Covidien Ltd.
EX-10.8
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<p align="right" style="margin:0pt 0pt 12.0pt;text-align:right;text-indent:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 10.8</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;text-indent:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Covidien Ltd.<br>
2007 Stock and Incentive Plan</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;text-indent:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">TERMS AND CONDITIONS<br>
OF<br>
RESTRICTED UNIT AWARD</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">RESTRICTED UNIT AWARD
granted on July 2, 2007 (the &#147;Grant Date&#148;).</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b>Grant of Restricted Units.</b>&#160;
Covidien Ltd. (the &#147;Company&#148;) has granted to you Restricted Units, the
amount of which is set forth in the Grant Letter, subject to the provisions of
these Terms and Conditions and the Plan.&#160;
The Company will hold the Restricted Units in a bookkeeping account on
your behalf until such units become payable or are forfeited or cancelled.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b>Amount and Form of Payment.</b>&#160;
Each Restricted Unit represents one (1) Share of Common Stock and vested
Restricted Units will be redeemed solely for Shares, subject to Section 10.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b>Dividends</b>.&#160;
Each unvested Restricted Unit will be credited with a Dividend
Equivalent Unit (&#147;DEU&#148;) for any cash or stock dividends distributed by the
Company on a Share of Common Stock.&#160; DEUs
will be calculated at the same dividend rate paid to other holders of Common
Stock and will vest in accordance with the vesting schedule applicable to the
underlying Restricted Units.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b>Vesting.</b>&#160;
Except as provided below, Restricted Units subject to this Award will
vest according to the following schedule:</p>

<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse;font-family:Times New Roman;margin-left:72.0pt;">
 <tr style="page-break-inside:avoid;">
  <td width="363" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:272.25pt;">
  <p align="left" style="font-size:8.0pt;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:left;"><!-- SET mrlHTMLTableLeft -->Date</p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="85" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:63.6pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Vested&nbsp;Percentage</font></b></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="363" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:272.25pt;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">st</font>&nbsp;Anniversary of Grant Date</p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="85" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:63.6pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">25</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">%</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="363" valign="top" style="padding:0pt .7pt 0pt 0pt;width:272.25pt;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">nd</font>&nbsp;Anniversary of Grant Date</p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="85" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:63.6pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">50</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">%</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="363" valign="top" style="padding:0pt .7pt 0pt 0pt;width:272.25pt;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">rd</font>&nbsp;Anniversary of Grant Date</p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="85" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:63.6pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">75</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">%</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="363" valign="top" style="padding:0pt .7pt 0pt 0pt;width:272.25pt;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">th</font>&nbsp;Anniversary of Grant Date</p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="85" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:63.6pt;">
  <p style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">100</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">%</font></p>
  </td>
 </tr>
</table>

<p style="font-family:Times New Roman;font-size:1.0pt;line-height:1.0pt;margin:0pt 0pt 12.0pt;">&nbsp;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If you terminate employment before the 4</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">th</font>&#160;Anniversary
of the Grant Date, you will forfeit all Restricted Units subject to this
Award.&#160; However, if you terminate
employment before the 4<font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">th</font>&#160;Anniversary of the Grant Date
due to Normal Retirement (you terminate employment on or after age 60 and the
sum of your age and years of service equals at least 70), Retirement (you
terminate employment on or after age 55 and the sum of your age and years of
service equals at least 60), death, Disability, a Change in Control or
Divestiture or Outsourcing Agreement, these Restricted Units will become vested
in accordance with the provisions of Section 7, 8 or 9, as applicable.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b>Retirement, Normal Retirement, Disability or Death.</b>&#160; Notwithstanding the vesting provisions
described in Section 4, Restricted Units subject to this Award will vest if
your Termination of Employment is a result of your Retirement, Normal
Retirement, Disability or death as follows:</p>


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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b>Retirement</b>.&#160; If you
terminate employment as a result of your Retirement (as defined in Section 4)
and your Retirement occurs less than 12 months after the Grant Date, you will forfeit
all Restricted Units subject to this Award.&#160;
If, however, your Retirement occurs at least 12 months after the Grant
Date, then you will be entitled to pro rata vesting of Restricted Units based
on (A) the number of whole months completed from Grant Date through your
employment termination date divided by 48 times (B) the total number of
Restricted Units awarded under this Award.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b>Normal Retirement, Disability or Death</b>.&#160; If you terminate employment as a result of
your Normal Retirement (as defined in Section 4) and your Normal Retirement
occurs less than 12 months after the Grant Date of this Award, you will forfeit
all Restricted Units subject to this Award.&#160;
If, however, your Normal Retirement occurs at least 12 months after the
Grant Date of this Award or you terminate employment because of your death or a
Disability, then you will become fully vested in all Restricted Units subject
to this Award on the date of your Normal Retirement, death or termination of
employment due to Disability.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b>Termination of Employment
Following a Change in Control.</b>&#160; Notwithstanding the
vesting provisions described in Section 4, you will become fully vested in Restricted Units subject to this Award on the
date you terminate employment after a Change in Control if you satisfy one of
the following requirements:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Within 12 months after a Change in
Control, the Company terminates your employment for any reason other than
Cause, Disability or death; or</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Within 12 months after a Change in
Control and within 60 days after one of the events listed in this Section
6(ii), you terminate your employment because (A) the Company (1) assigns or
causes to be assigned to you duties inconsistent in any material respect with
your position as in effect immediately prior to the Change in Control; (2)
makes or causes to be made any material adverse change in your position
(including titles and reporting relationships and level), authority, duties or
responsibilities; or (3) takes or causes to be taken any other action which, in
your reasonable judgment, would cause you to violate your ethical or
professional obligations (after written notice of such judgment has been
provided by you to the Company and the Company has been given a 15-day period
within which to cure such action), or which results in a significant diminution
in your position, authority, duties or responsibilities; or (B) the Company,
without your consent, (1) requires you to relocate to a principal place of
employment more than 50 miles from your existing place of employment; or (2)
reduces your base salary, annual bonus, or retirement, welfare, stock
incentive, perquisite (if any) and other benefits when taken as a whole.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.&#160; </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b>Termination of Employment
Resulting From Divestiture or Outsourcing Agreement</b>.&#160;
Notwithstanding the vesting provisions described in Section 4,
and subject to the provisions of subsection (i) below, if you terminate employment as a result of a Disposition of Assets,
Disposition of a Subsidiary or Outsourcing Agreement, then Restricted Units
subject to this Award will vest on a pro-rata basis based on (A) the
number of whole months completed from Grant Date through the closing date of
the applicable transaction divided by 48 times (B) the total number of
Restricted Units issued under this Award.</p>


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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Notwithstanding
the foregoing provisions of this Section 7, you shall not be eligible for
pro-rata vesting if (A) your Termination of Employment occurs on or prior to
the closing date of a Disposition of Assets or Disposition of a Subsidiary or
such later date as is provided specifically in the applicable transaction
agreement or related agreements, or on the effective date of an Outsourcing
Agreement (the &#147;Applicable Employment Date&#148;), and (B) you are offered
Comparable Employment with the buyer, successor company or outsourcing agent,
as applicable, but do not commence such employment on the Applicable Employment
Date.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>For
purposes of Section 7(i), (A) &#147;Comparable Employment&#148; means employment at a
location that is no more than 50 miles from your job location at the time of
your Termination of Employment that has a base salary and bonus target that is
at least equal to your base salary and bonus target in effect immediately prior
to your Termination of Employment; (B) &#147;Disposition of Assets&#148; means the disposition
by the Company or a Subsidiary of all or a portion of the assets used by the
Company or Subsidiary in a trade or business to an unrelated corporation or
entity; (C) &#147;Disposition of a Subsidiary&#148; means the disposition by the Company
or Subsidiary of its interest in a subsidiary or controlled entity to an
unrelated individual or entity, provided that such subsidiary or entity ceases
to be a member of the Company&#146;s controlled group as a result of such
disposition; and (D) &#147;Outsourcing Agreement&#148; means a written agreement between
the Company or Subsidiary and an unrelated third party (&#147;Outsourcing Agent&#148;)
pursuant to which (1) the Company or Subsidiary transfers the performance of
services previously performed by Company or Subsidiary employees to the Outsourcing
Agent, and (2) the Outsourcing Agreement includes an obligation of the
Outsourcing Agent to offer employment to any employee whose employment is being
terminated as a result of or in connection with said Outsourcing Agreement.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b>Withholdings.</b>&#160;
The Company has the right, prior to the issuance or delivery of any
Shares on your Restricted Units, to withhold or require from you the amount
necessary to satisfy applicable tax requirements, as determined by the
Committee.&#160; If you have not satisfied
your tax withholding requirements in a timely manner, the Company has the right
to sell the number of Shares necessary to satisfy such requirements.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b>Transfer of Award.</b>&#160;
You may not transfer this Award or any interest in Restricted Units
except by will or the laws of descent and distribution.&#160; Any other attempt to transfer this Award or
any interest in Restricted Units is null and void.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b>Forfeiture of Award.</b>&#160;
You will forfeit all or a portion of the Restricted Units subject to
this Award if your employment terminates under the circumstances described
below:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If the Company or Subsidiary terminates
your employment for Cause, including without limitation a termination as a
result of your violation of the Company&#146;s Code of Ethical Conduct, then the
Company will immediately rescind any unvested Restricted Units subject to this
Award and you will immediately forfeit any and all rights you have remaining at
such time with respect to this Award.&#160;
Also, you hereby agree and promise to deliver to the Company immediately
upon your Termination of Employment for Cause, Shares (or, in the discretion of
the Committee, cash) equal in value to the amount of any Restricted Units that
vested during the 12-month period that occurs immediately prior to your
Termination of Employment for Cause.</p>


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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If, after your Termination of
Employment, the Committee determines in its sole discretion that while you were
a Company or Subsidiary employee you engaged in activity that would have
constituted grounds for the Company or Subsidiary to terminate your employment
for Cause, then the Company will immediately rescind any unvested Restricted
Units subject to this Award and you will immediately forfeit any and all rights
you have remaining on the date that the Committee makes such determination with
respect to this Award.&#160; Also, you hereby
agree and promise to deliver to the Company immediately upon the date the
Committee determines that you could have been terminated for Cause, Shares (or,
in the discretion of the Committee, cash) equal in value to the amount of any
Restricted Units that vested during the period that begins 12 months
immediately prior to your Termination of Employment and ends on the date the
Committee determines that you could have been terminated for Cause.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If the Committee determines in its sole
discretion that at anytime after your Termination of Employment and prior to
the second anniversary of your Termination of Employment you (A) disclosed
confidential or proprietary information related to any business of the Company
or Subsidiary or (B) entered into an employment or consultation arrangement
(including any arrangement for employment or service as an agent, partner,
stockholder, consultant, officer or director) with any entity or person engaged
in a business and (1) such employment or consultation arrangement would likely
(in the Committee&#146;s sole discretion) result in the disclosure of confidential
or proprietary information related to any business of the Company or a
Subsidiary to a business that is competitive with any Company or Subsidiary
business as to which you had access to strategic or confidential information
and (2) the Committee has not approved the arrangement in writing, then the
Committee will rescind any unvested Restricted Units subject to this Award and
you will immediately forfeit any and all rights you have remaining on the date
that the Committee makes such determination with respect to this Award.&#160; Also, you hereby agree and promise to deliver
to the Company immediately upon the Committee&#146;s determination date Shares (or,
in the discretion of the Committee, cash) equal in value to the amount of any
Restricted Units that vested during the period that begins 12 months
immediately prior to your Termination of Employment and ends on the date of the
Committee&#146;s determination.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b>Adjustments.</b>&#160;
In the event of any stock split, reverse stock split, dividend or other
distribution (whether in the form of cash, Shares, other securities or other
property), extraordinary cash dividend, recapitalization, merger,
consolidation, split-up, spin-off, reorganization, combination, repurchase or
exchange of Shares or other securities, the issuance of warrants or other
rights to purchase Shares or other securities, or other similar corporate
transaction or event, the Committee may in its sole discretion adjust the
number and kind of Shares covered by this Award and other relevant provisions
to the extent necessary to prevent dilution or enlargement of the benefits or
potential benefits intended to be provided by this Award.&#160; Any such determinations and adjustments made
by the Committee will be binding on all persons.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b>Restrictions on Payment of
Shares.</b>&#160; Payment of Shares for Restricted Units is
subject to the conditions that, to the extent required at the time of delivery
of such Shares:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Shares underlying the Restricted
Units will be duly listed, upon official notice of redemption, on the NYSE; and</p>


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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>A Registration Statement under the
Securities Act of 1933 with respect to the Shares will be effective or an
exemption from registration will apply.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company will not be
required to deliver any Shares until all applicable federal and state laws and
regulations have been complied with and all legal matters in connection with
the issuance and delivery of the Shares have been approved by the Company&#146;s
legal counsel.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b>Disposition of Securities.</b>&#160;
By accepting this Award, you acknowledge that you have read and
understand the Company&#146;s Insider Trading Policy and are aware of and understand
your obligations under federal securities laws with respect to trading in the
Company&#146;s securities.&#160; The Company has
the right to recover, or receive reimbursement for, any compensation or profit
you realized upon the disposition of Shares received for Restricted Units to
the extent that the Company has a right of recovery or reimbursement under
applicable securities laws.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b>Plan Terms Govern.</b>&#160;
The redemption of Restricted Units, the disposition of any Shares
received for Restricted Units and the treatment of any gain on the disposition
of these Shares are subject to the terms of the Plan and any rules that the
Committee prescribes.&#160; The Plan document,
as amended from time to time, is incorporated into this Terms and Conditions
document.&#160; Capitalized terms used herein
are defined in the Plan, unless otherwise stated in these Terms and
Conditions.&#160; If there is any conflict
between the terms of the Plan and these Terms and Conditions, the Plan will
prevail.&#160; By accepting the Award, you
hereby acknowledge receipt of the Plan and prospectus, as in effect on the
Grant Date.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b>Personal Data.</b>&#160;
To comply with applicable law and to administer this Award
appropriately, the Company and its agents may hold and process your personal
data and/or sensitive personal data.&#160; Such
data includes, but is not limited to, the information provided to you as part
of the grant package and any changes thereto, other appropriate personal and
financial data about you, and information about your participation in the Plan
and Shares obtained under the Plan from time to time.&#160; By accepting this Award, you hereby give your
explicit consent to the Company&#146;s processing personal data and/or sensitive
personal data as is necessary or appropriate for Plan administration.&#160; You also hereby give your explicit consent to
the Company&#146;s transfer of personal data and/or sensitive personal data outside
the country in which you work or reside and to the United States.&#160; The legal persons for whom your personal data
are intended include the Company, its Subsidiaries (or former Subsidiaries as
are deemed necessary), the outside Plan administrator, and any other person
that the Company retains or utilizes for Plan administration purposes.&#160; You have the right to review and correct your
personal data by contacting your local Human Resources Representative.&#160; You hereby acknowledge your understanding
that the transfer of the information outlined here is important to Plan
administration and that failure to consent to the transmission of such information
may limit or prohibit your participation in the Plan.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b>No Contract of Employment or
Promise of Future Grants.</b>&#160; By accepting this Award, you agree that you
are bound by the terms of the Plan and these Terms and Conditions and
acknowledge that this Award is granted in the Company&#146;s sole discretion and is
not considered part of any employment contract or your ordinary or expected
salary or other compensation.&#160; This Award
and any gains received hereunder are not considered part of your salary or
compensation for purposes of any pension benefits or for purposes of severance,
redundancy or resignation.&#160; If the
Company or Subsidiary terminates your employment for any </p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">reason, you agree that
you will not be entitled to damages for breach of contract, dismissal or
compensation for loss of office or otherwise to any sum, Shares, Options or
other benefits to compensate you for the loss or diminution in value of any
actual or prospective rights, benefits or expectation under or in relation to
the Plan.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b>Limitations.</b>&#160;
Nothing in these Terms and Conditions or the Plan grants to you any
right to continued employment with the Company or any Subsidiary or to
interfere in any way with the Company or Subsidiary&#146;s right to terminate your
employment at any time and for any reason.&#160;
Payment of Shares is not secured by a trust, insurance contract or other
funding medium, and you do not have any interest in any fund or specific
Company asset by reason of this Award.&#160;
You have no rights as a stockholder of the Company pursuant to this
Award until Shares are actually delivered to you.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b>Entire Agreement and Amendment.</b>&#160;
These Terms and Conditions and the Plan constitute the entire
understanding between you and the Company regarding this Award.&#160; These Terms and Conditions supersede any
prior agreements, commitments or negotiations concerning this Award.&#160; These Terms and Conditions may not be
modified, altered or changed except by the Committee (or its delegate) in
writing and pursuant to the terms of the Plan.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b>Severability.</b>&#160;
The invalidity or unenforceability of any provision of these Terms and
Conditions will not affect the validity or enforceability of the other
provisions of these Terms and Conditions, which will remain in full force and
effect.&#160; Moreover, if any provision is
found to be excessively broad in duration, scope or covered activity, the
provision will be construed so as to be enforceable to the maximum extent
compatible with applicable law.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b>Acceptance</b>.&#160;
By accepting this Award, you agree to the following:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>You have carefully read, fully understand
and agree to all of the terms and conditions contained in the Plan and these
Terms and Conditions; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>You understand and agree that the Plan
and these Terms and Conditions constitute the entire understanding between you
and the Company regarding this Award, and that any prior agreements,
commitments or negotiations concerning this Award are replaced and superseded.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">You will be deemed to consent to the application of the terms and
conditions set forth in the Plan and these Terms and Conditions unless you
contact Covidien Ltd., c/o Equity Plan Administration, 15 Hampshire Street,
Mansfield, MA 02048 in writing within 30 days of receiving the grant
package.&#160; Receipt by the Company of your
non-consent will nullify this Award unless otherwise agreed to in writing by
you and the Company.</font></p>


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