Document:

EX-10.1

 Exhibit 10.1 
 EXECUTION VERSION 
 TAX MATTERS AGREEMENT 

This Tax Matters Agreement (this “Agreement”) is entered into as of June 28, 2013 between Covidien plc, a
corporation organized under the laws of Ireland (“Covidien”), and Mallinckrodt plc, a corporation organized under the laws of Ireland (“Mallinckrodt” and, together with Covidien, the “Parties”).
Capitalized terms used in this Agreement and not otherwise defined herein shall have the meanings ascribed to such terms in the Separation and Distribution Agreement, dated as of the date hereof, between Covidien and Mallinckrodt (the
“Distribution 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, Mallinckrodt has been incorporated for these purposes and has not engaged in activities except those
incidental to its formation and in preparation for the Distribution; 
 WHEREAS, Covidien will effect the restructuring
transactions described in the Plan of Reorganization (as defined in the Distribution Agreement) for the purpose of aggregating the Mallinckrodt Business in the Mallinckrodt Group prior to the Distribution (collectively, the
“Reorganization”); 
 WHEREAS, Covidien currently intends that, on the Distribution Date, it will make a
distribution in specie of the Mallinckrodt Business to the holders of Covidien Ordinary Shares on the Record Date (“Qualifying Covidien Shareholders”), effected by (i) the transfer of Covidien’s entire legal and beneficial
interest in the issued share capital of the Mallinckrodt Holding Companies to Mallinckrodt; and (ii) Mallinckrodt issuing Mallinckrodt Ordinary Shares directly to Qualifying Covidien Shareholders on a pro rata basis in return, as more fully
described in the Distribution Agreement (the “Distribution”); 
 WHEREAS, the Parties intend that the
Distribution will qualify as a non-taxable transaction pursuant to Section 355 of the Code; and 
 WHEREAS, the Parties
desire to set forth their rights and obligations with respect to Taxes due for periods before and after the Distribution Date. 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto
agree as follows: 

 ARTICLE I 
 DEFINITIONS 
 1.01 GENERAL. As used in this Agreement, the following
terms shall have the following meanings: 
 “2007 TCE TSA” shall mean the Tax Sharing
Agreement entered into as of June 29th, 2007 by and
among Tyco International Ltd., Covidien, and Electronics Ltd. 
 “2007 TCE TSA Tax Contest” shall mean any Tax
Contest which is subject to the provisions of, or the administration and settlement of which is otherwise governed by or described in, the 2007 TCE TSA. 
 “Active Business” shall mean, with respect to the Distribution, the business conducted by the relevant ATOB Entities as of the Distribution Date, or, with respect to any other relevant
transaction described in the Plan of Reorganization, the business conducted by the relevant ATOB Entities as of the date of such transaction. 
 “Adjustment Request” shall mean any formal or informal claim or request filed with any Governmental Entity, or with any administrative agency or court, for the adjustment, refund, or
credit of Taxes, including (i) any amended Tax Return claiming adjustment to the Taxes as reported on the Tax Return or, if applicable, as previously adjusted, (ii) any claim for equitable recoupment or other offset, and (iii) any
claim for refund or credit of Taxes previously paid. 
 “Affiliate” shall have the meaning set forth in the
Distribution Agreement. 
 “Agreement” shall have the meaning set forth in the preamble hereto. 

“Ancillary Agreement” shall have the meaning set forth in the Distribution Agreement. 

“ATOB Entities” shall mean the Section 355 ATOB Entities, the Belgium ATOB Entities, the Poland ATOB Entities, and
the Spain ATOB Entities. 
 “Audit Management Party” shall have the meaning set forth in the 2007 TCE TSA.

 “Belgium ATOB Entities” shall mean the entities listed on Schedule A. 

“Belgium Restricted Transfer Entities” shall mean the entities listed on Schedule B. 

“Business Day” shall mean any day except a Saturday, Sunday or a day on which a commercial bank in New York, New York or
Dublin, Ireland is authorized or required to close. 

  
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 “Canada Restricted Transfer Entities” shall mean the entities listed on
Schedule C. 
 “Controlling Party” shall mean, with respect to a Tax Contest, the Party entitled to control
such Tax Contest pursuant to Articles 6.02 and 6.03 of this Agreement. 
 “Covidien” shall have the meaning set
forth in the preamble hereto. 
 “Covidien Businesses” shall mean the businesses and operations of the Covidien
Group other than the Mallinckrodt Business. 
 “Covidien Controlled Tax Contests” shall have the meaning set
forth in Article 6.02. 
 “Covidien Group” shall mean Covidien and its Affiliates, as well as any entity that
becomes an Affiliate of Covidien after the date hereof, excluding any entity that is a member of the Mallinckrodt Group. 

“Covidien Ordinary Shares” shall have the meaning set forth in the Distribution Agreement. 

“Covidien Separation Tax” shall mean (i) any Separation Tax to the extent that the liability for such Tax does not
exceed the amount listed on Schedule I with respect to such Tax and (ii) to the extent that the liability for such Separation Tax exceeds the amount listed on Schedule I with respect to such Tax, the portion of such excess for which neither
Mallinckrodt nor any member of the Mallinckrodt Group is obligated under applicable Law to pay; provided, that, for all purposes of this Agreement, the Distribution Agreement and each Ancillary Agreement, Covidien shall be treated as having
paid any such Tax to the extent such Tax was paid or otherwise satisfied on or prior to the Distribution Date regardless of which Party or members of its Group paid or otherwise satisfied such Tax. 

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

“Current Taxes” shall mean any and all Specified Taxes, other than Separation Taxes and Unanticipated Separation Taxes,
which are imposed on or with respect to a taxable period or portion thereof which (i) includes the Distribution Date, (ii) ended on or before the Distribution Date but with respect to which the date prescribed by law for the filing of the
applicable Tax Return is after the Distribution Date (without taking into account any applicable extensions or any Tax Returns attributable to estimated, quarterly, or other similar payments or prepayments of Taxes), or (iii) begins after the
Distribution Date. 
 “Dispute” shall have the meaning set forth in Article 9.01. 

“Distribution” shall have the meaning set forth in the recitals. 

“Distribution Agreement” shall have the meaning set forth in the preamble hereto. 

  
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 “Distribution Date” shall have the meaning set forth in the Distribution
Agreement. 
 “Employee Matters Agreement” shall mean the Employee Matters Agreement dated as of the date
hereof by and among Covidien and Mallinckrodt. 
 “Employment Tax” shall mean those Liabilities (as defined in
the Distribution Agreement) for Taxes which are allocable pursuant to the provisions of the Employee Matters Agreement. 

“Final Determination” shall mean the final resolution of liability for any Tax, which resolution may be for a specific
issue or adjustment or for a taxable period, 
 (i) by an acceptance on an IRS Form 870 or 870-AD (or any
successor forms thereto), or by a comparable form or agreement pursuant to the laws of a state, local, or non-United States taxing jurisdiction, except that acceptance on an IRS Form 870 or 870-AD or comparable form or agreement shall not constitute
a Final Determination to the extent that such form or agreement reserves (whether by its terms or by operation of Law) the right of the taxpayer to file a claim for refund or the right of the Taxing Authority to assert a further deficiency in
respect of such issue or adjustment or for such taxable period (as the case may be); 
 (ii) by a decision,
judgment, decree, or other order of a court of competent jurisdiction which is or has become final and unappealable; 
 (iii) by a closing agreement or accepted offer in compromise pursuant to Sections 7121 or 7122 of the Code, or a comparable agreement pursuant to the laws of a state, local, or non-United States
jurisdiction; 
 (iv) by any allowance of a refund or credit in respect of an overpayment of a Tax, but only
after the expiration of all periods during which such refund may be recovered (including by way of offset) or, where such periods are undefined or indefinite, in accordance with ordinary course limitation periods, by the jurisdiction imposing such
Tax; 
 (v) by a final settlement resulting from a treaty-based competent authority determination; or

 (vi) by any other final disposition, including by reason of the expiration of the applicable statute of
limitations or by mutual agreement of the Parties. 
 “Germany Restricted Transfer Entities” shall mean the
entities listed on Schedule D. 
 “Governmental Entity” shall mean shall mean any United States federal, state,
local or non-United States court, government (or political subdivision thereof), department, commission, board, bureau, agency, official or other regulatory, administrative or governmental authority. 

  
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 “Group” shall mean either the Mallinckrodt Group or the Covidien Group, as
the context requires. 
 “Identified Tax Return” shall mean any Tax Return reporting or otherwise relating to,
addressing, or describing any Income Tax, Separation Tax, or Unanticipated Separation Tax, whether directly or indirectly. 

“Income Tax” shall mean any federal, state, local or Non-United States Tax determined by reference to income, gains, net
worth, gross receipts, or any Taxes imposed in lieu of such a Tax. 
 “Indemnified Party” shall have the
meaning set forth in Article 5.02. 
 “Indemnifying Party” shall have the meaning set forth in Article 5.02.

 “IRS” shall mean the United States Internal Revenue Service. 

“Law” shall mean any United States or non-United States federal, national, supranational, state, provincial, local or
similar statute, law, ordinance, regulation, rule, code, administrative pronouncement, order, requirement or rule of law (including common law), or any tax treaty. 
 “Local Separation Agreement” shall mean each of the asset transfer agreements, share transfer agreements, business transfer agreements, certificates of demerger and merger and other
agreements and instruments that provide for or effect the separation of the Mallinckrodt Business from the Covidien Business, as contemplated by the Plan of Reorganization. 
 “Mallinckrodt” shall have the meaning set forth in the preamble hereof. 
 “Mallinckrodt Assumed Tax Rate” shall mean the highest marginal income Tax rate, as determined in Mallinckrodt’s reasonable discretion and reasonably satisfactory to Covidien, taking
into account all potentially applicable Taxes (federal, state, local, and non-United States), applicable to the applicable member or members of the Mallinckrodt Group. 
 “Mallinckrodt Business” shall have the meaning set forth in the Distribution Agreement. 
 “Mallinckrodt Controlled Tax Contests” shall have the meaning set forth in Article 6.03. 
 “Mallinckrodt Group” shall mean (i) Mallinckrodt and its Affiliates, as determined immediately after the Distribution Date, (ii) any entity which (A) was an Affiliate of
Covidien or an Affiliate of a member of the Mallinckrodt Group, (B) conducted solely or predominantly the Mallinckrodt Business, and (C) is no longer an Affiliate of Covidien as of the Distribution Date, as well as (iii) any entity
that becomes an Affiliate of Mallinckrodt after the date hereof. 

  
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 “Mallinckrodt Historic Tax Liability” shall mean any liability for
Specified Taxes (including, for the avoidance of doubt, a liability imposed pursuant to Section 1.1502-6 of the Treasury Regulations or any other similar provision of state, local, or foreign Law) where Mallinckrodt or any member of the
Mallinckrodt Group is obligated under applicable Law to (x) pay such Specified Taxes or (y) file a Tax Return with respect to such Specified Taxes, in each case other than a liability for 

(i) Current Taxes; 
 (ii) Separation Taxes; 
 (iii) Unanticipated Separation Taxes; 

(iv) Income Taxes imposed by the United States federal government if and to the extent 

(A) the entity on which such Income Tax is imposed was, during the relevant taxable period or portion thereof, a member of a
“consolidated group” (as defined in Section 1.1502-1(h) of the Treasury Regulations) and 
 (B) neither
Mallinckrodt nor any member of the Mallinckrodt Group was the “common parent” of such consolidated group (as such term is used Section 1504 of the Code and the Treasury Regulations promulgated under Section 1502 of the Code)
during such relevant taxable period or portion thereof; and 
 (v) Income Taxes imposed by the government of any state of the
United States if and to the extent 
 (A) the entity on which such Income Tax is imposed was, during the relevant taxable
period or portion thereof, a member of a consolidated, unitary, combined, or other similar group (as defined for purposes of such state’s Tax law) and 
 (B) neither Mallinckrodt nor any member of the Mallinckrodt Group was the “parent,” “common parent,” “principal,” “named,” “key,” or other similar company
or entity with respect to such consolidated, unitary, combined, or other similar group (as determined for purpose of such state’s Tax law) during such relevant taxable period or portion thereof. 

“Mallinckrodt Holding Companies” shall mean Mallinckrodt International Finance S.A. and Mallinckrodt Belgium BVBA.

 “Mallinckrodt Ordinary Shares” shall have the meaning set forth in the Distribution Agreement. 

  
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 “Mallinckrodt Refund Amount” shall mean a Refund of any Tax listed on
Schedule K to the extent that the aggregate amount of such Tax which is Refunded does not exceed the amount listed on Schedule K with respect to such Tax. 
 “Mallinckrodt Separation Tax” shall mean any Separation Tax to the extent that the liability for such Tax is not a Covidien Separation Tax. 

“Mallinckrodt Tax Liability Cap” shall mean an amount equal to two hundred million United States dollars
(US$200,000,000). 
 “Netherlands Restricted Transfer Entities” shall mean the entities listed on Schedule E.

 “Non-Controlling Party” shall mean, with respect to a Tax Contest, the Party that is not entitled to control
such Tax Contest pursuant to Articles 6.02 and 6.03 of this Agreement. 
 “Non-United States Taxes” shall mean
all Taxes imposed by any jurisdiction other than the United States, or any political subdivision thereof. 
 “Other
Tax” shall mean any Tax imposed by any Governmental Entity other than any (i) Income Taxes, (ii) Employment Taxes, (iii) Separation Taxes, (iv) Unanticipated Separation Taxes, and (v) any interest, penalties,
additions to tax, or additional amounts in respect of (i) through (iv) inclusive. 
 “Parties” shall
have the meaning set forth in the preamble hereto. 
 “Past Practices” shall have the meaning set forth in
Article 3.05. 
 “Person” shall mean an individual, a partnership, a corporation, a limited liability company,
an association, a joint stock company, a trust, a joint venture, an unincorporated organization or a governmental entity or any department, agency or political subdivision thereof, without regard to whether any entity is treated as disregarded for
United States federal income Tax purposes. 
 “Plan of Reorganization” shall have the meaning set forth in the
Distribution Agreement. 
 “Poland ATOB Entities” shall mean the entities listed on Schedule F. 

“Post-Distribution Period” shall mean any taxable year or other taxable period beginning after the Distribution Date.

 “Pre-Distribution Period” shall mean any taxable year or other taxable period that ends on or before the
Distribution Date. 
 “Preliminary Tax Advisor” shall have the meaning set forth in Article 8.01. 

  
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 “Prime Rate” shall have the meaning set forth in the Distribution
Agreement. 
 “Privilege” shall mean any privilege that may be asserted pursuant to applicable law, including,
any privilege arising pursuant to or relating to the attorney-client relationship (including the attorney-client and work product privileges), the accountant-client privilege and any privilege relating to internal evaluation processes. 

“Pro Forma Returns” shall have the meaning set forth in Article 5.03(c). 

“Prohibited Acts” shall have the meaning set forth in Article 4.02. 

“Proposed Acquisition Transaction” shall mean a transaction or series of related transactions (or any agreement,
understanding, arrangement or substantial negotiations, within the meaning of Section 355(e) of the Code and the Treasury Regulations promulgated thereunder, to enter into a transaction or series of related transactions), whether such
transaction is supported by Mallinckrodt management or shareholders, is a hostile acquisition, or otherwise, as a result of which Mallinckrodt (or any successor thereto) would merge or consolidate with any other Person or as a result of which any
Person or any group of related Persons would (directly or indirectly) acquire, or have the right to acquire (through an option or otherwise) from Mallinckrodt (or any successor thereto) and/or one or more holders of Mallinckrodt Ordinary Shares,
respectively, any amount of stock of Mallinckrodt, that would, when combined with any other changes in ownership of the stock of Mallinckrodt pertinent for purposes of Section 355(e) of the Code and the Treasury Regulations promulgated
thereunder, comprise more than thirty-five percent (35%) of (i) the value of all outstanding shares of Mallinckrodt as of the date of such transaction, or in the case of a series of transactions, the date of the last transaction of such
series, or (ii) the total combined voting power of all shares of voting stock of Mallinckrodt as of the date of such transaction, or in the case of a series of transactions, the date of the last transaction of such series. Notwithstanding the
foregoing, a Proposed Acquisition Transaction shall not include (i) the adoption by Mallinckrodt of a shareholder rights plan or (ii) issuances by Mallinckrodt that satisfy Safe Harbor VIII (relating to acquisition in connection with a
person’s performance of services) or Safe Harbor IX (relating to acquisitions by a retirement plan of an employer) of Treasury Regulation Section 1.355-7(d). For purposes of determining whether a transaction constitutes an indirect
acquisition, any recapitalization resulting in a shift of voting power or any redemption of shares of stock (including any redemption of Mallinckrodt equity pursuant to the exception in Article 4.02(a)(viii)) shall be treated as an indirect
acquisition of stock by the non-exchanging shareholders. This definition and the application thereof is intended to monitor compliance with Section 355(e) of the Code and the Treasury Regulations promulgated thereunder and shall be interpreted
accordingly. 
 “Qualifying Covidien Shareholders” shall have the meaning set forth in the recitals.

  
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 “Reasonable Basis” shall mean reasonable basis within the meaning of
Section 6662(d)(2)(B)(ii)(II) of the Code and the Treasury Regulations promulgated thereunder (or such other level of confidence required by the Code at that time to avoid the imposition of penalties). 

“Record Date” shall have the meaning set forth in the Distribution Agreement. 

“Refund” shall mean any refund, reimbursement, offset, credit, or other similar benefit in respect of Taxes (including
any overpayment of Taxes that can be refunded or, alternatively, applied against future Taxes payable) together with any interest paid on or with respect to such refund of Taxes; provided, however, that the amount of any refund of
Taxes shall be net of any Taxes imposed by any Taxing Authority on the receipt of the refund, including any Taxes imposed by way of withholding or offset. 
 “Reorganization” shall have the meaning set forth in the recitals. 
 “Responsible Party” shall mean, with respect to any Tax Return, the Party having responsibility for preparing and filing such Tax Return pursuant to this Agreement. 

“Restricted Period” shall mean: 

(i) with respect to the Section 355 Entities, the Section 355 ATOB Entities, the Canada Restricted Transfer
Entities, and the Poland ATOB Entities, the period which begins with the Distribution Date and ends two (2) years thereafter; 
 (ii) with respect to the Belgium Restricted Transfer Entities, the Belgium ATOB Entities, and the Netherlands Restricted Transfer Entities, the period which begins with the Distribution Date and ends
three (3) years thereafter; and 
 (iii) with respect to the Germany Restricted Transfer Entities and the
Spain ATOB Transfer Entities, the period which begins with the Distribution Date and ends five (5) years thereafter. 

“Restricted Transfer Entities” shall mean the Section 355 Entities, Belgium Restricted Transfer Entities, the
Canada Restricted Transfer Entities, the Germany Restricted Transfer Entities, and the Netherlands Restricted Transfer Entities. 
 “Ruling” shall mean (i) the private letter ruling issued by the IRS to Covidien on March 1, 2013, (ii) the Canadian ruling issued by the Canada Revenue Agency to Covidien
on April 25, 2013, (iii) the Irish rulings issued by Tom Connor of the Irish Revenue Commissioners to Arthur Cox, acting on behalf of Covidien, on March 15, 2013 and to PricewaterhouseCoopers LLP, acting on behalf of Covidien, on
March 12, 2013 and April 18, 2013, or (iv) any other ruling issued by a Taxing Authority, in each case in connection with the Reorganization and/or Distribution. 

  
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 “Ruling Request” shall mean (i) the request for rulings submitted by
Covidien to the IRS on August 30, 2012, as supplemented and amended on each of December 12, 2012; January 23, 2013; and February 28, 2013, (ii) the request for rulings submitted by Covidien to the Canada Revenue Agency
on August 21, 2012, as supplemented and amended, (iii) the request for rulings submitted by Arthur Cox, acting on behalf of Covidien, to the Irish Revenue Commissioners on November 16, 2012, and by PricewaterhouseCoopers LLP, acting
on behalf of Covidien, to the Irish Revenue Commissioners on November 23, 2012, or (iv) any other ruling request submitted to a Taxing Authority, in each case including the exhibits attached thereto, and all related supplements.

 “Section 355 ATOB Entities” shall mean the entities listed on Schedule G. 

“Section 355 Entities” shall mean the entities listed on Schedule H. 

“Separation Taxes” shall mean those Taxes listed on Schedule I, in each case, without regard to (x) the amounts
shown on Schedule I and (y) whether such Taxes arose, resulted or were incurred, or were paid or otherwise satisfied, prior to, on, or after the Distribution Date, arising as a result of (A) the Distribution or (B) the Reorganization
or any transaction associated therewith as described in any Ruling, the Distribution Agreement, or any Local Separation Agreement, except for (i) any Tax resulting from a breach by any Party of any covenant in this Agreement or any Ancillary
Agreement, and (ii) any Tax attributable to a Prohibited Act. 
 “Spain ATOB Entities” shall mean the
entities listed on Schedule J. 
 “Specified Taxes” shall mean all Taxes other than Employment Taxes and Other
Taxes. 
 “Straddle Period” shall mean any taxable year or other taxable period that begins on or before the
Distribution Date and ends after the Distribution Date. 
 “Subsidiary” shall have the meaning set forth in the
Distribution Agreement. 
 “Tax” or “Taxes” shall mean (i) all taxes, charges, fees,
duties, levies, imposts, rates or other assessments or governmental charges of any kind imposed by any federal, state, local or non-United States Governmental Entity, including, without limitation, income, gross receipts, employment, excise,
severance, stamp, occupation, premium, windfall profits, environmental, custom duties, property, sales, use, license, capital stock, transfer, franchise, registration, payroll, withholding, social security, unemployment, disability, value added,
alternative or add-on minimum or other taxes, whether disputed or not, and including any interest, penalties, charges or additions attributable thereto, (ii) liability for the payment of any amount of the type described in clause (i) above
arising as a result of being (or having been) a member of any group or being (or having been) included or required to be included in any Tax Return related thereto, and (iii) liability for the payment of any amount of the type described in
clauses (i) or (ii) above as a result of any express or implied obligation to indemnify or otherwise assume or succeed to the liability of any other Person. 

  
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 “Tax Advisor” shall have the meaning set forth in Article 9.01. 

“Tax Attribute” shall mean net operating losses, capital losses, investment tax credit carryovers, earnings and profits,
foreign tax credit carryovers, overall foreign losses, previously taxed income, separate limitation losses and any other losses, deductions, credits or other comparable items that could affect a Tax liability for a past or future taxable period.

 “Tax Benefit Amount” shall mean, with respect to the payment of a liability by a Party or any of its
Subsidiaries, an amount equal to the reduction in Taxes due and payable during the Tax Benefit Period resulting from the payment of such liability, as determined at any relevant time (including, for the avoidance of doubt, at any time during the Tax
Benefit Period), which for each taxable period during the Tax Benefit Period, shall equal the sum of: 
 (a) the
excess (if any) of (i) the amount of Taxes that the Party and its Subsidiaries would have owed in such taxable period had there been no payment of or event giving rise to such liability (without taking into account any carryforwards or
carrybacks of any deductions, credits, losses or other Tax Attributes to such taxable period), over (ii) the amount of Taxes that the Party and its Subsidiaries would have owed in such taxable period after taking into account such payment
(without taking into account any carryforwards or carrybacks of any deductions, credits, losses or other Tax Attributes to such taxable period other than such deductions, credits, losses, or other Tax Attributes, if any, arising as a result of the
payment of such liability); and 
 (b) the excess (if any) of (i) the amount of the Refund that would be
realized by the Party and its Subsidiaries with respect to such taxable period as a result of the carryback of deductions, credits, losses or other Tax Attributes attributable to such payment to such taxable period (without taking into account any
other carryforwards or carrybacks of any deductions, credits, losses or other Tax Attributes to such taxable period), over (ii) the amount of the Refund that the Party and its Subsidiaries would have been entitled to realize with respect to
such taxable period (without taking into account any carryforwards or carrybacks of any deductions, credits, losses or other Tax Attributes to such taxable period). 

The Tax Benefit Amount shall be computed based on the actual tax rates applicable to the Party and its Subsidiaries
during the applicable taxable period. 
 For the avoidance of doubt, for purposes of this Agreement, the
Distribution Agreement and each Ancillary Agreement, the Tax Benefit Amount shall be determined taking into account the application of Article 5.03(d). 
 “Tax Benefit Adjusted Amount” shall mean, with respect to a liability, the amount equal to the amount of such liability reduced by the Tax Benefit Amount, if any, with respect to
Mallinckrodt and its Subsidiaries, in respect of the payment of such liability. 

  
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 “Tax Benefit Period” shall mean, with respect to the payment of a
liability, the sequential series of taxable periods beginning with the taxable period that includes the date which is one (1) year prior to the date on which such liability is considered to have been paid or satisfied for applicable Tax
purposes and ending with the taxable period that includes the date which is five (5) years after the date on which such liability is considered to have been paid or satisfied for applicable Tax purposes. 

“Tax Certificates” shall mean any certificates of officers of Covidien and Mallinckrodt, provided to Skadden, Arps,
Slate, Meagher & Flom LLP, PricewaterhouseCoopers LLP, Arthur Cox, or any other law or accounting firm in connection with any Tax Opinion issued in connection with the Reorganization or Distribution. 

“Tax Contest” shall have the meaning set forth in Article 6.01. 

“Tax Counsel” shall mean a tax counsel or accountant of recognized national standing reasonably acceptable to Covidien.

 “Taxing Authority” shall mean any Governmental Entity having jurisdiction over the assessment,
determination, collection or imposition of any Tax. 
 “Tax Law” shall mean the law of any governmental entity
or political subdivision thereof relating to any Tax. 
 “Tax Materials” shall have the meaning set forth in
Article 4.01(a). 
 “Tax Opinion” shall mean any written opinion of Skadden, Arps, Slate, Meagher &
Flom LLP, PricewaterhouseCoopers LLP, Arthur Cox, or any other law or accounting firm, regarding certain tax consequences of certain transactions executed as part of the Reorganization and the Distribution. 

“Tax Records” shall have the meaning set forth in Article 8.01. 

“Tax-Related Losses” shall mean (i) all accounting, legal and other professional fees, and court costs incurred in
connection with such Taxes, as well as any other out-of-pocket costs incurred in connection with such Taxes; and (ii) all costs, expenses and damages associated with stockholder litigation or controversies and any amount paid by Covidien (or
its Affiliate) or Mallinckrodt (or its Affiliate) in respect of the liability of shareholders, whether paid to shareholders or to the IRS or any other Taxing Authority, in each case, resulting from the failure of the Distribution, the Reorganization
or any transaction associated therewith to be tax-free or otherwise have the tax treatment described in any Tax Opinion or Ruling. 

  
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 “Tax Return” shall mean any return, report, certificate, form or similar
statement or document (including any related supporting information or schedule attached thereto and any information return, amended tax return, claim for refund or declaration of estimated tax) supplied to or filed with, or required to be supplied
to or filed with, a Governmental Entity, or any bill for or notice related to ad valorem or other similar Taxes received from a Governmental Entity, in each case, in connection with the determination, assessment or collection of any Tax or the
administration of any laws, regulations or administrative requirements relating to any Tax. 
 “Treasury
Regulations” shall mean the regulations promulgated from time to time under the Code as in effect for the relevant tax period. 
 “Unanticipated Separation Taxes” shall mean Taxes arising as a result of (i) the Distribution, or (ii) the Reorganization or any transaction associated therewith as described in
any Ruling, the Distribution Agreement, or any Local Separation Agreement, in each case where such Tax is not a Separation Tax, except for (A) any Tax resulting from a breach by any Party of any covenant in this Agreement or any Ancillary
Agreement, and (B) any Tax attributable to a Prohibited Act. 
 “Unqualified Tax Opinion” shall mean an
unqualified “will” opinion of Tax Counsel on which Mallinckrodt and Covidien may rely to the effect that the Prohibited Act will not result in Unanticipated Separation Taxes or any incremental liability for Separation Taxes. Any such
opinion must assume that the Distribution, Reorganization, and any transaction associated therewith would have been tax-free or had the tax treatment described in any applicable Tax Opinion or Ruling if such transaction did not occur. 

“US GAAP” means United States generally accepted accounting principles. 

1.02 INTERPRETATION. For all purposes of this Agreement: (i) the terms defined in this Agreement include the plural as well as the
singular; (ii) all references in this Agreement to “Preamble”, “Recitals”, “Articles”, “Sections” and other subdivisions are to the designated Preamble, Recitals, Articles, Sections and other subdivisions
of the body of this Agreement; (iii) pronouns of either gender or neuter include, as appropriate, the other pronoun forms; (iv) the words “herein,” “hereof” and “hereunder” and other words of similar import
refer to this Agreement as a whole and not to any particular Article, Section or other subdivision; (v) “or” is not exclusive; (vi) “including” shall be deemed to be followed by “but not limited to”; and
(vii) any definition of or reference to any statute shall be construed as referring also to any rules and regulations promulgated thereunder. 

  
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 ARTICLE II 
 PAYMENTS AND TAX REFUNDS 
 2.01 COVIDIEN LIABILITY. Covidien shall
pay and be responsible for: 
 (a) any Specified Taxes not allocated to Mallinckrodt pursuant to Article 2.02; and 

(b) any Covidien Separation Taxes. 
 2.02 MALLINCKRODT LIABILITY. Mallinckrodt shall pay and be responsible for: 
 (a)
any Current Taxes where Mallinckrodt or any member of the Mallinckrodt Group is obligated under applicable Law to (i) pay such Taxes or (ii) file a Tax Return with respect to such Taxes; 

(b) any Mallinckrodt Historic Tax Liability; 
 (c) 20% of any Unanticipated Separation Taxes; and 
 (d) any Mallinckrodt
Separation Taxes. 
 2.03 MALLINCKRODT TAX LIABILITY CAP. 

(a) Notwithstanding anything in this Agreement to the contrary, Mallinckrodt shall not be liable for Taxes pursuant to Article 2.02(b),
2.02(c), or 2.02(d) to the extent that the aggregate Tax Benefit Adjusted Amount in respect of liability for Taxes allocated to Mallinckrodt pursuant to Article 2.02(b), together with the aggregate Tax Benefit Adjusted Amount in respect of liability
for Taxes allocated to Mallinckrodt pursuant to Article 2.02(c) and 2.02(d), exceeds the Mallinckrodt Tax Liability Cap. 
 (b)
If and to the extent the Tax Benefit Adjusted Amount in respect of any liability for Mallinckrodt Historic Tax Liabilities, Unanticipated Separation Taxes, or Mallinckrodt Separation Taxes changes subsequent to any determination made with respect to
Article 2.01 or 2.02 including, without limitation, as a result of a carryforward or a carryback of a deduction, credit, loss or other Tax attribute which affects the Tax Benefit Adjusted Amount in respect of such a liability, then the amount of all
Taxes for which each Party is responsible pursuant to Articles 2.01 and 2.02 shall be redetermined taking into account the effect of such modified Tax Benefit Adjusted Amount. 

(c) If and to the extent Mallinckrodt or any member of the Mallinckrodt Group receives any Refund of Unanticipated Separation Taxes or
Mallinckrodt Separation Taxes pursuant to Article 2.05, then the amount of all Taxes for which each Party is responsible pursuant to Articles 2.01 and 2.02 shall be redetermined taking into account the effect of such Refund. 

  
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 2.04 CERTAIN EMPLOYMENT AND OTHER TAXES. 

(a) ALLOCATION OF EMPLOYMENT TAXES. Except as otherwise addressed in Article V hereof, liability for Employment Taxes shall be
determined pursuant to the Employee Matters Agreement. 
 (b) ALLOCATION OF OTHER TAXES. Except as otherwise addressed in
Article V hereof, liability for Other Taxes shall be determined pursuant to the Distribution Agreement. 
 2.05 TAX REFUNDS.

 (a) Mallinckrodt shall be entitled to 
 (i) any Refund of Current Taxes received by any member of the Mallinckrodt Group or the Covidien Group, where Mallinckrodt or any member of the Mallinckrodt Group is obligated under applicable Law to
(i) pay such Taxes or (ii) file a Tax Return with respect to such Taxes; 
 (ii) any Mallinckrodt Refund Amounts;

 (iii) 20% of any Refund of any Unanticipated Separation Taxes received by any member of the Mallinckrodt Group or the
Covidien Group; provided, that, if the proportionate amount of such Tax that was borne by Mallinckrodt was lower than 20%, whether by reason of the application of Article 2.03 or otherwise, Mallinckrodt will be entitled to such lower
proportionate amount of such Refund of Unanticipated Separation Taxes; and 
 (iv) any Refund of Mallinckrodt Separation Taxes
received by any member of the Mallinckrodt Group or the Covidien Group to the extent that liability for such Taxes was actually borne by Mallinckrodt; provided, that, solely for purposes of this Article 2.05(a)(iv), any Refund in respect of a
Separation Tax shall be treated first as a Refund of a Mallinckrodt Separation Tax if and only to the extent Mallinckrodt bore such Tax, taking into account the application of Article 2.03, and thereafter as a Refund of a Covidien Separation Tax.

 (b) Covidien shall be entitled to all Refunds related to Specified Taxes received by any member of the Mallinckrodt Group or
the Covidien Group other than those to which Mallinckrodt is entitled pursuant to Article 2.05(a). 
 (c) Each Party shall pay
to the other Party any Refund received by such Party or any member of such Party’s Group that is allocable to the other Party 

  
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pursuant to this Article 2.05 no later than five (5) Business Days after the receipt of such Refund. For purposes of this Article 2.05(c), any Refund that arises as a result of an offset,
credit, or other similar benefit in respect of Taxes other than a receipt of cash shall be deemed to be received on the earlier of (i) the date on which a Tax Return is filed claiming such offset, credit, or other similar benefit and
(ii) the date on which payment of the Tax which would have otherwise been paid absent such offset, credit, or other similar benefit is due (determined without taking into account any applicable extensions). 

2.06 PRIOR AGREEMENTS. Except as set forth in this Agreement and in consideration of the mutual indemnities and other obligations of this
Agreement, any and all prior Tax sharing or allocation agreements or practices between any member of the Covidien Group and any member of the Mallinckrodt Group shall be terminated with respect to the Mallinckrodt Group and the Covidien Group as of
the Distribution Date. No member of either the Mallinckrodt Group or the Covidien Group shall have any continuing rights or obligations under any such agreement. 
 ARTICLE III 
 PREPARATION AND FILING OF TAX RETURNS

 3.01 COVIDIEN’S RESPONSIBILITY. Covidien shall prepare and file when due (taking into account any applicable
extensions), or shall cause to be prepared and filed, all Tax Returns Covidien or any member of the Covidien Group is obligated to file pursuant to applicable Tax Law. 
 3.02 MALLINCKRODT’S RESPONSIBILITY. Mallinckrodt shall prepare and file when due (taking into account any applicable extensions), or shall cause to be prepared and filed, all Tax Returns Mallinckrodt
or any member of the Mallinckrodt Group is obligated to file pursuant to applicable Tax Law, other than those which Covidien is responsible to file pursuant to Article 3.01. 
 3.03 RIGHT TO REVIEW TAX RETURNS. With respect to any Identified Tax Return relating to any Pre-Distribution Period or Straddle Period for which Mallinckrodt is the Responsible Party, Mallinckrodt shall
deliver such Identified Tax Return and related workpapers to Covidien for approval twenty (20) Business Days prior to the due date of the relevant Identified Tax Return. Mallinckrodt shall provide Covidien no less than ten (10) Business
Days to analyze and comment on such Identified Tax Return and shall modify such Identified Tax Return before filing to include Covidien’s reasonable comments. Mallinckrodt shall not, and shall not permit any member of the Mallinckrodt Group to,
file any such Identified Tax Return without the prior written consent of Covidien, such consent to be exercised in Covidien’s sole discretion. 
 3.04 COOPERATION. The Parties shall provide, and shall cause their Affiliates to provide, assistance and cooperation to one another in accordance with Article VII with respect to the preparation and
filing of Tax Returns, including providing information required to be provided in Article VIII. 

  
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 3.05 TAX REPORTING PRACTICES. Except as provided in Article 3.06 or pursuant to the prior
written consent of Covidien, such consent to be exercised in Covidien’s sole discretion, with respect to any Tax Return for any taxable period that begins on or before the second anniversary of the Distribution Date with respect to which
Mallinckrodt is the Responsible Party, such Tax Return shall be prepared in a manner (i) consistent with past practices, accounting methods, elections and conventions (“Past Practices”) used with respect to the Tax Returns in
question (unless there is no Reasonable Basis for the use of such Past Practices), and to the extent any items are not covered by Past Practices (or in the event that there is no Reasonable Basis for the use of such Past Practices), in accordance
with reasonable Tax accounting practices selected by Mallinckrodt; and (ii) that, to the extent consistent with clause (i), minimizes the overall amount of Taxes due and payable on such Tax Return for all of the Parties by cooperating in making
such elections or applications for group or other relief or allowances available in the taxing jurisdiction in which such Tax Return is filed. Mallinckrodt shall not take any action inconsistent with the assumptions (including items of income, gain,
deduction, loss and credit) made in determining all estimated or advance payments of Taxes on or prior to the Distribution Date. In addition, Mallinckrodt shall not be permitted, and shall not permit any member of the Mallinckrodt Group, to make a
change in any of its methods of accounting for tax purposes until all applicable statutes of limitations for all Pre-Distribution Periods and Straddle Periods have expired. 
 3.06 REPORTING OF REORGANIZATION. The Tax treatment of any step in or portion of the Reorganization shall be reported on each applicable Tax Return consistently with the treatment thereof in any Ruling
Request, Tax Opinion, Ruling, and Local Separation Agreement, taking into account the jurisdiction in which such Tax Returns are filed, unless there is no Reasonable Basis for such Tax treatment. In the event that a Party shall determine that there
is no Reasonable Basis for such Tax treatment, such Party shall notify the other Party no later than twenty (20) Business Days prior to filing the relevant Tax Return and the Parties shall attempt in good faith to agree on the manner in which
the relevant portion of the Reorganization shall be reported. 
 3.07 PAYMENT OF TAXES. 

(a) With respect to any Tax Return required to be filed pursuant to this Agreement, the Responsible Party shall remit or cause to be
remitted to the applicable Governmental Entity in a timely manner any Taxes due in respect of any such Tax Return. 
 (b) In
the case of any Tax Return for which the Party that is not the Responsible Party is obligated pursuant to this Agreement to pay all or a portion of the Taxes reported as due on such Tax Return, the Responsible Party shall notify the other Party, in
writing, of its obligation to pay such Taxes and, in reasonably sufficient detail, its calculation of the amount due by such other Party and the Party receiving such notice shall pay such amount to the Responsible Party upon the later of five
(5) Business Days prior to the date on which such payment is due and fifteen (15) Business Days after the receipt of such notice. 

  
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 3.08 AMENDED RETURNS AND CARRYBACKS. 

(a) Mallinckrodt shall not, and shall not permit any member of the Mallinckrodt Group to, file or allow to be filed any Adjustment
Request for any Pre-Distribution Period or Straddle Period without the prior written consent of Covidien, such consent to be exercised in Covidien’s sole discretion. 
 (b) Mallinckrodt shall, and shall cause each member of the Mallinckrodt Group to, make any available elections to waive the right to carry back any Tax Attribute from a taxable period or portion thereof
ending after the Distribution Date to a taxable period or portion thereof ending on or before the Distribution Date. 
 (c)
Mallinckrodt shall not, and shall cause each member of the Mallinckrodt Group not to, without the prior written consent of Covidien, make any affirmative election to carry back any Tax Attribute from a taxable period or portion thereof ending after
the Distribution Date to a taxable period or portion thereof ending on or before the Distribution Date, such consent to be exercised in Covidien’s sole discretion. 
 (d) Receipt of consent by Mallinckrodt or a member of the Mallinckrodt Group from Covidien pursuant to the provisions of this Article 3.08 shall not limit or modify Mallinckrodt’s continuing
indemnification obligation pursuant to Article V. 
 3.09 TAX ATTRIBUTES. 

(a) Mallinckrodt shall make its own determination as to the existence and the amount of the Tax Attributes to which it is entitled after
the Distribution Date; provided, however, that such determination shall be made in a manner that is (a) consistent with Past Practices; (b) in accordance with the rules prescribed by applicable Law, including the Code and the
Treasury Regulations; (c) consistent with the Rulings, the Tax Certificates, and the Tax Opinions; (d) reasonably determined by Mallinckrodt to minimize the aggregate cash Tax liability of the Parties for all Pre-Distribution Tax Periods
and the portion of all Straddle Tax Periods ending on the Distribution Date; and (e) with respect to any determination relating to the existence or availability of net operating losses, consented to in writing by Covidien, such consent to be
exercised in Covidien’s sole and absolute discretion. 
 (b) Upon the reasonable request of Mallinckrodt, Covidien shall
provide Mallinckrodt with any reasonably available Tax Records relating to the determination of Tax Attributes if and only to the extent such Tax Records exist on the Distribution Date. Nothing in this Agreement, including this Article 3.09(b),
shall require Covidien to make any determinations or otherwise create any Tax Records with respect to Tax Attributes or the determination thereof. 

  
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 ARTICLE IV 
 REPRESENTATIONS AND COVENANTS 
 4.01 COMPLIANCE WITH THE RULINGS AND
TAX OPINIONS. 
 (a) Covidien, on behalf of itself and all other members of the Covidien Group, hereby represents and warrants
that (i) it has examined (A) the Rulings, (B) the Tax Opinions, (C) the Ruling Requests, (D) the Tax Certificates and (E) any other materials delivered or deliverable in connection with the issuance of the Rulings and
the rendering of Tax Opinions (collectively, the “Tax Materials”) and (ii) the facts presented and representations made therein, to the extent descriptive of or otherwise relating to Covidien or any member of the Covidien Group
or the Covidien Businesses, were, at the time presented or represented and from such time until and including the Distribution Date, true, correct, and complete in all material respects. Covidien, on behalf of itself and all other members of the
Covidien Group, hereby confirms and agrees to comply with any and all covenants and agreements in the Tax Materials applicable to Covidien or any member of the Covidien Group or the Covidien Businesses. 

(b) Mallinckrodt, on behalf of itself and all other members of the Mallinckrodt Group, hereby represents and warrants that (i) it
has examined the Tax Materials and (ii) the facts presented and representations made therein, to the extent descriptive of or otherwise relating to Mallinckrodt or any member of the Mallinckrodt Group or the Mallinckrodt Business, were, at the
time presented or represented and from such time until and including the Distribution Date, true, correct, and complete in all material respects. Mallinckrodt, on behalf of itself and all other members of the Mallinckrodt Group, hereby confirms and
agrees to comply with any and all covenants and agreements in the Tax Materials applicable to Mallinckrodt or any member of the Mallinckrodt Group or the Mallinckrodt Business. 

4.02 CONSENT REQUIREMENT FOR MAJOR TRANSACTIONS. Mallinckrodt, on behalf of itself and all other members of the Mallinckrodt Group,
hereby covenants and agrees that no member of the Mallinckrodt Group will take or permit to be taken: 
 (a) within the
applicable Restricted Period, any of the following actions: 
 (i) any Proposed Acquisition Transaction, or approval of any
Proposed Acquisition Transaction for any purpose; 
 (ii) any merger, scheme of arrangement, or consolidation with any other
Person or liquidation or partial liquidation; or any approval or allowance of any merger, scheme of arrangement, consolidation, liquidation, or partial liquidation of any of the Restricted Transfer Entities or the ATOB Entities; 

  
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 (iii) any approval or allowance of the discontinuance, cessation, or sale or other transfer
(to an Affiliate or otherwise) of, or a material change in, any Active Business; 
 (iv) any approval or allowance of the sale,
transfer, issuance, or other disposition (to an Affiliate or otherwise), directly or indirectly, of any share of, or other equity interest or an instrument convertible into an equity interest in, any of the ATOB Entities, Belgium Restricted Transfer
Entities, Canada Restricted Transfer Entities, German Restricted Transfer Entities, or Netherlands Restricted Transfer Entities; 
 (v) any sale, transfer, or other disposition of more than 35 percent (35%) of its consolidated gross or net assets, or approval or allowance of the sale, transfer, or other disposition (to an
Affiliate or otherwise) of more than 35 percent (35%) of the consolidated gross or net assets of any of the Restricted Transfer Entities (in each case, excluding sales in the ordinary course of business and measured based on fair market values
as of the date of the applicable Distribution or other transaction); 
 (vi) any amendment to its certificate of incorporation
(or other organizational documents), or any other action or approval or allowance of the taking of any action, whether through a stockholder vote or otherwise, affecting the voting rights of the stock of Mallinckrodt or any of the Restricted
Transfer Entities; 
 (vii) any issuance of shares of a new class of nonvoting stock or approval or allowance of any of the
Restricted Transfer Entities to issue shares of a new class of nonvoting stock; 
 (viii) any purchase, directly or through any
Affiliate, of any of its outstanding stock after the Distributions, other than through stock purchases meeting the requirements of Section 4.05(1)(b) of Revenue Procedure 96-30; 

(ix) any approval or allowance of an extraordinary contribution to any of the Restricted Transfer Entities (or any successor thereto) by
its shareholder or shareholders (or any successor(s) thereto); or 
 (x) any sale, transfer or other disposition, or any
approval or allowance of the sale, transfer, or other disposition, of ten percent (10%) or more of the fair market value of the property, determined at the time of the Distribution, of any Canada Restricted Transfer Entity, as determined
pursuant to Section 55(3)(a) of the Canadian Income Tax Act of 1985, as amended and any regulations promulgated thereunder; or 

  
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 (b) any action at any time that could jeopardize, directly or indirectly, any of the
conclusions contained in any Ruling or any Tax Opinion (collectively, the “Prohibited Acts”). 
 Notwithstanding the foregoing,
Mallinckrodt or a member of the Mallinckrodt Group may take any of the Prohibited Acts if Mallinckrodt either (i) obtains an Unqualified Tax Opinion in form and substance reasonably satisfactory to Covidien or (ii) obtains the prior
written consent of Covidien waiving the requirement that Mallinckrodt obtain an Unqualified Tax Opinion, such waiver to be provided in Covidien’s sole and absolute discretion. Covidien’s evaluation of an Unqualified Tax Opinion may
consider, among other factors, the appropriateness of any underlying assumptions, representations, and covenants made in connection with such opinion. Mallinckrodt shall bear all costs and expenses of securing any such Unqualified Tax Opinion and
shall reimburse Covidien for all reasonable out-of-pocket expenses that Covidien or its Subsidiaries may incur in good faith in seeking to obtain or evaluate any such Unqualified Tax Opinion. Neither the delivery of an Unqualified Tax Opinion nor
Covidien’s waiver of Mallinckrodt’s obligation to deliver an Unqualified Tax Opinion shall limit or modify Mallinckrodt’s continuing indemnification obligation pursuant to Article V. 

4.03 COVIDIEN COVENANTS. Notwithstanding anything else to the contrary contained in this Agreement or any other agreement, Covidien, on
behalf of itself and all other members of the Covidien Group, hereby confirms and agrees that neither Covidien nor any member of the Covidien Group will take or permit to be taken any action at any time that would likely jeopardize, directly or
indirectly, any of the conclusions contained in any Ruling or Tax Opinion. 
 ARTICLE V 

INDEMNITY OBLIGATIONS 
 5.01 INDEMNITY OBLIGATIONS. 
 (a) Covidien shall indemnify and hold harmless
Mallinckrodt from and against, and will reimburse Mallinckrodt for, (i) all liability for Taxes allocated to Covidien pursuant to Article II, (ii) all Taxes and Tax-Related Losses arising out of, based upon, or relating or attributable to
any breach of or inaccuracy in any representation, covenant, or obligation of any member of the Covidien Group pursuant to this Agreement, and (iii) the amount of any Refund received by any member of the Covidien Group which is allocated to
Mallinckrodt pursuant to Article 2.05(a). 
 (b) Without regard to whether any action is permitted or consented to hereunder
and notwithstanding anything else to the contrary contained herein, Mallinckrodt shall indemnify and hold harmless Covidien from and against, and will reimburse Covidien for, (i) all liability for Taxes allocated to Mallinckrodt pursuant to
Article II, (ii) all Taxes and Tax-Related Losses arising out of, based upon, or relating or attributable to any breach of or inaccuracy in any representation, covenant, or obligation of any member of the Mallinckrodt Group pursuant to this
Agreement, (iii) all 

  
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Taxes and Tax-Related Losses arising out of, based upon, or relating or attributable to any Prohibited Act by Mallinckrodt or any member of the Mallinckrodt Group, regardless of whether
(A) Covidien consented to such Prohibited Act, or (B) Mallinckrodt obtained an Unqualified Tax Opinion, and (iv) the amount of any Refund received by any member of the Mallinckrodt Group which is allocated to Covidien pursuant to
Article 2.05(b). 
 (c) To the extent that any Tax or Tax-Related Loss is subject to indemnity pursuant to both Articles
5.01(a) and 5.01(b), responsibility for such Tax or Tax-Related Loss shall be shared by Covidien and Mallinckrodt according to relative fault. 
 5.02 INDEMNIFICATION PAYMENTS. 
 (a) Except as otherwise provided in this
Agreement, if either Party (the “Indemnified Party”) is required to pay to a Taxing Authority a Tax or to another Party an indemnification payment in respect of a Tax that another Party (the “Indemnifying Party”) is
liable for under this Agreement, including as the result of a Final Determination, the Indemnified Party shall notify the Indemnifying Party, in writing, of its obligation to pay such Taxes and, in reasonably sufficient detail, its calculation of
the amount due by such Indemnifying Party to the Indemnified Party, including any Tax-Related Losses attributable thereto. The Indemnifying Party shall pay such amount, including any Tax-Related Losses attributable thereto, to the Indemnified Party
no later than the later of (i) five (5) Business Days prior to the date on which such payment is due to the applicable Taxing Authority or (ii) fifteen (15) Business Days after the receipt of notice from the other Party.

 (b) If, as a result of any change or redetermination made with respect to Article 2.01 or 2.02, including, without
limitation, pursuant to Article 2.03(b), any amount previously allocated to and borne by one Party pursuant to the provisions of Article II is thereafter allocated to the other Party, then, no later than five (5) Business Days after such change
or redetermination, such other Party shall pay to such Party the amount previously borne by such Party which is allocated to such other Party as a result of such change or redetermination. 

5.03 PAYMENTS NET OF TAX BENEFITS. 
 (a) All amounts required to be paid by one Party to another pursuant to this Agreement, the Distribution Agreement or any Ancillary Agreement shall be reduced by the Tax Benefit Amount, if any, with
respect to the Indemnified Party or its Subsidiaries in respect of the indemnified liability. 
 (b) If and to the extent any
Tax Benefit Amount arises in respect of an indemnified liability which has not already reduced any payment made to the Indemnified Party or its Subsidiaries pursuant to this Agreement or otherwise been paid to the Indemnifying Party then, no later
than five (5) Business Days after the filing of a Tax Return with respect to the applicable taxable period in which such Tax Benefit 

  
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Amount arose, such Indemnified Party shall pay to the Indemnifying Party the amount of any such Tax Benefit Amount not previously taken into account. For the avoidance of doubt, in the event that
a deduction, credit, loss or other Tax attribute, or any portion thereof, arising as a result of such payment results in a Tax Benefit Amount in a taxable period or portion thereof prior to or later than the taxable period during which such payment
is considered to have been made for applicable Tax purposes, then this Article 5.03 shall continue to apply for all taxable periods included in the applicable Tax Benefit Period. 

(c) With respect to each taxable period that is included in a Tax Benefit Period in respect of 

(i) any liability for which Mallinckrodt or any member of the Mallinckrodt Group is required to indemnify Covidien or any member of the
Covidien Group pursuant to this Agreement, the Distribution Agreement, or any Ancillary Agreement, or 
 (ii) any liability for
a Tax for which Mallinckrodt or any member of the Mallinckrodt Group is liable pursuant to Articles 2.02(b), 2.02(c), or 2.02(d) of this Agreement (in each case, without regard to Article 2.03), 

Mallinckrodt and each member of the Mallinckrodt Group shall, with respect to each Tax Return required to be filed, or actually filed, with respect to
each such taxable period, provide to Covidien pro forma copies (the “Pro Forma Returns”) of each such Tax Return prepared in accordance with the principles set forth in the definition of Tax Benefit Amount. Such pro forma Tax Return
shall determine the Tax Benefit Amount, if any, realized by Mallinckrodt or any member of the Mallinckrodt Group in respect of such liability or Tax. Mallinckrodt shall deliver such pro forma Tax Returns to Covidien no later than forty-five
(45) calendar days following the earlier of the date on which such Tax Return was filed or required to be filed. 
 (d) If
Mallinckrodt fails to provide to Covidien any Pro Forma Return with respect to a liability for which it is required to provide such a return pursuant to Article 5.03(c), then, notwithstanding anything else to the contrary in this Agreement,
including the definition of Tax Benefit Amount, the Tax Benefit Amount in respect of such liability shall, if and to the extent such liability is or may potentially be deductible, creditable, or otherwise potentially available to offset or reduce
any amount of Taxes in any jurisdiction (as determined in Covidien’s reasonable discretion), for all purposes of this Agreement and each Ancillary Agreement be equal to the product of (a) the absolute value of the amount of such liability
and (b) the Mallinckrodt Assumed Tax Rate. 
 5.04 PAYMENT MECHANICS. 

(a) Subject to Article 10.02, all payments under this Agreement shall be made by Covidien directly to Mallinckrodt and by Mallinckrodt
directly to Covidien; provided, however, that if the Parties mutually agree with respect to any such 

  
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indemnification payment, any member of the Covidien Group, on the one hand, may make such indemnification payment to any member of the Mallinckrodt Group, on the other hand, and vice versa. All
indemnification payments shall be treated in the manner described in Article 5.05. 
 (b) Any late payment made by one Party to
another Party pursuant to this Agreement shall be subject to interest at a rate per annum equal to the then effective Prime Rate plus 5% (or the maximum legal rate, whichever is lower), calculated for the actual number of days elapsed, and accrued
from the date on which such payment was due up to the date of the actual receipt of payment. 
 (c) In the case of any payment
of Taxes made by a Responsible Party or Indemnified Party pursuant to this Agreement for which such Responsible Party or Indemnified Party, as the case may be, has received a payment from the other Party, such Responsible Party or Indemnified Party
shall provide to the other Party a copy of any official government receipt received with respect to the payment of such Taxes to the applicable Taxing Authority (or, if no such official governmental receipts are available, executed bank payment
forms or other reasonable evidence of payment). 
 5.05 TREATMENT OF PAYMENTS. The Parties agree that any payment made among the
Parties pursuant to this Agreement shall be treated, to the extent permitted by law, for all United States federal income Tax purposes as either (i) a non-taxable contribution by Covidien to Mallinckrodt, or (ii) a distribution by
Mallinckrodt to Covidien, in each case, made immediately prior to the Distribution. 
 ARTICLE VI 

TAX CONTESTS 
 6.01 NOTICE. Each Party shall promptly notify the other Party in writing upon receipt by such Party or any member of its Group of a written communication from any Governmental Entity with respect to any
pending or threatened audit, claim, dispute, suit, action, proposed assessment or other proceeding (a “Tax Contest”) concerning any Taxes for which the other Party may be liable pursuant to this Agreement. 

6.02 CONTROL OF CONTESTS BY COVIDIEN. Covidien shall have the sole responsibility and right to control the prosecution of any Tax
Contest, including the exclusive right to communicate with agents of the applicable Governmental Entity and to control, resolve, settle, or agree to any deficiency, claim, or adjustment proposed, asserted, or assessed in connection with or as a
result of any such Tax Contest, other than Mallinckrodt Controlled Tax Contests (collectively, “Covidien Controlled Tax Contests”). 
 6.03 CONTROL OF CONTESTS BY MALLINCKRODT. Mallinckrodt shall have the full responsibility and right to control the prosecution of any Tax Contest, including the exclusive right to communicate with agents
of the applicable 

  
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Governmental Entity and to control, resolve, settle, or agree to any deficiency, claim, or adjustment proposed, asserted, or assessed in connection with or as a result of any such Tax Contest,
involving any Tax Return filed by Mallinckrodt or any member of the Mallinckrodt Group for any Post-Distribution Period, and any Pre-Distribution or Straddle Period Tax Return filed by Mallinckrodt or any member of the Mallinckrodt Group relating
exclusively to Non-United States Taxes for any taxable year or taxable period beginning after June 29, 2007 (collectively, “Mallinckrodt Controlled Tax Contests”); provided, that in no event shall any 2007 TCE TSA Tax
Contest constitute a Mallinckrodt Controlled Tax Contest; provided, further, that Mallinckrodt shall not resolve, settle or agree to any deficiency, claim or adjustment proposed, asserted or assessed in connection with or as a result
of any Mallinckrodt Controlled Tax Contest for any Pre-Distribution Period or Straddle Period without the prior written consent of Covidien, such consent to be exercised in Covidien’s sole discretion. 

6.04 2007 TCE TSA CONTEST INFORMATION UPDATE. Notwithstanding anything to the contrary in this Agreement, Covidien shall (i) provide
to Mallinckrodt any factual information Covidien receives from the Audit Management Party regarding any 2007 TCE TSA Tax Contest relating to Taxes for which Mallinckrodt may be liable pursuant to Article 2.02, and (ii) provide notice to
Mallinckrodt of any pending or threatened 2007 TCE TSA Tax Contest of which it becomes aware relating to Taxes for which Mallinckrodt may be liable pursuant to Article 2.02 reasonably promptly after receipt of notice pursuant to the 2007 TCE TSA.
Such notice shall contain factual information (to the extent known) describing any asserted Tax liability in reasonable detail and shall be accompanied by copies of any notice and other documents received from any Taxing Authority in respect of any
such matters. Mallinckrodt shall not have any right to any amount paid to Covidien or any member of the Covidien Group pursuant to the 2007 TCE TSA regardless of whether such payment relates to an amount for which Mallinckrodt is liable pursuant to
the terms of this Agreement or any Ancillary Agreement. Mallinckrodt shall take or refrain from taking, and shall cause each member of the Mallinckrodt Group to take or refrain from taking, any and all actions reasonably requested by Covidien that
would preserve, exercise, or contravene, as the case may be, Covidien’s rights and obligations under the 2007 TCE TSA. 

6.05 OBLIGATION OF CONTINUED NOTICE. During the pendency of any Tax Contest or threatened Tax Contest, other than a 2007 TCE TSA Tax
Contest, each of the Parties shall provide prompt notice to the other Party of any written communication received by it or a member of its respective Group from a Taxing Authority regarding any Tax Contest for which it is indemnified by the other
Party hereunder or for which it may be required to indemnify the other Party hereunder. Such notice shall attach copies of the pertinent portion of any written communication from a Taxing Authority and contain factual information (to the extent
known) describing any asserted Tax liability in reasonable detail and shall be accompanied by copies of any notice and other documents received from any Taxing Authority in respect of any such matters. Such notice shall be provided in a reasonably
timely fashion; provided, however, that in the event that timely notice is not provided, a Party shall be relieved of its obligation to indemnify the other Party only to the extent that such delay results in actual increased costs or
actual prejudice to such other Party. 

  
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 6.06 SETTLEMENT RIGHTS. Unless waived by the Parties in writing, in connection with any
potential adjustment in a Tax Contest, other than a 2007 TCE TSA Tax Contest, as a result of which adjustment the Non-Controlling Party may reasonably be expected to become liable to make any indemnification payment to the Controlling Party under
this Agreement: (i) the Controlling Party shall keep the Non-Controlling Party informed in a timely manner of all actions taken or proposed to be taken by the Controlling Party with respect to such potential adjustment in such Tax Contest;
(ii) the Controlling Party shall timely provide the Non-Controlling Party copies of any written materials relating to such potential adjustment in such Tax Contest received from any Tax Authority; (iii) the Controlling Party shall timely
provide the Non-Controlling Party with copies of any correspondence or filings submitted to any Tax Authority or judicial authority in connection with such potential adjustment in such Tax Contest; and (iv) the Controlling Party shall defend
such Tax Contest diligently and in good faith; provided, however, that nothing in this Article 6.06 shall affect Covidien’s right to control, resolve, settle, or agree to any deficiency, claim, or adjustment proposed, asserted, or
assessed in connection with or as a result of any Covidien Controlled Tax Contest, or consent to the resolution, settlement or agreement of any deficiency, claim or adjustment proposed, asserted or assessed in connection with or as a result of any
such Mallinckrodt Controlled Tax Contest, in Covidien’s sole and absolute discretion. The failure of the Controlling Party to take any action specified in the preceding sentence with respect to the Non-Controlling Party shall not relieve the
Non-Controlling Party of any liability and/or obligation which it may have to the Controlling Party under this Agreement, and in no event shall such failure relieve the Non-Controlling Party from any other liability or obligation which it may have
to the Controlling Party. 
 ARTICLE VII 
 COOPERATION 
 7.01 GENERAL. Each Party shall fully cooperate, and
shall cause all members of such Party’s Group to fully cooperate, with the other Party in connection with the preparation and filing of any Tax Return or the conduct of any Tax Contest (including, where appropriate or necessary, providing a
power of attorney) concerning any issues or any other matter contemplated pursuant to this Agreement. Each Party shall make its employees and facilities available on a mutually convenient basis to facilitate such cooperation. 

7.02 CONSISTENT TREATMENT. Unless and until there has been a Final Determination to the contrary, each Party agrees not to take any
position on any Tax Return, in connection with any Tax Contest or otherwise that is inconsistent with (a) the treatment of payments between the Covidien Group and the Mallinckrodt Group as set forth in Article 5.05, (b) the Rulings,
(c) the Tax Opinions, or (d) the Tax treatment of any transaction included in the Reorganization. 

  
 26 

 ARTICLE VIII 
 RETENTION OF RECORDS; ACCESS 
 8.01 RETENTION OF RECORDS. For so
long as the contents thereof may become material in the administration of any matter under applicable Tax law, but in any event until the later of (i) the expiration of any applicable statutes of limitation and (ii) seven years after the
Distribution Date, the Parties shall retain records, documents, accounting data and other information (including computer data) necessary for the preparation and filing of all Tax Returns (collectively, “Tax Records”) in respect of
Taxes of any member of either the Covidien Group or the Mallinckrodt Group for any Pre-Distribution Period, Straddle Period, or Post-Distribution Period or for any Tax Contests relating to such Tax Returns. At any time after the Distribution Date
that the Covidien Group proposes to destroy such material or information, it shall first notify the Mallinckrodt Group in writing and the Mallinckrodt Group shall be entitled to receive such materials or information proposed to be destroyed. At any
time after the Distribution Date that the Mallinckrodt Group proposes to destroy such material or information, it shall first notify the Covidien Group in writing and the Covidien Group shall be entitled to receive such materials or information
proposed to be destroyed. 
 8.02 ACCESS TO TAX RECORDS. 

(a) GENERAL RULE. The Parties and their respective Affiliates shall make available to each other for inspection and copying during
normal business hours upon reasonable notice all Tax Records (and, for the avoidance of doubt, any pertinent underlying data accessed or stored on any computer program or information technology system) in their possession and shall permit the other
Party and its Affiliates, authorized agents and representatives and any representative of a Taxing Authority or other Tax auditor direct access, during normal business hours upon reasonable notice to any computer program or information technology
system used to access or store any Tax Records, in each case to the extent reasonably required by the other Party in connection with the preparation of Tax Returns or financial accounting statements, audits, litigation, or the resolution of items
pursuant to this Agreement. The Party seeking access to the records of the other Party shall bear all costs and expenses associated with such access, including any professional fees. 

8.03 PRESERVATION OF PRIVILEGE. No member of the Mallinckrodt Group shall provide access to, copies of, or otherwise disclose to any
Person any documentation relating to Taxes existing as of the date hereof to which Privilege may reasonably be asserted without the prior written consent of Covidien, such consent not to be unreasonably withheld. 

  
 27 

 ARTICLE IX 
 DISPUTE RESOLUTION 
 9.01 The Parties mutually desire that friendly
collaboration will continue between them. Accordingly, they will try, and they will cause their respective Group members to try, to resolve in an amicable manner all disagreements and misunderstandings connected with their respective rights and
obligations under this Agreement, including any amendments hereto. In furtherance thereof, in the event of any dispute or disagreement (a “Dispute”) between any member of the Covidien Group and any member of the Mallinckrodt Group
as to the interpretation of any provision of this Agreement or the performance of obligations hereunder, the Tax departments of the Parties shall negotiate in good faith to resolve the Dispute. If such good faith negotiations do not resolve the
Dispute, then the matter, upon written request of either Party, will be referred to the persons at each Party holding the title of General Counsel (or such other chief legal officer at such Party) for resolution. If such Dispute is not resolved
within ninety (90) Business Days following the date on which the senior managers receive notification, the Parties to such Dispute shall each separately retain an independent, nationally recognized law or accounting firm (each, a
“Preliminary Tax Advisor” and, together, the “Preliminary Tax Advisors”), which Preliminary Tax Advisors shall jointly retain a third independent, nationally recognized law or accounting firm which must be located
in New York, New York (the “Tax Advisor”) on behalf of the Parties to the Dispute to act as an arbitrator in order to resolve the Dispute. The Tax Advisor’s determination as to any Dispute shall be made in accordance with the
terms of this Agreement and shall be final and binding on the Parties and not subject to collateral attack for any reason (other than manifest error). All fees and expenses of the Preliminary Tax Advisor shall be borne by the Party that engaged such
advisor and all of the fees and expenses of the Tax Advisor shall be shared equally by each of the Parties to the Dispute. 

ARTICLE X 

MISCELLANEOUS PROVISIONS 
 10.01 CONFLICTING AGREEMENTS. In the event of any inconsistency between this Agreement and any Schedule hereto, the Schedule shall prevail. In the event and to the extent that there shall be a conflict
between the provisions of this Agreement and the provisions of the Distribution Agreement or any Ancillary Agreement, this Agreement shall control with respect to the subject matter thereof. 

10.02 ASSIGNABILITY. This Agreement shall be binding upon and inure to the benefit of the Parties hereto, and their respective successors
and permitted assigns. Except as otherwise provided for in this Agreement, this Agreement shall not be assignable, in whole or in part, directly or indirectly, by either Party without the express written consent of the other Party, and any attempt
to assign any rights or obligations arising under this Agreement without such consent shall be void. A Party hereto may assign its respective rights or delegate its respective obligations under this Agreement to any Affiliate of such Party;
provided, however, that in connection with each such 

  
 28 

 
assignment or delegation, the assigning Party provides a guarantee to the non-assigning Party for any liability or obligation assigned or delegated pursuant to this Section 10.02;
provided, further, that Mallinckrodt shall only be entitled to assign its rights or delegate its obligations under this Agreement with the prior written consent of Covidien. 

10.03 NO FIDUCIARY RELATIONSHIP. The duties and obligations of the Parties, and their respective successors and permitted assigns,
contained herein are the extent of the duties and obligations contemplated by this Agreement; nothing in this Agreement is intended to create a fiduciary relationship between the Parties hereto, or any of their successors and permitted assigns, or
create any relationship or obligations other than those explicitly described. 
 10.04 APPLICATION TO PRESENT AND FUTURE
SUBSIDIARIES. This Agreement is being entered into by Covidien and Mallinckrodt on behalf of themselves and the members of their respective Group. This Agreement shall constitute a direct obligation of each such Party and shall be deemed to have
been readopted and affirmed on behalf of any entity that becomes a Subsidiary of Covidien or Mallinckrodt in the future. 

10.05 FURTHER ASSURANCES. Subject to the provisions hereof, the Parties hereto shall make, execute, acknowledge and deliver such other
instruments and documents, and take all such other actions, as may be reasonably required in order to effectuate the purposes of this Agreement and to consummate the transactions contemplated hereby. 

10.06 SURVIVAL. Notwithstanding any other provision of this Agreement to the contrary, all representations, covenants and obligations
contained in this Agreement shall survive until the expiration of the applicable statute of limitations with respect to any such matter (including extensions thereof). 
 10.07 NOTICES. All notices, requests, claims, demands or 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 Article 10.07): 

  
 29 

 If to Covidien, to: 

Covidien plc 
 1st Floor, 20
on Hatch 
 Lower Hatch Street 
 Dublin 2 
 Ireland 

Attn: General Counsel 
 Facsimile: +352-266-379-92 
 and 

Covidien 
 15
Hampshire Street 
 Mansfield, MA 02048 
 Attn: Eric Green 
 Facsimile: (508) 261-8544 

with a copy to: 

Skadden, Arps, Slate, Meagher & Flom LLP 
 4 Times Square 
 New York, NY 10036 

Attn: Sally Thurston 
 Facsimile: (917) 777-4140 
 If to Mallinckrodt, to: 

Mallinckrodt plc 

Damastown, Mulhuddart 
 Dublin 15 
 Ireland 

Attn: General Counsel 
 Facsimile: +353-1-438-1798 
 and 

Mallinckrodt 

675 James S. McDonnell Blvd. 
 Hazelwood, MO 63042 
 Attn: Vice President of Taxation 

Facsimile: +353-1-438-1798 
 Any Party may, by notice to the other Party, change the address to which such notices are to be given. 
 10.08 NO CIRCUMVENTION. The Parties agree not to directly or indirectly take any actions, act in concert with any Person who takes an action, or cause

  
 30 

 
or allow any member of any such Party’s Group to take any actions (including the failure to take a reasonable action) such that the resulting effect is to materially undermine the
effectiveness of any of the provisions of this Agreement, the Distribution Agreement or any other Ancillary Agreement (including adversely affecting the rights or ability of any Party to successfully pursue indemnification or payment pursuant to the
provisions of this Agreement). 
 10.09 NO DUPLICATION; NO DOUBLE RECOVERY. Nothing in this Agreement is intended to confer to
or impose upon any Party a duplicative right, entitlement, obligation, or recovery with respect to any matter arising out of the same facts and circumstances. 
 10.10 DISTRIBUTION AGREEMENT. To the extent not inconsistent with any specific term of this Agreement, the provisions of the Distribution Agreement shall apply in relevant part to this Agreement,
including Article IX Termination; 10.1 Counterparts; Entire Agreement; Corporate Power; 10.2 Governing Law; Submissions to Jurisdiction; Waiver of Jury Trial; 10.4 Third-Party Beneficiaries; 10.6 Severability; 10.7 Force Majeure; 10.9 Expenses;
10.10 Headings; 10.12 Waivers; 10.13 Specific Performance; 10.14 Amendments; and 10.15 Interpretation. 

*            *          
  * 
 [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 

  
 31 

 IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement as of the day and
year first above written. 
  

			
	 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

  
 32EX-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	  

  
 -i-

							
	 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	  

  
 -ii-

 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. 

  
 -2-

 (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

  
 -3-

 
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.

  
 -4-

 “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. 

  
 -5-

 “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 Plan

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