EX-10.4



 Exhibit 10.4 

BAXTER INTERNATIONAL INC. AND SUBSIDIARIES 

DEFERRED COMPENSATION PLAN 

(As Amended and Restated Effective January 5, 2018) 







 C E R T I F I C A T E 

Baxter International, Inc., acting through a duly authorized member of the Baxter International Inc. Administrative Committee, as the duly
authorized delegate of the Board of Directors, hereby adopts this amendment and restatement of the Baxter International Inc. and Subsidiaries Deferred Compensation Plan, effective January 5, 2018, in the form attached hereto. 

Dated this 5th day of January, 2018. 

 

			
	Baxter International Inc.
		
	By:	 	/s/ Salvatore Dadouche
	Salvatore Dadouche
	Administrative Committee Member









 TABLE OF CONTENTS 

 

							
	ARTICLE I — PURPOSE, EFFECTIVE DATE, EMPLOYER	  	 	1	 
	 1.1
	 	Purpose	  	 	1	 
	 1.2
	 	Effective Date	  	 	1	 
	 1.3
	 	Employer	  	 	1	 
		
	ARTICLE II — DEFINITIONS	  	 	2	 
	 2.1
	 	Accounts	  	 	2	 
	 2.2
	 	Administrative Committee	  	 	2	 
	 2.3
	 	Beneficiary	  	 	2	 
	 2.4
	 	Bonus	  	 	2	 
	 2.5
	 	Bonus Deferral	  	 	2	 
	 2.6
	 	Code	  	 	2	 
	 2.7
	 	Compensation	  	 	2	 
	 2.8
	 	Compensation Committee	  	 	2	 
	 2.9
	 	Deferral Election Form	  	 	3	 
	 2.10
	 	Distribution Election Form	  	 	3	 
	 2.11
	 	Eligible Employee	  	 	3	 
	 2.12
	 	Employer	  	 	4	 
	 2.13
	 	Employer Matching Contribution	  	 	4	 
	 2.14
	 	Employer Non-Matching Contribution	  	 	4	 
	 2.15
	 	Employer Transition Contribution	  	 	4	 
	 2.16
	 	Excess Matching Contribution	  	 	4	 
	 2.17
	 	Excess Non-Matching Contribution	  	 	4	 
	 2.18
	 	Excess Transition Contribution	  	 	4	 
	 2.19
	 	Participant	  	 	5	 
	 2.20
	 	Pay Deferral Contribution	  	 	5	 
	 2.21
	 	Plan Year	  	 	5	 
	 2.22
	 	Section 409A	  	 	5	 
	 2.23
	 	Termination of Employment	  	 	5	 
	 2.24
	 	Unforeseeable Emergency	  	 	6	 
	 2.25
	 	Vesting	  	 	6	 
		
	ARTICLE III — ELIGIBILITY FOR CONTRIBUTIONS AND DEFERRALS	  	 	7	 
	 3.1
	 	Excess Matching Contributions	  	 	7	 
	 3.2
	 	Bonus Deferral Elections	  	 	7	 
	 3.3
	 	Pay Deferral Elections	  	 	8	 
	 3.4
	 	Somatogen Acquisition Deferral Election	  	 	8	 
	 3.5
	 	Discretionary Contributions	  	 	9	 
	 3.6
	 	Excess Non-Matching Contribution	  	 	9	 
	 3.7
	 	Contributions Following Military Service	  	 	9	 
	 3.8
	 	Mid-Year Deferral Elections	  	 	9	 
	 3.9
	 	Gambro Plans	  	 	10	 
	 3.10
	 	Excess Transition Contribution	  	 	10	 
		
	ARTICLE IV — CREDITING OF ACCOUNTS	  	 	11	 
	 4.1
	 	Crediting of Accounts	  	 	11	 


  
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	 4.2
	 	Earnings	  	 	11	 
	 4.3
	 	Account Statements	  	 	12	 
	 4.4
	 	Vesting	  	 	12	 
		
	 ARTICLE V — DISTRIBUTION OF BENEFITS
	  	 	13	 
	 5.1
	 	Distribution of Benefits	  	 	13	 
	 5.2
	 	Distribution	  	 	13	 
	 5.3
	 	Effect of Payment	  	 	16	 
	 5.4
	 	Taxation of Plan Benefits	  	 	16	 
	 5.5
	 	Withholding and Payroll Taxes	  	 	16	 
	 5.6
	 	Distribution Due to Unforeseeable Emergency	  	 	16	 
	 5.7
	 	Distribution Due to Inclusion in Taxable Income	  	 	17	 
	 5.8
	 	Distribution of De Minimis Amounts	  	 	17	 
	 5.9
	 	Correction of Errors	  	 	17	 
		
	 ARTICLE VI — BENEFICIARY DESIGNATION
	  	 	18	 
	 6.1
	 	Beneficiary Designation	  	 	18	 
	 6.2
	 	Amendments to Beneficiary Designation	  	 	18	 
	 6.3
	 	No Beneficiary Designation	  	 	18	 
	 6.4
	 	Form of Payment to Beneficiary	  	 	18	 
		
	 ARTICLE VII — ADMINISTRATION
	  	 	19	 
	 7.1
	 	Administrative Committee	  	 	19	 
	 7.2
	 	Administrative Committee Powers	  	 	19	 
	 7.3
	 	Effect of Administrative Committee Decisions	  	 	20	 
	 7.4
	 	Claims Procedure	  	 	20	 
	 7.5
	 	Action by Administrative Committee	  	 	21	 
	 7.6
	 	Indemnity	  	 	21	 
		
	 ARTICLE VIII — AMENDMENT AND TERMINATION OF PLAN
	  	 	22	 
	 8.1
	 	Amendment	  	 	22	 
	 8.2
	 	Right to Terminate	  	 	23	 
	 8.3
	 	Payment at Termination	  	 	23	 
		
	 ARTICLE IX — MISCELLANEOUS
	  	 	24	 
	 9.1
	 	Unfunded Plan	  	 	24	 
	 9.2
	 	Unsecured General Creditor	  	 	24	 
	 9.3
	 	Nonassignability	  	 	24	 
	 9.4
	 	Not a Contract of Employment	  	 	25	 
	 9.5
	 	Protective Provisions	  	 	25	 
	 9.6
	 	Governing Law	  	 	25	 
	 9.7
	 	Severability	  	 	25	 
	 9.8
	 	Notice	  	 	25	 
	 9.9
	 	Successors	  	 	26	 
	 9.10
	 	Action by Baxter	  	 	26	 
	 9.11
	 	Effect on Benefit Plans	  	 	26	 
	 9.12
	 	Participant Litigation	  	 	26	 


  
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	 APPENDIX A — PARTICIPATING EMPLOYERS
	  	 	XX	* 
	 APPENDIX B — SUPPLEMENTAL PAY DEFERRALS UNDER SECTION 3.3
	  	 	XX	* 
	 APPENDIX C — DISCRETIONARY EMPLOYER CONTRIBUTIONS UNDER SECTION 3.5
	  	 	XX	* 
	 APPENDIX D — SPECIAL DISTRIBUTION PROVISIONS APPLICABLE TO AMOUNTS TRANSFERRED FROM GAMBRO
PLANS
	  	 	XX	* 

  

	*	Appendix has been redacted 


  
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 BAXTER INTERNATIONAL INC. AND SUBSIDIARIES 

DEFERRED COMPENSATION PLAN 

(As Amended and Restated Effective January 5, 2018) 

ARTICLE I — PURPOSE, EFFECTIVE DATE, EMPLOYER 
  

	1.1	Purpose. 

 The Baxter International Inc. and Subsidiaries Deferred Compensation Plan (the
“Plan”) has been adopted by Baxter International Inc. (“Baxter”). The Plan is intended to be an unfunded arrangement to provide deferred compensation for the benefit of a select group of management and highly compensated
employees. The Plan is designed to enable eligible participants to defer compensation and receive matching contributions under the provisions of the Baxter International Inc. and Subsidiaries Incentive Investment Plan (“IIP”), a tax-qualified defined contribution plan, in excess of the limitations imposed by the Internal Revenue Code (“Code”). Baxter amended and restated the Plan effective January 1, 1998, in part to combine
the Plan and the Baxter International Inc. and Subsidiaries Incentive Investment Excess Plan, and amended and restated the Plan again effective January 1, 2002, January 1, 2005, January 1, 2007, January 1, 2009 and
January 1, 2018. The Plan is hereby further amended and restated effective January 5, 2018. Capitalized terms not defined in this Plan are deemed to have the meaning given them in the IIP. 

 

	1.2	Effective Date. 

 The effective date of this restatement is January 5, 2018, except as
otherwise provided herein; provided that any provision of the Plan that is required to be effective as of an earlier in order to comply with Section 409A of the Code shall be effective as of such date. 

 

	1.3	Employer. 

 The Plan is adopted for the benefit of a select group of management or highly
compensated employees of Baxter or of any subsidiaries or affiliates of Baxter, as set forth below. The Plan may be adopted by any subsidiaries or affiliates of Baxter with the consent of the Administrative Committee. Participating Employers are
listed on Appendix A as attached and updated from time to time. 

  
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 ARTICLE II — DEFINITIONS 

 

	2.1	Accounts. 

 Accounts mean the sum of the Participant’s Excess Matching Contribution Account
balance, Bonus Deferral Account balance, Pay Deferral Account balance, and Deferred Compensation Account balance. 
  

	2.2	Administrative Committee. 

 For purposes of the Plan, Administrative Committee has the same
meaning as the Administrative Committee in the IIP. 
  

	2.3	Beneficiary. 

 A Participant’s Beneficiary, as defined in Article VI, is the Beneficiary
designated to receive the Participant’s Accounts, if any, from the Plan, upon the death of the Participant. 
  

	2.4	Bonus. 

 The term Bonus means those bonuses that are included in the definition of Compensation in
the IIP and also includes any other bonus which is approved by the Administrative Committee and listed on Attachment A to this Plan. Attachment A may be updated from time to time to accurately reflect the approved bonuses for purpose of this
definition. 
  

	2.5	Bonus Deferral. 

 The Bonus Deferral is the amount of the Participant’s Bonus which the
Participant elected to defer and contribute to the Plan which, but for such election, would have otherwise been paid to him/her. 
  

	2.6	Code. 

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

 

	2.7	Compensation. 

 For purposes of the Plan, Compensation has the same meaning as Compensation in the
IIP without regard to Section 401(a)(17) of the Code, except that the Bonuses deferred under the Plan are included in Compensation in the Plan Year in which such amounts would be paid if they were not deferred and not in the Plan Year in which
such amounts are actually paid. In no event shall Compensation include any amount payable after a Participant has terminated employment. 
  

	2.8	Compensation Committee. 

 The Compensation Committee of the Board of Directors of Baxter. 

  
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	2.9	Deferral Election Form. 

 The form which a Participant must complete and return to the
Administrative Committee or its designee, in accordance with the rules and procedures as may be established by the Administrative Committee, in order to elect to defer a portion of his or her Bonus into the Plan and to designate his or her Pay
Deferral Election. 
  

	2.10	Distribution Election Form. 

 The form which a Participant must complete and return to the
Administrative Committee or its designee, in accordance with the rules and procedures as may be established by the Administrative Committee. This form is to be used by both (a) Participants who are not eligible to defer a portion of their Bonus
or make a Pay Deferral Contribution to the Plan; and (b) Participants who are electing distributions with respect to a Deferred Compensation Account. 
  

	2.11	Eligible Employee. 

 For any Plan Year, an Eligible Employee is anyone who: 

 

	(a)	Is a Corporate Officer of Baxter, a participant in the Baxter International Inc. Long Term Incentive Plan (the “LTIP”) or an individual designated to participate in the LTIP as of the next annual appointment
cycle for the Plan Year for which deferrals relate, provided however that in the event an individual is permitted by the Administrator to make a deferral election for a Plan Year based upon his status as a designated participant in the LTIP for a
Plan Year but is not appointed to the LTIP during the annual appointment cycle that occurs during such Plan Year, then such individual’s deferral election shall remain in effect for such Plan Year, but such individual shall not be considered an
Eligible Employee for any subsequent Plan Year unless he independently satisfies the requirements of this Section 2.11(a) for such Plan Year; 

  

	(b)	is a former participant in the Baxter International Inc. Long Term Incentive Plan; 

  

	(c)	for Plan Years prior to 2005, was a participant in the IIP whose Matching Contributions to the IIP for the Plan Year were limited because of the application of the Code, provided he or she met the eligibility rules
under Section 3.1 as in effect for such Plan Year; 

  

	(d)	solely for purposes of Section 3.5, is designated by the Administrative Committee to be a Participant in the Plan and eligible to receive discretionary benefits under Section 3.5 of the Plan for the Plan Year,
subject to the terms and conditions imposed by the Administrative Committee in accordance with Section 3.5; 

  

	(e)	for Plan Years subsequent to 2006, and solely for purposes of Section 3.6, is eligible to receive an Employer Non-Matching Contribution into the IIP for the Plan Year and has
Compensation for the Plan Year in excess of the limitations of Section 401(a)(17) of the Code. An Employee who has never previously been an Eligible Employee shall be treated as becoming an Eligible Employee on the last day of the first Plan
Year in which he meets the requirements of this paragraph (d); or 


  
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	(f)	for Plan Years 2023 through 2027, and solely for purposes of Section 3.10, is eligible to receive an Employer Transition Contribution into the IIP for said Plan Year and has Compensation for the Plan Year in excess
of the limitations of Section 401(a)(17) of the Code and/or has Annual Additions into the IIP for said Plan Year in excess of the limitations of Section 415 of the Code. An Employee who has never previously been an Eligible Employee shall
be treated as becoming an Eligible Employee on the last day of the first Plan Year in which he meets the requirements of this paragraph (f). 

  

	2.12	Employer. 

 The term Employer means Baxter and any entity that is a member of a controlled group
or affiliated service group that includes Baxter, or is otherwise required to be considered as a single employer with Baxter under Section 414 of the Code. A “Participating Employer” is an Employer that has adopted the Plan for the
benefit of its Eligible Employees as provided in Section 1.3, and a Non-Participating Employer is an Employer that is not a Participating Employer. 

 

	2.13	Employer Matching Contribution. 

 The term Employer Matching Contribution has the same meaning in
the Plan as it does in the IIP. 
  

	2.14	Employer Non-Matching Contribution. 

 The term Employer Non-Matching Contribution has the same meaning in the Plan as it does in the IIP. 
  

	2.15	Employer Transition Contribution. 

 The term Employer Transition Contribution has the same meaning
in the Plan as it does in the IIP. 
  

	2.16	Excess Matching Contribution. 

 The Excess Matching Contribution is the difference between the
Employer Matching Contributions allocated to a Participant’s IIP Account during the Plan Year and the amount that would have been allocated if the limitations of Sections 415, 401(k), 402(g), 401(m) or 401(a)(17) of the Code were
disregarded. 
  

	2.17	Excess Non-Matching Contribution. 

 The Excess Non-Matching Contribution is described in Section 3.6 of the Plan. 
  

	2.18	Excess Transition Contribution. 

 The Excess Transition Contribution is described in
Section 3.10 of the Plan. 

  
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	2.19	Participant. 

 A Participant is any Eligible Employee who has an Account balance in the Plan. 

 

	2.20	Pay Deferral Contribution. 

 The term Pay Deferral Contribution has the same meaning as Pay
Deferral Contribution in the IIP. The Pay Deferral Contribution is the amount of the Participant’s Compensation, which the Participant elected to defer into the Plan which, but for such election, would have otherwise been paid to him/her. 

 

	2.21	Plan Year. 

 The Plan Year is the calendar year. 

 

	2.22	Section 409A. 

 Section 409A means Section 409A of the Code, as enacted by the
American Jobs Creation Act of 2004 and as interpreted by Treasury Regulations or other authority issued thereunder. 
  

	2.23	Termination of Employment. 

 For purposes of the Plan, Termination of Employment has the same
meaning as Termination of Employment in the IIP; provided that for purposes of determining when a Participant’s benefit becomes payable, Termination of Employment shall not be considered to have occurred until the Participant incurs a
separation from service as defined in Treasury Regulations issued pursuant to Section 409A. The following rules are intended to implement the requirements of Section 409A, and may be adjusted by the Administrative Committee as required to
comply with any guidance issued under Section 409A: 
  

	(a)	The Participant shall not be considered to have separated from service so long as the Participant is on military leave, sick leave, or other bona fide leave of absence if the period of such leave does not exceed six
months, or if longer, so long as the Participant retains a right to reemployment with a Participating Employer under an applicable statute or by contract. 

  

	(b)	Regardless of whether his employment has been formally terminated, the Participant will be considered to have separated from service as of the date it is reasonably anticipated that no further services will be performed
by the Participant for any Participating Employer, or that the level of bona fide services the Participant will perform after such date will permanently decrease to no more than 20 percent of the average level of bona fide services performed
over the immediately preceding 36-month period (or the full period of employment if the Participant has been employed for less than 36 months). For purposes of the preceding test, during any paid leave of
absence the Participant shall be considered to have been performing services at the level commensurate with the amount of compensation received, and unpaid leaves of absence shall be disregarded. 


  
 5 









	(c)	For purposes of determining whether the Participant has separated from service, all services provided for any Employer, or for any entity that is a member of the Controlled Group, shall be taken into account, whether
provided as an employee or as a consultant or other independent contractor; provided that the Participant shall not be considered to have not separated from service solely by reason of service as a
non-employee director of the Corporation or any other such entity. Solely for purposes of this Section 2.21, the term “Controlled Group” shall be modified by substituting “50 percent”
for “80 percent” for all purposes of section 414(b) and (c) of the Code (and Section 1563 to the extent incorporated therein). 

  

	(d)	A Participant who is employed by a Participating Employer, and continues to be employed by the Participating Employer following a stock sale, spin-off, or other transaction that
causes the Participant’s employer to cease to be a member of the Controlled Group, shall not be considered to have incurred a Termination of Employment as a result of such transaction. A Participant who ceases to be employed by the Corporation
or any member of the Controlled Group as a result of a sale of substantially all of the assets constituting a division, facility, or separate line of business, shall be considered to have incurred a Termination of Employment unless the Corporation
(or Participating Employer selling such assets) and the purchaser agree in writing, not later than the closing date of such transaction, that all Participants affected by such transaction shall not be considered to have incurred a Termination of
Employment, and that the purchaser agrees to assume the obligation for payment of the Benefits of all such Participants in accordance with the Plan. 

  

	2.24	Unforeseeable Emergency. 

 A severe financial hardship resulting from a sudden or unexpected
illness or accident of the Participant or one of his or her dependents, loss of the Participant’s property due to casualty or similar extraordinary and unforeseeable circumstances arising as a result of one or more recent events beyond the
control of the Participant, as determined by the Administrative Committee. 
  

	2.25	Vesting. 

 For purposes of the Plan, Vesting has the same meaning as Vesting in the IIP. 

  
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 ARTICLE III — ELIGIBILITY FOR CONTRIBUTIONS AND DEFERRALS 

 

	3.1	Excess Matching Contributions. 

 The Excess Matching Contributions Account of an Eligible Employee
who makes either a Bonus Deferral or Pay Deferral Election for a Plan Year shall be credited with Excess Matching Contributions equal to the lesser of the total amount deferred pursuant to Sections 3.2 and 3.3 (not including any Supplemental
Pay Deferral) for the Plan Year or three and one half percent (3.5%) of the excess of the Participant’s total Compensation for the Plan Year over the portion of the Participant’s Compensation taken into account under the IIP for the Plan
Year. Prior to January 1, 2005, an Employee was an Eligible Employee if the Employee’s Employer Matching Contributions under the IIP were less than 3% of the Employee’s Compensation for the Plan Year, regardless of whether the
Employee were eligible to make Bonus Deferral and/or Pay Deferral Elections. A Participant who was an Eligible Employee solely by reason of this Section 3.1 for one or more Plan Years prior to 2005 shall continue to be a Participant with
respect to his Excess Matching Contribution Account until it is distributed. 
  

	3.2	Bonus Deferral Elections. 

 An Eligible Employee for a Plan Year may elect to defer all or a
portion of his or her Bonus for the Plan Year through the Plan until his or her Termination of Employment, or such other time as specified on his or her Deferral Election Form, by completing a Deferral Election Form in accordance with applicable
rules and procedures established by the Administrative Committee. A Participant may elect to defer up to 100% of his or her Bonus, in whole percentages. Beginning January 1 of the year to which the Deferral Election Form applies, the Deferral
Election Form is irrevocable, except as provided in Section 5.6. The Deferral Election Form must be filed in accordance with the rules established by the Administrative Committee, at the time set forth below: 

 

	(a)	Deferral Election Forms must be filed prior before January 1 of the Plan Year in which the Bonus is earned, except as hereinafter provided. 


 

	(b)	The Administrative Committee may permit an employee who becomes an Eligible Employee for the first time during a Plan Year to make an election to defer his or her Bonus for such Plan Year not more than 30 days after
becoming an Eligible Employee, which Bonus Deferral Election shall apply only to the portion of the Bonus earned after the election is made. An Eligible Employee shall not be eligible to make the election within the first 30 days after becoming an
Eligible Employee if the employee has been a participant (other than through accrual of earnings on amounts previously deferred) in any account balance deferred compensation arrangement sponsored by any Employer during the 24 month period prior to
the date he or she becomes an Eligible Employee, unless the employee received a distribution of his or her entire balance in such plan during such 24 month period, and immediately prior to such distribution was not eligible to continue to
participate in such plan. 


  
 7 









	(c)	The Administrative Committee may also permit Eligible Employees to make an election to defer their Bonuses not later than six months prior to the end of the Bonus determination period, provided that the Administrative
Committee determines that the Bonus satisfies the requirements for performance based compensation under Section 409A of the Code. 

  

	3.3	Pay Deferral Elections. 

 An Eligible Employee may make a Pay Deferral Election under the Plan if
he or she elects to defer a portion of his or her Compensation under the IIP for a Plan Year, and the amount of Compensation that he or she has elected to defer exceeds the amount that is permitted to be deferred under the IIP by reason of the
annual contribution limit under Section 415 or 402(g) of the Code, or the fact that the Eligible Employee’s Compensation exceeds the annual limit under Section 401(a)(17) of the Code, A Pay Deferral Election shall be made by the last
day of the Plan Year preceding the Plan Year to which it relates, in accordance with applicable rules and procedures established by the Administrative Committee, and shall thereafter be irrevocable (except as provided in Section 5.6), except
that the Administrative Committee may permit an employee who first becomes an Eligible Employee during a Plan Year, and who meets the requirements of Section 3.2(b), to make an Pay Deferral Election not more than 30 days after becoming an
Eligible Employee, which Pay Deferral Election shall apply prospectively only. If an Eligible Employee makes a Pay Deferral Election for a Plan Year, then all amounts that the Eligible Employee elected to defer under the IIP (based upon the Eligible
Employee’s IIP deferral election at the beginning of the Plan Year, which cannot be changed during the Plan Year) that exceed one or more of the limits described above shall instead be credited to his or her Account in this Plan, commencing
with the first payment of Compensation that would cause the amount deferred to exceed such limits. Notwithstanding the foregoing provisions of this Section 3.3, the Administrative Committee, in its sole discretion, may permit a Participant to
defer a percentage of his or her Compensation to the Plan for any Plan Year that exceeds the percentage that the Participant elects to defer under the IIP for such Plan Year (a “Supplemental Pay Deferral”), provided that the Supplemental
Pay Deferral election is made when the Participant is otherwise eligible to make a Pay Deferral Election as described above and is thereafter irrevocable (except as provided in Section 5.6). To the extent that the Administrative Committee
exercises its discretionary authority under the prior sentence, such exercise shall be reflected in Appendix B to the Plan which shall identify each Participant designated as eligible to make Supplemental Pay Deferrals, specify the Plan Year(s)
for which Supplemental Pay Deferrals may be made, and reflect any other conditions and limitations applicable with respect to such Supplemental Pay Deferrals. In no event shall Supplemental Pay Deferrals be eligible for Excess Matching
Contributions. 
  

	3.4	Somatogen Acquisition Deferral Election. 

 Any former employee of Somatogen, Inc. who became an
employee of Baxter International Inc. as of the closing date of the merger agreement between Baxter and Somatogen and who completed a Special Deferral Enrollment Form shall have such form recognized as a valid election under the Plan. Deferrals
authorized under this section shall be treated as deferrals authorized under Section 3.2 for purposes of accounting and distribution. 

  
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	3.5	Discretionary Contributions. 

 The Administrative Committee may, in its sole discretion, specify
such additional amounts in the form of employer contributions to be credited to the Account of a Participant or another employee who is a member of a select group of management and highly compensated employees, subject to such terms and conditions
as the Administrative Committee may establish. To the extent that the Administrative Committee exercises its discretionary authority under this Section 3.5, such exercise shall be reflected in Appendix C to the Plan, which shall identify
each Participant credited with such discretionary employer contributions, specify the Plan Year(s) for which contributions relate, and reflect any other limitations applicable with respect to such discretionary contributions, including any
applicable Vesting requirements. Discretionary employer contributions authorized under this section shall be treated as deferrals authorized under Section 3.2 for purposes of accounting and distribution. 

 

	3.6	Excess Non-Matching Contribution. 

 For any Plan Year
after 2006, an Eligible Employee who (i) is eligible to receive an Employer Non-Matching Contribution into the IIP for the Plan Year and (ii) has Compensation for the Plan Year in excess of the
limitations of Section 401(a)(17) of the Code, shall receive an Excess Non-Matching Contribution equal to 3% of the Eligible Employee’s Compensation in excess of the limitations of
Section 401(a)(17) of the Code. 
  

	3.7	Contributions Following Military Service. 

 A Participant who incurs a Termination of Employment,
or a leave of absence, in order to serve in the armed forces of the United States, who is entitled to re-employment rights under the Uniformed Services Employment and Reemployment Rights Act
(“USERRA”), and who is re-employed during the period in which such re-employment rights are protected, shall be entitled to increase the percentage of his or
her Compensation subject to a Pay Deferral Election in order to make up the Pay Deferral Contributions missed during the period of military service, in accordance with rules established by the Administrative Committee in accordance with USERRA and
Section 409A. Such a Participant shall also be entitled to receive the same amount of Excess Matching Contributions he or she would have received had the additional Pay Deferral Contributions been made during the period of military service. A
Participant who is otherwise eligible for Excess Non-Matching Contributions and, effective January 1, 2023, Excess Transition Contributions, shall be entitled to receive the Excess Non-Matching Contributions and Excess Transition Contributions he or she would have received had he or she been employed at the same rate of Compensation during the period of military service, which shall be
credited to the Deferred Compensation Account not later than 90 days after re-employment. 
  

	3.8	Mid-Year Deferral Elections. 

 If a person becomes an
Eligible Employee as defined in Section 2.11(a) during a plan, and such person has not been eligible to elect to defer compensation under this Plan or any other nonqualified deferred compensation maintained by any Employer for the period of
twenty-four months ending on the date he becomes an Eligible Employee (or the period beginning on the date any balance in this Plan or any such other plan was distributed to him and ending on the date he


  
 9 








 
becomes an Eligible Employee), such Eligible Employee may be eligible to make either a Pay Deferral Election or Bonus Deferral Election in accordance with this Section. After the Compensation
Committee has identified the persons who have become Eligible Employees as defined in Section 2.11(a), the Administrative Committee shall establish a period during which such elections may be made, which election period shall be no more than
thirty (30) days in length and end on or prior to the first day of a payroll period specified by the Administrative Committee. During such election period, each such Eligible Employee may make a Pay Deferral Election that will apply to all
Compensation earned during such Plan Year commencing with such specified payroll period. During such period, each such Eligible Employee may also make a Bonus Deferral Election for his/her Bonus for such Plan Year, provided that, unless such
election is also permissible pursuant to Section 3.5(c), the portion of his/her Bonus deferred shall not exceed a fraction, the numerator of which is the number of days in the Plan Year commencing with the first day of the specified payroll
period and the denominator of which is the total number of days in the Plan Year. The Administrative Committee may also permit other deferral elections to be made in the Plan Year during which a person first becomes an Eligible Employee in
accordance with Treas. Reg. §1.409A-2(a)(7). 
  

	3.9	Gambro Plans. 

 Effective as of January 1, 2015, the Plan shall assume the liability to pay
all compensation deferred as of such date pursuant to the Gambro Renal Products, Inc., Executive Retirement Plan and the Gambro Renal Products, Inc. Voluntary Deferral Plan (collectively the “Gambro Plans”). A separate Gambro Plan Account
shall be established for each Employee who had an account in either of the Gambro Plans on December 31, 2014, and each such Employee shall be considered a Participant with respect to such Gambro Plan Account, regardless of whether he is
otherwise an Eligible Employee, but shall be eligible to be credited with further deferrals and allocations of Employer contributions only if he otherwise satisfies the requirements of the Plan. Anything else contained in the Plan to the contrary
notwithstanding, all Gambro Plan Account balances shall be distributed only at the time and in the manner provided in the applicable Gambro Plan, as summarized in Appendix D, and no change to the time or form of distribution shall be made by reason
of the assumption by the Plan of the balances under the Gambro Plans, except as otherwise determined by the Administrative Committee and to the extent permitted by Section 409A. Commencing with 2015, the earnings on the Gambro Plan Accounts
shall be determined under Section 4.2, subject to such transitional procedures as the Administrative Committee. A Participant’s Beneficiary with respect to his Gambro Plan Account shall be the person designed as beneficiary pursuant to the
applicable Gambro Plan until changed by the Participant in accordance with the Plan. 
  

	3.10	Excess Transition Contributions. 

 For Plan Years 2023 through 2027, an Eligible Employee who is
eligible to receive an Employer Transition Contribution into the IIP for the Plan Year shall receive an Excess Transition Contribution equal to the difference between the Employer Transition Contribution allocated to the Eligible Employee’s IIP
Account during the Plan Year and the amount that would have been allocated if the limitations of Sections 415 or 401(a)(17) of the Code were disregarded. 

  
 10 








 ARTICLE IV — CREDITING OF ACCOUNTS 

 

	4.1	Crediting of Accounts. 

 A. Excess Matching Contribution Account. An
account equal to the Excess Matching Contributions, if any, of each Participant made for Plan Years prior to 2002, as adjusted for investment return under Section 4.2 and distributions under Article V. 

B. Bonus Deferral Account. An account equal to the Bonus Deferrals, if any, of each Participant made for Plan Years prior to 2002, as
adjusted for investment return under Section 4.2 and distributions under Article V. 
 C. Pay Deferral Account. An account
equal to the Pay Deferral Contributions and Supplemental Pay Deferrals, if any, of each Participant made for Plan Years prior to 2002, as adjusted for investment return under Section 4.2 and distributions under Article V. 

D. Deferred Compensation Account. An account equal to the Excess Matching Contributions, Pay Deferral Contributions, Bonus Deferrals,
Supplemental Pay Deferrals, Excess Non-Matching Contributions and Excess Transition Contributions made for the 2002 Plan Year and thereafter, as adjusted for investment return under Section 4.2 and
distributions under Article V. 
 Notwithstanding the foregoing provisions of this Section 4.1, if elected by the Participant in
accordance with rules established by the Administrative Committee, the Participant may elect to have his or her Excess Matching Contributions, Pay Deferral Contributions, Bonus Deferrals and Supplemental Pay Deferrals made for the 2001 Plan Year, if
any, credited to his or her Deferred Compensation Account under paragraph D, instead of to the Excess Matching Contribution Account, Bonus Deferral Account and Pay Deferral Account described in paragraphs A, B and C. 

Further, effective January 1, 2002, notwithstanding the forgoing provisions of this Section 4.1, if elected by the Participant in
accordance with rules established by the Administrative Committee, the Participant may make a one-time election to have amounts credited to his or her Excess Matching Contribution Account, Bonus Deferral
Account and Pay Deferral Account (including Supplemental Pay Deferrals) credited to his or her Deferred Compensation Account under paragraph D, provided however, that such election is made prior to 2002 and such amounts are not scheduled to be
distributed in 2001. 
  

	4.2	Earnings. 

 Each Participant’s Accounts will be adjusted for investment return, on a daily
basis, in accordance with the following provisions of this Section 4.2: 
 A. Amounts in a Participant’s Excess Matching Account,
Bonus Deferral Account, and Pay Deferral Account will be credited with earnings at a rate determined by the Administrative Committee from time to time. Until the Administrative Committee determines otherwise, such earnings will be credited at the
same rate as the Stable Income Fund in the IIP. 

  
 11 








 B. Amounts in a Participant’s Deferred Compensation Account shall be adjusted upward or
downward to reflect the investment return that would have been realized had such amounts been invested in one or more investments selected by the Participant from among the assumed investment alternatives designated by the Administrative Committee
for use under the Plan. Prior to the first day of each month, or at such other times as the Administrative Committee may permit, Participants may change the assumed investment alternatives in which their Deferred Compensation Account will be deemed
invested for such Plan Year. Participant elections of assumed investment alternatives shall be made at the time and in the form determined by the Administrative Committee, and shall be subject to such other restrictions and limitations as the
Administrative Committee shall determine. In the event that a Participant fails to make an investment election, his or her Deferred Compensation Account shall be credited with earnings in the same manner as provided in paragraph A above. 

C. Notwithstanding the foregoing, effective January 1, 2018, a Participant may not elect an assumed investment in the Baxter Common Stock
Fund of more than twenty-five percent (25%) of future amounts credited to his Deferred Compensation Account. In addition, a Participant may not change his assumed investment in the Baxter Common Stock Fund if such fund would account for more than
twenty-five percent (25%) of the total balance in the Participant’s Accounts immediately after such reallocation. No portion of a Participant’s Deferred Compensation Account attributable to Excess
Non-Matching Contributions and the investment return thereon and, effective January 1, 2023, Excess Transition Contributions and the investment return thereon, will be invested in the Baxter Common Stock
Fund. 
  

	4.3	Account Statements. 

 Account Statements will be generated effective at such intervals as the
Administrative Committee may determine and transmitted to each Participant as soon as administratively feasible. Account Statements will reflect all Account activity during the reporting period, including Account contributions, distributions and
earnings credits. 
  

	4.4	Vesting. 

 Subject to Sections 9.1 and 9.2, and any Vesting requirements specified by the
Administrative Committee with respect to Discretionary Contributions, a Participant is always 100% Vested in his or her Accounts in the Plan at all times; provided, however, that if a Participant who incurs a Termination of Employment is not 100%
Vested in his or her Employer Non-Matching Contribution Account in the IIP, the portion of his or her Deferred Compensation Account attributable to Excess Non-Matching
Contributions and the earnings thereon shall be forfeited, and no Participating Employer shall have any obligation to the Participant with respect to such portion. 

  
 12 








 ARTICLE V — DISTRIBUTION OF BENEFITS 

 

	5.1	Distribution of Benefits. 

 Subject to Section 5.2, distribution of a Participant’s
Accounts, if any, will commence in accordance with the Participant’s Distribution Election Form or Deferral Election Form as soon as administratively feasible after the Participant’s Termination of Employment. Any spousal consent
requirements under the IIP will not apply to distributions under the Plan. 
 Anything else in this Plan to the contrary notwithstanding, effective
October 22, 2004, (i) in no event shall the distribution of any Account be accelerated to a time earlier than which it would otherwise have been paid, whether by amendment of the Plan, exercise of the Administrative Committee’s
discretion, or otherwise, except as permitted by Treasury Regulations issued pursuant to Section 409A, and (ii) in the event that the Administrative Committee, in its sole discretion, determines that any time or form of distribution
provided for in the Plan, or the existence of a right to elect a different time or form of distribution, would cause the Plan to fail to meet the requirements of Section 409A, or otherwise cause Participants to be subject to any adverse federal
income tax consequences, the Administrative Committee shall amend the Plan to modify or remove the form of distribution or election right. The distribution restrictions under Section 409A shall apply to Participant’s entire account
balances under the Plan, whether deferred before or after January 1, 2005. Notwithstanding the foregoing, the Administrative Committee may give Participants a one-time opportunity to change the time
and/or form of payment of their Accounts by a written irrevocable election made not later than December 31, 2008, subject to such terms and conditions as the Administrative Committee may require; provided that no such election shall cause any
amount to be paid in 2008 that would otherwise have been paid in a later year, or cause any amount that would otherwise have been paid in 2008 to be paid in a later year, and such elections shall otherwise comply with the requirements for
transitional relief under IRS Notice 2007-86. 
  

	5.2	Distribution. 

 A. Deferral Election Form. A Participant’s Excess
Matching Contribution Account, Bonus Deferral Account and Pay Deferral Account will be paid in accordance with the form of payment designated in the Participant’s Deferral Election Form. The Deferral Election Form shall not be used to elect
forms of distribution with respect to deferrals for Plan Years after 2001 (or 2000, with respect to a Participant electing to have his or her deferrals credited to the Deferred Compensation Account for Plan Year 2000 under Section 4.1). 

B. Distribution Election Form — Termination of Employment. A Participant’s Deferred Compensation Account and, if the
Participant is not eligible for Pay Deferrals or Bonus Deferrals, his or her Excess Matching Contribution Account, will be paid after the Participant’s Termination of Employment, in accordance with the form of payment designated in such
Participant’s Distribution Election Form. Distribution Election Forms shall be filed in accordance with rules established by the Administrative Committee, subject to the following: 

 

	 	(a)	 Prior to January 1, 2007, only one Distribution Election Form could be submitted with respect to
distribution of a Participant’s Deferred Compensation Account 



  
 13 









	 	
following Termination of Employment. Any such Distribution Election Form filed prior to January 1, 2007, shall remain in effect shall apply to the Participant’s entire Deferred
Compensation Account (and Excess Matching Contribution Account if applicable) balance at his or her Termination of Employment. 

  

	 	(b)	Effective January 1, 2007, a Participant who has not previously been described in paragraph (c) may submit a Distribution Election Form at the time he or she first makes a Bonus Deferral or Pay Deferral
Election pursuant to Section 3.2 or 3.3. Except as otherwise provided in subparagraph (c) below, only one Distribution Election Form shall be filed, which shall apply to the Participant’s entire Deferred Compensation Account balance
at his or her Termination of Employment. A Distribution Election Form must be filed by the end of the period for making the Participant’s first Bonus Deferral or Pay Deferral Election, and if the Participant fails to file a Distribution
Election Form at such time his or her entire Deferred Compensation Account balance shall be distributed in a lump sum at his or her Termination of Employment, or in accordance with a Distribution Election Form previously filed pursuant to
subparagraph (c) if applicable. 

  

	 	(c)	An Employee who first becomes an Eligible Employee pursuant to Section 3.1, 3.5, or 3.6 on or after January 1, 2007, and who meets the requirements of Section 3.2(b), may file a Distribution Election Form
not later than 30 days after his or her first day of eligibility. Except as provided in the following sentence, only one Distribution Election Form shall be filed, which shall apply to the Participant’s entire Deferred Compensation Account
balance at his or her Termination of Employment, and if the Participant fails to file a Distribution Election Form at such time his or her entire Deferred Compensation Account balance shall be distributed in a lump sum at his or her Termination of
Employment. Notwithstanding the foregoing, if such a Participant subsequently becomes eligible to make a Bonus Deferral or Pay Deferral Election, he or she may file a new Distribution Election Form pursuant to subparagraph (b) above. In such
event, the portion of the Participant’s Deferred Compensation Account that represents amounts credited to the Deferred Compensation Account under all provisions of Article III beginning with the first Plan Year to which the Bonus Deferral or
Pay Deferral Election applies (and all earnings thereon) shall be distributed in accordance with such Distribution Election Form, and the remaining portion of the Deferred Compensation Account shall continue to be governed by this subparagraph (c).


  

	 	C.	Forms of Distribution. The forms of distribution are: 

  

	 	(a)	a lump sum payment, or 

  

	 	(b)	annual installments of at least 2 years, but not to exceed 15 years. 


  
 14 








 If annual installments are elected, the amount of each installment will be equal to the remaining balance in the
Participant’s Account prior to payment of the installment, divided by the remaining number of installments to be paid (including the installment being calculated). If a lump sum payment is elected, or is default to as a form of distribution as
provided for below, the amount of the lump sum shall be equal to the balance in the Participant’s Account prior to the payment of the lump sum. 

Except as provided below, effective January 1, 2007, lump sum payments will be paid, and annual installments will commence, in the first quarter of the
Plan Year as specified in the Participant’s Deferral Election Form or Distribution Election Form (or, if the Distribution Election Form provides for payments following a Termination of Employment, in the first quarter of the Plan Year following
the Plan Year in which the Termination of Employment occurs). Subsequent installments will be paid annually in the first quarter of subsequent Plan Years. In the case of installment payments which commenced prior to January 1, 2007, the
installment that would otherwise have been paid in the third quarter of 2007 shall be paid in the first quarter, and all installments shall thereafter be paid in the first quarter of subsequent years. 

If a Participant does not elect a form of distribution by the time the Deferral Election Form or the Distribution Election Form is required to be completed,
the Participant’s election will default to a lump sum payment in the first quarter of the Plan Year following the Plan Year in which the Participant incurs a Termination of Employment. 

 

	 	D.	Special Rules. Notwithstanding the foregoing: 

  

	 	(a)	A Participant whose Accounts under the Plan total less than $50,000 as of the last day of the Plan Year in which he or she incurs a Termination of Employment will receive lump sum payment of his or her Accounts in the
first quarter of the Plan Year following the Plan Year in which the Participant incurs a Termination of Employment. Such lump sum payment shall be equal to the balance in the Participant’s account prior to the payment of the lump sum.


  

	 	(b)	If a Participant who has made a Bonus Deferral election for a Plan Year incurs a Termination of Employment during the Plan Year, but is still eligible for a Bonus for the Plan Year, the deferred portion of his or her
Bonus shall be distributed during March of the subsequent year, regardless of the form of distribution otherwise elected, and shall not be taken into account in determining whether the Participant’s Account Balance is less than $50,000. Such
amount shall not be credited with any earnings unless paragraph (c) applies. 

  

	 	(c)	 Anything else contained herein to the contrary notwithstanding, in no event shall any payment of a benefit made
in connection with the Termination of Employment of a “specified employee”, as hereinafter defined, be made until at least six months following such Termination of Employment, and any amounts that would otherwise have been paid during such
six month period shall be accumulated and paid in a lump sum, without interest, on the first business day following the expiration of such period. For purposes of this Plan, the term “specified employee shall have the meaning set forth in
Treas. Reg. §1.409A-1(i), using the safe harbor definition of compensation contained in Treas. Reg. §1.415(c)-2(d)(4) (compensation required to be reported on
Form W-2 plus 



  
 15 









	 	
elective deferrals) and excluding compensation paid to a nonresident alien that is not effectively connected with the conduct of a trade or business within the United States shall be excluded.
The status of Participants as specified employees shall be determined as of December 31 of each year, and if a Participant is determined to be a specified employee on any December 31, the restriction of clause (ii) shall apply if and
only if he incurs a termination of employment at any time during the twelve month period commencing on the following February 1. 

  

	5.3	Effect of Payment. 

 Payment to the person or trust reasonably and in good faith determined by the
Administrative Committee to be the Participant’s Beneficiary will completely discharge any obligations Baxter or any other Employer may have under the Plan. If a Plan benefit is payable to a minor or a person declared to be incompetent or to a
person the Administrative Committee in good faith believes to be incompetent or incapable of handling the disposition of property, the Administrative Committee may direct payment of such Plan benefit to the guardian, legal representative or person
having the care and custody of such minor and such decision by the Administrative Committee is binding on all parties. The Administrative Committee may initiate whatever action it deems appropriate to ensure that benefits are properly paid to an
appropriate guardian. 
 The Administrative Committee may require proof of incompetence, minority, incapacity or guardianship as it may deem appropriate
prior to distribution of the Plan benefit. Such distribution will completely discharge the Administrative Committee and the Employer from all liability with respect to such benefit. 

 

	5.4	Taxation of Plan Benefits. 

 It is intended that each Participant will be taxed on amounts
credited to him or her under the Plan at the time such amounts are received, and the provisions of the Plan will be interpreted consistent with that intention. 
  

	5.5	Withholding and Payroll Taxes. 

 Baxter will withhold from payments made hereunder any taxes
required to be withheld for the payment of taxes to the Federal, or any state or local government. 
  

	5.6	Distribution Due to Unforeseeable Emergency. 

 Upon written request of a Participant and the
showing of Unforeseeable Emergency, the Administrative Committee may authorize distribution of all or a portion of the Participant’s Accounts, and or the acceleration of any installment payments being made from the Plan, but only to the extent
reasonably necessary to relieve the Unforeseeable Emergency, taking into account the tax imposed on such distribution. In any event, payment may not be made to the extent such Unforeseeable Emergency is or may be satisfied through reimbursement by
insurance or otherwise, including, but not limited to, liquidation of the Participant’s assets, to the extent that such liquidation would not in and of itself cause severe financial hardship. If a Participant has an Unforeseeable Emergency, the
Participant’s Pay Deferral Election and Bonus 

  
 16 








 
Deferral Election, if any, shall be revoked for the Plan Year (and no subsequent Pay Deferral or Bonus Deferral may be made for the same Plan Year), and the additional income resulting from such
revocation shall be taken into account in determining the amount of distribution reasonably necessary to relieve the Unforeseeable Emergency. A Participant shall not be required to take any hardship withdrawal or loan to which he is entitled under
the IIP or any other tax qualified retirement plan as a condition of receiving a distribution pursuant to this Section 5.6, but if a Participant receives a hardship withdrawal from the IIP or any other
tax-qualified §401(k) plan maintained by an Employer and the terms of such plan require a suspension of the Participant’s deferrals for six months following the date of the distribution, then the
Participant’s Deferral Elections shall be permanently revoked with respect to any compensation paid or payable to the Participant during such six month period. 
  

	5.7	Distribution Due to Inclusion in Taxable Income. 

 In the event that any portion of a
Participant’s Account is included in his or her taxable income prior to distribution pursuant to Section 409A, the amount so included shall be distributed to the Participant as soon as administratively possible. 

 

	5.8	Distribution of De Minimis Amounts. 

 The Administrative Committee may at any time direct that the
entire balance of a Participant’s Account be distributed to the Participant in full liquidation of his or her benefit under the Plan; provide that the Participant’s entire account balance in all other separate account nonqualified deferred
compensation plans maintained by any Employer is also distributed at the same time, and that the total amount so distributed (including all such other plans) does not exceed the limit in effect under Section 402(g) of the Code at the time of
the distribution. 
  

	5.9	Correction of Errors. 

 The Administrative Committee shall have the authority to correct any error
in the calculation of a Participant’s Account or the amount distributed to a Participant, regardless of the reason for the error and regardless of whether distribution of the Account has commenced. By his participation in the Plan and
acceptance of benefits hereunder, each Participant agrees that he will promptly repay to the Plan any payment that exceeds the amount to which he was entitled under the Plan (an “excess payment”), and will hold any excess payment, and any
proceeds of any excess payment, or property acquired with any excess payment, in trust for the benefit of the Plan, which trust shall remain in effect, and shall continue to apply to any excess payment, proceeds or other property even if transferred
to a third party, until the total amount of the excess payment has been repaid to the Plan. The Administrative Committee may, on behalf of the Plan, commence an action to enforce such trust, or take any other available action in law or equity,
including setting off any other amount owed to the Participant, to recover such excess payment. 

  
 17 








 ARTICLE VI — BENEFICIARY DESIGNATION 

 

	6.1	Beneficiary Designation. 

 Each Participant has the right to designate one or more persons or
trusts as the Participant’s Beneficiary, primary as well as secondary, to whom benefits under this Plan will be paid in the event of the Participant’s death prior to complete distribution to the Participant of the benefits due under the
Plan. Each Beneficiary designation will be in a written form prescribed by the Administrative Committee and will be effective only when filed with the Administrative Committee during the Participant’s lifetime. 

 

	6.2	Amendments to Beneficiary Designation. 

 Any Beneficiary designation may be changed by a
Participant without the consent of any Beneficiary by the filing of a new Beneficiary designation with the Administrative Committee. Filing a Beneficiary designation as to any benefits available under the Plan revokes all prior Beneficiary
designations effective as of the date such Beneficiary designation is received by the Administrative Committee. If a Participant’s Accounts are community property, any Beneficiary designation will be valid or effective only as permitted under
applicable law. 
  

	6.3	No Beneficiary Designation. 

 In the absence of an effective Beneficiary designation, or if all
Beneficiaries predecease the Participant, the Participant’s estate will be the Beneficiary. If a Beneficiary dies after the Participant and before payment of benefits under this Plan has been completed, and no secondary Beneficiary has been
designated to receive such Beneficiary’s share, the remaining benefits will be payable to the Beneficiary’s estate. 
  

	6.4	Form of Payment to Beneficiary. 

 The Account of a Participant who dies prior to Termination of
Employment shall be paid to his or her Beneficiary in a single lump sum as soon as administratively feasible following the date of death, regardless of the form of payment elected by the Participant The Account of a Participant who dies after
Termination of Employment, but before his or her Account has been fully distributed, shall be distributed in the same manner and at the same time as it would have been distributed to the Participant, except that the six month delay in distributions
to a specified employee pursuant to the last paragraph of Section 5.2 shall not apply to the Beneficiary of a specified employee who dies during the six month period following his or her Termination of Employment. 

  
 18 








 ARTICLE VII — ADMINISTRATION 

 

	7.1	Administrative Committee. 

 The Plan is administered by the Administrative Committee, which is the
Plan Administrator for purposes of Section 3(16)(A) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). Baxter has appointed the members of the Administrative Committee to administer the Plan. Members of the
Administrative Committee may be Participants in the Plan. 
  

	7.2	Administrative Committee Powers. 

 The Administrative Committee has such powers as may be
necessary to discharge its duties hereunder, including, but not by way of limitation, the following powers, rights and duties: 
  

	(a)	Interpretation of Plan. The Administrative Committee has the power, right and duty to construe, interpret and enforce the Plan provisions and to determine all questions arising under the Plan including, but not
by way of limitation, questions of Plan participation, eligibility for Plan benefits and the rights of employees, Participants, Beneficiaries and other persons to benefits under the Plan and to determine the amount, manner and time of payment of any
benefits hereunder; 

  

	(b)	Plan Procedures. The Administrative Committee has the power, right and duty to adopt procedures, rules, regulations and forms to be followed by employees, Participants, Beneficiaries and other persons or to be
otherwise utilized in the efficient administration of the Plan which may alter any procedural provision of the Plan without the necessity of an amendment, and which procedures may provide for any election or consent to be made (including without
limitation the filing of a Deferral Election Form or Distribution Election Form), or any other action to be taken (including without limitation filing claims and requesting review of denied claims), by electronic mail, internet website, telephone or
voice response system or other electronic method to the extent permitted by applicable law; 

  

	(c)	Benefit Determinations. The Administrative Committee has the power, right and duty to make determinations as to the rights of employees, Participants, Beneficiaries and other persons to benefits under the Plan
and to afford any Participant or Beneficiary dissatisfied with such determination with rights pursuant to a claims procedure adopted by the Committee; and 

  

	(d)	Allocation of Duties. The Administrative Committee is empowered to employ agents (who may also be employees of Baxter) and to delegate to them any of the administrative duties imposed upon the Administrative
Committee or Baxter. 

  

	(e)	Plan Amendments. The Administrative Committee is empowered to amend the Plan as provided in Section 8.1(b). 


  
 19 









	7.3	Effect of Administrative Committee Decisions. 

 Any ruling, regulation, procedure or decision of
the Administrative Committee will be conclusive and binding upon all persons affected by it. There will be no appeal from any ruling by the Administrative Committee which is within its authority, except as provided in Section 7.4 below. When
making a determination or a calculation, the Administrative Committee will be entitled to rely on information supplied by any Employer, accountants and other professionals including, but not by way of limitation, legal counsel for Baxter or any
Employer. 
  

	7.4	Claims Procedure. 

 Each person entitled to benefits under the Plan (the “Applicant”)
must submit a written claim for benefits to the Administrative Committee. Such claim shall be filed not more than one year after the Applicant knows, or with the exercise of reasonable diligence would know, if the basis for the claim. A formal claim
shall not be required for the distribution of a Participant’s Accounts in the ordinary course of business, but in any case a claim that relates to a dispute over the amount of a distribution shall be filed not more than one year after the
distribution is paid. The Administrative Committee may, in its sole discretion (and notwithstanding the first sentence of Section 7.3) accept a claim that is filed late if it determines that special circumstances warrant acceptance of the
claim. 
 If a claim for benefits by the Applicant is denied, in whole or in part, the Administrative Committee, or its delegate, shall furnish the
Applicant within 90 days after receipt of such claim, a written notice which specifies the reason for the denial, refers to the pertinent provisions of the Plan on which the denial is based, describes any additional material or information
necessary for properly completing the claim and explains why such material or information is necessary, and explains the claim review procedures of this Section 7.4. Such notice will further describe that the Applicant has a right to bring a
civil action under Section 502 of ERISA if his or her claim is denied after an appeal and review. The 90 day period may be extended by up to an additional 90 days if special circumstances required, in which event the Applicant shall be
notified in writing by the end of the initial 90 day period of the reason for the extension and an estimate of when the claim will be processed. 
 Any
Applicant whose claim is denied under the provisions described above, or who has not received from the Administrative Committee a response to his or her claim within the time periods specified in the provisions described above may request a review
of the denied claim by written request to the Administrative Committee within 60 days after receiving notice of the denial. If such a request is made, the Administrative Committee shall make a full and fair review of the denial of the claim and
shall make a decision not later than 60 days after receipt of the request, unless special circumstances (such as the need to hold a hearing) require an extension of time, in which case a decision shall be made as soon as possible but not later
than 120 days after receipt of the request for review, and written notice of the reason for the extension and an estimate of when the review will be complete shall be given to the Applicant before the commencement of the extension. The decision
on review shall be in writing and shall include specific reasons for the decision and specific references to the pertinent provisions of the Plan on which the decision is based. Such notice will further describe that the Applicant has a right to
bring a civil action under Section 502 of ERISA. 

  
 20 








 No person entitled to benefits under the Plan shall have any right to seek review of a denial of benefits, or to
bring any action to enforce a claim for benefits, in any court or administrative agency prior to his or her filing a claim for benefits and exhausting all of his or her rights under this Section 7.4, or more than 180 days after he receives
the Administrative Committee’s decision on review of the denial of his or her claim. Although not required to do so, an Applicant, or his or her representative, may choose to state the reason or reasons he believes he is entitled to benefits,
and may choose to submit written evidence, during the initial claim process or review of claim denial process. However, failure to state any such reason or submit such evidence during the initial claim process or review of claim denial process,
shall permanently bar the Applicant, and his or her successors in interest, from raising such reason or submitting such evidence in any forum at any later date. An Applicant whose claim is denied initially or on review is entitled to receive, on
request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to such claim for benefits. 
  

	7.5	Action by Administrative Committee. 

 Action by the Administrative Committee will be subject to
the following special rules: 
  

	(a)	Meetings and Documents. The Administrative Committee may act by meeting or by document signed without meeting and documents may be signed through the use of a single document or concurrent documents.


  

	(b)	Action by Majority. The Administrative Committee will act by a majority decision which action will be as effective as if such action had been taken by all Administrative Committee members, provided that by
majority action one or more Administrative Committee members or other persons may be authorized to act with respect to particular matters on behalf of all Administrative Committee members. 


 

	(c)	Resolving Deadlocks. If there is an equal division among the Administrative Committee members with respect to any question a disinterested party may be selected by a majority vote to decide the matter. Any
decision by such disinterested party will be binding. 

  

	7.6	Indemnity. 

 To the extent permitted by applicable law and to the extent that they are not
indemnified or saved harmless under any liability insurance contracts, any present or former Administrative Committee members, officers, or directors of Baxter, the Employers or their subsidiaries or affiliates, if any, will be indemnified and saved
harmless by the Employers from and against any and all liabilities or allegations of liability to which they may be subjected by reason of any act done or omitted to be done in good faith in the administration of the Plan, including all expenses
reasonably incurred in their defense in the event that Baxter fails to provide such defense after having been requested in writing to do so. 

  
 21 








 ARTICLE VIII — AMENDMENT AND TERMINATION OF PLAN 

 

	8.1	Amendment. 

  

	(a)	The Compensation Committee may amend the Plan at any time, except that no amendment will decrease or restrict the Accounts of Participants and Beneficiaries at the time of the amendment. Baxter’s authority to amend
the Plan has been delegated to the Administrative Committee to the extent provided in Section 8.1(b). The authority to amend the Plan in any respect (whether or not such amendment is within the authority delegated to the Administrative
Committee) may also be exercised by the Board of Directors, the Compensation Committee or any other person to whom the Board or Compensation Committee delegates such authority. 


 

	(b)	The Administrative Committee has been delegated the authority to adopt any amendments to the Plan as the Administrative Committee may determine to be necessary or appropriate, except that no amendment shall be made to
any Plan without approval of the Compensation Committee unless the Administrative Committee determines that such amendment will not significantly change the overall level of benefits provided by such Plan; significantly change the requirements for
eligibility for participation in the Plan; or add any material new benefit that would significantly increase the cost of the Plan. In illustration but not limitation of the foregoing, the Administrative Committee is authorized to adopt any amendment
to a Plan that it determines to be: 

  

	 	(i)	an amendment that provides for the Plan to be adopted by any business entity acquired by Baxter, including providing any special rules applicable to the employees of such business entity; 


 

	 	(ii)	an amendment that the Administrative Committee determines to be of an administrative, ministerial or technical nature only; 

  

	 	(iii)	an amendment that the Administrative Committee determines to be necessary or appropriate to carry out any amendment approved by, or other resolution adopted by, the Board; 


 

	 	(iv)	an amendment that the Administrative Committee determines to be necessary or appropriate to comply with any applicable law, or necessary to conform the terms of the Plan to established administrative practices or
procedures; or 

  

	 	(v)	an amendment that the Administrative Committee determines to be necessary or appropriate to clarify or to resolve any inconsistency or ambiguity in the terms of the Plan. 


The adoption by the Administrative Committee of any amendment to the Plan shall constitute conclusive evidence that the Administrative
Committee has determined such amendment to be authorized under the terms of the foregoing resolution, which determination shall be conclusive and binding on all employees, participants, beneficiaries and other persons claiming any benefit under the
Plan. 

  
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	8.2	Right to Terminate. 

 The Compensation Committee may at any time terminate the Plan. Any Employer
may terminate its participation in the Plan by notice to Baxter. The Plan may also be terminated with respect to a group of Eligible Employees only (including, effective January 1, 2005, Participants who are Eligible Employees solely by reason
of Section 3.1), and the provisions of Section 8.3 shall apply to such group of Eligible Employees only. 
  

	8.3	Payment at Termination. 

 If the Plan is terminated all Accounts shall continue to be held and
distributed in accordance with the terms of the Plan; provided that the Administrative Committee may, to the extent permitted under Section 409A, provide for the immediate distribution of Accounts. 

  
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 ARTICLE IX — MISCELLANEOUS 

 

	9.1	Unfunded Plan. 

 This Plan is intended to be an unfunded retirement plan maintained
primarily to provide retirement benefits for a select group of management or highly compensated employees. All credited amounts are unfunded, general obligations of the appropriate Employer. This Plan is not intended to create an investment
contract, but to provide retirement benefits to eligible employees who participate in the Plan. Eligible employees are members of a select group of management or are highly compensated employees, who, by virtue of their position with an Employer,
are uniquely informed as to such Employer’s operations and have the ability to affect materially Employer’s profitability and operations. The Administrative Committee, but shall not be obligated to, establish one or more trusts of the type
commonly referred to as “rabbi trusts” and cause funds representing all or a portion of the amounts deferred under the Plan to be deposited in such trusts, provided that the terms of such trusts provide that, upon the insolvency of the an
Employer, the funds held in such trusts are subject to the claims of the Employer’s creditors, in accordance with applicable Internal Revenue Service guidance. The Administrative Committee may cause Baxter to assume the obligations of the
employer under any such trust previously established with respect to either or both of the Gambro Plans, and such trust shall be treated as a trust established pursuant to this Section 9.1 in accordance with its terms. The Administrative
Committee may, on behalf of Baxter, enter into agreements establishing any such trusts, amend or terminate such trusts, and remove or replace the trustees of such trusts, including any trusts established under the Gambro Plans, in accordance with
their terms. 
  

	9.2	Unsecured General Creditor. 

 In the event of an Employer’s insolvency, Participants and
their Beneficiaries, heirs, successors and assigns will have no legal or equitable rights, interest or claims in any property or assets of such Employer, nor will they be Beneficiaries of, or have any rights, claims or interests in any life
insurance policies, annuity contracts or the proceeds therefrom owned or which may be acquired by such Employer (the “Policies”), or any trust established pursuant to Section 9.1, greater than those of any other unsecured general
creditors. In that event, any and all of the Employer’s assets and Policies will be, and remain, the general, unpledged, unrestricted assets of Employer. Employer’s obligation under the Plan will be merely that of an unfunded and unsecured
promise of Employer to pay money in the future. 
  

	9.3	Nonassignability. 

 Neither a Participant nor any other person will have any right to commute,
sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber, transfer, hypothecate or convey in advance of actual receipt the amounts, if any, payable hereunder, or any part thereof, which are, and all rights to which are, expressly
declared to be nonassignable and nontransferable. No part of the amounts payable will, prior to actual payment, be subject to seizure or sequestration for the payment of any debts, judgments, alimony or separate maintenance owed by a Participant or
any other person, nor be transferable by operation of law in the event of a Participant’s or any other person’s bankruptcy or insolvency. Nothing contained herein will preclude an Employer from offsetting any amount owed to it by a
Participant against payments to such Participant or his or her Beneficiary. 

  
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	9.4	Not a Contract of Employment. 

 The terms and conditions of this Plan will not be deemed to
constitute a contract of employment between a Participant and such Participant’s Employer, and neither the Participant nor the Participant’s Beneficiary will have any rights against such Participant’s Employer except as may otherwise
be specifically provided herein. Moreover, nothing in this Plan is deemed to give a Participant the right to be retained in the service of his or her Employer or to interfere with the right of such Employer to discipline or discharge him or her at
any time. 
  

	9.5	Protective Provisions. 

 A Participant will cooperate with Baxter by furnishing any and all
information requested by Baxter, in order to facilitate the payment of benefits hereunder. 
  

	9.6	Governing Law. 

 The provisions of this Plan will be construed and interpreted according to the
laws of the State of Illinois, to the extent not preempted by ERISA. 
  

	9.7	Severability. 

 In the event any provision of the Plan is held invalid or illegal for any reason,
any illegality or invalidity will not affect the remaining parts of the Plan, but the Plan will be construed and enforced as if the illegal or invalid provision had never been inserted, and Baxter will have the privilege and opportunity to correct
and remedy such questions of illegality or invalidity by amendment as provided in the Plan, including, but not by way of limitation, the opportunity to construe and enforce the Plan as if such illegal and invalid provision had never been inserted
herein. 
  

	9.8	Notice. 

 Any notice or filing required or permitted to be given to Baxter or the Administrative
Committee under the Plan will be sufficient if in writing and hand delivered, or sent by registered or certified mail to any member of the Administrative Committee, or to Baxter’s Chief Financial Officer and, if mailed, will be addressed to the
principal executive offices of Baxter. Notice to a Participant or Beneficiary may be hand delivered or mailed to the Participant or Beneficiary at his or her most recent address as listed in the employment records of Baxter. Notices will be deemed
given as of the date of delivery or mailing or, if delivery is made by certified or registered mail, as of the date shown on the receipt for registration or certification. Any person entitled to notice hereunder may waive such notice. 

  
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	9.9	Successors. 

 The provisions of this Plan will bind and inure to the benefit of Baxter, each
Employer, the Participants and Beneficiaries, and their respective successors, heirs and assigns. The term successors as used herein will include any corporate or other business entity, which, whether by merger, consolidation, purchase or otherwise
acquires all or substantially all of the business and assets of Baxter, and successors of any such corporation or other business entity. 
  

	9.10	Action by Baxter. 

 Except as otherwise provided herein, any action required of or permitted by
Baxter under the Plan will be by resolution of the Compensation Committee or any person or persons authorized by resolution of the Compensation Committee. 
  

	9.11	Effect on Benefit Plans. 

 Amounts paid under this Plan, will not by operation of this Plan be
considered to be compensation for the purposes of any benefit plan maintained by any Employer. The treatment of such amounts under other employee benefit plans will be determined pursuant to the provisions of such plans. 

 

	9.12	Participant Litigation. 

 In any action or proceeding regarding the Plan, employees or former
employees of Baxter or an Employer, Participants, Beneficiaries or any other persons having or claiming to have an interest in this Plan will not be necessary parties and will not be entitled to any notice or process. Any final judgment which is not
appealed or appealable and may be entered in any such action or proceeding will be binding and conclusive on the parties hereto and all persons having or claiming to have any interest in this Plan. To the extent permitted by law, if a legal action
is begun against Baxter, an Employer, the Administrative Committee, or any member of the Administrative Committee by or on behalf of any person and such action results adversely to such person or if a legal action arises because of conflicting
claims to a Participant’s or other person’s benefits, the costs to such person of defending the action will be charged to the amounts, if any, which were involved in the action or were payable to the Participant or other person concerned.
To the extent permitted by applicable law, acceptance of participation in this Plan will constitute a release of Baxter, each Employer, the Administrative Committee and each member thereof, and their respective agents from any and all liability and
obligation not involving willful misconduct or gross neglect. 

  
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