding and has not been revoked) to the use of such
Prospectus or each amendment or supplement thereto by each Notice Holder in
connection with any offering and sale of the Registrable Securities covered by
such Prospectus or any amendment or supplement thereto in the manner set forth
therein.

       (h) Prior to any public offering of the Registrable Securities pursuant
to the Shelf Registration Statement, the Companies shall (i) use all reasonable
efforts to register or qualify or cooperate with the Notice Holders in
connection with the registration or qualification (or exemption from such
registration or qualification) of such Registrable Securities for offer and sale
under the securities or Blue Sky laws of such jurisdictions within the United
States as any Notice Holder reasonably requests by written notice to the Company
(which request may be included in the Notice and Questionnaire); and (ii) prior
to any public offering of the Registrable Securities pursuant to the Shelf
Registration Statement, use all reasonable efforts to keep each such
registration or qualification (or exemption therefrom) effective during the
Effectiveness Period in connection with such Notice Holder's offer and sale of
Registrable Securities pursuant to such registration or qualification (or
exemption therefrom) and do any and all other acts or things necessary or
advisable to enable the disposition in such jurisdictions of such Registrable
Securities in the manner set forth in the relevant Registration Statement and
the related Prospectus; provided, that neither of the Companies will be required
to (i) qualify as a foreign corporation or as a dealer in securities in any
jurisdiction where it would not otherwise be required to qualify but for this
Agreement or (ii) take any action that would subject it to general service of
process in suits or to taxation in any such jurisdiction where it is not then so
subject.

       (i) Upon (A) the issuance by the SEC of a stop order suspending the
effectiveness of the Shelf Registration Statement or the initiation of
proceedings with respect to the Shelf Registration Statement under Section 8(d)
or 8(e) of the Securities Act, (B) the occurrence of any event or the existence
of any fact (a "Material Event") as a result of which any Registration Statement
shall contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein not misleading, or any Prospectus shall contain any untrue statement of
a material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading, or (C) the occurrence or existence
of any pending corporate development with respect to either of the Companies
that, in the discretion of the Companies, makes it appropriate to suspend the
availability of the Shelf Registration Statement and the related Prospectus, (i)
in the case of clause (B) above, subject to the next sentence, the Companies
shall as
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promptly as practicable prepare and file a post-effective amendment to such
Registration Statement or a supplement to the related Prospectus or any document
incorporated therein by reference or file any other required document that would
be incorporated by reference into such Registration Statement and Prospectus so
that such Registration Statement does not contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein not misleading, and such Prospectus
does not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not
misleading, as thereafter delivered to the purchasers of the Registrable
Securities being sold thereunder, and, in the case of a post-effective amendment
to a Registration Statement, subject to the next sentence, use all reasonable
efforts to cause it to be declared effective as promptly as is reasonably
practicable, and (ii) the Company shall give notice to the Notice Holders that
the availability of the Shelf Registration Statement is suspended (a "Deferral
Notice") and, upon receipt of any Deferral Notice, each Notice Holder agrees not
to sell any Registrable Securities pursuant to the Registration Statement until
such Notice Holder's receipt of copies of the supplemented or amended Prospectus
provided for in clause (i) above, or until it is advised in writing by the
Company that the Prospectus may be used, and has received copies of any
additional or supplemental filings that are incorporated or deemed incorporated
by reference in such Prospectus. The Companies will use all reasonable efforts
to ensure that the use of the Prospectus may be resumed (x) in the case of
clause (A) above, as promptly as is practicable, (y) in the case of clause (B)
above, as soon as, in the sole judgment of the Companies, public disclosure of
such Material Event would not be prejudicial to or contrary to the interests of
either of the Companies or, if necessary to avoid unreasonable burden or
expense, as soon as reasonably practicable thereafter and (z) in the case of
clause (C) above, as soon as, in the discretion of the Companies, such
suspension is no longer appropriate. The period during which the availability of
the Registration Statement and any Prospectus is suspended (the "Deferral
Period") shall, without the Companies incurring any obligation to pay liquidated
damages pursuant to Section 2(e), not exceed forty-five (45) days in any three
(3) month period or one hundred and twenty (120) days in any twelve (12) month
period.

       (j) If reasonably requested by written notice to the Company in
connection with a disposition of Registrable Securities pursuant to a
Registration Statement, the Companies shall make reasonably available for
inspection during normal business hours by a representative for the Notice
Holders of such Registrable Securities and any broker-dealers, attorneys and
accountants retained by such Notice Holders, all relevant financial and other
records, pertinent corporate documents and properties of the Companies and their
subsidiaries, and cause the appropriate executive officers, directors and
designated employees of the Companies and their subsidiaries to make reasonably
available for inspection during normal business hours all relevant information
reasonably requested by such representative for the

                                      12
<PAGE>

Notice Holders or any such broker-dealers, attorneys or accountants in
connection with such disposition, in each case as is customary for similar "due
diligence" examinations; provided, however, that such persons shall first agree
in writing with the Companies that any information that is reasonably and in
good faith designated by the Companies in writing as confidential at the time
of delivery of such information shall be kept confidential by such persons and
shall be used solely for the purposes of exercising rights under this Agreement,
unless (i) disclosure of such information is required by court or administrative
order or is necessary to respond to inquiries of regulatory authorities, (ii)
disclosure of such information is required by law (including any disclosure
requirements pursuant to federal securities laws in connection with the filing
of any Registration Statement or the use of any Prospectus referred to in this
Agreement), (iii) such information becomes generally available to the public
other than as a result of a disclosure or failure to safeguard by any such
person or (iv) such information becomes available to any such person from a
source other than the Companies and such source is not bound by a
confidentiality agreement; and provided further, that the foregoing inspection
and information gathering shall, to the greatest extent possible, be coordinated
on behalf of all the Notice Holders and the other parties entitled thereto by
the counsel referred to in Section 5.

       (k) The Companies shall comply with all applicable rules and regulations
of the SEC and Tyco shall make generally available to its securityholders
earning statements (which need not be audited) satisfying the provisions of
Section 11(a) of the Securities Act and Rule 158 thereunder (or any similar rule
promulgated under the Securities Act) no later than 45 days after the end of any
12-month period (or 90 days after the end of any 12-month period if such period
is a fiscal year) commencing on the first day of Tyco's first fiscal quarter
commencing after the effective date of a Registration Statement, which
statements shall cover said 12-month periods.

       (l) The Companies shall cooperate with each Notice Holder to facilitate
the timely preparation and delivery of certificates representing Registrable
Securities sold pursuant to a Registration Statement, and cause such Registrable
Securities to be in such denominations as are permitted by the Indenture and
registered in such names as such Notice Holder may request in writing at least
two Business Days prior to any sale of such Registrable Securities.

       (m) The Companies shall provide a CUSIP number for all Registrable
Securities covered by each Registration Statement not later than the effective
date of such Registration Statement and provide the Trustee for the Securities
and the transfer agent for the Common Shares with printed certificates for the
Registrable Securities that are in a form eligible for deposit with The
Depository Trust Company.

                                      13
<PAGE>

       (n) The Companies shall make a reasonable effort to provide such
information as is required for any filings required to be made with the National
Association of Securities Dealers, Inc.

       (o) Upon (i) the filing of the Initial Shelf Registration Statement and
(ii) the effectiveness of the Initial Shelf Registration Statement, the
Companies shall announce the same, in each case by release to Reuters Economic
Services and Bloomberg Business News.

       (p) The Companies shall enter into such customary agreements and take all
such other reasonable necessary actions in connection therewith (including those
reasonably requested by the Holders of a majority of the Registrable Securities
being sold) in order to expedite or facilitate disposition of such Registrable
Securities; and

       (q) The Companies shall cause the Indenture to be qualified under the TIA
not later than the effective date of any Registration Statement; and in
connection therewith, cooperate with the Trustee to effect such changes to the
Indenture as may be required for the Indenture to be so qualified in accordance
with the terms of the TIA and execute, and use all reasonable efforts to cause
the Trustee to execute, all documents as may be required to effect such changes,
and all other forms and documents required to be filed with the SEC to enable
the Indenture to be so qualified in a timely manner.

       Section 4.    Holder's Obligations.  Each Holder agrees, by acquisition
                     --------------------
of the Registrable Securities, that no Holder of Registrable Securities shall be
entitled to sell any of such Registrable Securities pursuant to a Registration
Statement or to receive a Prospectus relating thereto, unless such Holder has
furnished the Company with a Notice and Questionnaire as required pursuant to
Section 2(d) hereof (including the information required to be included in such
Notice and Questionnaire) and the information set forth in the next sentence.
Each Notice Holder agrees promptly to furnish to the Company all information
required to be disclosed in order to make the information previously furnished
to the Company by such Notice Holder not misleading and any other information
regarding such Notice Holder and the distribution of such Registrable Securities
as may be required to be disclosed in the Registration Statement under
applicable law or pursuant to SEC comments or as the Companies may reasonably
request.  Each Holder further agrees, following termination of the Effectiveness
Period, to notify the Company within 10 business days of request, of the amount
of Registrable Securities sold pursuant to the Registration Statement and, in
the absence of a response, the Companies may assume that all of the Holder's
Registrable Securities were so sold.

       Section 5.    Registration Expenses. The Companies shall bear all fees
                     ---------------------
and expenses incurred in connection with the performance by the Companies of
their respective

                                      14
<PAGE>

obligations under Sections 2 and 3 of this Agreement whether or not any of the
Registration Statements are declared effective. Such fees and expenses shall
include, without limitation, (i) all registration and filing fees (including,
without limitation, fees and expenses (x) with respect to filings required to be
made with the National Association of Securities Dealers, Inc. and (y) of
compliance with federal and state securities or Blue Sky laws (including,
without limitation, reasonable fees and disbursements of the counsel specified
in the next sentence in connection with Blue Sky qualifications of the
Registrable Securities under the laws of such jurisdictions as the Notice
Holders of a majority of the Registrable Securities being sold pursuant to a
Registration Statement may designate)), (ii) printing expenses (including,
without limitation, expenses of printing certificates for Registrable Securities
in a form eligible for deposit with The Depository Trust Company), (iii)
duplication expenses relating to copies of any Registration Statement or
Prospectus delivered to any Holders hereunder, (iv) fees and disbursements of
counsel for the Companies in connection with the Shelf Registration Statement,
and (v) reasonable fees and disbursements of the Trustee and its counsel and of
the registrar and transfer agent for the Common Shares. In addition, the
Companies shall bear or reimburse the Notice Holders for the fees and
disbursements of one firm of legal counsel for the Holders (which shall not
exceed $20,000 in the aggregate), which shall, upon the written consent of the
Initial Purchaser (which shall not be unreason ably withheld), be a nationally
recognized law firm experienced in securities law matters designated by the
Companies. In addition, each of the Companies shall pay its internal expenses
(including, without limitation, all salaries and expenses of officers and
employees performing legal or accounting duties), the expense of any annual
audit, the fees and expenses incurred in connection with the listing of the
Registrable Securities on any securities exchange on which similar securities
of the Companies are then listed and the fees and expenses of any person,
including special experts, retained by the Companies.

       Section 6.    Indemnification; Contribution.  (a)  The Companies agree,
                     -----------------------------
jointly and severally, to indemnify and hold harmless the Initial Purchaser and
each Holder of Registrable Securities and each person, if any, who controls the
Initial Purchaser or any Holder of Registrable Securities within the meaning of
either Section 15 of the Securities Act or Section 20 of the Exchange Act, as
follows:

       (i) against any and all loss, liability, claim, damage and expense
  whatsoever, as incurred, arising out of any untrue statement or alleged untrue
  statement of a material fact contained in the Registration Statement (or any
  amendment thereto), or the omission or alleged omission therefrom of a
  material fact necessary in order to make the statements therein, in light of
  the circumstances under which they were made, not misleading or arising out of
  any untrue statement or alleged untrue statement of a material fact included
  in any preliminary prospectus or the Prospectus (or any amendment or
  supplement thereto), or the omission or alleged omission therefrom of a
  material fact necessary in

                                      15
<PAGE>

  order to make the statements therein, in the light of the circumstances under
  which they were made, not misleading;

       (ii)   against any and all loss, liability, claim, damage and expense
  whatsoever, as incurred, to the extent of the aggregate amount paid in
  settlement of any litigation, or any investigation or proceeding by any
  governmental agency or body, commenced or threatened, or of any claim
  whatsoever based upon any such untrue statement or omission, or any such
  alleged untrue statement or omission, provided that (subject to Section 6(d)
  below) any such settlement is effected with the prior written consent of the
  Companies; and

       (iii)  subject to Section 6(c) below, against any and all expense
  whatsoever, as incurred (including the fees and disbursements of counsel),
  reasonably incurred in investigating, preparing or defending against any
  litigation, or any investigation or proceeding by any governmental agency or
  body, commenced or threatened, or any claim whatsoever based upon any such
  untrue statement or omission, or any such alleged untrue statement or
  omission, to the extent that any such expense is not paid under (i) or (ii)
  above;

provided, however, that this indemnity agreement shall not apply to any loss,
--------  -------
liability, claim, damage or expense to the extent arising out of any untrue
statement or omission or alleged untrue statement or omission made in reliance
upon and in conformity with written information furnished to the Companies by
or on behalf of the Initial Purchaser, such Holder of Registrable Securities
(which also acknowledges the indemnity provisions herein) or any person, if any,
who controls the Initial Purchaser or any such Holder of Registrable Securities
expressly for use in the Registration Statement (or any amendment thereto), or
any preliminary prospectus or the Prospectus (or any amendment or supplement
thereto); provided, further, that this indemnity agreement shall not apply to
any loss, liability, claim, damage or expense (1) arising from an offer or sale
of Registrable Securities occurring during a Deferral Period, if the Notice
Holder received a Deferral Notice, or (2) if the Holder fails to deliver at or
prior to the written confirmation of sale, the most recent Prospectus, as
amended or supplemented, and such Prospectus, as amended or supplemented, would
have corrected such untrue statement or omission or alleged untrue statement or
omission of a material fact.

       (b) In connection with any Shelf Registration in which a Holder,
including, without limitation, the Initial Purchaser, of Registrable Securities
is participating, in furnishing information relating to such Holder of
Registrable Securities to the Companies in writing expressly for use in such
Registration Statement, any preliminary prospectus, the Prospectus or any
amendments or supplements thereto, the Holders of such Registrable Securities
agree, severally and not jointly, to indemnify and hold harmless the Initial
Purchaser and each person,

                                      16
<PAGE>

if any, who controls the Initial Purchaser within the meaning of either Section
15 of the Securities Act or Section 20 of the Exchange Act and the Companies,
and each person, if any, who controls either of the Companies within the meaning
of either such Section, against any and all loss, liability, claim, damage and
expense described in the indemnity contained in subsection (a) of this Section,
as incurred, but only with respect to untrue statements or omissions, or alleged
untrue statements or omissions, made in the Registration Statement (or any
amendment thereto), or any preliminary prospectus or the Prospectus (or any
amendment or supplement thereto) in reliance upon and in conformity with written
information furnished to the Companies by or on behalf of such Holder of
Registrable Securities (which also acknowledges the indemnity provisions herein)
or any person, if any, who controls any such Holder of Registrable Securities
expressly for use in the Registration Statement (or any amendment thereto) or
such preliminary prospectus or the Prospectus (or any amendment or supplement
thereto).

       (c) Each indemnified party shall give notice as promptly as reasonably
practicable to each indemnifying party of any action commenced against it in
respect of which indemnity may be sought hereunder, but failure to so notify an
indemnifying party shall not relieve such indemnifying party from any liability
hereunder to the extent it is not materially prejudiced as a result thereof and
in any event shall not relieve it from any liability which it may have otherwise
than on account of this indemnity agreement. The indemnifying party, upon
request of the indemnified party, shall retain counsel reasonably satisfactory
to the indemnified party to represent the indemnified party and any others the
indemnifying party may designate in such proceeding and shall pay the fees and
disbursements of such counsel related to such proceeding. In any such
proceeding, any indemnified party shall have the right to retain its own
counsel, but the fees and expenses of such counsel shall be at the expense of
such indemnified party unless (i) the indemnifying party and the indemnified
party shall have mutually agreed to the retention of such counsel or (ii) the
named parties to any such proceeding (including any impleaded parties) include
both the indemnifying party and the indemnified party and representation of both
parties by the same counsel would be inappropriate due to actual or potential
differing interests between them. It is understood that the indemnifying party
shall not, in respect of the legal expenses of any indemnified party in
connection with any proceeding or related proceedings in the same jurisdiction,
be liable for (a) the fees and expenses of more than one separate firm (in
addition to any local counsel) for the Initial Purchaser, Holders of Registrable
Securities, and all persons, if any, who control the Initial Purchaser or
Holders of Registrable Securities within the meaning of either Section 15 of the
Securities Act or Section 20 of the Exchange Act, (b) the fees and expenses of
more than one separate firm (in addition to any local counsel) for the
Companies, their respective directors, and each person, if any, who controls
either of the Companies within the meaning of either such Section, and that all
such fees and expenses shall be reimbursed as they are incurred. In the case of
any such separate firm for the Initial Purchaser, Holders of Registrable

                                      17
<PAGE>

Securities, and control persons of the Initial Purchaser and Holders of
Registrable Securities, such firm shall be designated in writing by the Initial
Purchaser. In the case of any such separate firm for the Companies, and such
directors, officers and control persons of either of the Companies, such firm
shall be designated in writing by the Companies. The indemnifying party shall
not be liable for any settlement of any proceeding effected without its written
consent, but if settled with such consent or if there be a final judgment for
the plaintiff, the indemnifying party agrees to indemnify the indemnified party
from and against any loss or liability by reason of such settlement or judgment.
Notwithstanding the foregoing sentence, if at any time an indemnified party
shall have requested an indemnifying party to reimburse the indemnified party
for fees and expenses of counsel as contemplated by the second and third
sentences of this paragraph, the indemnifying party agrees that it shall be
liable for any settlement of any proceeding effected without its written consent
if (i) such settlement is entered into more than 30 days after receipt by such
indemnifying party of the aforesaid request and (ii) such indemnifying party
shall not have reimbursed the indemnified party in accordance with such request
prior to the date of such settlement. No indemnifying party shall, without the
prior written consent of the indemnified parties, settle or compromise or
consent to the entry of any judgment with respect to any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or
threatened, or any claim whatsoever in respect of which indemnification or
contribution could be sought under this Section 6 hereof (whether or not the
indemnified parties are actual or potential parties thereto), unless such
settlement, compromise or consent (i) includes an unconditional release of each
indemnified party from all liability arising out of such litigation,
investigation, proceeding or claim and (ii) does not include a statement as to
or an admission of fault, culpability or a failure to act by or on behalf of any
indemnified party.

       (d) If at any time an indemnified party shall have requested an
indemnifying party to reimburse the indemnified party for fees and expenses of
counsel, such indemnifying party agrees that it shall be liable for any
settlement of the nature contemplated by Section 6(a)(ii) effected without its
written consent if (i) such settlement is entered into more than 60 days after
receipt by such indemnifying party of aforesaid request, (ii) such indemnifying
party shall have received notice of the terms of such settlement at least 30
days prior to such settlement being entered into and (iii) such indemnifying
party shall not have reimbursed such indemnified party in accordance with such
request prior to the date of such settlement.

       (e) If the indemnification provided for in this Section 6 is for any
reason unavailable to or insufficient to hold harmless an indemnified party in
respect of any losses, liabilities, claims, damages or expenses referred to
therein, then each indemnifying party shall contribute to the aggregate amount
of such losses, liabilities, claims, damages and expenses incurred by such
indemnified party, as incurred, in such proportion as is appropriate to reflect
the relative fault of the indemnifying party or parties on the one hand and of
the indemnified

                                      18
<PAGE>

party on the other hand in connection with the statements or omissions which
resulted in such losses, liabilities, claims, damages or expenses, as well as
any other relevant equitable considerations.

       The relative fault of the Companies on the one hand and the Holders of
the Registrable Securities or the Initial Purchaser on the other hand shall be
determined by reference to, among other things, whether any such untrue or
alleged untrue statement of a material fact or omission or alleged omission to
state a material fact relates to information supplied by the Companies or by the
Holder of the Registrable Securities or the Initial Purchaser and the parties'
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.

       The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 6(e) were determined by pro rata
allocation or by any other method of allocation which does not take account of
the equitable considerations referred to above in this Section 6(e). The
aggregate amount of losses, liabilities, claims, damages and expenses incurred
by an indemnified party and referred to above in this Section 6(e) shall be
deemed to include any legal or other expenses reasonably incurred by such
indemnified party in investigating, preparing or defending against any
litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever based upon any such
untrue or alleged untrue statement or omission or alleged omission.

       Notwithstanding the provisions of this Section 6, neither the Holder of
any Registrable Securities nor the Initial Purchaser, shall be required to
indemnify or contribute any amount in excess of the amount by which the total
price at which the Registrable Securities sold by such Holder of Registrable
Securities or by the Initial Purchaser, as the case may be, and distributed to
the public were offered to the public exceeds the amount of any damages that
such Holder of Registrable Securities or the Initial Purchaser has otherwise
been required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission.

       No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation.

       For purposes of this Section 6(e), each person, if any, who controls the
Initial Purchaser or any Holder of Registrable Securities within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act shall have
the same rights to contribution as the Initial Purchaser or such Holder, and
each person, if any, who controls either of the

                                      19
<PAGE>

Companies within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act shall have the same rights to contribution as the Companies.

       Section 7.    Information Requirements.  Tyco covenants that, if at any
                     ------------------------
time before the end of the Effectiveness Period Tyco is not subject to the
reporting requirements of the Exchange Act, it will cooperate with any Holder of
Registrable Securities and take such further reasonable action as any Holder of
Registrable Securities may reasonably request in writing (including, without
limitation, making such reasonable representations as any such Holder may
reasonably request), all to the extent required from time to time to enable such
Holder to sell Registrable Securities without registration under the Securities
Act within the limitation of the exemptions provided by Rule 144 and Rule 144A
under the Securities Act and customarily taken in connection with sales pursuant
to such exemptions.  Upon the written request to Tyco of any Holder of
Registrable Securities, Tyco shall deliver to such Holder a written statement as
to whether it has complied with such filing requirements, unless such a
statement has been included in Tyco's most recent report required to be filed
and filed pursuant to Section 13 or Section 15(d) of Exchange Act.
Notwithstanding the foregoing, nothing herein shall be deemed to require either
of the Companies to register any of its securities under any section of the
Exchange Act.

       Section 8.    Miscellaneous; No Conflicting Agreements.  Neither of the
                     ----------------------------------------
Companies is, as of the date hereof, a party to, nor shall either of the
Companies, on or after the date of this Agreement, enter into, any agreement
with respect to its securities that conflicts with the rights granted to the
Holders of Registrable Securities in this Agreement. Each of the Companies
represents and warrants that the rights granted to the Holders of Registrable
Securities hereunder do not in any way conflict with the rights granted to the
respective holders of the securities of such Companies under any other
agreements.

       (a) Amendments and Waivers.  The provisions of this Agreement, including
           ----------------------
the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be
given, unless the Companies have obtained the written consent of Holders of a
majority of the then outstanding Underlying Common Shares constituting
Registrable Securities (with Holders of the Securities deemed to be the Holders,
for purposes of this Section, of the number of outstanding shares of Underlying
Common Shares into which such Securities are or would be convertible or
exchangeable as of the date on which such consent is requested).
Notwithstanding the foregoing, a waiver or consent to depart from the provisions
hereof with respect to a matter that relates exclusively to the rights of
Holders of Registrable Securities whose securities are being sold pursuant to a
Registration Statement and that does not directly or indirectly affect the
rights of other Holders of Registrable Securities may be given by Holders of at
least a majority of the Registrable Securities being sold by such Holders
pursuant to such Registration Statement;

                                      20
<PAGE>

provided, that the provisions of this sentence may not be amended, modified, or
supplemented except in accordance with the provisions of the immediately
preceding sentence. Each Holder of Registrable Securities outstanding at the
time of any such amendment, modification, supplement, waiver or consent or
thereafter shall be bound by any such amendment, modification, supplement,
waiver or consent effected pursuant to this Section 8(b), whether or not any
notice, writing or marking indicating such amendment, modification, supplement,
waiver or consent appears on the Registrable Securities or is delivered to such
Holder.

       (b) Notices.  All notices and other communications provided for or
           -------
permitted hereunder shall (except with respect to the notice described in
Section 3(c)) be made in writing by hand delivery, by telecopier, by courier
guaranteeing overnight delivery or by first-class mail, return receipt
requested, and shall be deemed given (i) when made, if made by hand delivery,
(ii) upon confirmation, if made by telecopier, (iii) one (1) Business Day after
being deposited with such courier, if made by overnight courier or (iv) on the
date indicated on the notice of receipt, if made by first-class mail, to the
parties as follows:

       (w) if to a Holder of Registrable Securities that is not a Notice Holder,
at the address for such Holder then appearing in the Registrar (as defined in
the Indenture);

       (x) if to a Notice Holder, at the most current address given by such
Holder to the Company in a Notice and Questionnaire or any amendment thereto;

                                      21
<PAGE>

       (y)  if to the Company, to:

            Tyco International Group S.A.
            6 Avenue Emile Reuter
            2/nd/ Floor
            L-2420 Luxembourg
            Attention:  Managing Director
            Telecopy No.:  352-464-350

            if to Tyco, to:

            Tyco International Ltd.
            The Zurich Centre, Second Floor
            90 Pitts Bay Road
            Pembroke HM 08, Bermuda
            Attention:  Chief Corporate Counsel
            Telecopy No.:  441-295-9647

       with a copy, in each case, to:

            Tyco International (US) Inc.
            9 West 57/th/ Street, 43/rd/ Floor
            New York, NY 10019
            Attention:  Chief Corporate Counsel
            Telecopy No.:  646-282-8554

       and

            Wilmer, Cutler & Pickering
            2445 M Street, N.W.
            Washington, D.C. 20037
            Attention:  Meredith B. Cross, Esq.
            Telecopy No.:  202-663-6363

       and

       (z)  if to the Initial Purchaser, to:

                                      22
<PAGE>

            Credit Suisse First Boston Corporation
            Eleven Madison Avenue
            New York, New York  10010
            Attention:  Transactions Advisory Group
            Telecopy No.:  212-892-0679

or to such other address as such person may have furnished to the other persons
identified in this Section 8(c) in writing in accordance herewith.

       (c) Approval of Holders.  Whenever the consent or approval of Holders of
           -------------------
a specified percentage of Registrable Securities is required hereunder,
Registrable Securities held by the Companies or their affiliates (as such term
is defined in Rule 405 under the Securities Act) (other than the Initial
Purchaser or subsequent Holders of Registrable Securities if such subsequent
Holders are deemed to be such affiliates solely by reason of their holdings of
such Registrable Securities) shall not be counted in determining whether such
consent or approval was given by the Holders of such required percentage.

       (d) Successors and Assigns.  Any person who purchases any Registrable
           ----------------------
Securities from the Initial Purchaser shall be deemed, for purposes of this
Agreement, to be an assignee of the Initial Purchaser.  This Agreement shall
inure to the benefit of and be binding upon the successors and assigns of each
of the parties and shall inure to the benefit of and be binding upon each Holder
of any Registrable Securities.

       (e) Counterparts.  This Agreement may be executed in any number of
           ------------
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be original and all of which taken together
shall constitute one and the same agreement.

       (f) Headings.  The headings in this Agreement are for convenience of
           --------
reference only and shall not limit or otherwise affect the meaning hereof.

       (g) Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
           -------------
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

       (h) Severability.  If any term, provision, covenant or restriction of
           ------------
this Agreement is held to be invalid, illegal, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected, impaired
or invalidated thereby, and the parties hereto shall use their best efforts to
find and employ an alternative means to achieve the same or substantially

                                      23
<PAGE>

the same result as that contemplated by such term, provision, covenant or
restriction, it being intended that all of the rights and privileges of the
parties shall be enforceable to the fullest extent permitted by law.

       (i) Entire Agreement.  This Agreement is intended by the parties as a
           ----------------
final expression of their agreement and is intended to be a complete and
exclusive statement of the agreement and understanding of the parties hereto in
respect of the subject matter contained herein and the registration rights
granted by the Companies with respect to the Registrable Securities.  Except as
provided in the Purchase Agreement, there are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein,
with respect to the registration rights granted by the Companies with respect to
the Registrable Securities. This Agreement supersedes all prior agreements and
undertakings among the parties with respect to such registration rights.

       (j) Termination.  This Agreement and the obligations of the parties
           -----------
hereunder shall terminate upon the end of the Effectiveness Period, except for
any liabilities or obligations under Sections 4, 5 or 6 hereof and the
obligations to make payments of and provide for liquidated damages under Section
2(e) hereof to the extent such damages accrue prior to the end of the
Effectiveness Period, each of which shall remain in effect in accordance with
its terms.

                                      24
<PAGE>

       IN WITNESS WHEREOF, the parties have executed this Registration Rights
Agreement as of the date first written above.

                         TYCO INTERNATIONAL GROUP S.A.

                         By:
                            _____________________________
                            Name:
                            Title:

                         TYCO INTERNATIONAL LTD.

                         By:
                            _____________________________
                            Name:
                            Title:

Accepted as of the date
first above written:

CREDIT SUISSE FIRST BOSTON CORPORATION

By:______________________________________________________
                   Authorized Signatory<PAGE>

                                                               EXHIBIT 10(XXIII)

                           MERRILL LYNCH & CO., INC.

                        2001 DEFERRED COMPENSATION PLAN

                    FOR A SELECT GROUP OF ELIGIBLE EMPLOYEES

                          DATED AS OF OCTOBER 5, 2000

THIS DOCUMENT CONSTITUTES PART OF A PROSPECTUS COVERING SECURITIES THAT HAVE
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.
<PAGE>

                           MERRILL LYNCH & CO., INC.
                        2001 DEFERRED COMPENSATION PLAN
                    FOR A SELECT GROUP OF ELIGIBLE EMPLOYEES

                               Table of Contents

<TABLE>
<CAPTION>
                                                                                       Page
                                                                                       ----
<S>                                                                                    <C>
  I.   GENERAL......................................................................     1
       1.1   Purpose and Intent.....................................................     1
       1.2   Definitions............................................................     1
 II.   ELIGIBILITY..................................................................     5
       2.1   Eligible Employees.....................................................     5
             (a)   General Rule.....................................................     5
             (b)   Individuals First Employed During Election Year or Plan Year.....     5
             (c)   Disqualifying Factors............................................     5
III.   DEFERRAL ELECTIONS; ACCOUNTS.................................................     6
       3.1   Deferral Elections.....................................................     6
             (a)   Timing and Manner of Making of Elections.........................     6
             (b)   Irrevocability of Deferral Election..............................     6
             (c)   Application of Election..........................................     6
       3.2   Crediting to Accounts..................................................     6
             (a)   Initial Deferrals................................................     6
             (b)   ML Ventures and Other Private Return Options.....................     6
       3.3   Minimum Requirements for Deferral......................................     6
             (a)   Minimum Requirements.............................................     7
             (b)   Failure to Meet Requirements.....................................     7
       3.4   Return Options; Adjustment of Accounts.................................     7
             (a)   Selection of ML Ventures Return Option...........................     7
             (b)   Selection of Mutual Fund Return Options..........................     7
             (c)   Selection of the ML Ventures Leverage Percentage
                   by Eligible Participants.........................................     8
             (d)   Adjustments of ML Ventures.......................................     8
             (e)   Adjustment of Debit Balance......................................     8
             (f)   Adjustment of Mutual Fund Return Balances........................     8
             (g)   Annual Charge....................................................     9
             (h)   Rollover Option..................................................     9
       3.5   Rescission of Deferral Election........................................    10
             (a)   Prior to December 1, 2000........................................    10
             (b)   Adverse Tax Determination........................................    10
             (c)   Rescission For Amounts Not Yet Earned............................    10
 IV.   STATUS OF DEFERRED AMOUNTS AND ACCOUNT.......................................    11
       4.1   No Trust or Fund Created; General Creditor Status......................    11
       4.2   Non-Assignability......................................................    11
       4.3   Effect of Deferral on Benefits Under Pension and
              Welfare Benefit Plans.................................................    11
</TABLE>

                                      -i-
<PAGE>

<TABLE>
<CAPTION>
                                                                                      Page
                                                                                      ----
<S>                                                                                    <C>
V.     PAYMENT OF ACCOUNT...........................................................    11
       5.1   Manner of Payment......................................................    11
             (a)   Regular Payment Elections........................................    11
             (b)   Modified Installment Payments....................................    12
       5.2   Termination of Employment..............................................    12
             (a)   Death or Retirement..............................................    12
             (b)   Other Termination of Employment - Forfeiture of Leverage.........    13
             (c)   Leave of Absence, Transfer or Disability.........................    13
             (d)   Discretion to Alter Payment Date.................................    13
       5.3   Withholding of Taxes...................................................    13
       5.4   Beneficiary ...........................................................    14
             (a)   Designation of Beneficiary.......................................    14
             (b)   Change in Beneficiary............................................    14
             (c)   Default Beneficiary..............................................    14
             (d)   If the Beneficiary Dies During Payment...........................    14
       5.5   Hardship Distributions.................................................    14
       5.6   Domestic Relations Orders..............................................    15
 VI.   ADMINISTRATION OF THE PLAN...................................................    15
       6.1   Powers of the Administrator............................................    15
       6.2   Payments on Behalf of an Incompetent...................................    15
       6.3   No Right of Set Off....................................................    16
       6.4   Corporate Books and Records Controlling................................    16
VII.   MISCELLANEOUS PROVISIONS.....................................................    16
       7.1   Litigation.............................................................    16
       7.2   Headings Are Not Controlling...........................................    16
       7.3   Governing Law..........................................................    16
       7.4   Amendment and Termination..............................................    16
 </TABLE>

                                     -ii-
<PAGE>

                           MERRILL LYNCH & CO., INC.
                        2001 DEFERRED COMPENSATION PLAN
                   FOR A SELECT GROUP OF ELIGIBLE EMPLOYEES

                                   ARTICLE I

                                    GENERAL

1.1  Purpose and Intent.

     The purpose of the Plan is to encourage the employees who are integral to
the success of the business of the Company to continue their employment by
providing them with flexibility in meeting their future income needs.  This Plan
is unfunded and maintained primarily for the purpose of providing deferred
compensation for a select group of management or highly compensated employees
within the meaning of Title I of ERISA, and all decisions concerning who is to
be considered a member of that select group and how this Plan shall be
administered and interpreted shall be consistent with this intention.

1.2  Definitions.

     For the purpose of the Plan, the following terms shall have the meanings
indicated.

     "Account" means the notional account established on the books and records
of ML & Co. for each Participant to record the Participant's interest under the
Plan.

     "Account Balance" means, as of any date, the Deferred Amounts credited to a
Participant's Account, adjusted in accordance with Section 3.4 to reflect the
performance of the Participant's Selected Benchmark Return Options, the Annual
Charge, the Debit Balance, (if any) any adjustments in the event of a Capital
Call Default, and any payments made from the Account under Article V to the
Participant prior to that date.

     "Adjusted Compensation" means the financial consultant incentive
compensation, account executive incentive compensation or estate planning and
business insurance specialist incentive compensation, in each case exclusive of
base salary, earned by a Participant during the Fiscal Year ending in 2001, and
payable after January 1, 2001, as a result of the Participant's production
credit level, or such other similar items of compensation as the Administrator
shall designate as "Adjusted Compensation" for purposes of this Plan.

     "Administrator" means the Head of Human Resources of ML & Co., or his or
her functional successor, or any other person or committee designated as
Administrator of the Plan by the Administrator or the MDCC.

     "Affiliate" means any corporation, partnership, or other organization of
which ML & Co. owns or controls, directly or indirectly, not less than 50% of
the total combined voting power of all classes of stock or other equity
interests.

     "Annual Charge" means the charge to a Participant's Account provided for in
Section 3.4(g).

     "Applicable Federal Rate" means the applicable federal rate for short-term
(0-3 years) obligations of the United States Treasury as determined initially in
the month of closing of ML Ventures and thereafter in January of each subsequent
year.
<PAGE>

     "Available Balance" means amounts in a Participant's Account that are
indexed to Benchmark Return Options with daily liquidity after the Account's
Debit Balance has been reduced to zero.

"Average Leveraged Principal Amount" means, for each Participant, for any
period, the sum of the Leveraged Principal Amounts outstanding at the end of
each day in the period divided by the number of days in such period.

     "Benchmark Return Options" means such investment vehicles as the
Administrator may from time to time designate for the purpose of indexing
Accounts hereunder.  In the event a Benchmark Return Option ceases to exist or
is no longer to be a Benchmark Return Option, the Administrator may designate a
substitute Benchmark Return Option for such discontinued option.

     "Board of Directors" means the Board of Directors of ML & Co.

     "Capital Call" means the periodic demands for funds from a Participant's
Account that will be equal to and occur simultaneously with capital calls made
by private equity funds (including ML Ventures) chosen as a return option by the
Participant.

     "Capital Call Default" means that there is an insufficient Liquid Balance
in the Participant's Account to fund a Capital Call.

     "Capital Demand Default Adjustment" means the negative adjustment described
in Section 3.4 in the number of "units" (including units acquired by "Leverage")
attributed to a Private Equity Fund Return Options that will be the result of a
Capital Call Default.

     "Cash Compensation" means (1) (for VICP eligible employees) salary in the
reference year plus VICP earned in the reference year and paid in January or
February of the next calendar year or (2) (for Financial Consultants and other
employees receiving Adjusted Compensation) base salary plus Adjusted
Compensation paid in the reference year.

     "Code" means the U.S. Internal Revenue Code of 1986, as amended from time
to time.

     "Company" means ML & Co. and all of its Affiliates.

     "Compensation" means, as relevant, a Participant's Adjusted Compensation,
Variable Incentive Compensation and/or Sign-On Bonus, or such other items or
items of compensation as the Administrator, in his or her sole discretion, may
specify in a particular instance.

     "Debit Balance" means, as of any date, the dollar amount, if any,
representing each of: (1) the aggregate Annual Charge, accrued in accordance
with Section 3.4(g)(i); and (2) any Leveraged Principal Amount (together with
any pro rata Interest Amounts determined in accordance with Section 3.4(g)(ii),
if applicable), as reduced by any distributions recorded from ML Ventures Units
recorded in a Participant's Account in accordance with Section 3.4(e).

     "Deferral Percentage" means the percentage (which, unless the
Administrator, in his or her sole discretion, determines otherwise, shall be in
whole percentage increments and not more than 90%) specified by the Participant
to be the percentage of each payment of Compensation he or she wishes to defer
under the Plan.

     "Deferred Amounts" means, except as provided in Section 5.6, the amounts of
Compensation actually deferred by the Participant under this Plan.

                                       2
<PAGE>

     "Election Year" means the 2000 calendar year.

     "Eligible Compensation" means (1) for persons eligible for the Variable
Incentive Compensation Program or other similar programs: (A) a Participant's
1999 base earnings plus (B) any cash bonus awarded in early 2000, and (2) for
persons ineligible for such bonus programs, a Participant's 1999 Adjusted
Compensation.

     "Eligible Employee" means an employee eligible to defer amounts under this
Plan, as determined under Section 2.1 hereof.

     "ERISA" means the U.S. Employee Retirement Income Security Act of 1974, as
amended from time to time.

     "Fiscal Month" means the monthly period used by ML & Co. for financial
accounting purposes.

     "Fiscal Year" means the annual period used by ML & Co. for financial
accounting purposes.

     "Full-Time Domestic Employee" means a full-time employee of the Company
paid from the Company's domestic based payroll (other than any U.S. citizen or
"green card" holder who is employed outside the United States).

     "Full-Time Expatriate Employee" means a U.S. citizen or "green card" holder
employed by the Company outside the United States and selected by the
Administrator as eligible to participate in the Plan (subject to the other
eligibility criteria).

     "Initial Leveraged Amount" means the initial dollar amount by which a
Participant's deferral into ML Ventures Units is leveraged as determined in
accordance with Section 3.4(c).

     "Interest" means the hypothetical interest accruing on a Participant's
Average Leveraged Principal Amount at the Applicable Federal Rate.

     "Interest Amounts" means, for any Participant, as of any date, the amount
of Interest that has accrued to such date on such Participant's Average
Leveraged Principal Amount, from the date on which a Participant's Leveraged
Principal Amount is established, or from the most recent date that Interest
Amounts were added to the Leveraged Principal Amount.

     "Leveraged or Unleveraged Distributions" means the distributions to a
Participant's Account attributable to the leveraged or unleveraged portion (as
the case may be) of a Participant's ML Ventures Units.

     "Leverage-Eligible Participants" means persons who (1) are accredited
investors within the meaning of the Securities Act of 1933, and (2) received
Cash Compensation of at least $250,000 in 1999, and (3) received Cash
Compensation of at least $200,000 in 1998 and otherwise qualify, in accordance
with standards determined by the Administrator, to select a ML Ventures Return
Option on a leverage basis.

     "Leveraged Principal Amount" means a Participant's Initial Leveraged
Amount, if any, as adjusted to reflect the addition of Interest Amounts (or any
pro rata Interest Amounts).

     "Leverage Percentage" means the percentage of leverage chosen by a
Leverage-Eligible Participant, which percentage shall not exceed 200%.

                                       3
<PAGE>

     "Liquid Balance" means, as of any date, the Deferred Amounts credited to a
Participant's Account, not including amounts that represent future commitments
to Private Equity Funds, including ML Ventures, adjusted (either up or down) to
reflect: (1) the performance of the Participant's Mutual Fund Return Balances as
provided in Section 3.4(f); (2) distributions with respect to ML Ventures Units
made in accordance with Section 3.4(d); (3) reduction of any Debit Balance as
provided in Section 3.4(e); and (4) any payments to the Participant under
Article V hereof.

     "Maximum Deferral" means the whole dollar amount specified by the
Participant to be the amount of Compensation he or she elects to be deferred
under the Plan.

     "MDCC" means the Management Development and Compensation Committee of the
Board of Directors.

     "ML & Co." means Merrill Lynch & Co., Inc.

     "ML Ventures Return Option" means the option of indexing returns hereunder
to the performance of a ML Ventures limited partnership, on a leveraged or
unleveraged basis.

     "ML Ventures Units" means the record-keeping units credited to the Accounts
of Participants who have chosen the ML Ventures Return Option.

     "Mutual Fund Return Options" means the mutual funds chosen as Benchmark
Return Options by the Administrator.

     "Net Asset Value" means, with respect to each Benchmark Return Option that
is a mutual fund or other commingled investment vehicle for which such values
are determined in the normal course of business, the net asset value, on the
date in question, of the vehicle for which such value is being determined.

     "Participant" means an Eligible Employee who has elected to defer
Compensation under the Plan.

     "Plan" means this Merrill Lynch & Co., Inc. 2001 Deferred Compensation Plan
for a Select Group of Eligible Employees.

     "Plan Year" means the Fiscal Year ending in 2001.

     "Private Fund Return Option(s)" means one or more private funds that are
chosen by the Administrator to be offered - with such limitations as may be
required - to eligible Participants as Benchmark Return Options.

     "Private Fund Unit(s)" means the record-keeping units credited to the
Accounts of Participants who have chosen one or more Private Fund Return
Options.

     "Retirement" means a Participant's (i) termination of employment with the
Company for reasons other than for cause on or after the Participant's 65th
birthday, or (ii) resignation on or after the Participant's 55th birthday if the
Participant has at least 10 years of service, or (iii) resignation at any age
with the express approval of the Administrator, which will be granted only if
the termination is found by the Administrator to be in, or not contrary to, the
best interests of the Company.

                                       4
<PAGE>

     "Remaining Deferred Amounts" means the product of a Participant's Deferred
Amounts times a fraction equal to the number of remaining installment payments
divided by the total number of installment payments.

     "Selected Benchmark Return Option" means a Benchmark Return Option selected
by the Participant in accordance with Section 3.4.

     "Sign-On Bonus" means a single-sum amount paid or payable to a new Eligible
Employee during the Plan Year upon commencement of employment, in addition to
base pay and other Compensation, to induce him or her to become an employee of
the Company, or any similar item of compensation as the Administrator shall
designate as "Sign-On Bonus" for purposes of this Plan.

     "Undistributed Deferred Amounts" means, as of any date on which the Annual
Charge is determined, a Participant's Deferred Amounts (exclusive of any
appreciation or depreciation) minus, for each distribution to a Participant
prior to such date, an amount equal to the product of the Deferred Amounts and a
fraction the numerator of which is the amount of such distribution and the
denominator of which is the combined Net Asset Value (prior to distribution) of
the Participant's Account as of the date of the relevant distribution.

     "Variable Incentive Compensation" means the variable incentive compensation
or office manager incentive compensation that is paid in cash to certain
employees of the Company generally in January or February of the Plan Year with
respect to the prior Fiscal Year, which for purposes of this Plan is considered
earned during the Plan Year regardless of when it is actually paid to the
Participant, or such other similar items of compensation as the Administrator
shall designate as "Variable Incentive Compensation" for purposes of this Plan.

     "401(k) Plan" means the Merrill Lynch & Co., Inc. 401(k) Savings &
Investment Plan.

                                  ARTICLE II

                                  ELIGIBILITY
2.1  Eligible Employees.

     (a) General Rule.  An individual is an Eligible Employee if he or she (i)
is a Full-Time Domestic Employee or a Full-Time Expatriate Employee, (ii) has at
least $250,000 of Eligible Compensation for the year prior to the Election Year,
and (iii) has attained the title of Vice President or higher.

     (b) Individuals First Employed During Election Year or Plan Year.  Subject
to the approval of the Administrator in his or her sole discretion, an
individual who is first employed by the Company during the Election Year or the
Plan Year is an Eligible Employee if his or her Eligible Compensation, together,
if applicable, with the amount of any Variable Incentive Compensation that will
be payable to such individual in the next annual bonus cycle pursuant to a
written bonus guarantee, is greater than $250,000, and he or she is employed as
or is to be nominated for the title of Vice President or higher at the first
opportunity following his or her commencement of employment with the Company.

     (c) Disqualifying Factors.  An individual shall not be an Eligible Employee
if either (i) as of the deadline for submission of elections specified in
Section 3.1(a), the individual's wages have been attached or are being garnished
or are otherwise restrained pursuant to legal process, or (ii)

                                       5
<PAGE>

within 13 months prior to the deadline for submission of elections specified in
Section 3.1(a), the individual has made a hardship withdrawal of Elective 401(k)
Deferrals as defined under the 401(k) Plan.

                                  ARTICLE III

                         DEFERRAL ELECTIONS; ACCOUNTS

3.1  Deferral Elections.

     (a) Timing and Manner of Making of Elections.  An election to defer
Compensation for payment in accordance with Article V shall be made by
submitting to the Administrator such forms as the Administrator may prescribe in
whatever manner that the Administrator directs.  Each election submitted must
specify a Maximum Deferral and a Deferral Percentage with respect to each
category of Compensation to be deferred.  All elections by a Participant to
defer Compensation under the Plan must be received by the Administrator or such
person as he or she may designate for the purpose by no later than October 27 of
the Election Year  (or such later date as the Administrator, in his or her sole
discretion, may specify in any particular instance) or, in the event such date
is not a business day, the immediately preceding business day; provided,
                                                               --------
however, that the Eligible Employee's election to defer a Sign-On Bonus must be
-------
part of such Eligible Employee's terms and conditions of employment agreed to
prior to the Eligible Employee's first day of employment with the Company.

     (b) Irrevocability of Deferral Election.  Except as provided in Sections
3.5 and 5.5, an election to defer the receipt of any Compensation made under
Section 3.1(a) is irrevocable once submitted to the Administrator or his or her
designee.  The Administrator's acceptance of an election to defer Compensation
shall not, however, affect the contingent nature of such Compensation under the
plan or program under which such Compensation is payable.

     (c) Application of Election.  The Participant's Deferral Percentage will be
applied to each payment of Compensation to which the Participant's deferral
election applies, provided that the aggregate of the Participant's Deferred
                  --------
Amounts shall not exceed the Participant's Maximum Deferral.  If a Participant
has made deferral elections with respect to more than one category of
Compensation, this Section 3.1(c) shall be applied separately with respect to
each such category.

3.2  Crediting to Accounts.

     (a) Initial Deferrals. A Participant's Deferred Amounts will be credited to
the Participant's Account as soon as practicable (but in no event later than the
end of the following month) after the last day of the Fiscal Month during which
such Deferred Amounts would, but for deferral, have been paid and will be
accounted for in accordance with Section 3.4. No interest will accrue, nor will
any adjustment be made to an Account, for the period until the Deferred Amounts
are credited.

     (b) ML Ventures and other Private Return Options. Upon the closing of any
ML Ventures or Private Return Option, a Participant's Account will be credited
with a number of units determined by dividing by $1,000 the sum of the
following: (1) the portion of the Account Balance that the Participant has
elected to allocate to the ML Ventures Return Option or such other Private
Return Option, as of the day prior to the closing date; and (in the case of ML
Ventures only) (2) the Participant's Initial Leveraged Amount (computed in
accordance with Section 3.4(c)).

3.3  Minimum Requirements for Deferral.

                                       6
<PAGE>

     (a)    Minimum Requirements.  Notwithstanding any other provision of this
Plan, no deferral will be effected under this Plan with respect to a Participant
if:

     (i)    the Participant is not an Eligible Employee as of December 31, 2000,

     (ii)   the Participant's election as applied to the Participant's Variable
            Incentive Compensation (determined by substituting the Election Year
            for the Plan Year) or Adjusted Compensation (determined by
            substituting the Fiscal Year immediately prior to the Fiscal Year
            ending in the Election Year for the Fiscal Year ending in the Plan
            Year) would have resulted in an annual deferral of less than
            $15,000, or

     (iii)  the greater of (A) the sum of (1) the "Medicare wages" amount listed
            on the Participant's W-2 form for the Plan Year, and (2) any
            Compensation that is accelerated which the Participant may receive
            in December of the Election Year which would have been payable in
            the Plan Year in the absence of the action of the Company to
            accelerate the payment, or (B) the Participant's Eligible
            Compensation for the Plan Year, is less than $250,000;

provided, that any Participant who first becomes an employee of the Company
--------
during the Plan Year shall not be required to satisfy conditions (i) and (ii).
Condition (ii) does not require a Participant's elections to result in an actual
                                                                          ------
deferral of at least $15,000.

     (b) Failure to Meet Requirements.  If the requirements of Section 3.3(a)(i)
or (ii) are not met by a Participant to whom such requirements are applicable,
such Participant's Deferred Amounts, if any, will be paid to such Participant,
without adjustment to reflect the performance of any Selected Benchmark Return
Option, as soon as practicable after it has been determined that the
requirements have not been met.  If the requirements of Section 3.3(a)(iii) are
not met by a Participant, the greater of such Participant's Deferred Amounts or
Account Balance will be paid to such Participant as soon as practicable after it
has been determined that the requirements have not been met.

3.4  Return Options; Adjustment of Accounts.

     (a) Selection of ML Ventures Return Option or Private Fund Return Options.
In any year that a ML Ventures partnership or other Private Fund partnership is
offered as a return option, eligible Participants may select the ML Ventures
Return Option (and designate any Leverage Percentage) or select a Private Fund
Return Option. Participants should be aware that once the closing of the
relevant fund has occurred, Participants will not be able to change their
elections. Participants should also be aware that in the event of a Capital Call
Default, for certain Private Equity Funds, Including ML Ventures, they may be
penalized by having their Accounts adjusted downward in accordance with Section
3.4 (d).

     (b) Selection of Mutual Fund Return Options. Coincident with the
Participant's election to defer Compensation, the Participant must select the
percentage of the Participant's Account to be adjusted to reflect the
performance of Mutual Fund Return Options, for use when a Participant's Account
has a Liquid Balance. All elections shall be in multiples of 1%.  A Participant
may, by complying with such procedures as the Administrator may prescribe on a
uniform and nondiscriminatory basis, including procedures specifying the
frequency with respect to which such changes may be effected (but not more than
12 times in any calendar year), change the Selected Benchmark Return Options to
be applicable with respect to his or her Account.

                                       7
<PAGE>

     (c)    Selection of the ML Ventures Leverage Percentage by Eligible
Participants.  Prior to the closing of the offering of an ML Ventures
partnership, Leverage-Eligible Participants who select the ML Ventures Return
Option on a leveraged basis must choose their Leverage Percentage, in accordance
with standards determined by the Administrator, by submitting such forms as the
Administrator shall prescribe.  Prior to the closing of an ML Ventures
partnership, the Administrator will determine each Leverage-Eligible
Participant's Initial Leveraged Amount by applying such Participant's Leverage
Percentage to the dollar value of the portion of the Participant's Account
Balance allocated to the ML Ventures Return Option. The Initial Leveraged Amount
will be recorded as the Leveraged Principal Amount, to which amount Interest
Amounts will be added annually in accordance with Section 3.4(e).

     (d)    Adjustments of ML Ventures and other Private Fund Return Options.

     (i)    Whenever a distribution is paid on an actual unit of an ML Ventures
            partnership or other Private Equity Fund Return Option, an amount
            equal to such per unit distribution times the number of units in the
            Participant's Account will first be applied against any Debit
            Balance, as provided in Section 3.4(e), and then, if any portion of
            such distribution remains after the Debit Balance is reduced to
            zero, be credited to the Participant's Account to be indexed to the
            Mutual Fund Return Option(s) chosen by the Participant.

     (ii)   In the event of a Capital Call Default, a Participant's notional
            investment in the relevant fund will be capped. If this occurs, the
            number of units represented by the return option (including, in the
            case of ML Ventures, any leveraged units) will be adjusted downward
            to reflect a smaller investment and resulting lower leverage.

     (iii)  The ML Ventures Units and the Debit Balance will also be adjusted in
            accordance with Section 5.2 hereof in the event of a Participant's
            termination.

     (e)    Adjustment of Debit Balance. Any Debit Balance shall be reduced as
soon as possible by any distributions relating to ML Ventures Units. Reductions
of the Debit Balance, as provided in the foregoing sentence, shall be applied
first to reduce the Debit Balance attributable to accrued Annual Charges and
then, after all such accrued Annual Charges have been satisfied, to reduce any
Leveraged Principal Amount. As of the last day of each Fiscal Year, Interest
Amounts computed by the Administrator shall be added to the Leveraged Principal
Amount. If on any date the Leveraged Principal Amount would be discharged
completely as a result of distributions or chargeoffs, Interest Amounts will be
computed though such date and added to the Leveraged Principal Amount as of such
date.

     (f)    Adjustment of Mutual Fund Return Balances. While the Participant's
Balances do not represent the Participant's ownership of, or any ownership
interest in, any particular assets, the Balances attributable to Mutual Fund
Return Options shall be adjusted to reflect credits or debits relating to
distributions with respect to the ML Ventures Units or chargeoffs against the
Debit Balance and to reflect the investment experience of the Participant's
Mutual Fund Return Options in the same manner as if investments or dispositions
in accordance with the Participant's elections had actually been made through
the ML Benefit Services Platform and ML II Core Recordkeeping System, or any
successor system used for keeping records of Participants' Accounts (the "ML II
System"). In adjusting Accounts, the timing of receipt of Participant
instructions or credits or debits by the ML II System shall control the timing
and pricing of the notional investments in the Participant's Mutual Fund Return
Options in accordance with the rules of operation of the ML II System and its

                                       8
<PAGE>

requirements for placing corresponding investment orders, as if orders to make
corresponding investments or dispositions were actually to be made, except that
in connection with the crediting of Deferred Amounts or distributions to the
Participant's Account and distributions from or debits to the Account,
appropriate deferral allocation instructions shall be treated as received from
the Participant prior to the close of transactions through the ML II System on
the relevant day.  Each Mutual Fund Return Option shall be valued using the Net
Asset Value of the Mutual Fund Return Option as of the relevant day; provided,
                                                                     --------
that, in valuing a Mutual Fund Return Option for which a Net Asset Value is not
computed, the value of the security involved for determining Participants'
rights under the Plan shall be the price reported for actual transactions in
that security through the ML II System on the relevant day, without giving
effect to any transaction charges or costs associated with such transactions;
provided, further, that, if there are no such transactions effected through the
--------  -------
ML II System on the relevant day, the value of the security shall be:

     (i)    if the security is listed for trading on one or more national
            securities exchanges, the average of the high and low sale prices
            for that day on the principal exchange for such security, or if such
            security is not traded on such principal exchange on that day, the
            average of the high and low sales prices on such exchange on the
            first day prior thereto on which such security was so traded;

     (ii)   if the security is not listed for trading on a national securities
            exchange but is traded in the over-the-counter market, the average
            of the highest and lowest bid prices for such security on the
            relevant day; or

     (iii)  if neither clause (i) nor (ii) applies, the value determined by the
            Administrator by whatever means he considers appropriate in his or
            her sole discretion.

All debits and charges against the Account shall be applied as a pro rata
                                                                 --------
reduction of the portion of the Account Balance indexed to each of the
Participant's Mutual Fund Return Options.

     (g)    Annual Charge. As of the last day of each Fiscal Year or such
earlier day in December as the Administrator shall determine, an Annual Charge
of 2.0% of the Participant's Deferred Amounts (exclusive of any appreciation or
depreciation determined under Section 3.4 (f)) shall be applied to reduce the
Account Balance.

     (i)    In the event that all or any portion of the Account Balance is
            indexed to a Benchmark Return Option with less than daily liquidity,
            the Annual Charge will accrue as a Debit Balance and be paid out of
            future amounts credited to the Account Balance.

     (ii)   In the event that the Participant elects to have the Account Balance
            paid in installments, the Annual Charge will be charged on the
            Remaining Deferred Amounts after giving effect to the installment
            payments.

     (iii)  In the event that the Account Balance is paid out completely during
            a Fiscal Year prior to the date upon which the Annual Charge is
            assessed, a pro rata Annual Charge will be deducted from amounts to
                        --------
            be paid to the Participant to cover that fraction of the Fiscal Year
            that Deferred Amounts (or Remaining Deferred Amounts in the case of
            installment payments) were maintained hereunder. The Annual Charge
            shall be applied as a pro rata reduction of the portion of the
                                  --------
            Account Balance indexed to each of the Participant's Selected
            Benchmark Return Options. In applying the Annual Charge, the pricing
            principles set forth in Section 3.4(f) will be followed.

                                       9
<PAGE>

     (h)    Rollover Option.  In the discretion of the Administrator or a
designee, additional Benchmark Return Options, including Return Options with
less than daily liquidity, may be offered to all Participants under the Plan or
to a more limited group of Participants. In such event, Participants will be
allowed, in such manner as the Administrator shall determine, to elect that all
or a portion of Account Balances be indexed to such Benchmark Return Options.

     (i)    With respect to Benchmark Return Options that do not provide daily
            liquidity: (A) payments under Article V will be made in accordance
            with a Participant's election at the time of the Participant's
            original deferral, with any adjustments required for the more
            limited liquidity of such Return Option; (B) Participants may be
            limited in their ability to elect, change or continue their
            Benchmark Return Options in accordance with such terms and
            conditions as the Administrator or a designee may determine; and (C)
            the Annual Charge shall be accrued and paid, when possible, upon
            liquidation of all or any portion of the Benchmark Return Option,
            provided that no payment shall be made to a Participant under
            Article V hereof until all accrued Annual Charges have been paid.

     (ii)   In the event that such limited liquidity options include future ML
            Ventures Partnerships, the designated amounts shall be credited to
            such Participant, accounted for, adjusted and paid out to such
            Participant in accordance with the terms and conditions of this Plan
            as they related to the ML Ventures Return Option.

3.5  Rescission of Deferral Election.

     (a)    Prior to December 1, 2000.  A deferral election hereunder may be
rescinded at the request of a Participant only (i) on or before December 1,
2000, and (ii) if the Administrator, in his or her sole discretion and upon
evidence of such basis that he or she finds persuasive (including a material
applicable change in the Participant's U.S. Federal and/or foreign income tax
rate during the period between October 27, 2000 and November 30, 2000), agrees
to the rescission of the election.  In the event that the Administrator agrees
to the rescission, the Deferred Amounts, if any, credited to the Participant's
Account will be paid to the Participant as soon as practicable thereafter,
subject to reduction for any applicable withholding taxes.

     (b)    Adverse Tax Determination.  Notwithstanding the provisions of
Section 3.5(a), a deferral election may be rescinded at any time if (i) a final
determination is made by a court or other governmental body of competent
jurisdiction that the election was ineffective to defer income for purposes of
U.S. Federal, state, local or foreign income taxation and the time for appeal
from this determination has expired, and (ii) the Administrator, in his or her
sole discretion, decides, upon the Participant's request and upon evidence of
the occurrence of the events described in (i) hereof that he or she finds
persuasive, to rescind the election. Upon such rescission, the Account Balance,
including any adjustment for performance of the Selected Benchmark Return
Options, will be paid to the Participant as soon as practicable, and no
additional amounts will be deferred pursuant to this Plan.

     (c)    Rescission For Amounts Not Yet Earned. Upon the Participant's
written request, the Administrator may in his or her sole discretion terminate
any deferral elections made hereunder with respect to Compensation not yet
earned and no further amounts will be deferred. In addition, in the event a
Participant receives a hardship withdrawal under the 401(k) Plan, the
Administrator shall, as of the date the Participant's Elective 401(k) Deferrals
(as defined in the 401(k) Plan) are suspended under the 401(k) Plan as a result
of such hardship withdrawal, terminate the Participant's deferrals under this
Plan in accordance with the preceding sentence, as if the Participant had

                                       10
<PAGE>

requested rescission in writing. In each case, amounts previously deferred will
continue to be governed by the terms of this Plan.

                                  ARTICLE IV

                    STATUS OF DEFERRED AMOUNTS AND ACCOUNT

4.1  No Trust or Fund Created; General Creditor Status.

     Nothing contained herein and no action taken pursuant hereto will be
construed to create a trust or separate fund of any kind or a fiduciary
relationship between ML & Co. and any Participant, the Participant's beneficiary
or estate, or any other person.  Title to and beneficial ownership of any funds
represented by the Account Balance will at all times remain in ML & Co.; such
funds will continue for all purposes to be a part of the general funds of ML &
Co. and may be used for any corporate purpose.  No person will, by virtue of the
provisions of this Plan, have any interest whatsoever in any specific assets of
the Company.  TO THE EXTENT THAT ANY PERSON ACQUIRES A RIGHT TO RECEIVE PAYMENTS
FROM ML & CO. UNDER THIS PLAN, SUCH RIGHT WILL BE NO GREATER THAN THE RIGHT OF
ANY UNSECURED GENERAL CREDITOR OF ML & CO.

4.2  Non-Assignability.

     The Participant's right or the right of any other person to the Account
Balance or any other benefits hereunder cannot be assigned, alienated, sold,
garnished, transferred, pledged, or encumbered except by a written designation
of beneficiary under this Plan, by written will, or by the laws of descent and
distribution.

4.3  Effect of Deferral on Benefits Under Pension and Welfare Benefit Plans.

     The effect of deferral on pension and welfare benefit plans in which the
Participant may participate will depend upon the provisions of each such plan,
as amended from time to time.

                                   ARTICLE V

                              PAYMENT OF ACCOUNT

5.1  Manner of Payment.

     (a)    Regular Payment Elections.  A Participant's Account Balance will be
paid by the Company, as elected by the Participant at the time of his or her
deferral election, either in a single payment to be made, or in the number of
annual installments (not to exceed 15) chosen by the Participant to commence,
(i) in the month following the month of the Participant's Retirement or death,
(ii) in any month and year selected by the Participant after the end of 2001, or
(iii) in any month in the calendar year following the Participant's Retirement;
provided that, if a Participant's election would result in payment (in the case
--------
of a single payment) or commencement of payment (in the case of installment
payments) after the Participant's 70th birthday, then, notwithstanding the
Participant's elections, the Company will pay, or commence payment of, the
Participant's Account Balance in the month following the Participant's 70th
birthday unless the Participant continues to be an active full time employee at
such time, in which case the Company will pay, or commence

                                       11
<PAGE>

payment of, the Participant's Account Balance in the month following the
Participant's cessation of active service (to the extent payment has not already
been made or commenced). The amount of each annual installment, if applicable,
shall be determined by multiplying the Account Balance as of the last day of the
month immediately preceding the month in which the payment is to be made by a
fraction, the numerator of which is one and the denominator of which is the
number of remaining installment payments (including the installment payment to
be made). In the event that immediately prior to the lump sum payment or the
initial installment payment, all or any portion of a Participant's Account
Balance remains indexed to a Benchmark Return Option with less than daily
liquidity, such payment shall be adjusted, if necessary, for the liquidity
restraints of the Benchmark Return Option and, in the case of an election of 11
or more installment payments commencing upon Retirement or a date certain
coincident with Retirement, shall be delayed until such Account Balance is fully
liquid.

     (b)  Modified Installment Payments.  In lieu of one of the regular payment
elections provided for in Section 5.1(a), a Participant may elect to receive the
Account Balance in at least 11 but no more than 15 annual installment payments
("modified installment payments"), such modified installment payments to
commence on the last business day in March in the year following the
Participant's Retirement or death (the "Initial Payment Date"), provided that,
in the event that immediately prior to the initial payment of such installment
payments, all or any portion of a Participant's Account Balance remains indexed
to a Benchmark Return Option with less than daily liquidity, such initial
payment shall be delayed until such Account Balance is fully liquid.  The
modified installment payments shall be computed in accordance with last sentence
of Section 5.1(a) and will in all other respects be treated like regular
installment payments under the Plan. By electing modified installment payments,
the Participant agrees that at any time prior to the last day of February
immediately preceding a Participant's Initial Payment Date (the "Determination
Date"), ML & Co. shall have the right, without the consent of the Participant or
any beneficiary, to change the Participant's method of payment to 11 annuitized
payments ("annuitized payments"), in the event that, in the sole discretion of
the Administrator, it is determined that such a change is necessary or
appropriate in order to preserve the intended state tax benefits of the modified
installment payments to the Participant or any beneficiary.  In the event that
the Administrator determines that annuitized payments shall be made, the amount
of the annuitized payments will be determined by applying the Discount Rate, as
defined below, to the Account Balance as of the Determination Date to create a
stream of 11 equal annual payments. If annuitized payments are to be made, then
the Account Balance shall cease to be adjusted pursuant to Section 3.4 as of the
Determination Date (except that a pro rata Annual Charge will be deducted from
                                  --- ----
the Account Balance prior to calculation of the annuitized payments to cover the
fraction of the Fiscal Year preceding the Determination Date) and the Company's
only obligation to the Participant shall be to make the annuitized payments when
due. As used herein, Discount Rate shall mean ML & Co.'s then-applicable after-
tax cost of borrowing and is defined as (A) x (B), where (A) is equal to 1 minus
ML & Co.'s then-effective tax rate, expressed as a decimal, and (B) is equal to
the sum of: (i) the annual yield on the then-current 5-year U.S. Treasury Note,
and (ii) a spread (which will not be less than 0.10%) indicative of ML & Co.'s
borrowing cost for transactions of similar structure and average maturity to the
annuity, as determined by ML & Co.

5.2  Termination of Employment.

     (a)  Death or Retirement. Upon a Participant's death, Career Retirement (as
defined in the ML & Co. Long-Term Incentive Compensation Plans) or Retirement
prior to payment, the Account Balance will be paid, in accordance with the
Participant's elections and as provided in Section 5.1(a) or (b), as applicable,
to the Participant or to the Participant's beneficiary (in the event of death);
provided, however, that (1) in the event that the Participant enters into
--------  -------
competition with the business

                                       12
<PAGE>

of Merrill Lynch, he or she will not be eligible for Retirement treatment under
this Section 5.2 (a) and (2) in the event that a beneficiary of the
Participant's Account is the Participant's estate or is otherwise not a natural
person, then (i) if the Participant has elected a regular payment election
pursuant to Section 5.1(a), the applicable portion of the Account Balance will
be paid in a single payment to such beneficiary notwithstanding any election of
installment payments, and (ii) if the Participant has elected modified
installment payments pursuant to Section 5.1(b), the applicable portion of the
Account Balance will continue to be payable as modified installment payments or
annuitized payments, as the case may be, in accordance with Section 5.1(b), but
only to a single person consisting of the administrator or executor of the
Participant's estate or another person lawfully designated by the administrator
or executor (and in the event no such person is designated within a reasonable
time, payment will be made in a lump sum).

     (b)  Other Termination of Employment - Forfeiture of Leverage.

(1)  If the Participant's employment terminates at any time for any other reason
     than those described in Section 5.2 (a), then, notwithstanding the
     Participant's elections hereunder, any Available Balance will be paid to
     the Participant, as soon as practicable, in a single payment if the Account
     Balance is fully liquid, or as available, as soon thereafter as is
     practicable, notwithstanding the Participant's elections hereunder.

(2)  In the event that a Participant's employment terminates at any time for any
     reason other than death, disability or Retirement, such Participant will
     forfeit all rights to the unvested leveraged portion of such Participant's
     ML Ventures Units, including any future Leveraged Distributions, unless the
     Administrator, in his or her sole discretion, determines that such
     forfeiture would be detrimental to Merrill Lynch; provided, however, that
     such forfeiture will not occur: if (a) the Participant is terminated by ML
     & Co. as the result of a reduction in staff, (b) the Participant delivers
     to ML & Co. a release of claims (in a form approved by the Administrator
     and counsel) he or she may have against the corporation or any of its
     subsidiaries, and (3) such Participant complies with the terms of such
     release. In the event of such forfeiture, the Participant's Account Balance
     and Debit Balance will be restated, as of the date of termination, to
     reflect what such balances would have been had the Participant selected no
     leverage under Section 3.4(c). To the extent necessary, the Participant's
     Account Balance will also be adjusted, as of the date of the termination,
     to credit the Participant with the amount of any Unleveraged Distributions
     that were previously applied to the repayment of the Leveraged Principal
     Amount and any Interest Amounts and, to the extent necessary, any Leveraged
     Distributions paid out to the Participant will be restated as a Debit
     Balance. Leveraged and Unleveraged Distributions shall be deemed to have
     been applied and distributed proportionately. All calculations hereunder
     shall be made by the Administrator and shall be final and conclusive.

     (c)  Leave of Absence, Transfer or Disability.  The Participant's
employment will not be considered as terminated if the Participant (1) is on an
approved leave of absence; (2) transfers or is transferred but remains in the
employ of the Company or an unconsolidated affiliate; or (3) is eligible to
receive disability payments under the ML & Co. Basic Long-Term Disability Plan.

     (d)  Discretion to Alter Payment Date.  Notwithstanding the provisions of
Sections 5.2(a) and (b), if the Participant's employment terminates for any
reason, the Administrator may, in his or her sole discretion, direct that the
Account Balance be paid at some other time or that it be paid in installments;
provided that no such direction that adversely affects the rights of the
--------
Participant or his or her beneficiary under this Plan shall be implemented
without the consent of the affected Participant or beneficiary.

                                       13
<PAGE>

5.3  Withholding of Taxes.

     ML & Co. will deduct or withhold from any payment to be made or deferred
hereunder any U.S. Federal, state or local or foreign income or employment taxes
required by law to be withheld or require the Participant or the Participant's
beneficiary to pay any amount, or the balance of any amount, required to be
withheld.

5.4  Beneficiary.

     (a)  Designation of Beneficiary.  The Participant may designate, in a
writing delivered to the Administrator or his or her designee before the
Participant's death, a beneficiary to receive payments in the event of the
Participant's death.  The Participant may also designate a contingent
beneficiary to receive payments in accordance with this Plan if the primary
beneficiary does not survive the Participant.  The Participant may designate
more than one person as the Participant's beneficiary or contingent beneficiary,
in which case (i) no contingent beneficiary would receive any payment unless all
of the primary beneficiaries predeceased the Participant, and (ii) the surviving
beneficiaries in any class shall share in any payments in proportion to the
percentages of interest assigned to them by the Participant.

     (b)  Change in Beneficiary.  The Participant may change his or her
beneficiary or contingent beneficiary (without the consent of any prior
beneficiary) in a writing delivered to the Administrator or his or her designee
before the Participant's death.  Unless the Participant states otherwise in
writing, any change in beneficiary or contingent beneficiary will automatically
revoke prior such designations of the Participant's beneficiary or of the
Participant's contingent beneficiary, as the case may be, under this Plan only;
and any designations under other deferral agreements or plans of the Company
will remain unaffected.

     (c)  Default Beneficiary.  In the event that a Participant does not
designate a beneficiary, or no designated beneficiary survives the Participant,
the Participant's beneficiary shall be the Participant's surviving spouse, if
the Participant is married at the time of his or her death and not subject to a
court-approved agreement or court decree of separation, or otherwise the person
or persons designated to receive benefits on account of the Participant's death
under the ML & Co. Basic Group Life Insurance Plan (the "Life Insurance Plan").
However, if an unmarried Participant does not have coverage in effect under the
Life Insurance Plan, or the Participant has assigned his or her death benefit
under the Life Insurance Plan, any amounts payable to the Participant's
beneficiary under the Plan will be paid to the Participant's estate.

     (d)  If the Beneficiary Dies During Payment.  If a beneficiary who is
receiving or is entitled to receive payments hereunder dies after the
Participant dies, but before all the payments have been made, the portion of the
Account Balance to which that beneficiary was entitled will be paid as soon as
practicable in one lump sum to such beneficiary's estate and not to any
contingent beneficiary the Participant may have designated; provided, however,
                                                            --------  -------
that if the beneficiary was receiving modified installment payments or
annuitized payments pursuant to Section 5.1(b), the applicable portion of the
Account Balance will continue to be paid as modified installment payments or
annuitized payments, as the case may be, in accordance with Section 5.1(b), but
only to a single person consisting of the administrator or executor of the
beneficiary's estate or another person lawfully designated by the administrator
or executor (and in the event no such person is designated within a reasonable
time, payment will be made in a lump sum).

5.5  Hardship Distributions.

                                       14
<PAGE>

     ML & Co. may pay to the Participant, on such terms and conditions as the
Administrator may establish, such part or all of the Account Balance as he or
she may, in his or her sole discretion based upon substantial evidence submitted
by the Participant, determine necessary to alleviate hardship caused by an
unanticipated emergency or necessity outside of the Participant's control
affecting the Participant's personal or family affairs.  Such payment will be
made only at the Participant's written request and with the express approval of
the Administrator and will be made on the date selected by the Administrator in
his or her sole discretion.  The balance of the Account, if any, will continue
to be governed by the terms of this Plan.  Hardship shall be deemed to exist
only on account of expenses for medical care (described in Code Section 213(d))
of the Participant, the Participant's spouse or the Participant's dependents
(described in Code Section 152); payment of unreimbursed tuition and related
educational fees for the Participant, the Participant's spouse or the
Participant's dependents; the need to prevent the Participant's eviction from
or, foreclosure on, the Participant's principal residence; unreimbursed damages
resulting from a natural disaster; or such other financial need deemed by the
Administrator in his or her sole discretion to be immediate and substantial.

5.6  Domestic Relations Orders.

     Notwithstanding the Participant's elections hereunder, ML & Co. will pay
to, or to the Participant for the benefit of, the Participant's spouse or former
spouse the portion of the Participant's Account Balance specified in a valid
court order entered in a domestic relations proceeding involving the
Participant's divorce or legal separation.  Such payment will be made net of any
amounts the Company may be required to withhold under applicable federal, state
or local law.  After such payment, references herein to the Participant's
"Deferred Amounts" (including, without limitation, for purposes of determining
the Annual Charge applicable to any remaining Account Balance) shall mean the
Participant's original Deferred Amounts times an amount equal to one minus a
fraction, the numerator of which is the gross amount (prior to withholding) paid
pursuant to the order, and the denominator of which is the Participant's Account
Balance immediately prior to payment.

                                  ARTICLE VI

                          ADMINISTRATION OF THE PLAN

6.1  Powers of the Administrator.

     The Administrator has full power and authority to interpret, construe and
administer this Plan so as to ensure that it provides deferred compensation for
the Participants as members of a select group of management or highly
compensated employees within the meaning of Title I of ERISA.  The
Administrator's interpretations and construction hereof, and actions hereunder,
including any determinations regarding the amount or recipient of any payments,
will be binding and conclusive on all persons for all purposes.  The
Administrator will not be liable to any person for any action taken or omitted
in connection with the interpretation and administration of this Plan unless
attributable to his or her willful misconduct or lack of good faith.  The
Administrator may designate persons to carry out the specified responsibilities
of the Administrator and shall not be liable for any act or omission of a person
as designated.

6.2  Rabbi Trust

     Creation of Trust.  The Administrator shall create a Grantor Trust to hold
assets representing the amounts deferred under this Plan on such terms and
conditions as the Administrator shall approve.  The trustee of the Rabbi Trust
shall be a party unaffiliated with the Company.

                                       15
<PAGE>

6.3  Payments on Behalf of an Incompetent.

     If the Administrator finds that any person who is entitled to any payment
hereunder is a minor or is unable to care for his or her affairs because of
disability or incompetency, payment of the Account Balance may be made to anyone
found by the Administrator to be the committee or other authorized
representative of such person, or to be otherwise entitled to such payment, in
the manner and under the conditions that the Administrator determines.  Such
payment will be a complete discharge of the liabilities of ML & Co. hereunder
with respect to the amounts so paid.

6.4  No Right of Set-Off.

     Unless specifically authorized by a Participant, the Company shall have no
right of set-off with respect to any Participant's Account Balances or Account
under the Plan and unless so authorized, the Company shall not withhold any sums
owed to a Participant under the Plan.

6.5  Corporate Books and Records Controlling.

     The books and records of the Company will be controlling in the event that
a question arises hereunder concerning the amount of Adjusted Compensation,
Incentive Compensation, Sign-On Bonus, Eligible Compensation, the Deferred
Amounts, the Account Balance, the designation of a beneficiary, or any other
matters.

                                  ARTICLE VII

                           MISCELLANEOUS PROVISIONS

7.1  Litigation.

     The Company shall have the right to contest, at its expense, any ruling or
decision, administrative or judicial, on an issue that is related to the Plan
and that the Administrator believes to be important to Participants, and to
conduct any such contest or any litigation arising therefrom to a final
decision.

7.2  Headings Are Not Controlling.

     The headings contained in this Plan are for convenience only and will not
control or affect the meaning or construction of any of the terms or provisions
of this Plan.

7.3  Governing Law.

     To the extent not preempted by applicable U.S. Federal law, this Plan will
be construed in accordance with and governed by the laws of the State of New
York as to all matters, including, but not limited to, matters of validity,
construction, and performance.

7.4  Amendment and Termination.

     ML & Co., through the Administrator, reserves the right to amend or
terminate this Plan at any time, except that no such amendment or termination
shall adversely affect the right of a Participant to his or her Account Balance
(as reduced by the Annual Charge, the Debit Balance or the Leveraged

                                       16
<PAGE>

Principal Amount and Interest thereon, as set forth in Section 3.4) as of the
date of such amendment or termination.

                                       17

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