Document:

Exhibit
10.1

EXECUTION
COPY

TAX
SHARING AGREEMENT

by
and among

TYCO
INTERNATIONAL LTD.,

COVIDIEN
LTD.,

and

TYCO
ELECTRONICS LTD.

Dated
as of June 29, 2007

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
  DEFINITIONS AND INTERPRETATION

  	
   

  	
  2

  
	
  Section 1.1

  	
   

  	
  Definitions

  	
   

  	
  2

  
	
  Section 1.2

  	
   

  	
  References;
  Interpretation

  	
   

  	
  19

  
	
  Section 1.3

  	
   

  	
  Effective Time

  	
   

  	
  20

  
	
  ARTICLE II

  	
  PREPARATION AND FILING OF TAX RETURNS

  	
   

  	
  20

  
	
  Section 2.1

  	
   

  	
  Responsibility
  of Parties to Prepare and File Pre-Distribution Income Tax Returns

  	
   

  	
  20

  
	
  Section 2.2

  	
   

  	
  Responsibility
  of Parties to Prepare and File Straddle Income Tax Returns

  	
   

  	
  22

  
	
  Section 2.3

  	
   

  	
  Responsibility of
  Parties to Prepare and File Post-Distribution Income Tax Returns and
  Non-Income Tax Returns

  	
   

  	
  24

  
	
  Section 2.4

  	
   

  	
  Time of Filing
  Tax Returns; Manner of Tax Return Preparation

  	
   

  	
  24

  
	
  ARTICLE III

  	
  RESPONSIBILITY FOR PAYMENT OF TAXES

  	
   

  	
  24

  
	
  Section 3.1

  	
   

  	
  Responsibility
  of Tyco for Taxes

  	
   

  	
  24

  
	
  Section 3.2

  	
   

  	
  Responsibility
  of Electronics for Taxes

  	
   

  	
  25

  
	
  Section 3.3

  	
   

  	
  Responsibility
  of Healthcare for Taxes

  	
   

  	
  25

  
	
  Section 3.4

  	
   

  	
  Timing of
  Payments of Taxes

  	
   

  	
  26

  
	
  ARTICLE IV

  	
  REFUNDS, CARRYBACKS AND AMENDED TAX RETURNS

  	
   

  	
  26

  
	
  Section 4.1

  	
   

  	
  Refunds

  	
   

  	
  26

  
	
  Section 4.2

  	
   

  	
  Carrybacks

  	
   

  	
  27

  
	
  Section 4.3

  	
   

  	
  Amended Tax
  Returns

  	
   

  	
  27

  
	
  Section 4.4

  	
   

  	
  Agreement from
  Party Administering and Controlling Audit

  	
   

  	
  28

  
	
  ARTICLE V

  	
  DISTRIBUTION TAXES

  	
   

  	
  28

  
	
  Section 5.1

  	
   

  	
  Liability for
  Distribution Taxes

  	
   

  	
  28

  
	
  Section 5.2

  	
   

  	
  Payment for Use
  of Tax Attributes by Parties at Fault

  	
   

  	
  28

  
	
  Section 5.3

  	
   

  	
  Definition of
  Fault

  	
   

  	
  29

  
	
  Section 5.4

  	
   

  	
  Limits on Proposed
  Acquisition Transactions and Other Transactions During Restricted Period

  	
   

  	
  29

  
	
  Section 5.5

  	
   

  	
  Advance
  Disclosure of Non-Public Transactions

  	
   

  	
  31

  
	
  Section 5.6

  	
   

  	
  Qualified Tax
  Counsel Advance Conflict Waiver

  	
   

  	
  31

  
	
  Section 5.7

  	
   

  	
  IRS Ruling, Tax
  Representation Letters, and Tax Opinions; Consistency

  	
   

  	
  31

  
	
  Section 5.8

  	
   

  	
  Timing of
  Payment of Taxes

  	
   

  	
  31

  
	
  ARTICLE VI

  	
  EMPLOYEE BENEFIT MATTERS

  	
   

  	
  31

  
	
  Section 6.1

  	
   

  	
  Deferred Compensation
  Deductions

  	
   

  	
  31

  
	
  ARTICLE VII

  	
  INDEMNIFICATION

  	
   

  	
  32

  
	
  Section 7.1

  	
   

  	
  Indemnification
  Obligations of Tyco

  	
   

  	
  32

  
	
  Section 7.2

  	
   

  	
  Indemnification
  Obligations of Healthcare

  	
   

  	
  32

  
	
  Section 7.3

  	
   

  	
  Indemnification
  Obligations of Electronics

  	
   

  	
  33

  
	
  ARTICLE VIII

  	
  PAYMENTS

  	
   

  	
  33

  
	
  Section 8.1

  	
   

  	
  Payments

  	
   

  	
  33

  

 

 i
 

 

	
  Section 8.2

  	
  Treatment of
  Payments made Pursuant to Tax Sharing Agreement

  	
  34

  
	
  Section 8.3

  	
  Treatment of
  Payments made Pursuant to Separation and Distribution Agreement

  	
  35

  
	
  Section 8.4

  	
  Payments Net of
  Tax Benefit Actually Realized

  	
  35

  
	
  ARTICLE IX

  	
  AUDITS

  	
  35

  
	
  Section 9.1

  	
  Notice

  	
  35

  
	
  Section 9.2

  	
  Pre-Distribution
  Audits

  	
  35

  
	
  Section 9.3

  	
  Payment of Audit
  Amounts

  	
  41

  
	
  Section 9.4

  	
  Correlative
  Adjustments

  	
  44

  
	
  ARTICLE X

  	
  COOPERATION AND EXCHANGE OF INFORMATION

  	
  45

  
	
  Section 10.1

  	
  Cooperation and
  Exchange of Information

  	
  45

  
	
  Section 10.2

  	
  Retention of
  Records

  	
  46

  
	
  ARTICLE XI

  	
  ALLOCATION OF TAX ATTRIBUTES, DUAL CONSOLIDATED
  LOSSES AND OTHER TAX MATTERS

  	
  46

  
	
  Section 11.1

  	
  Allocation of
  Tax Attributes

  	
  46

  
	
  Section 11.2

  	
  Dual Consolidated
  Losses

  	
  46

  
	
  Section 11.3

  	
  Payment for Use
  of Certain Tax Attributes

  	
  47

  
	
  Section 11.4

  	
  Third Party Tax
  Indemnities and Benefits

  	
  47

  
	
  Section 11.5

  	
  Allocation of
  Tax Items

  	
  47

  
	
  Section 11.6

  	
  Pre-Distribution
  Tax Attributes

  	
  47

  
	
  ARTICLE XII

  	
  DEFAULTED AMOUNTS

  	
  48

  
	
  Section 12.1

  	
  General

  	
  48

  
	
  Section 12.2

  	
  Subsidiary
  Funding

  	
  48

  
	
  ARTICLE XIII

  	
  DISPUTE RESOLUTION

  	
  48

  
	
  Section 13.1

  	
  Negotiation

  	
  48

  
	
  Section 13.2

  	
  Mediation

  	
  49

  
	
  Section 13.3

  	
  Arbitration

  	
  49

  
	
  Section 13.4

  	
  Arbitration with
  Respect to Monetary Damages

  	
  50

  
	
  Section 13.5

  	
  Arbitration
  Period

  	
  50

  
	
  Section 13.6

  	
  Treatment of
  Negotiations, Mediation, and Arbitration

  	
  50

  
	
  Section 13.7

  	
  Continuity of
  Service and Performance

  	
  50

  
	
  Section 13.8

  	
  Costs

  	
  51

  
	
  Section 13.9

  	
  Consolidation

  	
  51

  
	
  Section 13.10

  	
  Exception to
  Arbitration

  	
  51

  
	
  ARTICLE XIV

  	
  MISCELLANEOUS

  	
  51

  
	
  Section 14.1

  	
  Counterparts;
  Facsimile Signatures

  	
  51

  
	
  Section 14.2

  	
  Survival

  	
  51

  
	
  Section 14.3

  	
  Notices

  	
  51

  
	
  Section 14.4

  	
  Waivers and
  Consents

  	
  52

  
	
  Section 14.5

  	
  Amendments

  	
  52

  
	
  Section 14.6

  	
  Assignment

  	
  52

  

 

 ii
 

 

	
  Section 14.7

  	
  Successors and Assigns

  	
  52

  
	
  Section 14.8

  	
  Certain Termination and Amendment Rights

  	
  53

  
	
  Section 14.9

  	
  No Circumvention

  	
  53

  
	
  Section 14.10

  	
  Subsidiaries

  	
  53

  
	
  Section 14.11

  	
  Third Party Beneficiaries

  	
  53

  
	
  Section 14.12

  	
  Title and Headings

  	
  53

  
	
  Section 14.13

  	
  Exhibits and Schedules

  	
  53

  
	
  Section 14.14

  	
  Governing Law

  	
  53

  
	
  Section 14.15

  	
  Consent to Jurisdiction

  	
  53

  
	
  Section 14.16

  	
  Specific Performance

  	
  54

  
	
  Section 14.17

  	
  Waiver of Jury Trial

  	
  54

  
	
  Section 14.18

  	
  Force Majeure

  	
  54

  
	
  Section 14.19

  	
  Construction

  	
  54

  
	
  Section 14.20

  	
  Changes in Law

  	
  54

  
	
  Section 14.21

  	
  Authority

  	
  55

  
	
  Section 14.22

  	
  Severability

  	
  55

  
	
  Section 14.23

  	
  Tax Sharing Agreements

  	
  55

  
	
  Section 14.24

  	
  Exclusivity

  	
  56

  
	
  Section 14.25

  	
  No Duplication; No Double Recovery

  	
  56

  

 

Schedules

	
  Schedule 1.1(9)

  	
   

  	
  List of ATOB Entities

  	
   

  
	
  Schedule 1.1(64)(c)

  	
   

  	
  List of U.S. state and local Taxes

  	
   

  
	
  Schedule 1.1(94)

  	
   

  	
  List of Qualified Tax Counsel

  	
   

  
	
  Schedule 1.1(101)

  	
   

  	
  List of Section 355 Entities

  	
   

  
	
  Schedule 1.1(120)

  	
   

  	
  List of Transferee Entities

  	
   

  
	
  Schedule 1.1(121)

  	
   

  	
  List of Transferor Entities

  	
   

  
	
  Schedule 2.1(a)

  	
   

  	
  Preparation of Pre-Distribution Income Tax Returns

  	
   

  
	
  Schedule 2.2(a)

  	
   

  	
  Preparation of Straddle Income Tax Returns

  	
   

  
	
  Schedule 9.2(c)(iv)

  	
   

  	
  Electronic Document Repository Exceptions and List
  of the Documents / Information to be made Available

  	
   

  
	
  Schedule 9.2(e)(ii)

  	
   

  	
  U.S. AMP Internal Costs and Expenses

  	
   

  
	
  Schedule 9.2(g)

  	
   

  	
  Boca Raton Audit Team – Separation Retention Plan

  	
   

  
	
  Schedule 9.2(h-1)

  	
   

  	
  Form of Power of Attorney

  	
   

  
	
  Schedule 9.2(h-2)

  	
   

  	
  List of Activities where Signature of Representative
  Required

  	
   

  
	
  Schedule 9.3(a)

  	
   

  	
  Payment of Audit Amounts

  	
   

  
	
  Schedule 11.1

  	
   

  	
  Allocation of certain Tax Attributes

  	
   

  
	
  Schedule 11.3

  	
   

  	
  Description of certain Tax Attributes

  	
   

  
	
  Schedule 11.6

  	
   

  	
  Actions to Minimize Taxes

  	
   

  
	
  Schedule 13.10

  	
   

  	
  Matters Excepted from Arbitration

  	
   

  

 

 iii

TAX
SHARING AGREEMENT

THIS
TAX SHARING AGREEMENT (this “Agreement”) is made and entered into as of the
29th day of June, 2007, by and among Tyco International Ltd., a Bermuda
corporation (“Tyco”), Covidien Ltd., a Bermuda corporation (“Healthcare”), and
Electronics Ltd., a Bermuda corporation (“Electronics”).  Each of Tyco, Healthcare, and Electronics is
sometimes referred to herein as a “Party” and collectively, as the “Parties”.

W
I T N E S S E T H:

WHEREAS,
Tyco, acting through its direct and indirect Subsidiaries, currently conducts a
number of businesses, including (i) the Healthcare Business (as defined
herein), (ii) the Electronics Business (as defined herein), and (iii) the Tyco
Retained Business (as defined herein);

WHEREAS,
the Board of Directors of Tyco has determined that it is appropriate, desirable
and in the best interests of Tyco and its stockholders to separate Tyco into
three separate, publicly traded companies, one for each of (i) the Healthcare
Business, which shall be owned and conducted, directly or indirectly, by
Healthcare, (ii) the Electronics Business, which shall be owned and conducted,
directly or indirectly, by Electronics, and (iii) the Tyco Retained Business
which shall be owned and conducted, directly or indirectly, by Tyco;

WHEREAS,
in order to effect such separation, the Board of Directors of Tyco has
determined that it is appropriate, desirable and in the best interests of Tyco
and its stockholders (i) to enter into a series of transactions whereby (A)
Tyco and/or one or more members of the Tyco Group will, collectively, own all
of the Tyco Retained Assets and assume (or retain) all of the Tyco Retained
Liabilities, (B) Healthcare and/or one or more members of the Healthcare Group
will, collectively, own all of the Healthcare Assets and assume (or retain) all
of the Healthcare Liabilities, and (C) Electronics and/or one or more members
of the Electronics Group will, collectively, own all of the Electronics Assets
and assume (or retain) all of the Electronics Liabilities and (ii) for Tyco to
distribute to the holders of Tyco Common Stock on a pro rata basis (in each
case without consideration being paid by such stockholders) (A) all of the
outstanding shares of common stock, par value $0.20 per share, of Healthcare
(the “Healthcare Common Stock”), and (B) all of the outstanding shares of
common stock, par value $0.20 per share, of Electronics (the “Electronics
Common Stock”) (such transactions as they may be amended or modified from time
to time, collectively, the “Plan of Separation”);

WHEREAS,
it is the intention of the Parties that each of the contributions of assets to,
and the assumption of liabilities by, Healthcare and Electronics together with
the corresponding distribution of all of the Healthcare Common Stock and the
Electronics Common Stock, respectively, shall qualify as a reorganization
within the meaning of Sections 368(a)(1)(D) and 355 of the Internal Revenue
Code of 1986, as amended (the “Code”);

WHEREAS,
it is the intention of the Parties that each of the distributions of Healthcare
Common Stock and Electronics Common Stock, respectively, to the stockholders of
Tyco will qualify as tax-free under Section 355(a) of the Code to such
stockholders and as tax-free to Tyco under Section 361(c) of the Code;

 1
 

WHEREAS,
subject to Section 9.2, it is the intention of the Parties that all
pre-separation U.S. federal, state, and local Audits will be managed,
controlled and conducted by Tyco’s U.S. Federal and State Audit Groups
currently located in Boca Raton, Florida (the “Boca Raton Audit Team”);

WHEREAS,
notwithstanding the implementation of certain internal transactions undertaken
preparatory to and in contemplation of aligning and properly capitalizing the
Healthcare Business, the Electronics Business, and the Tyco Retained Business
prior to the Distributions, it is the intention of the Parties that the shared
responsibility for certain Tax liabilities and certain Distribution Tax
liabilities be given effect no earlier than and only upon the Effective Time,
all as described more fully herein; and

WHEREAS,
in connection with the Plan of Separation, the Parties desire to set forth
their agreement on the rights and obligations with respect to handling and
allocating Taxes and related matters.

NOW,
THEREFORE, in consideration of the foregoing and the terms, conditions,
covenants and provisions of this Agreement, each of the Parties mutually
covenant and agree as follows:

ARTICLE I

DEFINITIONS AND INTERPRETATION

Section 1.1             Definitions.  As used in this Agreement, the following
terms shall have the following meanings:

(1)           “AAA” has the
meaning set forth in Section 13.2.

(2)           “Acceptance Notice”
has the meaning set forth in Section 9.2(d)(iii).

(3)           “Active Business”
means the business conducted by each of the ATOB Entities as of the applicable
distribution date.

(4)           “Administration Vote
Notice” has the meaning set forth in Section 9.2(d)(i).

(5)           “Affiliate”
means a Person that directly, or indirectly, through one or more
intermediaries, controls, or is controlled by, or is under common control with,
a specified Person.  A Person shall be
deemed to control another Person if such first Person possesses, directly or
indirectly, the power to direct, or cause the direction of, the management and
policies of such other Person, whether through the ownership of voting
securities, by contract or otherwise. 
For purposes hereof, none of the Parties or their respective
Subsidiaries shall be considered an “Affiliate” of any of the other Parties or
their respective Subsidiaries (determined on the same basis).

(6)           “Agreement” has
the meaning set forth in the preamble hereto.

 2
 

(7)           “Ancillary
Agreements” has the meaning set forth in the Separation and Distribution
Agreement.

(8)           “Assets” has the
meaning set forth in the Separation and Distribution Agreement.

(9)           “ATOB Entities”
mean the entities listed on Schedule 1.1(9).

(10)         “AU Dealer Cost Issue”
has the meaning set forth in Section 4.1(a).

(11)         “Audit” means any
audit (including a determination of the status of qualified and non-qualified
employee benefit plans), assessment of Taxes, other examination by or on behalf
of any Taxing Authority (including notices), proceeding, or appeal of such a
proceeding relating to Taxes, whether administrative or judicial, including
proceedings relating to competent authority determinations initiated by a Party
or any of its Subsidiaries.

(12)         “Audit External
Advisor” has the meaning set forth in Section 9.2(c)(iii).

(13)         “Audit Management
Party” means the Party responsible for administering and controlling an
Audit pursuant to Section 9.2(a), as may be changed from time to time in
accordance with Section 9.2(d).

(14)         “Audit Representative”
means the Senior Vice President and Chief Tax Officer of each Party (or such
other officer of a Party that may be designated by that Party’s Chief Financial
Officer from time to time).

(15)         “Bankruptcy”
means, with respect to a Person:

(a)           the filing of an
application by the Person for, or a consent to, the appointment of a trustee of
the Person’s assets;

(b)           the filing by the
Person of a voluntary petition in bankruptcy or the filing of a pleading in any
court of record admitting in writing the Person’s inability to pay debts as
they come due;

(c)           a general assignment by
such Person for the benefit of creditors;

(d)           the filing by the Person
of an answer admitting the material allegations of, or the Person’s consenting
to, or defaulting in answering a bankruptcy petition filed against the Person
in any bankruptcy proceeding; or

(e)           the entry of an order,
judgment or decree by any court of competent jurisdiction adjudicating the
Person bankrupt or appointing a trustee, custodian, receiver or liquidator of
such Person’s assets, which order, judgment or decree continues unstayed and in
effect for any period of sixty (60) days.

(16)         “Boca Raton Audit Team”
has the meaning referred to in the recitals to this Agreement.

 3
 

(17)         “Business Day”
means any day other than a Saturday, Sunday or a day on which banks are
required to be closed in New York, New York.

(18)         “Change of Control”
means the occurrence of any of the following (i) the direct or indirect sale,
Transfer or other disposition (other than by way of merger or consolidation),
in one or a series of related transactions, of all or substantially all of the
properties or assets of a Party and the members of such Party’s Group taken as
a whole to any “person” (as that term is used in Section 13(d) of the Exchange
Act); (ii) the adoption of a plan relating to the liquidation or dissolution of
a Party other than (A) the consolidation with, merger into or Transfer of all
or part of the properties and assets of any Subsidiary of a Party to such Party
or any other Subsidiary of such Party, and (B) the merger of a Party with an
Affiliate solely for the purpose of reincorporating (or re-forming) the Party
in another jurisdiction; (iii) the consummation of any transaction (including,
without limitation, any merger or consolidation) the result of which is that
any “person” (as defined above) becomes the Beneficial Owner (as defined in
Rules 13d-3 and 13d-5 under the Exchange Act, except that a person shall be
deemed to have “beneficial ownership” of all securities that such person has
the right to acquire, whether such right is exercisable immediately or only
after the passage of time), directly or indirectly, of more than fifty percent
(50%) of the voting stock of a Party, measured by voting power rather than
number of shares; (iv) during any consecutive two-year period, individuals who
at the beginning of such period constituted the board of directors of a Party
(together with any new directors whose election by such board of directors or
whose nomination for election by the stockholders of the Party was approved by
a vote of a majority of the directors then still in office who are entitled to
vote to elect such new director and were either directors at the beginning of
such period or persons whose election as directors or nomination for election
was previously so approved) cease for any reason to constitute a majority of
the Board of Directors or the board of directors of such Party then in office;
(v) a change of the chief executive officer of a Party; or (vi) a Party
consolidates with, or merges with or into, directly or indirectly, any Person,
or any Person consolidates with, or merges with or into, a Party, in any such
event pursuant to a transaction in which any of the outstanding voting stock of
such Party or such other Person is converted into or exchanged for cash,
securities or other property, other than any such transaction where the voting
stock of such Party outstanding immediately prior to such transaction is
converted into or exchanged for voting stock of the surviving or transferee
Person constituting a majority of the outstanding shares of such voting stock
of such surviving or transferee Person (immediately after giving effect to such
issuance).

(19)         “Claimed Deductions”
has the meaning set forth in Section 6.1(a).

(20)         “Claiming Party”
has the meaning set forth in Section 6.1(a).

(21)         “Code” has the
meaning referred to in the recitals to this Agreement.

(22)         “Common Parent”
means (a) for U.S. federal income tax purposes, the “common parent corporation”
of an “affiliated group” (in each case, within the meaning of Section 1504 of
the Code) filing a U.S. federal consolidated income tax return, or (b) for
state, local or non-U.S. income tax purposes, the common parent (or similar
term) (which need not be a corporation) of a consolidated, unitary, combined,
group, Organschaft or similar group.

 4
 

(23)         “Correlative
Adjustment” means a disallowance of an item of deduction, loss or credit
(or an increase of an item of income or gain) that is related or attributable
to the Assets of a Party or that Party’s Affiliates, that is included in a Tax
Return for a Pre-Distribution Tax Period or the portion of a Straddle Tax
Period ending on the Distribution Date, and that results in a correlative
increase of an item of deduction, loss or credit (or reduction of an item of
income or gain) with respect to another Party or that Party’s Affiliates with
respect to a Pre-Distribution Tax Period or Straddle Tax Period.

(24)         “Correlative Detriment”
has the meaning set forth in Section 4.1(b).

(25)         “Deferred Compensation
Deduction” means an Income Tax deduction arising with respect to (a) the
Tyco Deferred Compensation Liabilities, the Tyco Deferred Stock Units, the
Healthcare Deferred Compensation Liabilities, the Healthcare Deferred Stock
Units, the Electronics Deferred Compensation Liabilities, or the Electronics
Deferred Stock Units; (b) the Tyco Options, the Healthcare Options or the
Electronics Options, including, without limitation, a deduction arising from
disqualifying dispositions relating to prior exercises of stock options issued
pursuant to the Tyco International Ltd. Employee Stock Purchase Plan; or (c)
the Tyco Restricted Stock, the Tyco Restricted Stock Units, the Tyco
Performance Share Units, the Healthcare Restricted Stock, the Healthcare
Restricted Stock Units, the Healthcare Performance Share Units, the Electronics
Restricted Stock, the Electronics Restricted Stock Units, or the Electronics
Performance Share Units, as such terms are defined for purposes of the
Separation and Distribution Agreement (referred to collectively as the “Deferred
Compensation Deductions” and each individually as a “Deferred Compensation
Deduction”).

(26)         “Dispute” has the
meaning set forth in Section 13.1.

(27)         “Dispute Notice”
has the meaning set forth in Section 13.1.

(28)         “Distribution” or “Distributions”
means, individually or collectively:

(a)           the distribution on the
Distribution Date to holders of record of shares of Tyco Common Stock as of the
Distribution Date of the Electronics Common Stock and the Healthcare Common
Stock owned by Tyco, and

(b)           to the extent not
otherwise included in (a), the distributions described in the IRS Ruling and
the Tax Representation Letters.

(29)         “Distribution Date”
means the date on which the Distributions are effectuated pursuant to the
Separation and Distribution Agreement.

(30)         “Distribution Taxes”
mean any and all Taxes (a) required to be paid by or imposed on a Party or any
of its Affiliates resulting from, or directly arising in connection with, the
failure of the Distributions to qualify under Section 355(a) or (c) of the Code
or, if applicable, Section 361(c) of the Code, or the application of Section
355(d) or (e) of the Code to the Distributions (or the failure to qualify under
or the application of corresponding provisions of the Laws of other
jurisdictions); or (b) required to be paid by or imposed on a Party or any of
its Affiliates resulting from, or directly arising in connection with, the
failure of any transaction undertaken in connection with or pursuant to the
Plan of Separation to qualify 

 5
 

for tax-free treatment, in whole or in part, but, with
respect to both (a) and (b) above, only to the extent that such qualification
or tax-free treatment was claimed by one or more of the Parties (or any of
their Affiliates) on a Tax Return for a Pre-Distribution Tax Period or a
Straddle Tax Period.

(31)         “Due Date” means
the date (taking into account all valid extensions) upon which a Tax Return is
required to be filed with or Taxes are required to be paid to a Taxing
Authority, whichever is applicable.

(32)         “Effective Time”
has the meaning set forth in the Separation and Distribution Agreement.

(33)         “Elected Party”
has the meaning set forth in Section 9.2(d)(iii).

(34)         “Electronics” has
the meaning set forth in the recitals hereto.

(35)         “Electronics
Allocable Audit Portion” means the amount of any Taxes due and payable that
are attributable to a Pre-Distribution Tax Period or the portion of a Straddle
Tax Period ending on the Distribution Date that are not reported on a Tax
Return filed for such Pre-Distribution Tax Period or Straddle Tax Period to the
extent such Taxes are attributable to any Electronics-Tyco Shared Entities or
Electronics-Healthcare Shared Entities, as the case may be.  The determination of the amount of additional
Taxes due and payable that are attributable to the Electronics-Tyco Shared Entities
or the Electronics-Healthcare Shared Entities, as applicable, shall be
calculated on a “with and without basis,” by calculating the amount of the
excess (if any) of (a) the net amount of Taxes due and payable pursuant to a
Final Determination, over (b) the net amount of Taxes that would be due and
payable after excluding from the Final Determination any adjustments contained
therein that are not attributable to the business operations conducted through
the use of the Electronics Assets and Electronics Liabilities; provided,
however, that (a) and (b) shall be determined by applying, in a manner
that reduces the overall Taxes due and payable pursuant to the Final
Determination, any available losses, deductions, allowances or credits of any
of the Parties (or their Subsidiaries) that are permitted or allowed as a
result of consolidated, combined, unitary, group, Organschaft or similar relief
of the Parties (or their Subsidiaries) by applying ordering rules similar to
those described in Schedule 11.6; provided, further, if the sum
of the Taxes that would be shown as due and payable as a result of the Final
Determination if such Final Determination applied on a separate basis for the
business operations conducted through the use of each of the Electronics Assets
and Electronics Liabilities, the Healthcare Assets and Healthcare Liabilities,
and the Tyco Retained Assets and Tyco Retained Liabilities, respectively, is
different than the Taxes actually due and payable as a result of the Final
Determination, the Electronics Allocable Audit Portion shall be equal to the
product of (c) such Taxes that are actually due and payable pursuant to the
Final Determination, and (d) a fraction (i) the numerator of which is the sum
of the Taxes that would be due and payable pursuant to the Final Determination
if applied on a separate basis for the business operations conducted through
the use of the Electronics Assets and Electronics Liabilities, and (ii) the
denominator of which is the sum of the Taxes that would be due and payable
pursuant to the Final Determination if such Final Determination applied on a
separate basis for each of the business operations conducted through the use of
Electronics Assets and 

 6
 

Electronics Liabilities, the Healthcare Assets and
Healthcare Liabilities, and the Tyco Retained Assets and Tyco Retained
Liabilities, respectively.

(36)         “Electronics Allocable
Portion” means, with respect to a Tax Return filed after the Distribution
Date for either a Pre-Distribution Tax Period or Straddle Tax Period, the
amount of Taxes due and payable for such Pre-Distribution Tax Period or
Straddle Tax Period attributable to any Electronics-Tyco Shared Entities or
Electronics-Healthcare Shared Entities, as the case may be.  The determination of the amount of Taxes due
and payable that are attributable to the Electronics-Tyco Shared Entities or
the Electronics-Healthcare Shared Entities for a given Tax Return shall be
calculated on a “with and without basis,” by calculating the amount of the
excess (if any) of (a) the net amount of Taxes shown as due and payable on such
Tax Return as filed, over (b) the net amount of Taxes that would be shown as
due and payable on such Tax Return if such Tax Return were recalculated
excluding the Electronics-Tyco Shared Entities or the Electronics-Healthcare
Shared Entities, as applicable; provided, however, that (a) and
(b) shall be determined by applying, in a manner that reduces the overall Taxes
due and payable, any available losses, deductions, allowances or credits of any
of the Parties (or their Subsidiaries) that are permitted or allowed as a
result of consolidated, combined, unitary, group, Organschaft or similar relief
of the Parties (or their Subsidiaries) by applying ordering rules similar to
those described in Schedule 11.6; provided, further, if the sum
of the Taxes that would be shown as due and payable on such Tax Return if such
Tax Return were prepared on a separate basis for the business operations
conducted through the use of each of the Electronics Assets and Electronics
Liabilities, the Healthcare Assets and Healthcare Liabilities, and the Tyco
Retained Assets and Tyco Retained Liabilities, respectively, is different than
the Taxes actually due and payable on such Tax Return, the Electronics
Allocable Portion shall be equal to the product of (c) such Taxes that are
actually due and payable, and (d) a fraction (i) the numerator of which is the
Taxes that would be shown as due and payable on such Tax Return if such Tax
Return were prepared on a separate basis for the business operations conducted
through the use of the Electronics Assets and Electronics Liabilities, and (ii)
the denominator of which is the sum of the Taxes that would be shown as due and
payable on such Tax Return if such Tax Return were prepared on a separate basis
for the business operations conducted through the use of each of the
Electronics Assets and Electronics Liabilities, the Healthcare Assets and
Healthcare Liabilities, and the Tyco Retained Assets and Tyco Retained
Liabilities, respectively.

(37)         “Electronics Assets”
and “Electronics Liabilities” shall have the meaning assigned to each of
them as set forth in the Separation and Distribution Agreement.

(38)         “Electronics Business”
has the meaning set forth in the Separation and Distribution Agreement.

(39)         “Electronics Common
Stock” has the meaning set forth in the recitals hereto.

(40)         “Electronics
Distribution Date” has the meaning set forth in the Separation and
Distribution Agreement.

(41)         “Electronics Group”
has the meaning set forth in the Separation and Distribution Agreement.

 7
 

(42)         “Electronics-Healthcare
Shared Entities” mean on or before the Distribution Date, any entities that
conduct business operations through the use of the Electronics Assets and/or
Electronics Liabilities that (i) are merged with and into or otherwise acquired
by the Electronics Business from a Healthcare Tax Group or (ii) filed on a
consolidated, combined, unitary, group, Organschaft or similar basis with the
entities that conduct business operations through the use of the Healthcare
Assets and Healthcare Liabilities.

(43)         “Electronics Sharing
Percentage” means thirty-one percent (31%).

(44)         “Electronics-Tyco
Shared Entities” mean on or before the Distribution Date, any entities that
conduct business operations through the use of the Electronics Assets and/or
Electronics Liabilities that (i) are merged with and into or otherwise acquired
by the Electronics Business from a Tyco Tax Group or (ii) filed on a
consolidated, combined, unitary, group, Organschaft or similar basis with the
entities that conducted business operations through the use of the Tyco
Retained Assets and Tyco Retained Liabilities.

(45)         “Employing Party”
has the meaning set forth in Section 6.1(a).

(46)         “Estimated Tax Return”
has the meaning set forth in Section 2.1(c)(iv).

(47)         “Fault” has the
meaning set forth in Section 5.3.

(48)         “Final Determination”
means the final resolution of liability for any Tax for any taxable period, by
or as a result of:

(a)           a final decision,
judgment, decree or other order by any court of competent jurisdiction that can
no longer be appealed;

(b)           a final settlement with
the IRS, a closing agreement or accepted offer in compromise under Sections
7121 or 7122 of the Code, or a comparable agreement under the Laws of other
jurisdictions, which resolves the liability for the Taxes addressed in such
agreement for any taxable period;

(c)           any allowance of a
refund or credit in respect of an overpayment of Tax, but only after the
expiration of all periods during which such refund may be recovered by the
jurisdiction imposing the Tax; or

(d)           any other final
disposition, including by reason of the expiration of the applicable statute of
limitations.

(49)         “Former Electronics
Employee” has the meaning set forth in the Separation and Distribution
Agreement.

(50)         “Former Healthcare
Employee” has the meaning set forth in the Separation and Distribution
Agreement.

(51)         “Former Tyco Employee”
has the meaning set forth in the Separation and Distribution Agreement.

 8
 

(52)         “Group” means the
Tyco Group, the Healthcare Group, or the Electronics Group.

(53)         “Healthcare” has
the meaning set forth in the recitals to this Agreement.

(54)         “Healthcare Allocable
Audit Portion” means the amount of any Taxes due and payable that are
attributable to a Pre-Distribution Tax Period or the portion of a Straddle Tax
Period ending on the Distribution Date that are not reported on a Tax Return
filed for such Pre-Distribution Tax Period or Straddle Tax Period to the extent
such Taxes are attributable to any Healthcare-Tyco Shared Entities or
Healthcare-Electronics Shared Entities, as the case may be.  The determination of the amount of additional
Taxes due and payable that are attributable to the Healthcare-Tyco Shared
Entities or the Healthcare-Electronics Shared Entities, as applicable, shall be
calculated on a “with and without basis,” by calculating the amount of the
excess (if any) of (a) the net amount of Taxes due and payable pursuant to a
Final Determination, over (b) the net amount of Taxes that would be due and
payable after excluding from the Final Determination any adjustments contained
therein that are not attributable to the business operations conducted through
the use of the Healthcare Assets and Healthcare Liabilities; provided, however,
that (a) and (b) shall be determined by applying, in a manner that reduces the
overall Taxes due and payable pursuant to the Final Determination, any
available losses, deductions, allowances or credits of any of the Parties (or
their Subsidiaries) that are permitted or allowed as a result of consolidated,
combined, unitary, group, Organschaft or similar relief of the Parties (or
their Subsidiaries) by applying ordering rules similar to those described in
Schedule 11.6; provided, further, if the sum of the Taxes that
would be shown as due and payable as a result of the Final Determination if
such Final Determination applied on a separate basis for the business
operations conducted through the use of each of the Electronics Assets and
Electronics Liabilities, the Healthcare Assets and Healthcare Liabilities, and
the Tyco Retained Assets and the Tyco Retained Liabilities, respectively, is
different than the Taxes actually due and payable as a result of the Final
Determination, the Healthcare Allocable Audit Portion shall be equal to the
product of (c) such Taxes that are actually due and payable pursuant to the
Final Determination, and (d) a fraction (i) the numerator of which is the sum
of the Taxes that would be due and payable pursuant to the Final Determination
if applied on a separate basis for the business operations conducted through
the use of the Healthcare Assets and Healthcare Liabilities, and (ii) the
denominator of which is the sum of the Taxes that would be due and payable
pursuant to the Final Determination if such Final Determination applied on a
separate basis for each of the business operations conducted through the use of
Electronics Assets and Electronics Liabilities, the Healthcare Assets and
Healthcare Liabilities, and the Tyco Retained Assets and Tyco Retained
Liabilities, respectively.

(55)         “Healthcare Allocable
Portion” means, with respect to a Tax Return filed after the Distribution
Date for either a Pre-Distribution Tax Period or Straddle Tax Period, the
amount of Taxes due and payable for such Pre-Distribution Tax Period or
Straddle Tax Period attributable to any Healthcare-Tyco Shared Entities or
Healthcare-Electronics Shared Entities, as the case may be.  The determination of the amount of Taxes due
and payable that are attributable to the Healthcare-Tyco Shared Entities or the
Healthcare-Electronics Shared Entities for a given Tax Return shall be
calculated on a “with and without basis,” by calculating the amount of the
excess (if any) of (a) the net amount of Taxes shown as due and 

 9
 

payable on such Tax Return as filed, over (b) the net
amount of Taxes that would be shown as due and payable on such Tax Return if
such Tax Return was recalculated excluding the Healthcare-Tyco Shared Entities
or the Healthcare-Electronics Shared Entities, as applicable; provided, however,
that (a) and (b) shall be determined by applying, in a manner that reduces the
overall Taxes due and payable, any available losses, deductions, allowances or
credits of any of the Parties (or their Subsidiaries) that are permitted or
allowed as a result of consolidated, combined, unitary, group, Organschaft or
similar relief of the Parties (or their Subsidiaries) by applying ordering
rules similar to those described in Schedule 11.6; provided, further,
if the sum of the Taxes that would be shown as due and payable on such Tax
Return if such Tax Return were prepared on a separate basis for the business
operations conducted through the use of each of the Electronics Assets and
Electronics Liabilities, the Healthcare Assets and Healthcare Liabilities, and
the Tyco Retained Assets and Tyco Retained Liabilities, respectively, is
different than the Taxes actually due and payable on such Tax Return, the
Healthcare Allocable Portion shall be equal to the product of (c) such Taxes
that are actually due and payable, and (d) a fraction (i) the numerator of
which is the Taxes that would be shown as due and payable on such Tax Return if
such Tax Return were prepared on a separate basis for the business operations
conducted through the use of Healthcare Assets and Healthcare Liabilities, and
(ii) the denominator of which is the sum of the Taxes that would be shown as
due and payable on such Tax Return if such Tax Return were prepared on a
separate basis for the business operations conducted through the use of each of
the Electronics Assets and Electronics Liabilities, the Healthcare Assets and
Healthcare Liabilities, and the Tyco Retained Assets and Tyco Retained
Liabilities, respectively.

(56)         “Healthcare Assets”
and “Healthcare Liabilities” shall have the meaning assigned to each of
them as set forth in the Separation and Distribution Agreement.

(57)         “Healthcare Business”
has the meaning set forth in the Separation and Distribution Agreement.

(58)         “Healthcare Common
Stock” has the meaning set forth in the recitals hereto.

(59)         “Healthcare
Distribution Date” has the meaning set forth in the Separation and
Distribution Agreement.

(60)         “Healthcare-Electronics
Shared Entities” mean on or before the Distribution Date, any entities that
conduct business operations through the use of the Healthcare Assets and/or
Healthcare Liabilities that (i) are merged with and into or otherwise acquired
by the Healthcare Business from an Electronics Tax Group or (ii) filed on a
consolidated, combined, unitary, group, Organschaft or similar basis with the
entities that conduct business operations through the use of the Electronics
Assets and Electronics Liabilities.

(61)         “Healthcare Group”
has the meaning set forth in the Separation and Distribution Agreement.

(62)         “Healthcare Sharing
Percentage” means forty-two percent (42%).

(63)         “Healthcare-Tyco
Shared Entities” mean on or before the Distribution Date, any entities that
conduct business operations through the use of the Healthcare Assets and/or
Healthcare Liabilities that (i) are merged with and into or otherwise acquired
by the Healthcare 

 10
 

Business from a Tyco Tax Group or (ii) filed on a
consolidated, combined, unitary, group, Organschaft or similar basis with the
entities that conduct business operations through the use of the Tyco Retained
Assets and Tyco Retained Liabilities.

(64)         “Income Taxes”
mean:

(a)           all Taxes based upon,
measured by, or calculated with respect to (i) net income or profits
(including, but not limited to, any capital gains, minimum tax or any Tax on
items of tax preference, but not including sales, use, real, or personal
property, gross or net receipts, value added, excise, leasing, transfer or
similar Taxes), or (ii) multiple bases (including, but not limited to,
corporate franchise, doing business and occupation Taxes) if one or more bases
upon which such Tax is determined is described in clause (a)(i) above;

(b)           all U.S., state, local
or non-U.S. franchise Taxes;

(c)           all U.S. state and
local Taxes or non-U.S. Taxes not otherwise included in (a) or (b) above that
are listed on Schedule 1.1(64)(c); and

(d)           including in the case
of each of (a), (b), and (c) above, any related interest and any penalties,
additions to such Tax or additional amounts imposed with respect thereto by any
Taxing Authority.

(65)         “Income Tax Returns”
mean all Tax Returns that relate to Income Taxes.

(66)         “Indemnified Party”
means the Party which is or may be entitled pursuant to this Agreement to
receive any payments (including reimbursement for Taxes or costs and expenses)
from another Party or Parties to this Agreement.

(67)         “Indemnifying Party”
means the Party which is or may be required pursuant to this Agreement to make
indemnification or other payments (including reimbursement for Taxes and costs
and expenses) to another Party to this Agreement.

(68)         “IRS” means the
United States Internal Revenue Service or any successor thereto, including, but
not limited to its agents, representatives, and attorneys.

(69)         “IRS Ruling” means
the requests submitted to the IRS for all private letter rulings to be obtained
by Tyco from the IRS in connection with the Plan of Separation, and any
supplemental materials submitted to the IRS relating thereto, and the IRS
private letter rulings received by Tyco with respect to the Plan of Separation.

(70)         “Law” means any
U.S. or non-U.S. 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
income tax treaty.

(71)         “LIBOR” means the
British Bankers Association London Interbank Offered Rate, as it is published
by Reuters, or any successor to or substitute for such service providing rate
quotations of the British Bankers Association London Interbank Offered Rate, at

 11
 

approximately 11:00 a.m., London time.  In the event that such British Bankers
Association London Interbank Offered Rate is not available at such time for any
reason, then LIBOR shall be the rate at which dollar deposits of $10 million
and for a maturity of one (1) week are offered by the principal London office
of Citibank in the London interbank market at approximately 11:00 a.m., London
time.

(72)         “Majority of the
Parties” means the consent of at least two of the Parties.

(73)         “McDermott” means
McDermott Will & Emery LLP.

(74)         “Mediation Period”
has the meaning set forth in Section 13.2.

(75)         “New York Courts”
has the meaning set forth in Section 14.15.

(76)         “Non-Income Tax
Returns” mean all Tax Returns other than Income Tax Returns.

(77)         “Participating Party”
has the meaning set forth in Section 9.2(c)(i).

(78)         “Party” has the
meaning set forth in the preamble hereto.

(79)         “Person” means any
natural person, firm, individual, corporation, business trust, joint venture,
association, company, limited liability company, partnership, or other organization
or entity, whether incorporated or unincorporated, or any governmental entity.

(80)         “Plan of Separation”
has the meaning set forth in the recitals hereto.

(81)         “Post-Distribution
Income Tax Returns” mean, collectively, all Income Tax Returns required to
be filed by a Party or its Affiliates for a Post-Distribution Tax Period.

(82)         “Post-Distribution
Ruling” has the meaning set forth in Section 5.4.

(83)         “Post-Distribution Tax
Period” means a Tax year beginning and ending after the Distribution Date.

(84)         “Pre-Distribution
Income Tax Returns” mean, collectively, all Income Tax Returns required to
be filed by a Party or its Affiliates for a Pre-Distribution Tax Period.

(85)         “Pre-Distribution
Non-Income or Non-U.S. Tax Audit” means any Audit related to any (a) U.S.
federal, state, or local Taxes other than Income Taxes, or (b) any non-U.S.
Taxes, in each case with respect to a Tax Return filed, or allegedly required
to be filed, for any Pre-Distribution Tax Period or Straddle Tax Period; provided,
however, this term shall not include any Audit that is a
Pre-Distribution Transfer Pricing Tax Audit, a Pre-Distribution TME Payroll Tax
Audit, or a Pre-Distribution Tyco (U.S.) Qualified Plan Tax Audit.

(86)         “Pre-Distribution Tax
Period” means a Tax year beginning and ending on or before the Distribution
Date.

 12
 

(87)         “Pre-Distribution TME
Payroll Tax Audit” means any Audit for a Pre-Distribution Tax Period or
Straddle Tax Period of payroll taxes for TME Management Corp., Citrine
Management Corp., or any predecessor payroll company to TME Management Corp.

(88)         “Pre-Distribution
Transfer Pricing Tax Audit” means any Audit of any Income Taxes related to
or arising from (a) an intercompany transfer pricing adjustment under
Section 482 of the Code and the Treasury Regulations thereunder, or an
analogous provision under U.S. state and local or non-U.S. Law, or (b) a
determination that the activities of a Party or its Affiliates give rise to a “permanent
establishment,” presence, or nexus in any jurisdiction that could subject it to
Income Tax there, in each of (a) and (b), for any Pre-Distribution Tax Period
or Straddle Tax Period.

(89)         “Pre-Distribution Tyco
(U.S.) Qualified Plan Tax Audit” means any Audit for a Pre-Distribution Tax
Period or Straddle Tax Period of any Healthcare US Pension Plan, Electronics US
Pension Plan, U.S. qualified Tyco Retained Pension Plan, U.S. qualified
Healthcare Savings Plan, U.S. qualified Electronics Savings Plan or U.S.
qualified Tyco Retained Savings Plan (as such terms are defined for purposes of
the Separation and Distribution Agreement).

(90)         “Pre-Distribution U.S.
Income Tax Audit” means any Audit of any U.S. federal, state, or local
Income Tax Return filed, or allegedly required to be filed, for any
Pre-Distribution Tax Period or Straddle Tax Period; provided, however,
this term shall not include any Audit that is a Pre-Distribution Transfer
Pricing Tax Audit, a Pre-Distribution Tyco (U.S.) Qualified Plan Tax Audit, or
a Pre-Distribution TME Payroll Tax Audit.

(91)         “Preparing Party” has
the meaning set forth in Section 2.1(a).

(92)         “Prime Rate” has
the meaning set forth in the Separation and Distribution Agreement.

(93)         “Proposed Acquisition
Transaction” means a transaction or series of 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), as
a result of which any of the Parties or any of the Section 355 Entities (or any
successor thereto) would merge or consolidate with any other Person, or as a
result of which any Person or any group of Persons would (directly or
indirectly) acquire, or have the right to acquire (through an option or otherwise),
from any of the Parties or any of their Affiliates (or any successor thereto)
and/or one or more holders of their stock, respectively, any amount of stock of
any of the Parties or any of the Section 355 Entities, as the case may be, that
would, when combined with any other changes in ownership of the stock of such
Party or any of the Section 355 Entities, comprise more than thirty-five
percent (35%) of (a) the value of all outstanding stock of such Party or any of
the Section 355 Entities 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
(b) the total combined voting power of all outstanding stock of such Party or
any of the Section 355 Entities 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.  For purposes of determining
whether a transaction constitutes an indirect acquisition for purposes of the
first

 13
 

sentence of this definition, any recapitalization or
other action resulting in a shift of voting power or any redemption of shares
of stock shall be treated as an indirect acquisition of shares 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 by the Parties in good faith.

(94)         “Qualified Tax Counsel”
means any of the law firms listed on Schedule 1.1(94).

(95)         “Redo Project”
means the proposed adjustments to the U.S. federal Income Tax Returns prepared
by or for Tyco’s, Electronics’ and Healthcare’s Subsidiaries, respectively,
that have been submitted to the IRS (or will be submitted to the IRS upon commencement
of an Audit) for Tax periods prior to and including the Distribution Date as
disclosed in the footnotes to the Parties’ respective financial statements.

(96)         “Refund” means any
refund of Taxes (including any overpayment of Taxes that can be refunded or,
alternatively, applied to future Taxes payable), including any interest paid on
or with respect to such refund of Taxes; provided, however, the
amount of the refund of Taxes shall be net of any Taxes imposed by any Taxing
Authority on the receipt of the refund.

(97)         “Replaced Audit
Management Party” has the meaning set forth in Section 9.2(d)(iv).

(98)         “Requesting Party”
shall have the meaning set forth in Section 5.4.

(99)         “Restricted Period”
means the period beginning at the Effective Time and ending on the two-year
anniversary of the day after the later of the Electronics Distribution Date and
the Healthcare Distribution Date.

(100)       “Rules” has the
meaning set forth in Section 13.3.

(101)       “Section 355 Entities”
mean the entities listed on Schedule 1.1(101).

(102)       “Separation and
Distribution Agreement” means the Separation and Distribution Agreement by
and among Tyco, Healthcare, and Electronics, dated as of June 29, 2007.

(103)       “Shared Entities”
mean, each individually and collectively, all Tyco-Electronics Shared Entities,
Tyco-Healthcare Shared Entities, Electronics-Tyco Shared Entities,
Electronics-Healthcare Shared Entities, Healthcare-Tyco Shared Entities, and
Healthcare-Electronics Shared Entities.

(104)       “Sharing Percentages”
means, with respect to Tyco, the Tyco Sharing Percentage, with respect to
Healthcare, the Healthcare Sharing Percentage, and with respect to Electronics,
the Electronics Sharing Percentage.

(105)       “Spinco Parties”
mean, each individually and collectively, Healthcare and Electronics.

 14
 

(106)       “Straddle Income Tax
Returns” mean, collectively, all Income Tax Returns required to be filed by
a Party and its Affiliates for a Straddle Tax Period.

(107)       “Straddle Tax Period”
means a Tax year beginning before the Distribution Date and ending after the
Distribution Date.

(108)       “Subsidiary” has the
meaning set forth in the Separation and Distribution Agreement.

(109)       “Tax” or “Taxes”
whether used in the form of a noun or adjective, means taxes on or measured by
income, franchise, gross receipts, sales, use, excise, payroll, personal
property, real property, ad-valorem, value-added, leasing, leasing use or other
taxes, levies, imposts, duties, charges, or withholdings of any nature.  Whenever the term “Tax” or “Taxes” is used it
shall include penalties, fines, additions to tax and interest thereon.

(110)       “Tax Attributes”
mean for U.S. federal, state, local, and non-U.S. Income Tax purposes, earnings
and profits, tax basis, net operating and capital loss carryovers or
carrybacks, alternative minimum Tax credit carryovers or carrybacks, general
business credit carryovers or carrybacks, income tax credits or credits against
income tax, disqualified interest and excess limitation carryovers or
carrybacks, overall foreign losses, research and experimentation credit base
periods, and all other items that are determined or computed on an affiliated
group basis (as defined in Section 1504(a) of the Code determined without
regard to the exclusion contained in Section 1504(b)(3) of the Code), or similar
Tax items determined under applicable Tax law, including the tax attributes
listed on Schedule 11.1.

(111)       “Tax Benefit Actually
Realized” means with respect to a Party and its Subsidiaries the actual
reduction in Taxes due and payable determined only with respect to the
referenced taxable year or any prior taxable year, and is equal to 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 years (excluding the effect of any carryforwards of net operating
or capital losses or Tax credits to such year) had there been no payment or
event giving rise to such a determination, over (ii) the amount of Taxes
actually paid by the Party and its Subsidiaries in such taxable years (excluding
the effect of any carryforwards of net operating losses or capital losses or
Tax credits to such year) after taking into account such payment or
determination; and

(b)           the excess (if any) of
(i) the amount of the Refund actually received by the Party and its
Subsidiaries with respect to such taxable years or any carryback year
(excluding the effect of any carryforwards of net operating losses or capital
losses or Tax credits to such year) as a result of the carryback of Tax items
to prior taxable years after taking into account such payment or determination,
over (ii) the amount of the Refund that the Party and its Subsidiaries would
have been entitled to receive with respect to such taxable years or any
carryback year (excluding the effect of any carryforwards of net operating
losses or capital losses or Tax credits to such year) as a result of the
carryback of Tax items to prior taxable years had there been no payment or
event giving rise to such a determination.

 15

The Tax Benefit Actually Realized shall be computed based on the actual
U.S. or non-U.S. income tax rates applicable to the Party and its
Subsidiaries during the applicable tax year; provided, however,
that if the Tax Benefit Actually Realized includes a U.S. federal Income Tax
benefit attributable to the deduction of interest included in Taxes, then the
Parties shall assume that the applicable U.S. state and local Income Tax rate
is 2 percent (2%) in lieu of the applicable Party’s and its Subsidiaries’ actual
U.S. state and local Income Tax rate.

(112)       “Tax-Free Status”
means the qualification of a Distribution or any other transaction contemplated
by the IRS Ruling or any Tax Opinion as a transaction in which gain or loss is
not recognized, in whole or in part, and no amount is included in income,
including by reason of Distribution Taxes, for U.S. federal, state, and local
income tax purposes (other than intercompany items, excess loss accounts or
other items required to be taken into account pursuant to Treasury Regulations
promulgated under Section 1502 of the Code).

(113)       “Tax Group” means
any U.S. federal, state, local or non-U.S. affiliated, consolidated,
combined, unitary, group relief, Organschaft, or a similar group as determined
under applicable Tax Law that files a Tax Return or Tax Returns on a similar
group basis.

(114)       “Taxing Authority”
means any governmental authority or any subdivision, agency, commission, or
authority thereof or any quasi-governmental or private body having
jurisdiction over the assessment, determination, collection, or imposition of
any Tax (including the IRS).

(115)       “Tax Management Change
Event” has the meaning set forth in Section 9.2(d)(i).

(116)       “Tax Opinions” mean
certain Tax opinions and supporting memoranda rendered by McDermott to Tyco or
any of its Affiliates in connection with the Plan of Separation.

(117)       “Tax Package” means:

(a)           a pro forma Tax Return
relating to the operations of a Spinco Party and/or its Subsidiaries that are
required to be included in any Tax Group of which any of the Shared Entities is
or was the Common Parent and such Spinco Party and/or such Subsidiaries is or
was a member for one or more days in a taxable year; and

(b)           all information
relating to the operations of a Spinco Party and/or its Subsidiaries that is
reasonably necessary to prepare and file the applicable Tax Return required to
be filed by any Tax Group of which any of the Shared Entities is or was the
Common Parent and such Spinco Party or any of its Subsidiaries is or was a member
for one or more days in a Tax year.

(118)       “Tax Representation
Letter” means any letter containing certain representations and covenants
issued by a Tyco or any of its Affiliates to McDermott in connection with the
Tax Opinions.

(119)       “Tax Returns” mean
any return, report, certificate, form or similar statement or document
(including any related or supporting information or schedule attached thereto
and any information return, amended tax return, claim for refund, or
declaration of estimated tax) 

 16
 

required to be supplied to, or filed with, a Taxing
Authority in connection with the determination, assessment or collection of any
Tax or the administration of any Laws, regulations, or administrative
requirements relating to any Taxes.

(120)       “Transferee Entities”
mean the entities listed on Schedule 1.1(120).

(121)       “Transferor Entities”
mean the entities listed on Schedule 1.1(121).

(122)       “Treasury Regulations”
mean the final and temporary (but not proposed) income tax and administrative
regulations promulgated under the Code, as such regulations may be amended from
time to time (including corresponding provisions of succeeding regulations).

(123)       “TUSHI” means Tyco
(US) Holdings, Inc.

(124)       “Tyco” has the
meaning set forth in the preamble of this Agreement.

(125)       “Tyco Allocable Audit
Portion” means the amount of any Taxes due and payable that are
attributable to a Pre-Distribution Tax Period or the portion of a
Straddle Tax Period ending on the Distribution Date that are not reported on a
Tax Return filed for such Pre-Distribution Tax Period or Straddle Tax
Period to the extent such Taxes are attributable to any Tyco-Electronics
Shared Entities or Tyco-Healthcare Shared Entities, as the case may
be.  The determination of the amount of
additional Taxes due and payable that are attributable to the Tyco-Electronics
Shared Entities or the Tyco-Healthcare Shared Entities, as applicable,
shall be calculated on a “with and without basis,” by calculating the amount of
the excess (if any) of (a) the net amount of Taxes due and payable pursuant to
a Final Determination, over (b) the net amount of Taxes that would be due and
payable after excluding from the Final Determination any adjustments contained
therein that are not attributable to the business operations conducted through
the use of the Tyco Retained Assets and Tyco Retained Liabilities; provided,
however, that (a) and (b) shall be determined by applying, in a manner
that reduces the overall Taxes due and payable pursuant to the Final
Determination, any available losses, deductions, allowances or credits of any
of the Parties (or their Subsidiaries) that are permitted or allowed as a
result of consolidated, combined, unitary, group, Organschaft or similar relief
of the Parties (or their Subsidiaries) by applying ordering rules similar to
those described in Schedule 11.6; provided, further, if the sum
of the Taxes that would be shown as due and payable as a result of the Final
Determination if such Final Determination applied on a separate basis for the
business operations conducted through the use of each of the Electronics Assets
and Electronics Liabilities, the Healthcare Assets and Healthcare Liabilities,
and the Tyco Retained Assets and Tyco Retained Liabilities, respectively, is
different than the Taxes actually due and payable as a result of the Final
Determination, the Tyco Allocable Audit Portion shall be equal to the product
of (c) such Taxes that are actually due and payable pursuant to the Final
Determination, and (d) a fraction (i) the numerator of which is the sum of the
Taxes that would be due and payable pursuant to the Final Determination if
applied on a separate basis for the business operations conducted through the
use of Tyco Retained Assets and Tyco Retained Liabilities, and (ii) the
denominator of which is the sum of the Taxes that would be due and payable
pursuant to the Final Determination if such Final Determination applied on a
separate basis for the business operations conducted through the use of
Electronics Assets and Electronics 

 17
 

Liabilities, the Healthcare Assets and Healthcare
Liabilities, and the Tyco Retained Assets and Tyco Retained Liabilities,
respectively.

(126)       “Tyco Allocable Portion”
means, with respect to a Tax Return filed after the Distribution Date for
either a Pre-Distribution Tax Period or Straddle Tax Period, the amount
of Taxes due and payable for such Pre-Distribution Tax Period or Straddle
Tax Period attributable to any Tyco-Electronics Shared Entities or Tyco-Healthcare
Shared Entities, as the case may be.  The
determination of the amount of Taxes due and payable that are attributable to
the Tyco-Electronics Shared Entities or the Tyco-Healthcare Shared
Entities for a given Tax Return shall be calculated on a “with and without
basis,” by calculating the amount of the excess (if any) of (a) the net amount
of Taxes shown as due and payable on such Tax Return as filed, over (b) the net
amount of Taxes that would be shown as due and payable on such Tax Return if
such Tax Return was recalculated excluding the Tyco-Electronics Shared
Entities or the Tyco-Healthcare Shared Entities, as applicable, provided,
however, that (a) and (b) shall be determined by applying, in a manner
that reduces the overall Taxes due and payable, any available losses,
deductions, allowances or credits of any of the Parties (or their Subsidiaries)
that are permitted or allowed as a result of consolidated, combined, unitary,
group, Organschaft or similar relief of the Parties (or their Subsidiaries) by
applying ordering rules similar to those described in Schedule 11.6 ; provided,
further, if the sum of the Taxes that would be shown as due and payable
on such Tax Return if such Tax Return were prepared on a separate basis for the
business operations conducted through the use of each of the Electronics Assets
and Electronics Liabilities, the Healthcare Assets and Healthcare Liabilities,
and the Tyco Retained Assets and Tyco Retained Liabilities, respectively, is
different than the Taxes actually due and payable on such Tax Return, the Tyco
Allocable Portion shall be equal to the product of (c) such Taxes that are
actually due and payable, and (d) a fraction (i) the numerator of which is the
Taxes that would be shown as due and payable on such Tax Return if such Tax
Return were prepared on a separate basis for the business operations conducted
through the use of Tyco Retained Assets and Tyco Retained Liabilities, and (ii)
the denominator of which is the sum of the Taxes that would be shown as due and
payable on such Tax Return if such Tax Return were prepared on a separate basis
for the business operations conducted through the use of each of the
Electronics Assets and Electronics Liabilities, the Healthcare Assets and
Healthcare Liabilities, and the Tyco Retained Assets and Tyco Retained
Liabilities, respectively.

(127)       “Tyco Common Stock”
has the meaning set forth in the Separation and Distribution Agreement.

(128)       “Tyco-Electronics
Shared Entities” mean on or before the Distribution Date, any entities that
conduct business operations through the use of the Tyco Retained Assets and/or
Tyco Retained Liabilities that (i) are merged with and into or otherwise
acquired by the Tyco Retained Business from an Electronics Tax Group or (ii)
filed on a consolidated, combined, unitary, group, Organschaft or similar basis
with the entities that conduct business operations through the use of the
Electronics Assets and Electronics Liabilities.

(129)       “Tyco Group” has the
meaning set forth in the Separation and Distribution Agreement.

 18
 

(130)       “Tyco-Healthcare
Shared Entities” mean on or before the Distribution Date, any entities that
conduct business operations through the use of the Tyco Retained Assets and/or
Tyco Retained Liabilities that (i) are merged with and into or otherwise
acquired by the Tyco Retained Business from a Healthcare Tax Group or (ii)
filed on a consolidated, combined, unitary, group, Organschaft or similar basis
with the entities that conduct business operations through the use of the
Healthcare Assets and Healthcare Liabilities.

(131)       “Tyco Retained Assets”
and “Tyco Retained Liabilities” shall have the meaning assigned to each
of them set forth in the Separation and Distribution Agreement.

(132)       “Tyco Retained Business”
has the meaning set forth in the Separation and Distribution Agreement.

(133)       “Tyco Retained Liabilities”
has the meaning set forth in the Separation and Distribution Agreement.

(134)       “Tyco Sharing Percentage”
means twenty-seven percent (27%).

(135)       “Unqualified Tax Opinion”
means an unqualified “will” opinion of Qualified Tax Counsel, which opinion is
reasonably acceptable to each of the Parties and upon which each of the Parties
may rely to confirm that a transaction (or transactions) will not result in
Distribution Taxes, including confirmation in accordance with Circular 230 or
otherwise that may be provided for purposes of avoiding any applicable
penalties or additions to Tax.

(136)       “U.S.” means the
United States.

(137)       “U.S. Advance Payment
Entities” include the U.S. federal consolidated Income Tax groups that
included the following companies as group members during periods prior to the
Distribution and that received or may receive a Refund arising from an advance
payment of Tax made on or prior to the Distribution Date but only to the extent
of the Refund of U.S. federal Income Taxes (and, therefore, any U.S. state and
local Income Tax Refunds shall be excluded):  Tyco International (PA) Inc., Tyco (US)
Holdings, Inc., TyCom (US)
Holdings, Inc., TyCom Simplex
Holdings Inc., Kendall Holding
Corp. and TSSL Holding
Corp.  The Parties agree that the U.S.
Advance Payment Entities shall not make an election to waive a carryback under
Code Section 172(b)(3) for the year in which any tax deduction arises with
respect to the advance payment of Tax described above.

(138)       “U.S. Audit Management
Party” means the Audit Management Party with respect to a Pre-Distribution
U.S. Income Tax Audit.

Section 1.2             References; Interpretation.

(a)           Terms not otherwise defined
herein shall have the meaning ascribed to them in the Separation and
Distribution Agreement.  References in
this Agreement to any gender include references to all genders, and
references to the singular include references to the plural and vice
versa.  Unless the context otherwise
requires, the words “include”, “includes”, and “including” when used in this
Agreement shall be deemed to be followed by the phrase “without limitation”.  Unless the context otherwise requires,
references in this Agreement to Articles, 

 19
 

Sections, Exhibits and Schedules shall be deemed
references to Articles and Sections of, and Exhibits and Schedules to, this
Agreement.  Unless the context otherwise
requires, the words “hereof”, “hereby”, and “herein” and words of similar
meaning when used in this Agreement refer to this Agreement in its entirety and
not to any particular Article, Section or provision of this Agreement.

(b)           The Parties agree that
this Agreement is intended solely to determine the cash tax obligations of the
Parties and does not address the manner or method of tax accounting for any
item.

Section 1.3             Effective Time.

(a)           The Parties acknowledge
that the Plan of Separation contemplates a series of interrelated and
intermediate internal transactions undertaken preparatory to and in
contemplation of the Distributions that must be completed prior to the
Effective Time in order to align and properly capitalize the Healthcare
Business, the Electronics Business, and the Tyco Retained Business, including
the assignment of TUSHI and all of its Tax liabilities to the Electronics
Business.

(b)           Notwithstanding that
these interrelated and intermediate internal transactions must be given effect
prior to the Distributions, the agreements contained herein, including, but not
limited to, the manner in which Taxes are shared amongst the Parties, shall be
effective no earlier than and only upon the Effective Time.

ARTICLE II

PREPARATION AND FILING OF TAX RETURNS

Section 2.1             Responsibility of
Parties to Prepare and File Pre-Distribution Income Tax Returns.

(a)           General.  To the extent not previously filed and
subject to the rights and obligations of each of the Parties set forth herein,
Schedule 2.1(a) sets forth the Parties (each, a “Preparing Party”) that are
responsible for preparing or causing to be prepared all Pre-Distribution
Income Tax Returns.  Unless otherwise
provided in this Agreement, the Preparing Party is responsible for the costs
and expenses associated with such preparation. 
The Party responsible, or whose Affiliate is responsible, for filing a
Pre-Distribution Income Tax Return under applicable Law shall file or
cause to be filed such Pre-Distribution Income Tax Return with the
applicable Taxing Authority.  Pre-Distribution
Income Tax Returns shall be prepared and filed in a manner (i) consistent with
the past practice of the Parties and their Affiliates unless otherwise modified
by a Final Determination or required by applicable Law; (ii) consistent
with (and the Parties and their Affiliates shall not take any position
inconsistent with) the IRS Ruling, the Tax Representation Letters, and the Tax
Opinions; and (iii) that minimizes the overall amount of Taxes due and payable
on Pre-Distribution Income Tax Returns of all of the Parties by
cooperating in making such elections or applications for group or other reliefs
or allowances available in the taxing jurisdiction in which the Income Tax
Returns are filed.  No Parties shall take
any actions inconsistent with the assumptions (including items of income, gain,
deduction, 

 20
 

loss and credit) made in determining all estimated or
advance payments of Income Tax on or prior to the Distribution Date, including
the applicable filing assumptions listed in Schedule 2.1(a).  Payments between a Party or any of its
Affiliates and another Party or any of its Affiliates for reasonable
preparation costs and expenses shall be treated as amounts deductible by the
paying Party and its Affiliates pursuant to Section 162 of the Code, and none
of the Parties or any of their Affiliates shall take any position inconsistent
with such treatment, except to the extent a Final Determination with respect to
the paying entity causes such payment to not be so treated (in which case the
payment shall be treated in accordance with such Final Determination).

(b)           Tax Package.  To the extent not previously provided, each
Party other than the Preparing Party shall (at its own cost and expense), to
the extent that a Pre-Distribution Income Tax Return includes items of
that Party or its Affiliates, prepare and provide or cause to be prepared and
provided to the Preparing Party (and make available or cause to be made available
to the other Party) a Tax Package relating to that Pre-Distribution
Income Tax Return.  Such Tax Package
shall be provided in a timely manner consistent with the past practices of the
Parties and their Affiliates.  In the
event a Party does not fulfill its obligations pursuant to this Section 2.1(b),
the Preparing Party shall be entitled, at the sole cost and expense of the
first Party, to prepare or cause to be prepared the information required to be
included in the Tax Package for purposes of preparing any such Pre-Distribution
Income Tax Return.

(c)           Procedures Relating
to the Preparation and Filing of Pre-Distribution Income Tax Returns.

(i)            In the case of Pre-Distribution
Income Tax Returns, to the extent not previously filed, no later than thirty
(30) days prior to the Due Date of each such Tax Return (reduced to ten (10)
days for state or local Pre-Distribution Income Tax Returns), the
Preparing Party shall make available or cause to be made available drafts of
such Tax Return (together with all related work papers) to each of the other
Parties.  The other Parties shall have
access to any and all data and information necessary for the preparation of all
such Pre-Distribution Income Tax Returns and the Parties shall cooperate
fully in the preparation and review of such Tax Returns.  Subject to the preceding sentence, no later
than fifteen (15) days after receipt of such Pre-Distribution Income Tax
Returns (reduced to five (5) days for state or local Pre-Distribution
Income Tax Returns), each Party shall have a right to object to such Pre-Distribution
Income Tax Return (or items with respect thereto) by written notice to the
other Parties; such written notice shall contain such disputed item (or items)
and the basis for its objection.

(ii)           With respect to a Pre-Distribution
Income Tax Return submitted by the Preparing Party to the other Parties
pursuant to Section 2.1(c)(i), if the other Parties do not object by proper
written notice within the time period described, such Pre-Distribution
Income Tax Return shall be deemed to have been accepted and agreed upon, and to
be final and conclusive, for purposes of this Section 2.1(c)(ii).  If a Party does object by proper written
notice within such applicable time period, the Parties shall act in good faith
to resolve any such dispute as promptly as practicable; provided, however,
that, notwithstanding anything to the contrary contained herein, if the Parties
have not reached a final resolution with respect to all disputed items for
which proper written notice was given within ten (10) days (reduced to two (2)
days for state or local Pre-Distribution Income Tax Returns) prior to the
Due Date for such Pre-

 21
 

Distribution Income Tax Return, such Tax Return shall
be filed as prepared pursuant to this Section 2.1 (revised to reflect all
initially disputed items that the Parties have agreed upon prior to such date).

(iii)          In the event that a Pre-Distribution
Income Tax Return is filed that includes any disputed item for which proper
notice was given pursuant to this Section 2.1(c) that was not finally resolved
and agreed upon, such disputed item (or items) shall be resolved in accordance
with Article XIII.  In the event that the
resolution of such disputed item (or items) in accordance with Article XIII
with respect to a Pre-Distribution Income Tax Return is inconsistent with
such Pre-Distribution Income Tax Return as filed, the Preparing Party
(with cooperation from the other Parties) shall, as promptly as practicable,
amend such Tax Return to properly reflect the final resolution of the disputed
item (or items).  In the event that the
amount of Taxes shown to be due and owing on a Pre-Distribution Income
Tax Return is adjusted as a result of a resolution pursuant to Article XIII,
proper adjustment shall be made to the amounts previously paid or required to
be paid in accordance with Article III in a manner that reflects such
resolution.

(iv)          Notwithstanding anything
to the contrary in this Section 2.1, in the case of any Income Tax Return for
estimated Taxes (“Estimated Tax Return”) for a Pre-Distribution Tax
Period, to the extent not previously filed, as soon as practicable prior to the
Due Date of each such Estimated Tax Return, the Preparing Party shall make
available or cause to be made available drafts of such Estimated Tax Return
(together with all related work papers) to each of the other Parties.  The other Parties shall have access to any
and all data and information necessary for the preparation of such Estimated
Tax Returns and the Parties shall cooperate fully in the preparation and review
of such Estimated Tax Returns.  Subject
to the preceding sentence, a Party shall have a right to object by written
notice to the other Parties (and such written notice shall contain such
disputed item (or items) and the basis for the objection) and the principles of
Section 2.1(c)(ii) and Section 2.1(c)(iii) shall apply to such Estimated Tax
Return.

Section 2.2             Responsibility of
Parties to Prepare and File Straddle Income Tax Returns.

(a)           General.  Subject to the rights and obligations of each
of the Parties set forth herein, Schedule 2.2(a) sets forth the Preparing Party
that is responsible for preparing or causing to be prepared all Straddle Income
Tax Returns.  Unless otherwise provided
in this Agreement, the Preparing Party is responsible for the costs and
expenses associated with such preparation. 
The Party responsible, or whose Affiliate is responsible, for filing a
Straddle Income Tax Return under applicable Law shall file or cause to be filed
such Straddle Income Tax Return with the applicable Taxing Authority.  All Straddle Income Tax Returns shall be
prepared and filed in a manner (i) consistent with the past practice of the
Parties and their Affiliates unless otherwise modified by a Final Determination
or required by applicable Law; (ii) consistent with (and the Parties and their
Affiliates shall not take any position inconsistent with) the IRS Ruling, the
Tax Representation Letters, and the Tax Opinions; and (iii) that minimizes the
overall amount of Taxes due and payable on Straddle Income Tax Returns of all
of the Parties by cooperating in making such elections or applications for
group or other reliefs or allowances available in the taxing jurisdiction in
which the Income Tax Returns are filed. 
No Parties shall take any actions inconsistent with the assumptions
(including items of income, gain, deduction, loss and credit) made in
determining all estimated or advance payments of Income Tax on or 

 22
 

prior to the Distribution Date, including the
applicable filing assumptions listed in Schedule 2.2(a).  Payments between a Party or any of its
Affiliates and another Party or any of its Affiliates for reasonable
preparation costs and expenses shall be treated as amounts deductible by the
paying Party and its Affiliates pursuant to Section 162 of the Code, and none
of the Parties or any of their Affiliates shall take any position inconsistent
with such treatment, except to the extent a Final Determination with respect to
the paying entity causes such payment to not be so treated (in which case the
payment shall be treated in accordance with such Final Determination).

(b)           Tax Package.  Each Party other than the Preparing Party
shall (at its own cost and expense), to the extent that a Straddle Income Tax
Return includes items of that Party or its Affiliates, prepare and provide or
cause to be prepared and provided to the Preparing Party (and make available or
cause to be made available to the other Party) a Tax Package relating to that
Straddle Income Tax Return.  Such Tax
Package shall be provided in a timely manner consistent with the past practices
of the Parties and their Affiliates.  In
the event a Party does not fulfill its obligations pursuant to this Section
2.2(b), the Preparing Party shall be entitled, at the sole cost and expense of
the first Party, to prepare or cause to be prepared the information required to
be included in the Tax Package for purposes of preparing any such Straddle
Income Tax Return.

(c)           Procedures Relating
to the Preparation and Filing of Straddle Income Tax Returns.

(i)            In the case of
Straddle Income Tax Returns, no later than thirty (30) days prior to the Due
Date of each such Tax Return (reduced to ten (10) days for state or local
Straddle Income Tax Returns), the Preparing Party shall make available or cause
to be made available drafts of such Tax Return (together with all related work
papers) to each of the other Parties. 
The other Parties shall have access to any and all data and information
necessary for the preparation of all such Straddle Income Tax Returns and the
Parties shall cooperate fully in the preparation and review of such Tax
Returns.  Subject to the preceding
sentence, no later than fifteen (15) days after receipt of such Straddle Income
Tax Returns (reduced to five (5) days for state or local Straddle Income Tax
Returns), each Party shall have a right to object to such Straddle Income Tax
Return (or items with respect thereto) by written notice to the other Parties;
such written notice shall contain such disputed item (or items) and the basis
for its objection.

(ii)           With respect to a
Straddle Income Tax Return submitted by the Preparing Party to the other
Parties pursuant to Section 2.2(c)(i), if the other Parties do not object by
proper written notice within the time period described, such Straddle Income
Tax Return shall be deemed to have been accepted and agreed upon, and to be
final and conclusive, for purposes of this Section 2.2(c)(ii).  If a Party does object by proper written
notice within such applicable time period, the Parties shall act in good faith
to resolve any such dispute as promptly as practicable; provided, however,
that, notwithstanding anything to the contrary contained herein, if the Parties
have not reached a final resolution with respect to all disputed items for
which proper written notice was given within ten (10) days (reduced to two (2)
days for state or local Straddle Income Tax Returns) prior to the Due Date for
such Straddle Income Tax Return, such Tax Return shall be filed as prepared
pursuant to this Section 2.1 (revised to reflect all initially disputed items
that the Parties have agreed upon prior to such date).

 23
 

(iii)          In the event that a
Straddle Income Tax Return is filed that includes any disputed item for which
proper notice was given pursuant to this Section 2.2(c) that was not finally
resolved and agreed upon, such disputed item (or items) shall be resolved in
accordance with Article XIII.  In the
event that the resolution of such disputed item (or items) in accordance with
Article XIII with respect to a Straddle Income Tax Return is inconsistent with
such Straddle Income Tax Return as filed, the Preparing Party (with cooperation
from the other Parties) shall, as promptly as practicable, amend such Tax
Return to properly reflect the final resolution of the disputed item (or
items).  In the event that the amount of
Taxes shown to be due and owing on a Straddle Income Tax Return is adjusted as
a result of a resolution pursuant to Article XIII, proper adjustment shall be
made to the amounts previously paid or required to be paid by the Parties in
accordance with Article III in a manner that reflects such resolution.

(iv)          Notwithstanding anything
to the contrary in this Section 2.2, in the case of any Estimated Tax Returns
for a Straddle Tax Period, to the extent not previously filed, as soon as
practicable prior to the Due Date of each such Estimated Tax Return, the
Preparing Party shall make available or cause to be made available drafts of
such Estimated Tax Return (together with all related work papers) to each of
the other Parties.  The other Parties
shall have access to any and all data and information necessary for the
preparation of such Estimated Tax Returns and the Parties shall cooperate fully
in the preparation and review of such Estimated Tax Returns.  Subject to the preceding sentence, a Party
shall have a right to object by written notice to the other Parties (and such
written notice shall contain such disputed item (or items) and the basis for
the objection) and the principles of Section 2.2(c)(ii) and Section 2.2(c)(iii)
shall apply to such Estimated Tax Return.

Section 2.3             Responsibility of
Parties to Prepare and File Post-Distribution Income Tax Returns and Non-Income
Tax Returns.  The Party or its
Affiliate responsible under applicable Law for filing a Post-Distribution
Income Tax Return or a Non-Income Tax Return shall prepare and file or
cause to be prepared and filed that Tax Return (at that Party’s own cost and
expense).

Section 2.4             Time of Filing Tax
Returns; Manner of Tax Return Preparation. 
Each Tax Return shall be filed on or prior to the Due Date for such Tax
Return by the Party responsible for filing such Tax Return hereunder.  Unless otherwise required by a Taxing
Authority pursuant to a Final Determination, the Parties shall prepare and file
or cause to be prepared and filed all Tax Returns and take all other actions in
a manner consistent with (and shall not take any position inconsistent with)
any assumptions, representations, warranties, covenants, and conclusions
provided by the Parties (or any of their Subsidiaries) in connection with the
Plan of Separation.

ARTICLE III

RESPONSIBILITY FOR PAYMENT OF TAXES

Section 3.1             Responsibility of
Tyco for Taxes.  Except as otherwise
provided in this Agreement, Tyco shall be liable for and shall pay or cause to
be paid the following Taxes:

(a)           to the applicable
Taxing Authority, any Taxes due and payable on all Pre-Distribution
Income Tax Returns that Tyco is required to file or cause to be filed with such
Taxing Authority pursuant to Section 2.1;

 24
 

(b)           to the applicable
Taxing Authority, any Taxes due and payable on all Straddle Income Tax Returns
that Tyco is required to file or cause to be filed with such Taxing Authority
pursuant to Section 2.2;

(c)           to the applicable
Taxing Authority, any Taxes due and payable on all Post-Distribution
Income Tax Returns and Non-Income Tax Returns that Tyco is required to
file or cause to be filed with such Taxing Authority pursuant to Section 2.3;

(d)           to Electronics, the
Tyco Allocable Portion computed with respect to the Tyco-Electronics
Shared Entities; and

(e)           to Healthcare, the Tyco
Allocable Portion computed with respect to the Tyco-Healthcare Shared
Entities.

Section 3.2             Responsibility of
Electronics for Taxes.  Except as
otherwise provided in this Agreement, Electronics shall be liable for and shall
pay or cause to be paid the following Taxes:

(a)           to the applicable
Taxing Authority, any Taxes due and payable on all Pre-Distribution
Income Tax Returns that Electronics is required to file or cause to be filed
with such Taxing Authority pursuant to Section 2.1;

(b)           to the applicable
Taxing Authority, any Taxes due and payable on all Straddle Income Tax Returns
that Electronics is required to file or cause to be filed with such Taxing
Authority pursuant to Section 2.2;

(c)           to the applicable
Taxing Authority, any Taxes due and payable on all Post-Distribution
Income Tax Returns and Non-Income Tax Returns that Electronics is
required to file or cause to be filed with such Taxing Authority pursuant to
Section 2.3;

(d)           to Healthcare, the
Electronics Allocable Portion computed with respect to the Electronics-Healthcare
Shared Entities; and

(e)           to Tyco, the
Electronics Allocable Portion computed with respect to the Electronics-Tyco
Shared Entities.

Section 3.3             Responsibility of
Healthcare for Taxes.  Except as
otherwise provided in this agreement, Healthcare shall be liable for and shall
pay or cause to be paid the following Taxes:

(a)           to the applicable
Taxing Authority, any Taxes due and payable on all Pre-Distribution
Income Tax Returns that Healthcare is required to file or cause to be filed
with such Taxing Authority pursuant to Section 2.1;

(b)           to the applicable
Taxing Authority, any Taxes due and payable on all Straddle Income Tax Returns
that Healthcare is required to file or cause to be filed with such Taxing
Authority pursuant to Section 2.2;

 25
 

(c)           to the applicable
Taxing Authority, any Taxes due and payable on all Post-Distribution
Income Tax Returns and Non-Income Tax Returns that Healthcare is required
to file or cause to be filed with such Taxing Authority pursuant to Section
2.3;

(d)           to Electronics, the
Healthcare Allocable Portion computed with respect to the Healthcare-Electronics
Shared Entities; and

(e)           to Tyco, the Healthcare
Allocable Portion computed with respect to the Healthcare-Tyco Shared
Entities.

Section
3.4             Timing of Payments
of Taxes.  All Taxes required to be
paid or caused to be paid by a Party to a Taxing Authority pursuant to this
Article III shall be paid or caused to be paid by such Party on or prior to the
Due Date of such Taxes.  All amounts
required to be paid by one Party to another Party (including obligations
arising under Article VII) pursuant to this Article III shall be paid or caused
to be paid by such first Party to such other Party in accordance with Article
VIII.

ARTICLE IV

REFUNDS, CARRYBACKS AND AMENDED TAX RETURNS

Section
4.1             Refunds.

(a)           Each Party shall be
entitled to Refunds that relate to Taxes for which it (or its Subsidiaries) is
liable to an applicable Taxing Authority except as follows:  (i) any Refunds of Taxes, other than Refunds
of overpayments of Taxes reflected on an originally filed Tax Return that does
not include any of the U.S. Advance Payment Entities, that are related to or
paid in respect of an Income Tax Return an Audit of which would constitute a
Pre-Distribution U.S. Income Tax Audit or a Pre-Distribution
Transfer Pricing Tax Audit, shall be shared by the Parties in accordance with
their respective Sharing Percentages, including, for the avoidance of doubt,
(x) any Refunds of the deposit of Taxes made prior to the Distribution Date
with respect to Healthcare’s Subsidiary in Japan and (y) any Refunds received
by the U.S. Advance Payment Entities; (ii) any Refunds of U.S. state and local
Income Taxes that are attributable to overpayments of such Taxes made by Tyco
International Management Company (or its predecessors) on its behalf or on
behalf of Tyco International (US) Inc. on or before the Distribution Date,
shall be paid to Tyco International Management Company; and (iii) any Refunds
of Taxes paid to the Taxing Authority in Australia in respect to the issue
pending before such Taxing Authority with regard to the Parties’ (or their
Subsidiaries’) Tax treatment of certain dealer costs (the “AU Dealer Cost Issue”)
shall be refunded to the Parties in proportion to the amount of such Taxes that
were actually paid by each of the Parties (or its Subsidiaries) to such Taxing
Authority.

(b)           Notwithstanding Section
4.1(a), to the extent a claim for a Refund is reasonably likely to result in a
Correlative Detriment to one or more of the Parties, any such Refund that is
received by one or more of the other Parties shall, and only to the extent
thereof, be paid proportionately to the Parties that are reasonably likely to
realize such Correlative Detriment.  A “Correlative
Detriment” is an increase in a current year Tax payment obligation by 

 26
 

a Party (or its Subsidiaries) or a reduction in a
current year Tax benefit of a Party (or its Subsidiaries) that occurs as a
direct result of the Tax position that is the basis for a Refund that is not
otherwise shared by the Parties under Section 4.1(a).

(c)           Any Refund or portion
thereof to which a Party is entitled pursuant to this Section 4.1 that is
received or deemed to have been received as described herein by another Party
(or its Subsidiaries) shall be paid by such other Party to such first Party in
immediately available funds in accordance with Article VIII.  To the extent a Party (or its Subsidiaries)
applies or causes to be applied an overpayment of Taxes as a credit toward or a
reduction in Taxes otherwise payable (or a Taxing Authority requires such
application in lieu of a Refund) and such Refund, if received, would have been
payable by such Party to another Party (or Parties) pursuant to this Section
4.1, such Party shall be deemed to have actually received a Refund to the
extent thereof on the date on which the overpayment is applied to reduce Taxes
otherwise payable.

Section
4.2             Carrybacks.  Each of the Parties shall be permitted (but
not required) to carryback (or to cause its Affiliate to carryback) a Tax
Attribute realized in a Post-Distribution Tax Period or a Straddle Tax
Period to a Pre-Distribution Tax Period or a Straddle Tax Period only if
such carryback cannot result in one or more other Parties (or their Affiliates)
being liable for additional Taxes.  If a
carryback could result in one or more Parties (or their Affiliates) being
liable for additional Taxes, such carryback shall be permitted only if all of
such Parties consent to such carryback. 
Notwithstanding anything to the contrary in this Agreement, any Party
that has claimed (or caused one or more of its Affiliates to claim) a Tax
Attribute carryback, shall be liable for any Taxes that become due and payable
as a result of the subsequent adjustment, if any, to the carryback claim; provided,
however, if the carryback results in a Refund that is shared or
allocated pursuant to Section 4.1(a) or (b), any Taxes arising from and
attributable to an adjustment to the claim for such carryback shall be shared
or allocated by the applicable Parties, as the case may be, in the same
proportion that the Refund was shared by or allocated to each applicable Party.

Section
4.3             Amended Tax
Returns.

(a)           Notwithstanding Sections
2.1 and 2.2, a Party (or its Subsidiary) that is entitled to file an amended
Tax Return for a Pre-Distribution Tax Period or a Straddle Tax Period for
members of its Tax Group shall be permitted to prepare and file an amended Tax
Return at its own cost and expense; provided, however, that (i)
such amended Tax Return shall be prepared in a manner (x) consistent with the
past practice of the Parties (and their Affiliates) unless otherwise modified
by a Final Determination or required by applicable Law; and (y) consistent with
(and the Parties and their Affiliates shall not take any position inconsistent
with) the IRS Ruling, the Tax Representation Letters, and the Tax Opinions; and
(ii) if such amended Tax Return could result in one or more other Parties
becoming responsible for a payment of Taxes pursuant to Article III or a
payment to a Party pursuant to Article IX, such amended Tax Return shall be
permitted only if the consent of such other Parties is obtained.  The consent of such other Parties shall not
be withheld unreasonably and shall be deemed to be obtained in the event that a
Party (or its Subsidiary) is required to file an amended Tax Return as a result
of an Audit adjustment that arose in accordance with Article IX.

 27
 

(b)           A Party (or its Subsidiary)
that is entitled to file an amended Tax Return for a Post-Distribution
Tax Period, shall be permitted to do so without the consent of any Party.

(c)           A Party that is
permitted (or whose Subsidiary is permitted) to file an amended Tax Return,
shall not be relieved of any liability for payments pursuant to this Agreement
notwithstanding that another Party consented thereto.

Section
4.4             Agreement from
Party Administering and Controlling Audit. 
Notwithstanding anything to the contrary in this Article IV, any
carryback or amended Tax Return otherwise permitted pursuant to Sections 4.2
and 4.3, respectively, shall only be made with the consent of the Party that
would be responsible under Article IX for administering and controlling any
Audit that arises with respect to the Tax Return to which the carryback or the
amended Tax Return relates, if different than the Party (or its Subsidiary)
that is exercising its rights under Section 4.2 or Section 4.3.

ARTICLE V

DISTRIBUTION TAXES

Section
5.1             Liability for Distribution
Taxes.  In the event that
Distribution Taxes become due and payable to a Taxing Authority pursuant to a
Final Determination, then, notwithstanding anything to the contrary in this
Agreement:

(a)           No Fault.  If such Distribution Taxes are not attributable
to the Fault of any Party or any of its Affiliates, the responsibility for such
Distribution Taxes shall, if (i) certain and known to the Parties at the time
of the Distributions, reside with the Party or Parties responsible for the
payment of such Taxes under Article III, but only to the extent certain and
known; and (ii) not described in (i) above, be shared by the Parties in
accordance with their Sharing Percentages.

(b)           Fault.  If such Distribution Taxes are attributable
to the Fault of one or more Parties or any of their Affiliates, the
responsibility for such Distribution Taxes shall reside with the Party or
Parties at Fault.  If more than one Party
is at Fault, the responsibility for the Distribution Taxes shall be allocated
equally among all of the Parties at Fault.

Section
5.2             Payment for Use of
Tax Attributes by Parties at Fault. 
Notwithstanding Section 5.1, if a Party is at Fault within the meaning
of Section 5.3, and such Fault would have resulted in Distribution Taxes
becoming due and payable but for the use of the Tax Attributes of one or more
other Parties (or their Subsidiaries), the Party at Fault shall pay to each
such other Party the amount of Distribution Taxes that did not become due and
payable as a result of the use of that other Party’s (or its Subsidiaries’) Tax
Attributes.  Such payment shall be made
by the Party using the Tax Attribute to the other Party in accordance with
Article VIII.  For purposes of computing
the amount of the payment under this Section 5.2 for the use of the other Party’s
Tax Attributes, the Parties shall assume that the other Party (and each of its
Subsidiaries) is subject to an effective tax rate of thirty-eight percent
(38%).  If more than one Party is at
Fault, the responsibility for the payment shall be allocated equally among all
of the Parties at Fault.

 28
 

Section
5.3             Definition of
Fault.  For purposes of this
Agreement, Distribution Taxes shall be deemed to result from the fault (“Fault”)
of a Party if such Distribution Taxes are directly attributable to, or result
from:

(a)           any act, or failure or
omission to act, by such Party or any of such Party’s Affiliates following the
Distributions that results in one or more Parties (or any of their Affiliates)
being responsible for such Distribution Taxes pursuant to a Final
Determination, regardless of whether such act or failure to act (i) is covered
by a Post-Distribution Ruling, Unqualified Tax Opinion, or waiver in
accordance with Section 5.4, or (ii) occurs during or after the Restricted
Period, or

(b)           the direct or indirect
acquisition of all or a portion of the stock of such Party or of any of the
Section 355 Entities (or any transaction or series of related transactions that
is deemed to be such an acquisition for purposes of Section 355(e) of the Code
and the Treasury Regulations promulgated thereunder) by any means whatsoever by
any person including pursuant to an issuance of stock by such Party or any of
its Affiliates.

Section
5.4             Limits on Proposed
Acquisition Transactions and Other Transactions During Restricted Period.  During the Restricted Period, no Party shall:

(a)           enter into any Proposed
Acquisition Transaction, approve any Proposed Acquisition Transaction for any
purpose, or allow any Proposed Acquisition Transaction to occur with respect to
any of the Section 355 Entities;

(b)           merge or consolidate
with any other Person or liquidate or partially liquidate; or approve or allow
any merger, consolidation, liquidation, or partial liquidation of any of the
Section 355 Entities or the ATOB Entities;

(c)           approve or allow the
discontinuance, cessation, or sale or other transfer (to an Affiliate or
otherwise) of, or a material change in, any Active Business;

(d)           approve or allow the
sale, 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;

(e)           sell or otherwise
dispose of more than 35 percent (35%) of its consolidated gross or net assets,
or approve or allow the sale 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 Section 355 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);

(f)            amend its certificate
of incorporation (or other organizational documents), or take any other action
or approve or allow the taking of any action, whether through a stockholder
vote or otherwise, affecting the voting rights of the stock of such Party, any
of the Section 355 Entities, or any of the Transferee Entities;

 29
 

(g)           issue shares of a new
class of nonvoting stock or approve or allow any of the Section 355 Entities or
the Transferee Entities to issue shares of a new class of nonvoting stock;

(h)           purchase, directly or
through any Affiliate, 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;

(i)            approve or allow
payment of an extraordinary distribution by any of the Transferee Entities to
any of the Transferor Entities, or a redemption of shares of any of the
Transferee Entities held by any of the Transferor Entities (in the case of any
of the Transferee Entities or the Transferor Entities, including any successor
thereto);

(j)            approve or allow an
extraordinary contribution to any of the Section 355 Entities (or any successor
thereto) by its shareholder or shareholders (or any successor(s) thereto);

(k)           take any action or fail
to take any action, or permit any of its Affiliates to take any action or fail
to take any action, that is inconsistent with the representations and covenants
made in the IRS Ruling or in the Tax Representation Letters, or that is
inconsistent with any rulings or opinions in the IRS Ruling or any Tax Opinion;
or

(l)            take any action or
permit any of its Affiliates to take any action that, in the aggregate (taking
into account other transactions described in this Section 5.4) would be
reasonably likely to jeopardize Tax-Free Status;

provided,
however, that a Party (the “Requesting Party”) shall be permitted to
take such action or one or more actions set forth in the foregoing clauses (a)
through (l) if, prior to taking any such actions:  (1) such Requesting Party or Tyco shall have
received a favorable private letter ruling from the IRS, or a ruling from
another Taxing Authority (a “Post-Distribution Ruling”), in form and substance
reasonably satisfactory to the other Parties that confirms that such action or
actions will not result in Distribution Taxes, taking into account such actions
and any other relevant transactions in the aggregate; (2) such Requesting Party
shall have received an Unqualified Tax Opinion in form and substance reasonably
satisfactory to the other Parties that confirms that such action or actions
will not result in Distribution Taxes, taking into account such actions and any
other relevant transactions in the aggregate; or (3) such Requesting Party
shall have received a written statement from each of the other Parties that
provides that such other Party waives the requirement to obtain a Post-Distribution
Ruling or Unqualified Tax Opinion described in this paragraph.  The evaluation of a Post-Distribution
Ruling or Unqualified Tax Opinion may consider, among other factors, the
appropriateness of any underlying assumptions, representations, and covenants
made in connection with such Post-Distribution Ruling or Unqualified Tax
Opinion.  The Requesting Party shall bear
all costs and expenses of securing any such Post-Distribution Ruling or
Unqualified Tax Opinion and shall reimburse the other Parties for all
reasonable out-of-pocket costs and expenses that such Parties may
incur in good faith in seeking to obtain or evaluate any such Post-Distribution
Ruling or Unqualified Tax Opinion.

 30

Section 5.5             Advance Disclosure
of Non-Public Transactions.  In the
event of a transaction contemplated by a Party that is described in Section
5.4(a) or Section 5.4(b) and that has not been disclosed to the general public,
such Party shall make an advance disclosure of such transaction to the Chief
Financial Officers of the other Parties as soon as practicable and prior to a
favorable recommendation of such transaction to the Board of Directors of such
Party.  The other Parties shall take all
reasonable measures to protect against the public disclosure of such
transaction.  Nothing in this Section 5.5
shall be construed to limit a Party’s rights or obligations set forth in
Section 5.4.

Section 5.6             Qualified Tax
Counsel Advance Conflict Waiver. 
Unless prohibited by Law or the ethical rules applicable to attorneys,
each of the Parties agrees to waive or to cause its Affiliates to waive in
advance any conflicts that must be waived (determined by Qualified Tax Counsel
in its sole discretion) to permit Qualified Tax Counsel to issue any
Unqualified Tax Opinions to be obtained by a Party pursuant to this Article V.

Section 5.7             IRS Ruling, Tax
Representation Letters, and Tax Opinions; Consistency.  Each Party represents that the information
and representations furnished by it in or with respect to the IRS Ruling, the
Tax Representation Letters, or the Tax Opinions are accurate and complete as of
the Effective Time.  Each Party covenants
(1) to use its best efforts, and to cause its Affiliates to use their best
efforts, to verify that such information and representations are accurate and
complete as of the Effective Time; and (2) if, after the Effective Time, it or
any of its Affiliates obtains information indicating, or otherwise becomes
aware, that any such information or representations is or may be inaccurate or
incomplete, to promptly inform the other Parties.  The Parties shall not take any action or fail
to take any action, or permit any of their Affiliates to take any action or
fail to take any action, that is or is reasonably likely to be inconsistent
with the IRS Ruling, the Tax Representation Letters, or the Tax Opinions.

Section 5.8             Timing of Payment
of Taxes.  All Distribution Taxes
required to be paid or caused to be paid by a Party to a Taxing Authority under
applicable Law shall be paid or caused to be paid by such Party on or prior to
the Due Date of such Distribution Taxes. 
All amounts required to be paid by one Party to another Party (including
obligations arising under Article VII) pursuant to this Article V shall be paid
or caused to be paid by such first Party to such other Party in accordance with
Article VIII.

ARTICLE VI

EMPLOYEE BENEFIT MATTERS

Section 6.1             Deferred
Compensation Deductions.

(a)           Entitlement to Deductions.  Any Deferred Compensation
Deduction arising after the Distribution Date shall be claimed solely by the
Party (or the appropriate Affiliate of that Party) that employs the individual
with respect to whom such Deferred Compensation Deduction arises at the time
that it arises or, if such individual is not then employed by any Party or a
Party’s Affiliate, by Tyco or its appropriate Affiliate if the individual is a
Former Tyco Employee, by Healthcare or its appropriate Affiliate if the
individual is a Former Healthcare Employee, or by Electronics or its
appropriate Affiliate if the individual is a 

 31
 

Former Electronics
Employee.  If, as a result of a Final
Determination, a Deferred Compensation Deduction is disallowed in whole or in
part to the Party (the “Employing Party”) or its Affiliate claiming such
Deferred Compensation Deduction pursuant to the preceding sentence, then any
other Party (“Claiming Party”) or its Affiliates shall at the request of
the Employing Party make a claim for all such deductions (“Claimed Deductions”);
provided, however, that the Employing Party has delivered to the
Claiming Party (i) an opinion of counsel in a form satisfactory to the Claiming
Party that confirms that the Claimed Deductions should be sustained based on
the Final Determination, and (ii) an acknowledgement that the Employing Party
will reimburse the Claiming Party for all reasonable expenses incurred by the
Claiming Party or any of its Affiliates as a result of claiming the Claimed
Deductions.  Upon a subsequent Final
Determination in favor of the Claiming Party or one or more of its Affiliates
for the Claimed Deductions, the Claiming Party shall pay to the Employing Party
any Tax Benefit Actually Realized by the Claiming Party or its Affiliates in
the taxable year that the Claiming Party or one or more of its Affiliates
asserts its claim to the Claimed Deductions.

(b)           Withholding and
Reporting.  The Employing Party that
claims (or any Affiliate of which claims) the Deferred Compensation Deduction
described in Section 6.1(a) shall be responsible for all applicable Taxes
(including, but not limited to, withholding and excise taxes) and shall
satisfy, or shall cause to be satisfied, all applicable Tax reporting
obligations in respect to the deferred compensation that gives rise to the
Deferred Compensation Deduction.  The
Parties to this Agreement shall reasonably cooperate (and shall cause their
Affiliates to cooperate) so as to permit the Employing Party or its Affiliates
claiming such Deferred Compensation Deduction to discharge any applicable Tax withholding
and Tax reporting obligations, including the appointment of the Employing Party
or one or more of its Affiliates as the withholding and reporting agent if the
Employing Party or one or more of its Affiliates is not otherwise required or
permitted to withhold and report under applicable Law.

ARTICLE VII

INDEMNIFICATION

Section 7.1             Indemnification
Obligations of Tyco.  Tyco shall
indemnify Healthcare and Electronics and hold them harmless from and against
(without duplication):

(a)           all Taxes and other
amounts for which the Tyco Group is responsible under this Agreement; and

(b)           all Taxes and
reasonable out-of-pocket costs for advisors and other expenses attributable to
a breach of any representation, covenant, or obligation of Tyco under this
Agreement.

Section 7.2             Indemnification
Obligations of Healthcare. 
Healthcare shall indemnify Tyco and Electronics and hold them harmless
from and against (without duplication):

(a)           all Taxes and other
amounts for which the Healthcare Group is responsible under this Agreement; and

 32
 

(b)           all Taxes and
reasonable out-of-pocket costs for advisors and other expenses attributable to
a breach of any representation, covenant, or obligation of Healthcare under
this Agreement.

Section 7.3             Indemnification
Obligations of Electronics. 
Electronics shall indemnify Tyco and Healthcare and hold them harmless
from and against (without duplication):

(a)           all Taxes and other
amounts for which the Electronics Group is responsible under this Agreement;
and

(b)           all Taxes and
reasonable out-of-pocket costs for advisors and other expenses attributable to
a breach of any representation, covenant or obligation of Electronics under
this Agreement.

ARTICLE VIII

PAYMENTS

Section 8.1             Payments

(a)           General.  Unless otherwise provided in this Agreement,
in the event that an Indemnifying Party is required to make a payment to an
Indemnified Party pursuant to this Agreement:

(i)            Aggregate Payments
of Less than $10 Million.  If such
payments are in the aggregate less than $10 million during the calendar
quarter, the Indemnified Party shall deliver written notice of the payments to
the Indemnifying Party in accordance with Section 14.3 during the calendar
quarter in which the obligation giving rise to the indemnification payment must
be satisfied, and the Indemnifying Party shall be required to make payment to
the Indemnified Party within ten (10) Business Days after the end of the
calendar quarter in which written notice of such payment is delivered to the
Indemnifying Party (or, if later, within thirty (30) Business Days of such
delivery).

(ii)           Payments Equal to or
Greater than $10 Million.  If such
payments are individually or in the aggregate equal to or greater than $10
million, the Indemnified Party shall deliver written notice of the payment to
the Indemnifying Party in accordance with Section 14.3 at least ten (10)
Business Days in advance of the date or dates on which the obligations giving
rise to the indemnification payment must be satisfied (in the case of aggregate
payments in excess of $10 million, the earliest date that any such payment must
be satisfied), and the Indemnifying Party shall be required to make payment to
the Indemnified Party no later than  five
(5) Business Days after receipt of such notice. 
The Indemnified Party shall, within one (1) Business Day after the date
on which the obligation giving rise to the indemnification payment is
satisfied, pay interest to the Indemnifying Party that accrues (at a rate equal
to one (1) week LIBOR minus 25 basis points) on the amount of such payment from
the date of receipt of such payment by the Indemnified Party until the date on
which the obligation is satisfied.

(b)           Procedural Matters.  The written notice delivered to the
Indemnifying Party in accordance with Section 14.3 shall show the amount due
and owing together with a 

 33
 

schedule calculating in reasonable detail such amount
(and shall include any relevant Tax Return, statement, bill or invoice related
to Taxes, costs, expenses or other amounts due and owing).  All payments required to be made by one Party
to another Party pursuant to this Section 8.1 shall be made by electronic, same
day wire transfer.  Payments shall be
deemed made when received.  If the Indemnifying
Party fails to make a payment to the Indemnified Party within the time period
set forth in this Section 8.1, such Indemnifying Party shall not be considered
to be in breach of its covenants and obligations established in this Section
8.1 unless and until such failure exists on the date on which the obligation
giving rise to the indemnification payment must be satisfied; provided, however,
that the Indemnifying Party shall pay to the Indemnified Party (i) interest
that accrues (at a rate equal to the Prime Rate plus 200 basis points) on the
amount of such payment from the time that such payment was due to the
Indemnified Party until the date that payment is actually made to the
Indemnified Party; and (ii) any costs or expenses, including any breakage
costs, incurred by the Indemnified Party to secure such payment or to satisfy the
Indemnifying Party’s portion of the obligation giving rise to the
indemnification payment.

(c)           Right of Setoff.  It is expressly understood that an
Indemnifying Party is hereby authorized to set off and apply any and all
amounts required to be paid to an Indemnified Party pursuant to this Section
8.1 against any and all of the obligations of the Indemnified Party to the
Indemnifying Party arising under Section 8.1 of this Agreement that are then
either due and payable or past due, irrespective of whether such Indemnifying
Party has made any demand for payment with respect to such obligations.

Section 8.2             Treatment of
Payments made Pursuant to Tax Sharing Agreement.  Unless otherwise required by a Final
Determination or this Agreement, for U.S. federal Tax purposes, any payment
made pursuant to this Agreement by:

(a)           a Spinco Party to Tyco
shall be treated for all Tax purposes as a distribution by such Spinco Party to
Tyco with respect to stock of the Spinco Party under Section 301 of the Code
occurring after the Spinco Party is directly owned by Tyco and immediately
before the applicable Distribution;

(b)           Tyco to either of the
Spinco Parties shall be treated for all Tax purposes as a tax-free contribution
by Tyco to the appropriate Spinco Party with respect to its stock occurring
after the Spinco Party is directly owned by Tyco and immediately before the
applicable Distribution;

(c)           a Spinco Party to
another Spinco Party shall be treated for all Tax purposes as a distribution by
the first Spinco Party to Tyco with respect to stock of that Spinco Party under
Section 301 of the Code occurring after the Spinco Party is directly owned by
Tyco and immediately before the applicable Distribution followed by a tax-free
contribution by Tyco to the recipient Spinco Party with respect to its stock
occurring after the Spinco Party is directly owned by Tyco and immediately
before the applicable Distribution; and

in each case, none of the Parties shall take any
position inconsistent with such treatment. 
In the event that a Taxing Authority asserts that a Party’s treatment of
a payment pursuant to this Agreement should be other than as required pursuant
to this Agreement (ignoring any potential 

 34
 

inconsistent or
adverse Final Determination), such Party shall use its reasonable best efforts
to contest such challenge.

Section 8.3             Treatment of
Payments made Pursuant to Separation and Distribution Agreement.  Unless otherwise required by a Final
Determination or this Article VIII, for U.S. federal Income Tax purposes,
payments made pursuant to the Separation and Distribution Agreement shall be
treated in accordance with the principles set forth in Section 8.2.  Payments made by a Party for costs and
expenses relating to Assumed Tyco Contingent Liabilities or otherwise pursuant
to the Separation and Distribution Agreement and for Specified Shared Expenses
shall be treated as amounts deductible by such Party pursuant to Section 162 of
the Code, and none of the Parties shall take any position inconsistent with
such treatment, except to the extent that there is a Final Determination with
respect to the paying Party that such payment is not deductible.  In the event that a Taxing Authority asserts
that a Party’s treatment of a payment pursuant to the Separation and
Distribution Agreement should be other than as set forth in this Agreement
(ignoring any potential inconsistent or adverse Final Determination), such
Party shall use its reasonable best efforts to contest such challenge.

Section 8.4             Payments Net of
Tax Benefit Actually Realized.  All
amounts required to be paid by one Party to another pursuant to this Agreement
or the Separation and Distribution Agreement shall be reduced by the Tax
Benefit Actually Realized by the Indemnified Party or its Subsidiaries in the
taxable year the payment is made or any prior taxable year.

ARTICLE IX

AUDITS

Section 9.1             Notice.  Within fifteen (15) Business Days after a
Party or any of its Affiliates receives a written notice from a Taxing
Authority (reduced to five (5) Business Days for written notices received from
a state or local Taxing Authority) of the existence of an Audit that may
require indemnification pursuant to this Agreement, that Party shall notify the
other Parties of such receipt and send such notice to the other Parties via
overnight mail.  The failure of one Party
to notify the other Parties of an Audit shall not relieve such other Party of
any liability and/or obligation that it may have under this Agreement, except
to the extent that the Indemnifying Party’s rights under this Agreement are
materially prejudiced by such failure.

Section 9.2             Pre-Distribution
Audits.

(a)           Determination of
Administering Party.  Subject to
Sections 9.2(b), 9.2(c), and 9.2(d):

(i)            Tyco and its
Subsidiaries shall administer and control all Pre-Distribution U.S. Income Tax
Audits, all Pre-Distribution Tyco (U.S.) Qualified Plan Tax Audits, and all
Pre-Distribution TME Payroll Tax Audits.

(ii)           Tyco
and its Subsidiaries shall administer and control all Pre-Distribution Transfer
Pricing Tax Audits if such Audits include a Subsidiary of any Party that is
subject to U.S. Income Tax or involve a Taxing Authority in the U.S.; provided,
further, that all other Pre-Distribution Transfer Pricing Tax Audits
shall be administered and controlled by the 

 35
 

Party and its Subsidiaries that would be primarily
liable under applicable Law to pay to the applicable Taxing Authority the Taxes
resulting from such Audits.

(iii)          Pre-Distribution
Non-Income or Non-U.S. Tax Audits shall be administered and controlled by the
Party and its Subsidiaries that would be primarily liable under applicable Law
to pay to the applicable Taxing Authority the Taxes resulting from such Audits.

(b)           Administration and
Control; Cooperation.  Subject to
Section 9.2(c) and to a Change of Control or a Bankruptcy of the Audit
Management Party as provided below, the Audit Management Party shall have
absolute authority to make all decisions (determined in its sole discretion)
with respect to the administration and control of such Audit, including the
selection of all external advisors.  In
that regard, the Audit Management Party (i) may in its sole discretion settle
or otherwise determine not to continue to contest any issue related to such
Audit without the consent of the other Parties, and (ii) shall, as soon as
reasonably practicable and prior to settlement of an issue that could cause one
or more other Parties to become responsible for Taxes under Section 9.3, notify
the Audit Representatives of such other Parties of such settlement.  The other Parties shall (and shall cause
their Affiliates to) undertake all actions and execute all documents (including
an extension of the applicable statute of limitations) that are determined in
the sole discretion of the Audit Management Party to be necessary to effectuate
such administration and control.  The
Parties shall act in good faith and use their reasonable best efforts to
cooperate fully with each other Party (and their Affiliates) in connection with
such Audit and shall provide or cause their Subsidiaries to provide such
information to each other as may be necessary or useful with respect to such
Audit in a timely manner, identify and provide access to potential witnesses,
and other persons with knowledge and other information within its control and
reasonably necessary to the resolution of the Audit.  Notwithstanding anything to the contrary in
this Section 9.2(b), after a Change of Control or a Bankruptcy of the Audit
Management Party, the Audit Management Party shall not, prior to the resolution
of the vote permitted under Section 9.2(d)(ii) as a result of such Change of
Control or Bankruptcy (including the failure of any Party to submit an
Administration Vote Notice with respect to such Change of Control), choose to
litigate any issue with respect to an Audit or make any decision to change the
forum or jurisdiction with respect to which an issue arising under an Audit is
being litigated, without the prior written consent of all of the Parties.

(c)           Participation Rights
of Parties and Information Sharing with respect to Audits.

(i)            Each
Party that would be responsible under Section 9.3 for Taxes resulting from an
Audit (other than the Audit Management Party) (a “Participating Party”) shall
have limited participation rights as set forth in this Section 9.2(c) with
respect to such Audit.  Promptly after
the Distributions, the Audit Management Party shall arrange for a meeting or
conference call that includes all of the Participating Parties to discuss the
status of all ongoing Audits.  In
addition, promptly after notification of an Audit pursuant to Section 9.1, the
Audit Management Party shall arrange for a meeting or conference call that
includes all of the Participating Parties to plan for the management of such
Audit.  Thereafter, the Parties shall
arrange for a meeting (in the case of meetings with the Boca Raton Audit Team,
such meetings shall take place in Boca Raton, FL) or conference call to be held
on a monthly basis (or on such other basis as the Parties may agree) in order
to facilitate regular communication on the status of 

 36
 

the Audits. 
These meetings shall be scheduled at the beginning of each fiscal year
and shall not be rescheduled without the consent of all of the Parties.  The Parties may determine from time to time
to have a separate special meeting to discuss a significant Audit issue.  Each Participating Party shall identify any
personnel and external advisors who are participating in each of the meetings
described above, and shall provide a list of the names of such persons to the
Audit Management Party in advance of such meeting.

(ii)           Upon the reasonable
request of a Participating Party, the Audit Management Party shall make
available relevant personnel (including, as applicable, the Boca Raton Audit
Team) and external advisors to meet with the Participating Party and its
independent auditor in order to review the status of the Audits.  As provided in Section 5.3 of the Separation
and Distribution Agreement, the independent auditors of the Participating
Parties shall have reasonable access to Audit-related information and
personnel.  The Participating Parties
shall provide the Audit Management Party with reasonable notice of such
requested meetings or information.

(iii)          Except as provided
herein, the Participating Parties shall have no access to the external advisors
retained by the Audit Management Party to advise it and its Subsidiaries on
matters pertaining to an Audit (“Audit External Advisor”) except to the extent
that the Audit Management Party reasonably determines that the attendance of an
Audit External Advisor at a meeting described in (i) or (ii) above is
appropriate.  In the event that any such
meeting is attended by an Audit External Advisor, all of the Parties shall have
the right to participate in such meeting by telephone or in person.  The Audit Management Party shall provide the
other Parties with notice (including the time and location) of such meeting at
least twenty-four (24) hours in advance thereof.  Any Participating Party may request a meeting
with an Audit External Advisor on matters that are unrelated to the Audit;
provided; however, that if the matter involves evaluating Audit related issues,
the requesting Participating Party must give all of the other Parties at least
twenty-four (24) hours notice prior to such meeting so that such Parties can
elect to participate (failure to respond to the Participating Party’s notice
prior to the meeting shall constitute an election to decline
participation).  No Party shall request
an opinion on an Audit related issue from an Audit External Advisor unless the
Audit Management Party affirmatively declines to obtain such opinion.

(iv)          Each
Participating Party shall have access to any written documentation in the
possession of the Audit Management Party that pertains to the Audit (including
any written summaries of issues that the Audit Management Party has developed
in the context of evaluating the financial reporting of the Audit) and the Audit Management Party shall
make such information available in Boca Raton, FL in the offices of the U.S.
Audit Management Party; provided, however, that if documentation
was prepared solely by or on behalf of a Party, then the documentation must
relate to the joint defense of the Audit. 
Such access shall be provided at such times and in such manner as the
Parties agree, but no less frequently than monthly.  Copies of the documentation will be made
available to the Participating Parties at their sole cost and expense.  The Audit Management Party shall undertake to
use reasonable efforts to include within the written documentation described
above information that is transmitted through electronic means, such as through
internet e-mail.  Subject to the exceptions listed on Schedule 9.2(c)(iv), the Audit
Management Party shall maintain an internet-based or other electronic document
repository system (which shall be Exam 

 37
 

Manager unless the Audit Management Party chooses
another system in its sole discretion) for written documentation related to the
Audit, and each of the Participating Parties shall be granted, if so requested,
“read only” access to such repository system at such requesting Party’s own
cost and expense.  Such system shall be
managed and controlled by the Audit Management Party and all decisions with
respect to the system (including but not limited to the documents to be posted
to such system) shall be made by the Audit Management Party in its sole
discretion; provided, however, that the U.S. Audit Management
Party shall at a minimum post documents that relate to Audits of Tyco’s,
Electronic’s and Healthcare’s Subsidiaries arising with respect to U.S. federal
Income Taxes in a manner that is consistent with the U.S. Audit Management
Party’s document posting practices with respect to such Audits immediately
prior to the Distribution Date.  An
illustrative, but not exclusive, list of the documents and other information to
be made available by the Audit Management Party to the Participating Parties is
set forth in Schedule 9.2(c)(iv).

(v)           The Participating
Parties are encouraged to provide consultation to the Audit Management Party in
regards to Audit strategy and shall, upon request of the Audit Management
Party, provide such consultation.  The
Participating Party may elect to employ separate counsel to advise the Participating
Party as additional counsel in or in connection with an Audit, but in that
event, the fees and expenses of the separate counsel shall be paid solely by
the Participating Party.  The Audit
Management Party shall in good faith consider all advice and other input
received from the Participating Parties in connection with their consultations
with respect to an Audit.  However, the
Audit Management Party shall retain the sole authority to make all Audit
decisions.  In that regard, the
Participating Parties and their separate counsels shall not be allowed to
participate in any Audit-related meetings other than those described in (i) or
(ii) above (unless such a meeting is attended by the personnel of a
Participating Party, in which case that Participating Party may attend the
meeting but may not actively participate), respond directly to a Taxing
Authority conducting the Audit, or in any manner control resolution of the
Audit.

(d)           Change in Audit
Management Party.

(i)            Upon (a) the second
anniversary following the Effective Time and annually on each anniversary date
thereafter; (b) the expiration of the three (3) month period following a Change
of Control of the Audit Management Party; or (c) the expiration of the
three (3) month period following a Bankruptcy of the Audit Management Party
(each of (a), (b), and (c), a “Tax Management Change Event”), a Party’s Audit
Representative may call for a vote to decide whether the current Audit
Management Party should be replaced by another Party by providing written
notice of such vote to the other Parties thirty (30) days prior to such Tax
Management Change Event (“Administration Vote Notice”).

(ii)           Within fifteen (15)
days after the other Parties’ receipt of an Administration Vote Notice, the
Parties’ Audit Representatives shall meet together (either in person,
telephonically or by other electronic means) and discuss any information that
is deemed to be relevant to the Parties’ vote. 
Thirty (30) days after the other Parties’ receipt of an Administration
Vote Notice, the Board of Directors of each of the Parties shall submit to the
other Parties a written vote identifying the one Party that it casts its vote
for to be appointed the Audit Management Party.

 38
 

(iii)          In the case of a vote
under (ii) above, if a Party other than the current Audit Management Party receives
a majority in number of the votes of the Parties, that Party (the “Elected
Party”) and its Subsidiaries shall be appointed the new Audit Management Party
upon delivery of written acceptance of the appointment to each other Party
within five (5) days after the vote (“Acceptance Notice”).  If the Elected Party delivers the Acceptance
Notice, then the Elected Party shall immediately have and assume all of the
rights and obligations of the Audit Management Party under this Agreement.  Except as provided in Section 9.2(d)(iv),
upon delivery of the Acceptance Notice, the Replaced Audit Management Party
shall have no further rights or obligations as the Audit Management Party
(other than for any expense or cost reimbursements incurred prior to its
replacement).  If (a) the current Audit
Management Party receives a majority in number of votes, (b) no Party receives
a majority of the votes cast, or (c) the Elected Party fails to deliver the
Acceptance Notice, then the Audit Management Party shall remain the Party then
appointed.

(iv)          If as a result of a vote
under (ii) above, there is a replacement of the then appointed Audit Management
Party (the “Replaced Audit Management Party”), the Replaced Audit Management
Party shall use its reasonable best efforts to transition to the new Audit
Management Party the administration and control of the ongoing Audits that the
Replaced Audit Management Party was prior to its replacement responsible for
administering and controlling pursuant to Section 9.2(a).

(v)           Each Party has the
exclusive right to replace its respective Audit Representative provided that
such Audit Representative must be an employee of such Party or any of its
Affiliate, and in the event of such replacement, the applicable Party shall
provide written notice of such replacement to the other Parties.

(e)           Sharing of Internal and External Costs and Expenses
related to Pre-Distribution U.S. Income Tax Audits, Pre-Distribution
Tyco (U.S.) Qualified Plan Tax Audits, Pre-Distribution TME Payroll Tax Audits, and Pre-Distribution Transfer Pricing Tax Audits.

(i)            External Costs and Expenses.  All external
costs and expenses (including all costs and expenses of calculating Taxes and
other amounts payable hereunder) that are incurred by the Audit Management
Party with respect to a Pre-Distribution U.S. Income Tax Audit, a Pre-Distribution
Tyco (U.S.) Qualified Plan Tax Audit, a Pre-Distribution TME Payroll Tax Audit, or a Pre-Distribution Transfer Pricing Tax Audit
(including any costs and expenses incurred as a result of any reporting
obligations that arise out of an Audit, such as the reporting of any Audit
adjustments to the various U.S. states) shall be shared on an equal one-third
(1/3) basis by each of the Parties.  The
Audit Management Party shall provide to the other Parties at the end of each
calendar quarter an invoice for each other Party’s share of the external costs
(along with supporting invoices received from the external service providers),
and each other Party shall remit, within sixty (60) days after receipt of the invoice, payment of their share of the
external costs to the Audit Management Party.

(ii)           Internal Costs and Expenses.  The U.S.
Audit Management Party shall estimate the internal costs and expenses that it
expects will be incurred by the Boca Raton Audit Team (based on consistent past
practices) during the period that starts on the Distribution Date and ends on
the last day of the 2012 fiscal year and shall provide such estimate on
Schedule 9.2(e)(ii).  

 39
 

Each of the other Parties shall pay
(or shall cause its Subsidiaries to pay) the U.S. Audit Management Party,
within sixty (60) days after the beginning of each fiscal year through 2012,
and in the case of the fourth fiscal quarter of 2007, within sixty (60) days
after the commencement of such quarter, a fixed fee equal to one-third (1/3) of
the internal costs and expenses shown in the estimate provided by the U.S.
Audit Management Party on Schedule 9.2(e)(ii), for such fiscal year or quarter,
as applicable.  Prior to the end of
fiscal year 2012, the Parties shall renegotiate this fee for succeeding
periods.  No adjustment shall be made for
any difference between the internal costs and expenses estimated by the U.S.
Audit Management Party and the amount of such costs and expenses that are
actually incurred by the U.S. Audit Management Party.  The other Parties acknowledge that they may
incur internal costs and expenses related to an Audit that are not reimbursed
pursuant to this Agreement and that the only internal costs and expenses that
are subject to sharing and reimbursement are the internal costs and expenses
incurred by the U.S. Audit Management Party as provided in Schedule 9.2(e)(ii).

(f)            Treatment of Costs
and Expenses related to Pre-Distribution U.S. Income Tax Audits, Pre-Distribution Tyco (U.S.) Qualified Plan
Tax Audits, Pre-Distribution TME Payroll Tax Audits, and Pre-Distribution
Transfer Pricing Tax Audits. 
Payments borne by the Parties or any of their Subsidiaries for costs and
expenses relating to Pre-Distribution U.S. Income Tax Audits, Pre-Distribution
Tyco (U.S.) Qualified Plan Tax Audits, Pre-Distribution TME Payroll Tax Audits,
and Pre-Distribution Transfer Pricing Tax Audits shall be treated as amounts
deductible by the paying Party (or its Subsidiary) pursuant to Section 162 of
the Code, and none of the Parties or any of their Subsidiaries shall take any
position inconsistent with such treatment, except to the extent that a Final
Determination with respect to the paying Party or its Subsidiary causes any
such payment to not be so treated.

(g)           Geographical
Movement of Audit.  Notwithstanding
anything to the contrary in this Section 9.2, (i) the Audit Management Party
shall not move the administration and control of a Pre-Distribution U.S. Income
Tax Audit, a Pre-Distribution Tyco (U.S.) Qualified Plan Tax Audit, or a
Pre-Distribution TME Payroll Tax Audit from
Boca Raton, FL without the prior consent of the other Parties; and (ii) all
Pre-Distribution U.S. Income Tax Audits, Pre-Distribution Tyco (U.S.)
Qualified Plan Tax Audits, Pre-Distribution TME Payroll Tax Audits, must be administered and controlled in the same
location.  A vote to move the
administration and control of a Pre-Distribution U.S. Income Tax Audit,
a Pre-Distribution Tyco (U.S.) Qualified Plan Tax Audit, or a Pre-Distribution
TME Payroll Tax Audit from Boca Raton, FL shall
be made at the time and in the manner specified in Section 9.2(d).  In the event of a change in the U.S. Audit
Management Party, the employees of the Boca Raton Audit Team shall have
the rights set forth in Schedule 9.2(g).

(h)           Power
of Attorney/Officer Signature.  Each
Party hereby appoints (and shall cause its Subsidiaries to appoint) the Audit
Management Party (and its designated representatives) as its agent and
attorney-in-fact to take the actions the Audit Management Party deems necessary
or appropriate to implement the responsibilities of the Audit Management Party
under this Agreement.  Each Party also
shall (or shall cause its Subsidiaries to) execute and deliver to the Audit
Management Party a power of attorney, substantially in the form attached hereto
as Schedule 9.2(h-1), and such other documents as are reasonably requested from
time to time by the Audit Management Party (or its designee).  Such other documents include, but are not
limited to, documents signed by an authorized corporate officer of a Party (or
a Subsidiary of 

 40
 

a Party), where the Audit Management Party determines
that a power of attorney is insufficient (in which case such signed documents
shall not be withheld) to allow the Audit Management Party to make the
necessary or appropriate filings or to take steps necessary or appropriate to
the Audit Management Party’s defense, prosecution, or settlement of an Audit
under this Agreement; provided, however, that (i) such power of
attorney or such other documents shall not expand the rights or powers of such
Audit Management Party beyond those provided by this Agreement; (ii) activities
conducted under a power of attorney or such other documents are limited to the
activities authorized by that power of attorney or such other documents; (iii)
a power of attorney or such other documents delivered by a Party to the Audit
Management Party can be revoked only with the approval of the Audit Committee
of the Board of Directors of the Party to which the power of attorney or such
other documents relates; and (iv) a revocation of a power of attorney or such
other documents by a Party’s Audit Committee also effects the immediate
revocation of all powers of attorney or such other documents granted under, or
derived from, the authority of the power of attorney that is revoked by that
Party’s Audit Committee.  Examples of
activities for which the signature of a Party’s authorized representative could
be required are set forth on Schedule 9.2(h-2).

(i)            Adjustments
Resulting from Redo Project. 
Notwithstanding anything to the contrary herein, the Parties agree that
(i) the Audit Management Party shall be authorized to submit to the IRS any and
all adjustments to Income Tax Returns resulting from the Redo Project; (ii) any
and all adjustments to Income Tax Returns resulting from the Redo Project shall
be treated as an adjustment of Taxes arising in connection with a Final
Determination with respect to a Pre-Distribution U.S. Income Tax Audit, or as a
Refund of Taxes reported on an Income Tax Return that is the subject of a
Pre-Distribution U.S. Income Tax Audit, as the case may be; and (iii) the
Parties shall share any such adjustment to an Income Tax Return or Refund of
Taxes in accordance with their Sharing Percentages pursuant to Sections 9.3(a)
and 4.1(a), as applicable.

Section 9.3             Payment of Audit
Amounts.

(a)           Pre-Distribution
U.S. Income Tax Audits.  Subject to
Schedule 9.3(a), in connection with any Final Determination with respect to a
Pre-Distribution U.S. Income Tax Audit:

(i)            Tyco shall be liable
for and shall pay or cause to be paid to the applicable Taxing Authority,
Healthcare, or Electronics (as the case may be) an amount equal to the Tyco
Sharing Percentage of the additional Taxes due and payable as a result of such
Final Determination that are attributable to a Pre-Distribution Tax Period or
the portion of a Straddle Tax Period ending on the Distribution Date.

(ii)           Electronics shall be
liable for and shall pay or cause to be paid to the applicable Taxing
Authority, Tyco, or Healthcare (as the case may be) an amount equal to the
Electronics Sharing Percentage of the additional Taxes due and payable as a
result of such Final Determination that are attributable to a Pre-Distribution
Tax Period or the portion of a Straddle Tax Period ending on the Distribution
Date.

 41
 

(iii)          Healthcare shall be
liable for and shall pay or cause to be paid to the applicable Taxing
Authority, Tyco, or Electronics (as the case may be) an amount equal to the
Healthcare Sharing Percentage of the additional Taxes due and payable as a
result of such Final Determination that are attributable to a Pre-Distribution
Tax Period or the portion of a Straddle Tax Period ending on the Distribution
Date.

(b)           Pre-Distribution
Transfer Pricing Tax Audits.  In
connection with any Final Determination with respect to a Pre-Distribution
Transfer Pricing Tax Audit:

(i)            Tyco shall be liable
for and shall pay or cause to be paid to the applicable Taxing Authority,
Healthcare, or Electronics (as the case may be) an amount equal to the Tyco
Sharing Percentage of the additional Taxes due and payable as a result of such
Final Determination that are attributable to a Pre-Distribution Tax Period or
the portion of a Straddle Tax Period ending on the Distribution Date.

(ii)           Electronics shall be
liable for and shall pay or cause to be paid to the applicable Taxing
Authority, Tyco, or Healthcare (as the case may be) an amount equal to the
Electronics Sharing Percentage of the additional Taxes due and payable as a
result of such Final Determination that are attributable to a Pre-Distribution
Tax Period or the portion of a Straddle Tax Period ending on the Distribution
Date.

(iii)          Healthcare shall be
liable for and shall pay or cause to be paid to the applicable Taxing
Authority, Tyco, or Electronics (as the case may be) an amount equal to the
Healthcare Sharing Percentage of the additional Taxes due and payable as a
result of such Final Determination that are attributable to a Pre-Distribution
Tax Period or the portion of a Straddle Tax Period ending on the Distribution
Date.

(c)           Pre-Distribution
Non-Income or Non-U.S. Tax Audits. 
In connection with any Final Determination with respect to a
Pre-Distribution Non-Income or Non-U.S. Tax Audit:

(i)            Tyco shall be liable
for and shall pay or cause to be paid to the applicable Taxing Authority,
Healthcare, or Electronics (as the case may be) the Tyco Allocable Audit
Portion due and payable as a result of such Final Determination.

(ii)           Electronics shall be
liable for and shall pay or cause to be paid to the applicable Taxing
Authority, Tyco, or Healthcare (as the case may be) the Electronics Allocable
Audit Portion due and payable as a result of such Final Determination.

(iii)          Healthcare shall be
liable for and shall pay or cause to be paid to the applicable Taxing
Authority, Tyco, or Electronics (as the case may be) the Healthcare Allocable
Audit Portion due and payable as a result of such Final Determination.

(d)           Pre-Distribution
Tyco (U.S.) Qualified Plan Tax Audits. 
In connection with any Final Determination with respect to a
Pre-Distribution Tyco (U.S.) Qualified Plan Tax Audit:

(i)            Tyco
shall be liable for and shall pay or cause to be paid to the applicable Taxing
Authority, Healthcare, or Electronics (as the case may be) an amount equal to 

 42
 

the Tyco Sharing Percentage of the additional Taxes
due and payable as a result of such Final Determination that are attributable
to a Pre-Distribution Tax Period or the portion of a Straddle Tax Period ending
on the Distribution Date.

(ii)           Electronics shall be
liable for and shall pay or cause to be paid to the applicable Taxing
Authority, Tyco, or Healthcare (as the case may be) an amount equal to the
Electronics Sharing Percentage of the additional Taxes due and payable as a
result of such Final Determination that are attributable to a Pre-Distribution
Tax Period or the portion of a Straddle Tax Period ending on the Distribution
Date.

(iii)          Healthcare shall be
liable for and shall pay or cause to be paid to the applicable Taxing
Authority, Tyco, or Electronics (as the case may be) an amount equal to the
Healthcare Sharing Percentage of the additional Taxes due and payable as a
result of such Final Determination that are attributable to a Pre-Distribution
Tax Period or the portion of a Straddle Tax Period ending on the Distribution
Date.

(e)           Pre-Distribution TME
Payroll Tax Audits.  In connection
with any Final Determination with respect to a Pre-Distribution TME Payroll Tax
Audit:

(i)            Tyco shall be liable
for and shall pay or cause to be paid to the applicable Taxing Authority,
Healthcare, or Electronics (as the case may be) eighty-three percent (83%) of
the additional Taxes due and payable as a result of such Final Determination
that are attributable to a Pre-Distribution Tax Period or the portion of a
Straddle Tax Period ending on the Distribution Date.

(ii)           Electronics shall be
liable for and shall pay or cause to be paid to the applicable Taxing
Authority, Tyco, or Healthcare (as the case may be) ten percent (10%) of the
additional Taxes due and payable as a result of such Final Determination that
are attributable to a Pre-Distribution Tax Period or the portion of a Straddle
Tax Period ending on the Distribution Date.

(iii)          Healthcare shall be
liable for and shall pay or cause to be paid to the applicable Taxing
Authority, Tyco, or Electronics (as the case may be) seven percent (7%) of the
additional Taxes due and payable as a result of such Final Determination that
are attributable to a Pre-Distribution Tax Period or the portion of a Straddle
Tax Period ending on the Distribution Date.

(f)            Adjustments to
Refunds.  Notwithstanding Section
9.3(a), (b), (c), (d), or (e), if a Final Determination with respect to an
Audit includes an adjustment to a Refund previously received by one or more
Parties (or their Affiliates) in accordance with Section 4.1, such Parties
shall share any Taxes that become due and payable as a result of such
adjustment in the same manner and proportion that the Parties shared the
Refund.

(g)           Payment
Procedures.  In connection with any
Audit that results in an amount to be paid pursuant to Section 9.3(a), (b),
(c), (d), or (e), the Audit Management Party shall, within thirty (30) Business
Days following a final resolution of such Audit, submit in writing to the other
Parties a preliminary determination (calculated and explained in detail
reasonably sufficient to enable the Parties to fully understand the basis for
such determination 

 43
 

and to permit such Parties and their Affiliates to
satisfy their financial reporting requirements) of the portion of such amount
to be paid by each of the Parties pursuant to Section 9.3(a), (b), (c), (d),
(e), or (f), as applicable.  Each of the
Parties and its Affiliates shall have access to all data and information
necessary to calculate such amounts and the Parties and their Affiliates shall
cooperate fully in the determination of such amounts.  Within twenty (20) Business Days following
the receipt by a Party of the information described in this Section 9.3(g),
such Party shall have the right to object only to the calculation of the amount
of the payment (but not the basis for the payment) by written notice to the
other Parties; such written notice shall contain such disputed item or items
and the basis for its objection.  If no
Party objects by proper written notice to the other Parties within the time
period described in this Section 9.3(g), the calculation of the amounts due and
owing from each Party shall be deemed to have been accepted and agreed upon,
and final and conclusive, for purposes of this Section 9.3(g).  If any Party objects by proper written notice
to the other Parties within such time period, the Parties shall act in good
faith to resolve any such dispute as promptly as practicable in accordance with
Article XIII.  The Party or its Affiliate
responsible for paying to the applicable Taxing Authority under applicable Law
amounts owed pursuant to a Final Determination shall make such payments to such
Taxing Authority prior to the due date for such payments.  The other Parties shall reimburse the paying
Party in accordance with Article VIII for the portion of such payments for
which such other Parties are liable pursuant to this Section 9.3.  The time periods specified above for
submitting a preliminary determination and objecting may be shortened to a time
period determined by a Majority of the Parties if these Parties ascertain that
such shortened time period is necessary to meet the Audit obligations of the
Parties and their Affiliates.

(h)           Advance Payment of
Taxes.  In the event that the Audit
Management Party decides to contest the position of a Taxing Authority taken
with respect to a Pre-Distribution U.S. Income Tax Audit, a Pre-Distribution
Tyco (U.S.) Qualified Plan Tax Audit, a Pre-Distribution TME Payroll Tax Audit,
or a Pre-Distribution Transfer Pricing Tax Audit in a forum or jurisdiction
that requires the prepayment or deposit of the Taxes (or security for the
Taxes) in order to contest the Taxes determined by the Taxing Authority to be
due and payable, each of the other Parties must pay to the Audit Management
Party its portion of such prepayment or deposit determined in accordance with
this Section 9.3, and the Audit Management Party shall promptly remit such
payments to the applicable Taxing Authority in accordance with such Taxing
Authority’s Tax prepayment or deposit procedures, as applicable; provided,
however, if any Party’s portion of such prepayment or deposit exceeds
$500 million, the Parties shall only be obligated to pay their portions of such
prepayment or deposit if a Majority of the Parties votes in favor of the Audit
Management Party’s decision as to choice of forum or jurisdiction.  Each of the Parties shall deliver its written
vote to the Audit Management Party within ten (10) days of its receipt of
written notice of the Audit Management Party’s decision as to choice of forum
or jurisdiction and the amount of the required prepayment or deposit.  A recoupment of all or a portion of a
prepayment or deposit of Taxes resulting from a Final Determination shall be
paid to the Party or Parties that contributed to such prepayment or deposit, in
proportion to such contributions.  No
Party shall be liable to any other Party in the event that a Final Determination
does not allow for the recovery of all or a portion of a prepayment or deposit.

Section 9.4             Correlative Adjustments.  If pursuant to a Final Determination there is
a Correlative Adjustment attributable to a Pre-Distribution Non-Income or
Non-U.S. Tax Audit that causes a Party or its Affiliate to become entitled to a
tax benefit, such Party shall pay the 

 44
 

amount of the Tax Benefit Actually Realized in respect
to the taxable years included in the Final Determination to the Party that
experiences (or whose Affiliate experiences) a tax detriment as a result of
such Correlative Adjustment.

ARTICLE X

COOPERATION AND EXCHANGE OF INFORMATION

Section 10.1           Cooperation and
Exchange of Information.  The Parties
shall each cooperate fully (and each shall cause its respective Affiliates to
cooperate fully) and in a timely manner (considering the other Party’s normal
internal processing or reporting requirements) with all reasonable requests
from another Party hereto, or from an agent, representative, or advisor to such
Party, in connection with the preparation and filing of Tax Returns, claims for
Refund, Audits, determinations of Tax Attributes and the calculation of Taxes
or other amounts required to be paid hereunder, and any applicable financial
reporting requirements of a Party or its Affiliates, in each case, related or
attributable to or arising in connection with Taxes or Tax Attributes of any of
the Parties or their respective Subsidiaries covered by this Agreement.  Such cooperation shall include, without limitation:

(a)           the retention until the
expiration of the applicable statute of limitations or, if later, until the
expiration of all relevant Tax Attributes (in each case taking into account all
waivers and extensions), and the provision upon request, of Tax Returns of the
Parties and their respective Subsidiaries for periods up to and including the
Distribution Date, books, records (including information regarding ownership
and Tax basis of property), documentation, and other information relating to
such Tax Returns, including accompanying schedules, related work papers, and
documents relating to rulings or other determinations by Taxing Authorities;

(b)           the execution of any
document that may be necessary or reasonably helpful in connection with any
Audit of any of the Parties or their respective Subsidiaries, or the filing of
a Tax Return or Refund claim of the Parties or any of their respective
Subsidiaries (including the signature of an officer of a Party or its
Subsidiary);

(c)           the use of the Party’s
reasonable best efforts to obtain any documentation and provide additional
facts, insights or views as requested by another Party that may be necessary or
reasonably helpful in connection with any of the foregoing (including without
limitation any information contained in Tax or other financial information
databases); and

(d)           the use of the Party’s
reasonable best efforts to obtain any Tax Returns (including accompanying
schedules, related work papers, and documents), documents, books, records, or
other information that may be necessary or helpful in connection with any Tax
Returns of any of the Parties or their Affiliates.

Each Party shall make its and its Subsidiaries’
employees and facilities available on a reasonable and mutually convenient
basis in connection with the foregoing matters. 
Except for costs and expenses otherwise allocated among the Parties
pursuant to this Agreement, including costs incurred under Article II and
Article IX, and except for copying costs, which shall be shared 

 45
 

equally by the
Parties, no reimbursement shall be made for costs and expenses incurred by the
Parties as a result of cooperating pursuant to this Section 10.1.

Section 10.2           Retention of Records.  Subject to Section 10.1, if any of the
Parties or their respective Subsidiaries intends to dispose of any
documentation (including, without limitation, documentation that is being
retained pursuant to IRS guidelines, such as Revenue Procedure 98-25 and
Revenue Procedure 97-22) relating to the Taxes of the Parties or their
respective Subsidiaries for which another Party to this Agreement may be
responsible pursuant to the terms of this Agreement (including, without
limitation, Tax Returns, books, records, documentation, and other information,
accompanying schedules, related work papers, and documents relating to rulings
or other determinations by Taxing Authorities), such Party shall or shall cause
written notice to the other Parties describing the documentation to be
destroyed or disposed of sixty (60) Business Days prior to taking such action.  The other Parties may arrange to take
delivery of the documentation described in the notice at their expense during
the succeeding sixty (60) day period.

ARTICLE XI

ALLOCATION OF TAX ATTRIBUTES, DUAL CONSOLIDATED LOSSES AND OTHER TAX MATTERS

Section 11.1           Allocation of Tax
Attributes.  Each Party shall make
its own determination as to the existence and the amount of the Tax Attributes
to which it is entitled after the Effective Time; provided, however,
that such determination shall be made in a manner that is (a) reasonably
consistent with the past practices of the Parties; (b) in accordance with the
rules prescribed by applicable Law, including the Code and the Treasury
Regulations; (c) consistent with the IRS Ruling, the Tax Representation
Letters, and the Tax Opinions; and (d) reasonably determined by the Party 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.  Each Party agrees
to provide the other Parties with all of the information supporting the Tax
Attribute determinations made by that Party pursuant to this Section 11.1.  Notwithstanding the above, the Tax Attributes
listed on Schedule 11.1 shall be allocated among the Parties in the manner
specified thereon.

Section 11.2           Dual Consolidated
Losses.  The Parties agree to (and if
necessary shall cause their Subsidiaries to) use their reasonable efforts to
enter into a closing agreement with the IRS as described in Treasury
Regulations Section 1.1503-2(g)(2)(iv)(B)(3)(i) with respect to any “dual
consolidated loss” (within the meaning of Section 1503(d) of the Code and
Treasury Regulations Section 1.1503-2(c)(5)) that one or more of the Parties
(or their Subsidiaries) is reasonably likely to be required to include in
income as a result of the Plan of Separation. 
If any dual consolidated loss that was incurred prior to the Effective
Time is required to be included in the income of any Party (or its
Subsidiaries) because the Parties were not able to obtain a closing agreement,
the Parties shall share all Taxes that become due and payable for a
Pre-Distribution Tax Period or the portion of a Straddle Tax Period ending on
the Distribution Date in accordance with their Sharing Percentages.

 46

Section 11.3           Payment for Use of
Certain Tax Attributes.  If
Healthcare utilizes any Tax Attribute described in Schedule 11.3 during a Tax
year, resulting in a Tax Benefit Actually Realized in that year, Healthcare shall promptly notify the
other Parties and shall pay each other Party, within fifteen (15) days after
the realization of the Tax Benefit Actually Realized, one-third (1/3) of the
amount of such Tax Benefit Actually Realized.  Healthcare shall not withhold on any payment
made to a Party pursuant to this Section 11.3, provided that on or prior to the
date of payment such Party provides Healthcare with an opinion of counsel that
such payment should not be subject to Tax withholding.  If any Tax Attribute with respect to which
payment is made pursuant to this Section 11.3 is subsequently disallowed
pursuant to a Final Determination, the Parties shall share any amount owed as a
result of such Final Determination that is attributable to the disallowance of
such Tax Attribute in accordance with how the benefit of such Tax Attribute was
shared under this Section 11.3.  Nothing
in this Section 11.3 shall be deemed to impose an obligation on Healthcare to
utilize or to engage in any planning to determine how to utilize the Tax
Attributes described in Schedule 11.3 for any taxable year.

Section 11.4           Third Party Tax
Indemnities and Benefits. 
Notwithstanding anything to the contrary in this Agreement, the Parties
shall share in accordance with their Sharing Percentages (a) any duty or
obligation (contractual or otherwise) of a Party or any of its Affiliates, and
(b) any Tax benefits, in either case, that arose or is attributable to a period
(or portion thereof) ending on or prior to the Distribution Date, to reimburse
or be reimbursed by, as the case may be, a Person other than a Party or its
Affiliates pursuant to a contractual Tax indemnity agreement entered into in
conjunction with the acquisition or disposition of a business by any Party (or
its Subsidiaries).  Each Party shall
promptly notify the other Parties upon receiving notice of any amount to be
shared pursuant to this Section 11.4.

Section 11.5           Allocation of Tax
Items.  All determinations (whether
for purposes of preparing Tax Returns or for purposes of determining a Party’s
responsibility for Taxes under this Agreement) regarding the allocation of Tax
items between the portion of a Straddle Tax Period that ends on the
Distribution Date and the portion of such Straddle Tax Period that begins the
day after the Distribution Date shall be made pursuant to the principles of
Treasury Regulations Section 1.1502-76(b) or of a corresponding provision under
the Laws of the applicable taxing jurisdiction; provided, further,
that Tax items may be ratably allocated to the extent provided by and pursuant
to the principles of Treasury Regulations Section 1.1502-76(b)(2)(ii).  Any such allocation of Tax items shall
initially be determined by Tyco.  To the
extent that Electronics or Healthcare disagrees with such determination, the
dispute shall be resolved pursuant to the provisions of Article XIII.

Section 11.6           Pre-Distribution Tax
Attributes.  In determining the
amount of Taxes due and payable with regard to a Final Determination and the
amounts of the Electronics Allocable Audit Portion, the Healthcare Allocable
Audit Portion, and the Tyco Allocable Audit Portion, each Party agrees to take
any and all actions necessary or helpful, including but not limited to making
such elections, allowances or group reliefs, and those other actions described
in Schedule 11.6, in order to minimize the amount of Taxes that would otherwise
be due and payable by a Party (or its Subsidiaries) as a result of such Final
Determination.  The Parties shall apply
this Section 11.6 based on principles, including the ordering principles,
similar to those described in Schedule 11.6.

 47
 

ARTICLE XII

DEFAULTED AMOUNTS

Section 12.1           General.  In the event that one or more Parties
defaults on its obligation to pay Distribution Taxes for which it is liable
pursuant to Article V to another Party, then each non-defaulting Party shall be
required to pay an equal portion of such Distribution Taxes to such other
Party; provided, however, that no payment obligation shall exist
under this Section 12.1 with respect to Distribution Taxes that are
attributable to the Fault of one or more Parties; provided, further,
that any payment of Distribution Taxes by a non-defaulting Party pursuant to
this Section 12.1 shall in no way release the defaulting Party from its
obligations to pay such Distribution Taxes and any non-defaulting Party may
exercise any available legal remedies available against such defaulting Party; provided,
further, that interest shall accrue on any such payment by a
non-defaulting Party at a rate per annum equal to the then applicable Prime
Rate plus four percent (4%), or the maximum legal rate, whichever is
lower.  In connection with the foregoing,
it is expressly understood that any defaulting Party’s rights to any amounts to
be received by such defaulting Party hereunder may be used via a right of offset
to satisfy, in whole or in part, the obligations of such defaulting Party to
pay the Distribution Taxes (and obligations for Assumed Tyco Contingent
Liabilities as such term is defined for purposes of the Separation and
Distribution Agreement) that are borne by the non-defaulting Parties; such
rights of offset shall be applied in favor of the non-defaulting Party or
Parties in proportion to the additional amounts paid by any such non-defaulting
Party or Parties.

Section 12.2           Subsidiary Funding.  Without limitation of the Parties’ rights and
obligations otherwise set forth in this Agreement and provided that no other
Party has defaulted on any of its obligations pursuant to this Agreement, each
Party agrees to provide or cause to be provided such funding as is necessary to
ensure that its respective Subsidiaries are able to satisfy their respective
Tax liabilities to a Taxing Authority that arise as a result of a Final
Determination under Section 9.3 of this Agreement, including any such Tax
liabilities that, upon default by a Party’s Subsidiary, may result in another
Party’s Subsidiary paying or being required to pay the defaulted Tax
liabilities to a Taxing Authority.

ARTICLE XIII

DISPUTE RESOLUTION

Section 13.1           Negotiation.  In the event of a controversy, dispute or
claim arising out of, in connection with, or in relation to the interpretation,
performance, nonperformance, validity or breach of this Agreement or otherwise
arising out of, or in any way related to this Agreement or the transactions
contemplated hereby, including any claim based on contract, tort, statute or
constitution (“Dispute”), the general counsels of the relevant Parties (or such
other executive officers designated by the relevant Party) shall negotiate for
a reasonable period of time to settle such Dispute; provided, however,
that such reasonable period shall not, unless otherwise agreed by the relevant
Parties in writing, exceed forty-five (45) days from the date of receipt by a
Party of written notice of such Dispute (“Dispute Notice”); provided, further,
that in the event of any arbitration in accordance with Section 13.2 hereof,
the relevant Parties shall not assert the defenses of statute of limitations
and laches arising during the period beginning after the date of 

 48
 

receipt of the Dispute Notice, and any contractual
time period or deadline under this Agreement or any Ancillary Agreement to
which such Dispute relates occurring after the Dispute Notice is received shall
not be deemed to have passed until such Dispute has been resolved.  If the general counsels of the relevant
Parties (or such other executive officers designated by the relevant Party) are
unable to resolve the Dispute within forty-five (45) days from the receipt by a
Party (or Parties) of a Dispute Notice (or within a different period agreed to
by the relevant Parties in writing), the Dispute shall be resolved in
accordance with Section 13.2(a) or Section 13.2(b) as the case may be.

Section 13.2           Mediation.  If, within forty-five (45) days after receipt
by a Party of a Dispute Notice, the Parties have not succeeded in negotiating a
resolution of the Dispute, the Parties agree to submit the Dispute at the
earliest possible date to mediation conducted in accordance with the Commercial
Mediation Rules of the American Arbitration Association (“AAA”), and to bear
equally the costs of the mediation.  The
Parties agree to participate in good faith in the mediation and negotiations
related thereto for a period of thirty (30) days or such longer period as they
may mutually agree following the initial mediation session (the “Mediation
Period”).

Section 13.3           Arbitration.  Subject to Section 13.10, if the Dispute has
not been resolved for any reason after the Mediation Period, such Dispute shall
be determined, at the request of any relevant Party, by arbitration conducted
in New York City, in accordance with the then-existing Commercial Arbitration
Rules of the AAA, except as modified herein (the “Rules”).  There shall be three arbitrators.  If there are only two Parties to the arbitration,
each Party shall appoint one arbitrator within twenty (20) days of receipt by
respondent of a copy of the demand for arbitration.  The two party-appointed arbitrators shall
have twenty (20) days from the appointment of the second arbitrator to agree on
a third arbitrator who shall chair the arbitral tribunal.  If there are three Parties to the
arbitration, such Parties shall each appoint one arbitrator within twenty (20)
days of receipt by respondent of a copy of the demand for arbitration.  Any arbitrator not timely appointed by the
Parties under this Section 13.3 shall be appointed by the AAA in accordance
with the listing, ranking and striking method in the Rules, and in any such
procedure, each Party shall be given a limited number of strikes, excluding
strikes for cause.  Any controversy
concerning whether a Dispute is arbitrable, whether arbitration has been
waived, whether a Party to or assignee of this Agreement is bound to arbitrate,
or as to the interpretation, applicability or enforceability of this Article
XIII shall be determined by the arbitrators. 
In resolving any Dispute, the Parties intend that the arbitrators shall
apply applicable Tax Laws and the substantive Laws of the State of New York,
without regard to any choice of Law principles thereof that would mandate the
application of the Laws of another jurisdiction.  The Parties intend that the provisions to
arbitrate set forth herein be valid, enforceable and irrevocable, and any award
rendered by the arbitrators shall be final and binding on the Parties.  The Parties agree to comply and cause the
members of their applicable Group to comply with any award made in any such
arbitration proceedings and agree to enforcement of or entry of judgment upon
such award, in any court of competent jurisdiction, including but not limited
to (a) the Supreme Court of the State of New York, New York County, or (b) the
United States District Court for the Southern District of New York.  The arbitrators shall be entitled, if
appropriate, to award any remedy in such proceedings in accordance with the
terms of this Agreement and applicable Law, including monetary damages,
specific performance and all other forms of legal and equitable relief; provided,
however, the arbitrators shall not be entitled to 

 49
 

award punitive, exemplary, treble or any other form of
non-compensatory damages unless in connection with indemnification for a
third-party claim (and in such a case, only to the extent awarded in such
third-party claim).

Section 13.4           Arbitration with
Respect to Monetary Damages.  Subject
to Section 13.10, in the event the Dispute involves (a) valuation of a
liability under this Agreement, (b) an amount in controversy in a Dispute, or
(c) an amount of damages following a determination of liability, the arbitration
shall proceed in the following manner: 
Each Party shall submit to the arbitrators and exchange with each other,
on a schedule to be determined by the arbitrators, a proposed valuation, amount
or damages, as the case may be, together with a statement, including all
supporting documents or other evidence upon which it relies, setting forth such
Party’s explanation as to why its proposal is reasonable and appropriate.  The arbitrators, within fifteen (15) days of
receiving such proposals and supporting documents, shall choose between the
proposals and shall be limited to awarding only one of the proposals submitted.

Section 13.5           Arbitration Period.  Any arbitration proceeding shall be concluded
in a maximum of six (6) months from the commencement of the arbitration.  The Parties involved in the proceeding may
agree in writing to extend the arbitration period if necessary to appropriately
resolve the Dispute.

Section 13.6           Treatment of
Negotiations, Mediation, and Arbitration. 
Without limiting the provisions of the Rules, unless otherwise agreed in
writing by or among the relevant Parties or permitted by this Agreement, the
relevant Parties shall keep, and shall cause the members of their applicable
Group to keep, confidential all matters relating to and any negotiation,
mediation, conference, arbitration, discussion, or arbitration award pursuant
to this Article XIII shall be treated as compromise and settlement negotiations
for purposes of Rule 408 of the Federal Rules of Evidence and comparable state
rules; provided, however, that such matters may be disclosed (i)
to the extent reasonably necessary in any proceeding brought to enforce the
award or for entry of a judgment upon the award and (ii) to the extent
otherwise required by Law or stock exchange. 
Nothing said or disclosed, nor any document produced, in the course of
any negotiations, conferences, and discussions that is not otherwise
independently discoverable shall be offered or received as evidence or used for
impeachment or for any other purpose in any current or future arbitration.  Nothing contained herein is intended to or
shall be construed to prevent any Party from applying to any court of competent
jurisdiction for interim measures or other provisional relief in connection
with the subject matter of any Disputes. 
Without prejudice to such provisional remedies as may be available under
the jurisdiction of a court, the arbitral tribunal shall have full authority to
grant provisional remedies and to direct the Parties to request that any court
modify or vacate any temporary or preliminary relief issued by such court, and
to award damages for the failure of any party to respect the arbitral tribunal’s
orders to that effect.

Section 13.7           Continuity of
Service and Performance.  Unless
otherwise agreed in writing, the Parties will continue to provide service and
honor all other commitments under this Agreement and each Ancillary Agreement
during the course of dispute resolution pursuant to the provisions of this
Article XIII with respect to all matters not subject to such dispute
resolution.

 50
 

Section 13.8           Costs.  Except as otherwise may be provided in this
Agreement, the costs of any arbitration pursuant to this Article XIII shall be
borne by the losing Party or Parties in such proportion as the arbitrator or
arbitrators determine based on the facts and circumstances.

Section 13.9           Consolidation.  The arbitrators may consolidate an
arbitration under this Agreement with any arbitration arising under or relating
to the Ancillary Agreements or any other agreement between the Parties entered
into pursuant hereto, as the case may be, if the subject of the Disputes
thereunder arise out of or relate essentially to the same set of facts or
transactions.  Such consolidated arbitration
shall be determined by the arbitrator appointed for the arbitration proceeding
that was commenced first in time.

Section 13.10         Exception to
Arbitration.  Notwithstanding
anything in this Article XIII to the contrary, in the event that the matters
described on Schedule 13.10 have been fully and finally completed, including
the exhaustion of all appeals, if the Dispute has not been resolved for any
reason after the Mediation Period, such Dispute may be subject to litigation in
accordance with Sections 14.15 and 14.17.

ARTICLE XIV

MISCELLANEOUS

Section 14.1           Counterparts;
Facsimile Signatures.  This Agreement
may be executed in one or more counterparts, all of which shall be considered
one and the same agreement, and shall become effective when one or more such
counterparts have been signed by each of the Parties and delivered to the other
Parties.  For purposes of this Agreement,
facsimile signatures shall be deemed originals.

Section 14.2           Survival.  Except as otherwise contemplated by this
Agreement or any Ancillary Agreement, all covenants and agreements of the
Parties contained in this Agreement and each Ancillary Agreement shall survive
the Distribution Date and remain in full force and effect in accordance with
their applicable terms; provided, however, that all
indemnification for Taxes shall survive until ninety (90) days following the
expiration of the applicable statute of limitations (taking into account all
extensions thereof), if any, of the Tax that gave rise to the indemnification; provided,
further, that, in the event that notice for indemnification has been
given within the applicable survival period, such indemnification shall survive
until such time as such claim is finally resolved.

Section 14.3           Notices.  All notices, requests, claims, demands, and
other communications under this Agreement shall be in writing and shall be
given or made (and shall be deemed to have been duly given or made upon
receipt) by delivery in person, by overnight courier service, by facsimile with
receipt confirmed (followed by delivery of an original via overnight courier
service), or by registered or certified mail (postage prepaid, return receipt
requested) to the respective Parties at the following addresses (or at such
other address for a Party as shall be specified in a notice given in accordance
with this Section 14.3):

To Tyco:

Tyco International
Ltd.

 51
 

c/o Tyco International
(US) Inc.

9 Roszel Road

Princeton, New Jersey
08540

Attn: General Counsel

Facsimile: (609)
720-4208

To Healthcare:

Covidien Ltd.

15 Hampshire Street

Mansfield,
Massachusetts  02048

Attn:  General Counsel

Facsimile: (508)
261-8544

To Electronics:

Tyco Electronics Ltd.

1050 Westlakes Drive

Berwyn, Pennsylvania

Attn:  General Counsel

Facsimile: (610)
893-9646

Section 14.4           Waivers and Consents.  The failure of any Party to require strict
performance by any other Party of any provision in this Agreement will not
waive or diminish that Party’s right to demand strict performance thereafter of
that or any other provision hereof.  Any
consent required or permitted to be given by any Party to the other Parties
under this Agreement shall be in writing and signed by the Party giving such
consent.

Section 14.5           Amendments.  Subject to the terms of Section 14.8 hereof,
this Agreement may not be modified or amended except by an agreement in writing
signed by each of the Parties.

Section 14.6           Assignment.  Except as otherwise provided for in this
Agreement, this Agreement shall not be assignable, in whole or in part,
directly or indirectly, by any Party without the prior written consent of the
other Parties, and any attempt to assign any rights or obligations arising
under this Agreement without such consent shall be void; provided, however,
that a Party may assign this Agreement in connection with a merger transaction
in which such Party is not the surviving entity or the sale by such Party of
all or substantially all of its Assets; provided, further, that
the surviving entity of such merger or the transferee of such Assets shall
agree in writing, reasonably satisfactory to the other Parties, to be bound by
the terms of this Agreement as if named as a “Party” hereto.

Section 14.7           Successors and
Assigns.  The provisions of this
Agreement and the obligations and rights hereunder shall be binding upon, inure
to the benefit of and be enforceable by (and against) the Parties and their
respective successors and permitted transferees and assigns; provided, however,
that in no event shall a Party’s right to vote on a matter set forth herein be
construed to permit any duplication of a Party’s vote by a successor, assignee,
or other 

 52
 

transferee.  The
Parties acknowledge that it is their intention to permit no more than three (3)
parties to vote on any matter set forth herein.

Section 14.8           Certain Termination
and Amendment Rights.  This Agreement
(including indemnification obligations hereunder) may be terminated and each
Distribution may be amended, modified or abandoned at any time prior to the
Distribution Date by and in the sole discretion of Tyco without the approval of
Healthcare or Electronics or the stockholders of Tyco.  In the event of such termination, no Party
shall have any liability of any kind to any other Party or any other Person.

Section 14.9           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 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 Separation and 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).

Section 14.10         Subsidiaries.  Each of the Parties shall cause to be
performed, and hereby guarantees the performance of, all actions, agreements
and obligations set forth herein to be performed by any Subsidiary of such
Party or by any entity that becomes a Subsidiary of such Party on and after the
Distribution Date.

Section 14.11         Third Party
Beneficiaries.  This Agreement is
solely for the benefit of the Parties and should not be deemed to confer upon
third parties any remedy, claim, liability, reimbursement, claim of action or
other right in excess of those existing without reference to this Agreement.

Section 14.12         Title and Headings.  Titles and headings to sections herein are
inserted for the convenience of reference only and are not intended to be a
part of or to affect the meaning or interpretation of this Agreement.

Section 14.13         Exhibits and Schedules.  The Exhibits and Schedules shall be construed
with and as an integral part of this Agreement to the same extent as if the
same had been set forth verbatim herein.

Section 14.14         Governing Law.  This Agreement shall be governed by and
construed in accordance with the internal Laws, and not the Laws governing
conflicts of Laws (other than Sections 5-1401 and 5-1402 of the New York
General Obligations Law), of the State of New York.

Section 14.15         Consent to
Jurisdiction.  Subject to the
provisions of Article XIII, each of the Parties irrevocably submits to the
exclusive jurisdiction of (a) the Supreme Court of the State of New York, New
York County, and (b) the United States District Court for the Southern District
of New York (the “New York Courts”), for the purposes of any suit, action, or
other proceeding to compel arbitration or for provisional relief in aid of
arbitration in accordance with Article XIII or to prevent irreparable harm, and
to the non-exclusive jurisdiction of the New York Courts for the enforcement of
any award issued there under.  Each of
the Parties further 

 53
 

agrees that service of any process, summons, notice,
or document by U.S. registered mail to such Party’s respective address set
forth above shall be effective service of process for any action, suit, or
proceeding in the New York Courts with respect to any matters to which it has
submitted to jurisdiction in this Section 14.15.  Each of the Parties irrevocably and
unconditionally waives any objection to the laying of venue of any action,
suit, or proceeding arising out of this Agreement or the transactions
contemplated hereby in the New York Courts, and hereby further irrevocably and
unconditionally waives and agrees not to plead or claim in any such court that
any such action, suit or proceeding brought in any such court has been brought
in an inconvenient forum.

Section 14.16         Specific Performance.  The Parties agree that irreparable damage
would occur in the event that the provisions of this Agreement were not
performed in accordance with their specific terms.  Accordingly, it is hereby agreed that the
Parties shall be entitled to an injunction or injunctions to enforce specifically
the terms and provisions hereof in any court of the United States or any state
having jurisdiction, this being in addition to any other remedy to which they
are entitled at Law or in equity.

Section 14.17         Waiver of Jury Trial.  EACH OF THE PARTIES HEREBY WAIVES TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY WITH RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF,
UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY
THIS AGREEMENT.  EACH OF THE PARTIES
HEREBY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER
PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT,
IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B)
ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE
TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, AS APPLICABLE, BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 14.17.

Section 14.18         Force Majeure.  No Party (or any Person acting on its behalf)
shall have any liability or responsibility for failure to fulfill any
obligation (other than a payment obligation) under this Agreement so long as
and to the extent to which the fulfillment of such obligation is prevented,
frustrated, hindered, or delayed as a consequence of circumstances of Force
Majeure (as defined in the Separation and Distribution Agreement).  A Party claiming the benefit of this
provision shall, as soon as reasonably practicable after the occurrence of any
such event:  (a) notify the other
applicable Parties of the nature and extent of any such Force Majeure condition
and (b) use due diligence to remove any such causes and resume performance
under this Agreement as soon as feasible.

Section 14.19         Construction.  The Parties have participated jointly in the
negotiation and drafting of this Agreement. 
This Agreement shall be construed without regard to any presumption or
rule requiring construction or interpretation against the party drafting or causing
any instrument to be drafted.

Section 14.20         Changes in Law.

 54
 

(a)           Any reference to a
provision of the Code, Treasury Regulations, or a Law of another jurisdiction
shall include a reference to any applicable successor provision or Law.

(b)           If, due to any change
in applicable Law or regulations or their interpretation by any court of Law or
other governing body having jurisdiction subsequent to the date hereof,
performance of any provision of this Agreement or any transaction contemplated
hereby shall become impracticable or impossible, the Parties hereto shall use
their commercially reasonable best efforts to find and employ an alternative
means to achieve the same or substantially the same result as that contemplated
by such provision.

Section 14.21         Authority.  Each of the Parties hereto represents to each
of the other Parties that (a) it has the corporate power (corporate or
otherwise) and authority to execute, deliver and perform this Agreement, (b)
the execution, delivery and performance of this Agreement by it have been duly
authorized by all necessary corporate or other action, (c) it has duly and
validly executed and delivered this Agreement, and (d) this Agreement is a
legal, valid, and binding obligation, enforceable against it in accordance with
its terms subject to applicable bankruptcy, insolvency, reorganization,
moratorium, or other similar Laws affecting creditors’ rights generally and
general equity principles.

Section 14.22         Severability.  If any provision of this Agreement or the
application of any such provision to any Person or circumstance shall be held
invalid, illegal, or unenforceable in any respect by a court of competent
jurisdiction, such invalidity, illegality, or unenforceability shall not affect
any other provision hereof.  The Parties
shall engage in good faith negotiations to replace any provision which is
declared invalid, illegal, or unenforceable with a valid, legal, and
enforceable provision, the economic effect of which comes as close as possible
to that of the invalid, illegal, or unenforceable provision which it replaces.

Section 14.23         Tax Sharing Agreements.  All Tax sharing, indemnification and similar
agreements, written or unwritten, as between any of the Parties or their
respective Subsidiaries, on the one hand, and any other Party or its respective
Subsidiaries, on the other hand (other than this Agreement or in any other
Ancillary Agreement), shall be or shall have been terminated as of the
Distribution Date and, after the Distribution Date, none of such Parties (or
their Subsidiaries) to any such Tax sharing, indemnification or similar
agreement shall have any further rights or obligations under any such
agreement.  Notwithstanding the
foregoing, the Parties agree that in the event that a Party or its Subsidiary
is required under applicable Tax Law to make a Tax payment in excess of
$250,000 with respect to a Pre-Distribution Tax Period or a Straddle Tax Period
to another Party or that other Party’s Subsidiary solely as a result of having
been a member of a non-U.S. Tax Group, such first Party shall (or shall cause
its Subsidiary to) make such payment to such other Party (or its Subsidiary),
subject to the relevant Parties’ agreement (a) as to the most cost efficient
means of effecting such payment, and (b) to share any incremental costs arising
as a result of such payment; provided, however, that any such
means of payment shall place the Parties in the same economic position that
would have been achieved if such payment were made immediately prior to the
Distributions; provided  further, that if the relevant Parties
cannot agree on a means of payment within thirty (30) days from the date on
which all relevant Parties have notice of the payment obligation, then the item
shall be extinguished without further action.

 55
 

Section 14.24         Exclusivity.  Except as specifically set forth in the
Separation and Distribution Agreement or any other Ancillary Agreement, all
matters related to Taxes or Tax Returns of the Parties and their respective
Subsidiaries shall be governed exclusively by this Agreement.  In the event of a conflict between this
Agreement, the Separation and Distribution Agreement or any Ancillary Agreement
with respect to such matters, this Agreement shall govern and control.

Section 14.25         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.

[Signature
Page Follows]

 56

Schedule 13.10

IN WITNESS
WHEREOF, the Parties hereto have caused this Agreement to be executed the day
and year first above written.

	
  TYCO INTERNATIONAL LTD.

  
	
   

  	
   

  
	
  By:

  	
   

  	
  John S. Jenkins, Jr.

  	
   

  
	
  Name:

  	
  John S. Jenkins, Jr.

  
	
  Title:

  	
  Vice President and Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
  COVIDIEN LTD.

  
	
   

  	
   

  
	
  By:

  	
   

  	
  John W. Kapples

  	
   

  
	
  Name:

  	
  John W. Kapples

  
	
  Title:

  	
  Vice President and Assistant Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
  TYCO ELECTRONICS LTD.

  
	
   

  	
   

  
	
  By:

  	
   

  	
  Harold G. Barksdale

  	
   

  
	
  Name:

  	
  Harold G. Barksdale

  
	
  Title:

  	
  Vice President & Assistant Secretary

  

 

 1Exhibit
10.2

CONFORMED COPY

 

Published CUSIP Number:                       

364-DAY SENIOR BRIDGE
LOAN AGREEMENT

(Healthcare Businesses)

dated as of

April 25, 2007

among

TYCO INTERNATIONAL GROUP
S.A.,

Initial Borrower

TYCO INTERNATIONAL LTD.,

Initial Guarantor

COVIDIEN INTERNATIONAL
FINANCE S.A.,

H Borrower

COVIDIEN LTD.,

H Guarantor

The Lenders Party Hereto

and

CITIBANK, N.A.

as Administrative Agent

CITIGROUP GLOBAL MARKETS
INC. and UBS SECURITIES LLC

as Joint Bookrunners and Joint Lead Arrangers

CITIGROUP GLOBAL MARKETS
INC. 

BANC OF AMERICA SECURITIES LLC

as Global Coordinators

 

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
  ARTICLE I

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
   

  	
  Section 1.01

  	
   

  	
  Defined Terms

  	
   

  	
  1

  
	
   

  	
  Section 1.02

  	
   

  	
  Classification of Loans and Borrowings

  	
   

  	
  19

  
	
   

  	
  Section 1.03

  	
   

  	
  Terms Generally

  	
   

  	
  19

  
	
   

  	
  Section 1.04

  	
   

  	
  Accounting Terms; GAAP

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  	
  The Credits

  	
   

  	
  20

  
	
   

  	
  Section 2.01

  	
   

  	
  Commitments

  	
   

  	
  20

  
	
   

  	
  Section 2.02

  	
   

  	
  Loans and Borrowings

  	
   

  	
  20

  
	
   

  	
  Section 2.03

  	
   

  	
  Requests for Borrowings

  	
   

  	
  21

  
	
   

  	
  Section 2.04

  	
   

  	
  [Intentionally omitted]

  	
   

  	
  22

  
	
   

  	
  Section 2.05

  	
   

  	
  Funding of Borrowings

  	
   

  	
  22

  
	
   

  	
  Section 2.06

  	
   

  	
  Interest Elections

  	
   

  	
  23

  
	
   

  	
  Section 2.07

  	
   

  	
  Termination and Reduction of Commitments

  	
   

  	
  24

  
	
   

  	
  Section 2.08

  	
   

  	
  Repayment of Loans; Evidence of Debt

  	
   

  	
  25

  
	
   

  	
  Section 2.09

  	
   

  	
  Prepayment of Loans; Mandatory Reduction of
  Commitments

  	
   

  	
  26

  
	
   

  	
  Section 2.10

  	
   

  	
  Fees

  	
   

  	
  27

  
	
   

  	
  Section 2.11

  	
   

  	
  Interest

  	
   

  	
  27

  
	
   

  	
  Section 2.12

  	
   

  	
  Calculation of Interest and Fees

  	
   

  	
  28

  
	
   

  	
  Section 2.13

  	
   

  	
  Payments Generally; Pro Rata Treatment; Sharing of
  Set-offs

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  	
  Representations and Warranties

  	
   

  	
  30

  
	
   

  	
  Section 3.01

  	
   

  	
  Organization; Powers

  	
   

  	
  30

  
	
   

  	
  Section 3.02

  	
   

  	
  Authorization; Enforceability

  	
   

  	
  30

  
	
   

  	
  Section 3.03

  	
   

  	
  Governmental Approvals; No Conflicts

  	
   

  	
  30

  
	
   

  	
  Section 3.04

  	
   

  	
  Financial Condition; No Material Adverse Change

  	
   

  	
  30

  
	
   

  	
  Section 3.05

  	
   

  	
  Litigation and Environmental Matters

  	
   

  	
  31

  
	
   

  	
  Section 3.06

  	
   

  	
  Investment Company Status

  	
   

  	
  32

  
	
   

  	
  Section 3.07

  	
   

  	
  Taxes

  	
   

  	
  32

  
	
   

  	
  Section 3.08

  	
   

  	
  ERISA

  	
   

  	
  32

  
	
   

  	
  Section 3.09

  	
   

  	
  Disclosure

  	
   

  	
  32

  
	
   

  	
  Section 3.10

  	
   

  	
  Subsidiaries

  	
   

  	
  32

  
	
   

  	
  Section 3.11

  	
   

  	
  Margin Regulations

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  	
  Conditions

  	
   

  	
  33

  
	
   

  	
  Section 4.01

  	
   

  	
  Effective Date

  	
   

  	
  33

  
	
   

  	
  Section 4.02

  	
   

  	
  Each Borrowing

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  	
  Covenants

  	
   

  	
  35

  
	
   

  	
  Section 5.01

  	
   

  	
  Financial Statements and Other Information

  	
   

  	
  35

  
	
   

  	
  Section 5.02

  	
   

  	
  Existence; Conduct of Business

  	
   

  	
  37

  
	
   

  	
  Section 5.03

  	
   

  	
  Maintenance of Properties; Insurance

  	
   

  	
  37

  
										

 

 

	
  

  	
  Section 5.04

  	
   

  	
  Books and Records; Inspection Rights

  	
   

  	
  37

  
	
   

  	
  Section 5.05

  	
   

  	
  Compliance with Laws

  	
   

  	
  38

  
	
   

  	
  Section 5.06

  	
   

  	
  Use of Proceeds

  	
   

  	
  38

  
	
   

  	
  Section 5.07

  	
   

  	
  Liens

  	
   

  	
  38

  
	
   

  	
  Section 5.08

  	
   

  	
  Fundamental Changes

  	
   

  	
  40

  
	
   

  	
  Section 5.09

  	
   

  	
  Financial Covenant

  	
   

  	
  41

  
	
   

  	
  Section 5.10

  	
   

  	
  Limitation on Restrictions on Subsidiary Dividends
  and Other Distributions

  	
   

  	
  41

  
	
   

  	
  Section 5.11

  	
   

  	
  Transactions with Affiliates

  	
   

  	
  43

  
	
   

  	
  Section 5.12

  	
   

  	
  Subsidiary Guarantors

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
   

  	
  Events of Default

  	
   

  	
  45

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
   

  	
  The Administrative Agent

  	
   

  	
  48

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  	
  Guarantee

  	
   

  	
  50

  
	
   

  	
  Section 8.01

  	
   

  	
  The Guarantee

  	
   

  	
  50

  
	
   

  	
  Section 8.02

  	
   

  	
  Guarantee Unconditional

  	
   

  	
  51

  
	
   

  	
  Section 8.03

  	
   

  	
  Discharge Only upon Payment in Full; Reimbursement
  in Certain Circumstances

  	
   

  	
  51

  
	
   

  	
  Section 8.04

  	
   

  	
  Waiver by the Guarantor

  	
   

  	
  52

  
	
   

  	
  Section 8.05

  	
   

  	
  Subrogation

  	
   

  	
  52

  
	
   

  	
  Section 8.06

  	
   

  	
  Stay of Acceleration

  	
   

  	
  52

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
   

  	
  Yield Protection, Illegality and Taxes

  	
   

  	
  52

  
	
   

  	
  Section 9.01

  	
   

  	
  Alternate Rate of Interest

  	
   

  	
  52

  
	
   

  	
  Section 9.02

  	
   

  	
  Illegality

  	
   

  	
  53

  
	
   

  	
  Section 9.03

  	
   

  	
  Increased Costs

  	
   

  	
  53

  
	
   

  	
  Section 9.04

  	
   

  	
  Break Funding Payments

  	
   

  	
  54

  
	
   

  	
  Section 9.05

  	
   

  	
  Taxes

  	
   

  	
  54

  
	
   

  	
  Section 9.06

  	
   

  	
  Matters Applicable to all Requests for Compensation

  	
   

  	
  56

  
	
   

  	
  Section 9.07

  	
   

  	
  Mitigation Obligations

  	
   

  	
  56

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
   

  	
  Miscellaneous

  	
   

  	
  56

  
	
   

  	
  Section 10.01

  	
   

  	
  Notices

  	
   

  	
  56

  
	
   

  	
  Section 10.02

  	
   

  	
  Waivers; Amendments

  	
   

  	
  58

  
	
   

  	
  Section 10.03

  	
   

  	
  Expenses; Indemnity; Damage Waiver

  	
   

  	
  59

  
	
   

  	
  Section 10.04

  	
   

  	
  Successors and Assigns

  	
   

  	
  60

  
	
   

  	
  Section 10.05

  	
   

  	
  Survival

  	
   

  	
  65

  
	
   

  	
  Section 10.06

  	
   

  	
  Counterparts; Integration; Effectiveness

  	
   

  	
  65

  
	
   

  	
  Section 10.07

  	
   

  	
  Severability

  	
   

  	
  65

  
	
   

  	
  Section 10.08

  	
   

  	
  Right of Setoff

  	
   

  	
  66

  
	
   

  	
  Section 10.09

  	
   

  	
  Governing Law; Jurisdiction; Consent to Service of
  Process

  	
   

  	
  66

  
	
   

  	
  Section 10.10

  	
   

  	
  Waiver of Jury Trial

  	
   

  	
  67

  
	
   

  	
  Section 10.11

  	
   

  	
  Waiver of Immunities

  	
   

  	
  67

  
	
   

  	
  Section 10.12

  	
   

  	
  Judgment Currency

  	
   

  	
  68

  
								

 

 2
 

 

	
  

  	
  Section 10.13

  	
   

  	
  Headings

  	
   

  	
  68

  
	
   

  	
  Section 10.14

  	
   

  	
  Confidentiality

  	
   

  	
  68

  
	
   

  	
  Section 10.15

  	
   

  	
  Electronic Communications

  	
   

  	
  69

  
	
   

  	
  Section 10.16

  	
   

  	
  USA PATRIOT Act Notice

  	
   

  	
  71

  

SCHEDULES:

Schedule A - Existing
Indenture Debt

Schedule 1.01 - Pricing Grid

Schedule 2.01 - Commitments

Schedule 5.09 - Cross Guarantees

Schedule 10.01 - Administrative Agent’s Office; Lender Notice Addresses

EXHIBITS:

Exhibit A - Form of Note

Exhibit B - Form of Assignment and Assumption

Exhibit C-1 - Form of opinion of general counsel of Guarantor

Exhibit C-2 - Form of opinion of special Luxembourg counsel

Exhibit C-3 - Form of opinion of special Bermuda counsel

Exhibit C-4 - Form of opinion of special New York counsel

Exhibit D - Form of Borrower Assumption Agreement

Exhibit E - Form of Subsidiary Guaranty

Exhibit F - Form of Borrowing Request

Exhibit G - Form of Guarantor Assumption Agreement

Exhibit H-1 - Form of opinion of special Luxembourg counsel (Borrower
Assumption                                                                                           Agreement)

Exhibit H-2 - Form of opinion of special New York counsel (Borrower Assumption
Agreement)

Exhibit I-1 - Form of opinion of special Bermuda counsel (Guarantor Assumption
Agreement)

Exhibit I-2 - Form of opinion of special New York counsel (Guarantor Assumption
Agreement)

 3

364-DAY SENIOR BRIDGE LOAN AGREEMENT (Healthcare
Businesses) dated as of April 25, 2007 (the “Closing Date”), among TYCO
INTERNATIONAL GROUP S.A., a Luxembourg company (the “Initial Borrower”),
TYCO INTERNATIONAL LTD., a Bermuda company (the “Initial Guarantor”),
COVIDIEN INTERNATIONAL FINANCE S.A., a Luxembourg company (the “H Borrower”),
COVIDIEN LTD., a Bermuda company (the “H Guarantor”), the LENDERS
party hereto, and CITIBANK, N.A., as Administrative Agent.

The parties hereto agree as follows:

ARTICLE I

Definitions

Section 1.01         Defined Terms.  As used in this Agreement, the
following terms have the meanings specified below:

“ABR”, when used in reference to any Loan or
Borrowing, means that such Loan, or the Loans comprising such Borrowing, bear
interest at a rate per annum equal to the Alternate Base Rate.

“Accumulated Other Comprehensive (Loss) Income”
on any date means the amount of “Accumulated Other Comprehensive (Loss) Income”
of the Guarantor and its Subsidiaries as of the end of the most recently completed
fiscal quarter of the Guarantor prior to such date of determination determined
on a consolidated basis in accordance with GAAP.

“Administrative Agent” means Citibank, N.A., in
its capacity as administrative agent for the Lenders under this Agreement and
the other Loan Documents, or any successor administrative agent.

“Administrative Agent’s Office” means the
office address, facsimile number, electronic mail address, telephone number and
account information set forth on Schedule 10.01 with respect to the
Administrative Agent or such other address, facsimile number, electronic mail
address, telephone number or account information as shall be designated by the
Administrative Agent in a notice to the Borrower and the Lenders.

“Affiliate” means, with respect to a specified
Person, another Person that directly, or indirectly through one or more
intermediaries, controls or is controlled by or is under common control with
the Person specified.  For purposes of
this definition, the term “control” (including the terms “controlling”
and “under common control with”) means the possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of a Person, whether through the ability to exercise voting power, by
contract or otherwise.

“Allocated Existing Credit Agreement Debt”
means the portion of the Debt under the Existing Tyco Credit Agreements to be
allocated to the H Borrower in connection with the Separation Transactions, and
which may be repaid with the proceeds of the Loans.

“Allocated Existing Indenture Debt” means the
portion of the Existing Indenture Debt to be allocated to the H Borrower in
connection with the Separation Transactions, and which may be repaid with the
proceeds of the Loans.

“Alternate Base Rate” means, for any day, a
rate per annum equal to the greater of (a) the Base Rate in effect on such day
and (b) the Federal Funds Effective Rate in effect on such day plus 1⁄2 of
1%.  Any change in the Alternate Base Rate
due to a change in the Prime Rate or the Federal Funds Effective Rate shall be
effective from and including the effective date of such change in the Base Rate
or the Federal Funds Effective Rate, respectively.

“Applicable Margin” means, with respect to any
Eurodollar Loan, either (i) at any time during which less than 50% of the
aggregate Commitments are being utilized, the rate per annum set forth on the
Pricing Grid opposite the reference to the applicable Index Debt Rating under
the heading “Applicable Margin” and under the sub-heading “Less than 50% of the
Commitments Utilized”, or (ii) at any time during which 50% or more of the then
applicable aggregate Commitments are being utilized, the rate per annum set
forth on the Pricing Grid opposite the reference to the applicable Index Debt
Rating under the heading “Applicable Margin” and under the sub-heading “50% or
More of the Commitments Utilized”; any change in the Applicable Margin
resulting from an Index Debt Rating Change or an aggregate Commitment
utilization change shall be determined in accordance with Schedule 1.01 and
shall be effective on the date of such Index Debt Rating Change or utilization
change, as the case may be.

“Applicable Percentage” means, with respect to
any Lender, the percentage (rounded to the ninth decimal) of the total
Commitments in effect at any given time represented by such Lender’s
Commitment.  If the Commitments have
terminated or expired, the Applicable Percentages shall be determined based
upon the outstanding principal amounts of the Loans made by the respective
Lenders.

“Approved Fund” has the meaning assigned to
such term in Section 10.04.

“Assignment and Assumption” means an assignment
and assumption entered into by a Lender and an assignee (with the consent of
any party whose consent is required by Section 10.04), and accepted by the
Administrative Agent, in the form of Exhibit B or any other form approved by
the Administrative Agent.

“Availability Period” means the period from and
including the Effective Date to but excluding the earliest of (a) the Maturity
Date, (b) the date of the consummation of the Healthcare Spin Distribution and
(c) the date of any earlier termination of the Commitments.

“Base Rate” means the rate of interest per
annum publicly announced from time to time by Citibank, N.A. as its base rate
or prime rate in effect at its principal office in New York City.

“Board” means the Board of Governors of the
Federal Reserve System of the United States of America.

 2
 

“Borrower” means, until the Borrower Transition
Time, the Initial Borrower, and from and after the Borrower Transition Time,
the H Borrower.

“Borrower Assumption Agreement” means an
assignment and assumption agreement entered into between the Initial Borrower
and the H Borrower substantially in the form of Exhibit D.

“Borrower Assumption Opinions” means a written
opinion (addressed to the Administrative Agent and the Lenders and dated the
date of the Borrower Assumption Agreement) of (i) Allen & Overy, special
Luxembourg counsel of the H Borrower, substantially in the form attached as
Exhibit H-1 and (ii) Gibson, Dunn & Crutcher LLP, special New York counsel
of the H Borrower, substantially in the form attached as Exhibit H-2, in each
case with such changes to such forms as may be approved by the Administrative
Agent.

“Borrower Transition Time” means the time of
the consummation of the TIGSA Separation (provided that the conditions
set forth in Section 5.08(b) shall have been satisfied).

“Borrowing” means Loans of the same Type, made,
converted or continued on the same date and, in the case of Eurodollar Loans,
as to which a single Interest Period is in effect.

“Borrowing Request” means a request by the
Borrower for a Borrowing in accordance with Section 2.03.

“Business Day” means any day that is not a
Saturday, Sunday or other day on which commercial banks in New York City are
authorized or required by law to remain closed; provided that, when used
in connection with a Eurodollar Loan, the term “Business Day” shall also
exclude any day on which banks are not open for dealings in dollar deposits in
the London interbank market.

“Change in Law” means (a) the adoption of any
law, rule or regulation after the date of this Agreement, (b) any change in any
law, rule or regulation or in the interpretation or application thereof by any
Governmental Authority after the date of this Agreement or (c) compliance by
any Lender (or, for purposes of Section 9.03(b), by any lending office of
such Lender or by such Lender’s holding company, if any) with any request,
guideline or directive (whether or not having the force of law) of any
Governmental Authority made or issued after the date of this Agreement.

“Closing Date” means the date of this
Agreement.

“Code” means the Internal Revenue Code of 1986,
as amended from time to time.

“Commitment” means, with respect to each
Lender, the commitment of such Lender to make Loans hereunder, expressed as an
amount representing the maximum aggregate amount of such Lender’s Credit
Exposure hereunder, as such commitment may be (a) reduced from time to time
pursuant to Section 2.07, and (b) reduced or increased from time to time
pursuant to assignments by or to such Lender pursuant to
Section 10.04.  The initial amount
of each Lender’s 

 3
 

Commitment is set forth on Schedule 2.01, or in the
Assignment and Assumption pursuant to which such Lender shall have assumed its
Commitment, as applicable.  The initial
aggregate amount of the Lenders’ Commitments is $3,200,000,000.

“Communications” has the meaning assigned to
such term in Section 10.15.

“Compensation Period” has the meaning assigned
to such term in Section 2.05(b).

“Consolidated” refers to the consolidation of
accounts of the Guarantor and its consolidated Subsidiaries in accordance with
GAAP.

“Consolidated EBITDA” means, for any fiscal
period, Consolidated Net Income for such period plus the following, to the
extent deducted in calculating such Consolidated Net Income:  (a) Consolidated Interest Expense,
(b) income tax expense, (c) depreciation and amortization expense (d) any
extraordinary expenses or losses, (e) losses on sales of assets outside of the
ordinary course of business and losses from discontinued operations, (f) any
losses on the retirement of debt identified in the Consolidated statements of
cash flows and (g) any other nonrecurring or non-cash charges (including
charges incurred with respect to the Transactions), and minus, to the extent
included in calculating such Consolidated Net Income for such period, the sum
of (a) any extraordinary income or gains, (b) gains on the sales of assets
outside of the ordinary course of business and gains from discontinued
operations, (c) any gains on the retirement of debt identified in the
Consolidated statements of cash flows and (d) any other nonrecurring or
non-cash income, all as determined on a Consolidated basis; provided
that in calculating Consolidated EBITDA the effect of the Cross Guarantees
shall be disregarded.  If during such
period the Guarantor or any Subsidiary shall have made an acquisition,
Consolidated EBITDA for such period shall be calculated after giving pro forma effect thereto as if such acquisition occurred on
the first day of such period.

“Consolidated Interest Expense” means, for any
fiscal period (without duplication), (a) the Consolidated interest expense
of the Guarantor and its Consolidated Subsidiaries for such period plus
(b) if a Permitted Securitization Transaction outstanding during such
period is accounted for as a sale of accounts receivable, chattel paper,
general intangibles or the like under GAAP, the additional consolidated
interest expense that would have accrued during such period had such Permitted
Securitization Transaction been accounted for as a borrowing during such
period, determined on a Consolidated basis.

“Consolidated Net Income” means, for any fiscal
period, the Consolidated net income of the Guarantor for such period.  For purposes of calculating Consolidated Net
Income (and Consolidated EBITDA) for any period (or portion thereof) ending on
or prior to the Healthcare Spin Distribution, Consolidated Net Income (and
Consolidated EBITDA) shall be determined based on the combined financial
statements as described in Section 3.04(a)(ii) and Section 5.01(b)(ii).

“Consolidated Tangible Assets” means, at any
time, the total assets less all Intangible Assets appearing on the Consolidated
balance sheet of the Guarantor as of the end of the most recently concluded
fiscal quarter of the Guarantor.

 4
 

“Consolidated Total Debt” means, as of any date
of determination, the aggregate amount of Debt of the Guarantor determined on a
Consolidated basis, as of such date; provided that Guarantees shall be
valued at the amount thereof, if any, reflected on the consolidated balance
sheet of the Guarantor; provided, further that prior to the
Healthcare Spin Distribution, Consolidated Total Debt shall only include Debt
that would be reflected on the combined balance sheet as described in Section
3.04(a)(ii) and Section 5.01(b)(ii);  provided
that if a Permitted Securitization Transaction is outstanding at such date and
is accounted for as a sale of accounts receivable, chattel paper, general
intangibles, or the like, under GAAP, Consolidated Total Debt determined as
aforesaid shall be adjusted to include the additional Debt, determined on a
consolidated basis as of such date, which would have been outstanding at such
date had such Permitted Securitization Transaction been accounted for as a
borrowing at such date; provided, further, that
Consolidated Total Debt shall not include Debt of a joint venture, partnership
or similar entity which is Guaranteed by the Guarantor or a Consolidated
Subsidiary by virtue of the joint venture, partnership or similar arrangement
with respect to such entity or by operation of applicable law (and not
otherwise) except to the extent that the aggregate outstanding principal amount
of such excluded Debt at such date exceeds $50,000,000; and provided, further,
that Consolidated Total Debt shall not include Cross Guarantees.

“Credit Agreement” means the Five-Year Senior
Credit Agreement (Healthcare Businesses) dated as of the date of this Agreement
among the H Borrower, the Initial Guarantor, the H Guarantor, the lenders party
thereto, and Citibank, N.A., as Administrative Agent.

“Credit Agreement (Electronics)” means the
Five-Year Senior Credit Agreement (Electronics Businesses) dated as of the date
of this Agreement among the E Borrower, the Initial Guarantor, the E Guarantor,
the lenders party thereto, and Bank of America, N.A., as Administrative Agent.

“Credit Agreement (Topaz)” means the Five-Year
Senior Credit Agreement (Fire & Safety and Engineered Products Businesses)
dated as of the date of this Agreement among the T Borrower, the Initial
Guarantor, the lenders party thereto, and Citibank, N.A., as Administrative
Agent.

“Credit Exposure” means, with respect to any
Lender at any time the outstanding principal amount of such Lender’s Loans at
such time.

“Cross Guarantees” means the Guarantees by the
Guarantor or its Subsidiaries of obligations of the T Borrower or the E
Borrower or their respective subsidiaries that are listed on Schedule 5.09, to
the extent that the direct obligor with respect to the obligations covered by
such Guarantee guarantees or is otherwise obligated to the payments of such
guaranteed obligations for the benefit of the Guarantor or such Subsidiary.

“Debt” of any Person means, at any date,
without duplication, (a) the principal of all obligations of such Person for
borrowed money; (b) the principal of all obligations of such Person evidenced
by bonds, debentures, notes or similar instruments; (c) all obligations of such
Person in respect of the deferred purchase price of property or services
recorded on the books of such Person (except for (i) trade and similar
accounts payable and accrued expenses, 

 5
 

(ii) employee compensation, deferred compensation
and pension obligations, and other obligations arising from employee benefit
programs and agreements or other similar employment arrangements,
(iii) obligations in respect of customer advances received and
(iv) obligations in connection with earnout and holdback agreements, in
each case in the ordinary course of business); (d) any obligation of such
Person to reimburse the issuer of any letter of credit, performance bond,
performance guaranty or bank guaranty issued for the account of such Person
upon which, and only to the extent that, a drawing has been made (or such
reimbursement obligation is otherwise not contingent) and such non-contingent
obligation is not reimbursed within five Business Days; (e) the net capitalized
amount of all obligations of such person as lessee which are capitalized on the
books of such Person in accordance with GAAP; (f) all Debt of others secured by
any Lien on property of such Person, whether or not the Debt secured thereby
has been assumed, but only to the extent of the lesser of the face amount of
the obligation or the fair market value of the assets so subject to the Lien;
and (g) all Guarantees by such Person of Debt of others (except the Guarantor
or any Subsidiary); provided that the term “Debt” shall not
include:

(A)          Intercompany Debt (except that, for
the purposes of Sections 5.10 and 5.11, Debt shall include Intercompany Debt);
or

(B)           obligations in respect of trade
letters of credit or bank guaranties supporting trade and similar accounts
payable arising in the ordinary course of business, or

(C)           Nonrecourse Debt.

“Default” means any event or condition which
constitutes an Event of Default or which upon notice, lapse of time or both
would, unless cured or waived, become an Event of Default.

“Designated Officer” means the chief executive
officer, president, chief financial officer or treasurer of Tyco Healthcare
Group LP.

“dollars” or “$” refers to lawful money
of the United States of America.

“E Borrower” means Tyco Electronics Group S.A.,
a Luxembourg company.

“E Guarantor” means Tyco Electronics Ltd., a
Bermuda company.

“Effective Date” means the date on which the
conditions specified in Section 4.01, and the conditions specified in
Section 4.02 with respect to the initial Loans to be made under this Agreement,
are satisfied or waived.

“Electronics Spin Distribution” has the meaning
set forth in the definition of “Separation Transactions”.

“Environmental Laws” means all laws, rules,
regulations, codes, ordinances, orders, decrees, judgments, injunctions,
notices or binding agreements issued, promulgated or entered 

 6
 

into by any Governmental Authority, relating in any
way to the environment, health, safety or Hazardous Materials.

“Environmental Liability” means any liability,
contingent or otherwise (including any liability for damages, costs of
environmental remediation, fines, penalties or indemnities), of the Guarantor
or any Subsidiary directly or indirectly resulting from or based upon (a)
violation of any Environmental Law, (b) the generation, use, handling,
transportation, storage, treatment or disposal of any Hazardous Materials, (c)
exposure to any Hazardous Materials, (d) the release or threatened release of
any Hazardous Materials into the environment or (e) any contract, agreement or
other consensual arrangement pursuant to which liability is assumed or imposed
with respect to any of the foregoing.

“ERISA” means the Employee Retirement Income
Security Act of 1974, as amended from time to time.

“ERISA Affiliate” means any Person, trade or
business (whether or not incorporated) that, together with the Borrower, is
treated as a single employer under Section 414(b), (c), (m) or (o) of the
Code or Section 4001(b)(3) of ERISA.

“ERISA Event” means (a) any “reportable
event”, as defined in Section 4043 of ERISA or the regulations issued
thereunder with respect to a Plan; (b) the existence with respect to any Plan
of an “accumulated funding deficiency” (as defined in Section 412
of the Code or Section 302 of ERISA), whether or not waived; (c) the
filing pursuant to Section 412(d) of the Code or Section 303(d) of
ERISA of an application for a waiver of the minimum funding standard with
respect to any Plan; (d) the incurrence by the Guarantor or any of its ERISA
Affiliates of any liability under Title IV of ERISA (other than payment of PBGC
premiums) with respect to the termination of any Plan; (e) the receipt by the
Guarantor or any ERISA Affiliate from the PBGC or a plan administrator of any
notice relating to the PBGC’s intention to terminate any Plan or Plans or to
appoint a trustee to administer any Plan; (f) the incurrence by the Borrower or
any of its ERISA Affiliates of any liability with respect to the withdrawal or
partial withdrawal from any Plan or Multiemployer Plan; (g) the receipt by the
Guarantor or any ERISA Affiliate of any notice, or the receipt by any
Multiemployer Plan from the Guarantor or any ERISA Affiliate of any notice,
concerning the imposition of Withdrawal Liability or a determination that a
Multiemployer Plan is, or is expected to be, insolvent or in reorganization,
within the meaning of Title IV of ERISA; or (h) the failure to timely make any
required contribution or premium payment in respect of any Plan or contribution
in respect of any Multiemployer Plan.

“Eurodollar Reserve Percentage” in respect of
any Lender and for any day during any Interest Period, the reserve percentage
(expressed as a decimal) in effect on such day and applicable to such Lender
under Regulation D promulgated by the Board of Governors of the Federal Reserve
System for determining such Lender’s reserve requirement (including any
emergency, supplemental or other marginal reserve requirement) with respect to “Eurocurrency
liabilities”, as in effect from time to time (“FRB Regulation D”).

 7
 

“Eurodollar”, when used in reference to any
Loan or Borrowing, means that such Loan, or the Loans comprising such
Borrowing, bear interest at a rate per annum equal to the applicable LIBO Rate
plus the Applicable Margin.

“Event of Default” has the meaning assigned to
such term in Article VI.

“Excluded Taxes” means, with respect to the
Administrative Agent, any Lender or any other recipient of any payment to be
made by or on account of any obligation of any Obligor hereunder, (a) income or
franchise taxes imposed on (or measured by) its net income (other than Taxes
withheld at the source) by the United States of America, or by the jurisdiction
under the laws of which such recipient is organized or in which its principal
office is located or, in the case of any Lender, in which its applicable
lending office is located, (b) any branch profits taxes imposed by the United
States of America or any similar tax imposed by any other jurisdiction in which
the Borrower is located and (c) in the case of a Foreign Lender (other than an
assignee pursuant to a request by the Borrower under Section 10.04(e)),
any United States withholding tax that is imposed on amounts payable to such
Foreign Lender at the time such Foreign Lender becomes a party to this
Agreement (or designates a new lending office) or is attributable to such
Foreign Lender’s failure to comply with Section 9.05(e) (except to the
extent such failure is attributable to a Change in Law, except to the extent
that such Foreign Lender (or its assignor, if any) was entitled, at the time of
designation of a new lending office (or assignment), to receive additional
amounts from either Obligor with respect to such withholding tax pursuant to
Section 9.05(a).

“Existing Indenture Covered Default” means any
default or event of default under any of the indentures or notes evidencing the
Existing Indenture Debt (i) that results solely from the Separation
Transactions and (ii) for which borrowings would be available (and at the time
continue to be available) under this Agreement or the Other Bridge Loan
Agreements to pay in full (a) such Existing Indenture Debt if such Existing
Indenture Debt were accelerated as a result of such default and (b) any other
Existing Indenture Debt which could be accelerated as a result of such default.

“Existing Indenture Debt” means the Debt of the
Initial Borrower, the Initial Guarantor and Subsidiaries of the Initial
Borrower, which Debt is outstanding on the date of this Agreement and is more
particularly described on Schedule A, which, among other things, sets forth the
aggregate amount of each series or tranche of such Debt.

“Existing Tyco Credit Agreements” means each of
(i) the $1,500,000,000 Three-Year Credit Agreement dated as of
December 22, 2003, as amended, among the Initial Borrower, the T
Guarantor, Bank of America, N.A., as paying agent, and the other lenders party
thereto, and (ii) the $1,000,000,000 Five-Year Credit Agreement dated as
of December 16, 2004, as amended, among the Initial Borrower, the T
Guarantor, Bank of America, N.A., as paying agent, and the other lenders party thereto.

“Facility Fee” has the meaning assigned to such
term in Section 2.10(a).

 8
 

“Federal Funds Effective Rate” means, for any
day, the weighted average of the rates on overnight Federal funds transactions
with members of the Federal Reserve System arranged by Federal funds brokers,
as published on the next succeeding Business Day by the Federal Reserve Bank of
New York, or, if such rate is not so published for any day that is a Business
Day, the average of the quotations for such day for such transactions received
by the Administrative Agent from three Federal funds brokers of recognized
standing selected by it.

“Fee Letters” means each of (i) the letter
dated December 20, 2006 between the Initial Borrower (or, on and after
assignment of such letter in connection with the TIGSA Separation, the H
Borrower) and the Administrative Agent and (ii) the letter dated
December 20, 2006 between the Initial Borrower (or, on and after
assignment of such letter in connection with the TIGSA Separation, the H Borrower)
and the Global Coordinators.

“Fitch” means Fitch Investor’s Service, Inc.

“Fitch Rating” means, at any time, the rating
published by Fitch of the Borrower’s Index Debt.

“Foreign Lender” means any Lender that is
organized under the laws of a jurisdiction other than the United States of
America, any State thereof or the District of Columbia.

“Form-10s” means (i) the Form 10 filed by the H
Guarantor with the SEC on January 18, 2007, as amended by the amendment thereto
filed with the SEC on April 20, 2007 and (ii) the Form 10 filed by the E
Guarantor with the SEC on January 18, 2007, as amended by the amendment thereto
filed with the SEC on April 20, 2007.

“Funded Debt” means any Debt described in
clause (a) or (b) of the definition of Debt (for the avoidance of doubt not
including items carved out of the definition of Debt pursuant to the proviso to
such definition).

“GAAP” means generally accepted accounting
principles as in effect from time to time in the United States of America.

“Global Coordinators” means Citigroup Global
Markets Inc. and Banc of America Securities LLC in their respective capacities
as global coordinators.

“Governmental Authority” means the government
of the United States of America or any political subdivision thereof, any other
nation or any political subdivision thereof, whether state or local, and any
agency, authority, instrumentality, regulatory body, court, central bank or
other entity exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government (including
any supra-national bodies such as the European Union or the European Central
Bank).

“Granting Lender” has
the meaning assigned to such term in Section 10.04(g).

“Guarantee” of or by any Person (the “guarantor”)
means any obligation, contingent or otherwise, of the guarantor guaranteeing or
having the economic effect of guaranteeing any Debt 

 9
 

or other obligation of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly, and including any
obligation of the guarantor, direct or indirect, (a) to purchase or pay (or
advance or supply funds for the purchase or payment of) such Debt or other
obligation or to purchase (or to advance or supply funds for the purchase of)
any security for the payment thereof, (b) to purchase or lease property,
securities or services for the purpose of assuring the owner of such Debt or
other obligation of the payment thereof, (c) to maintain working capital,
equity capital or any other financial statement condition or liquidity of the
primary obligor so as to enable the primary obligor to pay such Debt or other
obligation or (d) as an account party in respect of any letter of credit or
letter of guaranty issued to support such Debt or obligation; provided,
that the term Guarantee shall not include endorsements for collection or
deposit in the ordinary course of business.

“Guarantor” means, until the Guarantor
Transition Time, the Initial Guarantor, and from and after the Guarantor
Transition Time, the H Guarantor.

“Guarantor Assumption Agreement” means an
assignment and assumption agreement entered into between the Initial Guarantor
and the H Guarantor substantially in the form of Exhibit G.

“Guarantor Assumption Opinions” means a written
opinion (addressed to the Administrative Agent and the Lenders and dated the
date of the Guarantor Assumption Agreement) of (i) Appleby Hunter Bailhache,
special Bermudian counsel of the H Guarantor, substantially in the form
attached as Exhibit I-1 and (ii) Gibson, Dunn & Crutcher LLP, special New
York counsel of the H Guarantor, substantially in the form attached as Exhibit
I-2, in each case with such changes to such forms as may be approved by the
Administrative Agent.

“Guarantor Transition Time” means the time of
the consummation of the Healthcare Spin Distribution (provided that the
conditions set forth in Section 5.08(c) shall have been satisfied).

“H Borrower” has the meaning set forth in the
preamble hereto.

“H Guarantor” has the meaning set forth in the
preamble hereto.

“H SARL” means Tyco Group S.á r.l., a
Luxembourg company.

“H Subsidiary” means, until the Borrower
Transition Time, H SARL and any Subsidiary that is a subsidiary of H SARL, and
from and after the Borrower Transition Time, any subsidiary of the H Borrower.

“Hazardous Materials” means all explosive or
radioactive substances or wastes and all hazardous or toxic substances, wastes
or other pollutants, including petroleum or petroleum distillates, asbestos or
asbestos containing materials, polychlorinated biphenyls, radon gas, infectious
or medical wastes.

“Healthcare Registration Statement” has the
meaning set forth in Section 3.04(a).

 

 10

“Healthcare Spin Distribution” has the meaning
set forth in the definition of “Separation Transactions”.

“Indemnified Taxes” means Taxes other than
Excluded Taxes.

“Index Debt” means senior, unsecured, long-term
indebtedness for borrowed money of the Borrower that is not guaranteed by any
other Person other than the Guarantor or subject to any other credit
enhancement.

“Index Debt Rating” means the S&P Rating,
the Moody’s Rating and the Fitch Rating.

“Index Debt Rating Change” means a change in
the S&P Rating, the Moody’s Rating or the Fitch Rating that results in a
change from one Index Debt Rating category to another on the Pricing Grid in
accordance with the provisions of Schedule 1.01, each Index Debt Rating Change
to be deemed to take effect on the date on which the relevant change in rating
is first publicly announced by S&P, Moody’s or Fitch, as the case may be.

“Initial Borrower” has the meaning set forth in
the preamble hereto.

“Initial Guarantor” has the meaning set forth
in the preamble hereto.

“Intangible Assets” means, at any date, the
amount (if any) stated under the heading “Goodwill and Other Intangible assets,
net” or under any other heading relating to intangible assets separately
listed, in each case, on the face of a balance sheet of the Guarantor prepared
on a Consolidated basis as of such date.

“Intercompany Debt” means (i) indebtedness
of the Guarantor owed to a Subsidiary and (ii) indebtedness of a
Subsidiary owed to the Guarantor or another Subsidiary.

“Interest Election Request” means a request by
the Borrower to convert or continue a Borrowing in accordance with
Section 2.06.

“Interest Payment Date” means (a) with respect
to any ABR Loan, the last Business Day of each March, June, September and
December and (b) with respect to any Eurodollar Loan, the last day of the
Interest Period applicable to the Borrowing of which such Loan is a part; provided
that, if an Interest Period for a Eurodollar Borrowing is of more than three
months’ duration, each day within such Interest Period that occurs at intervals
of three months’ duration after the first day of such Interest Period shall
also be an Interest Payment Date.

“Interest Period” means with respect to any
Eurodollar Borrowing, the period commencing on the date of such Borrowing and
ending on the date that is one, two, three or six months thereafter, as the
Borrower may elect, upon notice received by the Administrative Agent not later
than 11:00 a.m. (New York City time) on the third Business Day prior to the
first day of such Interest Period, or such other period as requested by the
Borrower and agreed to by all the Lenders in accordance with Section 2.03(b); provided,
that

 11
 

(i)          if any Interest
Period would end on a day other than a Business Day, such Interest Period shall
be extended to the next succeeding Business Day unless such next succeeding
Business Day would fall in the next calendar month, in which case such Interest
Period shall end on the next preceding Business Day;

(ii)         any Interest Period
of one or more whole months that commences on the last Business Day of a
calendar month (or on a day for which there is no numerically corresponding day
in the last calendar month of such Interest Period) shall end on the last
Business Day of the last calendar month of such Interest Period; and

(iii)        the Borrower may not
select any Interest Period that may end after the Maturity Date.

For purposes hereof, the date of a Borrowing initially shall be the
date on which such Borrowing is made and thereafter shall be the effective date
of the most recent conversion or continuation of such Borrowing.

“Lenders” means the Persons listed on
Schedule 2.01 and any other Person that shall have become a party hereto
pursuant to an Assignment and Assumption, other than any such Person that
ceases to be a party hereto pursuant to an Assignment and Assumption.

“LIBO Rate”
means, with respect to any Eurodollar Borrowing for any Interest Period, the
British Bankers Association London Interbank Offered Rate (“BBA LIBOR”),
as it is published by Reuters or any successor to or substitute for such
service, providing rate quotations of BBA LIBOR, as determined by the
Administrative Agent from time to time for purposes of providing quotations of
interest rates applicable to dollar deposits in the London interbank market) at
approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period, as the rate for dollar deposits with a
maturity comparable to such Interest Period. 
In the event that such rate is not available at such time for any
reason, then the “LIBO Rate” with respect to such Eurodollar Borrowing
for such Interest Period shall be the rate at which dollar deposits of
$10,000,000 and for a maturity comparable to such Interest Period are offered
by the principal London office of the Administrative Agent in immediately
available funds in the London interbank market at approximately 11:00 a.m.,
London time, two Business Days prior to the commencement of such Interest
Period.

“Lien” means, with respect to any asset, any
mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or
security interest in, on or of such asset, including the interest of a vendor
or a lessor under any conditional sale agreement, capital lease or title
retention agreement.

“Loan Documents” means this Agreement, each
Note (if any), the Borrower Assumption Agreement, the Guarantor Assumption
Agreement, the Fee Letters and each Subsidiary Guaranty (if any).

“Loans” means the loans made by the Lenders to
the Borrower pursuant to this Agreement.

 12
 

“Material Adverse Effect” means a material
adverse effect on (a) the Consolidated financial condition, business or
operations of the Guarantor and its Subsidiaries taken as a whole, (b) the
ability of the Obligors to perform their obligations under the Loan Documents
or (c) the rights and remedies of the Administrative Agent and the Lenders
under the Loan Documents.

“Material Debt” means Debt (other than Loans or
other Debt under this Agreement) of any one or more of the Guarantor and its
Subsidiaries in an aggregate principal amount exceeding $50,000,000.

“Maturity Date” means the earliest to occur of
(i) April 23, 2008, (ii) the date of any voluntary termination or
reduction of commitments under (x) the Credit Agreement or (y) any of the Other
Credit Agreements, if (in the case of this clause (y)) such date is prior to
the Guarantor Transition Time (provided that the Credit Agreement
(Electronics) shall cease to be considered in this clause (ii)(y) after
the Electronics Spin Distribution), or (iii) the date of any voluntary
prepayment of any non-revolving Debt of the Guarantor or any Subsidiary (other
than the Existing Indenture Debt) in an aggregate outstanding principal amount
exceeding $100,000,000; provided
that if such day is not a Business Day, the Maturity Date shall be the next
succeeding Business Day (excluding any day on which banks are not open for
dealings in dollar deposits in the London interbank market); and provided  further
that any transaction solely among the Guarantor and its Subsidiaries or solely
among Subsidiaries shall be disregarded for purposes of clause (iii)
above.

“Moody’s” means Moody’s Investors Service, Inc.
and any successor to its business of rating debt securities.

“Moody’s Rating” means, at any time, the rating
published by Moody’s of the Borrower’s Index Debt.

“Multiemployer Plan” means a multiemployer plan
as defined in Section 4001(a)(3) of ERISA.

“Net Cash
Proceeds” means, with respect to any Reduction Event, (a) the
cash proceeds received in respect thereof (including any cash received in
respect of any non-cash proceeds, but only when and as received), in each case
net of (b) the sum of (i) all reasonable fees and out-of-pocket expenses
paid or payable by the Guarantor and its Subsidiaries to third parties (other
than Affiliates) in connection with such Reduction Event, and (ii) the amount
of all taxes paid (or reasonably estimated to be payable) by the Guarantor and
its Subsidiaries that are directly attributable to such Reduction Event (as
determined reasonably and in good faith by the Guarantor); provided that
with respect to any Reduction Event under clause (b) of the definition of “Reduction Event” occurring as a result
of the incurrence of Funded Debt by the Initial Guarantor prior to the
consummation of the Healthcare Spin Distribution or the Initial Borrower prior
to the consummation of the TIGSA Separation, the “Net Cash Proceeds” thereof shall be deemed to be an amount equal
to the net amount described above multiplied by a fraction, the numerator of
which is the aggregate Commitments hereunder (whether used or 

 13
 

unused) and the denominator of which is the sum of the
aggregate Commitments hereunder (whether used or unused) and the aggregate “Commitments” under each of the Other
Bridge Loan Agreements (whether used or unused).

“Nonrecourse Debt” means, at any time, all Debt
of Subsidiaries (and all other Persons which are consolidated on the Guarantor’s
financial statements in accordance with GAAP (such Subsidiaries or other
Persons a “Consolidated Person”)) of the Guarantor outstanding at such
time incurred on terms that recourse may be had to such Consolidated Person
only by enforcing the lender’s default remedies with respect to specific assets
which constitute collateral security for such Debt and not by way of action
against such Consolidated Person (nor against the Guarantor or such other
Consolidated Person of the Guarantor) as a general obligor in respect of such
Debt (subject to, for the avoidance of doubt, customary exceptions contained in
non-recourse financings to the non-recourse nature of the obligations
thereunder).

“Note” means a promissory note substantially in
the form of Exhibit A made by the Borrower in favor of a Lender evidencing
Loans made by such Lender, to the extent requested by such Lender pursuant to
Section 2.08(e).

“Obligors” means the Borrower and the
Guarantor.

“Other Bridge Loan Agreements” means (a) the
364-Day Senior Bridge Loan Agreement (Electronics Businesses) dated as of the
date of this Agreement among the Initial Borrower, the E Borrower, the Initial
Guarantor, the E Guarantor, the lenders party thereto, and Bank of America,
N.A., as Administrative Agent and (b) the 364-Day Senior Bridge Loan Agreement
(Fire & Safety and Engineered Products Businesses) dated as of the date of
this Agreement among the Initial Borrower, the T Borrower, the Initial
Guarantor, the lenders party thereto, and Citibank, N.A., as Administrative
Agent.

“Other Credit Agreements” means the Credit
Agreement (Electronics) and the Credit Agreement (Topaz).

“Other Taxes” means any and all present or
future, stamp or documentary taxes or any other excise or property taxes,
charges or similar levies (together with any addition to tax, penalty, fine or
interest thereon) arising from any payment made under any Loan Document or from
the execution, delivery or enforcement of, or otherwise with respect to, any
Loan Document.

“Participant” has the meaning assigned to such
term in Section 10.04.

“PBGC” means the Pension Benefit Guaranty
Corporation referred to and defined in ERISA and any successor entity
performing similar functions.

“Permitted Acquired Debt” means Debt of a
Person that exists at the time such Person becomes a Subsidiary or at the time
the Guarantor or a Subsidiary acquires all or substantially all of the assets
of such Person if such Debt is assumed by the Guarantor or such Subsidiary and
was not created in contemplation of any such event (“Acquired Debt”) and
any Refinancing thereof; 

 14
 

provided
if such Acquired Debt is Refinanced, it shall constitute Permitted Acquired
Debt only if the Borrower is the obligor thereunder.

“Permitted
Securitization Transaction”  means any sale
or sales of any accounts receivable, general intangibles, chattel paper or
other financial assets and related rights and assets of the Guarantor and/or
any of its Subsidiaries, and financing secured by the assets so sold, pursuant
to which the Guarantor and its Subsidiaries realize aggregate net proceeds of
not more than $250,000,000, including, without limitation, any revolving
purchase(s) of such assets where the maximum aggregate uncollected purchase
price (exclusive of any deferred purchase price) therefor does not exceed
$250,000,000.

“Person” means any natural person, corporation,
limited liability company, trust, joint venture, association, company,
partnership, Governmental Authority or other entity.

“Plan” means any employee pension benefit plan
(other than a Multiemployer Plan) subject to the provisions of Title IV of
ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect
of which the Borrower or any ERISA Affiliate is (or, if such plan were
terminated, would under Section 4069 of ERISA be deemed to be) an “employer”
as defined in Section 3(5) of ERISA.

“Platform” has the meaning assigned to such
term in Section 10.15.

“Preferred Stock” means any preferred and/or
redeemable capital stock of the Guarantor or any Subsidiary, as the case may
be, that, by its terms (or by the terms of any security into which it is
convertible or for which it is exchangeable at the option of the holder
thereof), or upon the happening of any event, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable
at the option of the holder, in whole or in part, on or prior to the Maturity
Date.

“Pricing Grid” means the Pricing Grid and the
conventions for determining pricing as set forth on Schedule 1.01.

“Reduction Event” means any of the following:

(a)           except
as issued pursuant to the Separation Transactions, any issuance by the
Guarantor, the Borrower or any H Subsidiary on or after the date of this
Agreement of any equity securities (including equity-linked or hybrid
securities); or

(b)           any
incurrence by the Guarantor, the Borrower or any H Subsidiary on or after the
date of this Agreement of any Funded Debt, including without limitation
pursuant to a public offering, private placement or a syndicated bank
financing, except

(A)          Debt incurred under this Agreement and
the Other Bridge Loan Agreements or assigned to the H Borrower pursuant to the
Separation Transactions;

(B)           so long as the proceeds of any of the
following are not used to Refinance or repay any portion of the Allocated
Existing Indenture Debt, Debt incurred under (x) 

 15
 

the Credit Agreement at
any time and (y) the Other Credit Agreements, if (in the case of this clause
(y)) such incurrence occurs before the Guarantor Transition Time (provided
that the Credit Agreement (Electronics) shall cease to be considered in this
clause (B)(y) after the Electronics Spin Distribution), or Refinancings of
any of the foregoing;

(C)           Debt incurred in the ordinary course
of business under bilateral lines of credit available to the Guarantor, the
Borrower or any H Subsidiary on the Effective Date, or Refinancings thereof, or
otherwise incurred in the ordinary course of business;

(D)          commercial paper issued in the
ordinary course of business;

(E)           Debt, in the case of this clause (E)
up to an aggregate principal amount of $200,000,000, incurred to finance
acquisitions by the H Guarantor, the H Borrower or any H Subsidiary of all or
substantially all the assets of a Person, a division or line of business of a
Person, or the capital stock, partnership interests or limited liability
company interests of a Person, or Refinancings of any of the foregoing, so long
as (x) such Refinancing does not result in the amount of Debt described in this
clause (E) exceeding an aggregate principal amount of $200,000,000 (plus an
additional amount to cover any accrued interest on the Debt being Refinanced
and any prepayment penalties or premiums and customary fees and expenses
incurred in connection with such Refinancing) and (y) the Borrower is the
obligor under such Refinanced Debt; and

(F)           Refinancings of other Debt
outstanding on the Effective Date (other than Refinancings of any portion of
the Allocated Existing Indenture Debt, including issuances of Funded Debt for
which the proceeds are held for the purpose of Refinancing Allocated Existing
Indenture Debt).

“Refinancing” means, with respect to any
financing, any instrument or agreement amending, restating, supplementing,
extending, renewing, refunding, refinancing, replacing or otherwise modifying,
in whole or in part, the documents governing such financing (and “Refinance”
shall have a correlative meaning).

“Register” has the meaning assigned to such
term in Section 10.04.

“Related Parties” means, with respect to any
specified Person, such Person’s Affiliates and the respective directors,
officers, employees, agents and advisors of such Person and such Person’s
Affiliates.

“Reportable Action” means any action, suit or
proceeding or investigation before any court, arbitrator or other governmental
body against the Guarantor or any of its Subsidiaries or any ERISA Event, in
each case in which there is a reasonable possibility of an adverse
determination that could reasonably be expected to have a Material Adverse
Effect.

“Repurchase Documentation” means the offering
circulars for the tender offers and consent solicitations circulars commenced
prior to the Effective Date for the repurchase of 

 16
 

Allocated Existing Indenture Debt and, to the extent
not so repurchased, the modification of the documentation evidencing Allocated
Existing Indenture Debt.

“Required Lenders” means, at any time, Lenders
(not including the Borrower or any of its Affiliates) having aggregate
Applicable Percentages in excess of 50% at such time.

“Responsible Officer” means any of the
following:  (i) the Chief Executive
Officer, President, Vice President and Chief Financial Officer, Treasurer or
Secretary of the Guarantor or (ii) the Chief Executive Officer, President,
Vice President and Chief Financial Officer, Treasurer or Secretary of the
Borrower or a Managing Director of the Borrower.

“S&P” means Standard & Poor’s Ratings
Services, a division of The McGraw-Hill Companies, Inc. and any successor to
its business of rating debt securities.

“S&P Rating” means, at any time, the rating
published by S&P of the Borrower’s Index Debt.

“SEC” means the Securities and Exchange
Commission, or any Governmental Authority succeeding to any of its principal
functions.

“Separation Pro Formas” has the meaning
assigned to such term in Section 3.04(a).

“Separation Transactions” means the series of
transactions pursuant to which the assets, liabilities and businesses owned,
directly or indirectly, by the Initial Guarantor and the Initial Borrower are
being allocated among the T Guarantor and its Subsidiaries (including the
T Borrower), the E Guarantor and its Subsidiaries (including the
E Borrower) and the H Guarantor and its Subsidiaries (including the
H Borrower).  The steps of the
Separation Transactions will include, among others, (i) the contribution of the
assets, liabilities and businesses of the Initial Borrower to the H Borrower
(in the case of the healthcare businesses of the Initial Borrower and assets
and liabilities relating thereto), the E Borrower (in the case of the
electronics businesses of the Initial Borrower and assets and liabilities
relating thereto) and the T Borrower (in the case of the fire & security
and engineered products businesses of the Initial Borrower and assets and
liabilities relating thereto) (such transactions, the “TIGSA Separation”),
and the liquidation of the Initial Borrower and liquidating distribution in
connection therewith of the shares of the H Guarantor, the E Guarantor and the
T Borrower to the Initial Guarantor; and (ii) after the TIGSA Separation, the
distributions by the Initial Guarantor to its shareholders of the shares of (x)
the H Guarantor (the “Healthcare Spin Distribution”) and the E Guarantor
(the “Electronics Spin Distribution”; and together with the Healthcare
Spin Distribution, the “Spin Distributions”), with the Initial Guarantor
to remain the direct parent of the T Borrower.

“Significant Subsidiary” means, at any date,
any Subsidiary which, including its subsidiaries, meets any of the following
conditions:

(i)          the proportionate
share attributable to such Subsidiary of the total assets of the Guarantor
(after intercompany eliminations) exceeds 15% of the total assets of the 

 17
 

Guarantor,
determined on a Consolidated basis as of the end of the most recently completed
fiscal year; or

(ii)         the Guarantor’s and
its Subsidiaries’ equity in the income of such Subsidiary from continuing
operations before income taxes, extraordinary items and cumulative effect of a
change in accounting principles exceeds 15% of Consolidated income of the
Guarantor from continuing operations before income taxes, any loss on the
retirement of debt, extraordinary items, cumulative effect of a change in
accounting principles, and before any impairment charges, determined for the
most recently completed fiscal year.

For the avoidance of doubt, the Borrower shall at all times be deemed a
“Significant Subsidiary”.

“SPC” has the meaning
assigned to such term in Section 10.04(g).

“Special Repayment”
means a redemption or other repayment of Allocated Existing Indenture Debt
other than pursuant to the closing of a tender offer.

“Spin Distributions” has the meaning set forth
in the definition of “Separation Transactions”.

“Spin-off Agreements” means (a) the Separation
and Distribution Agreement to be entered into among the T Guarantor, the H
Guarantor and the E Guarantor and (b) the Tax Sharing Agreement to be entered
into among the T Guarantor, the H Guarantor and the E Guarantor, of which final
forms shall be publicly filed with the SEC.

“Stock” means, with respect to any Person, any
capital stock or equity securities of or other ownership interests in such
Person.

“Stock Equivalents” means, with respect to any
Person, options, warrants, calls or other rights entered into or issued by such
Person to acquire any Stock of, or securities convertible into or exchangeable
for Stock of, such Person.

“subsidiary” of a Person means a corporation,
partnership, joint venture, limited liability company or other entity of which
a majority of the shares of securities or other interests having ordinary
voting power for the election of directors or other governing body (other than
securities or interests having such power only by reason of the happening of a
contingency) are at the time beneficially owned, or the management of which is
otherwise controlled, directly, or indirectly through one or more
intermediaries, or both, by such Person.

“Subsidiary” means any subsidiary of the
Guarantor.

“Subsidiary Guarantor” means each Subsidiary
that has executed a Subsidiary Guaranty pursuant to Section 5.12.

“Subsidiary Guaranty” means a guaranty entered
into by a Subsidiary in substantially the form of Exhibit E, with any such
modifications to such form as may be necessary or advisable 

 18
 

and customary under the local law of the jurisdiction
of organization of the relevant Subsidiary, in the judgment of the Obligors.

“T Borrower” means Tyco International Finance
S.A., a Luxembourg company.

“T Guarantor” means the Initial Guarantor.

“Taxes” means any and all present or future
taxes, levies, imposts, duties, deductions, charges or withholdings imposed or
asserted by any Governmental Authority, together with any addition to tax,
penalty, fine or interest thereon.

“TIGSA Separation” has the meaning set forth in
the definition of “Separation Transactions”.

“Transactions” means the execution, delivery
and performance by the Obligors of this Agreement and the other Loan Documents,
the borrowing of Loans and the use of the proceeds thereof.

“Type”, when used in reference to any Loan or
Borrowing, refers to whether the rate of interest on such Loan, or on the Loans
comprising such Borrowing, is determined by reference to the LIBO Rate or the
Alternate Base Rate.

“Wholly-Owned Consolidated Subsidiary” means
any Consolidated Subsidiary all of the shares of capital stock or other
ownership interests of which (except directors’ qualifying shares and
investments by foreign nationals mandated by applicable law) are at the time
beneficially owned, directly or indirectly, by the Guarantor.

“Withdrawal Liability” means liability to a
Multiemployer Plan as a result of a complete or partial withdrawal from such
Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title
IV of ERISA.

Section
1.02         Classification of Loans and Borrowings.  For purposes of this Agreement and the other
Loan Documents, Loans or Borrowings may be classified and referred to by Type
(e.g., a “Eurodollar Loan” or an “ABR Borrowing”).

Section
1.03         Terms Generally.  With
reference to this Agreement and each other Loan Document, unless otherwise
specified herein or in such other Loan Document:

The definitions of terms herein and therein shall apply equally to the
singular and plural forms of the terms defined. 
Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms.  The words “include”, “includes”
and “including” shall be deemed to be followed by the phrase “without
limitation”.  The word “will”
shall be construed to have the same meaning and effect as the word “shall”.  Unless the context requires otherwise (a) any
definition of or reference to any agreement, instrument or other document
herein shall be construed as referring to such agreement, instrument or other
document as from time to time amended, supplemented or otherwise modified
(subject to any restrictions on such amendments, supplements or modifications
set forth herein), (b) any reference herein to 

 19
 

any Person shall be construed to include such Person’s successors and
assigns, (c) the words “herein”, “hereof” and “hereunder”,
and words of similar import, shall be construed to refer to this Agreement in
its entirety and not to any particular provision hereof, (d) all references in
a Loan Document to Articles, Sections, Exhibits and Schedules shall be
construed to refer to Articles and Sections of, and Exhibits and Schedules to,
the Loan Document in which such references appear and (e) the words “asset”
and “property” shall be construed to have the same meaning and effect
and to refer to any and all tangible and intangible assets and properties,
including cash, securities, accounts and contract rights.

Section
1.04         Accounting Terms; GAAP.  Except as otherwise expressly provided
herein, all terms of an accounting or financial nature shall be construed in
accordance with GAAP, as in effect from time to time; provided that, if
the Borrower notifies the Administrative Agent that the Borrower requests an
amendment to any provision hereof to eliminate the effect of any change
occurring after the date hereof in GAAP or in the application thereof on the
operation of such provision, regardless of whether any such notice is given
before or after such change in GAAP or in the application thereof, then
(i) the Administrative Agent, the Lenders and the Borrower shall negotiate
in good faith to amend such provision to preserve the original intent thereof
in light of such change in GAAP (subject to the approval of the Required
Lenders) and (ii) such provision shall be interpreted on the basis of GAAP
as in effect and applied immediately before such change shall have become
effective until such notice shall have been withdrawn or such provision amended
in accordance herewith.

ARTICLE
II

The Credits

Section
2.01         Commitments.  Subject to the terms and conditions set forth
herein, each Lender agrees to make Loans to the Borrower from time to time
during the Availability Period in an aggregate principal amount that will not
result in (a) such Lender’s Credit Exposure exceeding such Lender’s Commitment
or (b) the total Credit Exposures exceeding the total Commitments.  The Commitments are not revolving in nature
and amounts repaid or prepaid may not be reborrowed.

Section
2.02         Loans and Borrowings.

(a)           Each
Loan shall be made as part of a Borrowing consisting of Loans made by the
Lenders ratably in accordance with their respective Commitments.  The failure of any Lender to make any Loan
required to be made by it shall not relieve any other Lender of its obligations
hereunder.

(b)           Subject
to Section 9.03, each Borrowing shall be comprised entirely of ABR Loans
or Eurodollar Loans as the Borrower may request in accordance herewith.  Each Lender at its option may make any
Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such
Lender to make such Loan; provided that any exercise of such option
shall not affect the obligation of the Borrower to repay such Loan in
accordance with the terms of this 

 20
 

Agreement or result in any obligations of the Borrower to pay
additional amounts under Section 9.03 or 9.05.

(c)           At
the commencement of each Interest Period for any Eurodollar Borrowing, and at
the time each ABR Borrowing is made, such Borrowing shall be in an aggregate
amount that is an integral multiple of $1,000,000 and not less than $10,000,000
(except that any such Borrowing may be in the aggregate amount that is equal to
the entire unused balance of the total Commitments). Borrowings of more than
one Type may be outstanding at the same time; provided that there shall
not be more than a total of 10 Eurodollar Borrowings outstanding at the same
time.

Section
2.03         Requests for Borrowings.

(a)           To
request a Borrowing, the Borrower shall notify the Administrative Agent of such
request by telephone, facsimile or electronic mail (i) in the case of a
Eurodollar Borrowing, not later than 11:00 a.m., New York City time, three
Business Days before the date of the proposed Borrowing (except as provided in
Section 2.03(b)) or (ii) in the case of an ABR Borrowing, not later than 11:00
a.m., New York City time, on the date of the proposed Borrowing.  Each Borrowing Request shall be irrevocable
and if made telephonically, shall be confirmed promptly, by hand delivery, facsimile
or electronic mail of a written Borrowing Request in the form attached as
Exhibit F, and be executed by a Managing Director of the Borrower or another
authorized borrowing representative of the Borrower, as notified by the
Borrower to the Administrative Agent from time to time.  No more than a total of five Borrowing
Requests may be made by the Borrower during the Availability Period, with each
telephonic Borrowing Request specifying the information contained in clauses
(i), (ii), (iv) and (v) below and with each written Borrowing Request
specifying the information contained in clauses (i) through (vi) below, in each
case, in compliance with Section 2.02:

(i)          the aggregate amount
of the requested Borrowing;

(ii)         the date of such
Borrowing, which shall be a Business Day;

(iii)        a list of the
Allocated Existing Indenture Debt and/or Allocated Existing Credit Agreement
Debt being repaid or redeemed, or with respect to which a consent fee is being
paid, in each case, with the proceeds of such Borrowing (either by direct
disbursement or advance deposit with the trustee, paying agent or fiscal agent
for such Debt), setting forth (x) a description of each series or tranche of
Allocated Existing Indenture Debt and/or Allocated Existing Credit Agreement
Debt then being repaid or redeemed or irrevocably called for redemption, or
with respect to which a consent fee is then being paid, (y) a reasonably
detailed description of the amounts payable (including premiums, if any,
consent fees and other related fees, costs and expenses, including professional
fees) in connection with such series or tranche of such Allocated Existing
Indenture Debt and/or Allocated Existing Credit Agreement Debt and (z) the
Person to which each such payment shall be made;

 21
 

(iv)       whether such Borrowing
is to be an ABR Borrowing or a Eurodollar Borrowing;

(v)        in the case of a
Eurodollar Borrowing, the initial Interest Period to be applicable thereto,
which shall be a period contemplated by the definition of the term “Interest
Period”; and

(vi)       the location and number
of the account or accounts to which funds are to be disbursed, which shall
comply with the requirements of Section 2.04 and/or Section 2.05.

If no election as to the Type of Borrowing is specified, then the
requested Borrowing shall be an ABR Borrowing. 
If no Interest Period is specified with respect to any requested
Eurodollar Borrowing, then the Borrower shall be deemed to have selected an
Interest Period of one month’s duration. 
Promptly following receipt of a 
Borrowing Request in accordance with this Section, the Administrative
Agent shall advise each Lender of the details thereof and of the amount of such
Lender’s Loan to be made as part of the requested Borrowing.

(b)           The
Borrower may request a Eurodollar Borrowing having an Interest Period other
than one, two, three or six months in duration as provided in the definition of
“Interest Period” by notifying the Administrative Agent not later than
11:00 a.m., New York City time, four Business Days prior to the requested date
of such Borrowing having such Interest Period, whereupon the Administrative
Agent shall give prompt notice to the Lenders of such request and determine
whether the requested Interest Period is acceptable to all of them; and not
later than 8:00 a.m., New York City time, on the Business Day after receiving
such request from the Borrower, the Administrative Agent shall notify the
Borrower whether or not the requested Interest Period has been agreed to by all
the Lenders.  If such requested Interest
Period is so approved by all of the Lenders, the Borrower may thereafter from
time to time elect to make Borrowing Requests under Section 2.03(a) and
Interest Election Requests under Section 2.06(c) designating such Interest
Period, until the Administrative Agent notifies the Borrower that the Required
Lenders have elected to revoke such approval.

Section
2.04         [Intentionally
omitted]

Section
2.05         Funding of Borrowings.

(a)           Each
Lender shall make each Loan to be made by it hereunder on the proposed date
thereof by wire transfer of immediately available funds by 1:00 p.m., New York
City time, to the account of the Administrative Agent most recently designated
by it for such purpose by notice to the Lenders.  Upon satisfaction of the applicable
conditions set forth in Section 4.02 (and, if such Borrowing is the initial
Borrowing, Section 4.01), the Administrative Agent will make all funds so
received available to the Borrower in like funds as received by the
Administrative Agent either by (i) crediting the amounts so received, in like
funds, to an account of the Borrower maintained with the Administrative Agent
in New York City or (ii) wire transfer of such funds, in each case in
accordance with instructions provided to the Administrative Agent in the
applicable Borrowing Request.

 22

(b)           Unless
the Administrative Agent shall have received notice from a Lender prior to the
proposed date of any Borrowing that such Lender will not make available to the
Administrative Agent such Lender’s share of such Borrowing, or by 12:00 p.m.
New York City time on the proposed date of such Borrowing, in the case of ABR
Borrowings, the Administrative Agent may assume that such Lender has made such
share available on such date in accordance with paragraph (a) of this Section
and may, in reliance upon such assumption, make available to the Borrower a
corresponding amount.  If and to the
extent that such Lender did not make available such Lender’s share of such
Borrowing, then such Lender shall forthwith on demand pay to the Administrative
Agent the amount thereof in immediately available funds, together with interest
thereon for the period  from the date
such amount was made available by the Administrative Agent to the Borrower to
the date such amount is recovered by the Administrative Agent (the “Compensation
Period”) at a rate per annum equal to the Federal Funds Effective Rate from
time to time in effect plus the Administrative Agent’s standard processing fee
for interbank compensation.  If such
Lender pays such amount to the Administrative Agent, then such amount shall
constitute such Lender’s Loan included in the applicable Borrowing.  If such Lender does not pay such amount
forthwith upon the Administrative Agent’s demand therefor, the Administrative
Agent may make a demand therefor upon the Borrower, and the Borrower shall pay
such amount to the Administrative Agent, together with the interest thereon for
the Compensation Period at a rate per annum equal to the rate of interest
applicable to the applicable Borrowing. 
Nothing herein shall be deemed to relieve any Lender from its obligation
to fulfill its Commitment or to prejudice any rights which the Administrative
Agent or the Borrower may have against any Lender as a result of any default by
such Lender hereunder.

Section
2.06         Interest Elections.

(a)           Each
Borrowing initially shall be of the Type specified in the applicable Borrowing
Request and, in the case of a Eurodollar Borrowing, shall have an initial
Interest Period as specified in such Borrowing Request.  Thereafter, the Borrower may elect to convert
such Borrowing to a different Type or to continue such Borrowing and, in the
case of a Eurodollar Borrowing, may elect Interest Periods therefor, all as
provided in this Section.  The Borrower
may elect different options with respect to different portions of the affected
Borrowing, in which case each such portion shall be allocated ratably among the
Lenders holding the Loans comprising such Borrowing, and the Loans comprising
each such portion shall be considered a separate Borrowing.

(b)           To
make an election pursuant to this Section, the Borrower shall notify the
Administrative Agent of such election by telephone, facsimile or electronic
mail by the time that a Borrowing Request would be required under
Section 2.03 if the Borrower were requesting a Borrowing of the Type
resulting from such election to be made on the effective date of such
election.  Each such Interest Election
Request shall be irrevocable and, if made telephonically, shall be confirmed
promptly in a signed notice by hand delivery, facsimile or electronic mail to
the Administrative Agent of a written Interest Election Request in a form
approved by the Administrative Agent.

 23
 

(c)           Each telephonic and written Interest
Election Request shall specify the following information in compliance with Section 2.02:

(i)          the Borrowing to
which such Interest Election Request applies and, if different options are
being elected with respect to different portions thereof, the portions thereof
to be allocated to each resulting Borrowing (in which case the information to
be specified pursuant to clauses (iii) and (iv) below shall be
specified for each resulting Borrowing);

(ii)         the effective date of
the election made pursuant to such Interest Election Request, which shall be a
Business Day;

(iii)        whether the resulting
Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing; and

(iv)       if the resulting
Borrowing is a Eurodollar Borrowing, the Interest Period to be applicable
thereto after giving effect to such election, which shall be a period
contemplated by the definition of the term “Interest Period”, subject to
Section 2.03(b).

If any such Interest Election Request requests a
Eurodollar Borrowing but does not specify an Interest Period, then the Borrower
shall be deemed to have selected an Interest Period of one month’s duration.

(d)           Promptly
following receipt of an Interest Election Request, the Administrative Agent
shall advise each Lender of the details thereof and of such Lender’s portion of
each resulting Borrowing.

(e)           If
the Borrower fails to deliver a timely Interest Election Request with respect
to a Eurodollar Borrowing prior to the end of the Interest Period applicable
thereto, then, unless such Borrowing is repaid as provided herein, at the end
of such Interest Period such Borrowing shall be converted to an ABR
Borrowing.  Notwithstanding any contrary
provision hereof, if an Event of Default under clause (a) or (b) of Article VI
has occurred and is continuing and the Administrative Agent, at the request of
the Required Lenders, so notifies the Borrower, then, so long as such Event of
Default is continuing (i) no outstanding Borrowing may be converted to or
continued as a Eurodollar Borrowing and (ii) unless repaid, each
Eurodollar Borrowing shall be converted to an ABR Borrowing at the end of the
Interest Period applicable thereto.

Section
2.07         Termination and Reduction of
Commitments.

(a)           The
unused Commitments shall automatically terminate at the end of the Availability
Period.

(b)           The
Borrower may at any time terminate, or from time to time reduce, the
Commitments; provided that (i) each reduction of the Commitments
shall be in an amount that is an integral multiple of $1,000,000 and not less
than $10,000,000 and (ii) the Borrower shall not 

 24
 

terminate or reduce the Commitments if, after giving effect to any
concurrent prepayment of the Loans in accordance with Section 2.09, the
total Credit Exposures would exceed the total Commitments.

(c)           The
Borrower shall notify the Administrative Agent of any election to terminate or
reduce the Commitments under paragraph (b) of this Section at least three
Business Days prior to the effective date of such termination or reduction,
specifying such election and the effective date thereof, provided that a
notice of termination of the Commitments delivered by the Borrower may state
that such notice is conditioned upon the effectiveness of other credit
facilities, in which case such notice may be revoked by the Borrower (by notice
to the Administrative Agent on or prior to the specified effective date) if
such condition is not satisfied. 
Promptly following receipt of any notice, the Administrative Agent shall
advise the Lenders of the contents thereof. 
Any termination or reduction of the Commitments shall be permanent.  Each reduction of the Commitments shall be
made ratably among the Lenders in accordance with their respective Commitments.

Section
2.08         Repayment of Loans; Evidence
of Debt.

(a)           The
Borrower hereby unconditionally promises to pay to the Administrative Agent for
the account of each Lender the then unpaid principal amount of each Loan on the
Maturity Date.

(b)           Each
Lender shall maintain in accordance with its usual practice an account or
accounts evidencing the indebtedness of the Borrower to such Lender resulting
from each Loan made by such Lender, including the amounts of principal and
interest payable and paid to such Lender from time to time hereunder.

(c)           The
Administrative Agent shall maintain accounts in which it shall record
(i) the amount of each Loan made hereunder, the Type thereof and the
Interest Period applicable thereto, (ii) the amount of any principal or
interest due and payable or to become due and payable from the Borrower to each
Lender hereunder and (iii) the amount of any sum received by the
Administrative Agent hereunder for the account of the Lenders and each Lender’s
share thereof.

(d)           The
entries made in the accounts maintained pursuant to paragraph (b) or (c) of
this Section shall be prima facie evidence of the existence and amounts of
the obligations recorded therein; provided that the failure of any
Lender or the Administrative Agent to maintain such accounts or any error
therein shall not in any manner affect the obligation of the Borrower to repay
the Loans in accordance with the terms of this Agreement or the other Loan
Documents.

(e)           Any
Lender may request that Loans made by it be evidenced by a Note.  In such event, the Borrower shall prepare,
execute and deliver to such Lender a Note payable to the order of such Lender
(or, if requested by such Lender, to such Lender and its registered
assigns).  Thereafter, the Loans
evidenced by such Note and interest thereon shall at all times (including after
assignment pursuant to Section 10.04) be represented by one or more Notes 

 25
 

payable to the order of the payee named therein (or, if such Note is a
registered note, to such payee and its registered assigns).

Section
2.09         Prepayment of Loans;
Mandatory Reduction of Commitments.

(a)           The
Borrower shall have the right at any time and from time to time to prepay any
Borrowing in whole or in part subject to prior notice in accordance with
paragraph (b) of this Section; provided that each such prepayment shall
be in an amount that is an integral multiple of $1,000,000 and not less than
$10,000,000.

(b)           The
Borrower shall notify the Administrative 
Agent by telephone (confirmed in a signed notice sent by facsimile or
electronic mail) of any prepayment hereunder (i) in the case of prepayment
of a Eurodollar Borrowing, not later than 11:00 a.m., New York City time, three
Business Days before the date of prepayment, or (ii) in the case of
prepayment of an ABR Borrowing, not later than 11:00 a.m., New York City time,
on the date of prepayment.  Each such
notice shall specify the prepayment date and the principal amount of each
Borrowing or portion thereof to be prepaid provided that, if a notice of
optional prepayment is given in connection with a conditional notice of
termination of the Commitments as contemplated by Section 2.07(c), then
such notice of prepayment may be revoked if such notice of termination is
revoked in accordance with Section 2.07(c).  Promptly following receipt of any such notice
relating to a Borrowing, the Administrative Agent shall advise the Lenders of
the contents thereof.  Each partial
prepayment of any Borrowing shall be in an amount that would be permitted in
the case of an advance of a Borrowing of the same Type as provided in
Section 2.02(c).  Each prepayment of
a Borrowing shall be applied ratably to the Loans included in the prepaid
Borrowing.  Prepayments shall be accompanied
by accrued interest to the extent required by Section 2.11 and break
funding payments to the extent required by Section 9.04.

(c)           In
the event that at any time, or from time to time, on or after the date of this
Agreement, the Guarantor, the Borrower or any H Subsidiary shall receive any
Net Cash Proceeds of any Reduction Event, then such Net Cash Proceeds shall be
automatically applied first to reduce the unused Commitments (but not below
zero) by an amount equal to the largest multiple of $1,000,000 which does not
exceed the amount of such Net Cash Proceeds. 
The reductions in the Commitments required by this subsection (c) shall
be effective on the date of receipt by the Guarantor, the Borrower or any H
Subsidiary of such Net Cash Proceeds.

(d)           In
the event that at any time, or from time to time, on or after the Effective
Date, the Guarantor, the Borrower or any H Subsidiary shall receive any Net
Cash Proceeds of any Reduction Event (other than a Reduction Event which
constitutes a refinancing of Existing Indenture Debt), after application of
such Net Cash Proceeds pursuant to subsection (c) of this Section 2.09, the
Loans shall be prepaid in an aggregate principal amount equal to the largest
multiple of $1,000,000 which does not exceed the amount of such Net Cash
Proceeds, less the amount of any reduction in the Commitments pursuant to
subsection (c) of this Section 2.09 on account of such receipt.  Each such prepayment shall be made together
with accrued interest on the amount prepaid and shall be made not later than
the third Business Day following the date of such receipt.

 26
 

(e)           The Guarantor or the Borrower shall
notify the Administrative Agent not later than the date of receipt by the
Guarantor, the Borrower or any H Subsidiary of the Net Cash Proceeds of a
Reduction Event, specifying the date and amount thereof.  The Administrative Agent shall promptly
notify each Lender of the contents of each such notice received by it.

Section
2.10         Fees.

(a)           The
Borrower agrees to pay to the Administrative Agent for the account of each
Lender a facility fee, which shall accrue on the daily amount of the then
applicable Commitment of such Lender (whether used or unused) during the period
from and including the date that is 90 days following the Closing Date to but excluding
the Maturity Date, at the rate per annum set forth on the Pricing Grid opposite
the reference to the applicable Index Debt Rating under the heading “Applicable
Facility Fee Rate” (the “Facility Fee”); provided that, if such
Lender continues to have any Credit Exposure after the Maturity Date, then such
Facility Fee shall continue to accrue on the daily amount of such Lender’s
Credit Exposure from and including the Maturity Date to but excluding the date
on which such Lender ceases to have any Credit Exposure.  Facility Fees accrued through and including
the last Business Day of March, June, September and December of each year shall
be payable on each such last day, commencing on the first such date to occur after
the date that is 90 days following the Closing Date; provided that all
such fees shall be payable on the Maturity Date and any such fees accruing
after the Maturity Date shall be payable on demand.

(b)           The
Borrower agrees to pay to the Administrative Agent and the Global Coordinators,
for their own accounts, the fees payable in the amounts and at the times agreed
in the Fee Letters.  Such fees shall be
fully earned when paid and shall not be refundable for any reason whatsoever.

(c)           All
fees payable hereunder shall be paid on the dates due, in immediately available
funds, to the Administrative Agent for distribution, in the case of Facility
Fees, to the Lenders.  Fees paid shall
not be refundable under any circumstances.

Section
2.11         Interest.

(a)           The
Loans comprising each ABR Borrowing shall bear interest at the Alternate Base
Rate.

(b)           The
Loans comprising each Eurodollar Borrowing shall bear interest  at the LIBO Rate for the Interest Period in
effect for such Borrowing plus the Applicable Margin.

(c)           Notwithstanding
the foregoing, if any principal of or interest on any Loan or any fee or other
amount payable by the Borrower under any Loan Document is not paid when due,
whether at stated maturity, upon acceleration or otherwise, such overdue amount
shall bear interest, after as well as before judgment, at a rate per annum
equal to (i) in the case of overdue principal of any Loan, 2% plus the
rate otherwise applicable to such Loan as provided in the preceding paragraphs
of this Section or (ii) in the case of any other amount, 2% plus the
rate applicable to ABR Loans as provided in paragraph (a) of this Section.

 27
 

(d)           Accrued
interest on each Loan shall be payable in arrears on each Interest Payment Date
for such Loan and upon termination of the Commitments; provided that
(i) interest accrued pursuant to paragraph (c) of this Section shall
be payable on demand, (ii) in the event of any repayment or prepayment of
any Loan (other than a prepayment of an ABR Loan prior to the end of the
Availability Period), accrued interest on the principal amount repaid or
prepaid shall be payable on the date of such repayment or prepayment and
(iii) in the event of any conversion of any Eurodollar Loan prior to the
end of the current Interest Period therefor, accrued interest on such Loan
shall be payable on the effective date of such conversion.

Section
2.12         Calculation of Interest and
Fees.

(a)           All
interest hereunder shall be computed on the basis of a year of 360 days, except
that interest computed by reference to the Alternate Base Rate at times when
the Alternate Base Rate is based on the Base Rate shall be computed on the
basis of a year of 365 days (or 366 days in a leap year), and in each case
shall be payable for the actual number of days elapsed (including the first day
but excluding the last day).  The applicable
Alternate Base Rate or LIBO Rate shall be determined by the Administrative
Agent, and such determination shall be conclusive absent manifest error.

(b)           All fees hereunder shall be computed on the
basis of a year of 360 days and shall be payable for the actual number of days
elapsed (including the first day but excluding the last day).

Section
2.13         Payments Generally; Pro Rata
Treatment; Sharing of Set-offs.

(a)           The
Borrower shall make each payment required to be made by it hereunder (whether
of principal, interest or fees, or of amounts payable under Section 9.03,
9.04 or 9.05, or otherwise) prior to 2:00 p.m., New York City time, on the date
when due, in immediately available funds, without set off or counterclaim.  Any amounts received after such time on any
date may, in the discretion of the Administrative Agent, be deemed to have been
received on the next succeeding Business Day for purposes of calculating
interest thereon; provided that no amount shall be deemed to have been
received on the next succeeding Business Day if the Borrower provides the
Administrative Agent with written confirmation of a Federal Reserve Bank
reference number no later than 4:00 p.m. on the date when due.  All such payments shall be made to the
Administrative Agent at the Administrative Agent’s Office, except that payments
pursuant to Sections 9.03, 9.04, 9.05 and 10.03 shall be made directly to the
Persons entitled thereto.  The
Administrative Agent shall distribute any such payments received by it for the
account of any other Person to the appropriate recipient promptly following
receipt thereof.  If any payment
hereunder shall be due on a day that is not a Business Day, the date for
payment shall be extended to the next succeeding Business Day, and, in the case
of any payment accruing interest, interest thereon shall be payable for the
period of such extension.  All payments
under this Agreement and the other Loan Documents shall be made in dollars in
New York, New York.

(b)           If
at any time insufficient funds are received by and available to the
Administrative Agent to pay fully all amounts of principal, interest and fees
then due hereunder, 

 28
 

such funds shall be applied (i) first, towards payment of interest
and fees then due hereunder, ratably among the parties entitled thereto in
accordance with the amounts of interest and fees then due to such parties, and
(ii) second, towards payment of principal then due hereunder, ratably
among the parties entitled thereto in accordance with the amounts of principal
then due to such parties.

(c)           If
any Lender shall, by exercising any right of set off or counterclaim or
otherwise, obtain payment in respect of any principal of or interest on any of
its Loans or other obligations hereunder resulting in such Lender receiving
payment of a proportion of the aggregate amount of its Loans and accrued
interest thereon or such other obligations greater than its pro rata share
thereof as provided herein, then the Lender receiving such greater proportion
shall (a) notify the Administrative Agent of such fact, and (b) purchase (for
cash at face value) participations in the Loans and such other obligations of
the other Lenders, or make such other adjustments that shall be equitable so
that the benefit of all such payments shall be shared by the Lenders ratably in
accordance with the aggregate amount of principal of and accrued interest on
their respective Loans and other amounts owing them; provided that
(i) if any such participations are purchased and all or any portion of the
payment giving rise thereto is recovered, such participations shall be
rescinded and the purchase price restored to the extent of such recovery,
without interest, and (ii) the provisions of this paragraph shall not be
construed to apply to any payment made by the Borrower pursuant to and in
accordance with the express terms of this Agreement or any payment obtained by
a Lender as consideration for the assignment of or sale of a participation in
any of its Loans to any assignee or participant, other than to the Borrower or
any Subsidiary thereof (as to which the provisions of this paragraph shall
apply).  The Borrower and the Guarantor
each consent to the foregoing and each agree, to the extent it may effectively
do so under applicable law, that any Lender acquiring a participation pursuant
to the foregoing arrangements may exercise against the Borrower and the
Guarantor rights of setoff and counterclaim with respect to such participation
as fully as if such Lender were a direct creditor of the Borrower or the
Guarantor in the amount of such participation.

(d)           Unless
the Administrative Agent shall have received notice from the Borrower prior to
the date on which any payment is due to the Administrative Agent for the
account of the Lenders hereunder that the Borrower will not make such payment,
the Administrative Agent may assume that the Borrower has made such payment on
such date in accordance herewith and may, in reliance upon such assumption,
distribute to the Lenders the amount due. 
In such event, if the Borrower has not in fact made such payment, then
each of the Lenders severally agrees to repay to the Administrative Agent
forthwith on demand the amount so distributed to such Lender with interest
thereon, for each day from and including the date such amount is distributed to
it to but excluding the date of payment to the Administrative Agent, at the
greater of the Federal Funds Effective Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank
compensation.

(e)           If
any Lender shall fail to make any payment required to be made by it pursuant to
Section 2.05(b) or 2.13(d), then the Administrative Agent may, in its
discretion (notwithstanding any contrary provision hereof), apply any amounts
thereafter received by the Administrative Agent for the account of such Lender
to satisfy such Lender’s obligations under such Sections until all such
unsatisfied obligations are fully paid.

 29
 

ARTICLE
III

Representations
and Warranties

Each Obligor represents and warrants to the
Administrative Agent and the Lenders that:

Section
3.01         Organization; Powers. 
Each Obligor is a company duly organized or formed and validly existing
under the laws of its jurisdiction of organization or formation.  Each Obligor has all corporate powers and all
governmental licenses, authorizations, consents and approvals required to carry
on its business as now conducted, except to the extent that failure to have any
such power or governmental license, authorization, consent or approval could
not, based upon the facts and circumstances in existence at the time this
representation and warranty is made or deemed made, reasonably be expected to
have a Material Adverse Effect.

Section
3.02         Authorization; Enforceability.  The Transactions are within such Obligor’s
corporate powers and have been duly authorized by all necessary corporate and,
if required, stockholder action.  This
Agreement and each other Loan Document to which such Obligor is a party has
been duly executed and delivered by such Obligor and constitutes a legal, valid
and binding obligation of such Obligor, enforceable in accordance with its
terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium
or other laws affecting creditors’ rights generally and subject to general
principles of equity, regardless of whether considered in a proceeding in
equity or at law.

Section
3.03         Governmental Approvals; No Conflicts.  The Transactions (a) do not require any
consent or approval of, registration or filing with, or any other action by,
any Governmental Authority, except such as have been obtained or made and are
in full force and effect, (b) will not violate, contravene, or constitute a
default under any provision of (i) any applicable law or regulation, (ii) the
charter, by-laws or other organizational documents of such Obligor, (iii) any
order, judgment, decree or injunction of any Governmental Authority, (iv) any
agreement or instrument evidencing or governing Debt of such Obligor, except
for any contravention or default under any such agreement or instrument
evidencing or governing such Debt in an aggregate principal amount,
individually or in the aggregate for all such agreements or instruments in
respect of which there is a contravention or default, not in excess of
$25,000,000 or (v) any other material agreement or instrument binding upon such
Obligor or its assets.

Section
3.04         Financial Condition; No
Material Adverse Change.

(a)           The
Guarantor has heretofore furnished to the Administrative Agent (i) its
Consolidated balance sheet and statements of income, shareholders’ equity and
cash flows as of and for the fiscal year ended September 29, 2006, reported on
by Deloitte & Touche LLP, independent public accountants, (ii) the
combined balance sheet and statements of income of certain healthcare related subsidiaries
and businesses of the Guarantor, as described in the Healthcare Registration
Statement, as of and for the fiscal year ended September 29, 2006, reported on
by Deloitte & Touche LLP, independent public accountants and (iii) its pro forma combined balance sheet and statements of income as
of such date or for such period, adjusted to 

 30
 

give pro forma effect to the
consummation of the Separation Transactions, certified by its chief financial
officer (the “Separation Pro Forma”). 
Such financial statements, (A) present fairly, in all material respects,
the Consolidated financial position and results of operations and cash flows of
the Guarantor, in the case of the statements referred to in clause (i)
above, and the combined financial position and results of operations of such
subsidiaries and businesses, in the case of the statements referred to in
clause (ii) above, in each case as of such date and for such period in
accordance with GAAP and (B) in the case of the Separation Pro Formas, have been
prepared in good faith by the Guarantor, based on assumptions used to prepare
the pro forma financial information
contained in the S-1 Registration Statement filed by the H Borrower and the H
Guarantor with the SEC on January 18, 2007, as amended by the amendment thereto
filed with the SEC on April 20, 2007 (the “Healthcare Registration Statement”)
(which assumptions are believed by the Guarantor on the Closing Date to be
reasonable under the circumstances and were based upon currently available
information as of the date of filing), and reflect on a pro forma
basis the estimated Consolidated financial position and results of operations
of the Guarantor and its Subsidiaries as of such date, assuming the Spin
Distributions had actually occurred (x) at September 29, 2006, in the case of
such balance sheet, or (y) on October 1, 2005, in the case of such statements
of income, and giving pro forma
effect to the other events and adjustments referred to with respect to such
financial statements in the Healthcare Registration Statement.

(b)           Since
September 29, 2006, except for the Separation Transactions, there has been no
material adverse change in (i) the consolidated financial condition, business
or operations of the Guarantor and its Subsidiaries, taken as a whole or (ii)
the healthcare business or operations of the Initial Guarantor and its
subsidiaries, taken as a whole; provided that, for purposes of this
Section 3.04(b), a “material adverse change” shall not include any change to
the extent resulting solely from any Existing Indenture Covered Default.

Section
3.05         Litigation and Environmental
Matters.

(a)           There
are no actions, suits, investigations or proceedings by or before any
arbitrator or Governmental Authority pending against or, to the knowledge of
the Obligors, threatened against or affecting the Guarantor or any of its
Subsidiaries (i) as to which there is a reasonable possibility of an
adverse determination which could, based upon the facts and circumstances in
existence at the time this representation and warranty is made or deemed made,
reasonably be expected to result in a Material Adverse Effect, other than the
matters described in the Guarantor’s filings of Forms 10K, 10Q or 8K or in the
Form-10s, in each case on or before the date hereof (the “Existing
Litigation”), and other than shareholders’ derivative litigation or
shareholders’ class actions based on the same facts and circumstances as the
Existing Litigation, or (ii) that could reasonably be expected to
adversely affect the validity or enforceability of any of the Loan Documents or
the Transactions.

(b)           Except
with respect to any matters that could not, based upon the facts and
circumstances in existence at the time this representation and warranty is made
or deemed made, reasonably be expected to result in a Material Adverse Effect
and except for the matters described in the Guarantor’s filings of Forms 10K,
10Q or 8K or in the Form-10s, in each case on or before the date hereof,
neither the Guarantor nor any of its Subsidiaries (i) has failed to 

 31
 

comply with any Environmental Law or to obtain, maintain or comply with
any permit, license or other approval required under any Environmental Law or
(ii) has become subject to any Environmental Liability.

Section
3.06         Investment Company Status. 
Neither Obligor is an “investment company” as defined in, or subject to
regulation under, the Investment Company Act of 1940.

Section
3.07         Taxes.  Each of the
Guarantor and its Significant Subsidiaries has timely filed or caused to be
filed all Tax returns and reports required to have been filed and has paid or
caused to be paid all Taxes required to have been paid by it, except (a) Taxes
that are being contested in good faith by appropriate proceedings and for which
the Guarantor or such Significant Subsidiary, as applicable, has set aside on
its books adequate reserves or (b) to the extent that the failure to do so
could not, based upon the facts and circumstances in existence at the time this
representation and warranty is made or deemed made, reasonably be expected to
result in a Material Adverse Effect.

Section
3.08         ERISA.  No ERISA Event
has occurred or is reasonably expected to occur that, when taken together with
all other such ERISA Events for which liability is reasonably expected to
occur, could, based upon the facts and circumstances in existence at the time
this representation and warranty is made or deemed made, reasonably be expected
to result in a Material Adverse Effect. 
The present value of all accumulated benefit obligations of all
underfunded Plans (based on the assumptions used for purposes of Statement of
Financial Accounting Standards No. 87) did not, as of the date of the most
recent financial statements reflecting such amounts, exceed the fair market
value of the assets of all such underfunded Plans by an amount which could
based upon the facts and circumstances existing at the time this representation
and warranty is made or deemed made, reasonably be expected to result in a
Material Adverse Effect.

Section
3.09         Disclosure.  All
information heretofore furnished by or on behalf of the Obligors to the
Administrative Agent or the Lenders in connection with this Agreement or the
other Loan Documents, when taken as a whole, does not contain any untrue
statement of material fact or omit to state any material fact necessary to make
the statements contained herein or therein, in light of the circumstances under
which they were made, not misleading; provided that with respect to
projections and other forward-looking information, the Obligors represent and
warrant only that such information was prepared in good faith based upon
assumptions believed to be reasonable at the time made, it being understood
that projections and forward-looking information are subject to significant
uncertainties and contingencies, many of which are beyond the control of the
Obligors and that no assurance can be given that such projections will be
realized.

Section
3.10         Subsidiaries.  Each of
the Guarantor’s Subsidiaries is duly organized or formed, validly existing and
(to the extent such concept is applicable to it) in good standing under the
laws of its jurisdiction of organization or formation, except where the failure
to be so organized, existing or in good standing could not, based upon the
facts and circumstances existing at the time this representation and warranty
is made or deemed made, reasonably be expected to have a Material Adverse
Effect.  Each such Subsidiary has all
legal 

 32
 

powers and all governmental licenses,
authorizations, consents and approvals required to carry on its business as now
conducted, except to the extent that failure to have any such power or
governmental license, authorization, consent or approval could not, based upon
the facts and circumstances in existence at the time this representation and warranty
is made or deemed made, reasonably be expected to have a Material Adverse
Effect.

Section
3.11         Margin Regulations.  Neither Obligor is engaged principally or as
one of its important activities in the business of buying or carrying margin
stock within the meaning of Regulation U of the Board.

ARTICLE
IV

Conditions

Section
4.01         Effective Date.  The
obligations of the Lenders to make Loans hereunder shall not become effective
until the date on which each of the following conditions is satisfied (or waived
in accordance with Section 10.02):

(a)           The
Administrative Agent (or its counsel) shall have received on or before the date
of this Agreement from each party hereto either (i) a counterpart of this
Agreement signed on behalf of such party or (ii) written evidence
satisfactory to the Administrative Agent (which may include facsimile
transmission of a signed signature page of this Agreement) that such party has
signed a counterpart of this Agreement.

(b)           The
Administrative Agent (or its counsel) shall have received a Note executed by
the Initial Borrower in favor of each Lender that requested a Note prior to the
Closing Date in accordance with Section 2.08(e).

(c)           The
Administrative Agent shall have received a favorable written opinion (addressed
to the Administrative Agent and the Lenders and dated the date of this
Agreement) of (i) the general counsel of the Guarantor in substantially
the form attached as Exhibit C-1, (ii) Allen & Overy, special
Luxembourg counsel of the Borrower in substantially the form attached as
Exhibit C-2, (iii) Appleby Hunter Bailhache, special Bermudian counsel of
the Guarantor, in substantially the form attached as Exhibit C-3 and
(iv) Gibson, Dunn & Crutcher LLP, special New York counsel of the
Obligors in substantially the form attached as Exhibit C-4.

(d)           The
Administrative Agent shall have received on or before the date of this
Agreement certified copies of the charter, by-laws and other constitutive
documents of each Obligor and the H Guarantor and of resolutions of the Board
of Directors of each Obligor and the H Guarantor authorizing the Transactions,
together with incumbency certificates dated the date of this Agreement
evidencing the identity, authority and capacity of each Person authorized to
execute and deliver this Agreement, the other Loan Documents and any other
documents to be delivered by such Obligor and the H Guarantor pursuant hereto,
all in form and substance reasonably satisfactory to the Administrative Agent
and its counsel.

 33

(e)           The
Administrative Agent shall have received a certificate, dated the date of this
Agreement and signed by a Responsible Officer, confirming that (i) the
representations and warranties of each Obligor set forth in Article III of this
Agreement are true and correct and (ii) no Default has occurred and is
continuing.

(f)            The
Administrative Agent shall have received evidence reasonably satisfactory to it
of the consent of CT Corporation System in New York, New York to the
appointment and designation provided by Section 10.09(d).

(g)           The
Borrower shall have paid all fees required to be paid by it pursuant to the Fee
Letters and, unless waived by the Administrative Agent and the Global
Coordinators, the Borrower shall have paid all legal fees and expenses of the
Administrative Agent and the Global Coordinators required to be paid pursuant
to the terms of this Agreement and to the extent invoiced and received by the
Borrower prior to the Closing Date.

The Administrative Agent shall (i) notify the Borrower
and the Lenders of the satisfaction of the conditions described in clauses (a)
through (g) above on the Closing Date and (ii) notify the Borrower and the
Lenders of the Effective Date.  Each such
notice shall be conclusive and binding.

Section
4.02         Each Borrowing.  The
obligation of each Lender to make a Loan on the occasion of any Borrowing is
subject to the satisfaction of the following conditions:

(a)           The
representations and warranties of the Obligors set forth in Article III of this
Agreement (other than Section 3.04, Section 3.05(a)(i) or (b),
or Section 3.09) or any other Loan Document, or which are contained in any
certificate or notice delivered at any time by any Obligor under or in
connection herewith or therewith, shall be true and correct in all material
respects on and as of the date of such Borrowing, before and after giving
effect to such Borrowing, or if any such representation or warranty was made as
of a specific date, such representation and warranty was true and correct in
all material respects on and as of such date.

(b)           At
the time of and immediately after giving effect to such Borrowing, no Default
shall have occurred and be continuing.

(c)           The
Borrower shall have delivered a Borrowing Request in accordance with Section
2.03.

(d)           With
respect to any Allocated Existing Indenture Debt to be repaid or redeemed with
the proceeds of such Borrowing (other than pursuant to a Special Repayment),
the Administrative Agent shall have received evidence reasonably satisfactory
to it that the conditions to the tender offers commenced for the repurchase or
redemption of such Allocated Existing Indenture Debt shall have been satisfied
pursuant to the terms of the Repurchase Documentation, in such form as provided
to the Administrative Agent on or before the date of this Agreement (and with
such subsequent amendments, modifications or waivers as may be approved by the
Administrative Agent (such approval not to be unreasonably withheld or
delayed)), and that all amounts payable to the holders of such Allocated Existing
Indenture Debt 

 34
 

pursuant to the terms of the Repurchase Documentation have been paid in
full or are being paid in full in cash through a direct disbursement of the
proceeds of such Borrowing.

(e)           With
respect to any Borrowing the proceeds of which are being utilized to make a
Special Repayment, the Administrative Agent shall have received evidence
reasonably satisfactory to it that the Allocated Existing Indenture Debt which
is being redeemed or otherwise repaid from such Special Repayment is (x) due
and payable, (y) permitted to be prepaid or (z) being irrevocably called for
redemption in connection with such Borrowing, and is being paid in cash (i)
through a direct disbursement of the proceeds of such Borrowing or (ii) with
money irrevocably deposited with the trustee, paying agent or fiscal agent for
such Existing Indenture Debt (through a direct disbursement of the proceeds of
such Borrowing) for payment of such Existing Indenture Debt upon expiration of
the relevant notice period for such redemption.

Each Borrowing Request shall be deemed to constitute a
representation and warranty by the Obligors on the date of such Borrowing
Request and the date of the Borrowing requested thereunder as to the matters
specified in paragraphs (a) and (b) of this Section.

ARTICLE V

Covenants

From and after the Effective Date, until the
Commitments have expired or been terminated and the principal of and interest
on each Loan and all fees payable under the Loan Documents shall have been paid
in full, the Guarantor (and the Borrower, where applicable) covenants and
agrees with the Lenders that:

Section
5.01         Financial Statements and Other Information.  The Guarantor will furnish to the
Administrative Agent (which, except as otherwise provided below with respect to
subsections (a), (b) or (e), the Administrative Agent shall promptly furnish to
each Lender):

(a)           within
120 days after the end of each fiscal year of the Guarantor, its audited
Consolidated balance sheet and related statements of operations, shareholders’
equity and cash flows as of the end of and for such fiscal year, setting forth
in each case in comparative form the figures for the previous fiscal year, all
reported on by Deloitte & Touche LLP or other independent public
accountants of internationally recognized standing in a manner complying with
the applicable rules and regulations promulgated by the SEC;

(b)           (i)
within 60 days after the end of each of the first three fiscal quarters of each
fiscal year of the Guarantor, its Consolidated balance sheet and related
statements of operations and cash flows for such fiscal quarter and the related
statements of operations and cash flows for the then elapsed portion of the
fiscal year, setting forth in each case in comparative form the figures for the
corresponding period or periods of the previous fiscal year, all certified as
to GAAP (subject to the absence of footnotes, audit and normal year-end
adjustments) on behalf of the Guarantor by the chief financial officer or the
chief accounting 

 35
 

officer of the Guarantor or a Designated Officer; (ii) as and when
filed with the SEC, for any of the first three fiscal quarters of each fiscal
year of the Guarantor which fiscal year ends on or prior to the date of the
Healthcare Spin Distribution, the combined balance sheet and related statements
of income of certain healthcare related subsidiaries and businesses of the
Guarantor for such fiscal quarter, certified by the chief financial officer of
the healthcare businesses of the Guarantor; and (iii) as and when filed with the
SEC, for any of the first three fiscal quarters of each fiscal year of the
Guarantor during which quarter the Healthcare Spin Distribution occurs, the
statement of income of the Guarantor for such fiscal quarter, certified as to
GAAP (subject to the absence of footnotes, audit and normal year-end
adjustments) on behalf of the Guarantor by the chief financial officer or the
chief accounting officer of the Guarantor or a Designated Officer;

(c)           concurrently
with any delivery of financial statements under clause (a) or (b) above, a
certificate on behalf of the Guarantor signed by the chief financial officer or
the chief accounting officer of the Guarantor or a Designated Officer
(i) certifying as to whether a Default has occurred and, if a Default has occurred,
specifying the details thereof and any action taken or proposed to be taken
with respect thereto, and (ii) setting forth reasonably detailed
calculations demonstrating whether the Guarantor was in compliance with Section
5.09;

(d)           within
five Business Days after any Responsible Officer obtains knowledge of any
Default, if such Default is then continuing, a certificate on behalf of the
Guarantor signed by a Responsible Officer of the Guarantor or a Designated
Officer setting forth, in reasonable detail, the nature thereof and the action
which the Guarantor is taking or proposes to take with respect thereto;

(e)           promptly
upon the filing thereof, copies of all final registration statements (other
than the exhibits thereto and any registration statements on Form S-8 or its
equivalent), final reports on Forms 10-K, 10-Q and 8-K (or their equivalents)
and proxy statements which the Guarantor or the Borrower shall have filed with
the SEC;

(f)            promptly
upon any Responsible Officer obtaining knowledge of the commencement of any
Reportable Action, a certificate on behalf of the Guarantor specifying the
nature of such Reportable Action and what action the Guarantor is taking or
proposes to take with respect thereto; and

(g)           from
time to time, upon reasonable notice, such other information regarding the
financial position or business of the Guarantor and its Subsidiaries, or
compliance with the terms of this Agreement, as any Lender through the
Administrative Agent may reasonably request.

Information required to be delivered pursuant to subsections (a), (b)
or (e) above may be delivered electronically and if so delivered, shall be
deemed to have been delivered on the date (i) on which the Guarantor posts
such documents, or provides a link thereto on the Guarantor’s website on the
Internet at www.tyco.com (or such other website as the Guarantor may designate
in the Guarantor Assumption Agreement or in a writing delivered to the
Administrative Agent), or at sec.gov/edaux/searches.htm; or (ii) on which
such documents are posted on the Guarantor’s 

 36
 

behalf, or delivered to the Administrative Agent by the Guarantor in
accordance with Section 10.15.

Section
5.02         Existence; Conduct of
Business.  The
Guarantor will:

(a)           not
engage in any material business other than the holding of stock and other
investments in its Subsidiaries and activities reasonably related thereto; and

(b)           cause
the H Borrower and subsidiaries of the H Borrower to not engage in any business
other than businesses of the same general type as conducted by the subsidiaries
of the Initial Borrower engaged in the Initial Borrower’s healthcare businesses
immediately prior to the TIGSA Separation, or which are related thereto or
extensions thereof, and other than businesses which are not in the aggregate
material to the Guarantor and its Subsidiaries taken as a whole.

(c)           preserve,
renew and keep in full force and effect, and will cause each Significant
Subsidiary to preserve, renew and keep in full force and effect (i) their
respective legal existence and (ii) their respective rights, privileges
and franchises necessary or desirable in the normal conduct of business, unless
in the case of either the failure of the Guarantor to comply with subclause
(c)(ii) of this Section 5.02 or the failure of a Significant
Subsidiary to comply with clause (c) of this Section 5.02, such failure
could not, based upon the facts and circumstances existing at the time,
reasonably be expected to have a Material Adverse Effect;

provided that nothing in this
Section 5.02 shall prohibit the Separation Transactions or any transaction
permitted by Section 5.08.

Section
5.03         Maintenance of Properties; Insurance.  The Guarantor will, and will cause each of
its Subsidiaries to, (a) keep and maintain all property material to the conduct
of its business in good working order and condition, ordinary wear and tear
excepted, and (b) maintain, with financially sound and reputable insurance
companies, insurance in such amounts and against such risks as are customarily
maintained by and commercially available to companies engaged in the same or
similar businesses operating in the same or similar locations, except in the
case of each of clause (a) and (b) to the extent that the failure to do so
could not, based upon the facts and circumstances existing at the time,
reasonably be expected to have a Material Adverse Effect.

Section
5.04         Books and Records; Inspection Rights.  The Guarantor will keep, and will cause each
Consolidated Subsidiary to keep, proper books of record and account in which
true and correct entries shall be made of its business transactions and
activities so that financial statements of the Guarantor that fairly present
its business transactions and activities can be properly prepared in accordance
with GAAP.  The Guarantor will, and will
cause each Significant Subsidiary to, permit any representatives designated by
the Administrative Agent or by any Lender through the Administrative Agent,
upon reasonable prior notice, at all reasonable times and as and to the extent
permitted by applicable law and regulation, and at the Administrative Agent’s
or such Lender’s expense, to visit and inspect its properties, to examine and
make extracts from its books and records, and to discuss its affairs, finances,
accounts and 

 37
 

condition with its officers, employees (in
the presence of its officers) and independent accountants (in the presence of
its officers); provided that (i) such designated representatives
shall be reasonably acceptable to the Borrower, shall agree to any reasonable
confidentiality obligations proposed by the Borrower, and shall follow the
guidelines and procedures generally imposed upon like visitors to Borrower’s
facilities and (ii) unless a Default shall have occurred and be
continuing, such visits and inspections shall occur not more than once in any
Fiscal Year.

Section
5.05         Compliance with Laws. 
The Guarantor will, and will cause each Significant Subsidiary to,
comply with all laws, rules, regulations and orders of any Governmental
Authority applicable to it or its property, except where the failure to do so
could not, based upon the facts and circumstances existing at the time,
reasonably be expected to result in a Material Adverse Effect.

Section
5.06         Use of Proceeds.  No
part of the proceeds of any Loan will be used, whether directly or indirectly,
for any purpose that entails a violation of any of the Regulations of the
Board, including Regulations T, U and X. 
The proceeds of the Loans made under this Agreement may be used to repay
the amounts outstanding under the Allocated Existing Credit Agreement Debt
and/or used to repay principal and accrued interest, premium (if any), consent
fees and/or other related fees, costs and expenses (including professional
fees) payable on or with respect to Allocated Existing Indenture Debt, which amounts
(other than amounts relating to Special Repayments and consent fees being paid
in lieu of repayment of Allocated Existing Indenture Debt) are payable upon the
closing of the tender offers commenced for the repurchase of Allocated Existing
Indenture Debt.

Section
5.07         Liens.  The Guarantor
will not, and will not permit any Subsidiary to, create, incur, assume or
permit to exist any Lien on any property or asset now owned or hereafter
acquired by it, except:

(a)           any
Lien existing on any asset on the Closing Date;

(b)           any
Lien on any asset securing the payment of all or part of the purchase price of
such asset upon the acquisition thereof by the Guarantor or a Subsidiary or
securing Debt (including any obligation as lessee incurred under a capital
lease) incurred or assumed by the Guarantor or a Subsidiary prior to, at the
time of or within one year after such acquisition (or in the case of real
property, the completion of construction (including any improvements on an
existing property) or the commencement of full operation of such asset or
property, whichever is later), which Debt is incurred or assumed for the
purpose of financing all or part of the cost of acquiring such asset or, in the
case of real property, construction or improvements thereon; provided,
that in the case of any such acquisition, construction or improvement, the Lien
shall not apply to any asset theretofore owned by the Guarantor or a
Subsidiary, other than assets so acquired, constructed or improved;

(c)           any
Lien existing on any asset or Stock of any Person at the time such Person is
merged or consolidated with or into the Guarantor or a Subsidiary which Lien
was not created in contemplation of such event;

 38
 

(d)           any
Lien existing on any asset at the time of acquisition thereof by the Guarantor
or a Subsidiary, which Lien was not created in contemplation of such
acquisition;

(e)           any
Lien arising out of the Refinancing of any Debt secured by any Lien permitted
by any of the subsections (a) through (d) of this Section 5.07, provided
that the principal amount of Debt is not increased (except as grossed-up for
the customary fees and expenses incurred in connection with such Refinancing
and except as a result of the capitalization or accretion of interest) and is
not secured by any additional assets, except as provided in the last sentence
of this Section 5.07;

(f)            any
Lien to secure Intercompany Debt;

(g)           sales
of accounts receivable or promissory notes to factors or other third-parties in
the ordinary course of business for purposes of collection;

(h)           any
Lien in favor of any country or any political subdivision of any country (or
any department, agency or instrumentality thereof) securing obligations arising
in connection with partial, progress, advance or other payments pursuant to any
contract, statute, rule or regulation or securing obligations incurred for the
purpose of financing all or any part of the purchase price (including the cost
of installation thereof or, in the case of real property, the cost of
construction or improvement or installation of personal property thereon) of
the asset subject to such Lien (including, but not limited to, any Lien
incurred in connection with pollution control, industrial revenue or similar
financings);

(i)            Liens
arising in the ordinary course of its business which (i) do not secure
Debt, and (ii) do not in the aggregate materially detract from the value
of its assets or materially impair the use thereof in the operation of its
business;

(j)            any
Lien securing only Nonrecourse Debt;

(k)           Liens
incurred and pledges or deposits in the ordinary course of business in
connection with workers’ compensation, old age pensions, unemployment insurance
or other social security legislation, other than any Lien imposed by ERISA;

(l)            Liens
created pursuant to a Permitted Securitization Transactions

(m)          Liens
for taxes, assessments and governmental charges or levies which are not yet due
or are payable without penalty or of which the amount, applicability or
validity is being contested by the Guarantor or a Subsidiary whose property is
subject thereto in good faith by appropriate proceedings as to which adequate
reserves are being maintained;

(n)           Liens
securing judgments that have not resulted in the occurrence of an Event of
Default under clause (k) of Article VI in an aggregate principal amount at any
time outstanding not to exceed $100,000,000; and

(o)           Liens
not otherwise permitted by the foregoing clauses (a) through (n) of this
Section 5.07 securing Debt or other obligations (without duplication) in
an aggregate 

 39
 

principal amount at any time outstanding not to exceed an amount equal
to 7.5% of Consolidated Tangible Assets at such time.

It is understood that any Lien permitted to exist on
any asset pursuant to the foregoing provisions of this Section 5.07 may
attach to the proceeds of such asset and, with respect to Liens permitted
pursuant to subsections (a), (b), (d), (e) (but only with respect to the
Refinancing of Debt secured by a Lien permitted pursuant to subsections (a),
(b), (d)) or (f) of this Section 5.07, may attach to an asset acquired in
the ordinary course of business as a replacement of such former asset.

Section
5.08         Fundamental Changes.

(a)           No
Obligor will consolidate, amalgamate or merge with or into any other Person or
sell, lease or otherwise transfer all or substantially all of the Consolidated
assets to any other Person, unless

(i)          such Obligor is the
surviving corporation, or the Person (if other than such Obligor) formed by
such consolidation or amalgamation or into which such Obligor is merged or amalgamated,
or the Person which acquires by sale or other transfer, or which leases, all or
substantially all of the assets of such Obligor (any such Person, the “Successor”),
shall be organized and existing under the laws of (A) in the case of a
Successor to the Borrower, Luxembourg or the United States, any state thereof
or the District of Columbia or (B) in the case of a Successor to the Guarantor,
Bermuda or of the United States, any state thereof or the District of Columbia
and shall expressly assume, in a writing executed and delivered to the
Administrative Agent for delivery to each of the Lenders, in form reasonably
satisfactory to the Administrative Agent, the due and punctual payment of the
principal of and interest on the Loans and the performance of the other
obligations under this Agreement and the other Loan Documents on the part of
such Obligor to be performed or observed, as fully as if such Successor were
originally named as such Obligor in this Agreement or such other Loan Document;
and

(ii)         immediately after
giving effect to such transaction, no Default shall have occurred and be
continuing; and

(iii)        such Obligor has
delivered to the Administrative Agent a certificate on behalf of such Obligor
signed by one of its Responsible Officers and an opinion of counsel, each
stating that all conditions provided in this Section 5.08 relating to such
transaction have been satisfied;

provided, however, that
nothing in this Section 5.08(a) shall prohibit the Separation
Transactions.  Without limiting the
generality of the foregoing, neither the TIGSA Separation nor the Spin
Distribution shall be deemed to be a transfer of all or substantially all of
the Consolidated assets of either Obligor. 
Upon the satisfaction (or waiver) of the conditions set forth in this
Section 5.08(a), a Successor to the Borrower or the Guarantor shall
succeed, and may exercise every right and power of, the Borrower or the
Guarantor under this Agreement and 

 40
 

the other Loan Documents with the same effect as if
such Successor had been originally named as the Borrower or the Guarantor
herein, and the Borrower or the Guarantor, as the case may be, shall be
relieved of and released from its obligations under this Agreement and the
other Loan Documents.

(b)           The
Initial Borrower shall not contribute substantially all its assets to the H
Borrower, E Borrower and T Borrower, respectively, pursuant to the Separation
Transactions unless, contemporaneously with such contribution, the H Borrower
shall expressly assume the due and punctual payment of the principal of and
interest on the Loans and the performance of the other obligations under this
Agreement and the other Loan Documents on the part of the Initial Borrower to
be performed or observed, as fully as if the H Borrower were the original
Borrower in this Agreement, pursuant to a Borrower Assumption Agreement and the
H Borrower shall deliver the Borrower Assumption Opinions and the documents
described in Section 4.01(d) relating to the H Borrower to the Administrative
Agent.  Upon such contribution of assets
and assumption of obligations, the H Borrower shall succeed, and may exercise
every right and power of, the Initial Borrower under this Agreement with the
same effect as if the H Borrower had been the original Borrower herein, and the
Initial Borrower shall be relieved of and released from its obligations under
this Agreement, in each case as provided in such Borrower Assumption Agreement.

(c)           The
Initial Guarantor shall not consummate the Healthcare Spin Distribution unless
upon such distribution the H Guarantor shall assume the obligations of the
Initial Guarantor under its Guarantee of the obligations of the Borrower under
this Agreement and the other Loan Documents, as fully if the H Guarantor were
the original Guarantor under this Agreement, pursuant to a Guarantor Assumption
Agreement and the H Guarantor shall deliver the Guarantor Assumption Opinions
to the Administrative Agent.  Upon such
distribution of shares and assumption of obligations, the H Guarantor shall
succeed, and may exercise every right and power of, the Initial Guarantor under
this Agreement with the same effect as if the H Guarantor had been the original
Guarantor herein, and the Initial Guarantor shall be relieved of and released
from its obligations under this Agreement, in each case as provided in such
Guarantor Assumption Agreement.

Notwithstanding the foregoing provisions of this Section 5.08,  so
long as either Existing Tyco Credit Agreement is in effect, this Section 5.08
shall not restrict any transfer of assets between the Guarantor and any
Subsidiary or between Subsidiaries, to the extent such restriction would
constitute a violation of the provisions of Section 6.07 of such Existing Tyco
Credit Agreement.

Section
5.09         Financial Covenant.

(a)           Leverage.  The Guarantor will not permit at any time the
ratio of (x) Consolidated Total Debt at such time to (y) Consolidated EBITDA
for the then most recently concluded period of four consecutive fiscal quarters
of the Guarantor to exceed 3.50 to 1.00.

Section
5.10         Limitation on Restrictions on
Subsidiary Dividends and Other Distributions.  The Guarantor will not, and will not permit
any Subsidiary to, directly or indirectly, create or otherwise cause or suffer
to exist or become effective any encumbrance or 

 41
 

restriction on the ability of any Subsidiary,
other than the Borrower, to (a) pay dividends or make any other distributions
on its capital stock or any other interest or participation in its profits,
owned by the Guarantor or any Subsidiary, or pay any Debt owed by any
Subsidiary to the Guarantor or any Subsidiary, (b) make loans or advances to
the Guarantor or any Subsidiary or (c) transfer any of its properties or assets
to the Guarantor or any Subsidiary (or, solely in the case of clause (xii)
hereof, any other Consolidated Person in respect of such Nonrecourse Debt),
except for such encumbrances or restrictions existing under or by reason of:

(i)            applicable laws and regulations,
judgments and orders and other legal requirements, agreements with non-U.S.
governments with respect to assets or businesses located in their jurisdiction,
or condemnation or eminent domain proceedings,

(ii)           this Agreement or the Credit
Agreement (or, so long as the Guarantor or any Subsidiary is a party thereto,
the Other Credit Agreements and the Other Bridge Loan Agreements),

(iii)          (A) customary provisions restricting
subletting or assignment of any lease governing a leasehold interest of the
Guarantor or a Subsidiary, or (B) customary restrictions imposed on the
transfer of trademarked, copyrighted or patented materials or provisions in
agreements that restrict the assignment of such agreements or any rights
thereunder,

(iv)          provisions contained in the
instruments evidencing or governing Debt or other obligations or agreements, in
each case existing on the date hereof,

(vi)          provisions contained in instruments
evidencing or governing Debt or other obligations or agreements of any Person,
in each case, at the time such Person (A) shall be merged or consolidated with
or into the Guarantor or any Subsidiary, (B) shall sell, transfer, assign,
lease or otherwise dispose of all or substantially all of such Person’s assets
to the Guarantor or a Subsidiary, or (C) otherwise becomes a Subsidiary, provided  that
in the case of clause (A), (B) or (C), such Debt, obligation or agreement was
not incurred or entered into, or any such provisions adopted, in contemplation
of such transaction,

(vii)         provisions contained in Refinancings,
so long as such provisions are, in the good faith determination of the Guarantor’s
board of directors, not materially more restrictive than those contained in the
respective instruments so Refinanced,

(viii)        provisions contained in any instrument
evidencing or governing Debt or other obligations of a Subsidiary Guarantor,

(ix)           any encumbrances and restrictions
with respect to a Subsidiary imposed in connection with an agreement which has
been entered into for the sale or disposition of such Subsidiary or its assets,
provided  such sale or disposition otherwise complies with this Agreement,

 42
 

(x)            the subordination (pursuant to its
terms) in right and priority of payment of any Debt owed by any Subsidiary (the
“Indebted Subsidiary”) to the Guarantor or any other Subsidiary, to any
other Debt of such Indebted Subsidiary, provided  that (A) such Debt is permitted under
this Agreement and (B) the Guarantor’s board of directors has determined, in
good faith, at the time of the creation of such encumbrance or restriction,
that such encumbrance or restriction could not, based upon the facts and
circumstances in existence at the time, reasonably be expected to have a
Material Adverse Effect,

(xi)           provisions governing Preferred Stock
issued by a Subsidiary,

(xii)          provisions contained in instruments or
agreements evidencing or governing (A) Nonrecourse Debt or (B) other Debt of a
Subsidiary incurred to finance the acquisition or construction of fixed or
capital assets to the extent, in the case of sub-clause (B), such instrument or
agreement prohibits transfers of the assets financed with such Debt, and

(xiii)         provisions contained in debt
instruments, obligations or other agreements of any Subsidiary which are not
otherwise permitted pursuant to clauses (i) through (xii) of this Section 5.10,
provided  that the aggregate investment of the Guarantor in all such
Subsidiaries (determined in accordance with GAAP) shall at no time exceed the
greater of (a) $300,000,000 or (b) 3% of Consolidated Tangible Assets.

The provisions of this Section 5.10 shall not prohibit
(x) Liens not prohibited by Section 5.07 or (y) restrictions on the sale or
other disposition of any property securing Debt of any Subsidiary, provided  such
Debt is otherwise permitted by this Agreement.

Section
5.11         Transactions with Affiliates.  The Guarantor will not, and will not permit
any Subsidiary to, directly or indirectly, pay any funds to or for the account
of, make any investment (whether by acquisition of Stock or indebtedness, by
loan, advance, transfer of property, guarantee or other agreement to pay,
purchase or service, directly or indirectly, any Debt, or otherwise) in, lease,
sell, transfer or otherwise dispose of any assets, tangible or intangible, to,
or participate in, or effect any transaction in connection with any joint
enterprise or other joint arrangement with, any Affiliate (collectively, “Affiliate Transactions”);
provided, however, that the foregoing provisions of this
Section 5.11 shall not prohibit the Guarantor or any of its Subsidiaries from:

(i)          engaging in any
Affiliate Transaction between or among (x) the Guarantor and any Subsidiary or
Subsidiaries or (y) two or more Subsidiaries,

(ii)         engaging in any of
the Separation Transactions, including any transactions pursuant to the
Spin-Off Agreements,

(iii)        declaring or paying
any dividends and distributions on any shares of the Guarantor’s Stock,
including any dividend or distribution payable in shares of the Guarantor’s
Stock or Stock Equivalents,

 43

(iv)       making any payments on
account of the purchase, redemption, retirement or acquisition of (x) any
shares of the Guarantor’s Stock or (y) any option, warrant or other right to
acquire shares of the Guarantor’s Stock, including any payment payable in shares
of the Guarantor’s Stock or Stock Equivalents,

(v)        declaring or paying any
dividends or distributions on Stock of any Subsidiary held by the Guarantor or
another Subsidiary,

(vi)       making sales to or
purchases from any Affiliate and, in connection therewith, extending credit or
making payments, or from making payments for services rendered by any
Affiliate, if such sales or purchases are made or such services are rendered in
the ordinary course of business and on terms and conditions at least as favorable
to the Guarantor or such Subsidiary as the terms and conditions which the
Guarantor would reasonably expect to be obtained in a similar transaction with
a Person which is not an Affiliate at such time,

(vii)      making payments of
principal, interest and premium on any Debt of the Guarantor or such Subsidiary
held by an Affiliate if the terms of such Debt are at least as favorable to the
Guarantor or such Subsidiary as the terms which the Guarantor would reasonably
expect to have been obtained at the time of the creation of such Debt from a
lender which was not an Affiliate,

(viii)     participating in, or
effecting any transaction in connection with, any joint enterprise or other
joint arrangement with any Affiliate if the Guarantor or such Subsidiary
participates in the ordinary course of its business and on a basis no less
advantageous than the basis on which such Affiliate participates,

(ix)        paying or granting
reasonable compensation, indemnities, reimbursements and benefits to any
director, officer, employee or agent of the Guarantor or any Subsidiary, or

(x)         engaging in any
Affiliate Transaction not otherwise addressed in subsections (i) through (ix)
of this Section 5.11, the terms of which are not less favorable to the
Guarantor or such Subsidiary than those that the Guarantor or such Subsidiary
would reasonably expect to be obtained in a comparable transaction at such time
with a Person which is not an Affiliate.

Section
5.12         Subsidiary Guarantors.  The Borrower will cause each Subsidiary of
the Borrower that now or hereafter Guarantees any Material Debt of the Borrower
for or in respect of borrowed money (other than Debt of the Borrower to any
other Subsidiary) to promptly thereafter (and in any event within 30 days
of executing such Guarantee) cause such Subsidiary to (a) become a Subsidiary
Guarantor by executing and delivering to the Administrative Agent a Subsidiary
Guaranty, and (b) deliver to the Administrative Agent documents of the types
referred to in Section 4.01(d) and favorable opinions of counsel to such
Subsidiary (which shall cover, among other things, the legality, validity,
binding effect and 

 44
 

enforceability of the Subsidiary Guaranty of
such Subsidiary), all in form, content and scope reasonably satisfactory to the
Administrative Agent.

ARTICLE
VI

Events of
Default

If any of the following events (“Events of Default”)
shall occur:

(a)           the
Borrower shall fail to pay any principal of any Loan when and as the same shall
become due and payable, whether at the due date thereof or at a date fixed for prepayment
thereof or otherwise;

(b)           the
Borrower shall fail to pay any interest on any Loan or any fee or any other
amount (other than an amount referred to in clause (a) of this Article) payable
under this Agreement or the other Loan Documents, when and as the same shall
become due and payable, and such failure shall continue unremedied for a period
of five Business Days;

(c)           any
representation or warranty made or deemed made by or on behalf of the Guarantor
or any Subsidiary in or in connection with this Agreement or the other Loan
Documents or any amendment or modification hereof or thereof or waiver
hereunder or thereunder, or in any report, certificate or financial statement
furnished pursuant to or in connection with this Agreement or any other Loan Document
or any amendment or modification hereof or thereof or waiver hereunder or
thereunder, shall prove to have been incorrect in any material respect when
made or deemed made;

(d)           either
Obligor shall fail to observe or perform any covenant, condition or agreement
contained in (i) Section 5.06, 5.07, 5.08, 5.10, 5.11 or 5.12 and such
failure shall not be remedied within five Business Days after any Responsible
Officer obtains knowledge thereof or (ii) Section 5.09;

(e)           either
Obligor shall fail to observe or perform any covenant, condition or agreement
contained in this Agreement or the other Loan Documents (other than those
specified in clause (a), (b) or (d) of this Article), and such failure shall
continue unremedied for a period of 30 days after notice thereof from the
Administrative Agent to the Guarantor (which notice will be given at the
request of any Lender);

(f)            the
Guarantor or any Subsidiary shall fail to make any payment  in respect of any Material Debt, when and as
the same shall become due and payable, and such failure shall continue beyond
any applicable grace period (but in any event, in the case of interest, fees or
other amounts other than principal, for a period of at least five Business
Days); provided that this clause (f) shall not apply to any Existing
Indenture Covered Default;

(g)           any
event or condition occurs that results in any Material Debt becoming due prior
to its scheduled maturity; provided that this clause (g) shall not apply
to (i) any Existing Indenture Debt that becomes due as a result of an
Existing Indenture Covered Default or 

 45
 

as a result of any offer to repurchase or redemption of any Existing
Indenture Debt, (ii) secured Debt that becomes due as a result of the voluntary
sale or transfer of the property or assets securing such Debt, (iii) any
conversion, repurchase or redemption of any Material Debt scheduled by the
terms thereof to occur on a particular date, any conversion of any Material
Debt initiated by a holder thereof pursuant to the terms thereof or any optional
prepayment, repurchase or redemption of any Material Debt, in each case not
subject to any contingent event or condition related to the creditworthiness,
financial performance or financial condition of the Guarantor or any Subsidiary
or (iv) any repurchase or redemption of any Material Debt pursuant to any
put option exercised by the holder of such Material Debt; provided, that
such put option is exercisable at times specified in the terms of the Material
Debt and not by its terms solely as a result of any contingent event or
condition related to the creditworthiness, financial performance or financial
condition of the Guarantor or the applicable Subsidiaries;

(h)           an
involuntary proceeding shall be commenced or an involuntary petition shall be
filed seeking (i) liquidation, winding up, reorganization or other relief
in respect of the Guarantor or any Significant Subsidiary or its debts, or of a
substantial part of its assets, under any bankruptcy, insolvency, receivership
or similar law of any jurisdiction now or hereafter in effect or (ii) the
appointment of a receiver, trustee, custodian, sequestrator, conservator or
similar official for the Guarantor or any Significant Subsidiary or for a
substantial part of its respective assets, and, in any such case, such
proceeding or petition shall continue undismissed for 60 days or an order or
decree approving or ordering any of the foregoing shall be entered;

(i)            the
Guarantor or any Significant Subsidiary shall (i) voluntarily commence any
proceeding or file any petition seeking liquidation, winding up, reorganization
or other relief under any bankruptcy, insolvency, receivership or similar law
of any jurisdiction now or hereafter in effect, (ii) consent to the
institution of, or fail to contest in a timely and appropriate manner, any
proceeding or petition described in clause (h) of this Article,
(iii) apply for or consent to the appointment of a receiver, trustee,
custodian, sequestrator, conservator or similar official for the Guarantor or
any Significant Subsidiary or for a substantial part of its respective assets,
(iv) file an answer admitting the material allegations of a petition filed
against it in any such proceeding, (v) make a general assignment for the
benefit of creditors or (vi) take any action for the purpose of effecting any
of the foregoing;

(j)            the
Guarantor or any Significant Subsidiary shall admit in writing its inability or
fail generally to pay its debts as they become due;

(k)           one
or more judgments or orders for the payment of money in an aggregate amount in
excess of $30,000,000 (after deducting amounts covered by insurance, except to
the extent that the insurer providing such insurance has declined such coverage
or indemnification) shall be rendered against the Guarantor or any Subsidiary
or any combination thereof and, within 60 days after entry thereof, such
judgment or order is not discharged or execution thereof stayed pending appeal,
or within 60 days after the expiration of any such stay, such judgment or order
is not discharged;

 46
 

(l)            an ERISA Event shall have occurred
that, when taken together with all other ERISA Events that have occurred, could
reasonably be expected to result in a Material Adverse Effect;

(m)          (x)
any person or group of persons (within the meaning of Section 13 or 14 of
the Securities Exchange Act of 1934, as amended) shall have acquired beneficial
ownership (within the meaning of Rule 13d-3 promulgated by the SEC under said
Act) of 40% or more of the outstanding shares of common stock of the Guarantor;
or (y) on the last day of any period of twelve consecutive calendar months, a
majority of members of the board of directors of the Guarantor shall no longer
be composed of individuals (i) who were members of said board of directors
on the first day of such twelve consecutive calendar month period or
(ii) whose election or nomination to said board of directors was approved
by individuals referred to in clause (i) above constituting at the time of
such election or nomination at least a majority of said board of directors;

(n)           any
Loan Document shall cease to be valid and enforceable against any Obligor or
Subsidiary Guarantor party thereto (except for the termination of a Subsidiary
Guaranty in accordance with its terms), or any Obligor or Subsidiary Guarantor
shall so assert in writing; or

(o)           the
Borrower (or any permitted successor pursuant to Section 5.08(a)) shall cease
to be a Wholly-Owned Consolidated Subsidiary of the Guarantor;

then, and in every such event (other than an event
described in clause (h) or (i) of this Article with respect to the
Borrower or the Guarantor), and at any time thereafter during the continuance
of such event, the Administrative Agent shall, at the request of, or may, with
the consent of, the Required Lenders, by notice to the Borrower, take either or
both of the following actions, at the same or different times:  (i) terminate the Commitments, and
thereupon the Commitments shall terminate immediately, and (ii) declare
the unpaid principal amount of all outstanding Loans, all interest accrued and
unpaid thereon, and all other amounts owing or payable hereunder or under any
other Loan Document to be immediately due and payable, and thereupon the
principal amount of all such outstanding Loans together with all such interest
and other amounts so declared to be due and payable, shall become due and
payable immediately, without presentment, demand, protest or other notice of
any kind, all of which are hereby expressly waived by the Obligors; and in case
of any event described in clause (h) or (i) of this Article with respect
to the Borrower or the Guarantor, the Commitments shall automatically terminate
and the principal of the Loans then outstanding, together with accrued interest
thereon and all fees and other obligations of the Borrower accrued under any
Loan Document, shall automatically become due and payable, without presentment,
demand, protest or other notice of any kind, all of which are hereby expressly
waived by the Obligors.

 47
 

ARTICLE
VII

The
Administrative Agent

Each of the Lenders hereby irrevocably appoints the
Administrative Agent as its agent and authorizes the Administrative Agent to
take such actions on its behalf and to exercise such powers as are delegated to
the Administrative Agent by the terms hereof, together with such actions and powers
as are reasonably incidental thereto.

The Person serving as the Administrative Agent
hereunder shall have the same rights and powers in its capacity as a Lender as
any other Lender and may exercise the same as though it were not the
Administrative Agent and the term “Lender” or “Lenders” shall, unless otherwise
expressly indicated or unless the context otherwise requires, include the
Person serving as the Administrative Agent hereunder in its individual
capacity.  Such Person and its Affiliates
may accept deposits from, lend money to, act as the financial advisor or in any
other advisory capacity for and generally engage in any kind of business with
the Guarantor or any Subsidiary or other Affiliate thereof as if such Person
were not the Administrative Agent hereunder and without any duty to account
therefor to the Lenders.

The Administrative Agent shall not have any duties or
obligations except those expressly set forth herein.  Without limiting the generality of the
foregoing, (a) the Administrative Agent shall not be subject to any fiduciary
or other implied duties, regardless of whether a Default has occurred and is
continuing, (b) the Administrative Agent shall not have any duty to take any
discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated hereby that the Administrative Agent
is required to exercise as directed in writing by the Required Lenders (or such
other number or percentage of the Lenders as shall be expressly provided for in
Section 10.02), provided that the Administrative Agent shall not be
required to take any action that, in its opinion or the opinion of its counsel,
may expose the Administrative Agent to liability or that is contrary to this
Agreement, the other Loan Documents or applicable law, and (c) except as
expressly set forth herein, the Administrative Agent shall not have any duty to
disclose, and shall not be liable for the failure to disclose, any information
relating to the Guarantor or any of its Subsidiaries or any of their respective
Affiliates that is communicated to or obtained by the Person serving as the
Administrative Agent or any of its Affiliates in any capacity.  The Administrative Agent shall not be liable
for any action taken or not taken by it (i) with the consent or at the
request of the Required Lenders (or such other number or percentage of the
Lenders as shall be necessary, or as the Administrative Agent shall believe in
good faith shall be necessary, under the circumstances as provided in Section
10.02) or (ii) in the absence of its own gross negligence or willful
misconduct.  The Administrative Agent
shall be deemed not to have knowledge of any Default unless and until notice
describing such Default is given to the Administrative Agent by the Borrower or
a Lender and the Administrative Agent shall not be responsible for or have any
duty to ascertain or inquire into (i) any statement, warranty or
representation made in or in connection with this Agreement or the other Loan
Documents, (ii) the contents of any certificate, report or other document
delivered hereunder or in connection herewith, (iii) the performance or
observance of any of the covenants, agreements or other terms or conditions set
forth herein or therein or the occurrence of any Default, (iv) the
validity, enforceability, effectiveness or genuineness of this Agreement or any
other agreement, 

 48
 

instrument or document or (v) the satisfaction of
any condition set forth in Article IV or elsewhere herein, other than to
confirm receipt of items expressly required to be delivered to the
Administrative Agent.

The Administrative Agent shall be entitled to rely
upon, and shall not incur any liability for relying upon, any notice, request,
certificate, consent, statement, instrument, document or other writing
(including any electronic message, Internet or intranet website posting or
other distribution) believed by it to be genuine and to have been signed, sent
or otherwise authenticated by the proper Person.  The Administrative Agent also may rely upon
any statement made to it orally or by telephone and believed by it to have been
made by the proper Person, and shall not incur any liability for relying
thereon.  In determining compliance with
any condition hereunder to the making of a Loan that by its terms must be
fulfilled to the satisfaction of a Lender, the Administrative Agent may presume
that such condition is satisfactory to such Lender unless the Administrative
Agent shall have received notice to the contrary from such Lender prior to the
making of such Loan.  The Administrative
Agent may consult with legal counsel (who may be counsel for the Borrower),
independent accountants and other experts selected by it, and shall not be
liable for any action taken or not taken by it in accordance with the advice of
any such counsel, accountants or experts.

The Administrative Agent may perform any and all of
its duties and exercise its rights and powers hereunder by or through any one
or more sub-agents appointed by the Administrative Agent.  The Administrative Agent and any such sub-agent
may perform any and all of its duties and exercise its rights and powers by or
through their respective Related Parties. 
The exculpatory provisions of this Article shall apply to any such sub-agent
and to the Related Parties of the Administrative Agent and any such sub-agent,
and shall apply to their respective activities in connection with the
syndication of the credit facilities provided for herein as well as activities
as Administrative Agent.

The Administrative Agent may at any time give notice
of its resignation to the Lenders and the Borrower.  Upon receipt of any such notice of
resignation, the Required Lenders shall have the right, in consultation with
the Borrower, to appoint a successor, which shall be a commercial bank with an
office in New York, New York, or an Affiliate of any such commercial bank with
an office in New York, New York.  If no
such successor shall have been so appointed by the Required Lenders and shall have
accepted such appointment within 30 days after the retiring Administrative
Agent gives notice of its resignation, then the retiring Administrative Agent
may on behalf of the Lenders, appoint a successor Administrative Agent meeting
the qualifications set forth above, provided that if the Administrative
Agent shall notify the Borrower and the Lenders that no qualifying Person has
accepted such appointment, then such resignation shall nonetheless become
effective in accordance with such notice and (1) the retiring
Administrative Agent shall be discharged from its duties and obligations
hereunder and under the other Loan Documents and (2) all payments,
communications and determinations provided to be made by, to or through the
Administrative Agent shall instead be made by or to each Lender directly, until
such time as the Required Lenders appoint a successor Administrative Agent as
provided for above in this paragraph. 
The successor shall be consented to by the Borrower at all times other
than during the existence of an Event of Default (which consent of the Borrower
shall not be unreasonably withheld or delayed). 
Upon the acceptance of a successor’s 

 49
 

appointment as Administrative Agent hereunder, such
successor shall succeed to and become vested with all of the rights, powers,
privileges and duties of the retiring (or retired) Administrative Agent, and
the retiring Administrative Agent shall be discharged from all of its duties
and obligations hereunder (if not already discharged therefrom as provided
above in this paragraph).  The fees
payable by the Borrower to a successor Administrative Agent shall be the same
as those payable to its predecessor unless otherwise agreed between the
Borrower and such successor.  After the
retiring Administrative Agent’s resignation hereunder and under the other Loan
Documents, the provisions of this Article and Section 10.03 shall continue
in effect for the benefit of such retiring Administrative Agent, its sub-agents
and their respective Related Parties in respect of any actions taken or omitted
to be taken by any of them while the retiring Administrative Agent was acting
as Administrative Agent.

Each Lender acknowledges that it has, independently
and without reliance upon the Administrative Agent or any other Lender or any
of their Related Parties and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into
this Agreement.  Each Lender also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender or any of their Related Parties and
based on such documents and information as it shall from time to time deem
appropriate, continue to make its own decisions in taking or not taking action
under or based upon this Agreement or any related agreement or any document
furnished hereunder or thereunder.

The Lenders hereby irrevocably authorize the
Administrative Agent, at its option and in its discretion, to release any
Subsidiary Guarantor from its obligations under such Subsidiary Guarantor’s
Subsidiary Guaranty (i) if such Person ceases to exist or to be a Subsidiary
(or substantially contemporaneously with such release will cease to exist or to
be a Subsidiary), in each case as a result of a transaction permitted
hereunder, or (ii) otherwise in accordance with Section 4.06(b) of the relevant
Subsidiary Guaranty.

Anything herein to the contrary notwithstanding, none
of the Global Coordinators, Joint Bookrunners or Joint Lead Arrangers listed on
the cover page hereof shall have any powers, duties or responsibilities under
this Agreement, except in its capacity, as applicable, as the Administrative
Agent or a Lender hereunder.

ARTICLE
VIII

Guarantee

Section
8.01         The Guarantee.  The
Guarantor hereby unconditionally and irrevocably guarantees the full and punctual
payment when due (whether at stated maturity, by mandatory prepayment, by
acceleration or otherwise) of the principal of and interest on the Loans, the
Notes and all other amounts whatsoever at any time or from time to time payable
or becoming payable under this Agreement or the other Loan Documents.  This is a continuing guarantee and a
guarantee of payment and not merely of collection.  Upon failure by the Borrower to pay
punctually any such amount when due as aforesaid, the Guarantor shall 

 50
 

forthwith on demand pay the amount not so
paid at the place and in the manner specified in this Agreement.

Section
8.02         Guarantee Unconditional. 
The obligations of the Guarantor hereunder shall be unconditional and
absolute, and, without limiting the generality of the foregoing, shall not be
released, discharged or otherwise affected, at any time by:

(a)           any
extension, renewal, settlement, compromise, waiver or release in respect of any
obligation of the Borrower under any Loan Document, by operation of law or otherwise;

(b)           any
modification or amendment of or supplement to any Loan Document;

(c)           any
release, impairment, non-perfection or invalidity of any direct or indirect
security for any obligation of the Borrower under any Loan Document;

(d)           any
change in the corporate existence, structure or ownership of the Borrower, or
any insolvency, bankruptcy, reorganization or other similar proceeding
affecting the Borrower or its assets or any resulting release or discharge of
any obligation of the Guarantor or the Borrower contained in any Loan Document;

(e)           the
existence of any claim, set-off or other rights which the Guarantor may have at
any time against the Borrower, the Administrative Agent, any Lender or any
other Person, whether in connection herewith or any unrelated transactions, provided
that nothing herein shall prevent the assertion of any such claim by separate
suit or compulsory counterclaim;

(f)            any
invalidity or unenforceability relating to or against the Borrower for any
reason of any Loan Document, or any provision of applicable law or regulation
purporting to prohibit the payment by the Borrower, in the currency and funds
and at the time and place specified herein, of any amount payable by it under
any Loan Document; or

(g)           any
other act or omission to act or delay of any kind by the Borrower, the
Administrative Agent, any Lender or any other Person, or any other circumstance
whatsoever which might, but for the provisions of this paragraph, constitute a
legal or equitable discharge or defense of a guarantor or surety.

Section
8.03         Discharge Only upon Payment in Full; Reimbursement in Certain
Circumstances.  The guarantee
and other agreements in this Article VIII shall remain in full force and effect
until the Commitments shall have terminated and the principal of and interest
on the Loans, the Notes and all other amounts whatsoever payable by the
Borrower under any Loan Document shall have been finally paid in full.  If at any time any payment of any such amount
payable by the Borrower under any Loan Document is rescinded or must be
otherwise restored or returned upon the insolvency, bankruptcy or
reorganization of the Borrower or otherwise, the Guarantor’s obligations
hereunder with respect to such payment shall be reinstated at such time as
though such payment had been due but not made at such time.

 51
 

Section
8.04         Waiver by the Guarantor.  The Guarantor irrevocably waives acceptance
hereof, presentment, demand, protest and any notice not provided for herein, as
well as any requirement that at any time any action be taken by any Person
against the Borrower or any other Person.

Section
8.05         Subrogation.  Upon
making any payment hereunder with respect to the Borrower, the Guarantor shall
be subrogated to the rights of the payee against the Borrower with respect to
such payment; provided that the Guarantor shall not enforce any payment
by way of subrogation until all amounts of principal of and interest on the
Loans and all other amounts payable by the Borrower under any Loan Document has
been paid in full and the Commitments have been terminated.

Section
8.06         Stay of Acceleration. 
In the event that acceleration of the time for payment of any amount
payable by the Borrower under any Loan Document is stayed upon insolvency,
bankruptcy or reorganization of the Borrower, all such amounts otherwise
subject to acceleration under the terms of this Agreement shall nonetheless be
payable by the Guarantor hereunder forthwith on demand by the Required Lenders.

ARTICLE
IX

Yield
Protection, Illegality and Taxes

Section
9.01         Alternate Rate of Interest. 
If prior to the commencement of any Interest Period for a Eurodollar
Borrowing:

(a)           the
Administrative Agent determines (which determination shall be conclusive absent
manifest error) that adequate and reasonable means do not exist for
ascertaining the LIBO Rate for such Interest Period; or

(b)           the
Administrative Agent is advised by the Required Lenders that the LIBO Rate for
such Interest Period (together with any amounts payable pursuant to
Section 9.03 or 9.05) will not adequately and fairly reflect the cost to
such Lenders of making or maintaining their Loans included in such Borrowing
for such Interest Period;

then the Administrative Agent shall give notice
thereof to the Borrower and the Lenders by telephone or facsimile or electronic
mail as promptly as practicable thereafter and, until the Administrative Agent
notifies the Borrower and the Lenders that the circumstances giving rise to
such notice no longer exist, (i) any Interest Election Request that
requests the conversion of any Borrowing to, or continuation of any Borrowing
as, a Eurodollar Borrowing shall be ineffective and (ii) if any Borrowing
Request requests a Eurodollar Borrowing, such Borrowing shall be made as an ABR
Borrowing.  In the case of clause (b)
above, during any such period of suspension each Lender shall, from time to
time upon request from the Borrower, certify its cost of funds for each
Interest Period to the Borrower and the Administrative Agent as soon as
practicable (but in any event not later than 10 Business Days after any such
request).

 52
 

Section 9.02         Illegality. 
Notwithstanding any other provision of any Loan Document, if any Lender
shall notify the Administrative Agent (and provide to the Borrower an opinion
of counsel to the effect) that the introduction of or any change in or in the
interpretation of any law or regulation makes it unlawful, or any central bank
or other governmental authority asserts that it is unlawful, for such Lender or
its lending office for Eurodollar Borrowings to perform its obligations
hereunder to make Eurodollar Loans or to fund or maintain Eurodollar Loans
hereunder, (i) each Eurodollar Loan of such Lender will automatically,
upon such demand, convert into an ABR Loan that bears interest at the rate set
forth in Section 2.12(a) and (ii) the obligation of such Lender to
make or continue, or to convert ABR Loans into, Eurodollar Loans shall be
suspended until the Administrative Agent shall notify the Borrower and such
Lender that the circumstances causing such suspension no longer exist and such
Lender shall make the ABR Loans in the amount and on the dates that it would
have been requested to make Eurodollar Loans had no such suspension been in
effect.

Section
9.03         Increased Costs.

(a)           If
any Change in Law shall:

(i)          impose, modify or
deem applicable any reserve, special deposit or similar requirement against
assets of, deposits with or for the account of, or credit extended by, any
Lender; or

(ii)         impose on any Lender
or the London interbank market any other condition affecting any Loan Document
or Eurodollar Loans made by such Lender;

and the result of any of the foregoing has been to
increase the cost to such Lender of making or maintaining any Eurodollar Loan
(or of maintaining its obligation to make any such Loan) or to reduce the
amount of any sum received or receivable by such Lender hereunder (whether of
principal, interest or otherwise) (excluding any such increased costs or
reduction in amount resulting from Taxes or Other Taxes, as to which
Section 9.05 shall govern, or resulting from reserve commitments
contemplated by Section 9.03(c)), then from time to time within 30 days of
written demand therefor (subject to Section 9.06) the Borrower will pay to
such Lender such additional amount or amounts as will compensate such Lender
for such additional costs incurred or reduction suffered.

(b)           If
any Lender determines that any Change in Law regarding capital requirements has
the effect of reducing the rate of return on such Lender’s capital or on the
capital of such Lender’s holding company, if any, as a consequence of any Loan
Document or the Loans made by such Lender, to a level below that which such
Lender or such Lender’s holding company could have achieved but for such Change
in Law (taking into consideration such Lender’s policies and the policies of
such Lender’s holding company with respect to capital adequacy), then from time
to time within 30 days of written demand therefor (subject to
Section 9.06) the Borrower will pay to such Lender such additional amount
or amounts as will compensate such Lender or such Lender’s holding company for
any such reduction suffered.

 53

(c)           At
any time that any Lender is required to establish or maintain reserves in
respect of its Eurodollar Loans under FRB Regulation D, such Lender may require
the Borrower to pay, contemporaneously with each payment of interest on a
Eurodollar Loan made by such Lender, additional interest on such Eurodollar
Loan at a rate per annum determined by such Lender be sufficient to compensate
it for the cost to it of maintaining, or the reduction in its total return in
respect of, such Eurodollar Loan, up to but not exceeding the excess of (i) (A)
the applicable LIBO Rate divided by (B) one minus the Eurodollar Reserve
Percentage, minus (ii) the applicable LIBO Rate.  Any Lender wishing to require payment of such
additional interest (x) shall so notify the Borrower and the
Administrative Agent, in which case such additional interest on the Eurodollar
Loans of such Lender shall be payable to such Lender at the time and place
indicated at which interest otherwise is payable on such Eurodollar Loan, with
respect to each Interest Period commencing at least three Business Days after
the giving of such notice and (y) shall notify the Borrower at least five
Business Days prior to each date on which interest is payable on the Eurodollar
Loans of the amount then due it under this Section.

(d)           Failure
or delay on the part of any Lender to demand compensation pursuant to this
Section shall not constitute a waiver of such Lender’s right to demand
such compensation; provided that the Borrower shall not be required to
compensate a Lender pursuant to this Section for any increased costs or
reductions incurred more than 90 days prior to the date that such Lender
notifies the Borrower of the Change in Law giving rise to such increased costs
or reductions and of such Lender’s intention to claim compensation therefor.

Section
9.04         Break Funding Payments. 
In the event of (a) the payment of any principal of any Eurodollar Loan
other than on the last day of an Interest Period applicable thereto (including
as a result of an Event of Default), (b) the conversion of any Eurodollar Loan
other than on the last day of the Interest Period applicable thereto, (c) the
failure to borrow, convert, continue or prepay any Eurodollar Loan on the date
specified in any oral or written notice given pursuant hereto or (d) the
assignment of any Eurodollar Loan other than on the last day of the Interest
Period applicable thereto as a result of a request by the Borrower pursuant to
Section 10.04(e), then, in any such event, the Borrower shall compensate each
Lender for the loss, cost and expense attributable to such event (including any
loss or expense arising from the redeployment of funds obtained by it to
maintain such Eurodollar Loan or from fees payable to terminate the deposits
from which such funds were obtained, but excluding any loss of anticipated
profits) within 10 days of written demand therefor (subject to
Section 9.06).

Section
9.05         Taxes.

(a)           Any
and all payments by or on account of any obligation of the Borrower under any
Loan Document shall be made free and clear of and without deduction for any
Indemnified Taxes or Other Taxes; provided that if the Borrower shall be
required to deduct any Indemnified Taxes or Other Taxes from such payments,
then (i) the sum payable shall be increased as necessary so that after
making all required deductions (including deductions applicable to additional
sums payable under this Section) the Administrative Agent or applicable Lender
(as the case may be) receives an amount equal to the sum it would have received
had no such deductions been made, (ii) the Borrower shall make such
deductions and (iii) the Borrower 

 54
 

shall pay the full amount deducted to the relevant Governmental
Authority in accordance with applicable law.

(b)           In
addition, the Borrower shall pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law.

(c)           The
Borrower shall pay and indemnify, defend and hold harmless the Administrative
Agent and each Lender within 30 days after written demand therefor (subject to
Section 9.06), for the full amount of any Indemnified Taxes or Other Taxes
required to be paid by the Administrative Agent or such Lender, as the case may
be, on or with respect to any payment by or on account of any obligation of the
Borrower under any Loan Document (including Indemnified Taxes or Other Taxes
imposed or asserted on or attributable to amounts payable under this Section)
and any penalties, interest and reasonable expenses arising therefrom or with
respect thereto, whether or not such Indemnified Taxes or Other Taxes were
correctly or legally imposed or asserted by the relevant Governmental
Authority.  As soon as practicable after
any payment of Indemnified Taxes or Other Taxes to a Governmental Authority by
the Administrative Agent or such Lender, the Administrative Agent or such
Lender, as the case may be, shall deliver to the Borrower the original or a
certified copy of a receipt issued by such Governmental Authority evidencing
such payment or other evidence of such payment reasonably satisfactory to the
Borrower.

(d)           As
soon as practicable after any payment of Indemnified Taxes or Other Taxes by
the Borrower to a Governmental Authority, the Borrower shall deliver to the
Administrative Agent the original or a certified copy of a receipt issued by
such Governmental Authority evidencing such payment or other evidence of such
payment reasonably satisfactory to the Administrative Agent.

(e)           Any
Foreign Lender that is entitled to an exemption from or reduction of United
States withholding tax with respect to payments under this Agreement shall
deliver to the Borrower (with a copy to the Administrative Agent), at the time
or times prescribed by applicable law, such properly completed and executed
documentation prescribed by applicable law or reasonably requested by the
Borrower as will permit such payments to be made without withholding or at a
reduced rate.

(f)            If
the Administrative Agent or a Lender determines, in its good faith judgment,
that it has received a refund of any Taxes or Other Taxes as to which it has
been indemnified by the Borrower or with respect to which the Borrower has paid
additional amounts pursuant to this Section 9.05, it shall pay over such
refund to the Borrower (but only to the extent of indemnity payments made, or
additional amounts paid, by the Borrower under this Section 9.05 with
respect to the Taxes or Other Taxes giving rise to such refund), net of all
out-of-pocket expenses of the Administrative Agent or such Lender and without
interest (other than any interest paid by the relevant Governmental Authority
with respect to such refund); provided that the Borrower, upon the
request of the Administrative Agent or such Lender, agrees to repay the amount
paid over to the Borrower (plus any penalties, interest or other charges
imposed by the relevant Governmental Authority) to the Administrative Agent or
such Lender in the event the Administrative Agent or such Lender is required to
repay such refund to such Governmental 

 55
 

Authority.  This
Section shall not be construed to require the Administrative Agent or any
Lender to make available its tax returns (or any other information relating to
its taxes which it deems confidential) to the Borrower or any other Person.

Section
9.06         Matters Applicable to all Requests for Compensation.  If any Lender or the Administrative Agent is
claiming compensation under Section 9.03, 9.04 or 9.05, it shall deliver
to the Administrative Agent, who shall deliver to the Borrower
contemporaneously with the demand for payment, a certificate setting forth in
reasonable detail the calculation of any additional amount or amounts to be
paid to it hereunder and the basis used to determine such amounts and such
certificate shall be conclusive in the absence of manifest error.  In determining such amount, such Lender or the
Administrative Agent may use any reasonable averaging and attribution
methods.  In any such certificate
claiming compensation under Section 9.03(b), such Lender shall certify
that the claim for additional amounts referred to therein is generally consistent
with such Lender’s treatment of similarly situated customers of such Lender
whose transactions with such Lender are similarly affected by the change in
circumstances giving rise to such payment, but such Lender shall not be
required to disclose any confidential or proprietary information therein.  This Section shall not be construed to
require the Administrative Agent or any Lender to make available its tax
returns (or any other information relating to its taxes which it deems
confidential) to the Borrower or any other Person.

Section
9.07         Mitigation Obligations.  If
any Lender requests compensation under Section 9.03, or if the Borrower is
required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 9.05, then
such Lender shall use reasonable efforts to designate a different lending
office for funding or booking its Loans hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or affiliates, if, in
the judgment of such Lender, such designation or assignment (i) would
eliminate or reduce amounts payable pursuant to Section 9.03 or 9.05, as
the case may be, in the future and (ii) would not subject such Lender to
any unreimbursed cost or expense and would not otherwise be disadvantageous to
such Lender.  The Borrower hereby agrees
to pay all reasonable costs and expenses incurred by any Lender in connection
with any such designation or assignment.

ARTICLE X

Miscellaneous

Section
10.01       Notices.

(a)           Except
in the case of notices and other communications expressly permitted to be given
by telephone or by other means of communication (and subject to paragraph (b)
below), all notices and other communications provided for herein shall be in
writing and shall be delivered by hand or overnight courier service, mailed by
certified or registered mail or sent by facsimile or electronic mail, as
follows:

(i)          if to the Borrower

 56
 

Tyco International Group
S.A.

17, bd Grande-Duchesse Charlotte

L-1331 Luxembourg

Attn:  Kevin O’Kelly-Lynch

Tel: +352 46-43-40-351

Fax: +352 46-43-51

email: kokellylynch@tyco.com

with a copy to:

Tyco International Management Company

9 Roszel Rd.

Princeton, NJ  08540

Attention:  General Counsel

Tel:  609-720-4200

Fax:  609-720-4326

(ii)         if to the Guarantor

Tyco International Ltd.

90 Pitts Bay Road, Second Floor

Pembroke HM 08, Bermuda

Attention: Executive Vice President and General
Counsel

Tel:  441-292-8674

Fax:
441-295-9647

(iii)        if to the
Administrative Agent, to its applicable address set forth on Schedule 10.01;

and

(iv)       if to any other Lender,
to it at its address (or facsimile number or electronic mail address telephone
number) set forth on Schedule 10.01 or in the Assignment and Assumption
pursuant to which such Lender becomes a party to this Agreement or to such
other address, facsimile number, electronic mail address or telephone number as
shall be designated by such party in a notice to the Borrower and the
Administrative Agent.

(b)           Notices
and other communications to the Administrative Agent and the Lenders hereunder
may be delivered or furnished by electronic communications .  In addition to provisions of this Agreement
expressly specifying that notices and other commitments may be delivered telephonically
or electronically, each of the Administrative Agent or the Borrower may, in its
discretion, agree to accept notices and other communications to it hereunder by
electronic communications; provided that approval of such procedures may
be limited to particular notices or communications.

 57
 

(c)           Any party hereto may change its
address or facsimile number or electronic mail address for notices and other
communications hereunder by notice to the other parties hereto.  All notices and other communications given to
any party hereto in accordance with the provisions of this Agreement shall be
deemed to have been given on the date of receipt.

(d)           The
Administrative Agent and the Lenders shall be entitled to rely and act upon any
notices (including telephonic Borrowing Requests and Interest Election
Requests) purportedly given by or on behalf of the Borrower.

Section
10.02       Waivers; Amendments.

(a)           No
failure or delay by the Administrative Agent or any Lender in exercising any
right or power hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power.  The rights and remedies of the Administrative
Agent and the Lenders hereunder are cumulative and are not exclusive of any
rights or remedies that they would otherwise have.  No waiver of any provision of this Agreement
or any other Loan Document or consent to any departure by either Obligor
therefrom shall in any event be effective unless the same shall be permitted by
paragraph (b) of this Section, and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which given.  Without limiting the generality of the
foregoing, the making of a Loan shall not be construed as a waiver of any
Default, regardless of whether the Administrative Agent or any Lender may have
had notice or knowledge of such Default at the time.

(b)           Neither
this Agreement nor the Notes, the Borrower Assumption Agreement, the Guarantor
Assumption Agreement or any Subsidiary Guaranty or any provision hereof or
thereof may be waived, amended or modified except pursuant to an agreement or
agreements in writing entered into by the Obligors, the Subsidiary Guarantors
(to the extent applicable) and the Required Lenders or by the Obligors, the
Subsidiary Guarantors (to the extent applicable) and the Administrative Agent
with the consent of the Required Lenders; provided that no such agreement
shall (i) increase the Commitment of any Lender without the written
consent of such Lender, (ii) reduce the principal amount of any Loan or
reduce the rate of interest thereon, or reduce any fees payable hereunder,
without the written consent of each Lender directly affected thereby,
(iii) postpone the scheduled date of payment of the principal amount of
any Loan or any interest thereon, or any fees payable hereunder, or reduce the
amount of, waive or excuse any such payment, or postpone the scheduled date of
expiration of any Commitment, without the written consent of each Lender
directly affected thereby, (iv) change Section 2.13(b) or (c) in a
manner that would alter the pro rata sharing of payments required thereby,
without the written consent of each Lender, (v) release the Guarantor from its
obligations under Article VIII or any Subsidiary Guarantor which is a
Significant Subsidiary from its obligations under its Subsidiary Guaranty,
without the written consent of each Lender, (vi) change any of the
provisions of this Section or the definition of “Required Lenders”
or any other provision hereof specifying the number or percentage of Lenders
required to waive, amend or modify any rights hereunder or make any
determination or grant any consent hereunder, without the  written consent of each Lender; provided
further that no such agreement shall 

 58
 

amend, modify or otherwise affect the rights or duties of the
Administrative Agent under any Loan Document without the prior written consent
of the Administrative Agent.

Section
10.03       Expenses; Indemnity; Damage
Waiver.

(a)           The
Borrower shall pay (i) all reasonable out of pocket expenses incurred by
the Administrative Agent, the Global Coordinators and their Affiliates,
including the reasonable fees, charges and disbursements of counsel for the
Administrative Agent, in connection with the syndication of the credit
facilities provided for herein, the preparation, negotiation, execution,
delivery and administration of this Agreement and the other Loan Documents or
any amendments, modifications or waivers of the provisions hereof and thereof
(whether or not the transactions contemplated hereby or thereby shall be
consummated), and (ii) while a Default has occurred and is continuing, all
out-of-pocket expenses incurred by the Administrative Agent and the Lenders,
including reasonable fees, charges and disbursements of counsel in connection
with the enforcement or protection of its rights (A) in connection with
this Agreement and the other Loan Documents, including its rights under this
Section, or (B) in connection with the Loans made hereunder, including all
such out-of-pocket expenses incurred during any workout, or
restructuring negotiations in respect of such Loans.

(b)           The
Borrower shall indemnify the Administrative Agent and each Lender, and each
Related Party of any of the foregoing Persons (each such Person being called an
“Indemnitee”) against, and hold each Indemnitee harmless from, any and
all losses, claims, damages, liabilities and related expenses, including the
reasonable fees, charges and disbursements of any counsel for any Indemnitee,
incurred by or asserted against any Indemnitee arising out of, in connection
with, or as a result of any actual or prospective claim, litigation,
investigation or proceeding (whether based on contract, tort or any other
theory and regardless of whether any Indemnitee is a party thereto) relating to
(A) the execution or delivery of this Agreement or any other Loan Document
or any agreement or instrument contemplated hereby or thereby, the performance
by the parties hereto of their respective obligations hereunder or the
consummation of the Transactions or any other transactions contemplated hereby,
(B) any Loan or the use of the proceeds therefrom, (C) any actual or
alleged presence or release of Hazardous Materials on or from any property
owned or operated by the Guarantor or any of its Subsidiaries, or any
Environmental Liability related in any way to the Guarantor or any of its
Subsidiaries; provided that such indemnity shall not, as to any
Indemnitee, be available to the extent that such losses, claims, damages,
liabilities or related expenses (x) have resulted from the gross negligence or
willful misconduct of such Indemnitee, as determined by a court of competent jurisdiction
by final and nonappealable judgment (y) resulted from a breach of the
confidentiality provisions contained in Section 10.14 by such Indemnitee
or (z) resulted from a dispute solely among the Lenders that does not arise
from any Obligor’s or Subsidiary Guarantor’s breach of its obligations under
any Loan Document or applicable law.  If
any claim, litigation, investigation or proceeding is asserted against any
Indemnitee, such Indemnitee shall, to the extent permitted by applicable law or
regulation in the opinion of its counsel, notify the Borrower as soon as
reasonably practicable, but the failure to so promptly notify the Borrower
shall not affect the Borrower’s obligations under this Section unless such
failure materially prejudices the Borrower’s right to participate in the
contest of such claim, litigation, investigation or proceeding, as hereinafter
provided.  If requested by the Borrower
in writing, such Indemnitee 

 59
 

shall make reasonable good faith efforts to contest the validity,
applicability and amount of such claim, litigation, investigation or proceeding
and, except to the extent prohibited by applicable law or regulations or as
would otherwise be unreasonable in the circumstances or contrary to the
internal policies of the Indemnitee as generally applied, shall permit the
Borrower to participate in such contest. 
Any Indemnitee that proposes to settle or compromise any claim,
litigation, investigation or proceeding for which the Borrower may be liable
for payment of indemnity hereunder shall give the Borrower written notice of
the terms of such proposed settlement or compromise reasonably in advance of
settling or compromising such claim or proceeding and shall obtain the Borrower’s
prior written consent (not to be unreasonably withheld).

(c)           To
the extent that the Borrower fails to pay any amount required to be paid by it
to the Administrative Agent or any Related Party thereof under paragraph (a) or
(b) of this Section, each Lender severally agrees to pay to the Administrative
Agent or such Related Party, as the case may be, such Lender’s Applicable
Percentage (determined as of the time that the applicable unreimbursed expense
or indemnity payment is sought) of such unpaid amount; provided that the
unreimbursed expense or indemnified loss, claim, damage, liability or related
expense, as the case may be, was incurred by or asserted against the
Administrative Agent in its capacity as such, or against any Related Party
acting for the Administrative Agent in connection with such capacity.

(d)           To
the fullest extent permitted by applicable law, the Borrower shall not assert,
and hereby waives, any claim against any Indemnitee, on any theory of
liability, for special, indirect, consequential or punitive damages (as opposed
to direct or actual damages) arising out of, in connection with, or as a result
of, this Agreement or any other Loan Document or any agreement or instrument
contemplated hereby or thereby, the Transactions, any Loan or the use of the
proceeds thereof.  No Indemnitee referred
to in paragraph (b) above shall be liable for any damages arising from the use
by unintended recipients of any information or other materials distributed by
it through telecommunications, electronic or other information transmission
systems in connection with this Agreement or the other Loan Documents or the
Transactions.

(e)           All
amounts due under this Section shall be payable not later than 10 Business
Days after written demand therefor.

Section
10.04       Successors and Assigns.

(a)           The
provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns permitted
hereby, except that (i) other than as contemplated by Section 5.08,
neither the Guarantor nor the Borrower may assign or otherwise transfer any of
its rights or obligations hereunder without the prior written consent of the
Administrative Agent and each Lender (and any attempted assignment or transfer
by the Guarantor or the Borrower without such consent shall be null and void)
and (ii) no Lender may assign or otherwise transfer its rights or
obligations hereunder except in accordance with this Section.  Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties
hereto, their respective successors and assigns permitted hereby, Participants
(to the extent provided in paragraph (c) of this Section) and, to the extent 

 60
 

expressly contemplated hereby, the Related Parties of each of the
Administrative Agent, and the Lenders) any legal or equitable right, remedy or
claim under or by reason of this Agreement.

(b)           (i)            Subject to the conditions set forth
in paragraph (b)(ii) below, any Lender may assign to one or more assignees
(other than a natural Person) all or a portion of its rights and obligations
under this Agreement (including all or a portion of its Commitment and the
Loans at the time owing to it) with the prior written consent (such consent not
to be unreasonably withheld) of:

(A)          the
Borrower, provided that no consent of the Borrower shall be required for
an assignment to a Lender, an Affiliate of a Lender, an Approved Fund or, if an
Event of Default under clause (a), (b), (h), (i) or (j) of Article VI has
occurred and is continuing, any other Person (other than a natural person); and

(B)           the
Administrative Agent, provided that no consent of the Administrative
Agent shall be required for an assignment to a Lender, an Affiliate of a Lender
or for an assignment by a Lender to an Approved Fund with respect to such
Lender.

(ii)         Assignments shall be
subject to the following additional conditions:

(A)          except in the case of
an assignment to a Lender or an Affiliate of a Lender or an assignment of the
entire remaining amount of the assigning Lender’s Commitment or Loans, the
amount of the Commitment or Loans of the assigning Lender subject to each such
assignment, and the amount of the Commitment or Loans of the assigning Lender
remaining after each such assignment (in each case determined as of the date
the Assignment and Assumption with respect to such assignment is delivered to
the Administrative Agent), in each case shall not be less than $10,000,000
unless each of the Borrower and the Administrative Agent otherwise consent
(each such consent not to be unreasonably withheld or delayed), provided
that no such consent of the Borrower shall be required if an Event of Default
under clause (a), (b), (h), (i) or (j) of Article VI has occurred and is
continuing;

(B)           each
partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations under this Agreement; and

(C)           the
parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Assumption, together with a processing and recordation
fee of $3,500.

For the purposes of this Section 10.04(b), the
term “Approved Fund” has the following meaning:

 61

“Approved Fund” means any Person (other than a
natural person) that is (or will be) engaged in making, purchasing, holding or
investing in bank loans and similar extensions of credit in the ordinary course
of its business and that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that
administers or manages a Lender.

(iii)        Subject to acceptance
and recording thereof pursuant to paragraph (b)(iv) of this Section, from and
after the effective date specified in each Assignment and Assumption, the
assignee thereunder shall be a party to this Agreement and, to the extent of
the interest assigned by such Assignment and Assumption, have the rights and
obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and
Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto but shall continue to be entitled to the benefits of Sections
9.03, 9.04, 9.05 and 10.03).  Upon
request, the Borrower (at its expense) shall execute and deliver a Note to the
assignee Lender, and the Note theretofore held by the assignor Lender shall be
returned to the Borrower in exchange for a new Note, payable to the assignee
Lender and reflecting its retained interest (if any) hereunder.  Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this
Section 10.04 shall be treated for purposes of this Agreement as a sale by
such Lender of a participation in such rights and obligations in accordance with
paragraph (c) of this Section.

(iv)       The Administrative
Agent, acting solely for this purpose as an agent of the Borrower, shall
maintain at one of its offices a copy of each Assignment and Assumption
delivered to it and a register for the recordation of the names and addresses
of the Lenders, and the Commitment of, and principal amount of the Loans owing
to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be
conclusive, and the Borrower, the Administrative Agent and the Lenders may
treat each Person whose name is recorded in the Register pursuant to the terms
hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. 
The Register shall be available for inspection by the Borrower and any
Lender, at any reasonable time and from time to time upon reasonable prior
notice.

(v)        Upon its receipt of a
duly completed Assignment and Assumption executed by an assigning Lender and an
assignee, the processing and recordation fee referred to in paragraph (b) of
this Section and any written consent to such assignment required by
paragraph (b) of this Section, the Administrative Agent shall accept such
Assignment and Assumption and record the information contained therein in the
Register.  No assignment shall be
effective for purposes of this Agreement unless it has been recorded in the
Register as provided in this paragraph.

(c)           (i)            Any Lender may, without the consent
of, or notice to, the Borrower or the Administrative Agent, sell participations
to any Person (other than a natural 

 62
 

Person or the Borrower or any of the Borrower’s Affiliates or
subsidiaries) (each a “Participant”) in all or a portion of such Lender’s
rights and obligations under this Agreement (including all or a portion of its
Commitment and the Loans owing to it); provided that (A) such Lender’s
obligations under this Agreement shall remain unchanged, (B) such Lender shall
remain solely responsible to the other parties hereto for the performance of
such obligations and (C) the Borrower, the Administrative Agent and the other
Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Agreement.  Any agreement or instrument pursuant to which
a Lender sells such a participation shall provide that such Lender shall retain
the sole right to enforce this Agreement and to approve any amendment,
modification or waiver of any provision of this Agreement; provided that
such agreement or instrument may provide that such Lender will not, without the
consent of the Participant, agree to any amendment, modification or waiver
described in the first proviso to Section 10.02(b) that affects such
Participant.  Subject to paragraph (d) of
this Section, the Borrower agrees that each Participant shall be entitled to
the benefits of Sections 9.03, 9.04 and 9.05  to the same
extent as if it were a Lender and had acquired its interest by assignment
pursuant to paragraph (b) of this Section. 
To the extent permitted by law, each Participant also shall be entitled
to the benefits of Section 10.08 as though it were a Lender, provided such
Participant agrees to be subject to Section 2.13(c)  as
though it were a Lender.

(d)           A
Participant shall not be entitled to receive any greater payment under Sections
9.03 or 9.05  than the applicable Lender would have
been entitled to receive with respect to the participation sold to such
Participant, unless the sale of the participation to such Participant is made
with the Borrower’s prior written consent. 
A Participant that would be a Foreign Lender if it were a Lender shall
not be entitled to the benefits of Section 9.05 unless the Borrower is
notified of the participation sold to such Participant and such Participant
agrees, for the benefit of the Borrower, to comply with Section 9.05(e)  as though it were a Lender.

(e)           Any
Lender may at any time pledge or assign a security interest in all or any
portion of its rights under this Agreement (including under its Note, if any)
to secure obligations of such Lender, including without limitation any pledge
or assignment to secure obligations to a Federal Reserve Bank, and this
Section shall not apply to any such pledge or assignment of a security
interest; provided that no such pledge or assignment of a security
interest shall release a Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party hereto.

(f)            If
(w) any Lender requests compensation under Section 9.03, (x) the Borrower is
required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 9.05, (y) if
any Lender defaults in its obligation to fund Loans hereunder or (z) if any
Lender refuses to consent to any amendment or waiver under this Agreement which
pursuant to the terms of Section 10.02 requires the consent of all Lenders
or all affected Lenders and with respect to which the Required Lenders shall
have granted their consent, then the Borrower may, at its sole expense and
effort, upon notice to such Lender and the Administrative Agent, require such
Lender to assign and delegate, without recourse (in accordance with and subject
to the restrictions contained above in Section 10.04), all its interests,
rights and obligations under this Agreement to an assignee that shall assume
such obligations (which assignee may be another Lender, if a Lender accepts
such assignment); 

 63
 

provided that (i) such assigning Lender
shall have received payment of an amount equal to the outstanding principal of
its Loans, accrued interest thereon, accrued fees and all other amounts payable
to it hereunder, from the assignee (to the extent of such outstanding principal
and accrued interest and fees) or the Borrower (in the case of all other
amounts) and (ii) in the case of any such assignment resulting from a
claim for compensation under Section 9.03 or payments required to be made
pursuant to Section 9.05, such assignment will result in a reduction in
such compensation or payments.  A Lender
shall not be required to make any such assignment and delegation if, prior
thereto, as a result of a waiver by such Lender or otherwise, the circumstances
entitling the Borrower to require such assignment and delegation cease to
apply.

(g)           Notwithstanding
anything to the contrary contained herein, any Lender (a “Granting Lender”)
may grant to a special purpose funding vehicle identified as such in writing
from time to time by the Granting Lender to the Administrative Agent and the
Borrower (an “SPC”) the option to provide all or any part of any Loan
that such Granting Lender would otherwise be obligated to make pursuant to this
Agreement; provided that (i) nothing herein shall constitute a
commitment by any SPC to fund any Loan, and (ii) if an SPC elects not to
exercise such option or otherwise fails to make all or any part of such Loan,
the Granting Lender shall be obligated to make such Loan pursuant to the terms
hereof.  Each party hereto hereby agrees
that (i) neither the grant to any SPC nor the exercise by any SPC of such
option shall increase the costs or expenses or otherwise increase or change the
obligations of the Borrower under this Agreement (including its obligations
under Section 9.03), (ii) no SPC shall be liable for any indemnity or similar
payment obligation under this Agreement for which a Lender would be liable, and
(iii) the Granting Lender shall for all purposes, including the approval of any
amendment, waiver or other modification of any provision of any Loan Document,
remain the lender of record hereunder. 
The making of a Loan by an SPC hereunder shall utilize the Commitment of
the Granting Lender to the same extent, and as if, such Loan were made by such
Granting Lender.  In furtherance of the
foregoing, each party hereto hereby agrees (which agreement shall survive the
termination of this Agreement) that, prior to the date that is one year and one
day after the payment in full of all outstanding commercial paper or other
senior debt of any SPC, it will not institute against, or join any other Person
in instituting against, such SPC any bankruptcy, reorganization, arrangement,
insolvency, or liquidation proceeding under the laws of the United States or
any State thereof.  Notwithstanding anything
to the contrary contained herein, any SPC may (i) with notice to, but without
prior consent of the Borrower and the Administrative Agent and with the payment
of a processing fee of $3,500, assign all or any portion of its right to
receive payment with respect to any Loan to the Granting Lender and (ii)
disclose on a confidential basis any non-public information relating to its
funding of Loans to any rating agency, commercial paper dealer or provider of
any surety or Guarantee or credit or liquidity enhancement to such SPC.

(h)           Notwithstanding anything to the contrary
contained herein, any Lender that is a Fund may create a security interest in
all or any portion of the Loans owing to it and the Note, if any, held by it to
the trustee for holders of obligations owed, or securities issued, by such Fund
as security for such obligations or securities, provided that unless and
until such trustee actually becomes a Lender in compliance with the other
provisions of this Section 10.04, (i) no such pledge shall release the pledging
Lender from any of its obligations under the Loan 

 64
 

Documents and (ii) such trustee shall not be
entitled to exercise any of the rights of a Lender under the Loan Documents
even though such trustee may have acquired ownership rights with respect to the
pledged interest through foreclosure or otherwise.

Section
10.05       Survival.  All
covenants, agreements, representations and warranties made by the Obligors
herein and in the other Loan Documents and in the certificates or other
instruments delivered in connection with or pursuant to this Agreement or the
other Loan Documents shall be considered to have been relied upon by the other
parties hereto and shall survive the execution and delivery of this Agreement
and the making of any Loans, regardless of any investigation made by any such
other party or on its behalf and notwithstanding that the Administrative Agent
or any Lender may have had notice or knowledge of any Default or incorrect
representation or warranty at the time any credit is extended hereunder, and
shall continue in full force and effect as long as the principal of or any
accrued interest on any Loan or any fee or any other amount payable under this
Agreement or the other Loan Documents is outstanding and unpaid and so long as
the Commitments have not expired or terminated. 
The provisions of Sections 9.03, 9.04, 9.05 and 10.03 and Article VII
shall survive and remain in full force and effect regardless of the
consummation of the transactions contemplated hereby, the repayment of the
Loans, the expiration or termination of the Commitments or the termination of
this Agreement, any other Loan Document or any provision hereof or thereof.

Section
10.06       Counterparts; Integration; Effectiveness.  This Agreement may be executed in
counterparts (and by different parties hereto on different counterparts), each
of which shall constitute an original, but all of which when taken together
shall constitute a single contract.  This
Agreement and the other Loan Documents constitute the entire contract among the
parties relating to the subject matter hereof and thereof and supersede any and
all previous agreements and understandings, oral or written, relating to the
subject matter hereof or thereof.  In the
event of any conflict between the provisions of this Agreement and those of any
other Loan Document, the provisions of this Agreement shall control; provided
that the inclusion of supplemental rights or remedies in favor of the
Administrative Agent or the Lenders in any other Loan Document shall not be
deemed a conflict with this Agreement. 
Each Loan Document was drafted with the joint participation of the
respective parties thereto and shall be construed neither against nor in favor
of any party, but rather in accordance with the fair meaning thereof.  Except as provided in Section 4.01, this
Agreement shall become effective when it shall have been executed by the
Administrative Agent and when the Administrative Agent shall have received
counterparts hereof which, when taken together, bear the signatures of each of
the other parties hereto, and thereafter shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns.  Delivery of an executed counterpart of a
signature page of this Agreement by facsimile shall be effective as delivery of
a manually executed counterpart of this Agreement.

Section
10.07       Severability.  If any
provision of this Agreement or the other Loan Documents is held to be illegal,
invalid or unenforceable, (a) the legality, validity and enforceability of the
remaining provisions of this Agreement and the other Loan Documents shall not
be affected or impaired thereby and (b) the parties shall endeavor in good
faith negotiations to replace the illegal, invalid or unenforceable provisions
with valid provisions the economic effect of which comes as close as possible
to that of the illegal, invalid or 

 65
 

unenforceable provisions.  The invalidity of a provision in a particular
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

Section
10.08       Right of Setoff.  If
an Event of Default shall have occurred and be continuing, upon the making of
the request, or the granting of the consent, if required under Article VI to
authorize the Administrative Agent to declare the Loans due and payable, each
Lender and each of its Affiliates is hereby authorized at any time and from
time to time, to the fullest extent permitted by applicable law, to set off and
apply any and all deposits (general or special, time or demand, provisional or
final, in whatever currency) at any time held and other obligations (in
whatever currency) at any time owing by such Lender or Affiliate to or for the
credit or the account of the Borrower or the Guarantor against any and all of
the obligations of the Borrower or the Guarantor now or hereafter existing
under this Agreement or the other Loan Documents to such Lender, irrespective
of whether or not such Lender shall have made any demand under this Agreement
or any other Loan Document and although such obligations of the Borrower or the
Guarantor may be contingent or unmatured or are owed to a branch or office of
such Lender different from the branch or office holding such deposit or
obligated on such indebtedness.  The
rights of each Lender and its Affiliates under this Section are in addition to
other rights and remedies (including other rights of setoff) that such Lender
or its Affiliates may have.  Each Lender
agrees to notify the Borrower and the Administrative Agent promptly after any
such setoff and application, provided that the failure to give such
notice shall not affect the validity of such setoff and application.

Section
10.09       Governing Law; Jurisdiction;
Consent to Service of Process.

(a)           This
Agreement and the Notes shall be governed by, and construed in accordance with,
the law of the State of New York.

(b)           Each
Obligor hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of the Supreme Court of the State of
New York sitting in New York County and of the United States District Court of
the Southern District of New York, and any appellate court from any thereof, in
any action or proceeding arising out of or relating to this Agreement or the
other Loan Documents, or for recognition or enforcement of any judgment, and
each of the parties hereto hereby irrevocably and unconditionally agrees that
all claims in respect of any such action or proceeding may be heard and
determined in such New York State or, to the extent permitted by law, in such
Federal court.  Each of the parties
hereto agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law.  Nothing
in this Agreement or any other Loan Document shall affect any right that the
Administrative Agent or any Lender may otherwise have to bring any action or
proceeding relating to this Agreement or any other Loan Document against the
Obligors or their respective properties in the courts of any jurisdiction.

(c)           Each
Obligor hereby irrevocably and unconditionally waives, to the fullest extent it
may legally and effectively do so, any objection which it may now or hereafter
have to the laying of venue of any suit, action or proceeding arising out of or
relating to this Agreement or any other Loan Document in any court referred to
in paragraph (b) of this Section.  Each
of 

 66
 

the parties hereto hereby irrevocably waives, to the fullest extent
permitted by law, the defense of an inconvenient forum to the maintenance of
such action or proceeding in any such court.

(d)           Each
Obligor hereby irrevocably designates and appoints CT Corporation System,
having an office on the date hereof at 111 Eighth Avenue, New York, New York
10011 as its authorized agent, to accept and acknowledge on its behalf, service
of any and all process which may be served in any suit, action or proceeding of
the nature referred to in paragraph (b) hereof in any Federal or New York State
court sitting in New York City.  Each
Obligor represents and warrants that such agent has agreed in writing to accept
such appointment and that a true copy of such designation and acceptance has
been delivered to the Administrative Agent. 
If such agent shall cease so to act, each Obligor covenants and agrees
to designate irrevocably and appoint without delay another such agent
satisfactory to the Administrative Agent and to deliver promptly to the
Administrative Agent evidence in writing of such other agent’s acceptance of
such appointment.

(e)           Each
Lender and the Administrative Agent irrevocably consents to service of process
in the manner provided for notices in Section 10.01.

(f)            Nothing
in this Agreement or any other Loan Document will affect the right of any party
to this Agreement to serve process in any other manner permitted by law.

Section
10.10       Waiver of Jury Trial. 
EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY
(WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE
THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO
HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

Section
10.11       Waiver of Immunities. 
TO THE EXTENT PERMITTED BY APPLICABLE LAW, IF EITHER OBLIGOR HAS OR
HEREAFTER MAY ACQUIRE ANY IMMUNITY (SOVEREIGN OR OTHERWISE) FROM ANY LEGAL
ACTION, SUIT OR PROCEEDING, FROM JURISDICTION OF ANY COURT OR FROM SET-OFF OR
ANY LEGAL PROCESS (WHETHER SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT,
ATTACHMENT IN AID OF EXECUTION OF JUDGMENT, EXECUTION OF JUDGMENT OR OTHERWISE)
WITH RESPECT TO ITSELF OR ANY OF ITS PROPERTY, SUCH OBLIGOR HEREBY IRREVOCABLY
WAIVES AND AGREES NOT TO PLEAD OR CLAIM SUCH IMMUNITY IN RESPECT OF ITS
OBLIGATIONS UNDER THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT.  EACH OBLIGOR AGREES THAT 

 67
 

THE WAIVERS SET FORTH ABOVE SHALL BE TO THE
FULLEST EXTENT PERMITTED UNDER THE FOREIGN SOVEREIGN IMMUNITIES ACT OF 1976 OF
THE UNITED STATES OF AMERICA AND ARE INTENDED TO BE IRREVOCABLE AND NOT SUBJECT
TO WITHDRAWAL FOR PURPOSES OF SUCH ACT.

Section
10.12       Judgment Currency. 
If, under any applicable law and whether pursuant to a judgment being
made or registered against either Obligor or for any other reason, any payment
under or in connection with this Agreement or any other Loan Document, is made
or satisfied in a currency (the “Other Currency”) other than that in
which the relevant payment is due (the “Required Currency”) then, to the
extent that the payment (when converted into the Required Currency at the rate
of exchange on the date of payment or, if it is not practicable for the party
entitled thereto (the “Payee”) to purchase the Required Currency with
the Other Currency on the date of payment, at the rate of exchange as soon
thereafter as it is practicable for it to do so) actually received by the Payee
falls short of the amount due under the terms of this Agreement or any other
Loan Document, such Obligor shall, to the extent permitted by law, as a
separate and independent obligation, indemnify and hold harmless the Payee
against the amount of such shortfall. For the purpose of this Section, “rate
of exchange” means the rate at which the Payee is able on the relevant date
to purchase the Required Currency with the Other Currency and shall take into
account any premium and other costs of exchange.

Section
10.13       Headings.  Article and
Section headings and the Table of Contents used herein and in the other
Loan Documents are for convenience of reference only, are not part of this
Agreement or any other Loan Document and shall not affect the construction of,
or be taken into consideration in interpreting, this Agreement or any other
Loan Document.

Section
10.14       Confidentiality.  Each
of the Administrative Agent and the Lenders shall maintain the confidentiality
of the Information (as defined below) and shall not use the Information except
for purposes relating directly to this Agreement, the other Loan Documents and
the Transactions, except that Information may be disclosed by the
Administrative Agent and the Lenders (a) to their and their Affiliates’
directors, officers, employees and agents whom they determine need to know such
Information in connection with matters relating directly to this Agreement, the
other Loan Documents and the Transactions, including accountants, legal counsel
and other advisors (it being understood that the Persons to whom such
disclosure is made will be informed of the confidential nature of such
Information and instructed to keep such Information confidential and the
Administrative Agent or the applicable Lenders shall be responsible for breach
of this Section by any such Person to whom it disclosed such Information),
(b) to the extent requested by any governmental
authority or regulatory agency (including any self-regulatory authority,
such as the National Association of Insurance Commissioners), (c) to the extent
required by applicable laws or regulations or upon order of any court or
administrative agency of competent jurisdiction, to the extent required by such
order and not effectively stayed on appeal or otherwise, or as otherwise required
by law; provided that in the case of any intended disclosure under this
clause (c), the recipient thereof shall (unless otherwise required by
applicable law) give the Guarantor not less than five Business Days’ prior
notice (or such shorter period as may, in the good faith discretion of the
recipient, be reasonable under the circumstances or may be required by any
court or agency under the circumstances), specifying the Information involved
and stating such recipient’s intention to 

 68
 

disclose such Information (including the
manner and extent of such disclosure) in order to allow the Guarantor an
opportunity to seek an appropriate protective order, (d) to any other party
hereto, (e) in connection with the exercise of any remedies under this Agreement,
any other Loan Document or any action or proceeding relating to this Agreement
or any other Loan Document or the enforcement of rights hereunder or
thereunder, (f) subject to an agreement in writing to be bound by the
provisions of this Section (and of which the Guarantor shall be a third party
beneficiary) or in the case of a repurchase arrangement (“repo transaction”)
subject to an arrangement to be bound by provisions at least as restrictive as
this Section, to (i) any assignee of or Participant in, or any prospective
assignee of or Participant in, any of its rights or obligations under this
Agreement or any other Loan Document or (ii) any actual or prospective
counterparty (or its advisors) to any swap or derivative transaction relating
to the Borrower and its obligations, (g) with the written consent of the
Borrower referencing this Section 10.14, or (h) to the extent such
Information (x) becomes publicly available other than as a result of a breach
of this Section, a breach of another confidentiality agreement to which the
Administrative Agent or such Lender is a party or any other legal or fiduciary
obligation of the Administrative Agent or such Lender or (y) becomes available
to the Administrative Agent or any Lender on a nonconfidential basis from a source
other than the Borrower.  For purposes of
this Section, “Information” means all information received from or on
behalf of any Obligor or Subsidiary Guarantor relating to any Obligor, any
Subsidiary Guarantor or any of their respective businesses, other than any such
information that the Administrative Agent or any Lender proves is available to
the Administrative Agent or any Lender on a nonconfidential basis prior to
disclosure by any Obligor or any Subsidiary Guarantor from a source which is
not, to the knowledge of the recipient, prohibited from disclosing such
information by a confidentiality agreement or other legal or fiduciary
obligation to the Obligors or Subsidiary Guarantors.  Any Person required to maintain the
confidentiality of Information as provided in this Section shall be considered
to have complied with its obligation to do so if such Person has taken normal
and reasonable precautions and exercised due care to maintain the
confidentiality of such Information.  In
addition to other remedies, the Obligors shall be entitled to specific
performance and injunctive and other equitable relief for breach of this
Section 10.14.

Section
10.15       Electronic Communications.

(a)           Each
Obligor hereby agrees that except to the extent provided in clause (i) of the
final sentence of Section 5.01, it will provide to the Administrative Agent all
information, documents or other materials that it is obligated to furnish to
the Administrative Agent pursuant to this Agreement or any other Loan Document,
including, without limitation, all notices, requests, financial statements,
financial and other reports, certificates and other information materials, but
excluding any such communication that (i) relates to a request for a new, or a
conversion of an existing, borrowing or other extension of credit (including
any election of an interest rate or interest period relating thereto), (ii)
relates to the payment of any principal or other amount due under this
Agreement or any other Loan Document prior to the scheduled date therefor,
(iii) provides notice of any Default or Event of Default, (iv) is required to
be delivered to satisfy any condition precedent to the effectiveness of this
Agreement and/or any Borrowing hereunder or (v) initiates or responds to legal
process (all such non-excluded information being referred to herein
collectively as the “Communications”) by transmitting the Communications
in 

 69
 

an electronic/soft medium (provided such Communications contain
any required signatures) in a format acceptable to the Administrative Agent to
oploanswebadmin@citigroup.com (or such other e-mail address designated by the
Administrative Agent from time to time).

(b)           Each
party hereto agrees that the Administrative Agent may make the Communications
available to the Lenders by posting the Communications on IntraLinks or another
relevant website, if any, to which each Lender and the Administrative Agent
have access (whether a commercial, third-party website or whether sponsored by
the Administrative Agent) (the “Platform”).  Nothing in this Section 5.01 shall prejudice
the right of the Administrative Agent to make the Communications available to
the Lenders in any other manner specified in this Agreement.

(c)           Each
Obligor hereby acknowledges that certain of the Lenders may be “public-side”
Lenders (i.e., Lenders that do not wish to receive material non-public
information with respect to Obligors or their securities) (each, a “Public
Lender”).  The Obligors hereby agree
that (i) Communications that are to be made available on the Platform to Public
Lenders shall be clearly and conspicuously marked “PUBLIC” which, at a minimum,
shall mean that the word “PUBLIC” shall appear prominently on the first page
thereof, (ii) by marking Communications “PUBLIC,” each Obligor shall be deemed
to have authorized the Administrative Agent and the Lenders to treat such
Communications as either publicly available information or not material
information (although it may be sensitive and proprietary) with respect to the
Obligors or their securities for purposes of United States Federal and state
securities laws, (iii) all Communications marked “PUBLIC” are permitted to be
made available through a portion of the Platform designated “Public Lender,”
and (iv) the Administrative Agent shall be entitled to treat any Communications
that are not marked “PUBLIC” as being suitable only for posting on a portion of
the Platform not designated “Public Lender.”

(d)           Each
Lender agrees that e-mail notice to it (at the address provided pursuant to the
next sentence and deemed delivered as provided in the next paragraph)
specifying that Communications have been posted to the Platform shall
constitute effective delivery of such Communications to such Lender for
purposes of this Agreement.  Each Lender
agrees (i) to notify the Administrative Agent in writing (including by
electronic communication) from time to time to ensure that the Administrative
Agent has on record an effective e-mail address for such Lender to which the
foregoing notice may be sent by electronic transmission and (ii) that the
foregoing notice may be sent to such e-mail address.

(e)           Each
party hereto agrees that any electronic communication referred to in this
Section 10.15 shall be deemed delivered upon the posting of a record of such
communication (properly addressed to such party at the e-mail address provided
to the Administrative Agent) as “sent” in the e-mail system of the sending
party or, in the case of any such communication to the Administrative Agent,
upon the posting of a record of such communication as “received” in the e-mail
system of the Administrative Agent; provided
that if such communication is not so received by any party during the normal
business hours of the Administrative Agent, such communication shall be deemed
delivered at the opening of business on the next Business Day for the
Administrative Agent.

 70
 

(f)            Each party hereto acknowledges that
(i) the distribution of material through an electronic medium is not
necessarily secure and that there are confidentiality and other risks associated
with such distribution, (ii) the Communications and the Platform are provided “as
is” and “as available,” (iii) none of the Administrative Agent, its affiliates
nor any of their respective officers, directors, employees, agents, advisors or
representatives (collectively, the “Agent Parties”) warrants the
adequacy, accuracy or completeness of the Communications or the Platform , and
each Agent Party expressly disclaims liability for errors or omissions in any
Communications or the Platform, and (iv) no warranty of any kind, express,
implied or statutory, including, without limitation, any warranty of
merchantability, fitness for a particular purpose, non-infringement of third
party rights or freedom from viruses or other code defects, is made by any Agent
Party in connection with any Communications or the Platform.

Section
10.16       USA PATRIOT Act Notice. 
Each Lender that is subject to the Act (as hereinafter defined) and the
Administrative Agent (for itself and not on behalf of any Lender) hereby
notifies the Obligors, the H Borrower and the H Guarantor that pursuant to the
requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into
law October 26, 2001)) (the “Act”), it is required to obtain, verify and
record information that identifies the Obligors, the H Borrower and the H
Guarantor, which information includes the name and address of the Obligors, the
H Borrower and the H Guarantor and other information that will allow such
Lender or the Administrative Agent, as applicable, to identify the Obligors,
the H Borrower and the H Guarantor in accordance with the Act.

[Remainder
of page intentionally left blank]

 

 71

[Signature Page to 364-Day Senior Bridge Loan
Agreement (Healthcare)]

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

	
  

  	
  TYCO INTERNATIONAL GROUP S.A.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/ Michelangelo F. Stefani

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   

  	
  Michelangelo F. Stefani

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Managing Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

[Signature Page to 364-Day Senior Bridge Loan
Agreement (Healthcare)]

	
  

  	
  COVIDIEN INTERNATIONAL FINANCE S.A.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/ Michelangelo F. Stefani

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   

  	
  Michelangelo F. Stefani

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Managing Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

[Signature Page to 364-Day Senior Bridge Loan
Agreement (Healthcare)]

	
  

  	
  TYCO INTERNATIONAL LTD.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/ Christopher J. Coughlin

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   

  	
  Christopher J. Coughlin

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Senior Vice President and Chief Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

[Signature Page to 364-Day Senior Bridge Loan
Agreement (Healthcare)]

	
  

  	
  COVIDIEN LTD.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/ Charles J. Dockendorff

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   

  	
  Charles J. Dockendorff

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Executive Vice President and Chief Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

[Signature Page to 364-Day Senior Bridge Loan
Agreement (Healthcare)]

	
  

  	
  CITIBANK, N.A., as a Lender and as Administrative
  Agent

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/ Kevin A. Ege

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   

  	
  Kevin A. Ege

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

[Signature Page to 364-Day Senior Bridge Loan
Agreement (Healthcare)]

	
  

  	
  UBS LOAN FINANCE LLC

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/ Irja R. Otsa

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   

  	
  Irja R. Otsa

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Associate Director Banking Products Services, US

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/ David B. Julie

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   

  	
  David B. Julie

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Associate Director Banking Products Services, US

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

[Signature Page to 364-Day Senior Bridge Loan
Agreement (Healthcare)]

	
  

  	
  BANK OF AMERICA, N.A.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/ Craig Murlless

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   

  	
  Craig Murlless

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Senior Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

[Signature Page to 364-Day Senior Bridge Loan
Agreement (Healthcare)]

	
  

  	
  DEUTSCHE BANK AG CAYMAN ISLANDS BRANCH

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/ Frederick W. Laird

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   

  	
  Frederick W. Laird

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Managing Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/ Ming K. Chu

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   

  	
  Ming K. Chu

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

[Signature Page to 364-Day Senior Bridge Loan
Agreement (Healthcare)]

	
  

  	
  GOLDMAN SACHS CREDIT PARTNERS L.P.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/ Bruce H. Mendelsohn

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   

  	
  Bruce H. Mendelsohn

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Authorized Signatory

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

[Signature Page to 364-Day Senior Bridge Loan
Agreement (Healthcare)]

	
  

  	
  MORGAN STANLEY SENIOR FUNDING, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/ Jaap L. Tonckens

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   

  	
  Jaap L. Tonckens

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

[Signature Page to 364-Day Senior Bridge Loan
Agreement (Healthcare)]

	
  

  	
  BARCLAYS BANK PLC

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/ Nicholas A. Bell

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   

  	
  Nicholas A. Bell

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

[Signature Page to 364-Day Senior Bridge Loan
Agreement (Healthcare)]

	
  

  	
  BNP PARIBAS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/ Richard Pace

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   

  	
  Richard Pace

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Managing Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/ Nanette Baudon

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   

  	
  Nanette Baudon

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

[Signature Page to 364-Day Senior Bridge Loan
Agreement (Healthcare)]

	
  

  	
  JPMORGAN CHASE BANK, N.A.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/ Anthony W. White

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   

  	
  Anthony W. White

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

[Signature Page to 364-Day Senior Bridge Loan
Agreement (Healthcare)]

	
  

  	
  LEHMAN BROTHERS BANK, FSB

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/ Janine M. Shugan

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   

  	
  Janine M. Shugan

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Authorized Signatory

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]