Document:

EX-10.15

 Exhibit 10.15 

BAXALTA INCORPORATED AND SUBSIDIARIES 

SUPPLEMENTAL PENSION PLAN 

(Effective May 1, 2015) 

 TABLE OF CONTENTS 

 

							
	 ARTICLE I GENERAL
		 	1	  
	 1.1
		 Purpose
		 	1	  
	 1.2
		 Plan Administration; Source of Benefit Payments
		 	1	  
	 1.3
		 Limitation on Provisions
		 	1	  
	 1.4
		 Plan Supplements
		 	1	  
	 1.5
		 Former Participants in Baxter Plan
		 	1	  
		
	 ARTICLE II DEFINITIONS
		 	3	  
	 2.1
		 Accrued Benefit
		 	3	  
	 2.2
		 Beneficiary
		 	3	  
	 2.3
		 Benefit
		 	3	  
	 2.4
		 Benefit Committee
		 	3	  
	 2.5
		 Code
		 	3	  
	 2.6
		 Controlled Group
		 	3	  
	 2.7
		 Corporation
		 	3	  
	 2.8
		 Deferred Compensation Plan
		 	3	  
	 2.9
		 Effective Date
		 	3	  
	 2.10
		 ERISA
		 	3	  
	 2.11
		 Excess Benefit
		 	3	  
	 2.12
		 Non-Participating Employer
		 	3	  
	 2.13
		 Participant
		 	3	  
	 2.14
		 Participating Employer
		 	3	  
	 2.15
		 Pension Make-Whole Benefit
		 	4	  
	 2.16
		 Pension Plan
		 	4	  
	 2.17
		 Plan
		 	4	  
	 2.18
		 Points
		 	4	  
	 2.19
		 Qualified Benefit
		 	4	  
	 2.20
		 Section 409A
		 	4	  
	 2.21
		 Special Supplemental Benefit
		 	4	  
	 2.22
		 Termination of Employment
		 	4	  
		
	 ARTICLE III PARTICIPATION IN THE PLAN
		 	6	  
	 3.1
		 Eligibility
		 	6	  
	 3.2
		 No Contract of Employment
		 	6	  
		
	 ARTICLE IV AMOUNT AND PAYMENT OF PLAN BENEFITS
		 	7	  
	 4.1
		 Plan Benefits
		 	7	  
	 4.2
		 Excess Benefit
		 	7	  
	 4.3
		 Pension Make-Whole Benefit
		 	7	  
	 4.4
		 Special Supplemental Benefits
		 	7	  
	 4.5
		 Actuarial Equivalence
		 	8	  
	 4.6
		 Time and Form of Payment
		 	8	  
	 4.7
		 Death Benefits
		 	10	  
	 4.8
		 Withholding Taxes
		 	11	  
	 4.9
		 Compliance with Section 409A
		 	11	  
	 4.10
		 Correction of Errors
		 	11	  
		
	 ARTICLE V ADMINISTRATION
		 	12	  
	 5.1
		 Benefit Committee
		 	12	  
	 5.2
		 Benefit Committee Powers
		 	12	  

  
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 TABLE OF CONTENTS 

 

							
	 5.3
		 Effect of Benefit Committee Decisions
		 	13	  
	 5.4
		 Claims Procedure
		 	13	  
	 5.5
		 Action by Benefit Committee
		 	14	  
	 5.6
		 Indemnity
		 	14	  
		
	 ARTICLE VI AMENDMENT AND TERMINATION
		 	15	  
	 6.1
		 Amendment and Termination
		 	15	  
	 6.2
		 Successors and Assigns
		 	15	  
		
	 ARTICLE VII MISCELLANEOUS
		 	16	  
	 7.1
		 Unfunded Plan
		 	16	  
	 7.2
		 Unsecured General Creditor
		 	16	  
	 7.3
		 Nonassignability
		 	16	  
	 7.4
		 Not a Contract of Employment
		 	16	  
	 7.5
		 Protective Provisions
		 	16	  
	 7.6
		 Governing Law
		 	17	  
	 7.7
		 Severability
		 	17	  
	 7.8
		 Notice
		 	17	  
	 7.9
		 Successors
		 	17	  
	 7.10
		 Action by Corporation
		 	17	  
	 7.11
		 Effect on Benefit Plans
		 	17	  
	 7.12
		 Participant Litigation
		 	17	  

  
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 BAXALTA INCORPORATED AND SUBSIDIARIES 

SUPPLEMENTAL PENSION PLAN 

(Effective May 1, 2015) 

ARTICLE I 
 GENERAL 

1.1 Purpose. Baxalta Incorporated (the “Corporation”) hereby establishes the Baxalta and Subsidiaries Supplemental
Pension Plan (the “Plan”), to assist in providing retirement and other benefits to certain employees of the Corporation and its affiliates which are in addition to those provided under the Baxalta Incorporated and Subsidiaries Pension Plan
(the “Pension Plan”). The Plan is intended to constitute an unfunded plan maintained primarily for the purpose of providing deferred compensation to a select group of management or highly compensated employees for purposes of ERISA. 

 1.2 Plan Administration; Source of Benefit Payments. The authority to control and manage the operation and
administration of the Plan shall be vested in the Benefit Committee, as set forth in Article V. A Participating Employer’s obligation under the Plan shall be reduced to the extent that any amounts due under the Plan are paid from one or more
trusts, the assets of which are subject to the claims of general creditors of the Participating Employer or any affiliate thereof, provided, however, that nothing in the Plan shall require the Corporation or any Participating Employer to establish
any trust to provide benefits under the Plan. 
 1.3 Limitation on Provisions. Any benefit payable under the Pension
Plan shall be paid solely in accordance with the terms and conditions of the Pension Plan and nothing in the Plan shall operate or be construed in any way to modify, amend or affect the terms and provisions of the Pension Plan. 

1.4 Plan Supplements. The provisions of the Plan as applied to any Participating Employer or Participant may be modified and/or
supplemented from time to time by the adoption of one or more Supplements. In the event of any inconsistency between a Supplement and the Plan document, the terms of the Supplement shall govern; provided that no Supplement shall alter the provisions
of Section 4.9 or otherwise cause the Plan to be administered in a manner that does not comply with Section 409A. 
 1.5
Former Participants in Baxter Plan. As of the date of adoption of this Plan, the Corporation is a wholly-owned subsidiary of Baxter International Inc. (“Baxter”). Baxter has announced its plan to distribute at least 80.1
percent of the Corporation’s stock to the shareholders of Baxter in a spin-off transaction (the “Spin-Off”), on or about July 1, 2015. This Plan is being adopted by the Corporation in anticipation of the Spin-Off, and in
connection with the Corporation’s adoption of the Pension Plan in anticipation of the Spin-Off. In the event that the Spin-Off does not occur, this Plan will be null and void and no person shall have any rights or obligations hereunder. In
accordance with the Employee Matters Agreement between the Corporation and Baxter (the “Employee Matters Agreement”), the following provisions shall apply to persons who become employees of the Corporation or its subsidiaries in connection
with 

 
the Spin-Off and who, immediately prior to the Effective Date, had an accrued benefit under the Baxalta International and Subsidiaries Supplemental Pension Plan (the “Baxter SERP”):

  

	 	(a)	An employee whose employment is transferred, or is scheduled to be transferred, from Baxter to the Corporation, or one of its subsidiaries, on or before the Spin-Off Date shall become a Participant on the Effective
Date; 

  

	 	(b)	An employee who is identified as a Post-Distribution Baxalta Employee as defined in the Employee Matters Agreement shall become a Participant on the date on which he becomes an employee of the Corporation or one of its
subsidiaries; 

  

	 	(c)	The Plan shall assume the liability to pay all benefits accrued under the Baxter SERP on behalf of Participants described in (a) or (b) (“Baxter Participants”) as of the date on which they become a
Participant, and Baxter and the Baxter SERP shall be relieved of all liability to pay such benefits, and any election made by an Baxter Participant with respect to the payment of his benefit under the Baxter Plan shall apply to his benefit under
this Plan (including the portion accrued after he becomes a Participant); 

  

	 	(d)	All service and compensation earned by Baxter Participants as employees of Baxter prior to the date on which they become Participants shall be taken into account under this Plan to the same extent it would have been
taken into account under the Baxter SERP; 

  

	 	(e)	Notwithstanding (a) above, if a Baxter Participant becomes a Participant on the Effective Date, and terminates employment prior to the Spin-Off Date, and such Baxter Participants’ benefit under the Pension
Plan is transferred back to the Baxter International Inc. and Subsidiaries Pension Plan in accordance with Employee Matters Agreement, such Baxter Participant shall cease to be a Participant and shall have no right to any benefit under this Plan;
and 

  

	 	(f)	To the maximum extent permitted by Treas. Reg. §1.409A-1(h)(4), a Baxalta Participant shall not be considered to have incurred a Termination of Employment for purposes of the Plan or a separation from service as
defined in Section 409A solely as a result of the transfer describe above. 

  
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 ARTICLE II 

DEFINITIONS 
 2.1 Accrued
Benefit. Accrued Benefit shall have the meaning ascribed to such term under the Pension Plan. 
 2.2 Beneficiary. A
Participant’s Beneficiary shall be the Participant’s beneficiary under the Pension Plan (or the person who would be the Participant’s beneficiary under the Pension Plan if the Participant’s Qualified Benefit were paid in the same
form and at the same time as his Benefit hereunder). 
 2.3 Benefit. A Participant’s Benefit means the sum of the
Participant’s Excess Benefit, Make-Whole Benefit, and Special Supplemental Benefit, if any, unless otherwise provided. 
 2.4
Benefit Committee. Benefit Committee shall have the meaning ascribed to such term under the Pension Plan. 
 2.5 Code. Code
means the Internal Revenue Code of 1986, as amended. 
 2.6 Controlled Group. Controlled Group means the Corporation and all
other business entities, whether or not incorporated, which, together with the Corporation, would be considered a single employer under section 414(b) or (c) of the Code. 

2.7 Corporation. Corporation has the meaning ascribed to such term in Section 1.1. 

2.8 Deferred Compensation Plan. Deferred Compensation Plan means the Baxalta Incorporated and Subsidiaries Deferred Compensation
Plan. 
 2.9 Effective Date. Effective Date means May 1, 2015. 

2.10 ERISA. ERISA means the Employee Retirement Income Security Act of 1974, as amended. 

2.11 Excess Benefit. Excess Benefit means the benefit determined under Section 4.2. 

2.12 Non-Participating Employer. A Non-Participating Employer means any Employer which is not a Participating Employer. 

2.13 Participant. Participant means an employee of a Participating Employer who is eligible for an Excess Benefit, Pension
Make-Whole Benefit or Special Supplemental Benefit, as set forth in Section 3.1. 
 2.14 Participating Employer.
Participating Employer means the Corporation and any affiliate of the Corporation, which is a Participating Employer under the Pension Plan. 

  
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 2.15 Pension Make-Whole Benefit. Pension Make-Whole Benefit means the benefit determined
under Section 4.3. 
 2.16 Pension Plan. Pension Plan has the meaning ascribed to such term in Section 1.1. 

2.17 Plan. Plan has the meaning ascribed to such term in Section 1.1. 

2.18 Points. A Participant’s Points shall be equal to the number of Points the Participant has accumulated as of any date under
the terms of the Pension Plan. 
 2.19 Qualified Benefit. Qualified Benefit means the Participant’s actual Accrued Benefit
payable under the Pension Plan. 
 2.20 Section 409A. Section 409A means Section 409A of the Internal Revenue Code of
1986, as enacted by the American Jobs Creation Act of 2004 and as subsequently amended, and including all Treasury Regulations and other authoritative guidance issued pursuant thereto. 

2.21 Special Supplemental Benefit. Special Supplement Benefit means the benefit determined under Section 4.4. 

2.22 Termination of Employment. A Termination of Employment occurs on the date on which a 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 Benefit Committee as required to comply with 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. 

  
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	 	(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 2.22, 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. 

  
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 ARTICLE III 

PARTICIPATION IN THE PLAN 

3.1 Eligibility. No Employee who was not a Baxter Participant shall be eligible to participate in the Plan, except that the
Benefit Committee (or the person or persons delegated such authority by the Benefit Committee), in its sole discretion, may determine the individuals, if any, who shall be eligible for Special Supplemental Benefits pursuant to Section 4.4.

 3.2 No Contract of Employment. The Plan does not constitute a contract of employment, and participation in the Plan
will not give any employee the right to be retained in the employ of the Corporation or any Participating Employer nor any right or claim to any benefit under the Plan, unless such right or claim has specifically accrued under the terms of the
Plan. 

  
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 ARTICLE IV 

AMOUNT AND PAYMENT OF PLAN BENEFITS 

4.1 Plan Benefits. Eligible Participants under the Plan shall receive an Excess Benefit, Pension Make-Whole Benefit or Special
Supplemental Benefit, in the amount and payable at the times set forth in the following provisions of this Article 4. The amount of a Participant’s Excess Benefit and Pension Make-Whole Benefit shall be calculated as if the Participant’s
Qualified Benefit had commenced as of the same date, and in the same form, as the Participant’s Excess Benefit and Pension Make-Whole Benefit, regardless of when and in what form the Qualified Benefit is paid, and no adjustment shall be made to
the Excess Benefit or Pension Make-Whole Benefit when the Qualified Benefit commences. To the extent a Supplemental Benefit is defined in whole or part by reference to the Qualified Benefit, the preceding sentence shall apply unless the terms of the
Supplemental Benefit clearly provide for a different method of calculation. 
 4.2 Excess Benefit. As of any date, an
eligible Participant’s “Excess Benefit” under the Plan shall be an amount equal to the Qualified Benefit the Participant would be eligible for under the Pension Plan as of such date if such Qualified Benefit were determined without
regard to limitations of Section 415 and Section 401(a)(17) of the Code, reduced by the Participant’s Qualified Benefit as of such date. A Participant’s Excess Benefit, if any, shall be paid at the time and in the form provided
in Section 4.6.  
 4.3 Pension Make-Whole Benefit. As of any date, an eligible Participant’s “Pension
Make-Whole Benefit” under the Plan shall be an amount equal to: 
  

	 	(a)	the Qualified Benefit the Participant would be eligible for under the Pension Plan as of such date if such Qualified Benefit were determined (i) without exclusion of compensation deferred under the Deferred
Compensation Plan, and (ii) without regard to the limitations of Code Sections 415 and 401(a)(17), 

 reduced by

  

	 	(b)	the sum of (i) the Participant’s actual Qualified Benefit under the Pension Plan as of such date, and (ii) the amount of any Excess Benefit determined under Section 4.2 without regard to such
deferred compensation. 

 A Participant’s Pension Make-Whole Benefit, if any, shall be paid at the time and in the form provided in
Section 4.6. 
 4.4 Special Supplemental Benefits. The amount, if any, of a Participant’s “Special Supplemental
Benefit” shall be determined by the Benefit Committee, shall be subject to such terms and conditions as the Benefit Committee may establish, and shall be payable at the times and in the form determined by the Benefit Committee. The time and
form of payment of any Special Supplemental Benefit shall be specified by the Benefit Committee at the time the Benefit Committee establishes the Participant’s right to the Special Supplemental Benefit. The Benefit Committee, in its sole
discretion, may delegate its authority under this Section 4.4 to any person or persons in connection with the award of Special Supplemental Benefits to a particular  

  
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Participant, a class of Participants, or all Participants. All rights to Special Supplemental Benefits shall be set forth in writing, which writing may include an employment contract or similar
agreement, and a copy of all actions taken by the Benefit Committee or its delegate with respect to Special Supplemental Benefits under the Plan shall be sent to the Corporate Counsel in charge of the Company’s employee benefit plans. Anything
else contained herein to the contrary notwithstanding, no person shall have any right to a Special Supplemental Benefit in the absence of a written instrument setting forth the terms of such Special Supplemental Benefit. 

4.5 Actuarial Equivalence. To the extent applicable, the benefits payable to any person under the Plan shall be determined by
applying the appropriate interest rate and other actuarial assumptions set forth in the Pension Plan. 
 4.6 Time and Form of
Payment. 
  

	 	(a)	The Benefit of a Participant shall become payable upon the later of the occurrence of the first day of the month following the Participant’s Termination of Employment or, in the case of a Baxter Participant who was
a participant in the Baxter SERP prior to December 31, 2008, and elected a specified payment date under the Baxter SERP, such elected date (in either case, the “Commencement Date”). Such Benefit shall be paid in the following form:

  

	 	(i)	If the actuarial present value of the Benefit as of the Commencement Date does not exceed $50,000, the Benefit shall be paid in a lump sum equal to the actuarial present value, which payment shall be in full
satisfaction of the Participant’s right to the Benefit. Such payment shall be made not later than 90 days following the Commencement Date, subject to paragraph (d). For purposes of determining whether the present value of the Benefit exceeds
$50,000, any Special Supplemental Benefit shall be included if and only if the terms of the agreement creating the Special Supplemental Benefit provided for the Special Supplemental Benefit to be paid at the same time and in the same form as the
remainder of the Benefit not later the date the Participant first had a legally binding right to the Special Supplemental Benefit, and in such event the Special Supplemental Benefit shall be included notwithstanding any change in the terms of the
Special Supplemental Benefit after such date. If the preceding sentence does not apply, the Special Supplemental Benefit shall not be included in determining whether the present value exceeds $50,000, and the provisions of this paragraph
(a) shall be applied separately to the Special Supplemental Benefit. 

  

	 	(ii)	If the actuarial present value of the Benefit exceeds $50,000 as of the Commencement Date, Benefit shall be paid in a monthly life annuity of the type set forth below. The first annuity payment shall be paid, subject to
paragraph (c), on the first day of the month following the first month beginning with month that includes the Commencement Date in which the Participant’s has accumulated at least 65 Points (the “Annuity Start Date.”)

  
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	 	(A)	If the Participant’s Qualified Benefit commences as of or prior to the Annuity Start Date, his Benefit shall be paid in the same form of annuity as the Qualified Benefit. 

 

	 	(B)	If the Participant’s Qualified Benefit has not yet commenced by the Annuity Start Date, and the Participant is not married on the Annuity Start Date, his Benefit shall be paid in an annuity for the life of the
Participant with no survivor benefits. 

  

	 	(C)	If the Participant’s Qualified Benefit has not yet commenced by the Annuity Start Date, and the Participant is married on Annuity Start Date, his Benefit shall be paid in an annuity that pays an actuarially reduced
benefit to the Participant during the Participant’s life, and pays 50% of such annuity to the Participant’s spouse for the balance of the spouse’s life if the spouse survives the Participant. No adjustment to such annuity shall be
made if the Participant’s spouse predeceases the Participant or the Participant and this spouse are divorced after the Annuity Start Date. 

  

	 	(D)	The Benefit Committee may permit a Participant to elect a different form of annuity that is treated as a life annuity for purposes of Section 409A. Anything else contained herein to the contrary notwithstanding,
all forms of life annuity shall be actuarially equivalent as defined in Section 409A, and any procedures adopted by the Benefit Committee to permit Participant’s to elect different forms of annuity shall comply with the requirements of
Section 409A. 

  

	 	(b)	If a Participant’s Commencement Date is the first day of the month following his Termination of Employment, and the Participant is a specified employee as hereinafter defined on the Commencement Date, payment of
his Benefit shall be deferred until six months after his Termination of Employment, as described below. If payment is to be made in a lump sum (based on actuarial present value as of the Commencement Date), the lump sum shall be paid on the first
day of the seventh month following the month that includes the Termination of Employment, and the amount shall be recalculated as of such date even if such recalculated amount exceeds $50,000. If payment is to be made in an annuity, the first
annuity payment shall be paid on the later of the first day of the seventh month following the month that includes the Termination of Employment or the Annuity Start Date, but if such date is later than the Annuity Start Date the annuity payments
shall be calculated as of the Annuity Start Date, and the Participant shall receive a supplemental payment, with or following the first annuity payment, equal to the sum, without interest, of the annuity payments that would have been paid prior to
such date but for this paragraph (b). For purposes of this paragraph (b), the term “specified employee” shall have the same meaning as in the Deferred Compensation Plan. 

  
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	 	(c)	Anything else contained herein to the contrary notwithstanding, the Benefit Committee at any time in its sole discretion may distribute to any Participant the entire actuarial present value of his Benefit (including any
Special Supplemental Benefit) in a single lump sum in full satisfaction of his rights under the Plan, provided that the entire interest of the Participant in all other plans required to be aggregated with the Plan pursuant to Treas. Reg.
§1.409A-1(c)(2) is also distributed and that the total amount distributed does not exceed the limit in effect under Section 402(g) of the Code at the time of distribution. 

4.7 Death Benefits. 
  

	 	(a)	If a Participant whose Benefit is payable in an annuity dies after the Annuity Start Date, the only death benefit payable shall be the survivorship benefit, if any, payable under the applicable form of annuity.

  

	 	(b)	If a Participant whose Benefit is payable in a lump sum dies after his Commencement Date but before actual payment of his Benefit (including but not limited to a Participant whose benefit is deferred pursuant to
Section 4.6(d)), the lump sum payment shall be made to his Beneficiary as soon as practical, but not more than 90 days after the date of his death. 

  

	 	(c)	If a Participant either dies prior to his Commencement Date, or after his Commencement Date but prior to his Annuity Start Date if his Benefit is payable as an annuity, and if his Beneficiary is entitled to a
pre-retirement survivor annuity under the Pension Plan (or would be entitled to a preretirement survivorship benefit but for the fact that payment of his Qualified Benefit had commenced at the time of his death), his Beneficiary shall be entitled to
a preretirement survivor benefit (the “Survivor Benefit”) under the terms of this paragraph (c). The Survivor Benefit shall be paid on the first day of the first month following the month that includes the Participant’s death in which
the Participant either had completed 65 Points, or would have completed 65 Points had he not died. The Survivor Benefit shall be paid in a single lump sum equal to the actuarial present value of the excess of (i) the amount of the preretirement
survivor annuity that would be paid to the Beneficiary under the Pension Plan if the Participant’s Benefit were calculated with the adjustments described in Sections 4.2 and 4.3 (and included the Special Supplemental Benefit, if applicable),
over (ii) the amount of pretirement survivor annuity actually payable under the Pension Plan, in both cases calculated as if payment of the preretirement survivor annuity under the Pension Plan commenced on the date of payment of the Survivor
Benefit. 

  

	 	(d)	 Notwithstanding the foregoing, if a Participant whose benefit is paid in the form of an annuity and whose Benefit is deferred pursuant to
Section 4.6(b) dies after his Annuity Start Date but before the date to which payment of his benefit is deferred, his Beneficiary shall not receive a Survivor Benefit under paragraph (c), but shall instead receive whatever survivorship benefits
are provided by the Participant’s form of annuity, determined as if payment had commenced on the 

  
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Annuity Start Date, and in addition shall receive a payment equal to the annuity payments that would have been paid prior to the Participant’s death but for the requirement of
Section 4.6(b). 

  

	 	(e)	Except as otherwise provided in this Section 4.7, no person shall receive any form of death or survivorship benefits following the death of a Participant, whether before or after his Commencement Date.

 4.8 Withholding Taxes. Benefits and payments under the Plan are subject to the withholding of all applicable
taxes. Notwithstanding any provision of the Plan to the contrary, a Participant’s initial benefit payment under the Plan shall be in an amount sufficient pay any remaining employment tax required to be withheld with respect to Plan benefits. To
the extent such amount is in excess of the first distribution that would otherwise have been made based on the form of benefit elected by the Participant, subsequent payments will not begin until the aggregated payments that would have been made
under the form of benefit elected by the Participant exceed the amount of such initial distribution. 
 4.9 Compliance with
Section 409A. Anything else in this Plan to the contrary notwithstanding, the Plan is intended to comply in all regards with Section 409A and shall be so construed and administered. Without limiting the generality of the preceding
sentence, (i) in no event shall any benefit under the Plan be paid at any time other than under the terms of the Plan as in effect on the date on which the Participant first acquires a legal right to such benefit (whether or not vested),
whether by amendment of the Plan, exercise of the Benefit Committee’s discretion, or otherwise, except as permitted by Section 409A, and (ii) in the event that the Benefit Committee, in its sole discretion, determines that any time or
form of payment provided for in the Plan, or the existence of a right to elect a time or form of distribution (including without limitation the payment of benefits in the same form elected by a Participant under the Pension Plan), 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, such provision shall to the maximum extent permitted by law be deemed amended to the extent
required to comply with Section 409A, or the Plan shall be construed as if such provision were not included therein. The restrictions of Section 409A shall apply to the entire benefit of a Participant if any portion of the
Participant’s benefit was accrued or vested on or after January 1, 2005, but shall not apply to a Participant whose entire benefit under the Baxter SERP was accrued and vested prior to such date, and who has accrued no additional benefit
under this Plan.  
 4.10 Correction of Errors. The Benefit Committee shall have the authority to correct any error in
the calculation of Benefits, regardless of the reason for the error and regardless of whether payment of the Benefit 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 Benefit or other 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 Benefit 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.  

  
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 ARTICLE V 

ADMINISTRATION 
 5.1 Benefit
Committee. The Plan is administered by the Benefit Committee, which is the “administrator” for purposes of Section 3(16)(A) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). Prior to the
Spin-Off Date, the Administrative Committee of Baxter shall be the Benefit Committee. Effective as of the Spin-Off Date, the Benefit Committee shall consist of such persons as the Compensation Committee of the Corporation’s Board of Directors
(or such other committee or person as the Board of Directors may designate) may appoint from time to time. Members of the Benefit Committee may be Participants in the Plan. 

5.2 Benefit Committee Powers. The Benefit 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 Benefit 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 Benefit 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, 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 Benefit 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 Benefit 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 Benefit Committee or
Baxter. 

  

	 	(e)	 Plan Amendments. The Benefit Committee has the power and right, at any time, to amend or supplement the Plan. Notwithstanding the foregoing
provisions of this Section 5.2(e), no amendment of the Plan shall reduce the benefit to which a 

  
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Participant would be entitled if he had terminated employment immediately prior to the adoption of the resolution amending the Plan; provided, however, the Benefit Committee or Corporation, as
applicable, may amend the Plan at any time to take effect retroactively or otherwise, as deemed necessary or advisable for purposes of conforming the Plan to any present or future law, regulations or rulings relating to plans of this or a similar
nature. 

 5.3 Effect of Benefit Committee Decisions. Any ruling, regulation, procedure or decision of the Benefit
Committee will be conclusive and binding upon all persons affected by it. There will be no appeal from any ruling by the Benefit Committee which is within its authority, except as provided in Section 5.4 below. When making a determination or a
calculation, the Benefit 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. 

5.4 Claims Procedure. Each person entitled to benefits under the Plan (the “Applicant”) must submit a written claim for
benefits to the Benefit 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 payment of the distribution commences.
The Benefit Committee may, in its sole discretion 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 Benefit 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 5.4. Such notice will further describe that the Applicant has a right to bring a civil action
under Section 502 of ERISA if his 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 Benefit Committee a response to his claim within the time periods specified in the provisions described above may request a review of the denied claim by written
request to the Benefit Committee within 60 days after receiving notice of the denial. If such a request is made, the Benefit 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. 

  
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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. 
 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 filing a claim for benefits and exhausting all of his
rights under this Section 5.4, or more than 180 days after he receives the Benefit Committee’s decision on review of the denial of his claim. Although not required to do so, an Applicant, or his 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 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. 

5.5 Action by Benefit Committee. Action by the Benefit Committee will be subject to the following special rules: 

 

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

  

	 	(c)	Resolving Deadlocks. If there is an equal division among the Benefit 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. 

 5.6 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 Benefit 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. 

  
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 ARTICLE VI 

AMENDMENT AND TERMINATION 

6.1 Amendment and Termination. As indicated in Section 5.2 above, the Benefit Committee may, at any time, amend or
supplement the Plan. The Board of Directors of the Corporation may, at any time, terminate the Plan. Notwithstanding the foregoing provisions of Sections 5.2 or 6.1, neither an amendment or termination of the Plan shall reduce the benefit to which a
Participant would be entitled if he had terminated employment immediately prior to the adoption of the resolution amending or terminating the Plan; provided, however, the Benefit Committee or Corporation, as applicable, may amend or terminate the
Plan at any time to take effect retroactively or otherwise, as deemed necessary or advisable for purposes of conforming the Plan to any present or future law, regulations or rulings relating to plans of this or a similar nature. Upon termination of
the Plan, all benefits accrued through the date of termination shall be paid as provided herein; provided that the Benefit Committee may, to the extent permitted under Section 409A, provide for the payment of actuarially equivalent lump sums in
full satisfaction of some or all of the accrued benefits. 
 6.2 Successors and Assigns. The obligations of the
Corporation and the Participating Employers under the Plan shall be binding upon any assignee or successor in interest thereto. 

  
 - 15 - 

 ARTICLE VII 

MISCELLANEOUS 
 7.1
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 Participating 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 a Participating Employer, are uniquely informed as to such Participating Employer’s operations and have the ability to affect materially Participating
Employer’s profitability and operations. 
 7.2 Unsecured General Creditor. In the event of a Participating 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 Participating 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 Participating Employer (the “Policies”) greater than those of any other unsecured general
creditors. In that event, any and all of the Participating Employer’s assets and Policies will be, and remain, the general, unpledged, unrestricted assets of Participating Employer. Participating Employer’s obligation under the Plan will
be merely that of an unfunded and unsecured promise of Participating Employer to pay money in the future. 
 7.3 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. 

7.4 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 Participating Employer, and neither the Participant nor the Participant’s beneficiary will have any rights against such Participant’s Participating 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 Participating Employer or to interfere with the right of such Participating Employer to discipline or
discharge him or her at any time. 
 7.5 Protective Provisions. A Participant will cooperate with the Corporation by furnishing any
and all information requested by the Corporation, in order to facilitate the payment of benefits hereunder. 

  
 - 16 - 

 7.6 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. 
 7.7 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 the
Corporation 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. 
 7.8 Notice. Any notice or filing required or permitted to be
given to the Corporation or the Benefit 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 Benefit Committee, or to the Corporation’s Chief Financial
Officer and, if mailed, will be addressed to the principal executive offices of the Corporation. 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 the Corporation. 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. 
 7.9 Successors. The obligations of the Corporation and the Participating
Employers under the Plan shall be binding upon any assignee or successor in interest thereto. The provisions of this Plan will bind and inure to the benefit of the Corporation and the Participating Employers, 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 the Corporation, and successors of any such corporation or other business entity. 
 7.10 Action by Corporation. Except
as otherwise provided herein, any action required of or permitted by the Corporation under the Plan will be by resolution of the Compensation Committee or any person or persons authorized by resolution of the Compensation Committee. 

7.11 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 Participating Employer. The treatment of such amounts under other employee benefit plans will be determined pursuant to the provisions of such plans. 

7.12 Participant Litigation. In any action or proceeding regarding the Plan, employees or former employees of the Corporation or a
Participating 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 

  
 - 17 - 

 
this Plan. To the extent permitted by law, if a legal action is begun against the Corporation, a Participating Employer, the Benefit Committee, or any member of the Benefit 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 the Corporation,
each Participating Employer, the Benefit Committee and each member thereof, and their respective agents from any and all liability and obligation not involving willful misconduct or gross neglect. 

*        *        * 

IN WITNESS WHEREOF, the undersigned has caused this Plan to be executed this 29th day of June, 2015. 

 

			
	BAXALTA INCORPORATED
	BENEFIT COMMITTEE
		
	By:		 /s/ Salvatore Dadouche

			Salvatore Dadouche
			Benefit Committee Member

  
 - 18 -EX-10.16

 Exhibit 10.16 

SEVERANCE AGREEMENT 
 THIS
AGREEMENT, dated as of July 1, 2015 (the “Effective Date”), is made by and between Baxalta Incorporated, a Delaware corporation (the “Company”), and
                    (the “Executive”). 

WHEREAS, the Company considers it essential to the best interests of its stockholders to foster the continued employment of key management
personnel; and 
 WHEREAS, the Board recognizes that, as is the case with many publicly held corporations, the possibility of a Change in
Control exists and that such possibility, and the uncertainty and questions which it may raise among management, may result in the departure or distraction of management personnel to the detriment of the Company and its stockholders; 

WHEREAS, the Board has determined that appropriate steps should be taken to reinforce and encourage the continued attention and dedication of
members of the Company’s management, including the Executive, to their assigned duties without distraction in the face of potentially disturbing circumstances arising from the possibility of a Change in Control; 

[WHEREAS, the Executive is currently party to a Severance Agreement with Baxter International Inc. (the “Baxter Agreement”);] 

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the Company and the Executive hereby agree as
follows: 
 1. Defined Terms. The definitions of capitalized terms used in this Agreement are provided in the last Section hereof.

 2. Term of Agreement. 

2.1 Subject to Section 2.2, the Term of this Agreement shall commence on the Effective Date and shall continue in effect through the
second anniversary of the Effective Date; provided, however, that commencing on the first anniversary of the Effective Date and on each anniversary thereafter, the Term shall automatically be extended for one additional year unless,
not later than one year before the end of the then-existing Term, the Company or the Executive shall have given notice not to extend the Term; and further provided, however, that if a Change in Control shall have occurred during
the Term, the Term shall expire no earlier than twenty-four (24) months beyond the date on which such Change in Control occurred. 

2.2 The Company may at any time, other than during a Potential Change in Control Period or during the twenty-four month period following a
Change in Control, terminate the Term of this Agreement on not fewer than thirty (30) days written notice to the Executive, provided, that either (A) the Company simultaneously terminates the term of all other severance agreements
then in effect with similarly situated senior executives, or (B) as a result of a change in Executive’s title or status, the Executive is no longer a member of the group of senior executives who are parties to severance agreements, and
Executive is also designated as a participant in the Company’s severance plan, if any, applicable to the Executive’s new title or status, in any case as reasonably determined by the Board. 

 [2.3 The Baxter Agreement is hereby terminated as of the Effective Date, and neither the
Executive, the Company, nor Baxter International Inc. shall have any rights or obligations under the Baxter Agreement. It is agreed that the transactions pursuant to which Baxter International Inc. transferred its biopharmaceutical business to the
Company and distributed the stock of the Company to its shareholders did not constitute a Change in Control, a Potential Change in Control, or the commencement of a Potential Change in Control Period, or in itself constitute Good Reason, for
purposes of either the Baxter Agreement or this Agreement.] 
 3.1 Company’s Covenants Summarized. In order to induce the
Executive to remain in the employ of the Company and in consideration of the Executive’s covenants set forth in Section 4 hereof, the Company agrees, under the conditions described herein, to pay the Executive the Severance Payments and
the other payments and benefits described herein. No Severance Payments shall be payable under this Agreement unless there shall have been (or, under the terms of the second sentence of Section 6.1 hereof, there shall be deemed to have been) a
termination of the Executive’s employment with the Company following a Change in Control and during the Term, all subject to the terms and conditions set forth herein and provided that such termination of employment constitutes a
“separation from service” for purposes of Section 409A of the Code. This Agreement shall not be construed as creating an express or implied contract of employment and, except as otherwise agreed in writing between the Executive and
the Company, the Executive shall not have any right to be retained in the employ of the Company. 
 4. The Executive’s
Covenants. The Executive agrees that, subject to the terms and conditions of this Agreement, in the event of a Potential Change in Control during the Term, the Executive will remain in the employ of the Company until the earliest of (i) the
last day of the Potential Change in Control Period, (ii) the date of a Change in Control, (iii) the date of termination by the Executive of the Executive’s employment for Good Reason or by reason of death, Disability or Retirement, or
(iv) the termination by the Company of the Executive’s employment for any reason. 
 5. Compensation Other Than Severance
Payments. 
 5.1 Following a Change in Control and during the Term, during any period that the Executive fails to perform the
Executive’s full-time duties with the Company as a result of incapacity due to physical or mental illness, the Company shall pay the Executive’s full salary to the Executive at the rate in effect at
the commencement of any such period, together with all compensation and benefits payable to the Executive under the terms of any compensation or benefit plan, program or arrangement maintained by the Company during such period (other than any
disability plan), until the Executive’s employment is terminated by the Company for Disability. 

  
 - 2 - 

 5.2 If the Executive’s employment shall be terminated for any reason following a Change in
Control and during the Term, the Company shall pay the Executive’s full salary to the Executive through the Date of Termination at the rate in effect immediately prior to the Date of Termination or, if higher, the rate in effect immediately
prior to the first occurrence of an event or circumstance constituting Good Reason, together with all compensation and benefits payable to the Executive through the Date of Termination under the terms of the Company’s compensation and benefit
plans, programs or arrangements as in effect immediately prior to the Date of Termination or, if more favorable to the Executive, as in effect immediately prior to the first occurrence of an event or circumstance constituting Good Reason. 

5.3 If the Executive’s employment shall be terminated for any reason following a Change in Control and during the Term, the Company shall
pay to the Executive the Executive’s normal post-termination compensation and benefits as such payments become due. Such post-termination compensation and benefits
shall be determined under, and paid in accordance with, the Company’s retirement, insurance and other compensation or benefit plans, programs and arrangements as in effect immediately prior to the Date of Termination or, if more favorable to
the Executive, as in effect immediately prior to the occurrence of the first event or circumstance constituting Good Reason. 
 5.4 Upon the
occurrence of a change in the ownership or effective control of the Company or in the ownership of a substantial portion of the assets of the Company (in any case within the meaning of Section 409A of the Code), notwithstanding any provision of
any non-qualified defined contribution deferred compensation plans to the contrary, in lieu of any other benefit under such plans attributable to a year commencing after the date of this Agreement [or to any benefits that represent amounts
originally deferred under the Baxter International Inc. and Subsidiaries Deferred Compensation Plan (but only to the extent provided in Section 5.4 of the Baxter Agreement)], the Company shall pay to the Executive a lump sum amount, in cash,
equal to the then present value of the deferred compensation otherwise payable to the Executive pursuant to the terms of such plans. The payments required by this Section 5.4 shall be made not later than the fifth day following the date of such
change in ownership or control of the Company or change in asset ownership. The provisions of this Section 5.4 shall survive the termination of this Agreement. 

5.5 For the two-year period commencing immediately following a Change in Control, the Company agrees: (A) to continue in effect any
compensation plan in which the Executive participates immediately prior to the Change in Control which is material to the Executive’s total compensation, including but not limited to the Company’s equity-based long term incentive plans and
annual incentive plans, or any substitute plans adopted prior to the Change in Control, unless an equitable arrangement (embodied in an ongoing substitute or alternative plan) has been made with respect to such plan; (B) to continue the
Executive’s participation in the plans described in the foregoing paragraph (A) (or in such substitute or alternative plan) on a basis not materially less favorable, both in terms of the amount or timing of payment of benefits provided and
the level of the Executive’s participation relative to other participants, as existed immediately prior to the Change in Control; and (C) to continue to provide the Executive with benefits substantially similar to those enjoyed by the
Executive under any of the Company’s pension, savings, life insurance, medical, health and accident, or disability plans in which the Executive was participating immediately prior to the Change in Control (except for across the board changes
similarly affecting all senior executives of the Company and 

  
 - 3 - 

 
all senior executives of any Person in control of the Company, or any Person to whom the Company’s business is transferred pursuant to such Change in Control), not to take any other action
which would directly or indirectly materially reduce any of such benefits or deprive the Executive of any material fringe benefit enjoyed by the Executive at the time of the Change in Control, and to provide the Executive with the number of paid
vacation days to which the Executive is entitled on the basis of years of service with the Company in accordance with the Company’s normal vacation policy in effect at the time of the Change in Control. 

6. Severance Payments. 

6.1 If the Executive’s employment is terminated following a Change in Control and during the Term (provided that such termination of
employment constitutes a “separation from service” within the meaning of Section 409A of the Code), other than (A) by the Company for Cause, (B) by reason of death or Disability, or (C) by the Executive without Good
Reason, then the Company shall pay the Executive the amounts, and provide the Executive the benefits, described in this Section 6.1 (“Severance Payments”), in addition to any payments and benefits to which the Executive is entitled
under Section 5 hereof, provided that the Executive shall have properly executed, within forty-five (45) days of his or her Date of Termination, and not revoked a customary release of claims and covenant not to sue in a form reasonably
acceptable to the Company. For purposes of this Agreement, the Executive’s employment shall be deemed to have been terminated following a Change in Control by the Company without Cause or by the Executive with Good Reason, if (i) the
Executive’s employment is terminated by the Company without Cause prior to a Change in Control (whether or not a Change in Control ever occurs) and such termination was at the request or direction of a Person who has entered into an agreement
with the Company the consummation of which would constitute a Change in Control, (ii) the Executive terminates his or her employment for Good Reason prior to a Change in Control (whether or not a Change in Control ever occurs) and the
circumstance or event which constitutes Good Reason occurs at the request or direction of such Person, or (iii) the Executive’s employment is terminated by the Company without Cause or by the Executive for Good Reason and such termination
or the circumstance or event which constitutes Good Reason is otherwise in connection with or in anticipation of a Change in Control (whether or not a Change in Control ever occurs). For purposes of any determination regarding the applicability of
the immediately preceding sentence, any position taken by the Executive shall be presumed to be correct unless the Company establishes to the Board by clear and convincing evidence that such position is not correct. 

(A) In lieu of any further salary payments to the Executive for periods subsequent to the Date of Termination and in lieu of any severance
benefit otherwise payable to the Executive, the Company shall pay to the Executive a lump sum severance payment, in cash, equal to two times the sum of (i) the Executive’s base salary as in effect immediately prior to the Date of
Termination or, if higher, in effect immediately prior to the first occurrence of an event or circumstance constituting Good Reason, and (ii) the Executive’s target annual bonus under any annual bonus or incentive plan maintained by the
Company in respect of the fiscal year in which occurs the Date of Termination or, if higher, the highest target annual bonus in respect of the fiscal year in which occurs the Change in Control or the first event or circumstance constituting Good
Reason. 

  
 - 4 - 

 (B) (I) For the twenty-four (24) month period immediately following the Date of
Termination, the Company shall arrange to provide the Executive and his or her dependents life, accident and health insurance benefits substantially similar to those provided to the Executive and his or her dependents immediately prior to the Date
of Termination or, if more favorable to the Executive, those provided to the Executive and his or her dependents immediately prior to the first occurrence of an event or circumstance constituting Good Reason, at no greater after-tax cost to the
Executive than the after-tax cost to the Executive immediately prior to such date or occurrence; provided, however, that such health and welfare benefits shall be provided, as applicable, through an arrangement that satisfies the
requirements of Section 105 or 106 of the Code, and Section 2716 of the Public Health Service Act, if possible, and, to the extent the payments represent a reimbursement of expenses incurred by the Participant, shall be paid not later than
the last day of the year following the year in which the underlying expenses were incurred. Benefits otherwise receivable by the Executive pursuant to this Section 6.1(B) shall be eliminated if benefits of the same type are received by or made
available to the Executive during the twenty-four (24) month period following the Executive’s termination of employment (and any such benefits received by or made available to the Executive shall be reported to the Company by the
Executive). 
 (II) In addition, if the Executive would have become entitled to benefits under the Company’s post-retirement health
care or life insurance plans, as in effect immediately prior to the Date of Termination or, if more favorable to the Executive, as in effect immediately prior to the first occurrence of an event or circumstance constituting Good Reason, had the
Executive’s employment terminated at any time during the period of twenty-four (24) months after the Date of Termination, the Company shall provide such post-retirement health care or life insurance benefits to the Executive and the
Executive’s dependents commencing on the later of (i) the date on which such coverage would have first become available and (ii) the date on which benefits described in subsection (I) terminate. 

(III) To the extent the benefits to be made available under this subsection 6.1(B) are not medical expenses within the meaning of Treas. Reg.
§ 1.409A-1(b)(9)(v)(B) and are not short-term deferrals within the meaning of Section 409A of the Code, then during the first six months following the Date of Termination the Executive shall pay to the Company, at the time such benefits
are provided, the fair market value of such benefits, and the Company shall reimburse the Executive for any such payment not later than the fifth day following the expiration of such six-month period unless the Company reasonably determines, based
on the advice of counsel, that the benefits can be provided during such six-month period without causing the Executive to be subject to an “additional tax” under Section 409A(a)(2) of the Code. To the extent it is not possible for the
Company to provide such coverage without incurring the excise tax imposed by Section 4980D of the Code or other adverse tax consequences, the Company may in lieu of such coverage pay the Executive an amount reasonably determined to represent
the value of such coverage. 
 (C) Notwithstanding any provision of any annual or long term incentive plan to the contrary, the Company
shall pay to the Executive a lump sum amount, in cash, equal to the sum of (i) any unpaid incentive compensation which has been allocated or awarded to the Executive for a completed fiscal year or other measuring period preceding the

  
 - 5 - 

 
Date of Termination under any such plan and which, as of the Date of Termination, is contingent only upon the continued employment of the Executive to a subsequent date, and (ii) a pro rata
portion to the Date of Termination of the aggregate value of all contingent incentive compensation awards to the Executive for all then uncompleted periods under any such plan, calculated as to each such award by multiplying the award that the
Executive would have earned on the last day of the performance award period, assuming the achievement, at the target level, of the individual and corporate performance goals established with respect to such award, by the fraction obtained by
dividing the number of full months and any fractional portion of a month during such performance award period through the Date of Termination by the total number of months contained in such performance award period; provided, however,
that in the case of an award that is intended to comply with Section 162(m) of the Code, if the Termination Date occurs prior to a Change in Control (but is deemed to have occurred after a Change in Control), then in lieu of the foregoing
amount the Executive shall receive a pro rata portion of the actual award he would have received had he been employed for the entire performance award period, based up the extent to which the performance goals were achieved (but without any
discretionary reduction), paid at the same time that awards are paid to active executives. The provisions of this Section 6.1(C) shall survive the termination of this Agreement in respect of awards granted under any such annual or long-term
incentive plans before the date of such termination. 
 (D) In addition to the retirement benefits to which the Executive is entitled under
each DB Pension Plan or any successor plan thereto, the Company shall pay the Executive a lump sum amount, in cash, equal to the excess of (i) the actuarial equivalent of the aggregate retirement pension (taking into account any early
retirement subsidies associated therewith and determined as a straight life annuity commencing at the date (but in no event earlier than the second anniversary of the Date of Termination) as of which the actuarial equivalent of such annuity is
greatest) which the Executive would have accrued under the terms of all DB Pension Plans (without regard to any amendment to any DB Pension Plan made subsequent to a Change in Control and on or prior to the Date of Termination, which amendment
adversely affects in any manner the computation of retirement benefits thereunder), determined as if the Executive were fully vested thereunder and had accumulated (after the Date of Termination) twenty-four (24) additional months of age and
service credit thereunder and had been credited under each DB Pension Plan during such period with compensation equal to the Executive’s compensation (as defined in such DB Pension Plan) during the twelve (12) months immediately preceding
Date of Termination or, if higher, during the twelve months immediately prior to the first occurrence of an event or circumstance constituting Good Reason, over (ii) the actuarial equivalent of the aggregate retirement pension (taking into
account any early retirement subsidies associated therewith and determined as a straight life annuity commencing at the date (but in no event earlier than the Date of Termination) as of which the actuarial equivalent of such annuity is greatest)
which the Executive had accrued pursuant to the provisions of the DB Pension Plans as of the Date of Termination. For purposes of this Section 6.1(D), “actuarial equivalent” shall be determined using the same assumptions utilized
under the Baxalta Incorporated and Subsidiaries Pension Plan immediately prior to the Date of Termination or, if more favorable to the Executive, immediately prior to the first occurrence of an event or circumstance constituting Good Reason. In
addition to the benefits to which the Executive is entitled under each DC Pension Plan, the Company shall pay the Executive a lump sum amount, in cash, equal to the sum of (i) the amount that would have been contributed thereto by the

  
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Company on the Executive’s behalf during the two years immediately following the Date of Termination, determined (x) as if the Executive made the maximum permissible contributions
thereto during such period, (y) as if the Executive earned compensation during such period at a rate equal to the Executive’s compensation (as defined in the DC Pension Plan) during the twelve (12) months immediately preceding the
Date of Termination or, if higher, during the twelve months immediately prior to the first occurrence of an event or circumstance constituting Good Reason, and (z) without regard to any amendment to the DC Pension Plan made subsequent to a
Change in Control and on or prior to the Date of Termination, which amendment adversely affects in any manner the computation of benefits thereunder, and (ii) the excess, if any, of (x) the Executive’s account balance under the DC
Pension Plan as of the Date of Termination over (y) the portion of such account balance that is nonforfeitable under the terms of the DC Pension Plan. 

(E) The Company shall provide the Executive with outplacement services suitable to the Executive’s position for a period of two years
or, if earlier, until the first acceptance by the Executive of an offer of employment, in an aggregate amount not exceeding $50,000. Subject to the foregoing, in no event shall any payment described in this Section 6.1(E) be made after the end
of the calendar year following the calendar year in which the services were provided. 
 (F) The lump-sum cash payments required pursuant
to the preceding provisions of this Section 6.1 hereof shall be made not later than the fifth day following the date on which the release described above has been executed and the period for revocation of the release has expired.
Notwithstanding the above, the Executive shall not be considered to have terminated employment with the Company for purposes of this Agreement and no payments shall be due to the Executive under this Agreement unless the Executive would be
considered to have incurred a “separation from service” from the Company within the meaning of Section 409A of the Code. Each amount to be paid or benefit to be provided under this Agreement shall be construed as a separate identified
payment for purposes of Section 409A of the Code. Any payments described in this Agreement that are due within the “short term deferral period” within the meaning of Section 409A of the Code or that are otherwise exempt from
application of Section 409A of the Code, shall not be treated as deferred compensation unless applicable law requires otherwise. If the Executive, at the Date of Termination, is a “specified employee” as defined in the Baxalta
Incorporated and Subsidiaries Deferred Compensation Plan, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to this Agreement during the six-month period immediately following the Executive’s
termination of employment shall instead be paid on the first business day after the date that is six months following the Executive’s termination of employment (or upon the Executive’s death, if earlier) unless the Company reasonably
determines, based on the advice of counsel, that such delayed commencement is not required to avoid an “additional tax” under Section 409A(a)(2) of the Code. In addition, to the extent required in order to avoid accelerated taxation
and/or tax penalties under Section 409A of the Code, in the event that the Executive’s termination of employment occurs within fifty-five (55) days prior to the end of a calendar year, amounts that would otherwise be payable and
benefits that would otherwise be provided pursuant to this Agreement on or before December 31 of the year in which the termination of employment occurs shall, subject to the previous sentence of this section, instead be paid on the first
business day following January 1 of the first calendar year beginning after the Executive’s termination of employment. 

  
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 6.2 At the time the payments provided in subsections (A) (C) and (D) of
Section 6.1 of this Agreement, the Company shall provide the Executive with a written statement setting forth the manner in which such payments were calculated and the basis for such calculations. 

6.3 The Company also shall pay to the Executive all reasonable legal fees and expenses incurred by the Executive in disputing any issue
hereunder relating to the termination of the Executive’s employment (provided the Executive shall prevail in such dispute), in seeking to obtain or enforce any benefit or right provided by this Agreement (provided the Executive shall obtain or
successfully enforce such benefit or right) or in connection with any tax audit or proceeding to the extent attributable to the application of Section 409A of the Code to any payment or benefit provided hereunder. Such payments shall be made
within five (5) business days after delivery of the Executive’s written request for payment accompanied with such evidence of fees and expenses incurred as the Company reasonably may require; provided that no such payment shall be made in
respect of fees or expenses incurred by the Executive after the later of the tenth anniversary of the Date of Termination or the Executive’s death, and provided further, that, upon the Executive’s separation from service with the Company,
in no event shall any additional such payments be made prior to the date that is six months after the date of the Executive’s separation from service unless the Company reasonably determines, based on the advice of counsel, that such delay is
not required to avoid an “additional tax” under Section 409A(a)(2) of the Code. 
 7. Termination Procedures. 

7.1 Notice of Termination. After a Change in Control and during the Term, any purported termination of the Executive’s employment
(other than by reason of death) shall be communicated by written Notice of Termination from one party hereto to the other party hereto in accordance with Section 11 hereof. For purposes of this Agreement, a “Notice of Termination”
shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s
employment under the provision so indicated. Further, a Notice of Termination for Cause is required to include a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters
(3/4) of the entire membership of the Board at a meeting of the Board which was called and held for the purpose of considering such termination (after reasonable notice to the Executive and an opportunity for the Executive, together with the
Executive’s counsel, to be heard before the Board) finding that, in the good faith opinion of the Board, the Executive was guilty of conduct set forth in clause (i) or (ii) of the definition of Cause herein, and specifying the
particulars thereof in detail. 
 7.2 Date of Termination. “Date of Termination,” with respect to any purported termination
of the Executive’s employment after a Change in Control and during the Term, shall mean (i) if the Executive’s employment is terminated for Disability, thirty (30) days after Notice of Termination is given (provided that the
Executive shall not have returned to the full-time performance of the Executive’s duties during such thirty (30) day period), and (ii) if the 

  
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Executive’s employment is terminated for any other reason, the date specified in the Notice of Termination (which, in the case of a termination by the Company, shall not be less than thirty
(30) days (except in the case of a termination for Cause) and, in the case of a termination by the Executive, shall not be less than fifteen (15) days nor more than sixty (60) days (subject to Section 16(R) in the case of a
termination for Good Reason), respectively, from the date such Notice of Termination is given); provided that Executive shall not be considered to have terminated employment with the Company for purposes of this Agreement and no payments shall be
due to the Executive under this Agreement unless the Executive would be considered to have incurred a “separation from service” from the Company within the meaning of Section 409A of the Code. 

7.3 Dispute Concerning Termination. If within fifteen (15) days after any Notice of Termination is given, or, if later, prior to
the Date of Termination (as determined without regard to this Section 7.3), the party receiving such Notice of Termination notifies the other party that a dispute exists concerning the termination, the Date of Termination shall be extended
until the earlier of (i) the date on which the Term ends or (ii) the date on which the dispute is finally resolved, either by mutual written agreement of the parties or by a final judgment, order or decree of an arbitrator or a court of
competent jurisdiction (which is not appealable or with respect to which the time for appeal therefrom has expired and no appeal has been perfected); provided, however, that the Date of Termination shall be extended by a notice of
dispute given by the Executive only if such notice is given in good faith and the Executive pursues the resolution of such dispute with reasonable diligence; and further provided, however, that the provisions of this
Section 7.3 shall apply only to the extent that, pursuant to Treas. Reg. § 1.409A-3(g), they will not cause an additional tax under Section 409A of the Code. 

8. No Mitigation. The Company agrees that, if the Executive’s employment with the Company terminates during the Term, the
Executive is not required to seek other employment or to attempt in any way to reduce any amounts payable to the Executive by the Company pursuant to Section 6 hereof. Further, except as specifically provided in Section 6.1(B) hereof, no
payment or benefit provided for in this Agreement shall be reduced by any compensation earned by the Executive as the result of employment by another employer, by retirement benefits, by offset against any amount claimed to be owed by the Executive
to the Company, or otherwise. 
 9. Certain Restrictive Covenants. 

9.1 Noncompetition. The Executive understands that any entrusting of Confidential Information to him by the Company is done in reliance
on a confidential relationship arising out of his or her employment with the Company. The Executive understands that Confidential Information may include, for example, Trade Secrets, inventions, know-how and products, customer, patient, supplier and
competitor information, sales, pricing, cost, and financial data, research, development, marketing and sales programs and strategies, manufacturing, marketing and service techniques, processes and practices, and regulatory strategies. The Executive
understands that Confidential Information also includes all information received by the Company or the Subsidiaries under an obligation of confidentiality to a third party. The Executive further understands that Confidential Information that the
Executive may acquire or to which the Executive may have access, especially with regard to research and development projects and findings, formulae, designs, formulation, processes, the identity of 

  
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suppliers, customers and patients, methods of manufacture, and cost and pricing data is of great value to the Company. In consequence of such entrusting and such consideration, the Executive
shall not, directly or indirectly, for a period of two years after the Date of Termination: (i) render services to any Competing Organization in connection with any Competing Product within such geographic limits as the Company and such
Competing Organization are, or would be, in actual competition when such rendering of services might potentially involve the disclosure or use of confidential information or trade secrets; or (ii) provide advice as to investment in a
Competitive Business (including, without limitation, advice with respect to the purchase, sale, or operation of such business, or advice with respect to financing or other economic structuring of such business). The Executive understands that
services described in the preceding sentence, including without limitation those rendered to such Competing Organization in an executive, scientific, administrative, or consulting capacity in connection with Competing Products are in support of
actual competition in various geographic areas and thus fall within the prohibition of this Agreement regardless of where such services physically are rendered. 

9.2 Solicitation of Customers, Suppliers and Employees. While Executive is employed by the Company, and for a period of twenty-four
(24) months after the Date of Termination for any reason: 
 (A) The Executive shall not solicit or attempt to solicit any party who
is then or, during the 12-month period prior to such solicitation or attempt by the Executive was (or was solicited to become), a customer or supplier of the Company or Affiliate, provided that the restriction in this Section 9.2 shall not
apply to any activity on behalf of a business that is not a Competing Organization. 
 (B) The Executive shall not solicit, entice,
persuade or induce any individual who is employed by the Company or the Subsidiaries (or was so employed within 90 days prior to the Executive’s action) to terminate or refrain from renewing or extending such employment or to become employed by
or enter into contractual relations with any other individual or entity other than the Company or the Subsidiaries, and the Executive shall not approach any such employee for any such purpose or authorize or knowingly cooperate with the taking of
any such actions by any other individual or entity. 
 9.3 Nondisparagement. The Executive agrees that, while he is employed by the
Company, and after his or her Date of Termination, he shall not make any false, defamatory or disparaging statements about the Company, the Subsidiaries, or the officers or directors of the Company or the Subsidiaries that are reasonably likely to
cause material damage to the Company, the Subsidiaries, or the officers or directors of the Company or the Subsidiaries. While the Executive is employed by the Company, and after his or her Date of Termination, the Company agrees, on behalf of
itself and the Subsidiaries, that neither the officers nor the directors of the Company or the Subsidiaries shall make any false, defamatory or disparaging statements about the Executive that are reasonably likely to cause material damage to the
Executive. Notwithstanding the foregoing, nothing in this paragraph will prevent either the Company or any Executive from (i) responding to an incorrect, disparaging or derogatory public statement by the other to the extent necessary to correct
or refute such public statement or (ii) making any truthful statement to the extent (x) necessary in connection with any litigation, arbitration or mediation involving this Agreement or (y) required by law, by any court order or by
any arbitrator or mediator in a legal proceeding. 

  
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 10. Successors; Binding Agreement. 

10.1 In addition to any obligations imposed by law upon any successor to the Company, the Company will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company
would be required to perform it if no such succession had taken place. 
 10.2 This Agreement shall inure to the benefit of and be
enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If the Executive shall die while any amount would still be payable to the Executive hereunder
(other than amounts which, by their terms, terminate upon the death of the Executive) if the Executive had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to the
executors, personal representatives or administrators of the Executive’s estate. 
 11. Notices. For the purpose of this
Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States registered mail, return receipt requested, postage prepaid,
addressed, if to the Executive, to the address inserted below the Executive’s signature on the final page hereof and, if to the Company, to the address set forth below, or to such other address as either party may have furnished to the other in
writing in accordance herewith, except that notice of change of address shall be effective only upon actual receipt: 
 To the Company: 

Baxalta Incorporated 
 One Baxter
Parkway 
 Deerfield, Illinois 60015 

Attention: General Counsel 
 Upon the anticipated
relocation of the Company’s headquarters to 1200 Lakeside Drive, Bannockburn, Illinois 60015, the address for notices to the Company shall be changed to such address without the need for further notice. 

12. Miscellaneous. No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge
is agreed to in writing and signed by the Executive and such officer as may be specifically designated by the Board. No waiver by either party hereto at any time of any breach by the other party hereto of, or of any lack of compliance with, any
condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. This Agreement supersedes any other agreements or
representations, oral or otherwise, express or implied, with respect to the subject matter hereof which have been made by either party; provided, however, that this Agreement shall supersede

  
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any agreement setting forth the terms and conditions of the Executive’s employment with the Company only in the event that the Executive’s employment with the Company is terminated on
or following a Change in Control, by the Company other than for Cause or by the Executive for Good Reason. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Illinois. All
references to sections of the Exchange Act or the Code shall be deemed also to refer to any successor provisions to such sections. Any payments provided for hereunder shall be paid net of any applicable withholding required under federal, state or
local law and any additional withholding to which the Executive has agreed. The obligations of the Company and the Executive under this Agreement which by their nature may require either partial or total performance after the expiration of the Term
(including, without limitation, those under Sections 6, 7 and 9 hereof) shall survive such expiration. To the extent applicable, it is intended that the Agreement comply with the provisions of Section 409A of the Code. The Agreement will be
administered and interpreted in a manner consistent with this intent, and any provision that would cause the Agreement to fail to satisfy Section 409A of the Code will have no force and effect until amended to comply therewith (which amendment
may be retroactive to the extent permitted by Section 409A of the Code). 
 13. Validity. The invalidity or unenforceability of
any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. 

14. Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of
which together will constitute one and the same instrument. 
 15. Settlement of Disputes; Arbitration. 

15.1 All claims by the Executive for benefits under this Agreement shall be directed to and determined by the Board and shall be in writing.
Any denial by the Board of a claim for benefits under this Agreement shall be delivered to the Executive in writing and shall set forth the specific reasons for the denial and the specific provisions of this Agreement relied upon. The Board shall
afford a reasonable opportunity to the Executive for a review of the decision denying a claim and shall further allow the Executive to appeal to the Board a decision of the Board within sixty (60) days after notification by the Board that the
Executive’s claim has been denied. Notwithstanding the above, in the event of any dispute, any decision by the Board hereunder shall be subject to a de novo review by the arbitrator in accordance with Section 15.2 hereof. 

15.2 Any further dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration in
Chicago, Illinois in accordance with the rules of the American Arbitration Association then in effect. Judgment may be entered on the arbitrator’s award in any court having jurisdiction. Notwithstanding any provision of this Agreement to the
contrary, the Executive shall be entitled to seek specific performance of the Executive’s right to be paid until the Date of Termination during the pendency of any dispute or controversy arising under or in connection with this Agreement. 

  
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 15.3 The Executive acknowledges that the Company would be irreparably injured by a violation of
Section 9 hereof, and he agrees that the Company, notwithstanding the foregoing provisions of this Section 15 and in addition to any other remedies available to it for such breach or threatened breach, shall be entitled to a preliminary
injunction, temporary restraining order, or other equivalent relief, restraining the Executive from any actual or threatened breach of Section 9. If a bond is required to be posted in order for the Company to secure an injunction or other
equitable remedy, the parties agree that said bond need not be more than a nominal sum. 
 16. Definitions. For purposes of this
Agreement, the following terms shall have the meanings indicated below: 
 (A) “Affiliate” shall have the meaning set forth in
Rule 12b-2 promulgated under Section 12 of the Exchange Act. 
 (B) “Beneficial Owner” shall have the meaning set forth in
Rule 13d-3 under the Exchange Act. 
 (C) “Board” shall mean the Board of Directors of
the Company. 
 (D) “Cause” for termination by the Company of the Executive’s employment shall mean (i) the willful and
continued failure by the Executive to substantially perform the Executive’s duties with the Company (other than any such failure resulting from the Executive’s incapacity due to physical or mental illness or any such actual or anticipated
failure after the issuance of a Notice of Termination for Good Reason by the Executive pursuant to Section 7.1 hereof) that has not been cured within 30 days after a written demand for substantial performance is delivered to the Executive by
the Board, which demand specifically identifies the manner in which the Board believes that the Executive has not substantially performed the Executive’s duties or (ii) the willful engaging by the Executive in conduct which is demonstrably
and materially injurious to the Company or its subsidiaries, monetarily or otherwise. For purposes of clauses (i) and (ii) of this definition, (x) no act, or failure to act, on the Executive’s part shall be deemed
“willful” unless done, or omitted to be done, by the Executive not in good faith and without reasonable belief that the Executive’s act, or failure to act, was in the best interest of the Company and (y) in the event of a dispute
concerning the application of this provision, no claim by the Company that Cause exists shall be given effect unless the Company establishes to the Board by clear and convincing evidence that Cause exists. 

(E) A “Change in Control” shall be deemed to have occurred if the event set forth in any one of the following paragraphs shall have
occurred: 
 (I) any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not
including in the securities beneficially owned by such Person any securities acquired directly from the Company or its Affiliates) representing 30% or more of the combined voting power of the Company’s then outstanding securities, excluding any
Person who becomes such a Beneficial Owner in connection with a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any other corporation immediately following which the

  
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individuals who comprise the Board immediately prior thereto constitute at least a majority of the board of directors of (a) any parent of the Company or the entity surviving such merger or
consolidation (b) if there is no such parent, of the Company or such surviving entity; 
 (II) the following
individuals cease for any reason to constitute a majority of the number of directors then serving: individuals who, on the date hereof, constitute the Board and any new director (other than a director whose initial assumption of office is in
connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of directors of the Company) whose appointment or election by the Board or nomination for election by the
Company’s stockholders was approved or recommended by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors on the date hereof or whose appointment, election or nomination for election was
previously so approved or recommended; 
 (III) there is consummated a merger or consolidation of the Company or any direct
or indirect subsidiary of the Company with any other corporation or other entity, other than a merger or consolidation immediately following which the individuals who comprise the Board immediately prior thereto constitute at least a majority of the
board of directors of (a) any parent of the Company or the entity surviving such merger or consolidation or (b) if there is no such parent, of the Company or such surviving entity; or 

(IV) the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or there is
consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets immediately
following which the individuals who comprise the Board immediately prior thereto constitute at least a majority of the board of directors of (a) any parent of the Company or of the entity to which such assets are sold or disposed or (b) if
there is no such parent, of the Company or such entity. 
 Notwithstanding the foregoing, a “Change in Control” shall not be deemed to have
occurred by virtue of the consummation of any transaction or series of integrated transactions immediately following which the record holders of the common stock of the Company immediately prior to such transaction or series of transactions continue
to have substantially the same proportionate ownership in an entity which owns all or substantially all of the assets of the Company immediately following such transaction or series of transactions. 

(F) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time. 

(G) “Company” shall mean Baxalta Incorporated and, except in determining under Section 16(E) hereof whether or not any Change
in Control of the Company has occurred, shall include any successor to its business and/or assets which assumes this Agreement by operation of law, or otherwise. 

  
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 (H) “Competing Products” shall mean products, processes, or services of any person or
organization other than the Company, in existence or under development, which are substantially the same, may be substituted for, or applied to substantially the same end use as the products, processes or services with which the Executive works
during the time of his or her employment with the Company or about which the Executive acquires Confidential Information through his or her work with the Company. 

(I) “Competing Organization” shall mean persons or organizations engaged in, or about to become engaged in, research or
development, production, distribution, marketing, providing or selling of a Competing Product. 
 (J) “Competitive Business”
means any business in which the Company or any of the Subsidiaries was engaged during the 12-month period prior to the Executive’s Date of Termination, any business if the Company or any Subsidiary has devoted material resources to entering
into such business during such 12-month period prior to the Date of Termination, and any business to the extent that it is engaged in the investing in or acquisition of all or a portion of the assets or stock of the Company or the Subsidiaries. 

(K) “Confidential Information” means information relating to the present or planned business of the Company or the Subsidiaries
which has not been released publicly by authorized representatives of the Company or the Subsidiaries. 
 (L) “DB Pension Plan”
shall mean any tax-qualified, supplemental or excess defined benefit pension plan maintained by the Company and any other defined benefit plan or agreement entered into between the Executive and the Company which is designed to provide the Executive
with supplemental retirement benefits. 
 (M) “DC Pension Plan” shall mean any tax-qualified, supplemental or excess defined
contribution plan maintained by the Company and any other defined contribution plan or agreement entered into between the Executive and the Company which is designed to provide the Executive with supplemental retirement benefits. 

(N) “Date of Termination” shall have the meaning set forth in Section 7.2 hereof. 

(O) “Disability” shall be deemed the reason for the termination by the Company of the Executive’s employment, if, as a result
of the Executive’s incapacity due to physical or mental illness, injury or congenital condition, the Executive shall have been absent from the full-time performance of the Executive’s duties with the
Company for a period of six (6) consecutive months, the Company shall have given the Executive a Notice of Termination for Disability, and, within thirty (30) days after such Notice of Termination is given, the Executive shall not have
returned to the full-time performance of the Executive’s duties. 
 (P) “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended from time to time. 

  
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 (Q) “Executive” shall mean the individual named in the first paragraph of this
Agreement. 
 (R) “Good Reason” for termination by the Executive of the Executive’s employment shall mean the occurrence
(without the Executive’s express written consent) after any Change in Control, or prior to a Change in Control under the circumstances described in clauses (ii) and (iii) of the second sentence of Section 6.1 hereof (treating all
references in paragraphs (I) through (V) below to a “Change in Control” as references to a “Potential Change in Control”): 

(I) the assignment to the Executive of any duties inconsistent with the Executive’s status as a senior executive officer
of the Company or a substantial adverse alteration in the nature or status of the Executive’s responsibilities from those in effect immediately prior to the Change in Control; 

(II) a material reduction by the Company in the Executive’s annual base salary as in effect on the date hereof or as the
same may be increased from time to time; 
 (III) a material change in the location of the Executive’s principal place
of employment, including for this purpose any relocation that increases the distance between the Executive’s residence to his or her principal place of employment immediately prior to the Change in Control by more than fifty (50) miles, or
the Company’s requiring the Executive to be based anywhere other than such principal place of employment (or permitted relocation thereof) except for required travel on the Company’s business to an extent substantially consistent with the
Executive’s present business travel obligations; or 
 (IV) the failure by the Company to pay to the Executive any
portion of the Executive’s current compensation, or to pay to the Executive any portion of an installment of deferred compensation under any deferred compensation program of the Company, within seven (7) days of the date such compensation
is due; 
 (V) any other action or inaction that constitutes a material breach of this Agreement, including without
limitation Sections 5.5 and 10.1. 
 The Executive’s right to terminate the Executive’s employment for Good Reason shall not be affected by the
Executive’s incapacity due to physical or mental illness. The Executive’s continued employment shall not constitute consent to, or a waiver of rights with respect to, any act or failure to act constituting Good Reason hereunder.
Notwithstanding the foregoing, the Executive will not be considered to have terminated for Good Reason unless the Executive gives written notice to the Company of the circumstances constituting Good Reason not more than ninety (90) days after
the Executive first has (or, with the exercise of reasonable diligence, would have) notice of such circumstances, the Company fails to cure the circumstances constituting Good Reason to the Executive’s reasonable satisfaction within thirty
(30) days after receipt of such notice, and the Executive resigns within thirty (30) days after the end of such cure period. 

  
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 (S) “Items” include documents, reports, drawings, photographs, designs,
specifications, formulae, plans, samples, research or development information, prototypes, tools, equipment, proposals, marketing or sales plans, customer information, customer lists, patient lists, patient information, regulatory files, financial
data, costs, pricing information, supplier information, written, printed or graphic matter, or other information and materials that concern the Company’s or the Subsidiaries’ business that come into his or her possession or about which the
Executive has knowledge by reason of his or her employment. 
 (T) “Notice of Termination” shall have the meaning set forth in
Section 7.1 hereof. 
 (U) “Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified
and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) the Company or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of
its Affiliates, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions
as their ownership of stock of the Company. 
 (V) “Potential Change in Control Period” shall mean the period commencing on the
occurrence of a Potential Change in Control and ending upon the occurrence of a Change in Control or, if earlier (I) with respect to a Potential Change in Control occurring pursuant to Section 16(W)(I) hereof, immediately upon the
abandonment or termination of the applicable agreement, (ii) with respect to a Potential Change in Control occurring pursuant to Section 16(W)(II) hereof, immediately upon a public announcement by the applicable party that such party has
abandoned its intention to take or consider taking actions which if consummated would result in a Change in Control or (iii) with respect to a Potential Change in Control occurring pursuant to Section 16(W)(III) or (IV) hereof, upon the
eighteen month anniversary of the occurrence of such Potential Change in Control (or such earlier date as may be determined by the Board). 

(W) “Potential Change in Control” shall be deemed to have occurred if the event set forth in any one of the following paragraphs
shall have occurred: 
 (I) the Company enters into an agreement, the consummation of which would result in the occurrence
of a Change in Control; 
 (II) the Company or any Person publicly announces an intention to take or to consider taking
actions which, if consummated, would constitute a Change in Control; 
 (III) any Person becomes the Beneficial Owner,
directly or indirectly, of securities of the Company representing 15% or more of either the then outstanding shares of common stock of the Company or the combined voting power of the Company’s then outstanding securities (not including in the
securities beneficially owned by such Person any securities acquired directly from the Company or its affiliates); for the avoidance of doubt, Baxter International Inc. shall not constitute a Person for the purposes of this Section 16(W)(III),
nor shall any direct transferee of any shares of common stock owned by Baxter International Inc.; or 

  
 - 17 - 

 (IV) the Board adopts a resolution to the effect that, for purposes of this
Agreement, a Potential Change in Control has occurred. 
 (X) “Retirement” shall be deemed the reason for the termination by the
Executive of the Executive’s employment if such employment is terminated in accordance with the Company’s retirement policy, including early retirement, generally applicable to its salaried employees. 

(Y) “Severance Payments” shall have the meaning set forth in Section 6.1 hereof. 

(Z) “Subsidiary,” for purposes of Section 9 hereof, shall mean any corporation, partnership, joint venture or other entity
during any period in which at least fifty percent in such entity is owned, directly or indirectly, by the Company. 
 (AA) “Term”
shall mean the period of time described in Section 2 hereof (including any extension, continuation or termination described therein). 

(BB) “Trade Secrets” include all information encompassed in all Items, and in all manufacturing processes, methods of production,
concepts or ideas, to the extent that such information has not been released publicly by duly authorized representatives of the Company or the Subsidiaries. 

[Remainder of page intentionally blank.] 

  
 - 18 - 

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

  

			
	BAXALTA INCORPORATED
		
	By:		  

	Name:		Anne-Marie Law
	Title:		EVP and Head of Human Resources
	
	  

	EXECUTIVE
	
	Address:
	
	  

	
	  

	
	  

	(Please print carefully)

 [This Agreement is executed by Baxter International Inc. solely for the purpose of agreeing to the termination of the
Baxter Agreement as provided in Section 2.3. 
  

			
	BAXTER INTERNATIONAL INC.
		
	By:		  

	Name:		Jeanne Mason
	Title:		CVP, Human Resources]

  
 - 19 -

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