Document:

Non-Employee Director Compensation Plan

 EXHIBIT 10.1 
  
 [Amended] 
 BAXTER
INTERNATIONAL INC. 
 Non-Employee Director Compensation Plan 
 adopted May 6, 2003 
 Terms and Conditions 
  

	1.	Purpose 

  

	 	This Non-Employee Director Compensation Plan (the “Plan”) is adopted by the Board of Directors (the “Board”) of Baxter International Inc. (“Baxter”).
This Plan is adopted pursuant to the Baxter International Inc. 2003 Incentive Compensation Program (the “Program”), for the purposes stated in the Program. Capitalized terms defined in the Program that are used without being defined in the
Plan will have the same meaning as in the Program. 

  

	2.	Participants 

  

	 	Each member of the Board who is not an employee of Baxter or any of its subsidiaries shall participate in the Plan (a “Participant”). 

  

	3.	Restricted Stock 

  

	 	3.1	On the date of Baxter’s annual meeting of stockholders (the “Annual Meeting”) in each year beginning with the Annual Meeting on May 6, 2003, and subject to
availability of shares of Common Stock under the Program, each Participant upon completion of the Annual Meeting shall, automatically and without necessity of any action by the Board or any committee thereof, receive the number of shares of
Restricted Stock equal to the quotient of (A) $60,000 divided by (B) the Fair Market Value of a share of Common Stock on the date of grant (rounded to the nearest whole number which is a multiple of ten) (the “Annual Restricted Stock Grant
Amount”). 

  

	 	3.2	Each Participant elected or appointed on a date other than the date of an Annual Meeting shall, on the date of such election or appointment and automatically and without
necessity of any action by the Board or any committee thereof, receive the number of shares of Restricted Stock equal to the product of (A) the Annual Restricted Stock Grant Amount (as defined in Section 3.1, subject to adjustment in accordance with
the Program) for the Restricted Stock awarded on the date of the immediately preceding Annual Meeting, multiplied by (B) the quotient of (i) the number of full calendar months before the next Annual Meeting divided by (ii) 12 (rounded to the nearest
whole number which is a multiple of ten). The number of shares of Restricted Stock granted under this Section 3.2 shall not exceed the number available under the Program on the date of grant. 

	 	3.3	Restricted Stock may not be sold, transferred, assigned, pledged, hypothecated or otherwise encumbered or disposed of, whether voluntarily, involuntarily or by operation of
law, until vested pursuant to the terms hereof. 

  

	 	3.4	Subject to Section 11.10 of the Program and except as expressly provided in Sections 3.6 and 3.7, all shares of Restricted Stock shall vest on the date of and immediately
prior to the next Annual Meeting following the date of grant. 

  

	 	3.5	Except as provided in Sections 3.6 and 3.7, if a Participant ceases service as a member of the Board before his or her Restricted Stock vests, the Participant will forfeit
his or her unvested Restricted Stock immediately upon ceasing service as a member of the Board. 

  

	 	3.6	If a Participant dies while serving as a member of the Board, his or her unvested Restricted Stock will not be forfeited and will be fully vested immediately.

  

	 	3.7	If a Participant becomes disabled and unable to continue service as a member of the Board, his or her Restricted Stock will not be forfeited and will, when the Participant
ceases to serve as member of the Board, be fully vested. 

  

	 	3.8	Each Participant receiving Restricted Stock shall have all of the rights of a stockholder with respect to the shares of Restricted Stock during any period in which the shares
of Restricted Stock are subject to forfeiture or restrictions on transfer, including the right to vote the shares of Restricted Stock and to receive dividends and other distributions thereon, unless and until such shares are forfeited pursuant to
Section 3.5; provided, however, that a dividend or other distribution with respect to Restricted Stock (including, without limitation, a stock dividend or stock split), other than a cash dividend, shall be delivered to Baxter (and the Participant
shall, if requested by Baxter, execute and return one or more irrevocable stock powers related thereto) and shall be subject to the same restrictions as the Restricted Stock with respect to which such dividend or other distribution was made. Cash
dividends paid on the Restricted Stock will be reinvested in shares of Common Stock, unless the Participant elects otherwise. Common Stock purchased with reinvested cash dividends shall not be restricted. 

  

	 	3.9	If requested by Baxter, each Participant receiving Restricted Stock shall enter into an agreement with Baxter incorporating the terms and conditions of this Plan. A stock
certificate for the shares of Restricted Stock awarded will be issued in the name of each Participant and deposited, together with a stock power endorsed in blank by Participant, with Baxter. Each such certificate shall bear a legend in
substantially the following form: 

  
 The
transferability of this certificate and the shares of Common Stock represented by it are subject to the terms and conditions (including conditions of forfeiture) contained in the Baxter International Inc. Non-Employee Director Compensation Plan
adopted May 6, 2003. A copy of this Plan is available from the Corporate Secretary of Baxter International Inc. 
  
  

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 Subject to the terms of the Program, after the Restricted Stock vests, shares of Common Stock free and
clear of all restrictions will be delivered to the Participant (or to the Participant’s legal representative, beneficiary or heir). 
  

	4.	Stock Options 

  

	 	4.1	On the date of Baxter’s Annual Meeting in each year beginning with the Annual Meeting on May 6, 2003, and subject to availability of shares of Common Stock under the
Program, upon completion of the Annual Meeting each Participant shall be granted Stock Options having a value equal to $60,000, to be determined by the Board or the Compensation Committee of the Board (the “Committee”) based on a
Black-Scholes or other option valuation model in the discretion of the Board or the Committee (rounded to the nearest whole number which is a multiple of ten) (the “Annual Stock Option Grant Amount”). 

  

	 	4.2	Each Participant elected or appointed on a date other than the date of an Annual Meeting shall, on the date of such election or appointment and automatically and without
necessity of any action by the Board or any committee thereof, be granted a Stock Option to purchase that number of shares of Common Stock equal to the product of (A) the Annual Stock Option Grant Amount (as defined in Section 4.1, subject to
adjustment in accordance with the Program) for each Stock Option granted on the date of the immediately preceding Annual Meeting, multiplied by (B) the quotient of (i) the number of full calendar months before the next Annual Meeting divided by (ii)
12 (rounded to the nearest whole number which is a multiple of ten). The number of shares of Common Stock subject to any Stock Option granted under this Section 4.2 shall not exceed the number available under the Program on the date of grant.

  

	 	4.3	The purchase price for each share of Common Stock subject to a Stock Option shall be the Fair Market Value of a share of Common Stock on the date of grant. The terms of each
Stock Option will be as set forth in this Plan and the Program. To the extent that any provision of the Plan is inconsistent with the Program, the Program shall control. The Stock Options are not intended to qualify as Incentive Stock Options within
the meaning of Section 422 of the United States Internal Revenue Code. 

  

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	 	4.4	Subject to Section 11.10 of the Program and except as expressly provided in Sections 4.8, 4.9 and 4.10, Stock Options shall first become exercisable on the date of and
immediately prior to the next Annual Meeting following the date of grant. 

  

	 	4.5	After a Stock Option becomes exercisable and until it expires, it may be exercised in whole or in part, in the manner specified by the Company. Under no circumstances may a
Stock Option be exercised after it has expired. Shares of Common Stock may be used to pay the purchase price for shares of Common Stock to be acquired upon exercise of a Stock Option or fulfill any tax withholding obligation, subject to any
requirements or restrictions specified by the Company. 

  

	 	4.6	Except as provided in Sections 4.8, 4.9 and 4.10, if a Participant ceases service as a member of the Board before his or her Stock Option becomes exercisable, the Stock
Option will expire when the Participant ceases service as a member of the Board. 

  

	 	4.7	If a Participant ceases service as a member of the Board after his or her Stock Option becomes exercisable, the Stock Option will not expire but will remain exercisable.
Subject to Sections 4.8, 4.9, 4.10 and 4.11, the Stock Option will expire three months after the Participant ceases service as a member of the Board, unless the Participant dies or becomes disabled during such three month period in which case the
Stock Option will expire on the first anniversary of the date the Participant ceased serving as a member of the Board. 

  

	 	4.8	If a Participant dies while serving as a member of the Board, his or her Stock Option will not expire and will remain, or immediately become, fully exercisable, as the case
may be. Subject to Sections 4.10 and 4.11, the Stock Option will expire on the first anniversary of the Participant’s death. 

  

	 	4.9	If a Participant becomes disabled and unable to continue service as a member of the Board, his or her Stock Option will not expire and will remain, or when the Participant
ceases to serve as member of the Board become, fully exercisable, as the case may be. Subject to Sections 4.10 and 4.11, the Stock Option will expire on the first anniversary of the date the Participant ceases service as a member of the Board.

  

	 	4.10	If a Participant who has served as a member of the Board for a continuous period of at least ten years or who is at least 72 years of age ceases to serve as a member of the
Board (including without limitation by reason of death or disability), his or her Stock Option will not expire and will remain, or when the Participant ceases to serve as member of the Board become, fully exercisable, as the case may be. Subject to
Section 4.11, the Stock Option will expire on the fifth anniversary of the date the Participant ceases service as a member of the Board. 

  

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	 	4.11	Stock Options that have not previously expired will expire at the close of business on the tenth anniversary of the date of grant. If a Stock Option would expire on a date
that is not a Business Day, it will expire at the close of business on the last Business Day preceding that date. A “Business Day” is any day on which the Common Stock is traded on the New York Stock Exchange. 

  

	 	4.12	An exercisable Stock Option may only be exercised by the Participant, his or her legal representative, or a person to whom the Participant’s rights in the Stock Option
are transferred by will or the laws of descent and distribution or in accordance with rules and procedures established by the Committee. 

  

	5.	Cash Compensation 

  

	 	5.1	Baxter shall pay each Participant a meeting fee of $1,000 for each meeting of the Board or any committee thereof attended, and a Participant acting as the chairperson of any meeting
of a committee of the Board shall receive an additional $1,000 for each meeting chaired by him or her. Fees shall be paid quarterly in arrears and are payable if the Participant attends in person, by conference telephone, or by any other means
permitted by the Delaware General Corporation Law and Baxter’s Bylaws. 

  

	 	5.2	Baxter shall pay each Participant a total annual cash retainer of $45,000 per calendar year (“Annual Cash Retainer”). The Annual Cash Retainer shall be paid quarterly in
arrears. For purposes of determining the amount of such quarterly payment, a Participant must be a member of the Board on or prior to the 15th day of a month in order to be entitled to receive payment of the Annual Cash Retainer with respect to that month. 

  

	 	5.3	Participants shall be eligible to defer payment of cash compensation otherwise payable under this Section 5 pursuant to the terms and conditions of the Baxter Non-Employee Director
Deferred Compensation Plan. 

  

	6.	Availability of Shares 

  

	 	If on any grant date, the number of shares of Common Stock which would otherwise be granted in the form of Restricted Stock or subject to Stock Options granted under the Plan shall
exceed the number of shares of Common Stock then remaining available under the Program, the available shares shall be allocated among the Stock Options and Restricted Stock to be granted Participants in proportion to the number of shares subject to
Stock Options and shares of Restricted Stock that Participants would otherwise be entitled to receive, and allocated evenly between Restricted Stock and Stock Options. 

  

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	7.	General Provisions 

  

	 	7.1	Subject to the limitations contained in Section 11.9 of the Program, the Board or the Committee may, at any time and in any manner, amend, suspend, or terminate the Plan or
any Stock Option outstanding under the Plan. 

  

	 	7.2	Participation in the Plan does not give any Participant any right to continue as a member of the Board for any period of time or any right or claim to any benefit unless such
right or claim has specifically accrued hereunder. 

  
  

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 Amendment No. 1 
 to 
 Baxter International Inc. 
 Non-Employee Director Compensation Plan 
  
 Effective as of May 4, 2004, the Baxter International Inc. Non-Employee Director Compensation Plan is amended to add the following subsection 4.13 to read
in its entirety as follows: 
  

	4.13	The Board or the Committee may, in its sole discretion and without receiving permission from any Participant, substitute stock appreciation rights (“SARs”) for any
or all outstanding Stock Options granted on or after May 4, 2004. Upon the grant of substitute SARs, the related Stock Options replaced by the substitute SARs shall be cancelled. The grant price of the substitute SAR shall be equal to the Option
Price of the related Stock Option, the term of the substitute SAR shall not exceed the term of the related Stock Option, and the terms and conditions applicable to the substitute SAR shall otherwise be substantially the same as those applicable to
the related Stock Option replaced by the substitute SAR. 

  
 Amendment No. 2 
 to 
 Baxter International Inc. 
 Non-Employee Director Compensation Plan 
  
 Effective as of July 26, 2005, subsection 5.2 of the Baxter International
Inc. Non-Employee Director Compensation Plan is amended to read in its entirety as follows: 
  

	5.2	Baxter shall pay each Participant a total annual cash retainer of $45,000 per calendar year (“Annual Cash Retainer”). Baxter shall pay an additional annual cash
retainer of $25,000 per calendar year to the Lead Director (“Lead Director Retainer”). Both the Annual Cash Retainer and Lead Director Retainer shall be paid quarterly in arrears. For purposes of determining the amount of such quarterly
payment(s), a Participant and/or the Lead Director must be a member of the Board on or prior to the 15th day of a
month in order to be entitled to receive such payment(s) with respect to that month. 

  
  

 7Guaranty Agreement

 Exhibit 10.2 
 [Amended] 
  
 GUARANTY 
  
 This Guaranty (as it may be amended, restated or modified and in effect from
time to time, this “Guaranty”) is made as of the 7th day of January, 2005 by Baxter International Inc., a
Delaware corporation (the “Guarantor”), in favor of J.P. Morgan Europe Limited, in its capacity as agent on behalf of the Banks (as hereinafter defined). 
  
 R E C I T A L S: 
  
 A. Baxter Healthcare SA (the “Borrower”), the financial institutions named therein (the “Banks”), and J.P. Morgan Europe Limited, as
agent (together with its successors and assigns, the “Agent”), have entered into a certain Credit Agreement dated as of the date hereof (as from time to time modified, supplemented, restated or amended, the “Credit Agreement”).
Each capitalized term used but not otherwise defined herein shall have the meaning ascribed to such term by the Credit Agreement. 
  
 B. The Guarantor is the parent of the Borrower and will receive substantial and direct benefits from the extensions of credit contemplated by the Credit
Agreement and is entering into this Guaranty to induce the Agent and the Banks to enter into the Credit Agreement and extend credit to the Borrower thereunder. 
  

C. The execution and delivery of this Guaranty is a condition precedent to the obligations of the Banks to extend credit to the Borrower pursuant to
the Credit Agreement. 
  
 NOW THEREFORE, in consideration of the
foregoing and other good and valuable consideration and as an inducement to the Banks to enter into the Credit Agreement and extend credit to the Guarantor thereunder, the Guarantor hereby agrees as follows: 
  
 1. As used in this Guaranty: 
  
 “Adjusted Debt” means, at any time, (a) all Debt, minus
(b) an amount equal to all cash and cash equivalent investments of the Guarantor and its Consolidated Subsidiaries at such time. 
  
 “Consolidated” refers to the full consolidation of the accounts of the Guarantor and its Subsidiaries in accordance with generally accepted
accounting principles, including principles of consolidation, consistent with those applied in the preparation of the financial statements referred to in Section 11(f). 
  
 “Consolidated Capitalization” means, at any time, the sum at such time of: (i) the Consolidated
stockholders’ equity of the Guarantor and its Consolidated Subsidiaries, and (ii) Adjusted Debt of the Guarantor and its Consolidated Subsidiaries. 

 “Consolidated Net Tangible Assets” means the total amount of assets which would be included on
a Consolidated balance sheet of the Guarantor and its Consolidated Subsidiaries (and which shall reflect the deduction of applicable reserves) after deducting therefrom all current liabilities of the Guarantor and its Consolidated Subsidiaries and
all Intangible Assets. 
  
 “Debt” means the sum of:
(i) indebtedness for borrowed money or for the deferred purchase price of property or services carried as indebtedness on the Consolidated balance sheet of the Guarantor and its Consolidated Subsidiaries (excluding accounts payable arising in
the ordinary course of such Person’s business payable on terms customary in the trade), (ii) obligations of the Guarantor and its Consolidated Subsidiaries as lessee under leases that, in accordance with generally accepted accounting
principles, are recorded as capital leases, and (iii) obligations of the Guarantor and its Consolidated Subsidiaries under direct or indirect guaranties in respect of, and obligations (contingent or otherwise) to purchase or otherwise acquire,
or otherwise to assure a creditor against loss in respect of, indebtedness or obligations of others of the kinds referred to in clauses (i) and (ii) above (other than Debt of any Subsidiary, to the extent such Debt is included in the
calculation of Debt as a result of clause (i) or (ii) above) in excess of $100,000,000 in the aggregate and (iv) indebtedness or obligations of the kinds referred to in clause (i), (ii), or (iii) above of the
Guarantor’s unconsolidated Subsidiaries in excess of $200,000,000 in the aggregate. The term “Debt” shall not include (A) any obligations of the Guarantor under or in connection with that certain Facility and Guaranty Agreement
dated as of April 14, 2004 among the Guarantor, certain financial institutions parties thereto and Bank One, NA, as agent, (B) that certain Facility and Guaranty Agreement dated as of July 8, 2003 among the Guarantor, certain
financial institutions parties thereto and Bank One, NA, as agent, or (C) any similar arrangement under which the Guarantor has agreed to guarantee the payment obligations of a current or former employee of the Guarantor arising in connection
with financing provided to such employee and relating to the Guarantor’s “Baxter International Inc. 1999 Shared Investment Plan”, to the extent the aggregate obligations of the Guarantor under the foregoing clauses (A), (B) and
(C) do not exceed an amount equal to $200,000,000 and such obligations (whenever incurred) shall have arisen solely in connection with purchases by such employees of the Guarantor common stock in 1999, or (y) the undrawn face amount of any
letter of credit issued for the account of the Guarantor or any of its Consolidated Subsidiaries in the ordinary course of the Guarantor’s or such Subsidiary’s business, but shall include the reimbursement obligation owing from time to
time by the Guarantor or any of its Consolidated Subsidiaries in respect of drawings made under any letter of credit in the event reimbursement is not made immediately following the applicable drawing. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as
amended. 
  
 “Guaranteed Obligations” is defined in
Section 2. 
  
 “Intangible Assets” means all
assets of the Guarantor and its Consolidated Subsidiaries which are treated as intangibles in conformity with generally accepted 

  

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accounting principles on the Consolidated balance sheet of the Guarantor and its Consolidated Subsidiaries. 
  
 “Interest Expense” means, with respect to any period, the
Consolidated interest expense of the Guarantor and its Consolidated Subsidiaries for such period before the effect of interest income, as reflected on the Consolidated statements of income for the Guarantor and its Consolidated Subsidiaries for such
period. 
  
 “Material Adverse Effect” means a material
adverse effect on (i) the business, property, condition (financial or otherwise), results of operations, or prospects of the Guarantor and its Subsidiaries taken as a whole, (ii) the ability of the Guarantor to perform its obligations
under this Guaranty, or (iii) the validity or enforceability of this Guaranty or the rights or remedies of the Banks hereunder. 
  
 “Material Default Amount” means an amount equal to $50,000,000. 
  
 “Material Subsidiary” means, with respect to the Guarantor, any of (i) the Borrower, (ii) Baxter
Healthcare Corporation, a Delaware corporation, (iii) Baxter World Trade Corporation, a Delaware corporation, or (iv) in the case of any specified condition or event, any other Subsidiary or group of other Subsidiaries (A) each of
which has suffered such condition or event to occur and (B) that in the aggregate represents five percent (5%) or more of the net revenues or the Consolidated Net Tangible Assets of the Guarantor and its Consolidated Subsidiaries, as
reflected in the then most recent financial statements of the Guarantor and its Consolidated Subsidiaries delivered pursuant to Section 12(a)(i) or (ii). 
  
 “Secured Debt” means the amount of Debt or other obligation or liability of the Guarantor or any of its Material
Subsidiaries the payment of which is secured by a Security Interest. 
  
 “SEC” means the United States Securities and Exchange Commission or any successor thereto. 
  
 “Security Interest” means any lien, security interest, mortgage or other charge or encumbrance of any kind, title retention device, pledge or
any other type of preferential arrangement, upon or with respect to any property of the Guarantor or of any Material Subsidiary, whether now owned or hereafter acquired. 
  
 “Subsidiary” means any entity with respect to which the Guarantor alone owns, the Guarantor and one or more
Subsidiaries together own, or any Person controlling the Guarantor owns, in each such case directly or indirectly, capital stock (or the equivalent equity interest) having ordinary voting power to elect a majority of the members of the Board of
Directors of such corporation (or, in the case of a partnership or joint venture, having the majority interest in the capital or profits of such entity). 
  
 The foregoing definitions shall be equally applicable to both the singular and plural forms of the defined terms. 
  

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 In the event that any changes in generally accepted accounting principles occur after the date hereof and
such changes result in a material variation in the method of calculation of financial covenants or other terms of this Guaranty, then the Guarantor and the Banks agree to amend such provisions of this Guaranty so as to equitably reflect such changes
in order that the criteria for evaluating the Guarantor’s financial condition will be the same after such changes as if such changes had not occurred. 
  
 2. The Guarantor hereby absolutely, irrevocably and unconditionally guarantees prompt, full and complete payment when due, whether at stated maturity,
upon acceleration or otherwise, and at all times thereafter, of (a) the principal of and interest on the Advances made by the Banks to, and any Notes held by the Banks of, the Borrower and (b) all other amounts from time to time owing to
the Banks by the Borrower under the Credit Agreement, any Notes and the other Loan Documents (collectively, the “Guaranteed Obligations”). This is a guaranty of payment, not a guaranty of collection. 
  
 3. The Guarantor waives notice of the acceptance of this Guaranty and of the
extension, incurrence or continuance of the Guaranteed Obligations or any part thereof. The Guarantor further waives all setoffs and counterclaims and presentment, protest, notice, filing of claims with a court in the event of receivership,
bankruptcy or reorganization of the Borrower, demand or action on delinquency in respect of the Guaranteed Obligations or any part thereof, including any right to require the Banks to sue the Guarantor, the Borrower, any other guarantor or any other
Person obligated with respect to the Guaranteed Obligations or any part thereof, or otherwise to enforce payment thereof against any collateral securing the Guaranteed Obligations or any part thereof. 
  
 4. The Guarantor hereby agrees that, to the fullest extent permitted by law,
its obligations hereunder shall be continuing, absolute and unconditional under any and all circumstances and not subject to any reduction, limitation, impairment, termination, defense (other than indefeasible payment in full), setoff, counterclaim
or recoupment whatsoever (all of which are hereby expressly waived by it to the fullest extent permitted by law), whether by reason of any claim of any character whatsoever, including, without limitation, any claim of waiver, release, surrender,
alteration or compromise. The validity and enforceability of this Guaranty shall not be impaired or affected by any of the following: (a) any extension, modification or renewal of, or indulgence with respect to, or substitution for, the
Guaranteed Obligations or any part thereof or any agreement relating thereto at any time; (b) any failure or omission to perfect or maintain any lien on, or preserve rights to, any security or collateral or to enforce any right, power or remedy
with respect to the Guaranteed Obligations or any part thereof or any agreement relating thereto, or any collateral securing the Guaranteed Obligations or any part thereof; (c) any waiver of any right, power or remedy or of any default with
respect to the Guaranteed Obligations or any part thereof or any agreement relating thereto or with respect to any collateral securing the Guaranteed Obligations or any part thereof; (d) any release, surrender, compromise, settlement, waiver,
subordination or modification, with or without consideration, of any collateral securing the Guaranteed Obligations or any part thereof, any other guaranties with respect to the 

  

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Guaranteed Obligations or any part thereof, or any other obligations of any person or entity with respect to the Guaranteed Obligations or any part thereof;
(e) the non-enforceability or invalidity of the Guaranteed Obligations or any part thereof or the spuriousness, non-enforceability or invalidity of any agreement relating thereto or with respect to any collateral securing the Guaranteed
Obligations or any part thereof; (f) the application of payments received from any source to the payment of indebtedness other than the Guaranteed Obligations, any part thereof or amounts which are not covered by this Guaranty even though the
Banks might lawfully have elected to apply such payments to any part or all of the Guaranteed Obligations or to amounts which are not covered by this Guaranty; (g) any change of ownership of the Borrower or the insolvency, bankruptcy or any
other change in the legal status of the Borrower; (h) any change in, or the imposition of, any law, decree, regulation or other governmental act which does or might impair, delay or in any way affect the validity, enforceability or the payment
when due of the Guaranteed Obligations; (i) the failure of the Borrower to maintain in full force, validity or effect or to obtain or renew when required all governmental and other approvals, licenses or consents required in connection with the
Guaranteed Obligations or this Guaranty, or to take any other action required in connection with the performance of all obligations pursuant to the Guaranteed Obligations or this Guaranty; (j) the existence of any claim, setoff or other rights
which the Guarantor may have at any time against the Borrower or any other guarantor or any other Person in connection herewith or with any unrelated transaction; (k) the Banks’ election, in any case or proceeding instituted under chapter
11 of the United States Bankruptcy Code, of the application of Section 1111(b)(2) of the United States Bankruptcy Code; (l) any borrowing, use of cash collateral, or grant of a security interest by the Borrower, as debtor in possession,
under Section 363 or 364 of the United States Bankruptcy Code; (m) the disallowance of all or any portion of the Bank’s claims for repayment of the Guaranteed Obligations under Section 502 or 506 of the United States Bankruptcy
Code; or (n) any other fact or circumstance which might otherwise constitute grounds at law or equity for the discharge or release of the Guarantor from its obligations hereunder, all whether or not the Guarantor shall have had notice or
knowledge of any act or omission referred to in the foregoing clauses (a) through (n) of this Section. It is agreed that the Guarantor’s liability hereunder is independent of any other guaranties or other obligations at
any time in effect with respect to the Guaranteed Obligations or any part thereof and that the Guarantor’s liability hereunder may be enforced regardless of the existence, validity, enforcement or non-enforcement of any such other guaranties or
other obligations or any provision of any applicable law or regulation purporting to prohibit payment by the Borrower of the Guaranteed Obligations in the manner agreed upon among the Agent, the Borrower and the Banks. 
  
 5. Credit may be granted or continued from time to time by the Banks to the
Borrower without notice to or authorization from the Guarantor regardless of the Borrower’s financial or other condition at the time of any such grant or continuation. The Banks shall not have an obligation to disclose or discuss with the
Guarantor their assessment of the financial condition of the Borrower. 
  
 6. Until the irrevocable payment in full of the Guaranteed Obligations and termination of all commitments which could give rise to any of the Guaranteed 

  

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Obligations, (a) the Guarantor shall have no right of subrogation with respect to the Guaranteed Obligations, (b) the Guarantor hereby waives any
right to enforce any remedy which the Agent or the Banks now have or may hereafter have against the Borrower, any endorser or any other guarantor of all or any part of the Guaranteed Obligations, and (c) the Guarantor hereby waives any benefit
of, and any right to participate in, any security or collateral given to the Agent or the Banks to secure payment of the Guaranteed Obligations or any part thereof or any other liability of the Borrower to the Banks. 
  
 7. The Guarantor authorizes the Banks to take any action or exercise any
remedy with respect to any collateral securing the Guaranteed Obligations, which the Banks in their sole discretion shall determine, without notice to the Guarantor. 
  
 8. In the event the Banks in their sole discretion elect to give notice of any action with respect to any collateral
securing the Guaranteed Obligations or any part thereof, ten (10) days’ written notice mailed to the Guarantor by ordinary mail at its address referred to in Section 20 shall be deemed reasonable notice of any matters contained
in such notice. The Guarantor consents and agrees that neither the Agent nor the Banks shall be under any obligation to marshall any assets in favor of the Guarantor or against or in payment of any or all of the Guaranteed Obligations. 

 
 9. In the event that acceleration of the time for payment of any of the
Guaranteed Obligations is stayed upon the insolvency, bankruptcy or reorganization of the Borrower, or otherwise, all such amounts shall nonetheless be payable by the Guarantor forthwith upon demand by the Agent or the Banks. The Guarantor further
agrees that, to the extent that the Borrower makes a payment or payments to any of the Banks on the Guaranteed Obligations, or the Agent or the Banks receive any proceeds of collateral securing the Guaranteed Obligation, which payment or receipt of
proceeds or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be returned or repaid to the Borrower, its estate, trustee, receiver, debtor in possession or any other party, including,
without limitation, the Guarantor, under any insolvency or bankruptcy law, state or federal law, common law or equitable cause, then to the extent of such payment, return or repayment, the obligation or part thereof which has been paid, reduced or
satisfied by such amount shall be reinstated and continued in full force and effect as of the date when such initial payment, reduction or satisfaction occurred. 
  
 10. No delay on the part of the Agent or the Banks in the exercise of any right, power or remedy shall operate as a waiver
thereof, and no single or partial exercise by the Agent or the Banks of any right, power or remedy shall preclude any further exercise thereof; nor shall any amendment, supplement, modification or waiver of any of the terms or provisions of this
Guaranty be binding upon the Agent or the Banks, except as expressly set forth in a writing duly signed and delivered on the Banks’ behalf of the Agent. The failure by the Agent or the Banks at any time or times hereafter to require strict
performance by the Borrower or the Guarantor of any of the provisions, warranties, terms and conditions contained in any promissory note, pledge agreement, security agreement, agreement, guaranty, instrument or document now or at any time or 

  

 6 

 
times hereafter executed pursuant to the terms of, or in connection with, the Credit Agreement by the Borrower or the Guarantor and delivered to the Agent or
the Banks shall not waive, affect or diminish any right of the Agent or the Banks at any time or times hereafter to demand strict performance thereof, and such right shall not be deemed to have been waived by any act or knowledge of the Agent or the
Banks, their agents, officers or employees, unless such waiver is contained in an instrument in writing duly signed and delivered on the Banks’ behalf by the Agent. No waiver by the Agent or the Banks of any default shall operate as a waiver of
any other default or the same default on a future occasion, and no action by the Banks permitted hereunder shall in any way affect or impair the Agent’s or the Banks’ rights or powers, or the obligations of the Guarantor under this
Guaranty. Any determination by a court of competent jurisdiction of the amount of any Guaranteed Obligations owing by the Guarantor to the Banks shall be conclusive and binding on each Guarantor irrespective of whether the Guarantor was a party to
the suit or action in which such determination was made. 
  
 11.
The Guarantor represents and warrants to the Agent and the Banks that: 
  
 (a) The Guarantor and each Material Subsidiary is a corporation duly incorporated, validly existing and in good standing under the laws of its jurisdiction of incorporation and has all requisite authority to conduct its business in each
jurisdiction in which the failure so to qualify would have a material adverse effect on the business, properties, assets, operations or condition (financial or otherwise) of the Guarantor; 
  
 (b) The execution, delivery and performance by the Guarantor of this Guaranty
are within the Guarantor’s corporate powers, have been duly authorized by all necessary corporate action, and do not contravene (i) the Guarantor’s charter or by-laws or (ii) any law or any contractual restriction binding on or
affecting the Guarantor; 
  
 (c) No authorization or approval or
other action by, and no notice to or filing with, any Governmental Authority or regulatory body is required for the due execution, delivery and performance by the Guarantor of this Guaranty; 
  
 (d) This Guaranty is the legal, valid and binding obligations of the
Guarantor enforceable against the Guarantor in accordance with its terms, subject to the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors’ rights generally and to the effect of
general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law); 
  
 (e) There is no pending or, to the best of the knowledge of the Guarantor, threatened action or proceeding affecting the Guarantor or any of its
Subsidiaries before any court, governmental agency or arbitrator, which could reasonably be expected to have a material adverse effect on the financial condition or operations of the Guarantor or which purports to affect the legality, validity or
enforceability of this Guaranty; 
  

 7 

 (f) The Consolidated balance sheet at December 31, 2003 and the related Consolidated statements of
income and stockholder’s equity for the period then ended of the Guarantor and its Consolidated Subsidiaries, copies of which have been furnished to each Bank, present fairly the financial position of the Guarantor and its Consolidated
Subsidiaries at December 31, 2003 and the results of the operations and changes in financial position of the Guarantor and its Consolidated Subsidiaries for the year then ended, in conformity with generally accepted accounting principles
applied on a basis consistent with that of the preceding year. The Consolidated balance sheet at June 30, 2004 and the related Consolidated statements of income and stockholder’s equity for the two quarters then ended of the Guarantor and
its Consolidated Subsidiaries, copies of which have been furnished to each Bank, present fairly the financial position of the Guarantor and its Consolidated Subsidiaries at June 30, 2004 and the results of the operations and changes in
financial position of the Guarantor and its Consolidated Subsidiaries for the two quarters then ended, in conformity with generally accepted accounting principles consistently applied. Since December 31, 2003 there has been no material adverse
change in such financial position or operations; and 
  
 (g) The
operations of the Guarantor and each Material Subsidiary comply in all material respects with all Environmental Laws, the noncompliance with which would materially adversely affect the business of the Guarantor or the ability of the Guarantor to
obtain credit on commercially reasonable terms; and 
  
 (h) The
Guarantor is not (i) an “investment company,” (ii) a company “controlled” by an “investment company” which is registered under the Investment Company Act of 1940, as amended, or (iii) to the best
knowledge of the Guarantor, a company “controlled” by any other “investment company” within the meaning of the Investment Company Act of 1940, as amended. 
  
 The Guarantor agrees that the foregoing representations and warranties shall be deemed to have been made by the Guarantor on
the date of this Guaranty and on the date of each Borrowing Notice (except to the extent any such representation or warranty is stated to relate solely to an earlier date) with respect to each Advance under the Credit Agreement on and as of such
Borrowing Date. 
  
 12. As long as this Guaranty shall continue in
effect, the Guarantor shall: 
  
 (a) provide to the Agent in
sufficient copies for distribution to each Bank: 
  
 (i) As soon as available and in any event within the earlier of (A) five (5) days after the time period specified by the SEC under the Exchange Act for quarterly reporting or (B) 55 days after the end of each of the first
three quarters of each fiscal year of the Guarantor, a Consolidated balance sheet of the Guarantor and its Consolidated Subsidiaries as of the end of such quarter and a Consolidated statement of income and changes in financial position (or
Consolidated statement of 

  

 8 

 
cash flow, as the case may be) of the Guarantor and its Consolidated Subsidiaries for the period commencing at the end of the previous fiscal year and ending
with the end of such quarter, certified by the chief financial officer of the Guarantor; provided, however, that at any time the Guarantor shall be subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act,
delivery within the time period specified above of copies of the quarterly balance sheets and statements on Form 10-Q of the Guarantor and its Consolidated Subsidiaries for such quarterly period as filed with the SEC shall be deemed to satisfy the
requirements of this clause (i); 
  
 (ii) As soon
as available and in any event within the earlier of (A) five (5) days after the time period specified by the SEC under the Exchange Act for annual reporting or (B) 100 days after the end of each fiscal year of the Guarantor, a
Consolidated balance sheet of the Guarantor and its Consolidated Subsidiaries as of the end of such year and a Consolidated statement of income and stockholder’s equity and changes in financial position of the Guarantor and its Consolidated
Subsidiaries for such fiscal year and accompanied by (A) a report of PriceWaterhouse Coopers LLP, independent public accountants of the Guarantor, or other independent public accountants of nationally recognized standing, on the results of
their examination of the Consolidated annual financial statements of the Guarantor and its Consolidated Subsidiaries, which report shall be unqualified or shall be otherwise reasonably acceptable to the Majority Banks; provided that such
report may set forth qualifications to the extent such qualifications pertain solely to changes in generally accepted accounting principles from such principles applied during earlier accounting periods, the implementation of which changes (with the
concurrence of such accountants) is reflected in the financial statements accompanying such report, and (B) a certificate of such accountants substantially in the form of Exhibit 6.01(g)(ii) to the Credit Agreement; and provided
further, that at any time the Guarantor shall be subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, delivery within the time period specified above of copies of the annual balance sheets and statements on Form
10-K of the Guarantor and its Consolidated Subsidiaries for such annual period as filed with the SEC shall be deemed to satisfy the requirements of this clause (ii); 
  
 (iii) Promptly after the sending or filing thereof, copies of all reports which the Guarantor files with the
SEC under the Exchange Act, including, without limitation, all such reports that disclose material litigation pending against the Guarantor or any Material Subsidiary or any material noncompliance with any Environmental Law on the part of the
Guarantor or any Material Subsidiary; 
  
 (iv)
Together with the financial statements required pursuant to clauses (i) and (ii) above, a certificate signed by the chief financial officer 

  

 9 

 
of the Guarantor (A) stating that no event of default under this Guaranty or event which, with notice or the lapse of time or both, would constitute
such an event of default exists or, if any does exist, stating the nature and status thereof and describing the action the Guarantor proposes to take with respect thereto and (B) demonstrating, in reasonable detail, the calculations used by
such officer to determine compliance with the financial covenants contained in Sections 12(h), 12(i) and 12(j); 
  
 (v) With respect to each fiscal year for which the Guarantor shall have an aggregate Unfunded Liability of $100,000,000 or more for all of
its single employer pension benefit plans covered by Title IV of ERISA and all multiemployer pension benefit plans covered by Title IV of ERISA to which the Guarantor has an obligation to contribute, as soon as available, and in any event within ten
months after the end of such fiscal year, a statement of Unfunded Liabilities of each such plan, certified as correct by an actuary enrolled in accordance with regulations under ERISA and a statement of estimated withdrawal liability as of the most
recent plan year end as customarily prepared by the trustees under the multiemployer plans to which the Guarantor has an obligation to contribute; 
  
 (vi) As soon as possible, and in any event within 30 days after the occurrence of each event the Guarantor knows is or may be a Reportable
Event (as defined in Section 4043 of ERISA) with respect to any Plan with an Unfunded Liability in excess of $100,000,000, a statement signed by the chief financial officer of the Guarantor describing such reportable event and the action which
the Guarantor proposes to take with respect thereto; and 
  
 (vii) As soon as possible, and in any event within five Business Days after the Guarantor shall become aware of the occurrence of each event of default under this Guaranty or each event which, with notice or lapse of
time or both, would constitute such an event of default, which event of default or event is continuing on the date of such statement, a statement of the chief financial officer of the Guarantor setting forth details of such event of default or event
and the action which the Guarantor proposes to take with respect thereto; 
  
 (b) Pay and discharge, and cause each Material Subsidiary to pay and discharge, before the same shall become delinquent, (i) all taxes, assessments and governmental charges or levies imposed upon it or upon its
income, profit or property, and (ii) all lawful claims which, if unpaid, might by law become a lien upon its property; provided, however, that neither the Guarantor nor any Material Subsidiary shall be required to pay or discharge
any such tax, assessment, charge or claim which is being contested in good faith and by proper proceedings and with respect to which the Guarantor shall have established appropriate reserves in accordance with generally accepted accounting
principles; 
  

 10 

 (c) Maintain, and cause each Material Subsidiary to maintain, insurance with responsible and reputable
insurance companies or associations in such amounts and covering such risks as is usually carried by (or, as applicable, self-insure in a manner and to an extent not inconsistent with conventions observed by) companies engaged in similar businesses
and owning similar properties in the same general areas in which the Guarantor or such Material Subsidiary operates; 
  
 (d) Preserve and maintain, and cause each Material Subsidiary to preserve and maintain, its corporate existence, rights (charter and statutory), and
franchises, except as otherwise permitted by Section 12(k); 
  
 (e) Comply, and cause each Material Subsidiary to comply, with the requirements of all applicable laws, rules, regulations and orders of any Governmental Authority (including, without limitation, all Environmental Laws), noncompliance with
which would materially adversely affect the business of the Guarantor or the ability of the Guarantor to obtain credit on commercially reasonable terms; 
  
 (f) Keep, and cause each Material Subsidiary to keep, proper books of record and account, in which full and correct entries shall be made of all financial
transactions and the assets and business of the Guarantor and each Material Subsidiary in accordance with generally accepted accounting principles consistently applied; 
  
 (g) Permit, and cause each Material Subsidiary to permit, the Agent, and its representatives and agents (which may be a
Bank), to inspect any of the properties, corporate books and financial records of the Guarantor and its Material Subsidiaries, to examine and make copies of the books of account and other financial records of the Guarantor and its Material
Subsidiaries, and to discuss the affairs, finances and accounts of the Guarantor and its Material Subsidiaries with, and to be advised as to the same by, their respective officers or directors, at such reasonable times during normal business hours
and intervals as the Agent may reasonably designate; 
  
 (h)
Maintain a ratio of (i) the sum of Consolidated income before income tax expense (excluding extraordinary gains and losses) of the Guarantor and its Consolidated Subsidiaries plus Interest Expense of the Guarantor and its Consolidated
Subsidiaries as at the end of each fiscal quarter of the Guarantor with respect to the four-quarter period then ended, to (ii) Interest Expense for such four-quarter period then ended of not less than 2.0 to 1.0; 
  
 (i) Not suffer to exist, create, assume or incur, or permit any of its
Material Subsidiaries to suffer to exist, create, assume or incur, any Security Interest, or assign, or permit any of its Material Subsidiaries to assign, any right to receive income, in each case to secure Debt or any other obligation or liability,
other than: 
  
 (i) Any Security Interest to
secure Debt or any other obligation or liability of any Material Subsidiary to the Guarantor; 
  
 (ii) Mechanics’, materialmen’s, carriers’ or other like liens arising in the ordinary course of business (including
construction of 

  

 11 

 
facilities) in respect of obligations which are not due or which are being contested in good faith and for which reasonable reserves have been established;

  
 (iii) Any Security Interest arising by reason
of deposits with, or the giving of any form of security to, any governmental agency or any body created or approved by law or governmental regulation which is required by law or governmental regulation as a condition to the transaction of any
business, or the exercise of any privilege, franchise or license; 
  
 (iv) Security Interests for taxes, assessments or governmental charges or levies not yet delinquent or Security Interests for taxes, assessments or governmental charges or levies already delinquent but the validity of
which is being contested in good faith and for which reasonable reserves have been established; 
  
 (v) Security Interests (including judgment liens) arising in connection with legal proceedings so long as such proceedings are being
contested in good faith and, in the case of judgment liens, execution thereon is stayed; 
  
 (vi) Landlords’ liens on fixtures located on premises leased by the Guarantor or one of its Material Subsidiaries in the ordinary
course of business; 
  
 (vii) Security Interests
arising in connection with contracts and subcontracts with or made at the request of the United States of America, any state thereof, or any department, agency or instrumentality of the United States or any state thereof for obligations not yet
delinquent; 
  
 (viii) Any Security Interest
arising by reason of deposits to qualify the Guarantor or a Subsidiary to conduct business, to maintain self-insurance, or to obtain the benefit of, or comply with, laws; 
  
 (ix) Any purchase money Security Interest claimed by sellers of goods on ordinary trade terms provided that
no financing statement has been filed to perfect such Security Interest; 
  
 (x) The extension of any Security Interest existing as of the date hereof to additions, extensions, or improvements to the property subject to the Security Interest which does not arise as a result of borrowing money
or the securing of Debt or other obligation or liability created, assumed or incurred after such date; 
  
 (xi) Security Interests on (A) property of a corporation or firm existing at the time such corporation is merged or consolidated with
the Guarantor or any Subsidiary or at the time of a sale, lease or other 

  

 12 

 
disposition of the properties of a corporation or a firm as an entirety (or the properties of a corporation or firm comprising a product line or line of
business, as an entirety) or substantially as an entirety to the Guarantor or a Subsidiary; or (B) property comprising machinery, equipment or real property acquired by the Guarantor or any of its Subsidiaries, which Security Interests shall
have existed at the time of such acquisition and secure obligations assumed by the Guarantor or such Subsidiary in connection with such acquisition; provided that the Debt or other obligations or liabilities secured by Security Interests of
the type described in this paragraph (xi) shall not either (x) have been created in anticipation of such merger, consolidation, sale, lease or other disposition or in contemplation of such acquisition or (y) at any time exceed an
aggregate amount equal to $300,000,000; 
  
 (xii)
Security Interests arising in connection with the sale, assignment or other transfer by the Guarantor or any Material Subsidiary of accounts receivable, lease receivables or other payment obligations (any of the foregoing being a
“Receivable”) owing to the Guarantor or any Subsidiary or any interest in any of the foregoing (together in each case with any collections and other proceeds thereof and any collateral, guaranties or other property or claims in
favor of the Guarantor or such Subsidiary supporting or securing payment by the obligor thereon of any such Receivables), in each case whether such sale, assignment or other transfer constitutes a “true sale” or a secured financing for
accounting, tax or any other purpose; provided that either (i) such sale, assignment or other transfer shall have been made as part of a sale of the business out of which the applicable Receivables arose, (ii) such sale, assignment
or other transfer is made in the ordinary course of business and is for the purpose of collection only, (iii) such sale, assignment or other transfer is made in connection with an agreement on the part of the assignee thereof to render
performance under the contract that has given rise to such Receivable, or (iv) in all other cases, the aggregate outstanding investment or claim held at any time by purchasers, assignees or other transferees of (or of interests in) such
Receivables (as determined by the Guarantor using any reasonable methods) shall not exceed an amount equal to 10% of the Consolidated total assets of the Guarantor and its Consolidated Subsidiaries at such time; 
  
 (xiii) Security Interests securing non-recourse obligations
in connection with leveraged or single-investor lease transactions; 
  
 (xiv) Security Interests securing the performance of any contract or undertaking made in the ordinary course of business (as such business is currently conducted) other than for the borrowing of money; 
  
 (xv) Any Security Interest granted by any Material
Subsidiary of the Guarantor; provided, that (i) the principal business and assets of such 

  

 13 

 
Material Subsidiary are located in Puerto Rico or are located outside of the United States, its other territories and possessions, (ii) the property of
such Material Subsidiary which is subject to such Security Interest is a parcel of real property, a manufacturing plant, manufacturing equipment, a warehouse, or an office building hereafter acquired, constructed, developed or improved by such
Material Subsidiary, and (iii) such Security Interest is created prior to or contemporaneously with, or within 120 days after (x) in the case of acquisition of such property, the completion of such acquisition and (y) in the case of
the construction, development or improvement of such property, the later to occur of the completion of such construction, development or improvement or the commencement of operations, use or commercial production (exclusive of test and start-up
periods) of such property, and such Security Interest secures or provides for the payment of all or any part of the acquisition cost of such property or the cost of construction, development or improvement thereof, as the case may be; 
  
 (xvi) Any Security Interest in deposits or cash equivalent
investments pledged with a financial institution for the sole purpose of implementing a hedging or financing arrangement commonly known as a “back-to-back” loan arrangement, provided in each case that neither the assets subject to such
Security Interest nor the Debt incurred in connection therewith are reflected on the Consolidated balance sheet of the Guarantor; and 
  
 (xvii) Any extension, renewal or refunding (or successive extensions, renewals or refundings) in whole or in part of any Debt or any other
obligation or liability secured by any Security Interest referred to in the foregoing paragraphs (i) through (xvii), provided that the principal amount of Debt or any other obligation or liability secured by such Security Interest shall not
exceed the principal amount outstanding immediately prior to such extension, renewal or refunding, and that the Security Interest securing such Debt or other obligation or liability shall be limited to the property which, immediately prior to such
extension, renewal or refunding secured such Debt or other obligation or liability and additions to such property. 
  
 Notwithstanding the foregoing provisions of this Section 12(i), the Guarantor and its Material Subsidiaries may, at any time, suffer to exist, issue, incur,
assume and guarantee Secured Debt (in addition to Secured Debt permitted to be secured under the foregoing paragraphs (i) through (xvii)), provided that the aggregate amount of such Secured Debt, together with the aggregate amount
of all other Secured Debt (not including Secured Debt permitted to be secured under the foregoing paragraphs (i) through (xvii)) of the Guarantor and its Material Subsidiaries which is suffered to exist, issued, incurred, assumed or
guaranteed after the date hereof, does not at such time exceed 5% of Consolidated Net Tangible Assets; and 
  

 14 

 (j) Not permit (i) Consolidated Adjusted Debt (which for purposes of this clause (i) only shall
exclude, up to and until February 16, 2006, an amount equal to seventy percent (70%) of the aggregate amount of senior notes due February 16, 2008 issued by the Guarantor on December 17, 2002, but only to the extent such amount
shall be treated as “debt” for purposes of generally accepted accounting principles) of the Guarantor and its Consolidated Subsidiaries at any time to exceed (ii) an amount equal to 55% of Consolidated Capitalization at such time;

  
 (k) (i) Not merge or consolidate with or into, or
Transfer Assets to, any Person, except that the Guarantor may (A) merge or consolidate with any corporation, including any Subsidiary, which is a U.S. Corporation and (B) Transfer Assets to any Subsidiary which is a U.S. Corporation;
provided, in each case described in clause (A) and (B) above, that (x) immediately after giving effect to such transaction, no event shall have occurred and be continuing which constitutes an event of default by the Guarantor
under this Guaranty or which with the giving of notice or lapse of time or both would constitute such an event of default and (y) in the case of any merger or consolidation to which the Guarantor shall be a party, the survivor of such merger or
consolidation shall be the Guarantor; and 
  
 (ii) Not permit any Material Subsidiary to merge or consolidate with or into, or Transfer Assets to, any Person unless, immediately after giving effect to such transaction, no event shall have occurred and be continuing which constitutes an
event of default by the Guarantor under this Guaranty or which with the giving of notice or lapse of time or both would constitute such an event of default. 
  
 For purposes of this Section 12(k): “Transfer Assets” means, when referring to the Guarantor, the conveyance, transfer, lease or other
disposition (whether in one transaction or in a series of transactions) of all or substantially all of the assets of the Guarantor or of the Guarantor and its Subsidiaries considered as a whole and means, when referring to a Subsidiary, the
conveyance, transfer, lease or other disposition (whether in one transaction or in a series of transactions) of all or substantially all of the assets of such Subsidiary; and “U.S. Corporation” means a corporation organized and
existing under the laws of the United States, any state thereof or the District of Columbia. 
  
 13. Subject to the provisions of Section 9 hereof, this Guaranty shall continue in effect until the Credit Agreement has terminated, the Guaranteed Obligations have been paid in full and the other
conditions of this Guaranty have been satisfied. 
  
 14. In
addition to and without limitation of any rights, powers or remedies of the Agent or the Banks under applicable law, any time after maturity of the Guaranteed Obligations, whether by acceleration or otherwise, the Agent or any of the Banks may, in
its sole discretion, with notice after the fact to the Guarantor (provided that any failure to give such notice shall not affect the validity of any such appropriation or application referred to herein) and regardless of the acceptance of any
security or collateral for the payment hereof, appropriate and apply toward the payment of any Guaranteed Obligations (a) any indebtedness due or to become due from the Banks to the 

  

 15 

 
Guarantor, and (b) any moneys, credits or other property belonging to the Guarantor (including all account balances, whether provisional or final and
whether or not collected or available) at any time held by or coming into the possession of any of the Agent or any Bank whether for deposit or otherwise. 
  
 15. The Guarantor agrees to pay all costs, fees and expenses (including reasonable attorneys’ fees and time charges, which attorneys may be employees
of the Agent or a Bank) incurred by the Banks in collecting or enforcing the obligations of the Guarantor under this Guaranty. 
  
 16. This Guaranty shall bind the Guarantor and its successors and assigns and shall inure to the benefit of the Agent, the Banks and their successors and
assigns. All references herein to the Banks shall for all purposes also include all assignees of any Bank. All references herein to the Borrower shall be deemed to include its successors and assigns including, without limitation, a receiver, trustee
or debtor in possession of or for the Borrower. 
  
 17. THIS
GUARANTY SHALL BE DEEMED TO HAVE BEEN MADE AT NEW YORK, NEW YORK, AND SHALL BE CONSTRUED AND THE RIGHTS AND LIABILITIES OF THE AGENT, THE BANKS AND THE GUARANTOR DETERMINED, IN ACCORDANCE WITH THE INTERNAL LAWS (WITHOUT REGARD TO CONFLICT OF LAWS
PROVISIONS) OF THE STATE OF NEW YORK. 
  
 18. Wherever possible,
each provision of this Guaranty shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Guaranty shall be prohibited by or invalid under such law, such provision shall be ineffective to the
extent of such prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions of this Guaranty. 
  
 19. Except as otherwise expressly provided herein, any notice required or desired to be served, given or delivered to any party hereto under this Guaranty
shall be in writing by facsimile, U.S. mail or overnight courier and addressed or delivered to such party (a) if to the Agent or the Banks, at their respective addresses set forth in the Credit Agreement, or (b) if to the Guarantor, at its
address indicated on Exhibit A hereto, or to such other address as the Agent, any of the Banks or the Guarantor designates to the other in writing. All notices by United States mail shall be sent certified mail, return receipt requested. All
notices hereunder shall be effective upon delivery or refusal of receipt; provided, that any notice transmitted by facsimile shall be deemed given when transmitted. 
  
 20. Upon (i) the occurrence and during the continuance of any Event of Default and (ii) the making of the request
or the granting of the consent specified by Section 7.01 of the Credit Agreement to authorize the Administrative Agent to declare the Advances due and payable pursuant to the provisions of Section 7.01 of the Credit
Agreement, each Bank (and each of its Affiliates) is hereby authorized at any time and 

  

 16 

 
from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or
final) at any time held and other indebtedness at any time owing by such Bank (or any of its Affiliates) to or for the credit or the account of the Guarantor against any and all of the obligations of the Guarantor now or hereafter existing under the
Loan Documents, irrespective of whether or not such Bank shall have made any demand under the Loan Documents and of whether or not such obligations may be matured. Each Bank agrees promptly to notify the Guarantor after any such set-off and
application made by such Bank, but the failure to give such notice shall not affect the validity of such set-off and application. The rights of each Bank under this Section are in addition to other rights and remedies (including, without
limitation, other rights of set-off) which such Bank may have. 
  
 [Signature Page Follows] 
  

 17 

 IN WITNESS WHEREOF, the Guarantor has entered into this Guaranty as of the 7th day of January, 2005.

  

			
	 BAXTER INTERNATIONAL INC.

		
	By:	 	 /s/ John Greisch

			
		
	Name:	 	 John Greisch 

			
		
	Title:	 	 CVP & CFO

 EXHIBIT A 
  
 Baxter International Inc. 
 One Baxter Parkway 
 Deerfield, Illinois 60015 
 Attention: Treasurer 
 Telephone: (847) 948-4310 
 Telecopy: (847) 948-4509 
  

 A-1 

 AMENDMENT NO. 1 TO GUARANTY 
  
 This Amendment No. 1 to Guaranty (this “Amendment”) is entered into as of June 1, 2005 by and between
Baxter International Inc., a Delaware corporation (the “Guarantor”) and J.P. Morgan Europe Limited, as administrative agent (the “Administrative Agent”). 
  
 RECITALS 
  
 A. Baxter Healthcare SA (the “Borrower”), the Administrative Agent, and the financial institutions named therein (the
“Banks”) are party to that certain Credit Agreement dated as of January 7, 2005 (the “Credit Agreement”). Unless otherwise specified herein, capitalized terms used in this Amendment shall have the meanings ascribed
to them by the Credit Agreement; and 
  
 B. In order to induce the
Administrative Agent and the Banks to enter into the Credit Agreement and extend credit thereunder to the Borrower, the Guarantor executed and delivered to the Administrative Agent, on behalf of itself and the Banks, that certain Guaranty dated as
of January 7, 2005 (the “Guaranty”); and 
  
 C.
Subject to the terms and conditions set forth herein, the Guarantor has requested that the Administrative Agent, on behalf of the Banks, modify the Guaranty, and the Administrative Agent has consented to such modification, as set forth below.

  
 NOW, THEREFORE, in consideration of the mutual execution
hereof and other good and valuable consideration, the parties hereto agree as follows: 
  
 1. Amendment to Guaranty. Upon the “Effective Date” (as defined below), the last paragraph of Section 11 of the Guaranty shall be deleted in its entirety and the following is substituted in lieu
thereof: 
  
 “The Guarantor agrees that the
foregoing representations and warranties shall be deemed to have been made by the Guarantor on the date of this Guaranty and on the date of each Borrowing Notice (except to the extent any such representation or warranty is stated to relate solely to
an earlier date and other than subsection (f) hereof) with respect to each Advance under the Credit Agreement on and as of such Borrowing Date.” 
  
 2. Representations and Warranties of the Guarantor. The Guarantor represents and warrants that: 
  
 (a) The execution, delivery and performance by the Guarantor
of this Amendment have been duly authorized by all necessary corporate action and that this Amendment is a legal, valid and binding obligation of the Guarantor enforceable against the Guarantor in accordance with its terms, except as the enforcement
thereof may be subject to the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors’ rights generally; 

 (b) Each of the representations and warranties contained in the Guaranty is true and
correct in all material respects on and as of the date hereof as if made on the date hereof except to the extent any such representation or warranty is stated to relate solely to an earlier date, in which case such representation or warranty was
true and correct on and as of such earlier date and other than Section 11(f) thereof; 
  
 (c) After giving effect to this Amendment, no event of default or event which would constitute an event of default but for the requirement
that notice be given or time elapse or both has occurred and is continuing under the Guaranty or the Credit Agreement. 
  
 3. Effective Date. Section 1 of this Amendment shall become effective (the “Effective Date”) upon the execution and delivery
hereof by the Borrower, the Administrative Agent and the percentage of Banks required by the Credit Agreement. 
  
 4. Reference to and Effect Upon the Guaranty. 
  
 (a) Except as specifically amended above, the Guaranty shall remain in full force and effect and is hereby ratified and confirmed. 
  
 (b) The execution, delivery and effectiveness of this Amendment shall not
operate as a waiver of any right, power or remedy of the Administrative Agent or any Bank under the Guaranty, nor constitute a waiver of any provision of the Guaranty, except as specifically set forth herein. Upon the effectiveness of this
Amendment, each reference in the Guaranty to “this Agreement”, “hereunder”, “hereof”, “herein” or words of similar import shall mean and be a reference to the Guaranty as amended hereby and each reference in
the Credit Agreement to “the Guaranty” or words of similar import shall mean and be a reference to the Guaranty as amended hereby. 
  
 5. Costs and Expenses. The Guarantor hereby affirms its obligation under Section 15 of the Guaranty to reimburse the Administrative Agent for all
reasonable out-of-pocket costs and expenses paid or incurred by the Administrative Agent in connection with the preparation, negotiation, execution and delivery of this Amendment, including but not limited to the reasonable attorneys’ fees and
out-of-pocket expenses of such attorneys for the Administrative Agent with respect thereto. 
  
 6. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS (AS DISTINGUISHED FROM THE CONFLICTS OF LAWS RULES) OF THE STATE OF NEW YORK. 
  
 7. Headings. Section headings in this Amendment are included herein
for convenience of reference only and shall not constitute a part of this Amendment for any other purposes. 
  

 - 2 - 

 8. Counterparts. This Amendment may be executed in any number of counterparts, each of which when
so executed shall be deemed an original but all such counterparts shall constitute one and the same instrument. 
  
 [Signature pages immediately follow] 
  
  

 - 3 - 

 IN WITNESS WHEREOF, the parties have executed this Amendment as of the date and year first above written.

  

			
	BAXTER INTERNATIONAL INC., as Guarantor
		
	By:	 	 /s/ Robert M. Davis

	Title: Corporate Vice President & Treasurer

  
 Signature Page to
Amendment No. 1 
 to Guaranty 

			
	THE ADMINISTRATIVE AGENT
	
	J.P. MORGAN EUROPE LIMITED,
	as Administrative Agent
		
	By:	 	 /s/ Barbara R. Marks

	Title: Vice President

  
 Signature Page to
Amendment No. 1 
 to Guaranty 

 Consented to by the following Banks as of June 1, 2005: 
  

					
	 Commitments:
	 	 
	 	 	THE BANKS
		
	33,000,000 Euro	 	J.P. MORGAN CHASE BANK
			
	 	 	By	 	 /s/ Barbara R. Marks

	 	 	Title: Vice President
		
	33,000,000 Euro	 	DEUTSCHE BANK AG NEW YORK BRANCH
			
	 	 	By	 	 /s/ Frederick Laird

	 	 	Title: Managing Director
		
	33,000,000 Euro	 	ABN AMRO BANK N.V.
			
	 	 	By	 	  

	 	 	Title:
		
	29,250,000 Euro	 	BANCO BILBAO VIZCAYA ARGENTARIA S.A.
			
	 	 	By	 	 /s/ John Martini

	 	 	Title: Vice President
			
	 	 	By	 	 /s/

	 	 	Title:

  
 Signature Page to
Amendment No. 1 
 to Guaranty 

					
	29,250,000 Euro	 	BANK OF AMERICA, N.A.
			
	 	 	By	 	 /s/ Peter D. Griffith

	 	 	Title: Senior Vice President
		
	29,250,000 Euro	 	THE BANK OF TOKYO-MITSUBISHI, LTD.
			
	 	 	By	 	 /s/ Andrew Trenouth

	 	 	Title: Deputy General Manager
		
	29,250,000 Euro	 	BNP PARIBAS
			
	 	 	By	 	 /s/ Ann M F Rix

	 	 	Title: Relationship Manager
			
	 	 	By	 	 /s/ S. Duranti

	 	 	Title: Relationship Manager
		
	29,250,000 Euro	 	CITIBANK N.A.
			
	 	 	By	 	 /s/ Christopher L. Snider

	 	 	Title: Vice President
		
	29,250,000 Euro	 	CREDIT SUISSE FIRST BOSTON BANK
			
	 	 	By	 	 /s/

	 	 	Title:
		
	29,250,000 Euro	 	DANSKE BANK
			
	 	 	By	 	 /s/ Martin Anderson

	 	 	Title: Associate Director

  
 Signature Page to
Amendment No. 1 
 to Guaranty 

					
	29,250,000 Euro	 	LLOYDS BANK
			
	 	 	By	 	  

	 	 	Title:
		
	29,250,000 Euro	 	SANPAOLO IMI BANK IRELAND PLC
			
	 	 	By	 	 /s/ Pier Carlo Arena

	 	 	Title: Managing Director
			
	 	 	By	 	 /s/ Franck Fleury

	 	 	Title: Deputy General Manager & Administrator
		
	29,250,000 Euro	 	SUMITOMO MITSUI BANKING CORPORATION
			
	 	 	By	 	  

	 	 	Title:
		
	29,250,000 Euro	 	UBS AG
			
	 	 	By	 	 /s/ T. Elliott

	 	 	Title: Director
			
	 	 	By	 	 /s/ J. Campbell

	 	 	Title: Director
		
	29,250,000 Euro	 	WACHOVIA BANK, N.A.
			
	 	 	By	 	 /s/ James Taylor

	 	 	Title: Vice President
		
	25,000,000 Euro	 	ALLIED IRISH BANK
			
	 	 	By	 	 /s/ Diarmuid O’Neill

	 	 	Title: Vice President

  
 Signature Page to
Amendment No. 1 
 to Guaranty 

					
	25,000,000 Euro	 	NATEXIS BANQUE POPULARIS
			
	 	 	By	 	 /s/ Gilbert Criado

	 	 	Title: Relationship Manager
			
	 	 	By	 	 /s/ Pierrick Tiret

	 	 	Title: Manager

  
 Signature Page to
Amendment No. 1 
 to Guaranty

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