Document:

EX-10.2

 Exhibit 10.2 
 EMPLOYEE MATTERS AGREEMENT 
 BY AND BETWEEN 

COVIDIEN PLC 

AND 

MALLINCKRODT PLC 

DATED AS OF JUNE 28, 2013 

 TABLE OF CONTENTS 

 

							
	 ARTICLE I GENERAL PRINCIPLES FOR ALLOCATION OF LIABILITIES
	  	 	1	  
	 Section 1.1
	 	 General Principles
	  	 	1	  
	 Section 1.2
	 	 Service Credit
	  	 	2	  
	 Section 1.3
	 	 Transition Services
	  	 	3	  
	 Section 1.4
	 	 No Duplication or Acceleration of Benefits
	  	 	3	  
	 Section 1.5
	 	 No Expansion of Participation
	  	 	3	  
	 Section 1.6
	 	 Non-U.S. Regulatory Compliance
	  	 	3	  
		
	 ARTICLE II DEFINITIONS
	  	 	4	  
	 Section 2.1
	 	 Definitions
	  	 	4	  
	 Section 2.2
	 	 Interpretation
	  	 	9	  
		
	 ARTICLE III ASSIGNMENT OF EMPLOYEES
	  	 	9	  
	 Section 3.1
	 	 Active Employees
	  	 	9	  
	 Section 3.2
	 	 Employee Records
	  	 	10	  
	 Section 3.3
	 	 Non-Solicitation
	  	 	11	  
		
	 ARTICLE IV INCENTIVE COMPENSATION PLANS
	  	 	11	  
	 Section 4.1
	 	 General Principles
	  	 	11	  
	 Section 4.2
	 	 Treatment of Stock Options
	  	 	12	  
	 Section 4.3
	 	 Restricted Units
	  	 	13	  
	 Section 4.4
	 	 Performance Units
	  	 	14	  
	 Section 4.5
	 	 Liabilities for Settlement of Awards
	  	 	15	  
	 Section 4.6
	 	 Annual Incentive Plan Payments
	  	 	16	  
	 Section 4.7
	 	 Equity Plan Approval
	  	 	16	  
		
	 ARTICLE V U.S. QUALIFIED RETIREMENT PLANS
	  	 	16	  
	 Section 5.1
	 	 Pension Plans
	  	 	16	  
	 Section 5.2
	 	 Defined Contribution Plans
	  	 	17	  
	 Section 5.3
	 	 Employee Benefit Plan Governance Structure
	  	 	18	  
		
	 ARTICLE VI U.S. NON-QUALIFIED DEFERRED COMPENSATION PLANs
	  	 	19	  
	 Section 6.1
	 	 Mallinckrodt Non-Qualified Deferred Compensation Plans
	  	 	19	  
	 Section 6.2
	 	 Covidien Non-Qualified Deferred Compensation Plan
	  	 	19	  
	 Section 6.3
	 	 Participation; Distributions
	  	 	20	  
		
	 ARTICLE VII U.S. HEALTH, WELFARE AND FRINGE BENEFIT PLANS
	  	 	20	  
	 Section 7.1
	 	 Health Plans
	  	 	20	  
	 Section 7.2
	 	 Section 125 Plans
	  	 	20	  
	 Section 7.3
	 	 Fringe Benefits
	  	 	21	  
	 Section 7.4
	 	 Workers’ Compensation
	  	 	21	  
	 Section 7.5
	 	 Indemnification
	  	 	21	  
	 Section 7.6
	 	 Termination of Participation
	  	 	21	  
		
	 ARTICLE VIII NON-U.S. EMPLOYEES
	  	 	21	  

  
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	 ARTICLE IX GENERAL PROVISIONS
	  	 	22	  
	 Section 9.1
	 	 Preservation of Rights to Amend
	  	 	22	  
	 Section 9.2
	 	 Fiduciary Matters
	  	 	22	  
	 Section 9.3
	 	 Entire Agreement
	  	 	22	  
	 Section 9.4
	 	 Binding Effect; No Third-Party Beneficiaries; Assignment
	  	 	22	  
	 Section 9.5
	 	 Amendment
	  	 	22	  
	 Section 9.6
	 	 Remedies Cumulative
	  	 	23	  
	 Section 9.7
	 	 Notices
	  	 	23	  
	 Section 9.8
	 	 Counterparts
	  	 	23	  
	 Section 9.9
	 	 Severability
	  	 	23	  
	 Section 9.10
	 	 Governing Law
	  	 	23	  
	 Section 9.11
	 	 Dispute Resolution
	  	 	23	  
	 Section 9.12
	 	 Performance
	  	 	23	  
	 Section 9.13
	 	 Construction
	  	 	24	  
	 Section 9.14
	 	 Effect if Distribution Does Not Occur
	  	 	24	  

  
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 EMPLOYEE MATTERS AGREEMENT 

THIS EMPLOYEE MATTERS AGREEMENT, made and entered into effective as of June 28, 2013 (this “Agreement”), is by and
between Covidien plc, an Irish public limited company (“Covidien”), and Mallinckrodt plc, an Irish public limited company (“Mallinckrodt”). Covidien and Mallinckrodt are also referred to in this Agreement
individually as, a “Party” and collectively, as the “Parties.” Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to them in Article II. 

RECITALS 

WHEREAS, Covidien has determined that it would be appropriate, desirable and in the best interests of Covidien and its shareholders to
separate the Mallinckrodt Business from Covidien; 
 WHEREAS, Covidien and Mallinckrodt have entered into the Separation and
Distribution Agreement, dated June 28, 2013 (the “Separation Agreement”), in connection with the separation of the Mallinckrodt Business from Covidien and the Distribution of Mallinckrodt Ordinary Shares to shareholders of
Covidien; 
 WHEREAS, the Separation Agreement also provides for the execution and delivery of certain other agreements,
including this Agreement, in order to facilitate and provide for the separation of Mallinckrodt and its Subsidiaries from Covidien; and 
 WHEREAS, in order to ensure an orderly transition under the Separation Agreement, it will be necessary for the Parties to allocate between them certain Assets and Liabilities with respect to certain
employee compensation and benefit plans and programs, and to address certain other employment matters. 
 NOW, THEREFORE, in
consideration of the foregoing and the covenants and agreements set forth below and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the Parties hereby
agree as follows: 
 ARTICLE I 
 GENERAL PRINCIPLES FOR ALLOCATION OF LIABILITIES 
 Section 1.1 General
Principles. (a) Except as otherwise provided in this Agreement, the Separation Agreement or any Ancillary Agreement, effective as of the Distribution Date or earlier, one or more members of the Mallinckrodt Group (as determined by
Mallinckrodt) shall assume or continue the sponsorship of, and shall pay, perform and discharge, and no Covidien Entity shall have any Liability with respect to or under, the following agreements, obligations and Liabilities, and Mallinckrodt shall
indemnify each Covidien Entity, and the officers, directors, and employees of each Covidien Entity, and hold them harmless with respect to such agreements, obligations and Liabilities: 

(i) any and all wages, salaries, incentive compensation (as the same may be modified by this Agreement), commissions,
bonuses, and any other employee 

 
compensation or benefits payable to or on behalf of any Mallinckrodt Group Employees after the Distribution Date, without regard to when such wages, salaries, incentive compensation, commissions,
bonuses, or other employee compensation or benefits are or may have been earned; 
 (ii) any and all
immigration-related, visa, work application or similar rights, obligations and Liabilities related to any Mallinckrodt Group Employees; and 
 (iii) any and all Liabilities and obligations whatsoever with respect to claims made by or with respect to any Mallinckrodt Group Employees in connection with any employee benefit plan, program or policy
not retained or assumed by any Covidien Entity pursuant to this Agreement, the Separation Agreement or any Ancillary Agreement, including any such Liabilities relating to actions or omissions of or by any Mallinckrodt Entity or any officer,
director, employee or agent thereof prior to, on or after the Distribution Date. 
 (b) Except as otherwise provided in this
Agreement, effective as of the Effective Time, no Mallinckrodt Entity shall have any Liability for, and Covidien shall indemnify each Mallinckrodt Entity, and the officers, directors, and employees of each Mallinckrodt Entity, and hold them harmless
with respect to any and all Liabilities and obligations whatsoever with respect to, claims made by or with respect to any Covidien Group Employees or Former Covidien Group Employees in connection with any employee benefit plan, program or policy not
retained or assumed by any Mallinckrodt Entity pursuant to this Agreement, including such Liabilities relating to actions or omissions of or by any Covidien Entity or any officer, director, employee or agent thereof on, prior to or after the
Distribution Date. 
 Section 1.2 Service Credit. 

(a) Service for Eligibility, Vesting, and Benefit Purposes. Except as otherwise provided in any other provision of this
Agreement, the Mallinckrodt Benefit Plans shall, and Mallinckrodt shall cause each Mallinckrodt Entity to, recognize each Mallinckrodt Group Employee’s and each Former Mallinckrodt Group Employee’s full service with any Covidien Entity on
or prior to the Effective Time, to the same extent such service would be credited if it had been performed for a Mallinckrodt Entity, for purposes of eligibility, vesting and determination of level of benefits under any such Mallinckrodt Benefit
Plan. 
 (b) Evidence of Prior Service. Notwithstanding anything to the contrary, but subject to applicable Law,
upon reasonable request by either Party (the “Requesting Party”), the other Party (the “Providing Party”) will provide to the Requesting Party copies of any records available to the Providing Party to document the
service, plan participation and membership of former Employees of the Providing Party who are then Employees of the Requesting Party, and will cooperate with the Requesting Party to resolve any discrepancies or obtain any missing data for purposes
of determining benefit eligibility, participation, vesting and calculation of benefits with respect to any such Employee. 

  
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 (c) Accrued Time Off. Mallinckrodt shall recognize and assume all Liability for all
unused vacation, holiday, sick leave, flex days, personal days and paid-time off and other time-off benefits with respect to Mallinckrodt Group Employees which accrued on or prior to the Effective Time, and Mallinckrodt shall credit each
Mallinckrodt Group Employee with such accrual. 
 (d) Leaves of Absence. Mallinckrodt will continue to apply the
appropriate leave of absence policies applicable to inactive Mallinckrodt Group Employees who are on an approved leave of absence as of the Effective Time. Leaves of absence taken by Mallinckrodt Group Employees prior to the Effective Time shall be
deemed to have been taken as employees of a Mallinckrodt Entity. 
 Section 1.3 Transition Services. The Parties
acknowledge that the Covidien Group or the Mallinckrodt Group may provide administrative services for certain of the other Party’s benefit plans, programs or arrangements for a transitional period under the terms of a Transition Services
Agreement. The Parties hereby agree to enter into any agreement necessary to implement a Transition Services Agreement, including but not limited to a business associate agreement (if required by HIPAA or other applicable health information privacy
Laws). 
 Section 1.4 No Duplication or Acceleration of Benefits. Notwithstanding anything to the contrary in this
Agreement, the Separation Agreement or any Ancillary Agreement, no participant in the Mallinckrodt 401(k) Plan, Mallinckrodt Health Plans or any other Mallinckrodt Benefit Plan shall receive benefits to the extent that receipt of such benefits would
result in duplication of benefits provided by the corresponding Covidien Benefit Plan or any other plan, program or arrangement sponsored or maintained by a Covidien Entity. Furthermore, unless expressly provided for in this Agreement, the
Separation Agreement or in any Ancillary Agreement or required by applicable Law, no provision in this Agreement shall be construed to create any right to accelerate vesting or entitlements under any compensation or Benefit Plan, program or
arrangement sponsored or maintained by a Covidien Entity or Mallinckrodt Entity on the part of any Employee. 
 Section 1.5
No Expansion of Participation. Unless otherwise expressly provided in this Agreement, as otherwise determined or agreed to by Covidien and Mallinckrodt, as required by applicable Law, or as explicitly set forth in a Mallinckrodt
Benefit Plan, a Mallinckrodt Group Employee shall be entitled to participate in the Mallinckrodt Benefit Plans on the Distribution Date only to the extent that such Mallinckrodt Group Employee was entitled to participate in the corresponding
Covidien Benefit Plan as in effect immediately prior to the Distribution Date (to the extent such Mallinckrodt Group Employee is not currently participating in the respective Mallinckrodt Benefit Plan immediately prior to the Distribution Date), it
being understood that this Agreement does not expand (a) the number of Mallinckrodt Group Employees entitled to participate in any Mallinckrodt Benefit Plan or (b) the participation rights of Mallinckrodt Group Employees in any
Mallinckrodt Benefit Plans beyond the rights of such Mallinckrodt Group Employees under the corresponding Covidien Benefit Plans, in each case, following the Effective Time. 
 Section 1.6 Non-U.S. Regulatory Compliance. Covidien shall have the authority to adjust the treatment described in this Agreement with respect to Mallinckrodt Group

  
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Employees who are located outside of the U.S. in order to ensure compliance with the applicable laws or regulations of countries outside the U.S. or to preserve the tax benefits provided under
local tax law or regulation prior to the Distribution. 
 ARTICLE II 

DEFINITIONS 

Section 2.1 Definitions. As used in this Agreement, the following terms shall have the meanings set forth in this
Section 2.1: 
 “Adjusted Covidien Option” shall have the meaning set forth in
Section 4.2. 
 “Adjusted Covidien PSU” shall have the meaning set forth in
Section 4.4. 
 “Adjusted Covidien RSU” shall have the meaning set forth in
Section 4.3. 
 “Affiliate” shall have the meaning set forth in the Separation Agreement.

 “Agreement” shall mean this Employee Matters Agreement, together with all Schedules hereto and all
amendments, modifications, and changes hereto entered into pursuant to Section 9.5. 
 “Ancillary
Agreements” shall have the meaning set forth in the Separation Agreement. 
 “Assets” shall have the
meaning set forth in the Separation Agreement. 
 “Benefit Management Records” shall have the meaning set forth
in Section 3.2(b). 
 “Benefit Plan” shall mean any contract, agreement, policy, practice, program,
plan, trust, commitment or arrangement providing for benefits, perquisites or compensation of any nature from an employer to any Employee, or to any family member, dependent, or beneficiary of any such Employee, including pension plans, thrift
plans, supplemental pension plans and welfare plans, and contracts, agreements, policies, practices, programs, plans, trusts, commitments and arrangements providing for terms of employment, fringe benefits, severance benefits, change in control
protections or benefits, travel and accident, life, accidental death and dismemberment, disability and accident insurance, tuition reimbursement, travel reimbursement, vacation, sick, personal or bereavement days, leaves of absences and holidays;
provided, however, the term “Benefit Plan” does not include any government sponsored benefits, such as workers’ compensation, unemployment or any similar plans, programs or policies. 

“COBRA” shall mean the U.S. Consolidated Omnibus Budget Reconciliation Act of 1985, as codified at Section 601
et seq. of ERISA and at Section 4980B of the Code. 
 “Code” shall have the meaning set forth in
the Separation Agreement. 
 “Covidien” shall have the meaning set forth in the preamble to this Agreement.

  
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 “Covidien Adjusted Exercise Price” shall have the meaning set forth in
Section 4.2(a)(i). 
 “Covidien Benefit Plan” shall mean any Benefit Plan sponsored or maintained
by a Covidien Entity immediately prior to the Effective Time. 
 “Covidien Entity” shall mean any member of the
Covidien Group. 
 “Covidien Equity Plan” shall mean any equity compensation plan sponsored or maintained by
Covidien immediately prior to the Distribution Date, including the Covidien Stock and Incentive Plan, the Covidien Employee Stock Purchase Plan, and the Covidien Savings Related Share Plan. 

“Covidien 401(k) Plan” shall mean the Covidien Retirement Savings and Investment Plan. 

“Covidien Group” shall have the meaning set forth in the Separation Agreement. 

“Covidien Group Employee” shall have the meaning set forth in Section 3.1(b). 

“Covidien Health Plan” shall mean the Covidien Health & Welfare Benefits Plan. 

“Covidien Non-qualified Plans” shall mean the Covidien Supplemental Savings and Retirement Plan, the Covidien
Supplemental Executive Retirement Plan, The Kendall Company Senior Executive Supplemental Retirement Plan, the Batts Inc. Supplemental Retirement and Death Benefit Agreement and the Batts Inc. Non-qualified Deferred Compensation Plan. 

“Covidien Options” shall mean exercisable and non-exercisable stock options to purchase Covidien Ordinary Shares granted
pursuant to the Covidien Stock and Incentive Plan or a predecessor plan. 
 “Covidien Ordinary Shares” shall
mean the ordinary shares, par value $0.20 per share, of Covidien. 
 “Covidien Pension Plan” shall mean the
Kendall Pension Plan. 
 “Covidien Post-Distribution Stock Value” shall mean the volume weighted average per
share price of Covidien Ordinary Shares trading on an ex-dividend basis on the NYSE during Regular Trading Hours on the Distribution Date. 
 “Covidien Pre-Distribution Stock Value” shall mean the volume weighted average per share price of Covidien Ordinary Shares trading “regular way with due bills” on the NYSE
during Regular Trading Hours on the Distribution Date. 
 “Covidien Price Ratio” shall mean the quotient
obtained by dividing the Covidien Post-Distribution Stock Value by the Covidien Pre-Distribution Stock Value, rounded to the nearest one ten-thousandth. 

  
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 “Covidien PSUs” shall mean performance units granted under the Covidien
Stock and Incentive Plan or a predecessor plan. 
 “Covidien Retained Savings Plans” shall have the meaning set
forth in Section 5.2(b). 
 “Covidien RSUs” shall mean restricted units granted under the Covidien
Stock and Incentive Plan or a predecessor plan. 
 “Covidien Share Ratio” shall mean the quotient obtained by
dividing the Covidien Pre-Distribution Stock Value by the Covidien Post-Distribution Stock Value, rounded to the nearest one-ten-thousandth. 
 “Distribution” shall have the meaning set forth in the Separation Agreement. 
 “Distribution Date” shall have the meaning set forth in the Separation Agreement. 
 “Effective Time” shall have the meaning set forth in the Separation Agreement. 
 “Employee” shall mean any Covidien Group Employee, Former Covidien Group Employee, Mallinckrodt Group Employee or Former Mallinckrodt Group Employee. 

“ERISA” shall mean the U.S. Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated
thereunder. 
 “Former Covidien Group Employee” shall mean a former employee of the Covidien Group whose
employment with the Covidien Group was terminated before the Effective Time (and who is not actively employed by the Covidien Group as of the Effective Time). 
 “Former Employees” shall mean Former Covidien Group Employees and Former Mallinckrodt Group Employees. 
 “Former Mallinckrodt Group Employee” shall mean a former employee of the Mallinckrodt Business whose employment was terminated before the Effective Time (and who is not actively employed
by the Mallinckrodt Group immediately following the Effective Time). 
 “Government Entity” shall mean any
instrumentality, subdivision, court, administrative agency, commission, official or other authority of any country, state, province, prefect, municipality, locality or other government or political subdivision thereof, or any quasi-governmental or
private body exercising any regulatory, taxing, importing or other governmental or quasi-governmental authority. 

“HIPAA” shall mean the U.S. Health Insurance Portability and Accountability Act of 1996, as amended, and the regulations
promulgated thereunder. 
 “IRS” shall mean the U.S. Internal Revenue Service. 

  
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 “Law” shall have the meaning set forth in the Separation Agreement.

 “Liabilities” shall have the meaning set forth in the Separation Agreement. 

“Mallinckrodt” shall have the meaning set forth in the preamble to this Agreement. 

“Mallinckrodt Annual Incentive Plan” shall have the meaning set forth in Section 4.6. 

“Mallinckrodt Benefit Plan” shall mean any Benefit Plan sponsored or maintained by a Mallinckrodt Entity. 

“Mallinckrodt Business” shall have the meaning set forth in the Separation Agreement. 

“Mallinckrodt Deferred Compensation Plans” shall have the meaning set forth in Section 6.1(a). 

“Mallinckrodt Entity” shall mean any member of the Mallinckrodt Group. 

“Mallinckrodt Exercise Price” shall have the meaning set forth in Section 4.2(b). 

“Mallinckrodt 401(k) Plan” shall mean the Mallinckrodt Pharmaceuticals Retirement Savings and Investment Plan.

 “Mallinckrodt Group” shall have the meaning set forth in the Separation Agreement. 

“Mallinckrodt Group Employee” shall have the meaning set forth in Section 3.1(a). 

“Mallinckrodt Health Plan” shall mean the Mallinckrodt Pharmaceuticals Health & Welfare Benefits Plan.

 “Mallinckrodt New Equity Plan” shall mean the Mallinckrodt Pharmaceuticals Stock and Incentive Plan adopted
by Mallinckrodt prior to the Effective Time and approved by Mallinckrodt’s shareholders, under which the Mallinckrodt equity-based awards described in Article IV shall be issued. 

“Mallinckrodt Non-qualified Plan” shall mean the Mallinckrodt Pharmaceuticals Supplemental Savings and Retirement Plan.

 “Mallinckrodt Options” shall have the meaning set forth in Section 4.2. 

“Mallinckrodt Ordinary Shares” shall mean the ordinary shares, par value $0.20 per share, of Mallinckrodt. 

“Mallinckrodt Pension Plans” shall have the meaning set forth in Section 5.1(a). 

  
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 “Mallinckrodt Price Ratio” shall mean the quotient obtained by dividing the
Mallinckrodt Stock Value by the Covidien Pre-Distribution Stock Value rounded to the nearest one ten-thousandth. 

“Mallinckrodt PRC Nationals” shall have the meaning set forth in Section 4.1(d). 

“Mallinckrodt PSUs” shall have the meaning set forth in Section 4.4. 

“Mallinckrodt RSUs” shall have the meaning set forth in Section 4.3. 

“Mallinckrodt Savings Plans” shall have the meaning set forth in Section 5.2(a). 

“Mallinckrodt Share Ratio” shall mean the quotient obtained by dividing the Covidien Pre-Distribution Stock Value by the
Mallinckrodt Stock Value, rounded to the nearest one ten-thousandth. 
 “Mallinckrodt Stock Value” shall mean
the volume weighted average per share price of Mallinckrodt Ordinary Shares trading on the “when issued” market on the NYSE during Regular Trading Hours on the Distribution Date. 

“Non-Covidien Option Holders” shall mean individuals who hold Covidien Options as of the Effective Time who are not
Employees. 
 “NYSE” shall mean the New York Stock Exchange. 

“Party” or “Parties” shall have the meaning set forth in the preamble to this Agreement. 

“Person” shall have the meaning set forth in the Separation Agreement. 

“Providing Party” shall have the meaning set forth in Section 1.2(b). 

“Regular Trading Hours” shall mean the period beginning at 9:30 A.M., New York City time and ending at 4:00 P.M., New
York City time. 
 “SAYE” shall have the meaning set forth in Section 4.1(d). 

“Separation Agreement” shall have the meaning set forth in the recitals to this Agreement. 

“Subsidiary” shall have the meaning set forth in the Separation Agreement. 

“Transition Services Agreement” shall have the meaning set forth in the Separation Agreement. 

“U.S.” means the United States of America. 

  
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 Section 2.2 Interpretation. The provisions of Section 11.15 of the
Separation Agreement are hereby incorporated by reference. 
 ARTICLE III 

ASSIGNMENT OF EMPLOYEES 
 Section 3.1 Active Employees. 
 (a) Mallinckrodt Group
Employees. Effective no later than immediately prior to the Effective Time, the applicable Covidien Entity shall have taken such actions as are necessary to ensure that each individual who is intended to be an employee of the Mallinckrodt
Group immediately following the Effective Time (collectively, the “Mallinckrodt Group Employees”) is employed by a Mallinckrodt Entity. Each of the Parties agrees to execute, and to seek to have the applicable employees execute,
such documentation, if any, as may be necessary to reflect such assignment and/or transfer. 
 (b) Covidien Group
Employees. Effective no later than immediately prior to the Effective Time, the applicable Covidien Entity shall have taken such actions as are necessary to ensure that each individual who is intended to be an employee of the Covidien Group
immediately following the Effective Time (collectively, the “Covidien Group Employees”) is employed by a Covidien Entity. Each of the Parties agrees to execute, and to seek to have the applicable employees execute, such
documentation, if any, as may be necessary to reflect such assignment and/or transfer. 
 (c) At-Will Status.
Notwithstanding the above or any other provision of this Agreement, nothing in this Agreement shall create any obligation on the part of any Covidien Entity or any Mallinckrodt Entity to (i) continue the employment of any Employee or permit the
return from a leave of absence for any period following the date of this Agreement or the Distribution Date (except as required by applicable Law) or (ii) change the employment status of any Employee from “at-will,” to the extent such
Employee is an “at-will” employee under applicable Law. 
 (d) Severance. The Parties acknowledge and
agree that the Distribution and the assignment, transfer or continuation of the employment of Employees as contemplated by this Section 3.1 shall not be deemed an involuntary termination of employment entitling any Mallinckrodt Group
Employee or Covidien Group Employee to severance payments or benefits. 
 (e) Not a Change of Control/Change in
Control. The Parties acknowledge and agree that neither the consummation of the Distribution nor any transaction in connection with the Distribution shall be deemed a “change of control,” “change in control,” or term of
similar import for purposes of any Benefit Plan sponsored or maintained by any Covidien Entity or Mallinckrodt Entity. 
 (f)
Confidentiality. The provisions of this Section 3.1 shall be in addition to, and not in derogation of, the provisions of Article IV and Article VII of the Separation Agreement. Except as otherwise set forth in this
Agreement, all records and data relating to Employees shall, in each case, be subject to the confidentiality provisions of the Separation Agreement and any other applicable agreement and applicable Law. 

  
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 Section 3.2 Employee Records. 

(a) Sharing of Information. Subject to any limitations imposed by applicable Law, Covidien and Mallinckrodt (acting
directly or through members of the Covidien Group or the Mallinckrodt Group, respectively) shall provide to the other and their respective authorized agents and vendors all information necessary for the Parties to perform their respective duties
under this Agreement. The Parties also hereby agree to enter into any business associate arrangement that may be required for the sharing of any Information pursuant to this Agreement to comply with the requirements of HIPAA. 

(b) Transfer of Personnel Records and Authorization. Subject to any limitation imposed by applicable Law and to the extent
that it has not done so before the Distribution Date, on the Distribution Date, Covidien shall transfer and assign to Mallinckrodt all personnel records, all immigration documents, including I-9 forms and work authorizations, all payroll deduction
authorizations and elections, whether voluntary or mandated by Law, including but not limited to W-4 forms, W-8BEN forms and deductions for benefits under the applicable Mallinckrodt Benefit Plan and all absence management records, Family and
Medical Leave Act records, insurance beneficiary designations, flexible spending account enrollment confirmations, attendance, and return to work information (“Benefit Management Records”) relating to participants in Mallinckrodt
Benefit Plans. Subject to any limitations imposed by applicable Law, Covidien, however, may retain originals of, copies of, or access to, personnel records, immigration records, payroll forms and Benefit Management Records as long as necessary to
comply with its obligations under applicable Law or to provide services to Mallinckrodt (acting on its behalf pursuant to any Transition Services Agreement entered into by and between the Parties). Immigration records will, if and as appropriate,
become a part of Mallinckrodt’s public access file. Mallinckrodt will use personnel records, payroll forms and Benefit Management Records for lawful purposes only, including calculation of withholdings from wages and personnel management. It is
understood that following the Distribution Date, Covidien records so transferred and assigned may be maintained by Mallinckrodt (acting directly or through one of its Subsidiaries) pursuant to Mallinckrodt’s applicable records retention policy.

 (c) Access to Records. To the extent not inconsistent with this Agreement, the Separation Agreement or any
applicable privacy protection Laws or regulations, reasonable access to Employee-related records after the Distribution Date will be provided to members of the Covidien Group and members of the Mallinckrodt Group pursuant to the terms and conditions
of Section 7.6 of the Separation Agreement. 
 (d) Maintenance of Records. With respect to retaining,
destroying, transferring, sharing, copying and permitting access to all Employee-related information, Covidien and Mallinckrodt shall comply with all applicable Laws, regulations and internal policies, and shall indemnify and hold harmless each
other from and against any and all Liability, claims, actions, and damages that arise from a failure (by the indemnifying party or its Subsidiaries or their respective agents) to so comply with all applicable Laws, regulations and internal policies
applicable to such information. 

  
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 (e) Cooperation. Each Party shall use commercially reasonable efforts to
cooperate and work together to unify, consolidate and share (to the extent permissible under applicable privacy/data protection laws) all relevant documents, Board resolutions, government filings, data, payroll, employment and benefit plan
Information on regular timetables, make certain that each applicable entity’s data and records are correct and updated on a timely basis, and cooperate as needed with respect to (i) any litigation with respect to any employee benefit plan,
policy or arrangement contemplated by this Agreement, (ii) an audit of any employee benefit plan, policy or arrangement contemplated by this Agreement by the IRS, U.S. Department of Labor or any other Government Entity, (iii) seeking a
determination letter, private letter ruling or advisory opinion from the IRS or U.S. Department of Labor on behalf of any employee benefit plan, policy or arrangement contemplated by this Agreement, and (iv) any filings that are required to be
made or supplemented to the IRS, U.S. Pension Benefit Guaranty Corporation, U.S. Department of Labor or any other Government Entity; provided, however, that requests for cooperation must be reasonable and not interfere with daily
business operations. 
 Section 3.3 Non-Solicitation. Each Party agrees that, for a period of two years from the
Distribution Date, such party will not solicit for employment any employee of the other Party; provided, however, that this Section 3.3 shall not prohibit: (a) generalized solicitations which are not directed to
specific individuals or employees of the other party (for the avoidance of doubt, including solicitations resulting from actions initiated by employees through the Covidien or Mallinckrodt internal posting system); (b) solicitations of persons
whose employment was involuntarily terminated by the other Party; or (c) solicitations expressly permitted in writing by the Senior Vice President, Human Resources of the Party which employs the person who is to be solicited. 

ARTICLE IV 

INCENTIVE COMPENSATION PLANS 
 Section 4.1 General Principles. 
 (a) Covidien and Mallinckrodt shall
take any and all reasonable actions as shall be necessary and appropriate to further the provisions of this Article IV, including, to the extent practicable, providing written notice or similar communication to each Employee who holds one or more
equity awards granted under any of the Covidien Equity Plans informing such Employee of (i) the actions contemplated by this Article IV with respect to such awards and (ii) whether (and during what time period) any “blackout”
period shall be imposed upon holders of awards granted under any of the Covidien Equity Plans during which time awards may not be exercised or settled, as the case may be. 
 (b) Following the Distribution, a grantee who has outstanding awards under one or more of the Covidien Equity Plans or replacement awards pursuant to this Agreement shall be considered to have been
employed by Covidien or Mallinckrodt, as applicable, before and after the Distribution for purposes of vesting. For purposes of the equity awards and except as otherwise provided in Section 4.1(d) below, the Distribution shall not result
in a termination of employment or service for any Employee, rather the date of termination of employment or service with the applicable plan sponsor following the Distribution shall be the termination date for the purposes of any outstanding equity
awards. 

  
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 (c) No award described in this Article IV, whether outstanding or to be issued, adjusted,
substituted or cancelled by reason of or in connection with the Distribution, shall be adjusted, settled, cancelled, or exercisable, until in the judgment of the administrator of the applicable plan or program such action is consistent with all
applicable Laws, including U.S. securities Laws. Neither the period of exercisability nor the term of any award will be extended on account of a period during which such an award is not exercisable pursuant to the preceding sentence. 

(d) Notwithstanding anything to the contrary in this Agreement, Covidien Options which are intended to be “approved options”
and that were issued pursuant to the Covidien Stock and Incentive Plan HMRC Approved Sub-Plan for the United Kingdom and options to purchase Covidien Ordinary Shares which were offered by invitation pursuant to the Covidien Savings Related Share
Plan (“SAYE”) will not be adjusted as described below and any Covidien Options, Covidien PSUs or Covidien RSUs held by a Mallinckrodt Group Employee who is a resident of the People’s Republic of China (“Mallinckrodt PRC
Nationals”) will not be adjusted as described below. Notwithstanding the provisions of Section 4.1(b), the Distribution shall be treated as a termination of employment from a Covidien Entity for Mallinckrodt PRC Nationals and any
Mallinckrodt Group Employee in the United Kingdom who hold options to purchase Covidien Ordinary Shares through the SAYE. The applicable terms and conditions of equity awards held by Mallinckrodt PRC Nationals and the terms of the SAYE shall govern
the vesting and exercisability of the applicable awards upon the Distribution. 
 (e) The adjustment or conversion of Covidien
Options, Covidien PSUs, Covidien RSUs, Mallinckrodt Options, Mallinckrodt RSUs and Mallinckrodt PSUs shall be effectuated in a manner that is intended to avoid the imposition of any penalty or other taxes on the holders thereof pursuant to Code
Section 409A. 
 Section 4.2 Treatment of Stock Options. 

(a) Covidien Options Held by Covidien Group Employees; Former Employees; Non-Covidien Option Holders. Except as otherwise provided
in Section 4.1(d), each Covidien Option that is outstanding as of the Effective Time that is held by a Covidien Group Employee, a Former Employee or a Non-Covidien Option Holder shall remain an option to purchase Covidien Ordinary Shares
and shall be adjusted as described below to reflect the Distribution (each such option, an “Adjusted Covidien Option”). Each Adjusted Covidien Option shall be subject to the same terms and conditions after the Effective Time as the
terms and conditions applicable to the corresponding Covidien Option immediately prior to the Effective Time; provided, however, that from and after the Effective Time: 

(i) the per-share exercise price of each such Adjusted Covidien Option shall be equal to the product of (i) the
per-share exercise price of the corresponding Covidien Option immediately prior to the Effective Time multiplied by (ii) the Covidien Price Ratio, rounded up to the nearest whole cent (the “Covidien Adjusted Exercise Price”);
and 

  
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 (ii) the number of Covidien Ordinary Shares subject to each such Adjusted
Covidien Option shall be equal to the product of (i) the number of Covidien Ordinary Shares subject to the corresponding Covidien Option immediately prior to the Effective Time multiplied by (ii) the Covidien Share Ratio, with any
fractional shares rounded down to the nearest whole share. 
 (b) Covidien Options Held by Mallinckrodt Group Employees.
Except as otherwise provided in Section 4.1(d), each Covidien Option that is outstanding as of the Effective Time that is held by a Mallinckrodt Group Employee who continues to be employed by the Mallinckrodt Group immediately after the
Distribution shall be converted into an option to purchase Mallinckrodt Ordinary Shares pursuant to the terms of the Mallinckrodt New Equity Plan and shall be adjusted as described below to reflect the Distribution (each such option, a
“Mallinckrodt Option”). Each Mallinckrodt Option shall be subject to the same terms and conditions after the Effective Time as the terms and conditions applicable to the corresponding Covidien Option immediately prior to the
Effective Time; provided, however, that from and after the Effective Time: 
 (i) the per-share
exercise price of each such Mallinckrodt Option shall be equal to the product of (A) the per-share exercise price of the corresponding Covidien Option immediately prior to the Effective Time multiplied by (B) the Mallinckrodt Price Ratio,
rounded up to the nearest whole cent (the “Mallinckrodt Exercise Price”); and 
 (ii) the number
of Mallinckrodt Ordinary Shares subject to each such Mallinckrodt Option shall be equal to the product of (A) the number of Covidien Ordinary Shares subject to the corresponding Covidien Option immediately prior to the Effective Time multiplied
by (B) the Mallinckrodt Share Ratio, with any fractional share rounded down to the nearest whole share. 
 Section 4.3
Restricted Units. 
 (a) Each award of Covidien RSUs held by a Covidien Group Employee or Former Employee immediately
prior to the Effective Time shall be adjusted, effective as of the Effective Time, by multiplying the number of Covidien Ordinary Shares subject to such Covidien RSU award by the Covidien Share Ratio, which product shall be rounded down to the
nearest whole number of units with a cash payment for any fractional units to be made as soon as administratively practicable after the Effective Time but in any event no later than September 1, 2013 (each such adjusted Covidien RSU, an
“Adjusted Covidien RSU”); provided, however, that for any Covidien Group Employee who has satisfied the requirements for Normal Retirement (as defined in the applicable terms and conditions) as of the Effective Time,
such product shall be subject to regular rounding in lieu of a cash payment for fractional units. Each Adjusted Covidien RSU shall be subject to the same terms and conditions after the Effective Time as the terms and conditions applicable to the
corresponding Covidien RSU immediately prior to the Effective Time. 

  
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 (b) Except as otherwise provided in Section 4.1(d), each award of Covidien RSUs
held by a Mallinckrodt Group Employee immediately prior to the Effective Time who continues to be employed by the Mallinckrodt Group immediately after the Distribution shall be converted to a restricted unit award relating to a number of
Mallinckrodt Ordinary Shares (the “Mallinckrodt RSUs”) determined by multiplying the number of Covidien Ordinary Shares subject to each Covidien RSU award by the Mallinckrodt Share Ratio, which product shall be rounded down to the
nearest whole number of Mallinckrodt RSUs with a cash payment for any fractional units to be made as soon as administratively practicable after the Effective Time but in any event no later than September 1, 2013; provided,
however, that for any Mallinckrodt Group Employee who has satisfied the requirements for Normal Retirement (as defined in the applicable terms and conditions) as of the Effective Time, such product shall be subject to regular rounding in lieu
of a cash payment for fractional units. Except as otherwise provided herein, each Mallinckrodt RSU shall be subject to the same terms and conditions after the Distribution as the terms and conditions applicable to the corresponding Covidien RSUs
immediately prior to the Distribution. 
 Section 4.4 Performance Units. 

(a) Each award of Covidien PSUs held by a Covidien Group Employee or Former Employee shall be adjusted, effective as of the Effective
Time, by multiplying the number of Covidien Ordinary Shares subject to such Covidien PSU award by the Covidien Share Ratio which product shall be rounded down to the nearest whole number of units with a cash payment for any fractional units to be
made as soon as administratively practicable after the Effective Time but in any event no later than September 1, 2013 (each such adjusted Covidien PSU, an “Adjusted Covidien PSU”); provided, however, that for any
Covidien Group Employee who has satisfied the requirements for Normal Retirement (as defined in the applicable terms and conditions) as of the Effective Time, such product shall be subject to regular rounding in lieu of a cash payment for fractional
units. Each Adjusted Covidien PSU shall be subject to the same terms and conditions after the Effective Time as the terms and conditions applicable to the corresponding Covidien PSU immediately prior to the Effective Time, taking into account the
adjustments to the performance measures relating to Covidien PSUs granted in fiscal years 2011 and 2012 that were approved by the Compensation Committee of the Covidien board of directors prior to the date hereof and that will be effective as of the
Effective Time, as described below. The Covidien PSUs granted in fiscal year 2011 will be adjusted at the Effective Time to provide for the early conclusion of the performance cycle, resulting in such Covidien PSUs being subject to vesting based
solely upon continued service through September 27, 2013. The 2012 Covidien PSUs granted in fiscal year 2012 will be adjusted at the Effective Time to provide for an updated Healthcare Industry Index (an index used for calculating total
shareholder return or TSR) in order to reflect the changes in Covidien’s peer group following the distribution of the pharmaceuticals business. 
 (b) Except as otherwise provided in Section 4.1(d), each award of Covidien PSUs held by a Mallinckrodt Group Employee immediately prior to the Effective Time who continues to be employed by
the Mallinckrodt Group immediately after the Effective Time shall be converted to a performance unit award relating to a number of Mallinckrodt Ordinary Shares determined by multiplying the number of Covidien Ordinary Shares with respect to the
Covidien PSU award by the Mallinckrodt Share Ratio, which product shall be rounded down to the nearest 

  
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whole number of units with a cash payment for any fractional units to be made as soon as administratively practicable after the Effective Time but in any event no later than September 1,
2013 (the “Mallinckrodt PSUs”); provided, however, that for any Covidien Group Employee who has satisfied the requirements for Normal Retirement (as defined in the applicable terms and conditions) as of the Effective
Time, such product shall be subject to regular rounding in lieu of a cash payment for fractional units. The respective performance period for each award of Mallinckrodt PSUs shall cease as of the Effective Time and the performance multiplier for
such award shall be determined by Covidien’s total shareholder return throughout the performance period, as determined pursuant to the amended terms and conditions of the applicable award. To the extent that there is any vesting of performance
units under the applicable amended terms and conditions for Mallinckrodt PSUs, such vesting shall be subject to the Mallinckrodt Group Employee’s continued employment through the last day of the initial three-year performance period as in
effective immediately prior to the Effective Time. Other than with respect to the foregoing, Mallinckrodt PSUs shall be subject to the same terms and conditions after the Distribution as the terms and conditions applicable to the corresponding
Covidien PSUs immediately prior to the Distribution. 
 Section 4.5 Liabilities for Settlement of Awards.

 (a) Settlement of Covidien Options. Covidien shall be responsible for all Liabilities associated with Covidien
Options (regardless of the holder of such awards) including any option exercise, share delivery, registration or other obligations related to the exercise of the Covidien Options. Covidien shall be responsible for all Liabilities associated with
amounts payable to Covidien Group Employees or Mallinckrodt Group Employees who hold UK approved options or options through the SAYE; provided, however, that Mallinckrodt shall be responsible for paying to each Mallinckrodt Group
Employee, through the payroll of the applicable Mallinckrodt Entity, all compensatory payments attributable to the non-conversion of UK approved options and SAYE options in connection with the Distribution upon receipt from Covidien of a list of
Mallinckrodt Group Employees eligible to receive such compensatory payment and the amount payable to such Mallinckrodt Group Employee, listed individually, with such amount to be paid no later than the second regularly scheduled pay period that
occurs after Covidien provides such list and amounts. Covidien (or any Covidien Entity) shall reimburse to Mallinckrodt (or the applicable Mallinckrodt Entity) the total amount payable to Mallinckrodt Group Employees pursuant to the previous
sentence within sixty (60) days after receipt of an invoice from Mallinckrodt requesting reimbursement for such payment. 

(b) Settlement of Outstanding Covidien RSUs. Covidien shall be responsible for all Liabilities associated with Covidien
RSUs including any share delivery, registration or other obligations related to the settlement of the Covidien RSUs. 
 (c)
Settlement of Outstanding Covidien PSUs. Covidien shall be responsible for all Liabilities associated with Covidien PSUs, including any share delivery, registration or other obligations related to the settlement of Covidien PSUs.

 (d) Settlement of Mallinckrodt Options. Mallinckrodt shall be responsible for all Liabilities associated with
Mallinckrodt Options (regardless of the holder of such awards) including any option exercise, share delivery, registration or other obligations related to the exercise of the Mallinckrodt Options. 

  
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 (e) Settlement of Outstanding Mallinckrodt RSUs. Mallinckrodt shall be
responsible for all Liabilities associated with Mallinckrodt RSUs including any share delivery, registration or other obligations related to the settlement of the Mallinckrodt RSUs. 

(f) Settlement of Outstanding Mallinckrodt PSUs. Mallinckrodt shall be responsible for all Liabilities associated with
Mallinckrodt PSUs, including any share delivery, registration or other obligations related to the settlement of Mallinckrodt PSUs. 
 Section 4.6 Annual Incentive Plan Payments. 
 (a) Not later than the
Effective Time, Mallinckrodt shall, or shall cause another Mallinckrodt Entity to, assume or adopt a plan (the “Mallinckrodt Annual Incentive Plan”) for the fiscal year in which the Distribution occurs that will contain terms that
are identical to the terms provided to Mallinckrodt Group Employees under the Covidien Annual Incentive Plan immediately prior to the Effective Time, subject to Mallinckrodt’s right to amend such plan after the Effective Time in accordance with
the terms thereof. 
 (b) For the avoidance of doubt, (i) the Covidien Group shall be solely responsible for funding,
paying, and discharging all obligations relating to any annual incentive bonus awards that any Covidien Group Employee is eligible to receive under any Covidien annual incentive plan with respect to payments made beginning at or after the Effective
Time, and no Mallinckrodt Entity shall have any obligations with respect thereto; and (ii) the Mallinckrodt Group shall be solely responsible for funding, paying, and discharging all obligations relating to any annual incentive bonus awards
that any Mallinckrodt Group Employee is eligible to receive under any Mallinckrodt Group annual incentive plan or other short-term incentive compensation plan with respect to payments made at or after the Effective Time, including, but not limited
to, the Mallinckrodt Annual Incentive Plan, and no Covidien Entity shall have any obligations with respect thereto. 

Section 4.7 Equity Plan Approval. Covidien and Mallinckrodt shall take all actions as may be necessary or advisable to adopt
and obtain shareholder approval of any stock-based employee benefit plans of Mallinckrodt (and the grants of adjusted awards over Covidien shares by Covidien and of awards over Mallinckrodt shares by Mallinckrodt) in order to satisfy the requirement
of Rule 16b-3 under the Exchange Act, and the applicable rules and regulations of the NYSE. 
 ARTICLE V 

U.S. QUALIFIED RETIREMENT PLANS 
 Section 5.1 Pension Plans. 
 (a) Mallinckrodt Pension
Plans. 
 (i) To the extent not completed before the Effective Time, effective as of the Distribution
Date, a Mallinckrodt Entity shall assume sponsorship of and be solely 

  
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responsible for the management and administration of, and except as otherwise provided below, be responsible for all Assets and Liabilities under the pension plans listed in Schedule
5.1(a) (the “Mallinckrodt Pension Plans”). Mallinckrodt and Covidien shall reasonably cooperate with each other in order to facilitate all actions contemplated by this Section 5.1(a). Nothing contained in this
Agreement shall alter in any way the right of Mallinckrodt, subsequent to the Distribution Date, to amend or terminate any of the Mallinckrodt Pension Plans in accordance with its terms and applicable Law. 

(ii) Effective as of the Distribution Date, a Mallinckrodt Entity shall be solely responsible for the adjudication of any
claims filed by Mallinckrodt Group Employees or Former Mallinckrodt Group Employees under a Mallinckrodt Pension Plan including, but not limited to, claims filed before the Distribution Date under such plans as in effect as of the date such claim
was filed, provided that (A) the claim relates to Assets or Liabilities assumed by Mallinckrodt under Section 5.1(a)(i); (B) the claim has not been finally adjudicated by Covidien on the day immediately preceding the
Distribution Date; and (C) under the applicable claims procedure, the applicable Mallinckrodt Entity’s plan administrator or other authorized person or committee will have at least a sixty (60)-day period after the Distribution Date to
respond to such claim. Covidien shall be solely responsible for the adjudication of any claim that satisfies subsections (A) and (B) but not (C); provided, however, that if Covidien’s response to such claim does not
finally adjudicate the claim, Covidien shall immediately transfer administration of such claim to Mallinckrodt for final adjudication upon sending its response to the claimant. 

(b) Covidien Pension Plan. Following the Distribution Date, a Covidien Entity shall retain sole responsibility for all
benefits accrued prior to the Distribution Date, Assets and Liabilities for the Covidien Pension Plan and Mallinckrodt shall have no obligation with respect thereto. Nothing contained in this Agreement shall alter in any way the right of Covidien,
subsequent to the Distribution Date, to amend or terminate the Covidien Pension Plan in accordance with its terms and applicable Law. 
 (c) To the extent it is determined by mutual agreement of the Parties following the Distribution Date that any assets relating to the Mallinckrodt Pension Plans or the Covidien Pension Plan either
(1) were not transferred to the master trust established on behalf of the Mallinckrodt Pension Plans or Covidien Pension Plan, respectively, by the Distribution Date or (2) were acquired after the Distribution Date by a Party’s master
trust and such assets should have been or should be allocated to the other Party’s master trust, the Parties shall cooperate to ensure that such assets are allocated to the appropriate Party’s master trust as soon as practicable following
such determination. The determination of which Party’s trust shall be the appropriate trust for assets shall be governed by ERISA and shall be made by the named fiduciaries for the respective plans. 

Section 5.2 Defined Contribution Plans. 
 (a) Mallinckrodt Savings Plans. 
 (i) To the extent
not completed before the Effective Time, effective as of the Distribution Date, a Mallinckrodt Entity shall assume sponsorship of and be solely 

  
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responsible for the management and administration of all Assets and Liabilities under the Mallinckrodt 401(k) Plan and any other defined contribution plan in the U.S. covering Mallinckrodt Group
Employees or Former Mallinckrodt Group Employees as of the Distribution Date and listed in Schedule 5.2(a) (the “Mallinckrodt Savings Plans”). Nothing contained in this Agreement shall alter in any way the right of
Mallinckrodt, subsequent to the Distribution Date, to amend or terminate the Mallinckrodt Savings Plans in accordance with its terms and applicable Law. 
 (ii) Effective as of the Distribution Date, a Mallinckrodt Entity shall be solely responsible for the adjudication of claims filed by Mallinckrodt Group Employees or Former Mallinckrodt Group Employees
under a Mallinckrodt Savings Plan, including, but not limited to, claims filed before the Distribution Date under such plans as in effect on the date such claim was filed provided that (A) the claim relates to Assets or Liabilities assumed by
Mallinckrodt under this Section 5.2(a); (B) the claim has not been finally adjudicated by Covidien on the day immediately preceding the Distribution Date; and (C) under the applicable claims procedure, the applicable
Mallinckrodt Entity’s plan administrator or other authorized person or committee will have at least a sixty (60)-day period after the Distribution Date to respond to such claim. Covidien shall be solely responsible for the adjudication of any
claim that satisfies subsections (A) and (B) but not (C); provided, however, that if Covidien’s response to such claim does not finally adjudicate the claim, Covidien shall immediately transfer administration of such
claim to Mallinckrodt for final adjudication upon sending its response to the claimant. 
 (b) Covidien Retained Savings
Plans. Following the Distribution Date, a Covidien Entity shall retain sole responsibility for all benefit obligations incurred prior to the Distribution Date and Liabilities under the Covidien 401(k) Plan and the Covidien Retirement Savings
and Investment Plan for Puerto Rico Employees and any other defined contribution plan in the U.S. covering Covidien Group Employees (the “Covidien Retained Savings Plans”). Nothing contained in this Agreement shall alter in any way
the right of Covidien, subsequent to the Distribution Date, to amend or terminate a Covidien Retained Savings Plan in accordance with its terms and applicable Law. 
 Section 5.3 Employee Benefit Plan Governance Structure. To the extent not completed before the Effective Time, effective as of the Distribution Date, a Mallinckrodt Entity shall take all such
actions as are necessary to (a) establish an employee benefit plan governance structure that includes, at a minimum, an investment committee and administrative committee authorized to serve as named fiduciaries of any Benefit Plan sponsored or
maintained by a Mallinckrodt Entity that is governed by ERISA; (b) appoint members of such investment and administrative committees; and (c) establish a new trust or trusts to hold tax-qualified retirement plan assets as required by ERISA
and applicable Law. Effective as of the Effective Time, Mallinckrodt shall assume and shall be solely responsible for all fiduciary responsibilities pursuant to ERISA and applicable Law that are associated with the Mallinckrodt Savings Plans and
Mallinckrodt Pension Plans. 

  
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 ARTICLE VI 
 U.S. NON-QUALIFIED DEFERRED COMPENSATION PLANS 
 Section 6.1 Mallinckrodt
Non-Qualified Deferred Compensation Plans. 
 (a) To the extent not completed before the Effective Time, effective as of the
Distribution Date, a Mallinckrodt Entity shall assume sponsorship of and be solely responsible for the management, administration and satisfaction of all Assets and Liabilities under any non-qualified deferred compensation plan in the U.S.
maintained by Covidien or any Subsidiary of Covidien and each other Person that is controlled directly or indirectly by Covidien (including, to the extent applicable, any member of the Mallinckrodt Group) as of the day prior to the Distribution
Date, other than the Covidien Non-qualified Plans (the “Mallinckrodt Deferred Compensation Plans”). This Agreement hereby authorizes the transfer of sponsorship of any Mallinckrodt Deferred Compensation Plan that has not been
transferred to a Mallinckrodt Entity by the Distribution Date, with Covidien authorizing the transfer of sponsorship on behalf of the applicable Covidien Entity and Mallinckrodt authorizing the acceptance of plan sponsorship on behalf of the
applicable Mallinckrodt Entity. Nothing contained in this Agreement shall alter in any way the right of Mallinckrodt, subsequent to the Distribution Date, to amend or terminate a Mallinckrodt Deferred Compensation Plan in accordance with its terms
and applicable Law. 
 (b) All elections by Mallinckrodt Group Employees, and Former Mallinckrodt Group Employees that were in
effect immediately prior to the Distribution Date shall continue in effect from and after the Distribution Date until a new election that by its terms supersedes the prior election is made by such Mallinckrodt Group Employee or Former Mallinckrodt
Group Employee in accordance with the terms of the applicable Mallinckrodt Deferred Compensation Plan and consistent with the provisions of Code Section 409A, to the extent applicable. 

(c) As of the Distribution Date, a Mallinckrodt Entity shall be solely responsible for the adjudication of claims filed by Mallinckrodt
Group Employees or Former Mallinckrodt Group Employees under a Mallinckrodt Deferred Compensation Plan before the Distribution Date, provided that (A) the claim relates to Assets or Liabilities assumed by Mallinckrodt under this
Section 6.1; (B) the claim has not been finally adjudicated by Covidien as of the day immediately preceding the Distribution Date; and (C) under the applicable claims procedure Mallinckrodt’s plan administrator or other
authorized person or committee will have at least a sixty (60)-day period after the Distribution Date to respond to such claim. Covidien shall be solely responsible for the adjudication of any claim that satisfies subsections (A) and
(B) but not (C); provided, however, that if Covidien’s response to such claim does not finally adjudicate the claim, Covidien shall immediately transfer administration of such claim to Mallinckrodt for final adjudication upon
sending its response to the claimant. 
 (d) Payments to Mallinckrodt Group Employees and Former Mallinckrodt Group Employees
under a Mallinckrodt Deferred Compensation Plan shall be made by a Mallinckrodt Entity as determined in the sole discretion of Mallinckrodt. 
 Section 6.2 Covidien Non-Qualified Deferred Compensation Plan. Following the Distribution Date, Covidien shall retain sole responsibility for the satisfaction of all Liabilities under Covidien
Non-qualified Plans and all 

  
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Liabilities with respect to non-qualified deferred compensation plan benefits for Covidien Group Employees and Former Covidien Group Employees. 

Section 6.3 Participation; Distributions. Covidien and Mallinckrodt acknowledge that none of the transactions contemplated by
the Separation Agreement or any Ancillary Agreement will trigger a payment or distribution of compensation under any of the Covidien Non-qualified Plans or Mallinckrodt Deferred Compensation Plans for any participant and, consequently, that the
payment or distribution of any compensation to which such participant is entitled under any of the Covidien Non-qualified Plans or Mallinckrodt Deferred Compensation Plans will occur upon such participant’s separation from service from the
Mallinckrodt Group or at such other time as provided in the applicable Mallinckrodt Deferred Compensation Plan or participant’s deferral election. 
 ARTICLE VII 
 U.S. HEALTH, WELFARE AND FRINGE BENEFIT PLANS 

Section 7.1 Health Plans. 
 (a) Effective as of January 1, 2013, a Mallinckrodt Entity established or caused to be established the Mallinckrodt Health Plan. After the Distribution Date, a Mallinckrodt Entity shall be solely
responsible for the management and administration of the Mallinckrodt Health Plan, including compliance with COBRA continuation coverage requirements, and solely responsible for the payment of all employer-related costs associated with establishing,
administering and maintaining the Mallinckrodt Health Plan, and for the collection and remittance of participant contributions and premium payments. 
 Except as provided below, a Mallinckrodt Entity shall be solely responsible for the adjudication of any claims filed by a Mallinckrodt Group Employee or Former Mallinckrodt Group Employee before the
Distribution Date under the Mallinckrodt Health Plan. Notwithstanding the previous sentence, a Covidien Entity shall be solely responsible for the adjudication of any claims filed by a Mallinckrodt Group Employee or Former Mallinckrodt Group
Employee under the Mallinckrodt Health Plan before the Distribution Date that (A) has not been finally adjudicated by a Covidien Entity on the day immediately preceding the Distribution Date; and (B) under the applicable claims procedure,
the applicable Covidien Entity’s plan administrator or other authorized person or committee will have a less than sixty (60)-day period after the Distribution Date to respond to such claim. Notwithstanding the previous sentence, if
Covidien’s response to such claim does not finally adjudicate the claim, Covidien shall immediately upon sending its response to the claimant transfer administration of such claim to Mallinckrodt for final adjudication. Any determination made
or settlements entered into by a Covidien Entity prior to the Distribution Date with respect to claims incurred under the Mallinckrodt Health Plan by Mallinckrodt Group Employees or Former Mallinckrodt Group Employees shall be final and binding.

 Section 7.2 Section 125 Plans. Effective as of January 1, 2013, a Mallinckrodt Entity established or
caused to be established a Mallinckrodt Section 125 Plan. After the Distribution Date, a Mallinckrodt Entity shall be solely responsible for the management and administration of the Mallinckrodt Section 125 Plan. 

  
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 Section 7.3 Fringe Benefits. Effective as of the Distribution Date and to the
extent it is not part of the Mallinckrodt Health Plan, Mallinckrodt shall be responsible for establishing (as necessary) and maintaining its own U.S. fringe benefit plans, policies and arrangements, including any employee assistance program,
educational assistance program, adoption assistance program and any other fringe benefit plans, programs and arrangements. Mallinckrodt shall be solely responsible for the management and administration of and assume financial and administrative
Liability and all related obligations and responsibilities with respect to claims for such fringe benefits incurred by Mallinckrodt Group Employees and Former Mallinckrodt Group Employees (but not paid by Covidien) prior to the Distribution Date.

 Section 7.4 Workers’ Compensation. With respect to claims for workers’ compensation in the U.S.,
(a) the Covidien Group shall be responsible for claims in respect of Covidien Group Employees and Former Covidien Group Employees, whether occurring prior to, on or following the Distribution Date and (b) the Mallinckrodt Group shall be
responsible for all claims in respect of Mallinckrodt Group Employees and Former Mallinckrodt Group Employees occurring on or following the Distribution Date. For purposes of this Section 7.4, claims shall be deemed to be incurred upon
the occurrence of the injury giving rise to such claim. 
 Section 7.5 Indemnification. Mallinckrodt agrees to hold
Covidien harmless with respect to any Liabilities related to actions taken to establish any Benefit Plans and related third party administrative agreements prior to the Distribution Date. 

Section 7.6 Termination of Participation. Except as otherwise provided under this Agreement or in any Transition
Services Agreements and to the extent that Mallinckrodt Group Employees have not previously ceased participating in a Covidien Benefit Plan, effective as of the Effective Time, Mallinckrodt Group Employees shall cease participating in any Covidien
Benefit Plan and shall, thereafter, be ineligible for benefits under any Covidien Benefit Plan. 
 ARTICLE VIII 

NON-U.S. EMPLOYEES 
 To the extent not completed before the Effective Time, as of the Distribution Date, a Mallinckrodt Entity shall take such steps as are necessary or appropriate to adopt and provide benefit plan coverage
to Mallinckrodt Group Employees working in Non-U.S. jurisdictions that is similar to the benefit plan coverage provided by a Covidien Entity immediately prior to the date that such Mallinckrodt Entity provides such benefit plan coverage;
provided, however, that given the limited number of Mallinckrodt Group Employees in certain jurisdictions and the practical limitations of establishing similar benefit plan coverage in such jurisdictions, such arrangements may be
different than benefit plan coverage provided by a Covidien Entity and may be determined by Mallinckrodt in its sole discretion. Mallinckrodt shall indemnify Covidien for any and all claims made by any Mallinckrodt Group Employee that relates to the
transition of employment in Non-U.S. jurisdictions in connection with the Distribution and resulting changes to benefit plan coverage. 

  
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 ARTICLE IX 
 GENERAL PROVISIONS 
 Section 9.1 Preservation of Rights to Amend. The
rights of each Covidien Entity and each Mallinckrodt Entity to amend, waive, or terminate any plan, arrangement, agreement, program, or policy referred to herein shall not be limited in any way by this Agreement. 

Section 9.2 Fiduciary Matters. Covidien and Mallinckrodt each acknowledges that actions required to be taken pursuant to this
Agreement may be subject to fiduciary duties or standards of conduct under ERISA or other applicable Law, and no Party shall be deemed to be in violation of this Agreement if it fails to comply with any provisions hereof based upon its good-faith
determination (as supported by advice from counsel experienced in such matters) that to do so would violate such a fiduciary duty or standard. Each Party shall be responsible for taking such actions as are deemed necessary and appropriate to comply
with its own fiduciary responsibilities and shall fully release and indemnify the other Party for any Liabilities caused by the failure to satisfy any such responsibility. 
 Section 9.3 Entire Agreement. This Agreement, together with the documents referenced herein (including the Separation Agreement, the Ancillary Agreements and the plans and agreements
referenced herein), constitutes the entire agreement and understanding among the Parties with respect to the subject matter hereof and supersedes all prior written and oral and all contemporaneous oral agreements and understandings with respect to
the subject matter hereof. To the extent any provision of this Agreement conflicts with the provisions of the Separation Agreement, the provisions of this Agreement shall be deemed to control with respect to the subject matter hereof. 

Section 9.4 Binding Effect; No Third-Party Beneficiaries; Assignment. This Agreement shall inure to the benefit of and be
binding upon the Parties and their respective successors and permitted assigns. Except as otherwise expressly provided in this Agreement, this Agreement is solely for the benefit of the Parties and should not be deemed to confer upon any third
parties any remedy, claim, Liability, reimbursement, cause of action, or other right in excess of those existing without reference to this Agreement. Nothing in this Agreement is intended to amend any employee benefit plan or affect the applicable
plan sponsor’s right to amend or terminate any employee benefit plan pursuant to the terms of such plan. The provisions of this Agreement are solely for the benefit of the Parties, and no current or former Employee, officer, director, or
independent contractor or any other individual associated therewith shall be regarded for any purpose as a third-party beneficiary of this Agreement. This Agreement may not be assigned by any Party, except with the prior written consent of the other
Parties. 
 Section 9.5 Amendment. No provisions of this Agreement shall be deemed waived, amended, supplemented or
modified by any party, unless such waiver, amendment, supplement or modification is in writing and signed by the authorized representative of the party against whom it is sought to enforce such waiver, amendment, supplement or modification.

  
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 Section 9.6 Remedies Cumulative. All rights and remedies existing under this
Agreement or the Schedules attached hereto are cumulative to, and not exclusive of, any rights or remedies otherwise available. 

Section 9.7 Notices. Unless otherwise expressly provided herein, all notices, claims, certificates, requests, demands and
other communications hereunder shall be made or given in accordance with the provisions of Section 11.5 of the Separation Agreement. 
 Section 9.8 Counterparts. This Agreement, including the Schedules hereto and the other documents referred to herein, may be executed in multiple counterparts, each of which when executed shall
be deemed to be an original but all of which together shall constitute one and the same agreement. 
 Section 9.9
Severability. If any provision of this Agreement or any Ancillary Agreement or the application thereof to any Person or circumstance is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining
provisions hereof or thereof, or the application of such provision to Persons or circumstances or in jurisdictions other than those as to which it has been held invalid or unenforceable, shall remain in full force and effect and shall in no way be
affected, impaired or invalidated thereby. Upon such determination, the parties shall negotiate in good faith in an effort to agree upon such a suitable and equitable provision to effect the original intent of the parties. 

Section 9.10 Governing Law. The construction, interpretation and performance of this Agreement shall be governed and
construed according to the laws of the State of New York, without regard to conflicts of laws principles (other than Section 5-1401 and Section 5-1402 of the General Obligations Law of the State of New York). 

Section 9.11 Dispute Resolution. The dispute resolution procedures set forth in Article VIII of the Separation
Agreement shall apply to any dispute, controversy or claim (whether sounding in contract, tort or otherwise) that arises out of or relates to this Agreement, any breach or alleged breach hereof, the transactions contemplated hereby (including all
actions taken in furtherance of the transactions contemplated hereby on or prior to the date hereof), or the construction, interpretation, enforceability, or validity hereof. 
 Section 9.12 Performance. Covidien will cause to be performed, and hereby guarantees the performance of, all actions, agreements and obligations set forth in this Agreement to be performed by
any member of the Covidien Group. Mallinckrodt will cause to be performed, and hereby guarantees the performance of, all actions, agreements and obligations set forth in this Agreement to be performed by any member of the Mallinckrodt Group. Each
party (including its permitted successors and assigns) further agrees that it will (a) give timely notice of the terms, conditions and continuing obligations contained in this Section 9.12 to all of the other members of its Group,
and (b) cause all of the other members of its Group not to take any action or fail to take any such action inconsistent with such party’s obligations under this Agreement or the transactions contemplated hereby. 

  
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 Section 9.13 Construction. This Agreement shall be construed as if jointly
drafted by the Parties and no rule of construction or strict interpretation shall be applied against any Party. 

Section 9.14 Effect if Distribution Does Not Occur. Notwithstanding anything in this Agreement to the contrary, if the
Separation Agreement is terminated prior to the Effective Time, this Agreement shall be of no further force and effect. 

  
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 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed in their names by
a duly authorized officer as of the date first written above. 
  

			
	COVIDIEN PLC
		
	By:	 	 /s/ John W. Kapples

		 	Name: John W. Kapples
		 	Title: Vice President and Secretary
	
	MALLINCKRODT PLC
		
	By:	 	 /s/ Matthew K. Harbaugh

		 	Name: Matthew K. Harbaugh
		 	Title: Director

 [Signature Page to Employee Matters Agreement] 

 Schedule 5.1(a) 
 LIST OF MALLINCKRODT PENSION PLANS 
 Mallinckrodt Inc. Retirement Plan 

Mallinckrodt Inc. Cash Balance Pension Plan 

Mallinckrodt St. Louis Union Pension Plan 

Mallinckrodt Greenville Union Pension Plan 

Liebel-Flarsheim Salaried Pension Plan 

Liebel-Flarsheim Union Pension Plan 

 Schedule 5.2(a) 
 LIST OF MALLINCKRODT SAVINGS PLANS 
 Mallinckrodt Pharmaceuticals Savings and Investment
Plan 
 CNS Therapeutics 401(k) Savings PlanEX-10.3

 Exhibit 10.3 
 EXECUTION VERSION 
 TRANSITION SERVICES AGREEMENT 

BY AND BETWEEN 

COVIDIEN PLC 

AND 

MALLINCKRODT PLC 

DATED AS OF JUNE 28, 2013 

 TABLE OF CONTENTS 

 

							
	 	  	Page	 
	ARTICLE I	  
	DEFINITIONS	  
	
	ARTICLE II	  
	SERVICES, DURATION AND SERVICES MANAGERS	  
			
	 Section 2.01.
	 	 Services
	  	 	3	  
	 Section 2.02.
	 	 Duration of Services
	  	 	3	  
	 Section 2.03.
	 	 Additional Unspecified Services
	  	 	3	  
	 Section 2.04.
	 	 New Services
	  	 	5	  
	 Section 2.05.
	 	 Services Not Included
	  	 	5	  
	 Section 2.06.
	 	 Transition Services Managers
	  	 	5	  
	 Section 2.07.
	 	 Personnel
	  	 	6	  
	
	ARTICLE III	  
	COVIDIEN MATERIALS	  
			
	 Section 3.01.
	 	 Corporate Policies
	  	 	7	  
	 Section 3.02.
	 	 Limitation on Rights and Obligations with Respect to the Covidien Materials
	  	 	7	  
	
	ARTICLE IV	  
	ADDITIONAL ARRANGEMENTS	  
			
	 Section 4.01.
	 	 Software and Software Licenses
	  	 	8	  
	 Section 4.02.
	 	 Covidien Computer-Based and Other Resources
	  	 	9	  
	 Section 4.03.
	 	 Access to Facilities
	  	 	10	  
	 Section 4.04.
	 	 Cooperation
	  	 	10	  
	 Section 4.05.
	 	 Data Protection
	  	 	10	  
	
	ARTICLE V	  
	COSTS AND DISBURSEMENTS	  
			
	 Section 5.01.
	 	 Costs and Disbursements
	  	 	10	  
	 Section 5.02.
	 	 Tax Matters
	  	 	11	  
	 Section 5.03.
	 	 No Right to Set-Off
	  	 	13	  
	
	ARTICLE VI	  
	STANDARD FOR SERVICE	  
			
	 Section 6.01.
	 	 Standard for Service
	  	 	13	  
	 Section 6.02.
	 	 Disclaimer of Warranties
	  	 	13	  
	 Section 6.03.
	 	 Compliance with Laws and Regulations
	  	 	14	  

  
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	ARTICLE VII	  
	LIMITED LIABILITY AND INDEMNIFICATION	  
			
	 Section 7.01.
	 	 Consequential and Other Damages
	  	 	14	  
	 Section 7.02.
	 	 Limitation of Liability
	  	 	14	  
	 Section 7.03.
	 	 Obligation To Reperform; Liabilities
	  	 	14	  
	 Section 7.04.
	 	 Release and Recipient Indemnity
	  	 	15	  
	 Section 7.05.
	 	 Provider Indemnity
	  	 	15	  
	 Section 7.06.
	 	 Indemnification Procedures
	  	 	15	  
	 Section 7.07.
	 	 Liability for Payment Obligations
	  	 	15	  
	 Section 7.08.
	 	 Exclusion of Other Remedies
	  	 	15	  
	 Section 7.09.
	 	 Confirmation
	  	 	15	  
	
	ARTICLE VIII	  
	TERM AND TERMINATION	  
			
	 Section 8.01.
	 	 Term and Termination
	  	 	15	  
	 Section 8.02.
	 	 Effect of Termination
	  	 	17	  
	 Section 8.03.
	 	 Force Majeure
	  	 	17	  
	
	ARTICLE IX	  
	GENERAL PROVISIONS	  
			
	 Section 9.01.
	 	 No Agency
	  	 	18	  
	 Section 9.02.
	 	 Subcontractors
	  	 	18	  
	 Section 9.03.
	 	 Treatment of Confidential Information
	  	 	18	  
	 Section 9.04.
	 	 Further Assurances
	  	 	19	  
	 Section 9.05.
	 	 Dispute Resolution
	  	 	19	  
	 Section 9.06.
	 	 Notices
	  	 	19	  
	 Section 9.07.
	 	 Severability
	  	 	21	  
	 Section 9.08.
	 	 Entire Agreement
	  	 	21	  
	 Section 9.09.
	 	 No Third-Party Beneficiaries
	  	 	21	  
	 Section 9.10.
	 	 Governing Law
	  	 	21	  
	 Section 9.11.
	 	 Amendment
	  	 	21	  
	 Section 9.12.
	 	 Rules of Construction
	  	 	22	  
	 Section 9.13.
	 	 Counterparts
	  	 	22	  
	 Section 9.14.
	 	 Assignability
	  	 	22	  
	 Section 9.15.
	 	 Public Announcements
	  	 	23	  
	 Section 9.16.
	 	 Non-Recourse
	  	 	23	  

  

					
	 SCHEDULE A Covidien Services
	  	 	A-1	  
	 SCHEDULE B Mallinckrodt Services
	  	 	B-1	  
	 EXHIBIT I Services Managers
	  	 	I-1	  

  
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 TRANSITION SERVICES AGREEMENT 

This TRANSITION SERVICES AGREEMENT, dated as of June 28, 2013 (this “Agreement”), is by and between Covidien plc,
an Irish public limited company (“Covidien”), and Mallinckrodt plc, an Irish public limited company (“Mallinckrodt”). Unless otherwise defined in this Agreement, all capitalized terms used in this Agreement shall
have the meaning set forth in the Separation and Distribution Agreement, dated as of the date hereof, by and between Covidien and Mallinckrodt (as amended, modified or supplemented from time to time in accordance with its terms, the
“Separation Agreement”). 
 RECITALS 

WHEREAS, the board of directors of Covidien has determined that it is in the best interests of Covidien and its shareholders that the
Mallinckrodt Business be operated by a newly incorporated publicly traded company; 
 WHEREAS, Covidien and Mallinckrodt have
entered into the Separation Agreement; 
 WHEREAS, in order to facilitate and provide for an orderly transition under the
Separation Agreement, the Parties (as defined herein) desire to enter into this Agreement to set forth the terms and conditions pursuant to which each of the Parties shall provide to the other the Services (as defined herein) for a transitional
period; and 
 WHEREAS, the Separation Agreement requires execution and delivery of this Agreement by Covidien and Mallinckrodt
on or prior to the Distribution Date. 
 NOW, THEREFORE, in consideration of the foregoing and the mutual agreements contained
in this Agreement, the Parties, intending to be legally bound, hereby agree as follows: 
 ARTICLE I 

DEFINITIONS 
 The following capitalized terms used in this Agreement shall have the meanings set forth below: 
 “Additional Services” shall have the meaning set forth in Section 2.03(a). 
 “Agreement” shall have the meaning set forth in the Preamble. 
 “Confidential Information” shall have the meaning set forth in Section 9.03(a). 
 “Covidien” shall have the meaning set forth in the Preamble. 
 “Covidien Business” shall mean the businesses and operations of the Covidien Group other than the Mallinckrodt Business. 

“Covidien Local Service Manager” shall have the meaning set forth in Section 2.06(a). 

“Covidien Materials” shall have the meaning set forth in Section 3.01(a). 

 “Covidien Services” shall have the meaning set forth in
Section 2.01. 
 “Covidien Services Manager” shall have the meaning set forth in
Section 2.06(a). 
 “Governmental Requirements” shall have the meaning set forth in the Tax Matters
Agreement. 
 “Interest Payment” shall have the meaning set forth in Section 5.01(d). 

“Mallinckrodt” shall have the meaning set forth in the Preamble. 

“Mallinckrodt Local Service Manager” shall have the meaning set forth in Section 2.06(b). 

“Mallinckrodt Services” shall have the meaning set forth in Section 2.01. 

“Mallinckrodt Services Manager” shall have the meaning set forth in Section 2.06(b) 

“New Services” shall have the meaning set forth in Section 2.04(a). 

“Party” shall mean Covidien and Mallinckrodt individually, and “Parties” means Covidien and
Mallinckrodt collectively, and, in each case, their permitted successors and assigns. 
 “Provider” shall mean
the Party or its Subsidiary or Affiliate providing a Service under this Agreement. 
 “Provider Indemnified
Party” shall have the meaning set forth in Section 7.04. 
 “Recipient” shall mean the
Party or its Subsidiary or Affiliate to whom a Service under this Agreement is being provided. 
 “Recipient Indemnified
Party” shall have the meaning set forth in Section 7.05. 
 “Reimbursement Charges” shall
have the meaning set forth in Section 5.01(c). 
 “Schedule(s)” shall have the meaning set forth in
Section 2.02. 
 “Separation Agreement” shall have the meaning set forth in the Preamble.

 “Service Baseline Period” shall have the meaning set forth in Section 2.03(c). 

“Service Charges” shall have the meaning set forth in Section 5.01(a). 

“Service Extension” shall have the meaning set forth in Section 8.01(c). 

“Service Increases” shall have the meaning set forth in Section 2.03(b). 

“Services” shall have the meaning set forth in Section 2.01. 

  
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 “Taxes” shall have the meaning set forth in the Tax Matters Agreement.

 “Transfer Taxes” shall have the meaning set forth in Section 5.02(a). 

“VAT” shall have the meaning set forth in Section 5.02(a). 

ARTICLE II 

SERVICES, DURATION AND SERVICES MANAGERS 
 Section 2.01. Services. Subject to the terms and conditions of this Agreement, (a) Covidien shall provide or cause to be provided to the Mallinckrodt Group the services listed on
Schedule A to this Agreement (the “Covidien Services”) and (b) Mallinckrodt shall provide or cause to be provided to the Covidien Group the services listed on Schedule B to this Agreement (the
“Mallinckrodt Services,” and, collectively with the Covidien Services, any Additional Services, any Service Increases and any New Services, the “Services”). For the avoidance of doubt, Services provided in different
regions or countries (as indicated by such Services being listed on different subparts of the Schedules hereto) shall be considered separate Services hereunder, notwithstanding that such Services may be similar in nature. All of the Services shall
be for the sole use and benefit of the respective Recipient and its respective Party. 
 Section 2.02. Duration of
Services. Subject to the terms of this Agreement, each of Covidien and Mallinckrodt shall provide or cause to be provided to the respective Recipients each Service until the earlier to occur of, with respect to each such Service, (i) the
expiration of the term for such Service (or, subject to the terms of Section 8.01(c), the expiration of any Service Extension) as set forth on Schedule A or Schedule B (each a “Schedule”, and collectively,
the “Schedules”) or (ii) the date on which such Service is terminated under Section 8.01(b). 

Section 2.03. Additional Unspecified Services. (a) After the date of this Agreement, if Mallinckrodt or Covidien
(i) identifies a service that (x) the Covidien Group provided to the Mallinckrodt Group prior to the Distribution Date that Mallinckrodt reasonably needs in order for the Mallinckrodt Business to continue to operate in substantially the
same manner in which the Mallinckrodt Business operated prior to the Distribution Date, and such service was not included on Schedule A (other than because the Parties agreed such service shall not be provided), or (y) the Mallinckrodt
Group provided to the Covidien Group prior to the Distribution Date that Covidien reasonably needs in order for the Covidien Business to continue to operate in substantially the same manner in which the Covidien Business operated prior to the
Distribution Date, and such service was not included on Schedule B (other than because the Parties agreed such service shall not be provided), and (ii) provides written notice to the other Party within ten (10) days following the
date of the filing by Mallinckrodt of its first Annual Report on Form 10-K with the U.S. Securities and Exchange Commission requesting such additional services, then such other Party shall use its commercially reasonable efforts to provide such
requested additional services (such requested additional services, the “Additional Services”); provided, however, that no Party shall be obligated to provide any Additional Service if it does not, in its reasonable
judgment, have adequate resources to provide such Additional Service or if the provision of such Additional Service would significantly disrupt the operation of its businesses; and provided, further, that the Provider shall not be
required to provide any Additional Services if the Parties are unable to reach agreement on the terms thereof (including with respect to Service Charges 

  
 -3-

 
therefor). In connection with any request for Additional Services in accordance with this Section 2.03(a), the Covidien Services Manager and the Mallinckrodt Services Manager shall in
good faith negotiate the terms of a supplement to the applicable Schedule, which terms shall be consistent with the terms of, and the pricing methodology used for, similar Services provided under this Agreement. Upon the mutual written agreement of
the Parties, the supplement to the applicable Schedule shall describe in reasonable detail the nature, scope, service period(s), termination provisions and other terms applicable to such Additional Services in a manner similar to that in which the
Services are described in the existing Schedules. Each supplement to the applicable Schedule, as agreed to in writing by the Parties, shall be deemed part of this Agreement as of the date of such agreement and the Additional Services set forth
therein shall be deemed “Services” provided under this Agreement, in each case subject to the terms and conditions of this Agreement. 
 (b) After the date of this Agreement, if (i) a Recipient requests to increase, relative to historical levels prior to the Distribution Date, the volume, amount, level or frequency, as applicable, of
any Service provided by such Provider and (ii) such increase is reasonably determined by the Recipient as necessary for the Recipient to operate its businesses (such increases, the “Service Increases”), then such Provider shall
consider such request in good faith; provided, however, that no Party shall be obligated to provide any Service Increase, including because, after good-faith negotiations between the Parties, the Parties fail to reach an agreement with
respect to the terms thereof (including with respect to Service Charges therefor). In connection with any request for Service Increases in accordance with this Section 2.03(b), the Covidien Services Manager and the Mallinckrodt Services
Manager shall in good faith negotiate the terms of an amendment to the applicable Schedule, which amendment shall be consistent with the terms of, and the pricing methodology used for, the applicable Service. Each amended Schedule, as agreed to in
writing by the Parties, shall be deemed part of this Agreement as of the date of such agreement and the Service Increases set forth therein shall be deemed a part of the “Services” provided under this Agreement, in each case subject to the
terms and conditions of this Agreement. 
 (c) Notwithstanding the foregoing clauses (a) and (b), and without limiting the
remainder of this clause (c), the Provider shall not be obligated to perform or to cause to be performed any Service in a volume or quantity in any fiscal year that exceeds the highest volumes or quantities of analogous services provided to
Covidien’s applicable functional group or Subsidiary during fiscal year 2012 (without reference to the transactions contemplated by the Separation Agreement) (the “Service Baseline Period”). If the Recipient requests that the
Provider perform or cause to be performed any Service in a volume or quantity that exceeds the highest volumes or quantities of analogous services that were provided to Covidien or its applicable functional group or Subsidiary during the Service
Baseline Period, then: (i) if such higher volume or quantity results from fluctuations occurring in the ordinary course of business of the Recipient, the Provider shall use commercially reasonable efforts to provide such requested higher volume
or quantity; and (ii) if such higher volume or quantity results from any other source, including an acquisition, merger, purchase or other business combination by the Recipient, the Parties shall cooperate and act in good faith to determine
whether the Provider shall provide such requested higher volume or quantity. If the Parties agree that the Provider shall provide the requested higher volume or quantity, then Covidien and Mallinckrodt shall document such terms in an amendment to
the applicable Schedule, which amendment shall be consistent with the terms of, 

  
 -4-

 
and the pricing methodology used for, the applicable Service. Each amended subsection of Schedule A hereto, as agreed to in writing by the Parties, shall be deemed part of this Agreement as of
the date of such agreement and the volume or quantity increases set forth therein shall be deemed a part of the “Services” provided under this Agreement, in each case subject to the terms and conditions of this Agreement. 

Section 2.04. New Services. (a) From time to time during the term of this Agreement, either Party may request the other
Party to provide additional or different services which such other Party is not expressly obligated to provide under this Agreement (excluding, for the avoidance of doubt, any Additional Services or Service Increases, the “New
Services”). The Party receiving such request shall consider such request in good faith; provided, however, that no Party shall be obligated to provide any New Services, including because, after negotiations between the Parties
pursuant to Section 2.04(b), the Parties fail to reach an agreement with respect to the terms (including the Service Charges) applicable to the provision of such New Services. 

(b) In connection with any request for New Services in accordance with Section 2.04(a), the Covidien Services Manager and the
Mallinckrodt Services Manager shall in good faith (i) negotiate the applicable Service Charge and the terms of a supplement to the applicable Schedule, which supplement shall describe in reasonable detail the nature, scope, service period(s),
termination provisions and other terms applicable to such New Services, and (ii) determine any costs and expenses, including any start-up costs and expenses, that would be incurred by the Provider in connection with the provision of such New
Services, which costs and expenses shall be borne solely by the Recipient. Each supplement to the applicable Schedule, as agreed to in writing by the Parties, shall be deemed part of this Agreement as of the date of such agreement and the New
Services set forth therein shall be deemed “Services” provided under this Agreement, in each case subject to the terms and conditions of this Agreement. 
 Section 2.05. Services Not Included. It is not the intent of the Provider to render, nor of the Recipient to receive from the Provider, professional advice or opinions, whether with regard to
Tax, legal, treasury, finance, employment or other business and financial matters, technical advice, whether with regard to information technology or other matters, or the handling of or addressing environmental matters; the Recipient shall not rely
on, or construe, any Service rendered by or on behalf of the Provider as such professional advice or opinions or technical advice; and the Recipient shall seek all third-party professional advice and opinions or technical advice as it may desire or
need. 
 Section 2.06. Transition Services Managers. (a) Covidien hereby appoints and designates the individual
holding the Covidien position set forth on Exhibit I to act as its initial services manager (the “Covidien Services Manager”), who will be directly responsible for coordinating and managing the delivery of the Covidien
Services and have authority to act on Covidien’s behalf with respect to matters relating to the provision of Services under this Agreement. The Covidien Services Manager will work with the personnel of the Covidien Group to periodically address
issues and matters raised by Mallinckrodt relating to the provision of Services under this Agreement. Notwithstanding the requirements of Section 9.06, all communications from Mallinckrodt to Covidien pursuant to this Agreement regarding
routine matters involving a Service shall be made through the individual specified as the local service manager (the “Covidien Local Service Manager”) with respect to such Service on the applicable Schedule or such other individual

  
 -5-

 
as may be specified by the Covidien Services Manager in writing and delivered to Mallinckrodt by email or facsimile transmission with receipt confirmed. Covidien shall notify Mallinckrodt of the
appointment of a different Covidien Services Manager or Covidien Local Service Manager(s), if necessary, in accordance with Section 9.06. 
 (b) Mallinckrodt hereby appoints and designates the individual holding the Mallinckrodt position set forth on Exhibit I to act as its initial services manager (the “Mallinckrodt Services
Manager”), who will be directly responsible for coordinating and managing the delivery of Mallinckrodt Services and have authority to act on Mallinckrodt’s behalf with respect to matters relating to this Agreement. The Mallinckrodt
Services Manager will work with the personnel of the Mallinckrodt Group to periodically address issues and matters raised by Covidien relating to this Agreement. Notwithstanding the requirements of Section 9.06, all communications from
Covidien to Mallinckrodt pursuant to this Agreement regarding routine matters involving a Service shall be made through the individual specified as the local service manager (the “Mallinckrodt Local Service Manager”) with respect to
such Service on the applicable Schedule or as specified by the Mallinckrodt Services Manager in writing and delivered to Covidien by email or facsimile transmission with receipt confirmed. Mallinckrodt shall notify Covidien of the appointment of a
different Mallinckrodt Services Manager or Mallinckrodt Local Service Manager(s), if necessary, in accordance with Section 9.06. 
 Section 2.07. Personnel. (a) The Provider of any Service will make available to the Recipient of such Service such personnel as may be necessary to provide such Service on the
understanding that such personnel shall remain employed and/or engaged by the Provider. The Provider will have the right, in its reasonable discretion, to (i) designate which personnel it will assign to perform such Service, and
(ii) remove and replace such personnel at any time; provided, however, that any such removal or replacement shall not be the basis for any increase in any Service Charge or Reimbursement Charge payable hereunder or relieve the
Provider of its obligation to provide any Service hereunder; and provided, further, that the Provider will use its commercially reasonable efforts to limit the disruption to the Recipient in the transition of the Services to different
personnel. 
 (b) In the event that the provision of any Service by the Provider requires the cooperation and services of the
personnel of the Recipient, the Recipient will make available to the Provider such personnel (who shall be appropriately qualified for purposes of so supporting the provision of such Service by the Provider) as may be necessary for the Provider to
provide such Service on the understanding that such personnel shall remain employed and/or engaged by the Recipient. The Recipient will have the right, in its reasonable discretion, to (i) designate which personnel it will make available to the
Provider in connection with the provision of such Service, and (ii) remove and replace such personnel at any time; provided, however, that any resulting increase in costs to the Provider shall be borne by the Recipient and any
adverse effect to the provision of such Service by the Provider shall not be deemed a breach of this Agreement; and provided, further, that the Recipient will use its commercially reasonable efforts to limit the disruption to the
Provider in the transition of such personnel. If the Provider, in its reasonable discretion and following discussions with the Recipient, requests the Recipient to remove and/or replace any such personnel from their roles in respect of the Services
being provided by the Provider, the Recipient shall comply with such request. 

  
 -6-

 (c) No Provider shall be liable under this Agreement for any Liabilities incurred by the
Recipient Indemnified Parties that are primarily attributable to, or that are a consequence of, any actions or inactions of the personnel of the Recipient, except for any such actions or inactions undertaken pursuant to the direction of the
Provider. 
 (d) Nothing in this Agreement shall grant the Provider, or its employees, agents and third-party providers that are
performing the Services, the right directly or indirectly to control or direct the operations of the Recipient or any member of its Group. Such employees, agents and third-party providers shall not be required to report to the management of the
Recipient nor be deemed to be under the management or direction of the Recipient. The Recipient acknowledges and agrees that, except as may be expressly set forth herein as a Service (including any Additional Services, Service Increases or New
Services) or otherwise expressly set forth in the Separation Agreement, another Ancillary Agreement or any other applicable agreement, no Provider or any member of its Group shall be obligated to provide, or cause to be provided, any service or
goods to any Recipient or any member of its Group. 
 ARTICLE III 

COVIDIEN MATERIALS 
 Section 3.01. Corporate Policies. (a) Subject to the terms and conditions of this Agreement, Covidien grants to Mallinckrodt a non-exclusive, royalty-free, fully paid-up, worldwide
license to create or have created materials based on Covidien’s corporate policies and manuals (the “Covidien Materials”) for distribution to employees of Mallinckrodt and use such materials in the operation of the Mallinckrodt
Business in substantially the same manner as the Covidien Materials were used by Covidien prior to the Distribution. It is understood and agreed that, to the maximum extent permitted by applicable Law, Covidien makes no representation or warranty,
express or implied, as to the accuracy or completeness of any of the Covidien Materials, as to whether the Covidien Materials comply with Law, as to the non-infringement of any of the Covidien Materials or as to the suitability of any of the
Covidien Materials for use by Mallinckrodt in respect of its business, or otherwise. 
 (b) Notwithstanding the foregoing, the
text of any materials created by or for Mallinckrodt, and related to, or based upon, any of the Covidien Materials, may not contain any references to Covidien (or any of Covidien’s marks, names, trade dress, logos or other source or business
identifiers, including the Covidien Name and Covidien Marks), Covidien’s publications, Covidien’s personnel (including senior management), Covidien’s management structures or any other indication (other than the verbatim or
paraphrased reproduction of the content) that such materials are based upon any of the Covidien Materials. 
 Section 3.02.
Limitation on Rights and Obligations with Respect to the Covidien Materials. (a) Covidien shall have no obligation to (i) notify Mallinckrodt of any changes or proposed changes to any of the Covidien Materials, (ii) include
Mallinckrodt in any consideration of proposed changes to any of the Covidien Materials, (iii) provide draft changes of any of the Covidien Materials to Mallinckrodt for review and/or comment or (iv) provide Mallinckrodt with any updated
materials relating to any of the Covidien Materials. Mallinckrodt acknowledges and agrees that, except as expressly set forth above, Covidien reserves all rights (including all Intellectual Property rights) in, to and under the Covidien Materials
and no rights with respect to 

  
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ownership or use, except as otherwise expressly provided in this Agreement, shall vest in Mallinckrodt. The Parties acknowledge and agree that, subject to the exceptions specified in
Section 9.03, the Covidien Materials are the Confidential Information of Covidien. Mallinckrodt shall use at least the same degree of care to prevent and restrain the unauthorized use or disclosure of any confidential materials created
by or for Mallinckrodt that are based upon any of the Covidien Materials as it uses for its other confidential information of a like nature, but in no event less than a reasonable degree of care. Mallinckrodt will allow Covidien reasonable access to
personnel and information as reasonably necessary to determine Mallinckrodt’ s compliance with the provisions set forth above; provided, however, such access shall not unreasonably interfere with any of the business or operations
of Mallinckrodt. Subject to Section 9.05, in the event that Covidien determines that Mallinckrodt has not materially complied with some or all of its obligations with respect to any or all of the Covidien Materials, Covidien may
terminate Mallinckrodt’s rights with respect to such Covidien Materials upon written notice to Mallinckrodt and, in such case, Covidien shall be entitled to require such Covidien Materials to be returned to Covidien or destroyed and any
materials created by or for Mallinckrodt that are based upon such Covidien Materials to be destroyed (with such destruction certified by Mallinckrodt in writing to Covidien promptly after such termination). 

(b) If Mallinckrodt determines to cease to avail itself of any of the Covidien Materials, Covidien and Mallinckrodt shall cooperate in
good faith to take reasonable and appropriate actions to arrange for the return to Covidien or destruction of such Covidien Materials and to protect Covidien’s rights and interests in such Covidien Materials. 

ARTICLE IV 

ADDITIONAL ARRANGEMENTS 
 Section 4.01. Software and Software Licenses. (a) If and to the extent requested by Mallinckrodt, Covidien shall use commercially reasonable efforts to assist Mallinckrodt in its efforts
to obtain licenses (or other appropriate rights) to use, duplicate and distribute, as necessary and applicable, certain computer software necessary for Covidien to provide, and Mallinckrodt to receive, Covidien Services; provided,
however, that Covidien shall not be required to pay any fees or other payments or incur any obligations or liabilities to enable Mallinckrodt to obtain any such license or rights (except and to the extent that Mallinckrodt advances such fees
or payments to Covidien); provided, further, that Covidien shall not be required to seek broader rights or more favorable terms for Mallinckrodt than those applicable to Covidien or Mallinckrodt, as the case may be, prior to the date
of this Agreement or as may be applicable to Covidien from time to time hereafter; and, provided, further, that Mallinckrodt shall bear only those costs that relate solely and directly to obtaining such licenses (or other appropriate
rights) in the ordinary course. The Parties acknowledge and agree that there can be no assurance that Covidien’s efforts will be successful or that Mallinckrodt will be able to obtain such licenses or rights on acceptable terms or at all and,
where Covidien enjoys rights under any enterprise or site license or similar license, the Parties acknowledge that such license typically precludes partial transfers or assignments or operation of a service bureau on behalf of unaffiliated entities.
In the event that Mallinckrodt is unable to obtain such software licenses, the Parties shall work together using commercially reasonable efforts to obtain an alternative software license to allow Covidien to provide, and Mallinckrodt to receive,
such Covidien Services, and the Parties shall negotiate in good faith an amendment to the applicable Schedule to reflect any such new arrangement. 

  
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 (b) If and to the extent requested by Covidien, Mallinckrodt shall use commercially
reasonable efforts to assist Covidien in its efforts to obtain licenses (or other appropriate rights) to use, duplicate and distribute, as necessary and applicable, certain computer software necessary for Mallinckrodt to provide, and Covidien to
receive, Mallinckrodt Services; provided, however, that Mallinckrodt shall not be required to pay any fees or other payments or incur any obligations or liabilities to enable Covidien to obtain any such license or rights (except and to
the extent that Covidien advances such fees or payments to Mallinckrodt); provided, further, that Mallinckrodt shall not be required to seek broader rights or more favorable terms for Covidien than those applicable to Covidien or
Mallinckrodt, as the case may be, prior to the date of this Agreement or as may be applicable to Mallinckrodt from time to time hereafter; and, provided, further, that Covidien shall bear only those costs that relate solely and
directly to obtaining such licenses (or other appropriate rights) in the ordinary course. The Parties acknowledge and agree that there can be no assurance that Mallinckrodt’s efforts will be successful or that Covidien will be able to obtain
such licenses or rights on acceptable terms or at all and, where Mallinckrodt enjoys rights under any enterprise or site license or similar license, the Parties acknowledge that such license typically precludes partial transfers or assignments or
operation of a service bureau on behalf of unaffiliated entities. In the event that Covidien is unable to obtain such software licenses, the Parties shall work together using commercially reasonable efforts to obtain an alternative software license
to allow Mallinckrodt to provide, and Covidien to receive, such Mallinckrodt Services, and the Parties shall negotiate in good faith an amendment to the applicable Schedule to reflect any such new arrangement, which amended Schedule shall not
require Covidien to pay for any fees, expenses or costs relating to the software license that Covidien was unable to obtain pursuant to the provisions of this Section 4.01(b). 

(c) In the event that there are any costs associated with obtaining software licenses in accordance with Section 4.01 that
(i) would not be payable in the ordinary course, including in the form of a “transfer fee” or other similar fees or expenses payable by the Recipient or the Provider, and (ii) would not have been payable by the Recipient or the
Provider absent the need for a consent or waiver in connection with the license that the Recipient is seeking to obtain, such costs shall be borne by the Recipient. 
 Section 4.02. Covidien Computer-Based and Other Resources. (a) From and after the date of this Agreement, Mallinckrodt and its Affiliates shall cause all of their personnel having access
to the Covidien Intranet or such other computer software, networks, hardware, technology or computer based resources pursuant to the Separation Agreement, or any Ancillary Agreement, or in connection with performance, receipt or delivery of a
Service, to comply with all security guidelines (including physical security, network access, internet security, confidentiality and personal data security guidelines) of Covidien and its Affiliates (of which Covidien provides Mallinckrodt written
notice). Mallinckrodt shall ensure that the access contemplated by this Section 4.02 shall be used by such personnel only for the purposes contemplated by, and subject to the terms of, this Agreement. Except as expressly provided in the
Separation Agreement, any other Ancillary Agreement or any other applicable agreement or as required in connection with the performance or delivery of any Services, each of the Parties and its Affiliates shall cease using (and shall cause their
employees to cease using) the services made available by the other Party and its Affiliates prior to the date of this Agreement. 

  
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 Section 4.03. Access to Facilities. (a) Mallinckrodt shall, and shall cause
its Subsidiaries to, allow Covidien and its Representatives reasonable access to the facilities of Mallinckrodt necessary for Covidien to fulfill its obligations under this Agreement. 

(b) Covidien shall, and shall cause its Subsidiaries to, allow Mallinckrodt and its Representatives reasonable access to the facilities
of Covidien necessary for Mallinckrodt to fulfill its obligations under this Agreement. 
 (c) Notwithstanding the other rights
of access of the Parties under this Agreement, each Party shall, and shall cause its Subsidiaries to, afford the other Party, its Subsidiaries and Representatives, following not less than five (5) business days’ prior written notice from
the other Party, reasonable access during normal business hours to the facilities, information, systems, infrastructure, and personnel of the relevant Providers as reasonably necessary for the other Party to verify the adequacy of internal controls
over information technology, reporting of financial data and related processes employed in connection with the Services, including in connection with verifying compliance with Section 404 of the Sarbanes-Oxley Act of 2002; provided,
however, such access shall not unreasonably interfere with any of the business or operations of such Party or its Subsidiaries. 
 (d) Except as otherwise permitted by the other Party in writing, each Party shall permit only its authorized Representatives, contractors, invitees or licensees to access the other Party’s
facilities. 
 Section 4.04. Cooperation. It is understood that it will require the significant efforts of both
Parties to implement this Agreement and to ensure performance of this Agreement by the Parties at the agreed-upon levels in accordance with all of the terms and conditions of this Agreement. The Parties will cooperate, acting in good faith and using
commercially reasonable efforts, to effect a smooth and orderly transition of the Services provided under this Agreement from the Provider to the Recipient (including repairs and maintenance Services and the assignment or transfer of the rights and
obligations under any third-party contracts relating to the Services); provided, however, that this Section 4.04 shall not require either Party to incur any out-of-pocket costs or expenses. 

Section 4.05. Data Protection. The Provider shall only process personal data which it may receive from the Recipient, while
carrying out its duties under this Agreement: (a) in such a manner as is necessary to carry out those duties; (b) in accordance with the instructions of the Recipient; and (c) using appropriate technical and organizational measures to
prevent the unauthorised or unlawful processing of such personal data and/or the accidental loss or destruction of, or damage to, such personal data. 
 ARTICLE V 
 COSTS AND DISBURSEMENTS 

Section 5.01. Costs and Disbursements. (a) Except as otherwise provided in this Agreement, a Recipient of Services shall
pay to the Provider of such Services a monthly fee for the Services (or category of Services, as applicable) (each fee constituting a “Service Charge” and, collectively, “Service Charges”) as listed on the Schedules
hereto. 

  
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 (b) The amount of the Service Charge for each Service shall increase three percent
(3%) annually on each anniversary of this Agreement (including during the term of any Service Extension). In addition, during the term of this Agreement, the amount of a Service Charge for any Services (or category of Services, as applicable)
may increase to the extent of: (i) any increases mutually agreed to by the Parties, (ii) any Service Charges applicable to any Additional Services, Service Increases or New Services, and (iii) any increase in the rates or charges
imposed by any unaffiliated third-party provider that is providing Services. Together with any monthly invoice for Service Charges and Reimbursement Charges, the Provider shall provide the Recipient with documentation to support the calculation of
such Service Charges or any Reimbursement Charges. 
 (c) The Recipient shall reimburse the Provider for reasonable
out-of-pocket costs and expenses incurred by the Provider or its Affiliates in connection with providing the Services (including necessary travel-related expenses) (each such cost or expense, a “Reimbursement Charge” and,
collectively, “Reimbursement Charges”); provided, however, that any such cost or expense that is materially inconsistent with historical practice between the Parties for any Service (including business travel and
related expenses) shall require advance approval of the Recipient. Any authorized travel-related expenses incurred in performing the Services shall be incurred and charged to the Recipient in accordance with the Provider’s then-applicable
business travel policies made known to the Recipient. 
 (d) The Service Charges and Reimbursement Charges due and payable
hereunder shall be invoiced and paid in the currency indicated in the column entitled “Fees (Local)” in the relevant Schedule hereto. The Recipient shall pay the amount of each monthly invoice by wire transfer (or such other method of
payment as may be agreed between the Parties) to the Provider within sixty (60) days of the receipt of each such invoice, including appropriate documentation as described herein. In the absence of a timely notice of billing dispute in
accordance with the provisions of Article VIII of the Separation Agreement, if the Recipient fails to pay such amount by the due date, the Recipient shall be obligated to pay to the Provider, in addition to the amount due, interest at an annual
default interest rate of three percent (3%), or the maximum legal rate, whichever is lower (the “Interest Payment”), accruing from the date the payment was due through the date of actual payment. In the event of any billing dispute,
the Recipient shall promptly pay any undisputed amount. 
 (e) Subject to the confidentiality provisions set forth in
Section 9.03, each Party shall, and shall cause their respective Affiliates to, provide, upon ten (10) days’ prior written notice from the other Party, any information within such Party’s or its Affiliates’ possession
that the requesting Party reasonably requests in connection with any Services being provided to such requesting Party by an unaffiliated third-party provider, including any applicable invoices, agreements documenting the arrangements between such
third-party provider and the Provider and other supporting documentation; provided, however, that each Party shall make no more than one such request during any calendar month. 

Section 5.02. Tax Matters. (a) Without limiting any provisions of this Agreement, the Recipient shall be responsible for
(i) all excise, sales, use, transfer, stamp, documentary, filing, recordation and other similar Taxes, (ii) any value added, goods and services or similar recoverable indirect Taxes (“VAT”) and (iii) any related
interest and penalties (collectively, “Transfer  

  
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Taxes”), in each case imposed or assessed as a result of the provision of Services by the Provider. In particular, but without prejudice to the generality of the foregoing, all
amounts payable pursuant to this Agreement are exclusive of amounts in respect of VAT. Where any taxable supply for VAT purposes is made pursuant to this Agreement by the Provider to the Recipient, the Recipient shall either (i) on receipt of a
valid VAT invoice from the Provider, pay to the Provider such additional amounts in respect of VAT as are chargeable on the supply of the services at the same time as payment is due for the supply of the services; or (ii) where required by
legislation to do so, account directly to the relevant Governmental Authority for any such VAT amounts. The Party required to account for Transfer Tax shall provide to the other Party evidence of the remittance of the amount of such Transfer Tax to
the relevant Governmental Authority, including, without limitation, copies of any Tax returns remitting such amount. The Provider agrees that it shall take commercially reasonable actions to cooperate with the Recipient in obtaining any refund,
return, rebate, or the like of any Transfer Tax, including by filing any necessary exemption or other similar forms, certificates, or other similar documents. The Recipient shall promptly reimburse the Provider for any costs incurred by the Provider
or its Affiliates in connection with the Recipient obtaining a refund or overpayment of refund, return, rebate, or the like of any Transfer Tax. For the avoidance of doubt, any applicable gross receipts-based or net income-based Taxes shall be borne
by the Provider unless the Provider is required by law to obtain, or allowed to separately invoice for and obtain, reimbursement of such Taxes from the Recipient. 
 (b) The Recipient shall be entitled to deduct and withhold Taxes required by any Governmental Requirements to be withheld on payments made pursuant to this Agreement. To the extent any amounts are so
withheld, the Recipient shall (i) pay, in addition to the amount otherwise due to the Provider under this Agreement, such additional amount as is necessary to ensure that the net amount actually received by the Provider will equal the full
amount the Provider would have received had no such deduction or withholding been required, (ii) pay such deducted and withheld amount to the proper Governmental Authority, and (iii) promptly provide to the Provider evidence of such
payment to such Governmental Authority. The Provider shall, prior to the date of any payment to be made pursuant to this Agreement, at the request of the Recipient, make commercially reasonable efforts to provide the Recipient any certificate or
other documentary evidence (x) required by Governmental Requirements or (y) which the Provider is entitled by Governmental Requirements to provide in order to reduce the amount of any Taxes that may be deducted or withheld from such
payment and the Recipient agrees to accept and act in reliance on any such duly and properly executed certificate or other applicable documentary evidence. 
 (c) If the Provider (i) receives any refund (whether by payment, offset, credit or otherwise) or (ii) utilizes any overpayment of Taxes that are borne by Recipient pursuant to this Agreement,
then the Provider shall promptly pay, or cause to be paid, to the Recipient an amount equal to the deficiency or excess, as the case may be, with respect to the amount that the Recipient has borne if the amount of such refund or overpayment
(including, for the avoidance of doubt, any interest or other amounts received with respect to such refund or overpayment) had been included originally in the determination of the amounts to be borne by Recipient pursuant to this Agreement, net of
any additional Taxes the Provider incurs or will incur as a result of the receipt of such refund or such overpayment. 

  
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 Section 5.03. No Right to Set-Off. The Recipient shall timely pay the full
amount of Service Charges and Reimbursement Charges and shall not set-off, counterclaim or otherwise withhold any amount owed to the Provider under this Agreement on account of any obligation owed by the Provider to the Recipient. 

ARTICLE VI 

STANDARD FOR SERVICE 
 Section 6.01. Standard for Service. 
 (a) The Provider agrees
(i) to perform the Services with substantially the same nature, quality, standard of care and service levels at which the same or similar services were performed by or on behalf of the Provider prior to the Distribution Date or, if not so
previously provided, then substantially similar to that which are applicable to similar services provided to the Provider’s Affiliates or other business components; and (ii) upon receipt of written notice from the Recipient identifying any
outage, interruption or other failure of any Service, to respond to such outage, interruption or other failure of such Service in a manner that is substantially similar to the manner in which such Provider or its Affiliates responded to any outage,
interruption or other failure of the same or similar services prior to the Distribution Date. The Parties acknowledge that an outage, interruption or other failure of any Service shall not be deemed to be a breach of the provisions of this
Section 6.01 so long as the applicable Provider complies with the foregoing clause (ii). 
 (b) Nothing in this
Agreement shall require the Provider to perform or cause to be performed any Service to the extent the manner of such performance would constitute a violation of applicable Law or any existing contract or agreement with a third party. If the
Provider is or becomes aware of any potential violation on the part of the Provider, the Provider shall promptly send a written notice to the Recipient of any such potential violation. The Parties each agree to cooperate and use commercially
reasonable efforts to obtain any necessary third-party consents required under any existing contract or agreement with a third party to allow the Provider to perform or cause to be performed any Service in accordance with the standards set forth in
this Section 6.01. Any costs and expenses incurred by either Party in connection with obtaining any such third-party consent that is required to allow the Provider to perform or cause to be performed any Service shall be solely the
responsibility of the Recipient. If, with respect to a Service, the Parties, despite the use of such commercially reasonable efforts, are unable to obtain a required third-party consent or the performance of such Service by the Provider would
continue to constitute a violation of applicable Laws, the Provider shall use commercially reasonable efforts in good faith to provide such Services in a manner as closely as possible to the standards described in this Section 6.01 that
would apply absent the exception provided for in the first sentence of this Section 6.01(b). 
 Section 6.02.
Disclaimer of Warranties. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE PARTIES ACKNOWLEDGE AND AGREE THAT THE SERVICES ARE PROVIDED AS-IS, THAT EACH RECIPIENT ASSUMES ALL RISKS AND LIABILITY ARISING FROM OR RELATING TO ITS USE OF AND
RELIANCE UPON THE SERVICES AND EACH PROVIDER, TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, MAKES NO REPRESENTATION OR WARRANTY 

  
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WITH RESPECT THERETO. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH PROVIDER HEREBY EXPRESSLY DISCLAIMS ALL REPRESENTATIONS AND
WARRANTIES REGARDING THE SERVICES, WHETHER EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, BY STATUTE OR OTHERWISE, INCLUDING ANY REPRESENTATION OR WARRANTY IN REGARD TO QUALITY, PERFORMANCE, NONINFRINGEMENT, COMMERCIAL UTILITY,
MERCHANTABILITY OR FITNESS OF ANY SERVICE FOR A PARTICULAR PURPOSE. 
 Section 6.03. Compliance with Laws and
Regulations. Each Party shall be responsible for its own compliance and its subcontractors’ compliance with any and all Laws applicable to its performance under this Agreement. No Party will knowingly take any action in violation of any
such applicable Law that results in liability being imposed on the other Party. 
 ARTICLE VII 

LIMITED LIABILITY AND INDEMNIFICATION 
 Section 7.01. Consequential and Other Damages. Notwithstanding anything to the contrary contained in the Separation Agreement or this Agreement, the Provider shall not be liable to the
Recipient or any of its Affiliates or Representatives, whether in contract, tort (including negligence and strict liability) or otherwise, at law or equity, for any special, indirect, incidental, punitive or consequential damages whatsoever
(including lost profits or damages calculated on multiples of earnings approaches), which in any way arise out of, relate to or are a consequence of, the performance or nonperformance by the Provider (including any Affiliates and Representatives of
the Provider and any unaffiliated third-party providers, in each case, providing the applicable Services) under this Agreement or the provision of, or failure to provide, any Services under this Agreement, including with respect to loss of profits,
business interruptions or claims of customers. 
 Section 7.02. Limitation of Liability. The Liabilities of each
Provider and its Affiliates and Representatives, collectively, under this Agreement for any act or failure to act in connection herewith (including the performance or breach of this Agreement), or from the sale, delivery, provision or use of any
Services provided under or contemplated by this Agreement, whether in contract, tort (including negligence and strict liability) or otherwise, at law or equity, shall not exceed the total aggregate Service Charges (excluding any Reimbursement
Charges) actually paid to such Provider by the Recipient pursuant to this Agreement. The foregoing limitations on Liability in this Section 7.02 shall not apply to any breach of Section 9.03. 

Section 7.03. Obligation To Reperform; Liabilities. In the event of any breach of this Agreement by any Provider with respect
to the provision of any Services (with respect to which the Provider can reasonably be expected to re-perform in a commercially reasonable manner), the Provider shall (a) promptly correct in all material respects such error, defect or breach or
re-perform in all material respects such Services at the request of the Recipient and at the sole cost and expense of the Provider and (b) subject to the limitations set forth in Sections 7.01 and 7.02, reimburse the Recipient and
its Affiliates and Representatives for Liabilities attributable to such breach by the Provider. The remedy set forth in this Section 7.03 shall be the sole and exclusive remedy of the Recipient for any such breach of this Agreement. Any
request for re-performance 

  
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in accordance with this Section 7.03 by the Recipient must be in writing and specify in reasonable detail the particular error, defect or breach, and such request must be made no more
than one (1) month from the date such error, defect or breach becomes apparent or should have reasonably become apparent to the Recipient. 
 Section 7.04. Release and Recipient Indemnity. Subject to Section 7.01, each Recipient hereby releases the applicable Provider and its Affiliates and Representatives (each, a
“Provider Indemnified Party”), and each Recipient hereby agrees to indemnify, defend and hold harmless each such Provider Indemnified Party from and against any and all Liabilities arising from, relating to or in connection with:
(a) the use of any Services by such Recipient or any of its Affiliates, Representatives or other Persons using such Services; or (b) the sale, delivery, provision or use of any Services provided under or contemplated by this Agreement, in
the case of each of clause (a) and (b), except to the extent that such Liabilities arise out of, relate to or are a consequence of the applicable Provider Indemnified Party’s bad faith, gross negligence or willful misconduct. 

Section 7.05. Provider Indemnity. Subject to Section 7.01, each Provider hereby agrees to indemnify, defend and
hold harmless the applicable Recipient and its Affiliates and Representatives (each a “Recipient Indemnified Party”), from and against any and all Liabilities arising from, relating to or in connection with: (a) the use of any
Services by such Recipient or any of its Affiliates, Representatives or other Persons using such Services; or (b) the sale, delivery, provision or use of any Services provided under or contemplated by this Agreement, in the case of each of
clause (a) and (b), to the extent that such Liabilities arise out of, relate to or are a consequence of the applicable Provider’s bad faith, gross negligence or willful misconduct. 

Section 7.06. Indemnification Procedures. The provisions of Sections 4.5 and 4.6 of the Separation Agreement shall govern
claims for indemnification under this Agreement. 
 Section 7.07. Liability for Payment Obligations. Nothing in this
Article VII shall be deemed to eliminate or limit, in any respect, Covidien’s or Mallinckrodt’s express obligation in this Agreement to pay Service Charges and Reimbursement Charges for Services rendered in accordance with this
Agreement. 
 Section 7.08. Exclusion of Other Remedies. The provisions of Sections 7.03, 7.04 and
7.05 of this Agreement shall, to the maximum extent permitted by applicable Law, be the sole and exclusive remedies of the Provider Indemnified Parties and the Recipient Indemnified Parties, as applicable, for any claim, loss, damage, expense
or liability, whether arising from statute, principle of common or civil law, principles of strict liability, tort, contract or otherwise under this Agreement. 
 Section 7.09. Confirmation. Neither Party excludes responsibility for any liability which cannot be excluded pursuant to applicable Law. 

ARTICLE VIII 
 TERM AND TERMINATION 
 Section 8.01. Term and Termination.
(a) This Agreement shall commence immediately upon the Distribution Date and shall terminate upon the earlier to occur of: (i) the last date on which either Party is obligated to provide any Service to the other Party in accordance with
the terms of this Agreement or (ii) the mutual written agreement of the Parties to terminate this Agreement in its entirety. 

  
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 (b) Without prejudice to a Recipient’s rights with respect to a Force Majeure, a
Recipient may from time to time terminate this Agreement with respect to the entirety of any individual Service but not a portion thereof: 
 (i) for any reason or no reason, upon providing at least sixty (60) days’ prior written notice to the Provider; provided, however, that the Recipient shall pay to the Provider the
necessary and reasonable documented out-of-pocket costs incurred in connection with the wind down of such Service other than any employee severance and relocation expenses, but including unamortized license fees and costs for equipment used to
provide such Service, contractual obligations under agreements used to provide such Service, any breakage or termination fees and any other termination costs payable by the Provider with respect to any resources or pursuant to any other third-party
agreements that were used by the Provider to provide such Service (or an equitably allocated portion thereof, in the case of any such equipment, resources or agreements that also were used for purposes other than providing Services); or 

(ii) if the Provider of such Service has failed to perform any of its material obligations under this Agreement with
respect to such Service, and such failure shall continue to exist thirty (30) days after receipt by the Provider of written notice of such failure from the Recipient. 
 In the event that any Service is terminated other than at the end of a month, the Service Charge associated with such Service shall be pro-rated appropriately. The Parties acknowledge that there may be
interdependencies among the Services being provided under this Agreement that may not be identified on the applicable Schedules and agree that, if the Provider’s ability to provide a particular Service in accordance with this Agreement is
materially and adversely affected by the termination of another Service in accordance with Section 8.01(b)(i), then the Parties shall negotiate in good faith to amend the Schedule relating to such affected continuing Service, which
amendment shall be consistent with the terms of, and the pricing methodology used for, comparable Services. 
 (c) In connection
with the termination of any Service, if the Recipient reasonably determines that it will require such Service to continue beyond the date on which such Service is scheduled to terminate, the Recipient may request that the Provider extend such
Service (any such extension, a “Service Extension”) for a specified period beyond the scheduled termination of such Service (which period shall in no event be longer than one hundred and eighty (180) days) by written notice to
the Provider no less than sixty (60) days prior to the date of such scheduled termination, and Provider shall consider any such request in good faith; provided, however, that no Party shall be obligated to agree to any Service
Extension, including because, after good-faith negotiations between the Parties, the Parties fail to reach an agreement with respect to the terms thereof; provided, further, however, that (i) there shall be no more than one
(1) Service Extension with respect to each Service and (ii) the Provider shall not be obligated to provide such Service Extension if a third-party consent is required and cannot be obtained by the Provider. Unless otherwise agreed by
Provider and Recipient, the Service Charge applicable to any such Service 

  
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Extension shall be one hundred and twenty percent (120%) of the Service Charge applicable to such Service immediately prior to the Service Extension. In connection with any request for
Service Extensions in accordance with this Section 8.01(c), the Covidien Services Manager and the Mallinckrodt Services Manager shall in good faith (x) negotiate the terms of an amendment to the applicable Schedule, which amendment
shall be consistent with the terms of the applicable Service, and (y) determine the costs and expenses (other than Service Charges), if any, that would be incurred by the Provider or the Recipient, as the case may be, in connection with the
provision of such Service Extension, which costs and expenses shall be borne solely by the Party requesting the Service Extension. Each amended Schedule to implement a Service Extension, as agreed to in writing by the Parties, shall be deemed part
of this Agreement as of the date of such agreement and any Services provided pursuant to such Service Extensions shall be deemed “Services” provided under this Agreement, in each case subject to the terms and conditions of this Agreement.

 Section 8.02. Effect of Termination. Upon termination of any Service pursuant to this Agreement, the Provider of
the terminated Service will have no further obligation to provide the terminated Service, and the relevant Recipient will have no obligation to pay any future Service Charges relating to any such Service; provided, however, that the
Recipient shall remain obligated to the relevant Provider for the (i) Service Charges and Reimbursement Charges owed and payable in respect of Services provided prior to the effective date of termination and (ii) any applicable charges
described in Section 8.01(b)(i), which charges shall be payable only in the event that the Recipient terminates any Service pursuant to Section 8.01(b)(i). In connection with the termination of any Service, the provisions of
this Agreement not relating solely to such terminated Service shall survive any such termination, and in connection with a termination of this Agreement, Article I, Article VII (including liability in respect of any indemnifiable
Liabilities under this Agreement arising or occurring on or prior to the date of termination), Article VIII, Article IX, all confidentiality obligations under this Agreement and liability for all due and unpaid Service Charges and
Reimbursement Charges and any applicable charges payable pursuant to Section 8.01(b)(i), shall continue to survive indefinitely. 
 Section 8.03. Force Majeure. (a) Neither Party (nor any Person acting on its behalf) shall have any liability or responsibility for failure to fulfill any obligation (other than a payment
obligation) under this Agreement so long as and to the extent to which the fulfillment of such obligation is prevented, frustrated, hindered or delayed as a consequence of a Force Majeure; provided, however, that (i) such Party
(or such Person) shall have exercised commercially reasonable efforts to minimize the effect of such Force Majeure on its obligations; and (ii) the nature, quality and standard of care that the Provider shall provide in delivering a Service
after a Force Majeure shall be substantially the same as the nature, quality and standard of care that the Provider provides to its Affiliates with respect to such Service. In the event of an occurrence of a Force Majeure, the Party whose
performance is affected thereby shall give notice of suspension as soon as reasonably practicable to the other stating the date and extent of such suspension and the cause thereof, and such Party shall resume the performance of such obligations as
soon as reasonably practicable after the removal of such cause. 
 (b) During the period of a Force Majeure, the Recipient shall
be entitled to permanently terminate such Service(s) (and shall be relieved of the obligation to pay Service Charges 

  
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for such Services(s) throughout the duration of such Force Majeure) if a Force Majeure shall continue to exist for more than fifteen (15) consecutive days, it being understood that Recipient
shall not be required to provide any advance notice of such termination to Provider or pay any charges in connection therewith. 

ARTICLE IX 

GENERAL PROVISIONS 
 Section 9.01. No Agency. Nothing in this Agreement shall be deemed in any way or for any purpose to constitute any Party an agent of an unaffiliated party in the conduct of such other
party’s business. A Provider of any Service under this Agreement shall act as an independent contractor and not as the agent of the Recipient in performing such Service, maintaining control over its employees, its subcontractors and their
employees and complying with all withholding of income at source requirements, whether federal, national, state, local or foreign. 
 Section 9.02. Subcontractors. A Provider may hire or engage one or more subcontractors to perform any or all of its obligations under this Agreement; provided, however, that
(i) such Provider shall use the same degree of care in selecting any such subcontractor as it would if such contractor was being retained to provide similar services to the Provider and (ii) such Provider shall in all cases remain
primarily responsible for all of its obligations under this Agreement with respect to the scope of the Services, the standard for services as set forth in Article VI and the content of the Services provided to the Recipient. 

Section 9.03. Treatment of Confidential Information. 

(a) The Parties shall not, and shall cause all other persons providing Services or having access to information of the other Party that
is confidential or proprietary (“Confidential Information”) not to, disclose to any other person or use, except for purposes of this Agreement, any Confidential Information of the other Party; provided, however, that
the Confidential Information may be used by such Party to the extent that such Confidential Information has been (i) in the public domain through no fault of such Party or any member of such Group or any of their respective Representatives,
(ii) later lawfully acquired from other sources by such Party (or any member of such Party’s Group) which sources are not themselves bound by a confidentiality obligation, or (iii) independently generated without reference to any
Confidential Information of the other Party; provided, further, that each Party may disclose Confidential Information of the other Party, to the extent not prohibited by applicable Law: (i) to its Representatives on a need-to-know
basis in connection with the performance of such Party’s obligations under this Agreement; (ii) in any report, statement, testimony or other submission required to be made to any Governmental Authority having jurisdiction over the
disclosing Party; or (iii) in order to comply with applicable Law, or in response to any summons, subpoena or other legal process or formal or informal investigative demand issued to the disclosing Party in the course of any litigation,
investigation or administrative proceeding. In the event that a Party becomes legally compelled (based on advice of counsel) by deposition, interrogatory, request for documents subpoena, civil investigative demand or similar judicial or
administrative process to disclose any Confidential Information of the other Party, such disclosing Party shall provide the other Party with prompt prior written notice of such requirement, and, to the extent reasonably practicable, cooperate with
the other Party (at such other Party’s expense) to obtain a protective order or similar remedy to 

  
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cause such Confidential Information not to be disclosed, including interposing all available objections thereto, such as objections based on settlement privilege. In the event that such
protective order or other similar remedy is not obtained, the disclosing Party shall furnish only that portion of the Confidential Information that has been legally compelled, and shall exercise its commercially reasonable efforts (at such other
Party’s expense) to obtain assurance that confidential treatment will be accorded such Confidential Information. 
 (b)
Each Party shall, and shall cause its Representatives to, protect the Confidential Information of the other Party by using the same degree of care to prevent the unauthorized disclosure of such as the Party uses to protect its own confidential
information of a like nature, but in any event no less than a reasonable degree of care. 
 (c) Each Party shall be liable for
any failure by its respective Representatives to comply with the restrictions on use and disclosure of Confidential Information contained in this Agreement. 
 (d) Each Party shall comply with all applicable local, state, national, federal and foreign privacy and data protection Laws that are or that may in the future be applicable to the provision of Services
under this Agreement. 
 Section 9.04. Further Assurances. Each Party covenants and agrees that, without any
additional consideration, it shall execute and deliver any further legal instruments and perform any acts that are or may become necessary to effectuate this Agreement. 
 Section 9.05. Dispute Resolution. Any Dispute shall be resolved in accordance with the procedures set forth in Article VIII of the Separation Agreement, which shall be the sole and exclusive
procedures for the resolution of any such Dispute unless otherwise specified herein or in Article VIII of the Separation Agreement. 
 Section 9.06. Notices. Except with respect to routine communications by the Covidien Services Manager, Mallinckrodt Services Manager, Covidien Local Services Manager and Mallinckrodt Local
Services Manager under Section 2.06, all notices, requests, claims, demands and other communications under this Agreement shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt)
by delivery in person, by overnight courier service, by facsimile or electronic transmission with receipt confirmed (followed by delivery of an original via overnight courier service) or by registered or certified mail (postage prepaid, return
receipt requested) to the respective Parties at the following addresses (or at such other address for a Party as shall be specified in a notice given in accordance with this Section 9.06): 

 

	 	(i)	if to Covidien: 

 Covidien plc

 1st Floor, 20 on Hatch 
 Lower Hatch Street 
 Dublin 2 

Ireland 
 Attn:
Chief Financial Officer 
 Facsimile: +353-1-438-1798 

  
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 with copies to: 
 Covidien plc 
 15 Hampshire Street 

Mansfield, MA 02048 
 Attn: General Counsel 
 Facsimile: (508) 261-8544 

Wachtell, Lipton, Rosen & Katz 
 51 West 52nd Street 
 New York, New York 10019 

	 	Attention:	Adam O. Emmerich 

	 	    	Benjamin M. Roth 

	 	Facsimile:	(212) 403-2000 

  

	 	(ii)	if to Mallinckrodt: 

Mallinckrodt plc 
 Damastown, Mulhuddart 
 Dublin 15 

Ireland 
 Attn:
Chief Financial Officer 
 Facsimile: +353-1-820-8780 
 with copies to: 
 Mallinckrodt plc 

675 James S. McDonnell Blvd. 
 Hazelwood, MO 63042 
 Attn: General Counsel 

Facsimile: (314) 654-5366 

  
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 Wachtell, Lipton, Rosen & Katz 

51 West 52nd Street 
 New York, New York 10019 

	 	Attention:	Adam O. Emmerich 

	 	    	Benjamin M. Roth 

	 	Facsimile:	(212) 403-2000 

Section 9.07. Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being
enforced under any Law or as a matter of public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated by this
Agreement is not affected in any manner materially adverse to any Party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement
so as to effect the original intent of the Parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated by this Agreement be consummated as originally contemplated to the greatest extent possible.

 Section 9.08. Entire Agreement. This Agreement, together with the documents referenced herein (including the
Separation Agreement and any other Ancillary Agreements) constitutes the entire agreement between the parties with respect to the subject matter hereof, supersede all prior written and oral and all contemporaneous oral agreements, negotiations,
discussions, writings, understandings, commitments and conversations with respect to such subject matter and there are no agreements or understandings between the parties other than those set forth or referred to herein or therein. 

Section 9.09. No Third-Party Beneficiaries. Except as provided in Article VII with respect to Provider Indemnified
Parties and Recipient Indemnified Parties, this Agreement is for the sole benefit of the Parties and their permitted successors and assigns and nothing in this Agreement, express or implied, is intended to or shall confer upon any other Person,
including any union or any employee or former employee of Covidien or Mallinckrodt, any legal or equitable right, benefit or remedy of any nature whatsoever, including any rights of employment for any specified period, under or by reason of this
Agreement. 
 Section 9.10. Governing Law. This Agreement (and any claims or disputes arising out of or related to
this Agreement or to the transactions contemplated by this Agreement or to the inducement of any Party to enter into this Agreement or the transactions contemplated by this Agreement, whether for breach of contract, tortious conduct or otherwise and
whether predicated on common law, statute or otherwise) shall in all respects be governed by, and construed in accordance with, the Laws of the State of New York, including all matters of construction, validity and performance, in each case without
reference to any conflict of Law rules that might lead to the application of the Laws of any other jurisdiction (other than Section 5-1401 and Section 5-1402 of the General Obligations Law of the State of New York). 

Section 9.11. Amendment. No provision of this Agreement, including any Schedules to this Agreement, may be amended,
supplemented or modified except by a written instrument making specific reference to this Agreement or any such Schedules to this Agreement, as applicable, signed by all the Parties. 

  
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 Section 9.12. Rules of Construction. Interpretation of this Agreement shall be
governed by the following rules of construction: (a) words in the singular shall be held to include the plural and vice versa, and words of one gender shall be held to include the other gender as the context requires; (b) references to the
terms Article, Section, paragraph and Schedule are references to the Articles, Sections, paragraphs and Schedules of this Agreement unless otherwise specified; (c) references to “$” shall mean U.S. dollars; (d) the word
“including” and words of similar import when used in this Agreement shall mean “including without limitation,” unless otherwise specified; (e) the word “or” shall not be exclusive; (f) references to
“written” or “in writing” include in electronic form; (g) provisions shall apply, when appropriate, to successive events and transactions; (h) the headings contained in this Agreement are for reference purposes only and
shall not affect in any way the meaning or interpretation of this Agreement; (i) Covidien and Mallinckrodt have each participated in the negotiation and drafting of this Agreement and if an ambiguity or question of interpretation should arise,
this Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or burdening either Party by virtue of the authorship of any of the provisions in this Agreement or any interim drafts
of this Agreement; (j) a reference to any Person includes such Person’s successors and permitted assigns; (k) any reference to “days” means calendar days unless business days are expressly specified; and (l) when
calculating the period of time before which, within which or following which any act is to be done or step taken pursuant to this Agreement, the date that is the reference date in calculating such period shall be excluded, and if the last day of
such period is not a business day, the period shall end on the next succeeding business day. 
 Section 9.13.
Counterparts. This Agreement may be executed in one or more counterparts, and by each Party in separate counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the
same agreement. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or portable document format (PDF) shall be as effective as delivery of a manually executed counterpart of this Agreement. 

Section 9.14. Assignability. This Agreement shall not be assigned by operation of Law or otherwise without the prior written
consent of Covidien and Mallinckrodt, except that each Party may: 
 (a) assign all of its rights and obligations under this
Agreement to any of its Subsidiaries; provided, that in connection with any such assignment, the assigning Party provides a guarantee to the non-assigning Party (in a form reasonably agreed upon) for any liability or obligation of the
assignee under this Agreement; 
 (b) in connection with the divestiture of any Subsidiary or business of such Party that is a
Recipient to an acquiror that is not a competitor of the Provider, assign to the acquiror of such Subsidiary or business its rights and obligations as a Recipient with respect to the Services provided to such divested Subsidiary or business under
this Agreement; provided, that (i) in connection with any such assignment, the assigning Party provides a guarantee to the non-assigning Party (in a form reasonably agreed upon) for any liability or obligation of the assignee under this
Agreement, (ii) any and all costs and expenses incurred by either Party in connection with such assignment (including in connection with clause (iii) of this proviso) shall be borne solely by the assigning Party, and (iii) the Parties
shall in good faith negotiate any amendments to this Agreement, including the Schedules hereto, that may be necessary or appropriate in order to assign such Services; and 

  
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 (c) in connection with the divestiture of any Subsidiary or business of such Party that is a
Recipient to an acquiror that is a competitor of the Provider, assign to the acquiror of such Subsidiary or business its rights and obligations as a Recipient with respect to the Services provided to such divested Subsidiary or business under this
Agreement; provided, that (i) in connection with any such assignment, the assigning Party provides a guarantee to the non-assigning Party (in a form reasonably agreed upon) for any liability or obligation of the assignee under this
Agreement, (ii) any and all costs and expenses incurred by either Party in connection with such assignment (including in connection with clause (iii) of this proviso) shall be borne solely by the assigning Party, (iii) the Parties
shall in good faith negotiate any amendments to this Agreement, including the Schedules hereto, that may be necessary or appropriate in order to ensure that such assignment will not (x) materially and adversely affect the businesses and
operations of each of the Parties and their respective Affiliates or (y) create a competitive disadvantage for the Provider with respect to an acquiror that is a competitor, and (iv) no Party shall be obligated to provide any such assigned
Services to an acquiror that is a competitor if the provision of such assigned Services to such acquiror would disrupt the operation of such Party’s businesses or create a competitive disadvantage for such Party with respect to such acquirer.

 Section 9.15. Public Announcements. From and after the Distribution Date, the Parties shall consult with each
other before issuing, and give each other the opportunity to review and comment upon, that portion of any press release or other public statements that relates to the transactions contemplated by this Agreement, and shall not issue any such press
release or make any such public statement prior to such consultation, except (a) as may be required by applicable Law, court process or by obligations pursuant to any listing agreement with any national securities exchange or national
securities quotation system; or (b) as otherwise set forth in the Separation Agreement. 
 Section 9.16.
Non-Recourse. No past, present or future director, officer, employee, incorporator, member, partner, shareholder, Affiliate, agent, attorney or representative of either Covidien or Mallinckrodt or their Affiliates shall have any liability for
any obligations or liabilities of Covidien or Mallinckrodt, respectively, under this Agreement or for any claims based on, in respect of, or by reason of, the transactions contemplated by this Agreement. 

[The remainder of this page is intentionally left blank.] 

  
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 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the date first written above by
their respective duly authorized officers. 
  

			
	COVIDIEN PLC
		
	By:	 	 /s/ John W. Kapples

		 	Name: John W. Kapples
		 	Title: Vice President and Secretary
	
	MALLINCKRODT PLC
		
	By:	 	 /s/ Matthew K. Harbaugh

		 	Name: Matthew K. Harbaugh
		 	Title: Director

 [Signature Page to Transition Services Agreement]

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