{"id":38804,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/employee-equity-plan-baxter-international-inc.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"employee-equity-plan-baxter-international-inc","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/compensation\/employee-equity-plan-baxter-international-inc.html","title":{"rendered":"Employee Equity Plan &#8211; Baxter International Inc."},"content":{"rendered":"<p align=\"center\"><strong>Baxter International Inc. <br \/>\nEquity Plan <br \/>\nAdopted as of March 4, 2011<\/strong><\/p>\n<p align=\"center\">\n<p><strong>1. Purpose<\/strong><\/p>\n<\/p>\n<p>This Equity Plan (the &#8220;<u>Plan<\/u>&#8220;) has been adopted by the Compensation<br \/>\nCommittee (the &#8220;<u>Committee<\/u>&#8220;) of the Board of Directors (the<br \/>\n&#8220;<u>Board<\/u>&#8220;) of Baxter International Inc. (&#8220;<u>Baxter<\/u>&#8220;).<\/p>\n<\/p>\n<p><strong>2. Participants<\/strong><\/p>\n<\/p>\n<p>Participants in this Plan (each a &#8220;<u>Participant<\/u>&#8220;) shall be select<br \/>\nemployees of Baxter or its subsidiaries (the &#8220;<u>Company<\/u>&#8220;) to whom the<br \/>\nCommittee may make awards of Stock Options (each an &#8220;<u>Option<\/u>&#8220;),<br \/>\nPerformance Share Units (each a &#8220;PSU&#8221;) and Restricted Stock Units (each a<br \/>\n&#8220;<u>RSU<\/u>&#8220;, and together with Options and PSUs, &#8220;<u>Awards<\/u>&#8220;) under this<br \/>\nPlan.<\/p>\n<\/p>\n<p><strong>3. Awards<\/strong><\/p>\n<\/p>\n<p>Awards shall be made pursuant to and for the purposes stated in the Company<br \/>\nincentive compensation program or plan (the &#8220;<u>Program<\/u>&#8220;) identified in the<br \/>\nindividual grant materials provided to the Participant (the &#8220;<u>Grant<\/u>&#8220;).<br \/>\nSuch Grant materials consist of a communication letter to Participants notifying<br \/>\nthem of their Awards and may include alternative terms with respect to vesting,<br \/>\nin which case the vesting terms in the Grant communication letter shall govern.<br \/>\nAll Awards granted hereunder shall be subject to the Company153s Incentive<br \/>\nCompensation Recoupment Policy or Executive Compensation Recoupment Policy, as<br \/>\napplicable. Each Award shall be granted as of the date approved and as provided<br \/>\nin the Grant, or for eligible French employees as soon thereafter as practicable<br \/>\npursuant to applicable French law (as provided in the attached French Addendum<br \/>\nwhich shall govern such Awards) (the &#8220;<u>Grant Date<\/u>&#8220;). Each Award shall be<br \/>\ngranted as of the date approved and as provided in the Grant (the &#8220;<u>Grant<br \/>\nDate<\/u>&#8220;). The purchase price for each share of Common Stock subject to an<br \/>\nOption shall be the Fair Market Value of a share of Common Stock on the Grant<br \/>\nDate. The terms of each Award will be as set forth in this Plan. Unless<br \/>\notherwise indicated, terms defined in the Program shall have the same meaning in<br \/>\nthese terms and conditions. Options are not intended to qualify as Incentive<br \/>\nStock Options within the meaning of section 422 of the United States Internal<br \/>\nRevenue Code, as amended (the &#8220;<u>Code<\/u>&#8220;).<\/p>\n<\/p>\n<p><strong>4. Options<\/strong><\/p>\n<\/p>\n<p><strong>4.1. <\/strong>Except for Options granted to employees of the<br \/>\nCompany153s subsidiaries in France, Options shall become exercisable as follows:<br \/>\n(i) one-third on the first anniversary of the Grant Date, (ii) one-third on the<br \/>\nsecond anniversary of the Grant Date, and (iii) the remainder on the third<br \/>\nanniversary of the Grant Date. Options granted to employees of the Company153s<br \/>\nsubsidiaries in France shall become exercisable on the fourth anniversary of the<br \/>\nGrant Date. If Options would become exercisable on a date that is not a business<br \/>\nday, they will become exercisable on the next business day. A business day is<br \/>\nany day on which the Company153s Common Stock is traded on the New York Stock<br \/>\nExchange. After Options become exercisable (in each case, in whole or in part)<br \/>\nand until they expire, the Options may be exercised in whole<\/p>\n<\/p>\n<p>or in part, in the manner specified by the Committee. Under no circumstances<br \/>\nmay Options be exercised after they have expired. Shares of Common Stock may be<br \/>\nused to pay the purchase price for shares of Common Stock to be acquired upon<br \/>\nexercise of Options or fulfill any tax withholding obligation, subject to any<br \/>\nrequirements or restrictions specified by the Committee.<\/p>\n<p><strong>4.2. <\/strong>If a Participant153s employment with the Company<br \/>\nterminates before the Participant153s Options becomes exercisable, the Options<br \/>\nwill expire when the Participant153s employment with the Company terminates,<br \/>\nexcept (i) in connection with a Qualifying Retirement or death or disability<br \/>\n(each as outlined below) or (ii) if the Participant is rehired by the Company<br \/>\nwithin ninety days of termination, in which case the Participant shall be<br \/>\nconstrued to have been continuously employed by the Company for purposes of<br \/>\nvesting and exercise.<\/p>\n<p><strong>4.3. <\/strong>If a Participant153s employment with the Company<br \/>\nterminates after the Participant153s Options become exercisable, the Options will<br \/>\nnot expire immediately but will remain exercisable. Subject to Section 4.6, and<br \/>\nexcept in the event of a Qualifying Retirement (as provided in Section 4.4), the<br \/>\nOptions will expire ninety days after the Participant153s employment with the<br \/>\nCompany terminates. If the Participant dies or becomes disabled during the<br \/>\nninety-day period, the Options will expire on the first anniversary of the<br \/>\ntermination date.<\/p>\n<p><strong>4.4. <\/strong>If the employment of a Participant who is at least 65<br \/>\nyears of age, or at least 55 years of age with at least 10 years of employment<br \/>\nwith the Company, is terminated other than for Cause or by reason of the<br \/>\nParticipant153s death or disability (a &#8220;<u>Qualifying Retirement<\/u>&#8220;) then (i) if<br \/>\nthe date of such termination is after the calendar year of the Grant Date, the<br \/>\nOptions shall continue to vest as provided in Section 4.1, or (ii) if the date<br \/>\nof such termination is in the calendar year of the Grant Date, a portion of the<br \/>\nOptions shall continue to vest as provided in Section 4.1, which portion shall<br \/>\nbe determined as follows: (# shares covered by Option award) * (# of months<br \/>\nworked in that year, rounded to nearest whole month) \/ 12. Subject to Section<br \/>\n4.6, the Participant153s Options (whether vesting pursuant to (i) or (ii) or<br \/>\npreviously vested) shall expire on the fifth anniversary of the termination<br \/>\ndate.<\/p>\n<p><strong>4.5. <\/strong>If the employment of a Participant is terminated due to<br \/>\ndeath or disability, then (i) if the date of such termination is after the<br \/>\ncalendar year of the Grant Date, the Options shall vest immediately, or (ii) if<br \/>\nthe date of such termination is in the calendar year of the Grant Date, a<br \/>\nportion of the Options shall vest immediately, which portion shall be determined<br \/>\nas follows: (# shares covered by Option award) * (# of months worked in that<br \/>\nyear, rounded to nearest whole month) \/ 12. Subject to Section 4.6, such Options<br \/>\nwill expire on the first anniversary of the termination date.<\/p>\n<p><strong>4.6. <\/strong>Options that have not previously expired will expire at<br \/>\nthe close of business on the tenth anniversary of the Grant Date; provided,<br \/>\nhowever, that Options granted to employees residing in Switzerland on the Grant<br \/>\nDate shall expire on the eleventh anniversary of the Grant Date. If Options<br \/>\nwould expire on a date that is not a business day, they will expire at the close<br \/>\nof business on the last business day preceding that date. A business day is any<br \/>\nday on which the Common Stock is traded on the New York Stock Exchange.<\/p>\n<hr>\n<p><strong>4.7. <\/strong>Except as the Committee may otherwise provide, Options<br \/>\nmay only be exercised by the Participant, the Participant153s legal<br \/>\nrepresentative, or a person to whom the Participant153s rights in the Options are<br \/>\ntransferred by will or the laws of descent and distribution.<\/p>\n<p><strong>4.8. <\/strong>A transfer of employment within the Company will not<br \/>\nconstitute a termination of employment within the meaning of the Plan.<\/p>\n<p><strong>4.9. <\/strong>A transfer of employment to a company that assumes an<br \/>\nOption or issues a substitute option in a transaction to which Section 424 of<br \/>\nthe Code applies will not constitute a termination of employment within the<br \/>\nmeaning of the Plan.<\/p>\n<p><strong>4.10. <\/strong>Except to the extent that it would cause the Option to<br \/>\nbe subject to Section 409(A) of the Code, the Committee may, in its sole<br \/>\ndiscretion and without receiving permission from any Participant, substitute<br \/>\nstock appreciation rights (&#8220;<u>SARs<\/u>&#8220;) for any or all outstanding Options.<br \/>\nUpon the grant of substitute SARs, the related Options replaced by the<br \/>\nsubstitute SARs shall be cancelled. The grant price of the substitute SARs shall<br \/>\nbe equal to the Option Price of the related Options, the term of the substitute<br \/>\nSARs shall not exceed the term of the related Options, and the terms and<br \/>\nconditions applicable to the substitute SARs shall otherwise be substantially<br \/>\nthe same as those applicable to the related Options replaced by the substitute<br \/>\nSARs. Upon exercise, the SARs will be settled in Common Stock.<\/p>\n<p><strong>5. Performance Share Units<\/strong><\/p>\n<p><strong>5.1. <\/strong>The PSUs will be earned based on the rank of Baxter153s<br \/>\ngrowth in shareholder value (&#8220;<u>GSV<\/u>&#8220;) relative to the GSV of companies in<br \/>\nthe healthcare peer group selected by the Committee. GSV will be measured over a<br \/>\nthree-year period beginning with the first day of the calendar year of the Grant<br \/>\nDate and ending on the last day of the third calendar year (the &#8220;<u>Performance<br \/>\nPeriod<\/u>&#8220;).<\/p>\n<p>The PSUs will pay out in shares of Common Stock in a range of 0% to 200% of<br \/>\nthe number of PSUs awarded to the Participant as follows:<\/p>\n<table style=\"width: 100%;\" width=\"100%\" cellpadding=\"0\" class=\" \" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"35%\" valign=\"bottom\"><\/td>\n<td width=\"3%\" valign=\"bottom\"><\/td>\n<td width=\"15%\" valign=\"bottom\"><\/td>\n<td width=\"1%\" valign=\"bottom\"><\/td>\n<td width=\"15%\" valign=\"bottom\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\">\n<p align=\"center\">Baxter Rank<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"bottom\">\n<p align=\"center\">Percentage of Target Grant Earned<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\">\n<p align=\"center\">85th percentile of peer group or above<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"top\"><\/td>\n<td valign=\"top\">\n<p align=\"right\">200<\/p>\n<\/td>\n<td valign=\"top\">\n<p>%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\">\n<p align=\"center\">75th percentile<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"top\"><\/td>\n<td valign=\"top\">\n<p align=\"right\">150<\/p>\n<\/td>\n<td valign=\"top\">\n<p>%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\">\n<p align=\"center\">60th percentile<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"top\"><\/td>\n<td valign=\"top\">\n<p align=\"right\">100<\/p>\n<\/td>\n<td valign=\"top\">\n<p>%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\">\n<p align=\"center\">25th percentile<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"top\"><\/td>\n<td valign=\"top\">\n<p align=\"right\">25<\/p>\n<\/td>\n<td valign=\"top\">\n<p>%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\">\n<p align=\"center\">Below 25th percentile<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"top\"><\/td>\n<td valign=\"top\">\n<p align=\"right\">0<\/p>\n<\/td>\n<td valign=\"top\">\n<p>%<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The PSUs will pay out linearly between each set of data points. GSV will be<br \/>\nmeasured based on the average closing stock prices over the last twenty days of<br \/>\nthe Performance Period (plus reinvested dividends) divided by average closing<br \/>\nstock prices over the twenty trading days prior to the beginning of the<br \/>\nPerformance Period.<\/p>\n<p>Following the end of the Performance Period, the Committee shall determine<br \/>\nthe payout, which determination shall be final and binding. Shares of Common<br \/>\nStock earned will be delivered or otherwise made available to the Participant as<br \/>\nsoon as practical after the Committee makes its determination but not later than<br \/>\nthe March 15 after the end of the Performance Period. PSUs will<\/p>\n<p>only be settled in shares of Common Stock. Any other settlement modality<br \/>\nshall be considered an exception, which would have to be approved separately by<br \/>\nthe Committee.<\/p>\n<p><strong>5.2. <\/strong>If a Participant153s employment with the Company<br \/>\nterminates before the end of the Performance Period, any unvested PSUs shall be<br \/>\nforfeited on the effective date of termination, except (i) in connection with a<br \/>\nQualifying Retirement or death or disability (each as outlined below), or (ii)<br \/>\nif the Participant is rehired by the Company within ninety days of termination,<br \/>\nin which case the Participant shall be construed to have been continuously<br \/>\nemployed by the Company for purposes of vesting.<\/p>\n<p><strong>5.3. <\/strong>If the employment of a Participant terminates in a<br \/>\nQualifying Retirement then (i) if the date of such termination is after the<br \/>\ncalendar year of the Grant Date, the PSUs will remain eligible for payout at the<br \/>\nend of the Performance Period on the terms provided in Section 5.1, or (ii) if<br \/>\nthe date of such termination is in the calendar year of the Grant Date a portion<br \/>\nof the PSUs shall remain eligible for payout at the end of the Performance<br \/>\nPeriod on the terms provided in Section 5.1, which portion shall be determined<br \/>\nas follows: (# PSUs awarded) * (# of months worked in that year, rounded to<br \/>\nnearest whole month) \/ 12.<\/p>\n<p><strong>5.4. <\/strong>If the employment with the Company of a Participant is<br \/>\nterminated due to death or disability, the PSUs shall vest as follows: (i) if<br \/>\nthe date of such termination is after the calendar year of the Grant Date, the<br \/>\nPSUs shall pay out within sixty days at 100% of the Target Grant (as depicted in<br \/>\nthe table in Section 5.1.), or (ii) if the date of such termination is in the<br \/>\ncalendar year of the Grant Date a portion of the PSUs shall pay out as provided<br \/>\nin (i), which portion shall be determined as follows: (# PSUs awarded) * (# of<br \/>\nmonths worked in that year, rounded to nearest whole month) \/ 12.<\/p>\n<p><strong>5.5. <\/strong>The PSUs shall not be transferable and may not be sold,<br \/>\nassigned, pledged, hypothecated or otherwise encumbered.<\/p>\n<p><strong>5.6. <\/strong>A transfer of employment within the Company will not<br \/>\nconstitute a termination of employment within the meaning of the Plan.<\/p>\n<p><strong>5.7. <\/strong>Until the shares of Common Stock have been delivered or<br \/>\notherwise made available as provided in Section 5.1, the Participant shall not<br \/>\nbe treated as a shareholder as to those shares of Common Stock relating to the<br \/>\nPSUs. Notwithstanding the foregoing, the Participant shall be permitted to<br \/>\nreceive additional PSUs with respect to the PSUs based upon the dividends and<br \/>\ndistributions paid on shares of Common Stock to the same extent as if each PSU<br \/>\nwere a share of Common Stock (without adjustment prior to vesting for payment<br \/>\nlevels set forth in the table in Section 5.1), which additional PSUs shall be<br \/>\ndetermined in amount and value in the Company153s discretion and shall be<br \/>\ndelivered or made available at the same time and to the same extent as the PSUs<br \/>\nto which they relate or as otherwise determined by the Company.<\/p>\n<p><strong>6. Restricted Stock Units<\/strong><\/p>\n<p><strong>6.1. <\/strong>Except for RSUs granted to the employees of the<br \/>\nCompany153s subsidiaries in France, RSUs are subject to being earned and vested as<br \/>\nfollows: (i) one-third on the first anniversary of the Grant Date, (ii)<br \/>\none-third on the second anniversary of the Grant Date, and (iii) the remainder<br \/>\non the third anniversary of the Grant Date (as applicable, the &#8220;<u>Vesting<br \/>\nDate<\/u>&#8220;). RSUs granted to<\/p>\n<hr>\n<p>the employees of the Company153s subsidiaries in France are subject to being<br \/>\nearned and vested on the second anniversary of the Grant Date in accordance with<br \/>\nthe attached French Addendum. If RSUs would become earned and vested on a date<br \/>\nthat is not a business day, the next business day shall be the Vesting Date. The<br \/>\nCompany will deliver or otherwise make available to the Participant within<br \/>\n2<sup>1<\/sup>\/2 months following the applicable Vesting Date one share of Common<br \/>\nStock for each RSU that vests. RSUs will only be settled in shares of Common<br \/>\nStock. Any other settlement method would be considered an exception and would<br \/>\nhave to be approved separately by the Committee.<\/p>\n<p><strong>6.2. <\/strong>If a Participant153s employment with the Company<br \/>\nterminates before an RSU Vesting Date, the RSU will be forfeited when the<br \/>\nParticipant153s employment with the Company terminates, except (i) in connection<br \/>\nwith a Qualifying Retirement or death or disability (each as outlined below), or<br \/>\n(ii) if the Participant is rehired by the Company within ninety days of<br \/>\ntermination, in which case the Participant shall be construed to have been<br \/>\ncontinuously employed by the Company for purposes of vesting and payout.<\/p>\n<p><strong>6.3. <\/strong>If the employment of a Participant terminates in a<br \/>\nQualifying Retirement then (i) if the date of such termination is after the<br \/>\ncalendar year of the Grant Date, the RSUs will remain eligible for payout on the<br \/>\nterms provided in Section 6.1, or (ii) if the date of such termination is in the<br \/>\ncalendar year of the Grant Date a portion of the RSUs shall remain eligible for<br \/>\npayout on the terms provided in Section 6.1, which portion shall be determined<br \/>\nas follows: (# RSUs awarded) * (# of months worked in that year, rounded to<br \/>\nnearest whole month) \/ 12.<\/p>\n<p><strong>6.4. <\/strong>If the employment with the Company of a Participant is<br \/>\nterminated due to death or disability, the RSUs shall vest as follows: (i) if<br \/>\nthe date of such termination is after the calendar year of the Grant Date, all<br \/>\nthe RSUs shall pay out within sixty days, or (ii) if the date of such<br \/>\ntermination is in the calendar year of the Grant Date a portion of the RSUs<br \/>\nshall pay out as provided in (i), which portion shall be determined as follows:<br \/>\n(# RSUs awarded) * (# of months worked in that year, rounded to nearest whole<br \/>\nmonth) \/ 12.<\/p>\n<p><strong>6.5. <\/strong>The RSUs shall not be transferable and may not be sold,<br \/>\nassigned, pledged, hypothecated or otherwise encumbered.<\/p>\n<p><strong>6.6. <\/strong>A transfer of employment within the Company will not<br \/>\nconstitute a termination of employment within the meaning of the Plan.<\/p>\n<p><strong>6.7. <\/strong>Until the shares of Common Stock have been delivered or<br \/>\notherwise made available as provided in Section 6.1, the Participant shall not<br \/>\nbe treated as a shareholder as to those shares of Common Stock relating to the<br \/>\nRSUs. Notwithstanding the foregoing, the Participant shall be permitted to<br \/>\nreceive additional RSUs with respect to the RSUs based upon the dividends and<br \/>\ndistributions paid on shares of Common Stock to the same extent as if each RSU<br \/>\nwere a share of Common Stock, which additional RSUs shall be delivered or made<br \/>\navailable at the same time and to the same extent as the RSUs to which they<br \/>\nrelate or as otherwise determined by the Company.<\/p>\n<hr>\n<p><strong>7. Change in Control<\/strong><\/p>\n<p>Notwithstanding any other provision of the Program or this Plan (and in lieu<br \/>\nof vesting at the times otherwise provided in the Program), if the termination<br \/>\nof employment of a Participant occurs upon or within twenty-four (24) months<br \/>\nfollowing a Change in Control by reason of (a) termination by the Company for<br \/>\nreasons other than for Cause or (b) termination by the Participant for Good<br \/>\nReason, then (i) all Awards shall become immediately vested and exercisable, and<br \/>\n(ii) in the case of PSUs, all performance targets shall be deemed to be met at<br \/>\n100% of the Target Grant (consistent with the table in Section 5.1), as may be<br \/>\nequitably increased in the discretion of the Committee to reflect actual<br \/>\nperformance through the date of the Change in Control.<\/p>\n<hr>\n<p><strong>8. Additional Definitions<\/strong><\/p>\n<p>For purposes of the Plan, the following capitalized terms shall have the<br \/>\nmeanings provided below.<\/p>\n<p>&#8220;<u>Affiliate<\/u>&#8221; shall have the meaning set forth in Rule 12b-2 promulgated<br \/>\nunder Section 12 of the Securities Exchange Act of 1934, as amended.<\/p>\n<p>&#8220;<u>Cause<\/u>&#8221; means (i) the willful and continued failure by the Participant<br \/>\nto substantially perform his duties with the Company that has not been cured<br \/>\nwithin 30 days after written demand for substantial performance is delivered by<br \/>\nthe Company, which demand specifically identifies the manner in which the<br \/>\nParticipant has not substantially performed (other than any such failure<br \/>\nresulting from the Participant153s incapacity due to physical or mental illness),<br \/>\n(ii) the willful engaging by the Participant in conduct which is demonstrably<br \/>\nand materially injurious to the Company, monetarily or otherwise, or (iii) the<br \/>\nengaging by the Participant in egregious misconduct involving serious moral<br \/>\nturpitude, determined in the reasonable judgment of the Committee. For purposes<br \/>\nhereof, no act, or failure to act, on the Participant153s part shall be deemed<br \/>\n&#8220;willful&#8221; unless done, or omitted to be done, by the Participant not in good<br \/>\nfaith and without reasonable belief that such action was in the best interest of<br \/>\nthe Company. Notwithstanding the foregoing, if a Participant is a party to a<br \/>\nChange in Control Agreement, &#8220;Cause&#8221; with respect to such Participant shall have<br \/>\nthe meaning given to such term in the Change in Control Agreement.<\/p>\n<p>&#8220;<u>Change in Control<\/u>&#8221; means the first to occur of any of the following:<br \/>\n(i) any Person is or becomes the beneficial owner (as defined in Rule 13d-3<br \/>\nunder the Exchange Act), directly or indirectly, of securities of Baxter (not<br \/>\nincluding in the securities beneficially owned by such Person any securities<br \/>\nacquired directly from the Company or its Affiliates) representing 30% or more<br \/>\nof the combined voting power of Baxter153s then outstanding securities, excluding<br \/>\nany Person who becomes such a beneficial owner in connection with a merger or<br \/>\nconsolidation of Baxter or any direct or indirect subsidiary of Baxter with any<br \/>\nother corporation immediately following which the individuals who comprise the<br \/>\nBoard immediately prior thereto constitute at least a majority of the board of<br \/>\ndirectors of (A) any parent of Baxter or the entity surviving such merger or<br \/>\nconsolidation or (B) if there is no such parent, of Baxter or such surviving<br \/>\nentity; (ii) the following individuals cease for any reason to constitute a<br \/>\nmajority of the number of directors then serving: individuals who, on the Grant<br \/>\nDate, constitute the Board and any new director (other than a director whose<br \/>\ninitial assumption of office is in connection with an actual or threatened<br \/>\nelection contest, including but not limited to a consent solicitation, relating<br \/>\nto the election of directors of Baxter) whose appointment or election by the<br \/>\nBoard or nomination for election by Baxter153s shareholders was approved or<br \/>\nrecommended by a vote of at least two-thirds (2\/3) of the directors then still<br \/>\nin office who either were directors on the Grant Date or whose appointment,<br \/>\nelection or nomination for election was previously so approved or recommended;<br \/>\n(iii) there is consummated a merger or consolidation of Baxter or any direct or<br \/>\nindirect subsidiary of Baxter with any other corporation or other entity, other<br \/>\nthan a merger or consolidation immediately following which the individuals who<br \/>\ncomprise the Board immediately prior thereto constitute at least a majority of<br \/>\nthe board of directors of (A) any parent of Baxter or the entity surviving such<br \/>\nmerger or consolidation or (B) if there is no such parent, of Baxter or such<br \/>\nsurviving entity; or (iv) the shareholders of Baxter approve a plan of complete<br \/>\nliquidation<\/p>\n<hr>\n<p>or dissolution of Baxter or there is consummated an agreement for the sale or<br \/>\ndisposition by Baxter of all or substantially all of Baxter153s assets, other than<br \/>\na sale or disposition by Baxter of all or substantially all of Baxter153s assets<br \/>\nimmediately following which the individuals who comprise the Board immediately<br \/>\nprior thereto constitute at least a majority of the board of directors of (A)<br \/>\nany parent of Baxter or of the entity to which such assets are sold or disposed<br \/>\nor (B) if there is no such parent, of Baxter or such entity.<\/p>\n<p>&#8220;<u>Change in Control Agreement<\/u>&#8221; means an employment agreement, change in<br \/>\ncontrol agreement or plan, severance agreement or plan, or other agreement<br \/>\nbetween the Company and a Participant or Company plan covering a Participant<br \/>\nthat provides for benefits upon termination for good reason or cause in<br \/>\nconnection with a change in control of Baxter and that has been approved by the<br \/>\nBoard or the Committee.<\/p>\n<p>&#8220;<u>Good Reason<\/u>&#8221; means the occurrence (without the Participant153s express<br \/>\nwritten consent) of any of the following which occur on or after a Change in<br \/>\nControl: (i) reduction by the Company in the Participant153s annual base salary as<br \/>\nin effect on the Grant Date or as the same may be increased from time to time;<br \/>\n(ii) the relocation of the Participant153s principal place of employment to a<br \/>\nlocation more than fifty (50) miles from the Participant153s principal place of<br \/>\nemployment immediately prior to the Change in Control or the Company153s requiring<br \/>\nthe Participant to be based anywhere other than such principal place of<br \/>\nemployment (or permitted relocation thereof) except for required travel on the<br \/>\nCompany153s business to an extent substantially consistent with the Participant153s<br \/>\nbusiness travel obligations as in effect immediately prior to the Change in<br \/>\nControl; or (iii) the failure by the Company to pay to the Participant any<br \/>\nportion of the Participant153s current compensation or to pay to the Participant<br \/>\nany portion of an installment of deferred compensation under any deferred<br \/>\ncompensation program of the Company, within seven (7) days of the date such<br \/>\ncompensation is due. Notwithstanding the foregoing, if a Participant is a party<br \/>\nto a Change in Control Agreement, &#8220;Good Reason&#8221; with respect to such Participant<br \/>\nshall have the meaning given to such term in the Change in Control Agreement.\n<\/p>\n<p>&#8220;<u>Person<\/u>&#8221; shall have the meaning given in Section 3(a)(9) of the<br \/>\nSecurities Exchange Act of 1934, as amended, as modified and used in Sections<br \/>\n13(d) and 14(d) thereof, except that such term shall not include (i) Baxter or<br \/>\nany of its subsidiaries, (ii) a trustee or other fiduciary holding securities<br \/>\nunder an employee benefit plan of Baxter or any of its Affiliates, (iii) an<br \/>\nunderwriter temporarily holding securities pursuant to an offering of such<br \/>\nsecurities, or (iv) a corporation owned, directly or indirectly, by the<br \/>\nshareholders of Baxter in substantially the same proportions as their ownership<br \/>\nof stock of Baxter.<\/p>\n<p><strong>9. Withholding<\/strong><\/p>\n<p>Except as otherwise provided by the Committee, all Awards (including the<br \/>\npayout of Awards) under the Plan are subject to withholding of all applicable<br \/>\ntaxes, which withholding obligations may be satisfied, with the consent of the<br \/>\nCommittee, through the surrender of shares of Company Common Stock that the<br \/>\nParticipant already owns or to which a Participant is otherwise entitled under<br \/>\nthe Plan; provided, however, with the consent of the Committee, previously-owned<br \/>\nShares that have been held by the Participant or Shares to which the Participant<br \/>\nis entitled under the Plan may only be used to satisfy the minimum tax<br \/>\nwithholding required by applicable law (or other rates that will not have a<br \/>\nnegative accounting impact).<\/p>\n<hr>\n<p><strong>10. Program Controls<\/strong><\/p>\n<p>Except as specifically provided in the Plan, in the event of any<br \/>\ninconsistency between the Plan and the Program, the Program will control, but<br \/>\nonly to the extent such Program provisions will not violate the provisions of<br \/>\nsection 409A of the Code.<\/p>\n<hr>\n<p align=\"center\"><strong>BAXTER INTERNATIONAL INC. <br \/>\nFrench Addendum To 2011 Equity Plan <br \/>\nAdopted as of March 4, 2011<\/strong><\/p>\n<p><strong>1. PURPOSES OF THIS ADDENDUM<\/strong><\/p>\n<p>The Baxter International Inc. 2007 Incentive Plan (the &#8220;<u>Program<\/u>&#8220;) was<br \/>\nadopted by the Board of the Company on February 13, 2007 and approved by the<br \/>\nshareholders of the Company on May 1, 2007 for the benefit of employees,<br \/>\nofficers and directors, of the Company and its Affiliates, including its French<br \/>\nsubsidiary(ies).<\/p>\n<p>This Addendum (the &#8220;<u>Addendum<\/u>&#8220;) approved on March 4, 2011, sets out the<br \/>\nterms for French Qualified Stock Options and French Qualified Free Shares<br \/>\ngranted jointly under the 2007 Incentive Plan (the &#8220;<u>Program<\/u>&#8220;) and the<br \/>\nEquity Plan (the &#8220;<u>Plan<\/u>&#8220;) adopted as of March 4, 2011 by Baxter<br \/>\nInternational Inc. (the &#8220;<u>Company<\/u>&#8220;) to Eligible Participants, residents in<br \/>\nFrance, or otherwise selected by the Committee for participation under this<br \/>\nAddendum. This Addendum is adopted in accordance with Sections 3<br \/>\n&#8220;Administration&#8221; and 9 &#8220;Amendment and Termination&#8221; of the Program to benefit<br \/>\nfrom the specific tax and social security treatment applicable in France to<br \/>\nQualified Option Awards and Qualified Free Share Awards.<\/p>\n<p>For the avoidance of doubt, the present Addendum is not applicable to awards<br \/>\npaid in cash and to awards of Performance Shares, Restricted Shares, Performance<br \/>\nUnits, Cash Incentive Awards or Stock Appreciation Rights. Consequently,<br \/>\ndispositions of the Program and\/or the Plans applicable to these are not<br \/>\napplicable to Awards made further to the present Addendum.<\/p>\n<p>The rules contained in the Program and the Plans will apply to Awards made<br \/>\nunder this Addendum, unless specifically stated otherwise. The terms and<br \/>\nconditions of the present Addendum are identical to the Plan except as provided<br \/>\nbelow. Words and expressions used in this Addendum and not defined herein shall<br \/>\nhave the same meaning as those words and expressions used in the Program and<br \/>\nPlans. The additional terms and conditions in this Addendum are to be read in<br \/>\nconjunction with the Program and Plans.<\/p>\n<p>To the extent that the Program and the Plans contradict the provisions set<br \/>\nforth hereinafter, the Addendum provisions shall prevail. In addition, to the<br \/>\nextent that the terms and conditions specified in the applicable grant<br \/>\ncommunication letter contradict the provisions set forth hereinafter, the<br \/>\nAddendum provisions shall prevail.<\/p>\n<p><strong>2. OPTION AWARDS<\/strong><\/p>\n<p><strong>2.1. General<\/strong><\/p>\n<p>The Addendum contains the term of &#8220;Qualified Stock Option&#8221; which refers to<br \/>\nthe awards of Options granted as per Section 6 of the Program jointly with<br \/>\nSection 4 of the Equity Plan in accordance with articles L.225-177 to L.225-185<br \/>\nof the French Commercial Code. Consequently, the terms &#8220;Stock Option&#8221;,<br \/>\n&#8220;Options&#8221;, &#8220;Qualified Stock Option Awards&#8221; and &#8220;Option Award&#8221; herein shall be<br \/>\nconstrued and interpreted accordingly.<\/p>\n<hr>\n<p><strong>2.2. Grant of Options<\/strong><\/p>\n<p>Notwithstanding the provisions of the Plan, the following rules shall apply<br \/>\nto Options Awards granted under this Addendum.<\/p>\n<p>In no event shall the number of shares of Common Stock subject to outstanding<br \/>\nunexercised Options granted pursuant to this Addendum give right to subscribe<br \/>\nshares exceeding one-third (1\/3) of the Company153s share capital. The total<br \/>\nnumber of shares of Common Stock that may be granted to Participants under this<br \/>\nAddendum shall not exceed 10% of the Granting Company153s share capital at Grant<br \/>\nDate, when Options are over existing shares. Outstanding unvested Full Value<br \/>\nAwards shall be treated as shares of Common Stock in order to determine the<br \/>\nthreshold of 10% of the granting Company153s share capital.<\/p>\n<p>If an Option provides a right to acquired already existing shares \/ treasury<br \/>\nshares, the Company shall procure sufficient shares to satisfy the Exercise of<br \/>\nsuch Option at least one day prior to the Participant153s having the right to<br \/>\nExercise such Option. Shares acquired by the Participant upon Option Exercise<br \/>\nshall be registered in the name of the Participant or held in an identifiable<br \/>\naccount. Participants will have the voting and dividend rights attached to the<br \/>\nShares acquired upon Exercise Date as of that date. Upon Exercise, no cash<br \/>\nreplacement of shares of Common Stock is allowed.<\/p>\n<p>Any market repurchased shares of Common Stock to be delivered to Eligible<br \/>\nIndividuals upon exercise of Awards granted hereunder shall be acquired by the<br \/>\nCompany at least one (1) day before the applicable vesting date. The Vesting<br \/>\nDate designates the date upon which options, in full or in part, become<br \/>\nexercisable by the Participant.<\/p>\n<p><strong>2.3. Grant Date<\/strong><\/p>\n<p>No Options may be granted under this Addendum: (a) before the end of a period<br \/>\nof twenty (20) trading days following (i) a dividend record date for any<br \/>\ndividend or (ii) an agreement by the shareholders of the Company to increase the<br \/>\nissued share capital of the Company; (b) within a period of ten (10) trading<br \/>\ndays before and after the publication of consolidated accounting results of the<br \/>\nCompany (e.g., the filing of an Annual Report on Form 10-K); or (c) within a<br \/>\nperiod beginning with the date upon which the Company153s executive officers<br \/>\nbecome aware of any nonpublic information that, if it were to become publicly<br \/>\nknown, would reasonably be expected to affect the value of the Company153s shares<br \/>\nof Common Stock and ending ten (10) trading days after that information has been<br \/>\npublicized.<\/p>\n<p>The Grant Date shall be the date upon which the Committee approves grants to<br \/>\nEligible Individuals or as soon thereafter as possible, ensuring that the above<br \/>\ndispositions are respected. The Grant date shall be stated in the grant<br \/>\ndocumentation letter.<\/p>\n<p><strong>2.4. Eligible Individuals<\/strong><\/p>\n<p>Notwithstanding the provisions of Sections 2(k) and 4 of the Plan, Section 2<br \/>\nof the Equity Plan, Options may only be granted under this Addendum to Eligible<br \/>\nIndividuals. No Option Award may be made to Eligible Individuals holding more<br \/>\nthan ten percent (10%) of the issued share capital in the Company.<\/p>\n<hr>\n<p><strong>2.5. Option Price<\/strong><\/p>\n<p>The Option Price shall be the greatest of: (a) the Fair Market Value of a<br \/>\nshare of Common Stock on the Grant Date; (b) eighty percent (80%) of the average<br \/>\nopening price of a share of Common Stock over the twenty (20) trading days<br \/>\npreceding Grant Date; (c) if treasury shares are used to satisfy exercise of the<br \/>\nOptions, eighty percent (80%) of the average repurchase price per share paid by<br \/>\nthe Company for such treasury shares. The Option Price is stated in the grant<br \/>\ndocumentation letter and is fixed on the Grant Date.<\/p>\n<p><strong>2.6. Adjustment to Option Price<\/strong><\/p>\n<p>The number of Options and the Option Price for grants made pursuant to this<br \/>\nAddendum may be adjusted in connection with changes in capital operations<br \/>\ndescribed in article L.225-181 of the French Commercial Code so that economic<br \/>\nrights are maintained.<\/p>\n<p><strong>2.7. Vesting and Exercise of Options<\/strong><\/p>\n<p>Options granted pursuant to this Addendum shall first become exercisable on<br \/>\nthe fourth (4th) anniversary of the Grant Date. In case of earlier exercise of<br \/>\nOptions further notably to Change of Control or Termination of Employment, the<br \/>\nCommittee may, upon discretionary decision, impose a share sale restriction to<br \/>\nthe Participant until the fourth anniversary of grant to secure eligibility to<br \/>\nthe French stock-option regime.<\/p>\n<p><strong>2.8. Termination of Employment<\/strong><\/p>\n<p>Notwithstanding anything to the contrary, no Option may be exercised before<br \/>\nthe first anniversary of the Grant Date and shares underlying Options exercised<br \/>\nbefore the fourth anniversary of the Grant Date shall be subject to a share sale<br \/>\nrestriction until the fourth anniversary of grant. By exception, the Committee<br \/>\nmay discretionarily decide that Options may be exercised at an earlier date and<br \/>\n\/ or shares sold at an earlier date.<\/p>\n<p>If a Participant153s employment with the Company terminates after the<br \/>\nParticipant153s Options become exercisable, the Options will not expire<br \/>\nimmediately but will remain exercisable. Subject to Section 4.6 of the Plans,<br \/>\nand except in the event of a Qualifying Retirement, the Options will expire<br \/>\nninety days after the Participant153s employment with the Company terminates. If<br \/>\nthe Participant dies or becomes disabled during the ninety-day period, the<br \/>\nOptions will expire on the first anniversary of the termination date.<\/p>\n<p>If the employment of a Participant who is at least 65 years of age, or at<br \/>\nleast 55 years of age with at least 10 years of employment with the Company, is<br \/>\nterminated other than for Cause or by reason of the Participant153s death or<br \/>\ndisability (a &#8220;<u>Qualifying Retirement<\/u>&#8220;) then (i) if the date of such<br \/>\ntermination is after the calendar year of the Grant Date, the Options shall<br \/>\ncontinue to vest as provided in Section 2.7, or (ii) if the date of such<br \/>\ntermination is in the calendar year of the Grant Date, a portion of the Options<br \/>\nshall continue to vest as provided in Section 2.7, which portion shall be<br \/>\ndetermined as follows: (# shares covered by Option award) * (# of months worked<br \/>\nin that year, rounded to nearest whole month) \/ 12. Subject to Section 4.6 of<br \/>\nthe Plans, the Participant153s Options (whether vesting pursuant to (i) or (ii) or<br \/>\npreviously vested) shall expire on the fifth anniversary of the termination<br \/>\ndate.<\/p>\n<hr>\n<p>If the employment of a Participant is terminated due to death, all Options<br \/>\nshall vest immediately and the shares shall be immediately transferable.<\/p>\n<p>If the employment of a Participant is terminated due to disability<br \/>\ncorresponding to the 2nd or 3rd categories of Article L.341-4 of the French<br \/>\nSocial Security Code 1, then (i) if the date of such termination is after the<br \/>\ncalendar year of the Grant Date, the Options shall vest immediately, or (ii) if<br \/>\nthe date of such termination is in the calendar year of the Grant Date, a<br \/>\nportion of the Options shall vest immediately, which portion shall be determined<br \/>\nas follows: (# shares covered by Option award) * (# of months worked in that<br \/>\nyear, rounded to nearest whole month) \/ 12. Subject to Section 4.6, such Options<br \/>\nwill expire on the first anniversary of the termination date. The shares<br \/>\nacquired upon option exercise shall be immediately transferable.<\/p>\n<p>If the employment of a Participant is terminated due to disability other than<br \/>\nto the 2nd or 3rd categories of Article L.341-4 of the French Social Security<br \/>\nCode, then (i) if the date of such termination is after the calendar year of the<br \/>\nGrant Date, the Options shall continue to vest as provided in Section 2.7, or<br \/>\n(ii) if the date of such termination is in the calendar year of the Grant Date,<br \/>\na portion of the Options shall continue to vest as provided in Section 2.7,<br \/>\nwhich portion shall be determined as follows: (# shares covered by Option award)<br \/>\n* (# of months worked in that year, rounded to nearest whole month) \/ 12.<br \/>\nSubject to Section 4.6, such Options will expire on the first anniversary of the<br \/>\ntermination date.<\/p>\n<p><strong>2.9. Substitution of SARs for Options : Tandem Awards<\/strong><\/p>\n<p>Neither SARs nor any other incentive may be substituted for Options granted<br \/>\npursuant to this Addendum. No tandem awards may be made pursuant to this<br \/>\nAddendum.<\/p>\n<p><strong>3. FULL VALUE AWARDS<\/strong><\/p>\n<p><strong>3.1. Definitions<\/strong><\/p>\n<p>&#8220;<u>Full Value Award<\/u>&#8221; means a grant made by Baxter International Inc. to<br \/>\nthe Participant of a right to receive one Share in the future at a nil cost, in<br \/>\nthe form of a Restricted Stock Unit. Such grant can be paid exclusively in<br \/>\nshares of Common Stock, is awarded respectively in accordance with Section 7 of<br \/>\nthe Program, in accordance with Section 5 of the 2011 Annual Equity Plan for<br \/>\nRestricted Stock Units, and in accordance with articles L.225-197-1 to<br \/>\nL.225-197-6 of the French Commercial Code on Qualified Free Shares Awards. Such<br \/>\ngrant cannot be subject to conditions, restrictions and contingencies relating<br \/>\nto dividend or dividend equivalent rights and deferred payment or settlement.<br \/>\nThe purpose of this Addendum is to ensure that grants over shares of Common<br \/>\nStock are in conformity with the applicable French legislation, and are entitled<br \/>\nto the corresponding specific French tax and social security treatment. One (1)<br \/>\naward gives right to acquire one (1) share subject to satisfaction of applicable<br \/>\nconsiderations, contingencies, conditions, restrictions, if any.<\/p>\n<p>&#8220;<u>Grant Date<\/u>&#8221; means the date on which the Committee designates the<br \/>\nParticipant eligible to receive a Full Value Award further to the present<br \/>\nAddendum, and specifies the terms and conditions of such Award, including the<br \/>\nmaximum number of underlying shares, the Vesting and Share Sale Restriction<br \/>\nPeriods. The Grant Date is stated in the grant communication letter.<\/p>\n<hr>\n<p>&#8220;<u>Vesting Date<\/u>&#8221; means the date on which the Participant acquires the<br \/>\nshares of Common Stock. The Vesting Date is stated in the grant communication<br \/>\nletter.<\/p>\n<p><strong>3.2. Grant<\/strong><\/p>\n<p>Notwithstanding the provisions of the Plan, the following rules shall apply<br \/>\nto Full Value Awards granted under this Addendum.<\/p>\n<p>The total number of shares of Common Stock that may be granted to<br \/>\nParticipants under this Addendum shall not exceed 10% of the Granting Company153s<br \/>\nshare capital at Grant Date. Outstanding unvested Full Value Awards shall be<br \/>\ntreated as shares of Common Stock in order to determine the threshold of 10% of<br \/>\nthe granting Company153s share capital. Shares of Common Stock of the Company to<br \/>\nbe delivered under the Plan may be market repurchased shares (already existing<br \/>\nshares) or newly issued shares. For Full Value Awards granted over already<br \/>\nexisting shares, corresponding shares shall be repurchased by the Company at<br \/>\nleast one day before the applicable Vesting Date.<\/p>\n<p>A Full Value Award may not be made to employees and\/or Corporate Officers<br \/>\nholding more than 10% of the issued share capital in the Company or who, after<br \/>\nhaving received shares under a Full Value Award granted hereunder, would hold<br \/>\nmore than 10% of the issued share capital in the Company.<\/p>\n<p>Shares acquired by the Participant upon Vesting Date will be registered in<br \/>\nthe name of the Participant or be held in an identifiable account. Participants<br \/>\nwill have the voting and dividend rights attached to the Shares acquired upon<br \/>\nVesting Date as of that date.<\/p>\n<p><strong>3.3. Vesting period \/ Performance period<\/strong><\/p>\n<p>Notwithstanding anything to the contrary, in relation to Full Value Awards,<br \/>\nthe Vesting Date shall not be earlier than the second anniversary of the Grant<br \/>\nDate, in any circumstances other than in the event of the death of the<br \/>\nParticipant or in the event of disability corresponding to the 2nd or 3rd<br \/>\ncategories of Article L.341-4 of the French Social Security Code<sup>1<\/sup>.\n<\/p>\n<p>Unless otherwise stated in the grant documentation letter, the Vesting Date<br \/>\nfor Restricted Stock Units shall be the second anniversary of the Grant Date.<br \/>\nThe Board of Directors or the Committee reserves the right to reduce or modify<br \/>\nthe Vesting Date in accordance with and to conform with any amendments to the<br \/>\nFrench Tax Code and\/or to the provisions of the French Commercial Code governing<br \/>\nQualified Free Shares. By exception, the Board or the Committee may<br \/>\ndiscretionarily decide that Vesting Date may occur before the second (2nd)<br \/>\nanniversary of the Grant Date.<\/p>\n<table style=\"width: 100%;\" width=\"100%\" cellpadding=\"0\" class=\" \" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"3%\"><\/td>\n<td width=\"1%\"><\/td>\n<td width=\"96%\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p><sup>1<\/sup><\/p>\n<\/td>\n<td valign=\"top\"><\/td>\n<td valign=\"top\">\n<p>For information purposes, please note that<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>&#8211;<\/p>\n<\/td>\n<td valign=\"top\"><\/td>\n<td valign=\"top\">\n<p>Second category stands for a disabled person unable to perform any<br \/>\nprofessional activity; and<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>&#8211;<\/p>\n<\/td>\n<td valign=\"top\"><\/td>\n<td valign=\"top\">\n<p>Third category stands for a disabled person unable to perform any<br \/>\nprofessional activity and requiring third party assistance in order to perform<br \/>\neveryday life tasks.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr>\n<p><strong>3.4. Share Sale Restriction Period<\/strong><\/p>\n<p>As of the Vesting Date, shares of Common Stock acquired pursuant to Full<br \/>\nValue Award are subject to a minimum of two (2) year share sale restriction,<br \/>\nduring which the shares may not be sold (the &#8220;<u>Share Sale Restriction<br \/>\nPeriod<\/u>&#8220;). If the Participant leaves the employment of the Company or any<br \/>\nAffiliate(s), at any time after the Vesting Date, the shares acquired shall not<br \/>\nbe freely transferable before the expiration of the Share Sale Restriction<br \/>\nPeriod.<\/p>\n<p>By exception, in the event of the Participant153s death, the heirs shall not be<br \/>\nsubject to the Share Sale Restriction Period, the shares being freely<br \/>\ntransferable upon the Participant153s death. By exception, notwithstanding any<br \/>\nprovision of the Plan and the present Addendum to the contrary, in case of<br \/>\ndisability corresponding to the 2nd or 3rd categories of Article L.341-4 of the<br \/>\nFrench Social Security Code1, the Participant is entitled to sell the shares<br \/>\nprior to the end of the Share Sale Restriction Period, if any.<\/p>\n<p>For the avoidance of doubt, if the Participant leaves the employment, the<br \/>\nCompany or any Affiliate(s), at any time before the term of the Share Sale<br \/>\nRestriction Period, due to his\/her Disability other than of second (2nd) or<br \/>\nthird (3rd) category as defined in Article L.341-4 of the French Social Security<br \/>\nCode1, the Participant shall not be entitled to sale the shares before the<br \/>\nsecond (2nd) anniversary of the Vesting Date.<\/p>\n<p>By exception, the Board or the Committee may discretionarily decide that a<br \/>\nParticipant shall not be subject to the Share Sale Restriction Period.<\/p>\n<p><strong>3.5. Additional Full Value Awards<\/strong><\/p>\n<p>Notwithstanding anything to the contrary in the Program or the Plans, the<br \/>\nParticipant shall not be permitted to receive additional Full Value Awards with<br \/>\nrespect to the Restricted Stock Units based upon the dividends and distributions<br \/>\npaid on shares of Common Stock as if each Restricted Stock Unit was a share of<br \/>\nCommon Stock.<\/p>\n<p><strong>3.6. Termination of Employment<\/strong><\/p>\n<p>Notwithstanding anything to the contrary in the Program or the Plans, in case<br \/>\nof Participant153s death, his\/her heirs may request the acquisition of the<br \/>\nunvested Restricted Stock Units within six (6) months following this event.<\/p>\n<p>By exception, if the Participant ceases his employment within the Company or<br \/>\nany Affiliate(s) due to his disability corresponding to the 2nd or 3rd<br \/>\ncategories of Article L.341-4 of the French Social Security Code<sup>1<\/sup>,<br \/>\nthe Award shall vest as follows: (i) if the date of such termination is after<br \/>\nthe calendar year of the Grant Date, all the RSUs shall pay out within sixty<br \/>\ndays, or (ii) if the date of such termination is in the calendar year of the<br \/>\nGrant Date a portion of the RSUs shall pay out as provided in (i), which portion<br \/>\nshall be determined as follows: (# RSUs awarded) * (# of months worked in that<br \/>\nyear, rounded to nearest whole month) \/ 12.<\/p>\n<p>Notwithstanding anything to the contrary, if the employment with the Company<br \/>\nor any Affiliate(s) is terminated due to disability other than of second (2nd)<br \/>\nor third (3rd) category as defined in Article L.341-4 of the French Social<br \/>\nSecurity Code, (i) if the date of such termination<\/p>\n<hr>\n<p>is after the calendar year of the Grant Date, the RSUs will remain eligible<br \/>\nfor payout on the terms provided in Section 3.3, or (ii) if the date of such<br \/>\ntermination is in the calendar year of the Grant Date a portion of the RSUs<br \/>\nshall remain eligible for payout on the terms provided in Section 3.3, which<br \/>\nportion shall be determined as follows: (# RSUs awarded) * (# of months worked<br \/>\nin that year, rounded to nearest whole month) \/ 12.<\/p>\n<p>Notwithstanding anything to the contrary, if the employment with the Company<br \/>\nor any Affiliate(s) is terminated due to Qualified Retirement, (i) if the date<br \/>\nof such termination is after the calendar year of the Grant Date, the RSUs will<br \/>\nremain eligible for payout on the terms provided in Section 3.3, or (ii) if the<br \/>\ndate of such termination is in the calendar year of the Grant Date a portion of<br \/>\nthe RSUs shall remain eligible for payout on the terms provided in Section 3.3,<br \/>\nwhich portion shall be determined as follows: (# RSUs awarded) * (# of months<br \/>\nworked in that year, rounded to nearest whole month) \/ 12.<\/p>\n<p><strong>4. Non-Transferability of Awards<\/strong><\/p>\n<p>No Award granted under the Plan shall be transferable other than by will or<br \/>\nthe law of descent and distribution.<\/p>\n<p><strong>4.1. Change in Control<\/strong><\/p>\n<p>When a tax favourable treatment may be available further to French<br \/>\nlegislation (article 163 bis C-1 bis of the French Tax Code), the Committee,<br \/>\nupon discretionary decision, may give the choice to French participants, but has<br \/>\nno obligation to. When the Company decides to exchange shares with no cash<br \/>\nconsideration, pursuant to applicable French legal and tax rules and notably,<br \/>\narticle L.225-197-1  \u00a7 III of the French Commercial Code (as amended), then the<br \/>\ndispositions of the Plan as well as the periods of Vesting and Share Sale<br \/>\nRestriction will remain applicable to shares or rights received in exchange.\n<\/p>\n<p><strong>5. Tax Withholding<\/strong><\/p>\n<p>Notwithstanding any provision to the contrary, no shares of Common Stock may<br \/>\nbe used to satisfy any social security or tax withholding due for Awards granted<br \/>\nfurther to the present Addendum.<\/p>\n<p>The Company or its Affiliates shall have the right to require payment from a<br \/>\nParticipant to cover any applicable withholding or other employment taxes due<br \/>\nwith respect to Awards granted hereunder or shall have the right to deduct any<br \/>\napplicable withholding or other employment taxes due from other compensation<br \/>\nincome paid to the Participant.<\/p>\n<p><strong>6. Amendment, Modifications to this Addendum.<\/strong><\/p>\n<p>No modification can be made to this Addendum, or to outstanding Awards<br \/>\ngranted hereunder, which is disadvantageous to the Participant or which is in<br \/>\ncontradiction to the French Commercial Code and French Tax Code provisions,<br \/>\nunless the modification is the result of a new law or regulation or any other<br \/>\nobligatory disposition or ruling applied to the Company or any other Subsidiary,<br \/>\nhaving legal, fiscal or social implications.<\/p>\n<hr>\n<p>The terms of this Addendum shall be interpreted in accordance with the<br \/>\nrelevant provisions set forth by French tax and social laws, as well as the<br \/>\nregulations issued by the French tax and social administrations.<\/p>\n<p>In the event of any conflict between the provisions of this Addendum and the<br \/>\nPlan, the provisions of the Addendum shall prevail for any Awards made to<br \/>\nParticipants under this Addendum.<\/p>\n<p><strong>7. Additional Definitions<\/strong><\/p>\n<p>&#8220;<u>Affiliate<\/u>&#8221; means any entity:<\/p>\n<table style=\"width: 100%;\" width=\"100%\" cellpadding=\"0\" class=\" \" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"2%\" valign=\"top\"><\/td>\n<td width=\"3%\" valign=\"top\">\n<p>&#8211;<\/p>\n<\/td>\n<td width=\"1%\" valign=\"top\"><\/td>\n<td valign=\"top\">\n<p>in which the Company holds, directly or indirectly, at least 10% of the<br \/>\nvoting rights and \/ or equity;<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"2%\" valign=\"top\"><\/td>\n<td width=\"3%\" valign=\"top\">\n<p>&#8211;<\/p>\n<\/td>\n<td width=\"1%\" valign=\"top\"><\/td>\n<td valign=\"top\">\n<p>that holds, directly or indirectly, at least 10% of the voting rights and \/<br \/>\nor equity in the Company;<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"2%\" valign=\"top\"><\/td>\n<td width=\"3%\" valign=\"top\">\n<p>&#8211;<\/p>\n<\/td>\n<td width=\"1%\" valign=\"top\"><\/td>\n<td valign=\"top\">\n<p>in which at least 50% of the equity or voting rights are held, directly or<br \/>\nindirectly, by a company which itself holds at least 50% of the Company.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>&#8220;<\/strong><u>Company<\/u>&#8221; means Baxter International Inc., a Delaware<br \/>\ncorporation.<\/p>\n<p>&#8220;<u>Corporate Officers<\/u>&#8221; mean &#8220;Pr sident du Conseil d153Administration&#8221;<br \/>\n(Chairman of the Board); &#8220;Directeur G n ral&#8221; (Managing Director); &#8220;Directeurs<br \/>\nG n raux D l gu s&#8221; (Delegated Managing Directors); Members of the &#8220;Directoire&#8221;;<br \/>\n&#8220;G rant&#8221; of a &#8220;Soci t  en Commandite par Actions&#8221;; &#8220;Pr sident&#8221; (if a private<br \/>\nindividual) d153une Soci t  par Actions Simplifi e&#8221;.<\/p>\n<p>&#8220;<u>Eligible Individual<\/u>&#8221; means any employee with a valid employment<br \/>\ncontract (&#8220;contrat de travail&#8221;) at Grant Date, and\/or Corporate Officer with or<br \/>\nwithout an employment contract with the Company or Affiliate(s). For the<br \/>\navoidance of doubt, officers and directors of the Company, or of Affiliate(s),<br \/>\nare eligible Participants if they have a valid employment contract with one of<br \/>\nthese entities, or if they are Corporate Officers. Awards cannot be granted<br \/>\nunder this Addendum to non-employee members of a &#8220;Conseil d153Administration&#8221; (the<br \/>\nBoard), to consultant, to independent agent of the Company or Affiliate(s).<\/p>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[6866],"corporate_contracts_industries":[9436],"corporate_contracts_types":[9539,9545],"class_list":["post-38804","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-baxter-international-inc","corporate_contracts_industries-health__instruments","corporate_contracts_types-compensation","corporate_contracts_types-compensation__esp"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/38804","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=38804"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=38804"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=38804"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=38804"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}