Document:

Exhibit 10.8

Covidien Ltd.

2007 Stock and Incentive Plan

TERMS AND CONDITIONS

OF

RESTRICTED UNIT AWARD

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

1.                                       Grant of Restricted Units. 
Covidien Ltd. (the “Company”) has granted to you Restricted Units, the
amount of which is set forth in the Grant Letter, subject to the provisions of
these Terms and Conditions and the Plan. 
The Company will hold the Restricted Units in a bookkeeping account on
your behalf until such units become payable or are forfeited or cancelled.

2.                                       Amount and Form of Payment. 
Each Restricted Unit represents one (1) Share of Common Stock and vested
Restricted Units will be redeemed solely for Shares, subject to Section 10.

3.                                       Dividends. 
Each unvested Restricted Unit will be credited with a Dividend
Equivalent Unit (“DEU”) for any cash or stock dividends distributed by the
Company on a Share of Common Stock.  DEUs
will be calculated at the same dividend rate paid to other holders of Common
Stock and will vest in accordance with the vesting schedule applicable to the
underlying Restricted Units.

4.                                       Vesting. 
Except as provided below, Restricted Units subject to this Award will
vest according to the following schedule:

	
  Date

  	
   

  	
  Vested Percentage

  	
   

  
	
  1st Anniversary of Grant Date

  	
   

  	
  25

  	
  %

  
	
  2nd Anniversary of Grant Date

  	
   

  	
  50

  	
  %

  
	
  3rd Anniversary of Grant Date

  	
   

  	
  75

  	
  %

  
	
  4th Anniversary of Grant Date

  	
   

  	
  100

  	
  %

  

 

If you terminate employment before the 4th Anniversary
of the Grant Date, you will forfeit all Restricted Units subject to this
Award.  However, if you terminate
employment before the 4th Anniversary of the Grant Date
due to Normal Retirement (you terminate employment on or after age 60 and the
sum of your age and years of service equals at least 70), Retirement (you
terminate employment on or after age 55 and the sum of your age and years of
service equals at least 60), death, Disability, a Change in Control or
Divestiture or Outsourcing Agreement, these Restricted Units will become vested
in accordance with the provisions of Section 7, 8 or 9, as applicable.

5.                                       Retirement, Normal Retirement, Disability or Death.  Notwithstanding the vesting provisions
described in Section 4, Restricted Units subject to this Award will vest if
your Termination of Employment is a result of your Retirement, Normal
Retirement, Disability or death as follows:

 1
 

(i)                                     Retirement.  If you
terminate employment as a result of your Retirement (as defined in Section 4)
and your Retirement occurs less than 12 months after the Grant Date, you will forfeit
all Restricted Units subject to this Award. 
If, however, your Retirement occurs at least 12 months after the Grant
Date, then you will be entitled to pro rata vesting of Restricted Units based
on (A) the number of whole months completed from Grant Date through your
employment termination date divided by 48 times (B) the total number of
Restricted Units awarded under this Award.

(ii)                                  Normal Retirement, Disability or Death.  If you terminate employment as a result of
your Normal Retirement (as defined in Section 4) and your Normal Retirement
occurs less than 12 months after the Grant Date of this Award, you will forfeit
all Restricted Units subject to this Award. 
If, however, your Normal Retirement occurs at least 12 months after the
Grant Date of this Award or you terminate employment because of your death or a
Disability, then you will become fully vested in all Restricted Units subject
to this Award on the date of your Normal Retirement, death or termination of
employment due to Disability.

6.                                       Termination of Employment
Following a Change in Control.  Notwithstanding the
vesting provisions described in Section 4, you will become fully vested in Restricted Units subject to this Award on the
date you terminate employment after a Change in Control if you satisfy one of
the following requirements:

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

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

7.                                   Termination of Employment
Resulting From Divestiture or Outsourcing Agreement. 
Notwithstanding the vesting provisions described in Section 4,
and subject to the provisions of subsection (i) below, if you terminate employment as a result of a Disposition of Assets,
Disposition of a Subsidiary or Outsourcing Agreement, then Restricted Units
subject to this Award will vest on a pro-rata basis based on (A) the
number of whole months completed from Grant Date through the closing date of
the applicable transaction divided by 48 times (B) the total number of
Restricted Units issued under this Award.

 2
 

(i)                                     Notwithstanding
the foregoing provisions of this Section 7, you shall not be eligible for
pro-rata vesting if (A) your Termination of Employment occurs on or prior to
the closing date of a Disposition of Assets or Disposition of a Subsidiary or
such later date as is provided specifically in the applicable transaction
agreement or related agreements, or on the effective date of an Outsourcing
Agreement (the “Applicable Employment Date”), and (B) you are offered
Comparable Employment with the buyer, successor company or outsourcing agent,
as applicable, but do not commence such employment on the Applicable Employment
Date.

(ii)                                  For
purposes of Section 7(i), (A) “Comparable Employment” means employment at a
location that is no more than 50 miles from your job location at the time of
your Termination of Employment that has a base salary and bonus target that is
at least equal to your base salary and bonus target in effect immediately prior
to your Termination of Employment; (B) “Disposition of Assets” means the disposition
by the Company or a Subsidiary of all or a portion of the assets used by the
Company or Subsidiary in a trade or business to an unrelated corporation or
entity; (C) “Disposition of a Subsidiary” means the disposition by the Company
or Subsidiary of its interest in a subsidiary or controlled entity to an
unrelated individual or entity, provided that such subsidiary or entity ceases
to be a member of the Company’s controlled group as a result of such
disposition; and (D) “Outsourcing Agreement” means a written agreement between
the Company or Subsidiary and an unrelated third party (“Outsourcing Agent”)
pursuant to which (1) the Company or Subsidiary transfers the performance of
services previously performed by Company or Subsidiary employees to the Outsourcing
Agent, and (2) the Outsourcing Agreement includes an obligation of the
Outsourcing Agent to offer employment to any employee whose employment is being
terminated as a result of or in connection with said Outsourcing Agreement.

8.                                       Withholdings. 
The Company has the right, prior to the issuance or delivery of any
Shares on your Restricted Units, to withhold or require from you the amount
necessary to satisfy applicable tax requirements, as determined by the
Committee.  If you have not satisfied
your tax withholding requirements in a timely manner, the Company has the right
to sell the number of Shares necessary to satisfy such requirements.

9.                                       Transfer of Award. 
You may not transfer this Award or any interest in Restricted Units
except by will or the laws of descent and distribution.  Any other attempt to transfer this Award or
any interest in Restricted Units is null and void.

10.                                 Forfeiture of Award. 
You will forfeit all or a portion of the Restricted Units subject to
this Award if your employment terminates under the circumstances described
below:

(i)                                     If the Company or Subsidiary terminates
your employment for Cause, including without limitation a termination as a
result of your violation of the Company’s Code of Ethical Conduct, then the
Company will immediately rescind any unvested Restricted Units subject to this
Award and you will immediately forfeit any and all rights you have remaining at
such time with respect to this Award. 
Also, you hereby agree and promise to deliver to the Company immediately
upon your Termination of Employment for Cause, Shares (or, in the discretion of
the Committee, cash) equal in value to the amount of any Restricted Units that
vested during the 12-month period that occurs immediately prior to your
Termination of Employment for Cause.

 3
 

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

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

11.                                 Adjustments. 
In the event of any stock split, reverse stock split, dividend or other
distribution (whether in the form of cash, Shares, other securities or other
property), extraordinary cash dividend, recapitalization, merger,
consolidation, split-up, spin-off, reorganization, combination, repurchase or
exchange of Shares or other securities, the issuance of warrants or other
rights to purchase Shares or other securities, or other similar corporate
transaction or event, the Committee may in its sole discretion adjust the
number and kind of Shares covered by this Award and other relevant provisions
to the extent necessary to prevent dilution or enlargement of the benefits or
potential benefits intended to be provided by this Award.  Any such determinations and adjustments made
by the Committee will be binding on all persons.

12.                                 Restrictions on Payment of
Shares.  Payment of Shares for Restricted Units is
subject to the conditions that, to the extent required at the time of delivery
of such Shares:

(i)                                     The Shares underlying the Restricted
Units will be duly listed, upon official notice of redemption, on the NYSE; and

 4
 

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

The Company will not be
required to deliver any Shares until all applicable federal and state laws and
regulations have been complied with and all legal matters in connection with
the issuance and delivery of the Shares have been approved by the Company’s
legal counsel.

13.                                 Disposition of Securities. 
By accepting this Award, you acknowledge that you have read and
understand the Company’s Insider Trading Policy and are aware of and understand
your obligations under federal securities laws with respect to trading in the
Company’s securities.  The Company has
the right to recover, or receive reimbursement for, any compensation or profit
you realized upon the disposition of Shares received for Restricted Units to
the extent that the Company has a right of recovery or reimbursement under
applicable securities laws.

14.                                 Plan Terms Govern. 
The redemption of Restricted Units, the disposition of any Shares
received for Restricted Units and the treatment of any gain on the disposition
of these Shares are subject to the terms of the Plan and any rules that the
Committee prescribes.  The Plan document,
as amended from time to time, is incorporated into this Terms and Conditions
document.  Capitalized terms used herein
are defined in the Plan, unless otherwise stated in these Terms and
Conditions.  If there is any conflict
between the terms of the Plan and these Terms and Conditions, the Plan will
prevail.  By accepting the Award, you
hereby acknowledge receipt of the Plan and prospectus, as in effect on the
Grant Date.

15.                                 Personal Data. 
To comply with applicable law and to administer this Award
appropriately, the Company and its agents may hold and process your personal
data and/or sensitive personal data.  Such
data includes, but is not limited to, the information provided to you as part
of the grant package and any changes thereto, other appropriate personal and
financial data about you, and information about your participation in the Plan
and Shares obtained under the Plan from time to time.  By accepting this Award, you hereby give your
explicit consent to the Company’s processing personal data and/or sensitive
personal data as is necessary or appropriate for Plan administration.  You also hereby give your explicit consent to
the Company’s transfer of personal data and/or sensitive personal data outside
the country in which you work or reside and to the United States.  The legal persons for whom your personal data
are intended include the Company, its Subsidiaries (or former Subsidiaries as
are deemed necessary), the outside Plan administrator, and any other person
that the Company retains or utilizes for Plan administration purposes.  You have the right to review and correct your
personal data by contacting your local Human Resources Representative.  You hereby acknowledge your understanding
that the transfer of the information outlined here is important to Plan
administration and that failure to consent to the transmission of such information
may limit or prohibit your participation in the Plan.

16.                                 No Contract of Employment or
Promise of Future Grants.  By accepting this Award, you agree that you
are bound by the terms of the Plan and these Terms and Conditions and
acknowledge that this Award is granted in the Company’s sole discretion and is
not considered part of any employment contract or your ordinary or expected
salary or other compensation.  This Award
and any gains received hereunder are not considered part of your salary or
compensation for purposes of any pension benefits or for purposes of severance,
redundancy or resignation.  If the
Company or Subsidiary terminates your employment for any 

 5
 

reason, you agree that
you will not be entitled to damages for breach of contract, dismissal or
compensation for loss of office or otherwise to any sum, Shares, Options or
other benefits to compensate you for the loss or diminution in value of any
actual or prospective rights, benefits or expectation under or in relation to
the Plan.

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

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

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

20.                                 Acceptance. 
By accepting this Award, you agree to the following:

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

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

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

 6Exhibit
10.9

COVIDIEN
LTD.

SEVERANCE
PLAN FOR U.S. OFFICERS AND EXECUTIVES

   

TABLE OF
CONTENTS

	
  

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
  BACKGROUND,
  PURPOSE AND TERM OF PLAN

  	
   

  	
  1

  
	
  Section 1.01

  	
  Purpose of the
  Plan

  	
   

  	
  1

  
	
  Section 1.02

  	
  Term of the Plan

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  DEFINITIONS

  	
   

  	
  2

  
	
  Section 2.01

  	
  “Alternative
  Position”

  	
   

  	
  2

  
	
  Section 2.02

  	
  “Annual Bonus”

  	
   

  	
  2

  
	
  Section 2.03

  	
  “Base Salary”

  	
   

  	
  2

  
	
  Section 2.04

  	
  “Board”

  	
   

  	
  2

  
	
  Section 2.05

  	
  “Cause”

  	
   

  	
  2

  
	
  Section 2.06

  	
  “COBRA”

  	
   

  	
  2

  
	
  Section 2.07

  	
  “Code”

  	
   

  	
  2

  
	
  Section 2.08

  	
  “Committee”

  	
   

  	
  2

  
	
  Section 2.09

  	
  “Company”

  	
   

  	
  2

  
	
  Section 2.10

  	
  “Effective Date”

  	
   

  	
  3

  
	
  Section 2.11

  	
  “Eligible
  Employee”

  	
   

  	
  3

  
	
  Section 2.12

  	
  “Employee”

  	
   

  	
  3

  
	
  Section 2.13

  	
  “Employer”

  	
   

  	
  3

  
	
  Section 2.14

  	
  “ERISA”

  	
   

  	
  3

  
	
  Section 2.15

  	
  “Exchange Act”

  	
   

  	
  3

  
	
  Section 2.16

  	
  “Involuntary
  Termination”

  	
   

  	
  3

  
	
  Section 2.17

  	
  “Notice Pay”

  	
   

  	
  3

  
	
  Section 2.18

  	
  “Officer”

  	
   

  	
  3

  
	
  Section 2.19

  	
  “Participant”

  	
   

  	
  3

  
	
  Section 2.20

  	
  “Permanent
  Disability”

  	
   

  	
  3

  
	
  Section 2.21

  	
  “Plan”

  	
   

  	
  4

  
	
  Section 2.22

  	
  “Plan
  Administrator”

  	
   

  	
  4

  
	
  Section 2.23

  	
  “Release”

  	
   

  	
  4

  
	
  Section 2.24

  	
  “Separation”

  	
   

  	
  4

  
	
  Section 2.25

  	
  “Service”

  	
   

  	
  4

  
	
  Section 2.26

  	
  “Severance
  Benefit”

  	
   

  	
  4

  
					

 

 i
 

 

	
  

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.27

  	
  “Severance
  Period”

  	
   

  	
  4

  
	
  Section 2.28

  	
  “Subsidiary”

  	
   

  	
  4

  
	
  Section 2.29

  	
  “Termination
  Date”

  	
   

  	
  4

  
	
  Section 2.30

  	
  “Voluntary
  Termination”

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  PARTICIPATION
  AND ELIGIBILITY FOR BENEFITS

  	
   

  	
  5

  
	
  Section 3.01

  	
  Participation

  	
   

  	
  5

  
	
  Section 3.02

  	
  Conditions

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  DETERMINATION OF
  SEVERANCE BENEFITS

  	
   

  	
  7

  
	
  Section 4.01

  	
  Amount of
  Severance Benefits Upon Involuntary Termination

  	
   

  	
  7

  
	
  Section 4.02

  	
  Voluntary
  Termination; Termination for Death or Permanent Disability

  	
   

  	
  9

  
	
  Section 4.03

  	
  Termination for
  Cause

  	
   

  	
  9

  
	
  Section 4.04

  	
  Reduction of
  Severance Benefits

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  METHOD AND
  DURATION OF SEVERANCE BENEFIT PAYMENTS

  	
   

  	
  10

  
	
  Section 5.01

  	
  Method of
  Payment

  	
   

  	
  10

  
	
  Section 5.02

  	
  Other
  Arrangements

  	
   

  	
  10

  
	
  Section 5.03

  	
  Termination of
  Eligibility for Benefits

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  CONFIDENTIALITY,
  COVENANT NOT TO COMPETE AND NOT TO SOLICIT

  	
   

  	
  12

  
	
  Section 6.01

  	
  Confidential
  Information

  	
   

  	
  12

  
	
  Section 6.02

  	
  Non-Competition

  	
   

  	
  12

  
	
  Section 6.03

  	
  Non-Solicitation

  	
   

  	
  12

  
	
  Section 6.04

  	
  Non-Disparagement

  	
   

  	
  13

  
	
  Section 6.05

  	
  Reasonableness

  	
   

  	
  13

  
	
  Section 6.06

  	
  Equitable Relief

  	
   

  	
  13

  
	
  Section 6.07

  	
  Survival of
  Provisions

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  THE PLAN
  ADMINISTRATOR

  	
   

  	
  15

  
	
  Section 7.01

  	
  Authority and
  Duties

  	
   

  	
  15

  
	
  Section 7.02

  	
  Compensation of
  the Plan Administrator

  	
   

  	
  15

  
	
  Section 7.03

  	
  Records,
  Reporting and Disclosure

  	
   

  	
  15

  
					

 ii
 

 

	
  

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
  AMENDMENT,
  TERMINATION AND DURATION

  	
   

  	
  16

  
	
  Section 8.01

  	
  Amendment,
  Suspension and Termination

  	
   

  	
  16

  
	
  Section 8.02

  	
  Duration

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
  DUTIES OF THE
  COMPANY AND THE COMMITTEE

  	
   

  	
  17

  
	
  Section 9.01

  	
  Records

  	
   

  	
  17

  
	
  Section 9.02

  	
  Payment

  	
   

  	
  17

  
	
  Section 9.03

  	
  Discretion

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
  CLAIMS
  PROCEDURES

  	
   

  	
  18

  
	
  Section 10.01

  	
  Claim

  	
   

  	
  18

  
	
  Section 10.02

  	
  Initial Claim

  	
   

  	
  18

  
	
  Section 10.03

  	
  Appeals of
  Denied Administrative Claims

  	
   

  	
  18

  
	
  Section 10.04

  	
  Appointment of
  the Named Appeals Fiduciary

  	
   

  	
  19

  
	
  Section 10.05

  	
  Arbitration;
  Expenses

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
  MISCELLANEOUS

  	
   

  	
  20

  
	
  Section 11.01

  	
  Nonalienation of
  Benefits

  	
   

  	
  20

  
	
  Section 11.02

  	
  Notices

  	
   

  	
  20

  
	
  Section 11.03

  	
  Successors

  	
   

  	
  20

  
	
  Section 11.04

  	
  Other Payments

  	
   

  	
  20

  
	
  Section 11.05

  	
  No Mitigation

  	
   

  	
  20

  
	
  Section 11.06

  	
  No Contract of
  Employment

  	
   

  	
  20

  
	
  Section 11.07

  	
  Severability of
  Provisions

  	
   

  	
  20

  
	
  Section 11.08

  	
  Heirs, Assigns,
  and Personal Representatives

  	
   

  	
  21

  
	
  Section 11.09

  	
  Headings and
  Captions

  	
   

  	
  21

  
	
  Section 11.10

  	
  Gender and
  Number

  	
   

  	
  21

  
	
  Section 11.11

  	
  Unfunded Plan

  	
   

  	
  21

  
	
  Section 11.12

  	
  Payments to
  Incompetent Persons

  	
   

  	
  21

  
	
  Section 11.13

  	
  Lost Payees

  	
   

  	
  21

  
	
  Section 11.14

  	
  Controlling Law

  	
   

  	
  21

  
					

 

 iii

ARTICLE I

BACKGROUND, PURPOSE AND TERM OF
PLAN

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

Section
1.02                            Term
of the Plan.  The Plan shall
generally be effective as of the Effective Date and shall supersede any prior
plan, program or policy under which the Company or any Subsidiary provided
severance benefits prior to the Effective Date of the Plan.  The Plan shall continue until terminated
pursuant to Article VIII of the Plan.

ARTICLE
II

DEFINITIONS

Section
2.01                            “Alternative
Position” shall mean a position with the Company that:

(a)                                  is
not more than 50 miles each way from the location of the Employee’s current
position (for positions that are essentially mobile, the mileage does not
apply); and

(b)                                 provides
the Employee with pay and benefits (not including perquisites or long term
incentive compensation) that are comparable in the aggregate to the Employee’s
current position.

The Plan Administrator has the exclusive discretionary
authority to determine whether a position is an Alternative Position.

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

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

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

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

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

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

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

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

 2
 

Section
2.10                            “Effective
Date” shall mean the date of Separation.

Section
2.11                            “Eligible
Employee” shall mean an Employee employed in the United States who is an
Officer, or in career bands 1 and 2, who is not covered under any other
severance plan or program sponsored by the Company or a Subsidiary.  If there is any question as to whether an
Employee is deemed an Eligible Employee for purposes of the Plan, the Senior Vice
President — Human Resources of Covidien Ltd. shall make the determination.

Section
2.12                            “Employee”
shall mean an individual employed by Covidien Ltd. or a Subsidiary as a common
law employee on the United States payroll of Covidien Ltd. or a Subsidiary, and
shall not include any person working for the Company through a temporary
service or on a leased basis or who is hired by the Company as an independent
contractor, consultant, or otherwise as a person who is not an employee for
purposes of withholding federal employment taxes, as evidenced by payroll
records or a written agreement with the individual, regardless of any contrary
governmental or judicial determination or holding relating to such status or tax
withholding.

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

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

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

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

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

Section
2.18                            “Officer”
shall mean any individual who is an officer, as such term is defined pursuant
to Rule 16a-1(f) as promulgated under the Exchange Act, of the Company.  For purposes of this definition, Officer
shall also mean any officer of any of the Company’s Subsidiaries who performs
policy making functions, within the context of Rule 16a-1(f).

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

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

 3
 

Section
2.21                            “Plan”
means the Covidien Ltd. Severance Plan for U.S. Officers and Executives as set
forth herein, and as the same may from time to time be amended.

Section
2.22                            “Plan
Administrator” shall mean the individual(s) appointed by the Committee to
administer the terms of the Plan as set forth herein and if no individual is
appointed by the Committee to serve as the Plan Administrator for the Plan, the
Plan Administrator shall be the Senior Vice President — Human Resources,
Covidien Ltd. (or the equivalent). 
Notwithstanding the preceding sentence, in the event the Plan
Administrator is entitled to Severance Benefits under the Plan, the Committee
or its delegate shall act as the Plan Administrator for purposes of
administering the terms of the Plan with respect to the Plan
Administrator.  The Plan Administrator
may delegate all or any portion of its authority under the Plan to any other
person(s).

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

Section
2.24                            “Separation”
shall mean the date Tyco International Ltd. issues its public shareholders
stock dividends consisting of the common stock of Covidien Ltd. and Tyco
Electronics Ltd., as described in Forms 10 filed with the Securities and
Exchange Commission by Covidien Ltd. and Tyco Electronics Ltd. on January 18,
2007, as a result of which Covidien Ltd. is no longer a member of the Tyco
International Ltd. controlled group of corporations.

Section
2.25                            “Service”
shall mean the total number of years and completed months the Participant was
an Employee of the Company.  Service with
any predecessor employer or with a Subsidiary prior to the Subsidiary’s
becoming part of the Company shall be recognized only to the extent specified
in the merger or acquisition documentation relating to the Subsidiary.  Periods of authorized leave of absence, such
as military leave, will be included in Service only to the extent required by
applicable law.  Any period of employment
with the Company, a Subsidiary, or a predecessor employer for which an Eligible
Employee previously received severance benefits, shall be excluded from
Service.

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

Section
2.27                            “Severance
Period” shall mean the period during which a Participant is receiving
Severance Benefits under this Plan.

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

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

Section
2.30                            “Voluntary
Termination” shall mean any retirement or termination of employment that is
not initiated by the Company or any Subsidiary.

 4
 

ARTICLE
III

PARTICIPATION AND ELIGIBILITY FOR
BENEFITS

Section
3.01                            Participation.  Each Eligible Employee in the Plan who incurs
an Involuntary Termination and who satisfies the conditions of Section 3.02
shall be eligible to receive the Severance Benefits described in the Plan.  An Eligible Employee shall not be eligible to
receive any other severance benefits from the Company or Subsidiary on account
of an Involuntary Termination, unless otherwise provided in the Plan.  In addition, any Eligible Employee who is a
party to an employment agreement with the Company pursuant to which such
Eligible Employee is entitled to severance benefits shall be ineligible to
participate in the Plan.

Section
3.02                            Conditions.

(a)                                  Eligibility
for any Severance Benefits is expressly conditioned on (i) execution by the
Participant of a Release in the form provided by the Company; (ii) compliance
by the Participant with all the terms and conditions of such Release; (iii) the
Participant’s written agreement to the confidentiality, non-solicitation, and
non-disparagement provisions in Article VI during and after the Participant’s
employment with the Company; and (iv) execution of a written agreement that
authorizes the deduction of amounts owed to the Company prior to the payment of
any Severance Benefit (or in accordance with any other schedule as the
Committee may, in its sole discretion, determine to be appropriate).  If the Committee determines, in its sole
discretion, that the Participant has not fully complied with any of the terms
of the Agreement and/or Release, the Committee may deny Severance Benefits not
yet in pay status or discontinue the payment of the Participant’s Severance
Benefit and may require the Participant, by providing written notice of such
repayment obligation to the Participant, to repay any portion of the Severance
Benefit already received under the Plan. 
If the Committee notifies a Participant that repayment of all or any
portion of the Severance Benefit received under the Plan is required, such
amounts shall be repaid within thirty (30) calendar days of the date the
written notice is sent.  Any remedy under
this subsection (a) shall be in addition to, and not in place of, any other
remedy, including injunctive relief, that the Company may have.

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

(i)                                     The
Eligible Employee voluntarily terminates employment:

(ii)                                  The
Eligible Employee resigns employment before the job-end date specified by the
Employer or while the Employer still desires the Eligible Employee’s services;

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

(iv)                              The
Eligible Employee voluntarily retires;

 5
 

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

(vi)                              The
Eligible Employee does not return to work within six (6) months of the onset of
an approved leave of absence, other than a personal, educational or military
leave and/or as otherwise required by applicable statute;

(vii)                           The
Eligible Employee does not return to work within three (3) months of the onset
of a personal or educational leave of absence;

(viii)                        The
Eligible Employee continues in employment with the Company or a Subsidiary or
has the opportunity to continue in employment in the same or in an Alternative
Position with the Company or a Subsidiary; or

(ix)                                The
Eligible Employee’s employment with the Employer terminates as a result of a
sale of stock or assets of the Employer, merger, consolidation, joint venture
or a sale or outsourcing of a business unit or function, or other transaction,
and the Eligible Employee accepts employment, or has the opportunity to
continue employment in an Alternative Position, with the purchaser, joint
venture, or other acquiring or outsourcing entity, or a related entity of
either the Company or the acquiring entity. 
The payment of Severance Benefits in the circumstances described in this
subsection (ix) would result in a windfall to the Eligible Employee, which is
not the intention of the Plan.

(c)                                  The
Plan Administrator has the sole discretion to determine an Eligible Employee’s
eligibility to receive Severance Benefits.

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

 6
 

ARTICLE
IV

DETERMINATION OF SEVERANCE
BENEFITS

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

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

(b)                                 Salary
Continuation Benefits.  Salary
Continuation shall be provided during the Severance Period applicable to the
Participant as set forth in the Salary Continuation Schedule in the
Appendix.  During the Severance Period,
the Participant shall receive his or her Base Salary (net of deductions and tax
withholdings, as applicable) in equal installments over the Severance Period,
per normal payroll cycles.  The salary
continuation payments shall commence no earlier than the end of the revocation
period applicable to the Release. 
Notwithstanding the foregoing, for Participants whose benefit is
provided pursuant to a supplemental unemployment benefits trust, cash Severance
Benefits shall be paid for the period of time set forth under the plan, with
such trust being the exclusive source of all salary continuation payments other
than Notice Pay.

(c)                                  Bonus.

(i)                                     Participants
may be eligible for a cash payment equal to his or her pro rated annual bonus
for the year in which the Participant’s Termination Date occurs, subject to the
discretion of the Company and pursuant to the terms set forth in the applicable
incentive plans.

(ii)                                  Participants
shall also receive a bonus payment during the applicable Severance Period that
is equal to the amount set forth in the Bonus Payment Schedule in the Appendix.  The bonus payment shall be paid in cash to
the Participant in equal installments over the Severance Period (e.g., 12 month, 18 months or 24 months) or, in the sole
discretion of the Plan Administrator, may be paid to the Participant in a
single lump sum in lieu of payment over the Severance Period.  The bonus payment shall be paid at the same
time as the Salary Continuation Benefits.

 7
 

(d)                                 Medical,
Dental and Health Care Reimbursement Account Benefits.  The Participant shall continue to be eligible
to participate in the medical, dental and health care reimbursement account
coverage in effect at the date of his or her termination (or generally
comparable coverage) for himself or herself and, where applicable, his or her
spouse or domestic partner and dependents, as the same may be changed from time
to time for employees of the Company generally, as if Participant had continued
in employment during the Severance Period. 
The Participant shall be responsible for the payment of the employee
portion of the medical, dental and health care reimbursement account
contributions that are required during the Severance Period and such
contributions shall be made within the time period and in the amounts that
other employees are required to pay to the Company for similar coverage.  The Participant’s failure to pay the
applicable contributions shall result in the cessation of the applicable
medical and dental coverage for the Participant and his or her spouse or
domestic partner and dependents. 
Notwithstanding any other provision of this Plan to the contrary, in the
event that a Participant commences employment with another company at any time
during the Severance Period, the Participant shall cease receiving coverage
under the Company’s medical and dental plans. 
Within thirty (30) days of Participant’s commencement of employment with
another company, Participant shall provide the Company written notice of such
employment and provide information to the Company regarding the medical and dental
benefits provided to Participant by his or her new employer.  The COBRA Continuation Coverage Period under
section 4980B of the Code shall run concurrently with the Severance Period.

(e)                                  Stock
Options.  All stock options held by
the Participant as of his or her Termination Date which would have vested
during the twelve (12) month period occurring immediately after the Participant’s
Termination Date shall accelerate and become immediately vested on such
Termination Date, unless the Participant’s option agreement covering such
options provides for more favorable vesting treatment.  All outstanding stock options held by
Participant that are vested and exercisable as of the Termination Date and all
stock options held by the Participant that become vested on the Participant’s
Termination Date under this Plan shall be exercisable for the greater of (i)
the period set forth in Participant’s option agreement covering such options,
or (ii) twelve (12) months from the Participant’s Termination Date.  In no event, however, shall an option be
exercisable beyond its original expiration date.

(f)                                    Restricted  Stock. 
All unvested restricted stock and restricted stock units held by the
Participant as of his or her Termination Date shall be forfeited as of the
Termination Date.

(g)                                 Outplacement
Services.  The Company may, in its
sole and absolute discretion, pay the cost of outplacement services for the
Participant at the outplacement agency that the Company regularly uses for such
purpose; provided, however, that the period of
outplacement shall not exceed twelve (12) months from Participant’s Termination
Date.

(h)                                 In
the event that provision of any of the benefits in (d) above, would adversely
affect the tax status of the applicable plan or benefits, the Company, in its
sole discretion, may elect to pay to the Participant cash in lieu of such
coverage in an amount equal to the Company’s premium or average cost of
providing such coverage.

 8
 

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

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

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

 9
 

ARTICLE V

METHOD AND DURATION OF SEVERANCE
BENEFIT PAYMENTS

Section
5.01                            Method
of Payment.  The Severance
Benefit to which a Participant is entitled, as determined pursuant to Section
4.01, shall be paid in accordance with normal payroll practices over the
Severance Period by the Company or, if applicable, from a supplemental
unemployment benefits trust.  In no event
will interest be credited on the unpaid balance for which a Participant may
become eligible.  Payment shall be made
by mailing to the last address provided by the Participant to the Company or
such other reasonable method as determined by the Plan Administrator.  In general, the initial payments shall be
made as promptly as practicable after the Participant’s Termination Date, the
execution of the Release required under Section 3.02, and the expiration of the
required revocation period specified in the Release.  All payments of Severance Benefits are
subject to applicable federal, state and local taxes and withholdings.  In the event of the Participant’s death prior
to the completion of all payments being made, the remaining payments shall be
paid to the Participant’s estate.

Section
5.02                            Other
Arrangements.  The Severance
Benefits under this Plan are not additive or cumulative to severance or
termination benefits that a Participant might also be entitled to receive under
the terms of a written employment agreement, a severance agreement or any other
arrangement with the Employer.  As a
condition of participating in the Plan, the Eligible Employee must expressly
agree that this Plan supersedes all prior agreements, and sets forth the entire
Severance Benefit the Eligible Employee is entitled to while an Eligible
Employee in the Plan (provided, that any supplemental unemployment benefits
payable to an Eligible Employee under a supplemental unemployment benefits
trust or other supplemental unemployment benefits plan or arrangement shall be
deemed to be paid hereunder as a part of the Eligible Employee’s cash Severance
Benefits).  The provisions of this Plan
may provide for payments to the Eligible Employee under certain compensation or
bonus plans under circumstances where such plans would not provide for payment
thereof.  It is the specific intention of
the Company that the provisions of this Plan shall supersede any provisions to
the contrary in such plans, to the extent permitted by applicable law, and such
plans shall be deemed to be have been amended to correspond with this Plan
without further action by the Company or the Board.

Section
5.03                            Termination
of Eligibility for Benefits.

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

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

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

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

 10
 

Plan or the confidentiality, non-competition,
non-solicitation and non-disparagement provisions of Article VI.

 11
 

ARTICLE
VI

CONFIDENTIALITY, COVENANT NOT TO
COMPETE AND NOT TO SOLICIT

Section
6.01                            Confidential
Information.  The Eligible Employee agrees that he or she
shall not, directly or indirectly, use, make available, sell, disclose or
otherwise communicate to any person, other than in the course of the Eligible
Employee’s assigned duties and for the benefit of the Company, either during
the period of the Eligible Employee’s employment or at any time thereafter, any
nonpublic, proprietary or confidential information, knowledge or data relating
to the Company, any of its Subsidiaries, affiliated companies or businesses,
which shall have been obtained by the Eligible Employee during the Eligible
Employee’s employment by the Company or a Subsidiary.  The foregoing shall not apply to information
that (i) was known to the public prior to its disclosure to the Eligible
Employee; (ii) becomes known to the public subsequent to disclosure to the
Eligible Employee through no wrongful act of the Eligible Employee or any
representative of the Eligible Employee; or (iii) the Eligible Employee is
required to disclose by applicable law, regulation or legal process (provided
that the Eligible Employee provides the Company with prior notice of the
contemplated disclosure and reasonably cooperates with the Company at its
expense in seeking a protective order or other appropriate protection of such
information).  Notwithstanding clauses
(i) and (ii) of the preceding sentence, the Eligible Employee’s obligation to
maintain such disclosed information in confidence shall not terminate where
only portions of the information are in the public domain.

Section
6.02                            Non-Competition.  The Participant acknowledges that he or she
performs services of a unique nature for the Company that are irreplaceable,
and that his or her performance of such services for a competing business will
result in irreparable harm to the Company. 
Accordingly, during the Participant’s employment with the Company or
Subsidiary and for the one (1) year period thereafter, the Participant agrees
that the Participant will not, directly or indirectly, own, manage, operate,
control, be employed by (whether as an employee, consultant, independent
contractor or otherwise, and whether or not for compensation) or render
services to any person, firm, corporation or other entity, in whatever form,
engaged in any business of the same type as any business in which the Company
or any of its Subsidiaries or affiliates is engaged on the date of termination
or in which they have proposed, on or prior to such date, to be engaged in on
or after such date and in which the Participant has been involved to any extent
(other than de minimis) at any time during the one (1) year period ending with
the date of termination, in any locale of any country in which the Company or
any of its Subsidiaries conducts business. 
This Section 6.02 shall not prevent the Participant from owning not more
than one percent of the total shares of all classes of stock outstanding of any
publicly held entity engaged in such business, nor will it restrict the
Participant from rendering services to charitable organizations, as such term
is defined in section 501(c) of the Code.

Section
6.03                            Non-Solicitation.  During the Eligible Employee’s employment
with the Company or a Subsidiary and for the two (2) year period thereafter,
the Eligible Employee agrees that he or she will not, directly or indirectly,
individually or on behalf of any other person, firm, corporation or other
entity, knowingly solicit, aid or induce (i) any employee of the Company or any
Subsidiary, as defined by the Company, to leave such employment in order to
accept employment with or render services to or with any other person, firm,
corporation or other entity unaffiliated with the Company or knowingly take any
action to materially assist or aid any other person, firm, corporation or other
entity in identifying or hiring any such employee, or (ii) 

 12
 

any customer of the Company or any Subsidiary to
purchase goods or services then sold by the Company or any Subsidiary from
another person, firm, corporation or other entity or assist or aid any other
persons or entity in identifying or soliciting any such customer.

Section
6.04                            Non-Disparagement.  Each of the Eligible Employee and the Company
(for purposes hereof, the Company shall mean only the executive officers and
directors thereof and not any other employees) agrees not to make any
statements that disparage the other party, or in the case of the Company or its
Subsidiaries, their respective affiliates, employees, officers, directors,
products or services.  Notwithstanding
the foregoing, statements made in the course of sworn testimony in
administrative, judicial or arbitral proceedings (including, without
limitation, depositions in connection with such proceedings) shall not be
subject to this Section 6.04.

Section
6.05                            Reasonableness.  In the event the provisions of this Article
VI shall ever be deemed to exceed the time, scope or geographic limitations
permitted by applicable laws, then such provisions shall be reformed to the
maximum time, scope or geographic limitations, as the case may be, permitted by
applicable laws.

Section
6.06                            Equitable
Relief.

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

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

(c)                                  The
Eligible Employee irrevocably and unconditionally (i) agrees that any suit,
action or other legal proceeding arising out of this Article VI, including
without limitation, any action commenced by the Company for preliminary and
permanent injunctive relief or other equitable relief, may be brought in the
United States District Court for the District of Massachusetts, or if such
court does not have jurisdiction or will not accept jurisdiction, in any court
of general jurisdiction in Massachusetts, (ii) consents to the non-exclusive
jurisdiction of 

 13
 

any such court in any such suit, action or proceeding,
and (iii) waives any objection which Participant may have to the laying of
venue of any such suit, action or proceeding in any such court.  Participant also irrevocably and
unconditionally consents to the service of any process, pleadings, notices or
other papers in a manner permitted by the notice provisions of Section 11.02.

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

 14
 

ARTICLE
VII

THE PLAN ADMINISTRATOR

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

Section
7.02                            Compensation
of the Plan Administrator.  The
Plan Administrator shall receive no compensation for services as such.  However, all reasonable expenses of the Plan
Administrator shall be paid or reimbursed by the Company upon proper
documentation.  The Plan Administrator
shall be indemnified by the Company against personal liability for actions
taken in good faith in the discharge of the Plan Administrator’s duties.

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

 15
 

ARTICLE
VIII

AMENDMENT, TERMINATION AND
DURATION

Section
8.01                            Amendment,
Suspension and Termination. 
Except as otherwise provided in this Section 8.01, the Board or its
delegee shall have the right, at any time and from time to time, to amend,
suspend or terminate the Plan in whole or in part, for any reason or without
reason, and without either the consent of or the prior notification to any
Participant, by a formal written action. 
No such amendment shall give the Company the right to recover any amount
paid to a Participant prior to the date of such amendment or to cause the
cessation of Severance Benefits already approved for a Participant who has
executed a Release as required under Section 3.02.

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

 16
 

ARTICLE
IX

DUTIES OF THE COMPANY AND THE
COMMITTEE

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

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

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

 17
 

ARTICLE X

CLAIMS PROCEDURES

Section
10.01                     Claim.  Each Participant under this Plan may contest
only the administration of the Severance Benefits awarded by completing and
filing with the Plan Administrator a written request for review in the manner
specified by the Plan Administrator.  No
appeal is permissible as to a Participant’s eligibility for or amount of the
Severance Benefit, which are decisions made solely within the discretion of the
Company, and the Committee acting on behalf of the Company.  No person may bring an action for any alleged
wrongful denial of Plan benefits in a court of law unless the claims procedures
described in this Article X are exhausted and a final determination is made by
the Plan Administrator and/or the Named Appeals Fiduciary.  If the terminated Participant or interested
person challenges a decision by the Plan Administrator and/or Named Appeals
Fiduciary, a review by the court of law will be limited to the facts, evidence
and issues presented to the Plan Administrator during the claims procedure set
forth in this Article X.  Facts and
evidence that become known to the terminated Participant or other interested
person after having exhausted the claims procedure must be brought to the
attention of the Plan Administrator for reconsideration of the claims
administrator.  Issues not raised with
the Plan Administrator and/or Named Appeals Fiduciary will be deemed waived.

Section
10.02                     Initial
Claim.  Before the date on which
payment of a Severance Benefit commences, each such application must be
supported by such information as the Plan Administrator deems relevant and
appropriate.  In the event that any claim
relating to the administration of Severance Benefits is denied in whole or in
part, the terminated Participant or his or her beneficiary (“claimant”) whose
claim has been so denied shall be notified of such denial in writing by the
Plan Administrator within ninety (90) days after the receipt of the claim for
benefits.  This period may be extended an
additional ninety (90) days if the Plan Administrator determines such extension
is necessary and the Plan Administrator provides notice of extension to the
claimant prior to the end of the initial ninety (90) day period.  The notice advising of the denial shall
specify the following: (i) the reason or reasons for denial, (ii) make specific
reference to the Plan provisions on which the determination was based, (iii)
describe any additional material or information necessary for the claimant to
perfect the claim (explaining why such material or information is needed), and
(iv) describe the Plan’s review procedures and the time limits applicable to
such procedures, including a statement of the claimant’s right to bring a civil
action under section 502(a) of ERISA following an adverse benefit determination
on review.

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

(a)                                  A
claimant whose claim has been denied shall file with the Plan Administrator a
notice of appeal of the denial.  Such
notice shall be filed within sixty (60) calendar days of notification by the
Plan Administrator of the denial of a claim, shall be made in writing, and
shall set forth all of the facts upon which the appeal is based.  Appeals not timely filed shall be barred.

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

 18
 

(c)                                  The
Named Appeals Fiduciary shall render a determination upon the appealed claim
which determination shall be accompanied by a written statement as to the
reasons therefor.  The determination
shall be made to the claimant within sixty (60) days of the claimant’s request
for review, unless the Names Appeals Fiduciary determines that special
circumstances requires an extension of time for processing the claim.  In such case, the Named Appeals Fiduciary
shall notify the claimant of the need for an extension of time to render its
decision prior to the end of the initial sixty (60) day period, and the Named
Appeals Fiduciary shall have an additional sixty (60) day period to make its
determination.  The determination so
rendered shall be binding upon all parties. 
If the determination is adverse to the claimant, the notice shall
provide (i) the reason or reasons for denial, (ii) make specific reference to
the Plan provisions on which the determination was based, (iii) a statement
that the claimant is entitled to receive, upon request and free of charge, reasonable
access to, and copies of, all documents, records and other information relevant
to a the claimant’s claim for benefits, and (iv) state that the claimant has
the right to bring an action under section 502(a) of ERISA.

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

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

 19
 

ARTICLE
XI

MISCELLANEOUS

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

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

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

Section
11.04                     Other
Payments.  Except as otherwise
provided in this Plan, no Participant shall be entitled to any cash payments or
other severance benefits under any of the Company’s then current severance pay
policies for a termination that is covered by this Plan for the Participant.

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

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

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

 20
 

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

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

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

Section
11.11                     Unfunded
Plan.  The Plan shall not be
funded (except to the extent that any benefits payable hereunder are payable
from a supplemental unemployment benefits trust).  No Participant shall have any right to, or
interest in, any assets of the Company that may be applied by the Company to
the payment of Severance Benefits.

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

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

Section
11.14                     Controlling
Law.  This Plan shall be
construed and enforced according to the laws of the Commonwealth of
Massachusetts to the extent not superseded by Federal laws.

 21

Appendix

Salary
Continuation Schedule

	
  Chief Executive Officer

  	
   

  	
  24 month

  Severance Period

  
	
   

  	
   

  	
   

  
	
  Executive Vice President and Chief Financial
  Officer, Senior Vice Presidents and Presidents of business whose annual
  revenue is $1.5 billion or more

  	
   

  	
  18 month

  Severance Period

  
	
   

  	
   

  	
   

  
	
  Any other Global Business Unit Presidents, any other
  Officer and any other Band 1 or Band 2 Eligible Employee

  	
   

  	
  12 month

  Severance Period

  

 

Bonus Payment Schedule

	
  Chief Executive Officer

  	
   

  	
  2x Annual Bonus

  
	
   

  	
   

  	
   

  
	
  Executive Vice President and Chief Financial
  Officer, Senior Vice Presidents and Presidents of business whose annual
  revenue is $1.5 billion or more

  	
   

  	
  1.5x Annual Bonus

  
	
   

  	
   

  	
   

  
	
  Any other Global Business Unit Presidents, any other
  Officer and any other Band 1 or Band 2 Eligible Employee

  	
   

  	
  1x Annual Bonus

  

 

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