Document:

EX-10.3

 Exhibit 10.3 

FORM OF 
 TAX MATTERS
AGREEMENT 
 by and among 

BAXTER INTERNATIONAL INC. 

AND ITS AFFILIATES 
 and

 BAXALTA INCORPORATED 

AND ITS AFFILIATES 

 FORM OF 

TAX MATTERS AGREEMENT 

This Tax Matters Agreement (the “Agreement”) is entered into as of the
             day of             , 2015, between Baxter International Inc. (“Baxter”), a Delaware corporation, by
and on behalf of itself and each Affiliate of Baxter, and Baxalta Incorporated (“Baxalta” and, together with Baxter, the “Parties”), a Delaware corporation, by and on behalf of itself and each Affiliate of Baxalta.

 R E C I T A L S: 
 WHEREAS,
Baxter’s board of directors has determined that it is appropriate and advisable to: (i) separate the Baxalta Business from Baxter’s remaining businesses (the “Separation”), which will include the transfer of the
assets (including interests in intangible assets and stock of subsidiaries) used in connection with the Baxalta Business to Baxalta (the “Contribution”); and (ii) following the Separation, make a distribution, on a pro rata
basis, to holders of common shares, par value $1.00 per share (“Baxter Common Stock”), of Baxter of at least 80% of the outstanding shares of common stock, par value $0.01 per share, of Baxalta owned by Baxter (the
“Distribution” together with the Separation, Subsequent Distributions and Debt-for-Equity Exchanges, the “Transactions”) (the date of such Distribution, the “Distribution Date”); 

WHEREAS, Baxter may retain up to 20% of the outstanding Baxalta Common Stock (“Retained Stock”) and distribute such Retained
Stock to Baxter shareholders (“Subsequent Distributions”) or Baxter creditors (“Debt-for-Equity Exchanges”) within 18 months of the Distribution; 

WHEREAS, Baxter and Baxalta intend that the Contribution and Distribution, Subsequent Distributions, Debt-for-Equity Exchanges and certain
other transactions effected as part of the Separation qualify for Tax-Free Status; 
 WHEREAS, as of the date hereof, Baxter is the common
parent of an affiliated group of domestic corporations, including Baxalta, that has elected to file consolidated U.S. federal Income Tax Returns and, as a result of the Distribution, neither Baxalta nor any of its Affiliates will be a member of such
group after the close of the Distribution Date; and 
 WHEREAS, in contemplation of the Distribution, Baxter and Baxalta desire to set forth
their agreement on the rights and obligations of Baxter and Baxalta and their respective Affiliates with respect to the responsibility, handling and allocation of federal, state, local, and non-U.S. Taxes, and various other Tax matters; 

 NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained in
this Agreement, Baxter and Baxalta (and their respective Affiliates) hereby covenant and agree as follows: 
 ARTICLE I 

DEFINITIONS 
 For purposes
of this Agreement (including the recitals hereof), the following terms have the following meaning, and capitalized terms used in this Agreement but not otherwise defined herein shall have the meanings assigned to them in the Distribution Agreement.

 “Active Trade or Business” means the active conduct (as defined in Section 355(b)(2) of the Code and the
regulations thereunder) by Baxalta and its “separate affiliated group” (as defined in Section 355(b)(3)(B) of the Code) and any Affiliate of Baxalta that is a party to a transaction intended to qualify under Section 355 of the
Code and such Affiliate’s “separate affiliated group” of the Baxalta Business, in each case, as conducted immediately prior to the Distribution or any other relevant distribution. 

“Adjustment Request” means any formal or informal claim or request filed with any Tax Authority, or with any administrative
agency or court, for the adjustment, refund, or credit of Taxes, including (a) any amended Tax Return claiming adjustment to the Taxes as reported on the Tax Return or, if applicable, as previously adjusted, (b) any claim for equitable
recoupment or other offset, and (c) any claim for refund or credit of Taxes previously paid. 
 “Affiliate” means any
corporation, partnership, limited liability company, or other entity directly or indirectly Controlled by the entity in question. 

“Agreement” has the meaning set forth in the Preamble. 

“Baxalta” has the meaning set forth in the Preamble. 

“Baxalta Business” has the meaning set forth in the Distribution Agreement. 

“Baxalta Capital Stock” means all classes or series of capital stock of Baxalta, including (a) the Baxalta Common Stock,
(b) all options, warrants and other rights to acquire such capital stock and (c) all instruments properly treated as stock in Baxalta for U.S. federal Income Tax purposes. 

“Baxalta Group” means Baxalta and all Affiliates of Baxalta, as determined immediately after the Distribution. 

“Baxalta Separate Return” means any Tax Return of or including any member of the Baxalta Group (including any consolidated,
combined or unitary return) that is not a Joint Return. 
 “Baxter” has the meaning set forth in the Preamble. 

“Baxter Affiliated Group” means the affiliated group (as that term is defined in Section 1504 of the Code and the
regulations thereunder) of which Baxter is the common parent. 
 “Baxter Business” has the meaning set forth in the
Distribution Agreement. 

  
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 “Baxter Capital Stock” means all classes or series of capital stock of Baxter,
including (a) the Baxter Common Stock, (b) all options, warrants and other rights to acquire such capital stock and (c) all instruments properly treated as stock in Baxter for U.S. federal Income Tax purposes. 

“Baxter Common Stock” has the meaning set forth in the Recitals. 

“Baxter Federal Consolidated Income Tax Return” means any United States federal Income Tax Return for the Baxter Affiliated
Group. 
 “Baxter Group” means Baxter and all Affiliates of Baxter, excluding any entity that is a member of the Baxalta
Group. 
 “Baxter Separate Return” means any Tax Return of or including any member of the Baxter Group (including any
consolidated, combined or unitary return) that is not a Joint Return. 
 “Board Certificate” has the meaning set forth in
Section 4.02(d) of this Agreement. 
 “Business” means the Baxter Business or Baxalta Business, as the case may
be. 
 “Code” means the Internal Revenue Code of 1986, as amended. 

“Contribution” has the meaning set forth in the Recitals. 

“Control” means the ownership of stock or other securities possessing at least 50 percent of the total combined voting power
of all classes of securities entitled to vote. 
 “Debt-for-Equity Exchange” has the meaning set forth in the Recitals.

 “Deferred Baxalta Business” has the meaning set forth in the ICO Agreement. 

“Distribution” has the meaning set forth in the Recitals. 

“Distribution Agreement” means the Separation and Distribution Agreement entered into by and between Baxter and Baxalta on
the date hereof, as the same may be amended. 
 “Distribution Date” has the meaning set forth in the Recitals. 

“Employee Matters Agreement” means the Employee Matters Agreement entered into by and between Baxter and Baxalta on the date
hereof, as the same may be amended. 
 “Employment Taxes” means any Tax the liability or responsibility for is allocated
pursuant to the Employee Matters Agreement. 
 “Fifty-Percent or Greater Interest” has the meaning ascribed to such term
for purposes of Sections 355(d) and (e) of the Code. 
 “Final Determination” means the final resolution of liability
for any Tax, which resolution may be for a specific issue or adjustment or for a taxable period, (a) by IRS Form 870 or 870-AD (or any successor forms thereto), on the date of acceptance by or on behalf of the

  
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taxpayer, or by a comparable form under the laws of a state, local, or non-U.S. taxing jurisdiction, except that a Form 870 or 870-AD or comparable form shall not constitute a Final Determination
to the extent that it reserves (whether by its terms or by operation of law) the right of the taxpayer to file a claim for refund or the right of the Tax Authority to assert a further deficiency in respect of such issue or adjustment or for such
taxable period (as the case may be); (b) by a decision, judgment, decree, or other order by a court of competent jurisdiction, which has become final and unappealable; (c) by a closing agreement or accepted offer in compromise under
Sections 7121 or 7122 of the Code, or a comparable agreement under the laws of a state, local, or non-U.S. taxing jurisdiction; (d) by any allowance of a refund or credit in respect of an overpayment of Tax, but only after the expiration of all
periods during which such refund may be recovered (including by way of offset) by the jurisdiction imposing such Tax; (e) by a final settlement resulting from a treaty-based competent authority determination; or (f) by any other final
disposition, including by reason of the expiration of the applicable statute of limitations or by mutual agreement of the parties. 

“ICO Agreement” means the International Commercial Operations Agreement, as defined in the Distribution Agreement. 

“Income Tax” means any Tax which is based upon, measured by, or calculated with respect to income or net worth, including,
without limitation, the Michigan “single business tax” set forth at MCL sections 208.1 to 208.145, the Ohio “Commercial Activity Tax” set forth in Ohio Rev. Code Ann. §§ 5751.01 through 5751.99, the Texas
“franchise tax” set forth in Title 2, Subtitle F, Chapter 171 of the Texas Tax Code Annotated, the California “franchise tax” set forth in Cal. Rev. & Tax Code § 23151, the “Business Privilege Tax” set
forth in Tennessee Code section 67-4-709, and any other franchise or similar Taxes. 
 “Income Tax Return” means any Tax
Return relating to Income Taxes. 
 “Indemnifying Party” means a Party that has an obligation to make an Indemnity Payment.

 “Indemnitee” means a Party that is entitled to receive an Indemnity Payment. 

“Indemnity Payment” means an indemnity payment contemplated by the Distribution Agreement, this Agreement or any other
Ancillary Agreement. 
 “IRS” means the United States Internal Revenue Service. 

“IRS Ruling” means the private letter ruling issued by the IRS to Baxter (or any other member of the Baxter Group) in
connection with the Transactions (including any supplemental rulings). 
 “Joint Return” means (i) any Tax Return that
actually includes, by election or otherwise, one or more members of the Baxter Group together with one or more members of the Baxalta Group or (ii) any Tax Return that includes Tax Items attributable to both the Baxalta Business and the Baxter
Business. 

  
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 “MDET” means the Medical Device Excise Tax as defined in Section 4191 of
the Code and any Treasury Regulations promulgated thereunder. 
 “Non-Income Tax” means any Tax that is not an Income Tax
or a Property Tax. 
 “Non-Income Tax Return” means any Tax Return relating to Non-Income Taxes. 

“Notified Action” has the meaning set forth in Section 4.04(a). 

“Other Tax Ruling” means each ruling (other than the IRS Ruling) issued by a Tax Authority pursuant to a ruling request filed
by or on behalf of the Baxter Group with respect to the Transactions (including any supplemental rulings). 
 “Parties” has
the meaning set forth in the Preamble. 
 “Person” means an individual, a partnership, a corporation, a limited liability
company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization or a governmental entity or any department, agency or political subdivision thereof, without regard to whether any entity is treated as
disregarded for U.S. federal income tax purposes. 
 “Pharma Fee” means the “Branded Prescription Drug Fee” as
defined in the Treasury Regulations Section 51.1, et seq. 
 “Post-Distribution Tax Period” means any Tax Period
beginning after the Distribution Date, and, in the case of any Straddle Period, the portion of such Straddle Period beginning the day after the Distribution Date. 

“Pre-Distribution Tax Period” means any Tax Period ending on or before the Distribution Date, and, in the case of any
Straddle Period, the portion of such Straddle Period ending on the Distribution Date. 
 “Property Tax” means any real,
personal and intangible ad valorem property Tax imposed by any Tax Authority, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 

“Proposed Acquisition Transaction” means a transaction or series of transactions (or any agreement, understanding or
arrangement, within the meaning of Section 355(e) of the Code and Treasury Regulation Section 1.355-7, or any other regulations promulgated thereunder, to enter into a transaction or series of transactions), whether such transaction is
supported by Baxalta management or shareholders, is a hostile acquisition, or otherwise, as a result of which Baxalta would merge or consolidate with any other Person or as a result of which one or more Persons would (directly or indirectly)
acquire, or have the right to acquire, from Baxalta and/or one or more holders of outstanding shares of Baxalta Capital Stock, a number of shares of Baxalta Capital Stock that would, when combined with any other changes in ownership of Baxalta
Capital Stock pertinent for purposes of Section 355(e) of the Code, comprise 40% or more of (a) the value of all outstanding shares of stock of Baxalta as of the date of such transaction, or in the case of a series of transactions, the
date of the last transaction of such series, or (b) the total combined voting power of all outstanding shares of voting stock of Baxalta as of the date of such 

  
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transaction, or in the case of a series of transactions, the date of the last transaction of such series. Notwithstanding the foregoing, a Proposed Acquisition Transaction shall not include
(x) the adoption by Baxalta of a shareholder rights plan or (y) issuances by Baxalta that satisfy Safe Harbor VIII (relating to acquisitions in connection with a person’s performance of services) or Safe Harbor IX (relating to
acquisitions by a retirement plan of an employer) of Treasury Regulation Section 1.355-7(d). For purposes of determining whether a transaction constitutes an indirect acquisition, any recapitalization resulting in a shift of voting power or any
redemption of shares of stock shall be treated as an indirect acquisition of shares of stock by the non-exchanging shareholders. This definition and the application thereof is intended to monitor compliance with Section 355(e) of the Code and
shall be interpreted accordingly. Any clarification of, or change in, the statute or regulations promulgated under Section 355(e) of the Code shall be incorporated in this definition and its interpretation. 

“Refund Recipient” has the meaning set forth in Section 2.08(a). 

“Representation Letters” means the representation letters and any other materials (including, without limitation, a Ruling
Request and any related supplemental submissions to the IRS) delivered or deliverable by Baxter and others in connection with the rendering by KPMG LLP or any other Tax Advisor, and/or the issuance by the IRS or any other Tax Authority, of the Tax
Opinions/Rulings. 
 “Retained Stock” has the meaning set forth in the Recitals. 

“Ruling Request” means any letter filed by Baxter with the IRS or any other Tax Authority requesting a ruling (including the
IRS Ruling and Other Rulings) regarding certain Tax consequences of the Transactions (including all attachments, exhibits, and other materials submitted with such ruling request letter) and any amendment or supplement to such ruling request letter.

 “Rulings” means, collectively, the IRS Ruling and the Other Tax Rulings and “Ruling” means any one of
them. 
 “Section 4.02(d) Acquisition Transaction” means any transaction or series of transactions that is not a Proposed
Acquisition Transaction but would be a Proposed Acquisition Transaction if the percentage reflected in the definition of Proposed Acquisition Transaction were 30% instead of 40%. 

“Separate Return” means a Baxter Separate Return or a Baxalta Separate Return, as the case may be. 

“Separation” has the meaning set forth in the Recitals. 

“Separation Taxes” means any Taxes (including, for the avoidance of doubt, Income Taxes and Transfer Taxes) imposed on any
member of the Baxter Group or Baxalta Group arising from, or attributable to, any transfer of assets or liabilities in the Separation that are incurred on or prior to the Distribution Date, or that otherwise relate to transactions occurring on or
prior to the Distribution Date. 

  
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 “Straddle Period” means any Tax Period that begins on or before and ends after
the Distribution Date. 
 “Subsequent Distributions” has the meaning set forth in the Recitals. 

“Tax” or “Taxes” means any income, gross income, gross receipts, profits, capital stock, franchise,
withholding, payroll, social security, workers compensation, unemployment, disability, property, ad valorem, value added, stamp, excise, severance, occupation, service, sales, use, license, lease, transfer, import, export, alternative minimum,
estimated or other tax (including any fee, assessment, or other charge in the nature of or in lieu of any tax), imposed by any governmental entity or political subdivision thereof, and any interest, penalty, additions to tax, or additional amounts
in respect of the foregoing. 
 “Tax Advisor” means, with respect to U.S. Tax matters, a U.S. Tax counsel of recognized
national standing, and, with respect to non-U.S. Tax Matters, a local Tax counsel or accountant of recognized national standing in the relevant jurisdiction. 

“Tax Attribute” means a net operating loss, net capital loss, overall foreign loss, unused investment credit, unused foreign
tax credit, excess charitable contribution, general business credit, research and development credit or any other Tax Item that could reduce a Tax or create a Tax benefit. 

“Tax Authority” means, with respect to any Tax, the governmental authority or political subdivision thereof that imposes such
Tax, and the agency (if any) charged with the collection of such Tax for such entity or subdivision. 
 “Tax Benefit”
means, with respect to a Tax Period, the amount by which the cash Tax liability of an entity (or of the consolidated or combined group of which it is a member) is reduced solely as a result of a Tax Item, or the amount of an actual Tax refund that
is generated solely as a result of such Tax Item (plus any related interest received from any Tax Authority), in either case, by comparing the cash Tax liability or actual Tax refund on the applicable Tax Return that would arise with and without the
Tax Item potentially giving rise to the Tax Benefit. 
 “Tax Contest” means an audit, review, examination, or any other
administrative or judicial proceeding with the purpose or effect of determining or redetermining any Tax (including any administrative or judicial review of any claim for refund). 

“Tax-Free Status” means the qualification of (I) the Separation and the Distribution (along with the Subsequent
Distributions and Debt-for-Equity Exchanges), taken together, (a) as a reorganization described in Sections 355(a) and 368(a)(1)(D) of the Code, (b) as a transaction in which the stock distributed thereby is “qualified property”
for purposes of Sections 355(d), 355(e) and 361(c) of the Code, (c) a transaction in which Baxter, Baxalta and the shareholders of Baxter recognize no income or gain for U.S. federal Income tax purposes pursuant to Sections 355, 361, and 1032
of the Code, other than, (x) in the case of Baxter and Baxalta, intercompany 

  
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items or excess loss accounts taken into account pursuant to the Treasury Regulations promulgated pursuant to Section 1502 of the Code, and (y) in the case of shareholders of Baxter,
any receipt of cash in lieu of fractional shares, and (II) any other transaction described in the Tax Opinions/Rulings in accordance with the treatment set forth therein. 

“Tax Incentive” means any Tax exemption, Tax holiday, Tax incentive, preferential Tax treatment, Tax deferral, Tax credit, or
other Tax reduction agreement relating to the Baxter Group or the Baxalta Group. 
 “Tax Item” means any item of income,
gain, loss, deduction, credit, recapture of credit, or any other item (including the basis or adjusted basis of property) which increases or decreases Taxes paid or payable in any taxable period. 

“Tax Law” means the law of any governmental entity or political subdivision thereof relating to any Tax. 

“Tax Opinions” means (i) the written opinion on the U.S. federal income taxation consequences of certain aspects of the
Transactions provided by KPMG LLP to any member of the Baxter Group and (ii) any other written opinions on the U.S. state, local, and non-U.S. tax consequences of certain aspects of the Transactions provided by any Tax Advisors to any member of
the Baxter Group, in either case, requested prior to the Distribution. 
 “Tax Opinions/Rulings” means the Tax Opinions
and/or the Rulings deliverable to any member of the Baxter Group in connection with the Transactions. 
 “Tax Period”
means, with respect to any Tax, the period for which the Tax is reported as provided under the Code or other applicable Tax Law. 

“Tax-Related Losses” means (a) all Taxes (including interest and penalties thereon) imposed pursuant to any settlement,
Final Determination, judgment or otherwise; (b) all accounting, legal and other professional fees, and court costs incurred in connection with such Taxes; and (c) all costs, expenses and damages associated with stockholder litigation or
controversies and any amount paid by Baxter (or any Baxter Affiliate) or Baxalta (or any Baxalta Affiliate) in respect of the liability of shareholders, whether paid to shareholders or to the IRS or any other Tax Authority, in each case, resulting
from the failure of the Transactions to have the tax treatment described in the Tax Opinions/Rulings. 
 “Tax Return” means
any report of Tax due, any claims for refund of Tax paid, any information return with respect to Tax, any election made with respect to Tax, or any other similar report, statement, declaration, or document required to be filed under the Code or
other Law with respect to Tax, including any attachments, exhibits, or other materials submitted with any of the foregoing, and including any amendments or supplements to any of the foregoing for any taxpayer or consolidated, combined, or unitary
group of taxpayers. 
 “Tax Return Preparer” means (i) with respect to any Tax Return that Baxter is responsible for
preparing under Section 3.01(a), Baxter, and (ii) with respect to any Tax Return that Baxalta is responsible for preparing under Section 3.01(b), Baxalta. 

“Transaction” has the meaning set forth in the Recitals. 

“Transaction Tax Contest” means a Tax Contest with the purpose of effect of determining or redetermining Taxes that could
give rise to Tax-Related Losses. 

  
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 “Transfer Taxes” means all transfer, sales, use, excise, stock, stamp, stamp
duty, stamp duty reserve, stamp duty land, documentary, filing, recording, registration, value-added and other similar Taxes (excluding, for the avoidance of doubt, any income, gains, profit or similar Taxes, however assessed). 

“Treasury Regulations” means the regulations promulgated from time to time under the Code as in effect for the relevant Tax
Period. 
 “Unqualified Tax Opinion” means an unqualified “will” opinion of a Tax Advisor, which Tax Advisor is
reasonably acceptable to Baxter, on which Baxter may rely to the effect that a transaction will not affect the Tax-Free Status. Any such opinion must assume that the Transactions would have qualified for Tax-Free Status if the transaction in
question did not occur. 
 ARTICLE II 

RESPONSIBILITY FOR TAX 

Section 2.01 General Rule. 

(a) Baxter Liability. Baxter shall be liable for, and shall indemnify and hold harmless the Baxalta Group from and against any liability
for, Taxes which are allocated to Baxter under this Article II. 
 (b) Baxalta Liability. Baxalta shall be liable for, and
shall indemnify and hold harmless the Baxter Group from and against any liability for, Taxes which are allocated to Baxalta under this Article II. 

Section 2.02 Income Taxes. Except as provided in Section 2.05, all Income Taxes of the Baxter Group and Baxalta Group
shall be allocated as follows: 
 (a) Current Income Taxes. 

(i) Joint Returns. Subject to Section 2.02(a)(iv) and Section 2.02(b), Baxter shall be
responsible for any and all Income Taxes (including estimated Income Taxes) shown as due and owing on any originally filed Joint Return for any Tax Period beginning on or before the Distribution Date (including any originally filed Joint Return for
a Straddle Period). 
 (ii) Baxter Separate Returns. Subject to Section 2.02(a)(iv) and
Section 2.02(b), Baxter shall be responsible for any and all Income Taxes (including estimated Income Taxes) shown as due and owing on any originally filed Baxter Separate Return for any Tax Period beginning on or before the Distribution
Date (including any originally filed Baxter Separate Return for a Straddle Period). 
 (iii) Baxalta Separate Returns.
Subject to Section 2.02(a)(iv) and Section 2.02(b), Baxalta shall be responsible for any and all Income Taxes (including estimated Income Taxes) shown as due and owing on any originally filed Baxalta Separate Return for any
Tax Period beginning on or before the Distribution Date (including any originally filed Baxalta Separate Return for a Straddle Period). 

  
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 (iv) Certain Payments for Pre-Distribution Tax Periods. If any originally
filed Income Tax Return of the Baxter Group or Baxalta Group for any Tax Period beginning on or before the Distribution Date shows a payment of Income Taxes exceeding the amount set forth on Exhibit A, then (A) Baxter shall be
responsible for such payment to the extent attributable to the Baxter Business and (B) Baxalta shall be responsible for such payment to the extent attributable to the Baxalta Business, in each case, as determined pursuant to Section
2.06. 
 (b) Pre-Distribution Income Taxes due to Amended Tax Returns or Adjustments. If either the Baxter Group or the
Baxalta Group becomes liable for any Income Taxes for a Pre-Distribution Tax Period as a result of either an amended Tax Return (including any amended Joint Return or amended Separate Return) or a Final Determination or other adjustment made by a
Tax Authority, then: (A) Baxter shall be responsible for any and all such Income Taxes to the extent attributable to the Baxter Business, and (B) Baxalta shall be responsible for any and all such Income Taxes to the extent attributable to
the Baxalta Business, in each case, as determined pursuant to Section 2.06. 
 (c) Post-Distribution Income Taxes. Baxter
shall be responsible for any and all Income Taxes imposed on the Baxter Group for any Tax Period beginning after the Distribution Date (whether or not such Income Taxes are due and owing on any originally filed or amended Income Tax Return or as a
result of any Final Determination or other adjustment made by a Tax Authority). Baxalta shall be responsible for any and all Income Taxes imposed on the Baxalta Group for any Tax Period beginning after the Distribution Date (whether or not such
Income Taxes are due and owing on any originally filed or amended Income Tax Return or as a result of any Final Determination or other adjustment made by a Tax Authority). 

Section 2.03 Non-Income Taxes. Except as provided in Section 2.05, all Non-Income Taxes of the Baxter Group and
Baxalta Group shall be allocated as follows: 
 (a) Pre-Distribution Non-Income Taxes. For all Pre-Distribution Tax Periods,
(A) Baxter shall be responsible for any and all Non-Income Taxes that are attributable to the Baxter Business and (B) Baxalta shall be responsible for any and all Non-Income Taxes that are attributable to the Baxalta Business, in each
case, as determined pursuant to Section 2.06. 
 (b) Post-Distribution Non-Income Taxes. For all Post-Distribution Tax
Periods, (i) Baxter shall be responsible for any and all Non-Income Taxes imposed on the Baxter Group and (ii) Baxalta shall be responsible for any and all Non-Income Taxes imposed on the Baxalta Group. 

(c) MDET. Notwithstanding Section 2.03(a) and Section 2.03(b), Baxter shall be responsible for any and all MDET
imposed on the Baxter Group or the Baxalta Group for all Pre-Distribution Tax Periods; provided, that, Baxalta shall be responsible for any portion of the MDET imposed on the Baxter Group or the Baxalta Group for any Pre-Distribution Tax
Period that meets both of the following requirements: (i) such MDET is attributable to the Baxalta 

  
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Business (or is otherwise imposed with respect to a Baxalta asset or product code) and (ii) the aggregate amount of such MDET referred to in clause (i) with respect to such Tax
Period exceeds the amount set forth on Exhibit A. 
 (d) Pharma Fee. Notwithstanding Section 2.03(a) and
Section 2.03(b), for all Tax Periods, (i) Baxter shall be responsible for any Pharma Fee imposed on the Baxter Group and (ii) Baxalta shall be responsible for any Pharma Fee imposed on the Baxalta Group; provided,
however, that Baxalta shall be responsible for any Pharma Fee imposed on the Baxter Group for any Tax Period that is attributable to the Baxalta Business or otherwise results from assets, intellectual property, or other products owned by the
Baxalta Group immediately after the Distribution. 
 Section 2.04 Property Taxes. 

(a) Baxter shall be responsible for any and all Property Taxes imposed (whether in respect of a period, or a time, before or after the
Distribution), attributable to, or arising with respect to or as a result of, assets or activities of the Baxter Business, as determined pursuant to Section 2.06. 

(b) Baxalta shall be responsible for any and all Property Taxes imposed (whether in respect of a period, or a time, before or after the
Distribution), attributable to, or arising with respect to or as a result of, assets or activities of the Baxalta Business, as determined pursuant to Section 2.06. 

Section 2.05 Certain Transaction Taxes and Breaches of Covenants. 

(a) The Parties acknowledge and agree that this Agreement, including Article II, shall not apply with respect to (i) any and all
Taxes attributable to the ownership, operation or transfer of any Deferred Baxalta Business, for which the ICO Agreement shall govern, and (ii) any and all Employment Taxes, for which the Employee Matters Agreement shall govern. 

(b) Any Separation Taxes payable on or before the Distribution Date shall be allocated to Baxter. Any Separation Taxes payable after the
Distribution Date shall be allocated between Baxter and Baxalta based on the relative market capitalizations of Baxter and Baxalta, respectively, immediately following the Distribution. 

(c) Baxalta shall be responsible for (i) any and all Tax-Related Losses for which Baxalta is responsible pursuant to
Section 4.05 of this Agreement and (ii) any and all Taxes resulting from a breach by any member of the Baxalta Group of any covenant in this Agreement. 

(d) Baxter shall be responsible for (i) any and all Tax-Related Losses for which Baxter is responsible pursuant to
Section 4.05 of this Agreement and (ii) any and all Taxes resulting from a breach by any member of the Baxter Group of any covenant in this Agreement. 

  
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 Section 2.06 Determination of Tax Attributable to Baxter Business and Baxalta Business.

 (a) For purposes of this Article II, the amount of Taxes attributable to either the Baxter Business or Baxalta Business for any
Pre-Distribution Tax Period shall be determined by Baxter in a manner consistent with the past return filing practices of the Baxter Group with respect to the relevant Tax Return (including any past accounting methods, elections and conventions);
provided that Baxalta shall be entitled to participate in such determination. 
 (b) Without limiting the generality of
Section 2.06(a), the Parties agree that the following rules and principles shall apply for purposes of determining the amount of Tax attributable to a Business pursuant to Section 2.06(a): 

(i) In the event a Tax Item is not specifically attributable to either the Baxter Business or the Baxalta Business, such Tax
Item shall be allocated between the Businesses based on the relative market capitalizations of Baxter and Baxalta immediately following the Distribution. 

(ii) In the event a Non-Income Tax or Property Tax is attributable or traceable to a specific asset or product code (such as
the MDET or the Pharma Fee), then such Tax shall be attributable to the Business that owns the relevant asset or product code. 

(iii) The items set forth on Exhibit B shall be specifically attributable to the Business indicated on such Exhibit.

 (iv) With respect to any item of real property that is shared between the Businesses, any Property Taxes imposed on such
real property (whether in respect of a period, or a time, before or after the Distribution) shall be allocated between the Businesses based on headcount used in the relevant facility during the applicable Tax Period, if feasible, and using any other
reasonable methodology as the Parties may agree (such as square footage used by each Business during the applicable Tax Period), if use of headcount is not feasible. 

(v) In determining the amount of Taxes attributable to either the Baxter Business or Baxalta Business for any Pre-Distribution
Tax Period, the Parties shall include the results from operations arising from the Baxter Business and the Baxalta Business (or assets relating thereto) during such Tax Period without regard to whether such operations (or assets) were operated or
owned by a member of the Baxter Group or Baxalta Group. 
 Section 2.07 Proration of Taxes for Straddle Periods. 

(a) For U.S. federal income Tax purposes, the Tax Period of each member of the Baxalta Group that joined in the filing of the Baxter Federal
Consolidated Income Tax Return will close as of the end of the Distribution Date. Baxter and Baxalta shall take all commercially reasonable actions necessary or appropriate to close the taxable year of each member of the Baxalta Group for all other
U.S. Tax purposes as of the end of the Distribution Date to the extent permitted by applicable Law; provided that this Section 2.07(a) shall not be construed to require Baxter to change any of its Tax Periods. 

  
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 (b) For any Straddle Period, Taxes for the Pre-Distribution Tax Period shall be computed
(i) in the case of Taxes imposed on a periodic basis (such as real, personal and intangible property Taxes), on a daily pro rata basis and (ii) in the case of other Taxes generally, as if the Tax Period ended as of the close of business on
the Distribution Date and, in the case of any such other Taxes that are attributable to the ownership of any equity interest in a partnership, other “flowthrough” entity or “controlled foreign corporation” (within the meaning of
Section 957(a) of the Code or any comparable U.S. state or local or non-U.S. Tax Law), as if the Tax Period of that entity ended as of the close of business on the Distribution Date (whether or not such Taxes arise in a Straddle Period of the
applicable owner). 
 Section 2.08 Tax Refunds. 

(a) Subject to Section 2.08(b) and Section 2.09, if Baxter, Baxalta or any of their respective Affiliates receives any
refund of any Taxes for which the other Party is allocated under this Article II (a “Refund Recipient”), such Refund Recipient shall pay to the other Party the entire amount of the refund (including interest received from the
relevant Tax Authority, but net of any Taxes imposed with respect to such refund and any other reasonable costs) within 10 business days of receipt thereof; provided, however, that the other Party, upon the request of such Refund
Recipient, shall repay the amount paid to the other Party (plus any penalties, interest or other charges imposed by the relevant Tax Authority) in the event such Refund Recipient is required by applicable law to repay such refund. In the event a
Party would be a Refund Recipient but for the fact it elected to apply a refund to which it would otherwise have been entitled against a Tax liability arising in a subsequent taxable period, then such Party shall be treated as a Refund Recipient and
the economic benefit of so applying the refund shall be treated as a refund, and shall be paid within 10 business days of the due date of the Tax Return to which such refund is applied to reduce the subsequent Tax liability. 

(b) Notwithstanding anything in Section 2.08(a) to the contrary, no payments shall be required pursuant to
Section 2.08(a) for overpayments shown on any originally filed Income Tax Return for a Pre-Distribution Tax Period (but not including any amended Income Tax Return or claim for refund), unless the overpayment exceeds the amount set forth
on Exhibit A, in which case: (A) Baxalta shall be a Refund Recipient to the extent such overpayment is shown on a Baxalta Separate Return but is attributable to the Baxter Business and (B) Baxter shall be a Refund Recipient to the
extent such overpayment is shown on a Joint Return or Baxter Separate Return but is attributable to the Baxalta Business, in each case, as determined pursuant to Section 2.06. For the avoidance of doubt, any refund of Income Taxes for a
Pre-Distribution Tax Period received pursuant to a Final Determination or other adjustment by a Tax Authority, or pursuant to an amended Tax Return or claim for refund (but not an originally filed Income Tax Return), shall be governed by
Section 2.02(b) and Section 2.08(a). 
 Section 2.09 Carrybacks and Claims for Refund 

(a) Baxalta hereby agrees that if a Tax Return of a member of the Baxalta Group for Post-Distribution Tax Period reflects any Tax Attribute,
then the applicable member of the Baxalta Group shall elect to to relinquish, waive or otherwise forgo the right to carry back any such Tax Attribute to a Pre-Distribution Tax Period to the extent permissible under applicable Law. Such elections
shall include, but not be limited to, the election described in 

  
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Treasury Regulation Section 1.1502-21(b)(3)(ii)(B), and any analogous election under state, local, or foreign Income Tax Laws, to waive the carryback
of net operating losses or other Tax Attribute for U.S. federal Income Tax purposes. 
 (b) If, notwithstanding the provisions of
Section 2.09(a), Baxalta is required to carryback a Tax Attribute, Baxter shall promptly remit to Baxalta any Tax Benefit that the Baxter Group actually realizes with respect to any such carryback on an “as and when” realized
basis. 
 (c) If Baxalta has a Tax Attribute that must be carried back to any Pre-Distribution Tax Period, Baxalta shall notify Baxter in
writing that such Tax Attribute must be carried back. Such notification shall include a description in reasonable detail of the basis for any Tax Benefit and the amount thereof, and a certification by an appropriate officer of Baxalta setting forth
Baxalta’s belief (together with supporting analysis) that the Tax treatment of such Tax Attribute is more likely than not correct. 

(d) If Baxter pays any amount to Baxalta under Section 2.09(b) and, as a result of a subsequent Final Determination, a Tax Benefit
that gave rise to such payment is subsequently disallowed, Baxter shall notify Baxalta of the amount to be repaid to Baxter, and Baxalta shall then repay such amount to Baxter, together with any interest, fines, additions to Tax, penalties or any
additional amounts imposed by a Taxing Authority relating thereto. 
 (e) For purposes of this Agreement, a Tax Benefit shall be deemed to
have been realized at the time any actual refund of Taxes is received or applied against other cash Taxes due, or at the time of filing a Tax Return (including a Tax Return relating to estimated Taxes) on which a Tax Item is applied in reduction of
cash Taxes that would otherwise be payable. 
 Section 2.10 Allocation of Earnings and Profits and Tax Attributes. 

(a) The allocation of earnings and profits between the Baxter Group and the Baxalta Group, and the Tax basis of the assets and liabilities
transferred to Baxalta in connection with the Transactions, shall be determined in accordance with Exhibit C hereof. 
 (b) All Tax
Attributes determined on a consolidated or combined basis for Pre-Distribution Tax Periods shall be allocated to the Baxter Group and Baxalta Group in accordance with the Code and the Treasury Regulations (and any applicable state, local, or
non-U.S. law or regulation). Except as provided in Section 2.10(a), Baxter shall reasonably determine the amounts and proper allocation of such Tax Attributes as of the Distribution Date; provided that Baxalta shall be entitled to
participate in such determination. Baxter and Baxalta agree to compute their Tax liabilities for Post-Distribution Tax Periods consistent with that determination and allocation and consistent with Exhibit C. 

(c) The allocations made under this Section 2.10 shall be revised by Baxter to reflect each subsequent Final Determination that
affects such allocations; provided that Baxalta shall be entitled to participate in such determination. 

  
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 ARTICLE III 

TAX RETURNS, TAX CONTESTS AND 

OTHER ADMINISTRATIVE MATTERS 

Section 3.01 Responsibility of Preparing Tax Returns. 

(a) Except as described in Section 3.01(b), Baxter shall timely prepare (i) any Joint Returns or Separate Returns that are
required or permitted to be filed for any Tax Period beginning on or before the Distribution Date (including Straddle Periods), (ii) any Joint Returns or Baxter Separate Returns that are required or permitted to be filed for any Tax Period
beginning after the Distribution Date and (iii) any Tax Returns that are set forth on Schedule 3.01(a). If Baxalta is responsible for filing any such Tax Return under Section 3.03(a), Baxter shall, subject to
Section 3.01(c), promptly deliver such prepared Tax Return to Baxalta reasonably in advance of the applicable filing deadline. 

(b) Baxalta shall timely prepare (i) any Baxalta Separate Returns relating to Non-Income Taxes or Property Taxes that are required or
permitted to be filed for any Tax Period beginning on or before the Distribution Date (including Straddle Periods), (ii) any Baxalta Separate Returns that are required or permitted to be filed for any Tax Period beginning after the Distribution
Date and (iii) any Tax Returns that are set forth on Schedule 3.01(b). If Baxter is responsible for filing any such Tax Return under Section 3.03(a), Baxalta shall, subject to Section 3.01(c), promptly deliver
such prepared Tax Return to Baxter reasonably in advance of the applicable filing deadline. 
 (c) To the extent that any Tax Return
described in Section 3.01(a) or 3.01(b) directly relates to matters for which another Party may have an indemnification obligation to the Tax Return Preparer, or that may give rise to a refund to which that other Party would be
entitled under this Agreement, the Tax Return Preparer shall (i) prepare the relevant portions of the Tax Return on a basis consistent with past practice, except (A) as required by applicable Law or to correct any clear error, (B) as
a result of changes or elections made on any Joint Return that do not relate primarily to the Baxalta Group or (C) as mutually agreed by the Parties; (ii) notify the other Party of any such portions not prepared on a basis consistent with
past practice; (iii) provide the other Party a reasonable opportunity to review the relevant portions of the Tax Return; (iv) consider in good faith any reasonable comments made by the other Party; and (v) use commercially reasonable
efforts to incorporate, in the portion of such Tax Return related to the other Party’s potential indemnification obligation (or refund entitlement), any reasonable comments made by the other Party relating to the Tax Return Preparer’s
compliance with clause (i). The Parties shall attempt in good faith to resolve any issues arising out of the review of any such Tax Return. 

Section 3.02 Information Packages. Each Party (i) shall provide to the other Party (in the format reasonably
determined by the other Party) all information and assistance requested by the other Party as reasonably necessary to prepare any Tax Return described in Section 3.01(a) or Section 3.01(b) on a timely basis consistent with
the current practices of the Baxter Group in preparing Tax Returns and (ii) in so providing such information and assistance, shall use any systems and third party service providers as are consistent with the current practices of the Baxter
Group in preparing Tax Returns. 

  
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 Section 3.03 Filing of Tax Returns and Payment of Taxes. 

(a) Each Party shall execute and timely file each Tax Return that it is responsible for filing under applicable Law and shall timely pay to the
relevant Taxing Authority any amount shown as due on each such Tax Return; provided, that (i) no member of the Baxalta Group shall file any Adjustment Request with respect to a Joint Return, or otherwise alter any Joint Return, without
the prior written consent of Baxter, which shall not be unreasonably withheld or delayed. The obligation to make payments pursuant to this Section 3.03(a) shall not affect a Party’s right, if any, to receive payments under
Section 3.03(b) or otherwise be indemnified with respect to that Tax liability. 
 (b) In addition to its obligations under
Section 3.01(c), the relevant Tax Return Preparer shall, no later than 5 business days before the due date (including extensions) of any Tax Return described in Section 3.01(a) or (b), notify the other Party of any
amount (or any portion of any such amount) shown as due on that Tax Return for which the other Party must indemnify the Tax Return Preparer under this Agreement. The other Party shall pay such amount to the Tax Return Preparer no later than the due
date (including extensions) of the relevant Tax Return. A failure by an Indemnitee to give notice as provided in this Section 3.03(b) shall not relieve the Indemnifying Party’s indemnification obligations under this Agreement,
except to the extent that the Indemnifying Party shall have been actually prejudiced by such failure. 
 Section 3.04 Tax Contests

 (a) Baxter or Baxalta, as applicable, shall, within 10 business days of becoming aware of any Tax Contest (including a Transaction Tax
Contest) that could reasonably be expected to cause the other Party to have an indemnification obligation under this Agreement, notify the other Party of such Tax Contest and thereafter promptly forward or make available to the Indemnifying Party
copies of notices and communications relating to the relevant portions of such Tax Contest. A failure by an Indemnitee to give notice as provided in this Section 3.04(a) (or to promptly forward any such notices or communications) shall
not relieve the Indemnifying Party’s indemnification obligations under this Agreement, except to the extent that the Indemnifying Party shall have been actually prejudiced by such failure. 

(b) Baxter and Baxalta each shall have the exclusive right to control the conduct and settlement of any Tax Contest, other than a Transaction
Tax Contest, relating to any Tax Return that it is responsible for preparing pursuant to Section 3.01. Notwithstanding the foregoing, if the conduct or settlement of any portion or aspect of any such Tax Contest could reasonably be
expected to cause a Party to have an indemnification obligation under this Agreement, then (i) the Indemnifying Party shall have the right to share joint control over the conduct and settlement of that portion or aspect and (ii) whether or
not the Indemnifying Party exercises that right, the Indemnitee shall not accept or enter into any settlement without the consent of the Indemnifying Party, which shall not be unreasonably withheld or delayed. 

  
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 (c) Baxter and Baxalta shall have the right to control jointly the conduct and settlement of any
Transaction Tax Contest. Notwithstanding the foregoing, Baxter shall be entitled to control exclusively the conduct and settlement of any Transaction Tax Contest if Baxter notifies Baxalta that (notwithstanding the rights and obligations of the
Parties under this Agreement) Baxter agrees to pay (and indemnify Baxalta against) any Transaction Taxes resulting from such Transaction Tax Contest. 

(d) In any case where the Parties control jointly the conduct and settlement of any Tax Contest (or portion or aspect thereof):
(i) neither Party shall accept or enter into any settlement of such Tax Contest (or the relevant portion or aspect thereof) without the consent of the other Party, which shall not be unreasonably withheld or delayed, (ii) both Parties
shall have a right to review and consent to, which consent shall not be unreasonably withheld or delayed, any correspondence or filings to be submitted to any Taxing Authority with respect to such Tax Contest (or the relevant portion or aspect
thereof) and (iii) both Parties shall have the right to attend any formally scheduled meetings with any Tax Authority or hearings. 

Section 3.05 Reliance by Baxter. If any member of the Baxalta Group supplies information to a member of the Baxter Group in
connection with a Tax liability and an officer of a member of the Baxter Group signs a statement or other document under penalties of perjury in reliance upon the accuracy of such information, then upon the written request of such member of the
Baxter Group identifying the information being so relied upon, the chief financial officer of Baxalta (or any officer of Baxalta as designated by the chief financial officer of Baxalta) shall certify in writing that to his or her knowledge (based
upon consultation with appropriate employees) the information so supplied is accurate and complete. Baxalta agrees to indemnify and hold harmless each member of the Baxter Group and its directors, officers and employees from and against any fine,
penalty, or other cost or expense of any kind attributable to a member of the Baxalta Group having supplied, pursuant to this Article III, a member of the Baxter Group with inaccurate or incomplete information in connection with a Tax
liability. 
 Section 3.06 Reliance by Baxalta. If any member of the Baxter Group supplies information to a member of the
Baxalta Group in connection with a Tax liability and an officer of a member of the Baxalta Group signs a statement or other document under penalties of perjury in reliance upon the accuracy of such information, then upon the written request of such
member of the Baxalta Group identifying the information being so relied upon, the chief financial officer of Baxter (or any officer of Baxter as designated by the chief financial officer of Baxter) shall certify in writing that to his or her
knowledge (based upon consultation with appropriate employees) the information so supplied is accurate and complete. Baxter agrees to indemnify and hold harmless each member of the Baxalta Group and its directors, officers and employees from and
against any fine, penalty, or other cost or expense of any kind attributable to a member of the Baxter Group having supplied, pursuant to this Article III, a member of the Baxalta Group with inaccurate or incomplete information in connection
with a Tax liability. 
 Section 3.07 Tax Incentives. Baxter or Baxalta, as applicable, shall (i) provide written notice to
the other Party describing any action that could reasonably be expected to cause the other Party to lose all or any part of, or otherwise affect the terms and conditions of, any Tax Incentive granted to the other Party by any Tax Authority, or that
could reasonably be expected to cause the other Party to repay any Tax Incentive previously granted by any Tax Authority and (ii) shall consult with the other Party regarding any such proposed action reasonably in advance of taking such action.

  
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 Section 3.08 Expenses and Applicability. After the Distribution, each Party shall
bear its own expenses in the course of any Tax Contest, other than expenses included in the definition of Tax-Related Losses. 
 ARTICLE
IV 
 TAX-FREE STATUS 

Section 4.01 Tax Opinions/Rulings and Representation Letters. Each of Baxter and Baxalta hereby represents and agrees that
(i) it has or will read the Representation Letters deliverable to the applicable Tax Advisors in connection with the rendering of the Tax Opinions prior to the date submitted and has or will read the Representation Letters (including the Ruling
Request) delivered to the IRS or other Tax Authorities in connection with obtaining the Rulings prior to the date of this Agreement and (ii) subject to any qualifications therein, all information contained in such Representation Letters and
Rulings that concerns or relates to such Party or its Affiliates will be true, correct and complete 
 Section 4.02 Restrictions on
Baxalta. 
 (a) Baxalta agrees that it will not take or fail to take, or permit any member of the Baxalta Group to take or fail to take,
any action where such action or failure to act would be inconsistent with or cause to be untrue any material, information, covenant or representation in any Representation Letters or Tax Opinions/Rulings. Baxalta agrees that it will not take or fail
to take, or permit any member of the Baxalta Group to take or fail to take, any action which prevents or could reasonably be expected to prevent (i) the Tax-Free Status, or (ii) any transaction
contemplated by the Distribution Agreement which is intended by the parties to be tax-free (including, but not limited to, those transactions which the IRS has ruled qualify for tax-free treatment in the IRS Ruling) from so qualifying, including, in
the case of Baxalta, issuing any Baxalta Capital Stock that would prevent the Distribution from qualifying as a tax-free distribution within the meaning of Section 355 of the Code. 

(b) Baxalta agrees that, from the date hereof until the first day after the two-year anniversary of the Distribution Date, it will
(i) maintain its status as a company engaged in the Active Trade or Business for purposes of Section 355(b)(2) of the Code, (ii) not engage in any transaction that would result in it ceasing to be a company engaged in the Active Trade
or Business for purposes of Section 355(b)(2) of the Code, (iii) cause each Baxalta Affiliate whose Active Trade or Business is relied upon in the Tax Opinions/Rulings for purposes of qualifying a transaction as tax-free pursuant to
Section 355 of the Code or other Tax Law to maintain its status as a company engaged in such Active Trade or Business for purposes of Code Section 355(b)(2) of the Code and any such other applicable Tax Law, and (iv) not engage in any
transaction or permit any Baxalta Affiliate to engage in any transaction that would result in a Baxalta Affiliate described in clause (iii) hereof ceasing to be a company engaged in the relevant Active Trade or Business for purposes of
Section 355(b)(2) or such other applicable Tax Law, in each case, taking into account Section 355(b)(3) of the Code for purposes of clauses (i) through (iv) hereof 

  
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 (c) Baxalta agrees that, from the date hereof until the first day after the two-year anniversary
of the Distribution Date, it shall not (and shall not cause or permit of of its Affiliates to), in a single transaction or series of transactions: 

(i) enter into any Proposed Acquisition Transaction or, to the extent Baxalta has the right to prohibit any Proposed
Acquisition Transaction, permit any Proposed Acquisition Transaction to occur (whether by (A) redeeming rights under a shareholder rights plan, (B) finding a tender offer to be a “permitted offer” under any such plan or otherwise
causing any such plan to be inapplicable or neutralized with respect to any Proposed Acquisition Transaction, (C) approving any Proposed Acquisition Transaction, whether for purposes of Section 203 of the DGCL or any similar corporate
statute, any “fair price” or other provision of Baxalta’s charter or bylaws or otherwise, or (D) amending its certificate of incorporation to declassify its Board of Directors or approving any such amendment, or otherwise), 

(ii) liquidate, partially liquidate, merge or consolidate with any other Person that was not already wholly owned by a member
of the Baxalta Group prior to such transaction; 
 (iii) sell or transfer (other than sales or transfers of inventory in the
ordinary course of business) all or substantially all of the assets that were transferred to Baxalta as part of the Contribution or sell or transfer (or cause or permit to be transferred) 25% or more of the gross assets of any Active Trade or
Business or 25% or more of the consolidated gross assets of Baxalta and its Affiliates (such percentages to be measured based on fair market value as of the Distribution Date), 

(iv) redeem or otherwise repurchase (directly or through an Affiliate) any Baxalta Capital Stock, or rights to acquire Baxalta
Capital Stock, except to the extent such repurchases satisfy Section 4.05(1)(b) of Revenue Procedure 96-30 (as in effect prior to the amendment of such Revenue Procedure by Revenue Procedure 2003-48), 

(v) amend its certificate of incorporation (or other organizational documents), or take any other action, whether through a
stockholder vote or otherwise, affecting the voting rights of Baxalta Capital Stock (including, without limitation, through the conversion of one class of Baxalta Capital Stock into another class of Baxalta Capital Stock); or 

(vi) take any other action or actions (including any action or transaction that would be reasonably likely to be inconsistent
with any representation made in the Representation Letters or the Tax Opinions/Rulings) which in the aggregate (and taking into account any other transactions described in this subparagraph (c)) would be reasonably likely to have the effect of
causing or permitting one or more persons (whether or not acting in concert) to acquire directly or indirectly stock representing a Fifty-Percent or Greater Interest in Baxalta or otherwise jeopardize the Tax-Free Status; 

  
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 unless, prior to taking any such action set forth in the foregoing clauses (i) through (vi),
(A) Baxalta shall have requested that Baxter obtain a Ruling in accordance with Section 4.04(b) and (d) of this Agreement to the effect that such transaction will not affect the Tax-Free Status and Baxter shall have
received such a Ruling in form and substance reasonably satisfactory to Baxter (and in determining whether a Ruling is reasonably satisfactory, Baxter may consider, among other factors, the appropriateness of any underlying assumptions and
management’s representations made in connection with such Ruling), (B) Baxalta shall provide Baxter with an Unqualified Tax Opinion in form and substance reasonably satisfactory to Baxter (and in determining whether an opinion is
reasonably satisfactory, Baxter may consider, among other factors, the appropriateness of any underlying assumptions and management’s representations if used as a basis for the opinion and Baxter may determine that no opinion would be
acceptable to Baxter) or (C) Baxter shall have waived the requirement to obtain such Ruling or Unqualified Tax Opinion. 
 (d)
Certain Issuances of Baxalta Capital Stock. If Baxalta proposes to enter into any Section 4.02(d) Acquisition Transaction or, to the extent Baxalta has the right to prohibit any Section 4.02(d) Acquisition Transaction, proposes to
permit any Section 4.02(d) Acquisition Transaction to occur, in each case, during the period from the date hereof until the first day after the two-year anniversary of the Distribution Date, Baxalta shall provide Baxter, no later than ten days
following the signing of any written agreement with respect to the Section 4.02(d) Acquisition Transaction, with a written description of such transaction (including the type and amount of Baxalta Capital Stock to be issued in such transaction)
and a certificate of the Board of Directors of Baxalta to the effect that the Section 4.02(d) Acquisition Transaction is not a Proposed Acquisition Transaction or any other transaction to which the requirements of Section 4.02(d)
apply (a “Board Certificate”). 
 Section 4.03 Restrictions on Baxter. Baxter agrees that it will not take or
fail to take, or permit any member of the Baxter Group to take or fail to take, any action where such action or failure to act would be inconsistent with or cause to be untrue any material, information, covenant or representation in any
Representation Letters or Tax Opinions/Rulings. Baxter agrees that it will not take or fail to take, or permit any member of the Baxter Group to take or fail to take, any action which prevents or could reasonably be expected to prevent (i) the
Tax-Free Status, or (ii) any transaction contemplated by the Distribution Agreement which is intended by the parties to be tax-free (including, but not limited to, those transactions which the IRS has ruled qualify for tax-free treatment in the
IRS Ruling) from so qualifying, including, in the case of Baxter, issuing any Baxter Capital Stock that would prevent the Distribution from qualifying as a tax-free distribution within the meaning of Section 355 of the Code. 

Section 4.04 Procedures Regarding Opinions and Rulings. 

(a) If Baxalta notifies Baxter that it desires to take one of the actions described in clauses (i) through (vi) of
Section 4.02(c) (a “Notified Action”), Baxter and Baxalta shall reasonably cooperate to attempt to obtain the Ruling or Unqualified Tax Opinion referred to in Section 4.02(c), unless Baxter shall have waived
the requirement to obtain such Ruling or Unqualified Tax Opinion. 

  
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 (b) Baxter agrees that at the reasonable request of Baxalta pursuant to
Section 4.02(c), Baxter shall cooperate with Baxalta and use its reasonable best efforts to seek to obtain, as expeditiously as possible, a Ruling from the IRS or other applicable Tax Authority or an Unqualified Tax Opinion for the
purpose of permitting Baxalta to take the Notified Action. Further, in no event shall Baxter be required to file any Ruling Request under this Section 4.04(b) unless Baxalta represents that (i) it has read the Ruling Request, and
(ii) all information and representations, if any, relating to any member of the Baxalta Group, contained in the Ruling Request documents are (subject to any qualifications therein) true, correct and complete. Baxalta shall reimburse Baxter for
all reasonable costs and expenses incurred by the Baxter Group in obtaining a Ruling or Unqualified Tax Opinion requested by Baxalta within ten Business Days after receiving an invoice from Baxter therefor. 

(c) Baxter shall have the right to obtain a Ruling or an Unqualified Tax Opinion at any time in its sole and absolute discretion. If Baxter
determines to obtain a Ruling or an Unqualified Tax Opinion, Baxalta shall (and shall cause each Affiliate of Baxalta to) cooperate with Baxter and take any and all actions reasonably requested by Baxter in connection with obtaining the Ruling or
Unqualified Tax Opinion (including, without limitation, by making any representation or covenant or providing any materials or information requested by the IRS or Tax Advisor; provided that Baxalta shall not be required to make (or cause any
Affiliate of Baxalta to make) any representation or covenant that is inconsistent with historical facts or as to future matters or events over which it has no control). Baxter and Baxalta shall each bear its own costs and expenses in obtaining a
Ruling or an Unqualified Tax Opinion requested by Baxter. 
 (d) Baxalta hereby agrees that Baxter shall have sole and exclusive control
over the process of obtaining any Ruling, and that only Baxter shall apply for a Ruling. In connection with obtaining a Ruling pursuant to Section 4.04(b), (i) Baxter shall keep Baxalta informed in a timely manner of all material
actions taken or proposed to be taken by Baxter in connection therewith; (ii) Baxter shall (A) reasonably in advance of the submission of any Ruling Request documents provide Baxalta with a draft copy thereof, (B) reasonably consider
Baxalta’s comments on such draft copy, and (C) provide Baxalta with a final copy; and (iii) Baxter shall provide Baxalta with notice reasonably in advance of, and Baxalta shall have the right to attend, any formally scheduled meetings
with the IRS (subject to the approval of the IRS) that relate to such Ruling. Neither Baxalta nor any Affiliates of Baxalta shall seek any guidance from the IRS or any other Tax Authority (whether written, verbal or otherwise) at any time concerning
the Transactions. 
 Section 4.05 Liability for Tax-Related Losses. 

(a) Notwithstanding anything in this Agreement or the Distribution Agreement to the contrary, subject to Section 4.05(c), Baxalta
shall be responsible for, and shall indemnify and hold harmless Baxter and each of its Affiliates and each of their respective officers, directors and employees from and against, one hundred percent (100%) of any Tax-Related Losses that are
attributable to or result from any one or more of the following: (i) the acquisition (other than pursuant to the Transactions) of all or a portion of the stock and/or assets of Baxalta and/or its subsidiaries by any means whatsoever by any
Person, (ii) any negotiations, understandings, agreements or arrangements by Baxalta with respect to transactions or events (including, without limitation, stock issuances, pursuant to the exercise of stock options or

  
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otherwise, option grants, capital contributions or acquisitions, or a series of such transactions or events) that cause the Distribution to be treated as part of a plan pursuant to which one or
more Persons acquire directly or indirectly stock of Baxalta representing a Fifty-Percent or Greater Interest therein, (iii) any action or failure to act by Baxalta or a member of the Baxalta Group after the Distribution (including, without
limitation, any amendment to Baxalta’s certificate of incorporation (or other organizational documents), whether through a stockholder vote or otherwise) affecting the voting rights of Baxalta stock (including, without limitation, through the
conversion of one class of Baxalta Capital Stock into another class of Baxalta Capital Stock), (iv) any act or failure to act by Baxalta or any Baxalta Affiliate described in Section 4.02 (regardless whether such act or failure to
act is covered by a Ruling, Unqualified Tax Opinion or waiver described in clause (A), (B) or (C) of Section 4.02(c) or a Board Certificate described in Section 4.02(d)) or (v) any breach by Baxalta of its
agreement and representation set forth in Section 4.01. 
 (b) Notwithstanding anything in this Agreement or the Distribution
Agreement to the contrary, subject to Section 4.05(c), Baxter shall be responsible for, and shall indemnify and hold harmless Baxalta and its Affiliates and each of their respective officers, directors and employees from and against, one
hundred percent (100%) of any Tax-Related Losses that are attributable to, or result from any one or more of the following: (i) the acquisition (other than pursuant to to the Transactions) of all or a portion of the stock and/or assets of
Baxter and/or its subsidiaries by any means whatsoever by any Person, (ii) any negotiations, understandings, agreements or arrangements by Baxter with respect to transactions or events (including, without limitation, stock issuances, pursuant
to the exercise of stock options or otherwise, option grants, capital contributions or acquisitions, or a series of such transactions or events) that cause the Distribution to be treated as part of a plan pursuant to which one or more Persons
acquire directly or indirectly stock of Baxter representing a Fifty-Percent or Greater Interest therein, (iii) any action or failure to act by Baxter or a member of the Baxter Group after the Distribution (including, without limitation, any
amendment to Baxter’s certificate of incorporation (or other organizational documents), whether through a stockholder vote or otherwise) affecting the voting rights of Baxter stock (including, without limitation, through the conversion of one
class of Baxter Capital Stock into another class of Baxter Capital Stock), (iv) any act or failure to act by Baxter or any Baxter Affiliate described in Section 4.03, or (v) any breach by Baxter of its agreement and
representation set forth in Section 4.01. 
 (c) 

(i) To the extent that any Tax-Related Loss is subject to indemnity under both Sections 4.05(a) and
Section 4.05(b), responsibility for such Tax-Related Loss shall be shared by Baxter and Baxalta according to relative fault. 

(ii) Notwithstanding anything in Section 4.05(b) or Section 4.05(c)(i) or any other provision of this
Agreement or the Distribution Agreement to the contrary, with respect to (I) any Tax-Related Loss resulting from Section 355(e) of the Code (other than as a result of an acquisition of a Fifty-Percent or Greater Interest in Baxter) and
(II) any other Tax-Related Loss resulting (for the absence of doubt, in whole or in part) from an acquisition after the Distribution of any stock or assets of Baxalta (or any Baxalta Affiliate) by any means whatsoever by any Person or any action or
failure to act by 

  
 22 

 
Baxalta affecting the voting rights of Baxalta stock, Baxalta shall be responsible for, and shall indemnify and hold harmless Baxter and its Affiliates and each of their respective officers,
directors and employees from and against, one hundred percent (100%) of such Tax-Related Loss. 
 (iii) Notwithstanding
anything in Section 4.05(a) or Section 4.05(c)(i) or any other provision of this Agreement or the Distribution Agreement to the contrary, with respect to (I) any Tax-Related Loss resulting from Section 355(e) of the
Code (other than as a result of an acquisition of a Fifty-Percent or Greater Interest in Baxalta) and (II) any other Tax-Related Loss resulting (for the absence of doubt, in whole or in part) from an acquisition after the Distribution of any stock
or assets of Baxter (or any Baxter Affiliate) by any means whatsoever by any Person or any action or failure to act by Baxter affecting the voting rights of Baxter stock, Baxter shall be responsible for, and shall indemnify and hold harmless Baxalta
and its Affiliates and each of their respective officers, directors and employees from and against, one hundred percent (100%) of such Tax-Related Loss. 

Section 4.06 Reporting. Baxter and Baxalta shall (i) timely file any appropriate information and statements (including as
required by Section 6045B of the Code and Section 1.355-5 and, to the extent applicable, Section 1.368-3 of the Regulations) to report each step of the Transactions as qualifying for its Tax-Free Status and (ii) absent a change
of Law or an applicable Final Determination otherwise, not take any position on any Tax Return that is inconsistent with such qualification. Each Party covenants and agrees that it will make a protective election under Section 336(e) of the
Code with respect to the Transactions. 
 ARTICLE V 

PROCEDURAL MATTERS 

Section 5.01 Cooperation. Each Party shall cooperate with reasonable requests from the other Party in matters covered by this
Agreement, including in connection with the preparation and filing of Tax Returns, the calculation of Taxes, the determination of the proper financial accounting treatment of Tax Items and the conduct and settlement of Tax Contests. Such cooperation
shall include: 
 (a) retaining until the expiration of the relevant statute of limitations (including extensions) records, documents,
accounting data, computer data and other information (“Records”) necessary for the preparation, filing, review, audit or defense of all Tax Returns relevant to an obligation, right or liability of either Party under this Agreement;

 (b) providing the other Party reasonable access to Records and to its personnel (ensuring their cooperation) and premises during normal
business hours to the extent relevant to an obligation, right or liability of the other Party under this Agreement or otherwise reasonably required by the other Party to complete Tax Returns or to compute the amount of any payment contemplated by
this Agreement; and 

  
 23 

 (c) notifying the other Party prior to disposing of any relevant Records and affording the
other Party the opportunity to take possession or make copies of such Records at its discretion. 
 Section 5.02
Interest. Any payments required pursuant to this Agreement that are not made within the time period specified in this Agreement shall bear interest from the end of that period. Interest required to be paid pursuant to this Agreement shall,
unless otherwise specified, be computed at the rate and in the manner provided in the Code for interest on underpayments and overpayments, as applicable, for the relevant period. 

Section 5.03 Indemnification Claims and Payments. 

(a) An Indemnitee shall be entitled to make a claim for payment with respect to Taxes under this Agreement when the Indemnitee determines that
it is entitled to such payment and is able to calculate with reasonably accuracy the amount of such payment. Except as otherwise provided in Section 3.03(b), the Indemnitee shall provide to the Indemnifying Party notice of such claim
within 60 business days of the first date on which it so becomes entitled to make such claim. Such notice shall include a description of such claim and a detailed calculation of the amount claimed. 

(b) Except as otherwise provided in Section 3.03(b), the Indemnifying Party shall make the claimed payment to the Indemnitee
within 30 business days after receiving such notice, unless the Indemnifying Party reasonably disputes its liability for, or the amount of, such payment. 

(c) A failure by an Indemnitee to give notice as provided in Section 3.03(b) or 5.03(a) shall not relieve the Indemnifying
Party’s indemnification obligations under this Agreement, except to the extent that the Indemnifying Party shall have been actually prejudiced by such failure. 

(d) Nothing in this Section 5.03 shall prejudice a Party’s right to receive payments pursuant to Section 3.03(b).

 Section 5.04 Treatment of Indemnity Payments. In the absence of any change in Tax treatment under the Code or other
applicable Tax Law and except as provided in Section 5.02, any payments made by a Company under this Agreement shall be reported for Tax purposes by the payor and the recipient as distributions or capital contributions, as appropriate,
occurring immediately before the Distribution (but only to the extent that the payment does not relate to a Tax allocated to the payor in accordance with Section 1552 of the Code or the regulations thereunder or Treasury Regulation
Section 1.1502-33(d) (or under corresponding principles of other applicable Tax Laws)) or as payments of an assumed or retained liability. 

Section 5.05 Tax Gross-Up. If (i) notwithstanding the manner in which any payment under this Agreement is reported, there is
a Final Determination with respect to the Tax liability of a Party as a result of its receipt of a payment pursuant to this Agreement or (ii) any deduction or withholding is required by Law to be made from any payment (other than an interest
payment) under this Agreement, such payment shall be appropriately adjusted so that the amount of such payment, reduced by the amount of all Income Taxes payable with respect to the receipt thereof 

  
 24 

 
or the amount of all deduction or withholding required by Law with respect to such payment, as applicable (in each case, taking into account all correlative Tax Benefits resulting from the
payment of such Income Taxes), shall equal the amount of the payment which the Party receiving such payment would otherwise be entitled to receive pursuant to this Agreement. 

Section 5.06 Dispute Resolution. Notwithstanding Section 6.06, but subject to Section 6.16, any and all
disputes between Baxter and Baxalta arising out of any provision of this Agreement shall be resolved through the procedures provided in Article VII of the Distribution Agreement. 

ARTICLE VI 

MISCELLANEOUS 

Section 6.01 Termination. This Agreement will terminate without further action at any time before the Distribution upon
termination of the Distribution Agreement. If terminated, no Party will have any Liability of any kind to the other Party or any other Person on account of this Agreement, except as provided in the Distribution. 

Section 6.02 Survival. Except as expressly set forth in this Agreement, the covenants and indemnification obligations in this
Agreement shall survive the Distribution and shall remain in full force and effect. 
 Section 6.03 Distribution Agreement. The
Parties agree that, in the event of a conflict between the terms of this Agreement and the Distribution Agreement with respect to the subject matter hereof, the terms of this Agreement shall govern. 

Section 6.04 Confidentiality. Each Party hereby acknowledges that confidential Information of such Party or its Subsidiaries may
be exposed to employees and agents of the other Party or its Subsidiaries as a result of the activities contemplated by this Agreement. Each Party agrees, on behalf of itself and its Subsidiaries, that such Party’s obligations with respect to
Information and data of the other Party or its Subsidiaries shall be governed by the Distribution Agreement. 
 Section 6.05
Counterparts; Entire Agreement. 
 (a) This Agreement may be executed in one or more counterparts, all of which counterparts shall
be considered one and the same agreement, and shall become effective when one or more counterparts have been signed by each Party and delivered to the other Party. This Agreement may be executed by facsimile or PDF signature and a facsimile or PDF
signature shall constitute an original for all purposes. 
 (b) This Agreement, the Separation Agreement, the other Ancillary Agreements and
the Appendices, Exhibits and Schedules hereto and thereto contain the entire agreement between the Parties with respect to the subject matter hereof and supersede all previous agreements, negotiations, discussions, writings, understandings,
commitments and conversations with respect to such subject matter, and there are no agreements or understandings between the Parties with respect to the subject matter hereof other than those set forth or referred to herein or therein. 

  
 25 

 Section 6.06 Governing Law. This Agreement shall be governed by and
construed and interpreted in accordance with the Laws of the State of Delaware, irrespective of the choice of Laws and principles of the State of Delaware, as to all matters, including matters of validity, construction, effect, enforceability,
performance and remedies. 
 Section 6.07 Waiver of Jury Trial. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY
CONTROVERSY THAT MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (i) NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE OTHER PARTY
WOULD NOT, IN THE EVENT OF ANY LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (ii) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (iii) EACH PARTY MAKES THIS WAIVER VOLUNTARILY AND (iv) EACH PARTY HAS
BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 6.07. 

Section 6.08 No Double Recovery. No provision of this Agreement shall be construed to provide an indemnity or other
recovery for any costs, damages, or other amounts for which the damaged Party has been fully compensated under any other provision of this Agreement or under any other agreement or action at law or equity. Unless expressly required in this
Agreement, a Party shall not be required to exhaust all remedies available under other agreements or at law or equity before recovering under the remedies provided in this Agreement. 

Section 6.09 Assignability. Neither this Agreement nor any of the rights, interests or obligations under this
Agreement shall be assigned, in whole or in part, by operation of law or otherwise by either Party without the prior written consent of the other Party. Any purported assignment without such consent shall be void. Subject to the preceding sentences,
this Agreement will be binding upon, inure to the benefit of, and be enforceable by, the Parties and their respective successors and assigns. Notwithstanding the foregoing, either Party may assign this Agreement without consent in connection with
(a) a merger transaction in which such Party is not the surviving entity and the surviving entity acquires or assumes all or substantially all of such Party’s assets, or (b) the sale of all or substantially all of such Party’s
assets; provided, however, that the assignee expressly assumes in writing all of the obligations of the assigning Party under this Agreement, and the assigning Party provides written notice and evidence of such assignment and assumption to
the non-assigning Party. No assignment permitted by this Section 6.09 shall release the assigning Party from liability for the full performance of its obligations under this Agreement. 

Section 6.10 Authority. Each of the Parties represents to the other that (a) it has the corporate or other requisite
power and authority to execute, deliver and perform this Agreement, (b) the execution, delivery and performance of this Agreement have been duly authorized by all necessary corporate or other action, (c) it has duly and validly executed and
delivered this 

  
 26 

 
Agreement, and (d) this Agreement is a legal, valid and binding obligation, enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting creditors’ rights generally and general equity principles. 
 Section 6.11
Third-Party Beneficiaries. The provisions of this Agreement are solely for the benefit of the Parties hereto and are not intended to confer upon any Person except the Parties hereto any rights or remedies hereunder and
(b) there are no third-party beneficiaries of this Agreement and this Agreement shall not provide any third Person with any remedy, claim, liability, reimbursement, cause of action or other right in excess of those existing without reference to
this Agreement. 
 Section 6.12 Notices. Each party giving any notice required or permitted under this Agreement
shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by overnight courier service, by e-mail (followed by delivery of an original via overnight courier service) or
by registered or certified mail (postage prepaid, return receipt requested) to the respective Parties at the following addresses (or at such other address for a Party as shall be specified in a Notice): 

If to Baxter: 
 Baxter
International Inc. 
 One Baxter Parkway 

Deerfield, Illinois 60015 
 Attn:
General Counsel 
 E-mail: general_counsel@baxter.com 

If to Baxalta: 
 Baxalta
Incorporated 
 One Baxter Parkway 

Deerfield, Illinois 60015 
 Attn:
General Counsel 
 E-mail: general_counsel@baxalta.com 

A party may change the address for receiving notices under this Agreement by providing written notice of the change of address to the other. 

Section 6.13 Severability. If any provision of this Agreement or the application thereof to any Person or circumstance is
determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the application of such provision to Persons or circumstances or in jurisdictions other than those as to which it has been held
invalid or unenforceable, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby, so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner
materially adverse to either Party. Upon any such determination, any such provision, to the extent determined to be invalid, void or unenforceable, shall be deemed replaced by a provision that such court determines is valid and enforceable and that
comes closest to expressing the intention of the invalid, void or unenforceable provision. 

  
 27 

 Section 6.14 Headings. The article, section and paragraph headings
contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 

Section 6.15 Waivers of Default. No failure or delay of either Party (or its Affiliates) in exercising any right or
remedy under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such right or power, or any course of conduct, preclude any
other or further exercise thereof or the exercise of any other right or power. Waiver by either Party of any default by the other Party of any provision of this Agreement shall not be deemed a waiver by the waiving Party of any subsequent or other
default. 
 Section 6.16 Specific Performance. In the event of any actual or threatened default in, or breach of,
any of the terms, conditions and provisions of this Agreement, Baxter shall have the right to specific performance and injunctive or other equitable relief of its rights under this Agreement, in addition to any and all other rights and remedies at
law or in equity, and all such rights and remedies shall be cumulative. Baxalta shall not oppose the granting of such relief on the basis that money damages are an adequate remedy. The Parties agree that the remedies at law for any breach or
threatened breach hereof, including monetary damages, are inadequate compensation for any loss and that any defense in any action for specific performance that a remedy at law would be adequate is waived. Any requirements for the securing or posting
of any bond with such remedy are waived. The Parties acknowledge and agree that the right of specific enforcement is an integral part of this Agreement and without that right, neither Baxter nor Baxalta would have entered into this Agreement. 

Section 6.17 Amendments. No provisions of this Agreement shall be deemed waived, amended, supplemented or modified
by either Party, unless such waiver, amendment, supplement or modification is in writing and signed by the authorized representative of each Party. 

Section 6.18 Compliance by Affiliates. The Parties shall cause their respective Affiliates to comply with this
Agreement. 

  
 28 

 IN WITNESS WHEREOF, the Parties have executed and delivered this Agreement as of the day and year
first written above. 
  

			
	BAXTER INTERNATIONAL INC.
		
	By:		  

		
	Name:		  

		
	Title:		  

	
	BAXALTA INCORPORATED
		
	By:		  

		
	Name:		  

		
	Title:		  

 [Signature Page to Tax Matters Agreement]EX-10.4

 EXHIBIT 10.4 

MANUFACTURING AND SUPPLY AGREEMENT 

dated as of [—], 2015 

by and between 
 BAXTER
INTERNATIONAL INC. 
 and 

BAXALTA INCORPORATED 

 Table of Contents 

 

									
	 	 	 	  	 	  	Page	 
	ARTICLE I DEFINITIONS; RULES OF CONSTRUCTION	  	 	1	  
				
	 1.1
	 		  	 Definitions
	  	 	1	  
	 1.2
	 		  	 Other Terms
	  	 	5	  
	 1.3
	 		  	 Rules of Construction
	  	 	5	  
		
	ARTICLE II MANUFACTURING	  	 	5	  
				
	 2.1
	 		  	 General
	  	 	5	  
	 2.2
	 		  	 No Exclusivity
	  	 	6	  
	 2.3
	 		  	 Volume Limitation; Capacity; Projects
	  	 	6	  
	 2.4
	 		  	 Product Improvements, Line Extensions and Additional Supplied Products
	  	 	8	  
	 2.5
	 		  	 Production Facilities
	  	 	10	  
	 2.6
	 		  	 Subcontracting
	  	 	11	  
	 2.7
	 		  	 Purchaser’s Responsibilities
	  	 	11	  
	 2.8
	 		  	 Services
	  	 	12	  
	 2.9
	 		  	 Forecasts and Firm Orders
	  	 	12	  
	 2.10
	 		  	 Obsolescence; Purchaser-Approved Materials; Intermediate Supplied Products
	  	 	14	  
	 2.11
	 		  	 Storage and Handling
	  	 	16	  
	 2.12
	 		  	 Shipments; Title
	  	 	16	  
	 2.13
	 		  	 Customs
	  	 	16	  
	 2.14
	 		  	 Labeling of Supplied Product
	  	 	17	  
	 2.15
	 		  	 Obligations Regarding Dedicated Equipment
	  	 	18	  
		
	ARTICLE III RECEIPT AND REJECTION OF PRODUCT	  	 	19	  
				
	 3.1
	 		  	 General
	  	 	19	  
	 3.2
	 		  	 Replacement of Supplied Products
	  	 	19	  
	 3.3
	 		  	 Independent Testing
	  	 	20	  
		
	ARTICLE IV INTELLECTUAL PROPERTY	  	 	20	  
				
	 4.1
	 		  	 Purchaser Intellectual Property
	  	 	20	  
	 4.2
	 		  	 Improvements and Developments
	  	 	20	  
	 4.3
	 		  	 Rights to Certain Improvements and Developments
	  	 	21	  
	 4.4
	 		  	 Limited Right to Use
	  	 	22	  
	 4.5
	 		  	 No Conflict
	  	 	22	  
		
	ARTICLE V INITIAL TERM AND RENEWAL	  	 	22	  
				
	 5.1
	 		  	 Initial Term
	  	 	22	  
	 5.2
	 		  	 Renewal
	  	 	22	  

  
 -i- 

									
	ARTICLE VI PRICES		 	23	  
				
			6.1		General		 	23	  
			6.2		Price Adjustments		 	23	  
			6.3		Taxes		 	24	  
			6.4		Pass-Through Expenses		 	24	  
			6.5		Discard Adjustments		 	25	  
			6.6		Audit		 	25	  
		
	ARTICLE VII INVOICING AND PAYMENTS		 	26	  
				
			7.1		Invoicing		 	26	  
			7.2		Payment		 	26	  
			7.3		Overdue Payments		 	26	  
			7.4		Applicable Currency		 	26	  
			7.5		No Acknowledgement		 	27	  
		
	ARTICLE VIII WARRANTIES; REMEDIES; LIMITATION ON LIABILITY		 	27	  
				
			8.1		Producer Warranties		 	27	  
			8.2		Disclaimer		 	28	  
			8.3		Remedy For Breach		 	28	  
			8.4		Limitation on Liability		 	29	  
			8.5		Purchaser Warranties		 	29	  
		
	ARTICLE IX REVIEW MEETINGS		 	30	  
				
			9.1		Steering Committee		 	30	  
		
	ARTICLE X TERMINATION		 	30	  
				
			10.1		Normal Termination of Agreement		 	30	  
			10.2		Other Terminations; Consequences of Termination		 	31	  
			10.3		Transitional Support		 	35	  
		
	ARTICLE XI INDEMNITY		 	37	  
				
			11.1		Producer’s Obligation		 	37	  
			11.2		Purchaser’s Obligation		 	37	  
			11.3		Indemnification Obligations Net of Insurance Proceeds and Other Amounts		 	38	  
			11.4		Procedures for Indemnification of Third Party Claims		 	39	  
			11.5		Additional Matters		 	41	  
			11.6		Right of Contribution		 	42	  
			11.7		Covenant Not to Sue		 	42	  
			11.8		Sole Monetary Remedy		 	42	  
			11.9		Survival of Indemnities		 	42	  

  
 -ii- 

									
	ARTICLE XII REGULATORY MATTERS		 	43	  
				
			12.1		Producer’s Regulatory Responsibilities Regarding Supplied Products		 	43	  
			12.2		Purchaser’s Regulatory Responsibilities Regarding Purchaser Products		 	43	  
			12.3		Reference Filings		 	43	  
			12.4		No Debarred Service Provider		 	44	  
			12.5		Commercial Stability Costs		 	44	  
			12.6		Drug Master Files		 	44	  
		
	ARTICLE XIII INSURANCE		 	44	  
				
			13.1		Insurance		 	44	  
		
	ARTICLE XIV PRIORITY AND FORCE MAJEURE		 	45	  
				
			14.1		Priority		 	45	  
			14.2		Force Majeure		 	45	  
		
	ARTICLE XV CONFIDENTIALITY		 	45	  
				
			15.1		Confidentiality/Protective Arrangements		 	45	  
		
	ARTICLE XVI DISPUTE RESOLUTION		 	45	  
				
			16.1		General		 	45	  
			16.2		Specific Performance		 	45	  
		
	ARTICLE XVII ASSIGNMENT		 	46	  
				
			17.1		General		 	46	  
			17.2		Transfers by Producer		 	46	  
			17.3		Transfers by Purchaser		 	46	  
		
	ARTICLE XVIII MISCELLANEOUS PROVISIONS		 	47	  
				
			18.1		Notices		 	47	  
			18.2		Miscellaneous		 	47	  
			18.3		Course of Dealing		 	47	  
			18.4		Survival		 	48	  
			18.5		Joinder Agreements		 	48	  

  
 -iii- 

 SCHEDULES AND EXHIBITS 

Schedules: 
 Schedule A - Production Cost 

Exhibits: 
 Exhibit A – Form of Joinder Agreement

  
 -iv- 

 MANUFACTURING AND SUPPLY AGREEMENT 

THIS MANUFACTURING AND SUPPLY AGREEMENT (together with each of the Schedules and Exhibits hereto, and each Joinder Agreement executed in
connection herewith, this “Agreement”), dated as of [—], 2015, is by and between Baxter International Inc., a Delaware corporation (“Baxter”), Baxalta
Incorporated, a Delaware corporation (“Baxalta”) and each of their respective Subsidiaries (as defined in the Separation Agreement) that execute a Joinder Agreement (as defined herein) in accordance with the terms and conditions of
this Agreement. 
 RECITALS 

WHEREAS, pursuant to that certain Separation and Distribution Agreement by and between Baxter and Baxalta, dated as of [—], 2015 (the “Separation Agreement”) and the other Ancillary Agreements (as defined in the Separation Agreement, including the Conveyance and Assumption Instruments as defined in the
Separation Agreement), Baxter will transfer the Baxalta Business (as defined in the Separation Agreement) to Baxalta and Baxalta will cease to be a wholly owned subsidiary of Baxter, as more fully described therein. 

WHEREAS, pursuant to the Separation Agreement, Baxter and Baxalta or their respective Subsidiaries have agreed to enter into this Agreement or
a Joinder Agreement (as defined herein) hereto (and to which the terms of this Agreement are incorporated) pursuant to which Producer (as defined below) shall manufacture for, and supply to, Purchaser (as defined below) for a limited time certain
Supplied Products (as defined below). 
 AGREEMENT 

In consideration of the mutual undertakings contained herein and in the Separation Agreement, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Baxter and Baxalta agree as follows: 
 ARTICLE I 

DEFINITIONS; RULES OF CONSTRUCTION 

1.1 Definitions. Capitalized terms used but not otherwise defined in this Agreement shall have the meanings given to such terms in the
Separation Agreement (and any capitalized terms used within those defined terms in the Separation Agreement shall also have the meanings given to such terms in the Separation Agreement if not otherwise defined in this Agreement). As used in this
Agreement the following terms shall have the meanings set forth below: 
 “Act” shall mean the Federal Food, Drug and
Cosmetics Act, 21 U.S.C. §§301-397. 
 “Agreement” shall have the meaning set forth in the preamble to this
Agreement. 
 “Ancillary Agreements” shall have the meaning set forth in the Separation Agreement, and shall include the
Conveyance and Assumption Instruments (as defined in the Separation Agreement). 
 “Batch” shall have the meaning set forth
in the Quality Agreement. 

 “Baxalta” shall have the meaning set forth in the preamble to this Agreement.

 “Baxter” shall have the meaning set forth in the preamble to this Agreement. 

“Certification Body” means any recognized organization the primary responsibility of which is the assessment of objective
evidence regarding the compliance of medical products, medical devices or pharmaceuticals, and their associated safety, effectiveness, manufacture, and quality systems or governance to applicable regulations and recognized standards. 

“cGMP” means the then-current good manufacturing practices and/or quality system regulations (QSR) promulgated by the FDA or
other Medical Regulatory Authority under Law in effect from time to time. 
 “Contract Year” shall mean (i) the period
commencing on the date hereof and ending on December 31, 2015 and (ii) each subsequent calendar year (or portion thereof) until this Agreement (or, as applicable, the relevant Joinder Agreement with respect to any Supplied Product) is
terminated as provided in Article X. 
 “Dedicated Equipment” shall mean all equipment used exclusively for the
production of the Purchaser Products, including any equipment identified by the Parties as Dedicated Equipment from time to time. 

“Developments” shall have the meaning set forth in Section 4.2. 

“Effective Date” shall, as such term applies to this Agreement with respect to each Joinder Agreement, have the meaning set
forth in each such Joinder Agreement. 
 “FDA” shall mean the United States Food and Drug Administration, or any successor
Governmental Authority. 
 “Firm Orders” shall have the meaning set forth in Section 2.9. 

“Forecast” shall have the meaning set forth in Section 2.9. 

“Improvements” shall have the meaning set forth in Section 4.2. 

“Indemnifying Party” shall have the meaning set forth in Section 11.3. 

“Initial Term” shall have the meaning set forth in Section 5.1. 

“Insolvent Party” shall have the meaning set forth in Section 10.2. 

“Intellectual Property” shall mean all intellectual property throughout the world, including all U.S. and foreign
(i) patents, patent applications, invention disclosures, and all related continuations, continuations-in-part, divisionals, provisionals, renewals, reissues, re-examinations, additions, extensions (including all supplementary protection
certificates), (ii) trademarks, service marks, names, corporate names, trade names, domain names, logos, slogans, trade dress, design rights, and other similar designations of source or origin, together

  
 -2- 

 
with the goodwill symbolized by any of the foregoing, (iii) copyrights and copyrightable subject matter, (iv) rights in computer programs (whether in source code, object code, or other
form), algorithms, databases, compilations and data, technology supporting the foregoing, and all documentation, including user manuals and training materials, related to any of the foregoing, (v) trade secrets and all other confidential
information, ideas, know-how, inventions, proprietary processes, formulae, models, and methodologies, and (vi) all applications and registrations for the foregoing. 

“Intermediate Supplied Products” shall mean those materials, components or products described on the applicable Joinder
Agreement as “Intermediate Supplied Products,” and which become Intermediate Supplied Products only upon completion of the manufacturing processes and steps agreed by the Parties from time to time. 

“Invoiced Purchaser-Approved Materials” shall have the meaning set forth in Section 2.10(c). 

“Joinder Agreement” shall have the meaning set forth in Section 18.5. 

“Mark-Up Percentage” shall mean the percentage set forth on the applicable Joinder Agreement with respect to the Supplied
Products covered thereby; provided that the Parties agree that there shall be no Mark-Up Percentage with respect to any Intermediate Supplied Product. 

“Medical Regulatory Authority” shall mean any Governmental Authority the primary responsibility of which is to review the
safety, effectiveness, reliability, manufacture, sale or marketing of medical products, medical devices or pharmaceuticals for compliance with applicable regulatory requirements. 

“Non-Complying Products” shall have the meaning set forth in Section 8.3. 

“Notice” shall mean notice given in accordance with Section 18.1. 

“Parties” shall mean Baxter, Baxalta and except as the context clearly indicates otherwise, each applicable Producer and
Purchaser; provided that any consent to be received by from a Party hereto shall be deemed satisfied if such consent is received from Baxter (in the case of a Party that is an Affiliate of Baxter) or Baxalta (in the case of a Party that is an
Affiliate of Baxalta). 
 “Producer” shall mean, with respect to each Joinder Agreement, the Person named as the
“Producer” in such Joinder Agreement. 
 “Producer-Owned Improvements and Developments” shall have the meaning
set forth in Section 4.2. 
 “Producer Products” shall mean those Supplied Products that the Parties agree are
Producer Products from time to time. 

  
 -3- 

 “Production Cost” shall mean Producer’s costs of manufacturing the Supplied
Product or Intermediate Supplied Product, as determined and adjusted in accordance with Schedule A, and as used to determine the Unit Production Cost. 

“Production Cost Price Adjustment” shall have the meaning set forth in Section 6.2. 

“Production Facility” shall have the meaning as set forth in Section 2.5. 

“Purchaser” shall mean, with respect to each Joinder Agreement, the Person named as the “Purchaser” in such Joinder
Agreement. 
 “Purchaser-Approved Materials” shall have the meaning set forth in Section 2.10(c). 

“Purchaser-Owned Improvements and Developments” shall have the meaning set forth in Section 4.2. 

“Purchaser Products” shall mean the Supplied Products that the Parties have not otherwise agreed from time to time are
Producer Products. 
 “Purchaser Property” shall have the meaning set forth in Section 4.1. 

“Purchaser Supplied Components” shall mean the finished goods, raw materials, components, sub-assemblies and other products
and parts that the Parties agree are Purchaser Supplied Components from time to time. 
 “Quality Agreement” means the
Quality Agreement applicable to any Facility or Supplied Products. 
 “Receiving Site” shall have the meaning set forth in
Section 10.3. 
 “Renewal Term” shall have the meaning set forth in Section 5.2. 

“Restricted Information” shall have the meaning set forth in Section 6.6. 

“Review Meeting” shall have the meaning set forth in Section 9.1. 

“Sensitive Producer Technology” shall have the meaning set forth in Section 4.2. 

“Separation Agreement” shall have the meaning set forth in the preamble to this Agreement. 

“Specifications” with respect to any Supplied Product shall mean the product specifications with respect to such Supplied
Product maintained in Producer’s document management system at the Effective Date, as such specifications may be subsequently changed as provided in Section 2.4. 

“Steering Committee” shall have the meaning set forth in Section 9.1. 

“Subcontractor” shall have the meaning set forth in Section 2.6. 

  
 -4- 

 “Subcontractor Facility” shall have the meaning set forth in
Section 2.5. 
 “Supplied Products” shall mean the products (including raw materials, components,
sub-assemblies, finished goods and other products and parts) described on the applicable Joinder Agreement (or as otherwise agreed by the Parties from time to time) and as more fully described in the Specifications for such product(s). 

“Technical Support” shall have the meaning set forth in Section 10.3. 

“Term” shall mean the period commencing on the Effective Date and continuing until the termination of this Agreement as
provided in Article X. 
 “Third Party Claim” shall have the meaning set forth in Section 11.4. 

“Transfer” shall mean any assignment, transfer, sale or other disposition to a Person that is not an Affiliate of the
transferor, including any transfer by way of merger or consolidation or otherwise by operation of law. 
 “Unit Production
Cost” of any Supplied Product (or Intermediate Supplied Product) for each calendar year shall be the amount as determined in accordance with Schedule A; provided that the Parties may agree in writing to use a different Unit
Production Cost if they reasonably determine in good faith that the Unit Production Cost to be used for a given year does not accurately reflect the expected per unit cost to produce such Supplied Product or Intermediate Supplied Product;
provided that, for the avoidance of doubt, Production Costs included in the Unit Production Cost for any Intermediate Supplied Product shall be excluded from Production Costs of the Supplied Product for which the Intermediate Supplied Product
is used in order to avoid any duplication of costs included within the cost of any Supplied Product). 
 “Waste” shall mean
all reject or waste materials relating to the manufacturing of the Supplied Products, including chemical wastes, and excess or unusable products or materials. 

1.2 Other Terms. Terms defined in other Sections (or in any Schedule) will have the meanings therein provided. 

1.3 Rules of Construction. In this Agreement, unless a clear, contrary intention appears, Section 9.15 of the Separation
Agreement shall be incorporated by reference herein as though included in this Agreement (but for this purpose, only to the extent applicable to this Agreement, and not to the Separation Agreement or any other Ancillary Agreement). References to
Producer or Purchaser should be deemed to include the respective Affiliates of Producer or Purchaser through whom Producer or Purchaser, as the case may be, are acting in their performance hereunder. 

ARTICLE II 

MANUFACTURING 
 2.1
General. During the Term, Producer shall manufacture or cause to be manufactured for Purchaser or Purchaser’s Affiliates the Supplied Products pursuant to the terms of this Agreement. The terms of this Agreement shall be deemed to be
incorporated into each 

  
 -5- 

 
Joinder Agreement or any other written agreement with respect to the manufacturing and supply arrangements described herein that may be executed by the Parties and/or one or more of their
respective Affiliates. Any such Joinder Agreement or other written agreement shall constitute a separate and distinct agreement from this Agreement and from any other such agreement. Producer or Purchaser, as applicable, shall be entitled to enforce
the agreement constituted by such Joinder Agreement or other agreement to which it is a party with respect to this Agreement in its own name; provided that Section 9.12 of the Separation Agreement shall apply as though
it were a part of this Agreement (but for this purpose, only to the extent applicable to this Agreement, and not to the Separation Agreement or any other Ancillary Agreement). In the event of an express conflict between the terms of any Joinder
Agreement or other such written agreement and the terms of this Agreement, the terms of the Joinder Agreement or such other written agreement shall prevail over the inconsistent provisions of this Agreement. The terms of each such Joinder Agreement
or other written agreement shall be separate from each other Joinder Agreement or other written agreement, and any changes or amendments to this Agreement described in any such Joinder Agreement or other written agreement shall apply solely to such
Joinder Agreement or other written agreement, and not to any other Joinder Agreement or other written agreement (including the terms of this Agreement as incorporated into any such other Joinder Agreement or other written agreement). 

2.2 No Exclusivity. Except as expressly set forth in this Agreement, the applicable Joinder Agreement or other written agreement with
respect hereto or thereto, nothing in this Agreement shall preclude or limit (i) Producer’s right to manufacture, sell or supply Producer Products to any Third Party or (ii) Purchaser’s right to obtain Supplied Products from any
Third Party, regardless of whether Purchaser continues to purchase Supplied Products from Producer pursuant to the terms of this Agreement. 

2.3 Volume Limitation; Capacity; Projects. 

(a) Producer shall have no obligation to supply any Supplied Product to Purchaser in monthly volumes exceeding the respective maximum monthly
volumes, if any, as the Parties agree in writing from time to time with respect to such Supplied Product. Producer shall devote adequate manufacturing capacity to be capable of manufacturing and supplying Supplied Product to Purchaser in accordance
with the provisions of this Agreement; provided, however, that Producer shall not be required (in each case other than with respect to replacement equipment) to purchase any new equipment, install any equipment purchased or
requested by Purchaser or add (or, for clarity, allocate or dedicate) any additional manufacturing or storage capacity for the manufacturing and other activities to be carried out by Producer hereunder unless such purchases or additions are at
Purchaser’s cost (or otherwise shared with Producer in accordance with Section 2.3(c)(iii)) and would not unreasonably disrupt Producer’s other businesses (it being understood and agreed that devoting a comparable level of
resources as it would devote to a similar request applicable to its other businesses shall not be considered an unreasonable disruption). Producer shall store materials and finished goods for the production of Supplied Products in a manner and
volume consistent with its ordinary course. Storage capacity expected to be dedicated to storage of materials and finished goods for the production of Supplied Products may be agreed in writing by the applicable Parties from time to time. Producer
shall not have an obligation to provide additional storage capacity and any costs related to a storage capacity shortfall shall be borne by Purchaser, except in each case to the extent any 

  
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storage capacity shortfall results from any breach by Producer of this Agreement. To the extent additional storage capacity is needed, Producer shall promptly notify Purchaser after becoming
aware of such additional storage demand and Producer and Purchaser shall cooperate to determine the appropriate manner to manage such storage capacity shortfall; provided that failure to provide such notice shall not be deemed a breach of
this Agreement unless resulting from Producer’s gross negligence or willful misconduct. For the avoidance of doubt, Producer’s failure to supply as a result of a storage shortfall (other than due to Producer’s breach of this
Agreement) shall not be a breach or violation of this Agreement until such time as the Producer and Purchaser have agreed upon a solution (including third party storage at Purchaser’s cost) that allows Producer adequate storage for the
applicable materials and products. 
 (b) Producer will consider written requests by Purchaser to increase the maximum monthly volumes on a
case-by-case basis, and shall use commercially reasonable efforts to accommodate such increases to the extent it would have done so in accordance with historical practice prior to the Effective Date (and as through Producer and Purchaser were still
part of a single, consolidated group of companies), including by moving production of its own or other products to an alternative facility to the extent otherwise consistent with this sentence. Subject to the other terms herein, Producer shall use
good faith efforts to cooperate with Purchaser to accommodate increased volume requirements not otherwise contemplated in this Agreement or any other written agreement with respect to the applicable Supplied Products (including by adding equipment
or increasing the manufacturing footprint, to the extent such additions would not unreasonably disrupt the Producer’s other businesses), and Purchaser shall use good faith efforts to provide adequate lead-time and notice of any material changes
that it may expect from time to time in its historic or previously forecasted order quantities. Any such increase shall not unreasonably interrupt or divert resources from Producer’s operation of its other businesses. Producer and Purchaser
shall also cooperate to adjust such maximum monthly volumes (and corresponding capacity amounts) from time to time (with discussions to occur not less frequently than annually) to take into account any increases resulting from capacity
improvements or expansions and any decreases not arising from actions of Producer or its Affiliates or Subcontractors (for example, decreases in capacity resulting from new or increased regulatory requirements). Except to the extent of costs and
expenses otherwise agreed by the applicable Purchaser and Producer in writing from time to time (including pursuant to Section 2.3(c)(iii)), Purchaser shall be fully responsible for all costs and expenses incurred by Producer resulting
from any increase in capacity required to satisfy such increased maximum monthly volume, including any costs associated with the write-off of abandoned assets related to the project; provided that the applicable Parties shall first agree to
any such costs (or the project that will result in any such costs) prior to Producer incurring such expenses for which Purchaser will be responsible. 

(c) The Parties understand and agree that: 

(i) Producer is responsible hereunder for the maintenance, repair and any necessary replacement of the equipment and machinery
necessary to fulfill its obligations hereunder, subject to the requirements otherwise set forth herein with respect to mitigation of costs related thereto and the inclusion of such costs in Production Costs, as applicable. All such replacement,
repair and maintenance shall be undertaken to preserve ordinary course levels of quality and service unless otherwise agreed by the Parties. 

  
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 (ii) Capacity increases or other projects that are not merely intended to
preserve the ordinary course levels of quality and service that are requested by Purchaser and for which the benefits thereof are intended to be provided only to Purchaser and its controlled group Affiliates shall be paid by Purchaser. Purchaser
shall own such assets, but, for the avoidance of doubt, the repair and maintenance obligations with respect thereto shall be in accordance with Section 2.3(c)(i). 

(iii) Capacity increases or other projects that are not merely intended to preserve the ordinary course levels of quality and
service that are jointly agreed upon by Producer and Purchaser and for which each of them is expected to benefit will be paid on a shared basis as agreed by Producer and Purchaser. The relative benefits of such projects will be shared based on the
amount paid by each, and Producer and Purchaser will co-own the assets with respect to any such project in proportion to the amount paid by each in respect of such project unless otherwise agreed, and in connection with the agreement to undertake
any such joint project the Parties shall agree on the relative rights and restrictions with respect to any such co-owned equipment, machinery or other assets. For the avoidance of doubt, the repair and maintenance obligations with respect thereto
shall be in accordance with Section 2.3(c)(i). 
 2.4 Product Improvements, Line Extensions and Additional Supplied
Products. 
 (a) Except as expressly provided in this Agreement (including Section 2.8), Producer shall have no obligation,
express or implied, to develop or produce replacement products, product line extensions, product improvements or changes (including packaging and labeling), or new or other products in addition to the Supplied Products, nor shall Producer have any
responsibility to procure any regulatory approvals required in connection with the development, testing, manufacture, marketing or sale of any such additional products. Notwithstanding the foregoing, within a reasonable period of time (to be
determined by the Steering Committee) following receipt by Producer of a written request from Purchaser, Producer shall use commercially reasonable efforts (without unreasonably disrupting or diverting resources from Producer’s other ongoing
business operations) to develop and produce product improvements or changes and product line extensions as reasonably requested by Purchaser that are required by Law or are necessary to ensure the safety of Supplied Products; provided that
all costs and expenses incurred in connection with any such proposed improvement, change or product line extension shall be paid by Purchaser in accordance with Section 2.3(c)(ii) (including costs of capital equipment and process
upgrades and of obsolescence of materials, goods-in-process, and finished goods not suitable for use in the business or operations of Producer or any of its Affiliates to the extent such levels of inventory are consistent with the most recent
Forecast) and that, for the avoidance of doubt, Purchaser’s regulatory function will be responsible for licensing and other regulatory requirements in connection with any such change; provided further that, if any changes
made pursuant to this Section 2.4(a) are required by Law and such changes apply generally to other products produced by Producer at such Production Facility, then Purchaser shall pay a pro rata amount of the cost of such regulatory
changes based upon the proportion of time that such Production Facility is dedicated to the production of 

  
 -8- 

 
Supplied Products relative to the production of such other products similarly affected by the regulatory requirement. Producer agrees that in the case of product improvements or changes and
product line extensions required by Law or necessary to ensure the safety of Supplied Products, it will devote a comparable level of resources to implementing such product improvements or changes and product line extensions as it would devote to a
similar request applicable to its other businesses and that the commitment of such resources shall not be considered an unreasonable disruption or diversion of resources from Producer’s other ongoing business operations. The Parties shall enter
into or cause their applicable Affiliates to enter into an amendment or supplement to this Agreement or applicable Joinder Agreement or other written agreement to reflect any increase in Production Costs resulting from any such replacement products,
product line extensions, product improvements or other changes, and any modification to the applicable Specifications resulting from any improvement, change or product line extension implemented as provided in this Section 2.4(a). With
respect to any proposed improvements, changes or product line extensions not required by Law or necessary to ensure the safety of Supplied Products, the Steering Committee shall (to the extent not approved by Producer), in good faith, consider the
implementation of any such other proposed improvements, changes or product line extensions and cooperate to implement such changes at Purchaser’s cost to the extent commercially reasonable and not an unreasonable disruption or diversion of
resources from Producer’s other ongoing business operations; provided that any such improvements, changes or product line extensions not agreed by the Parties following Steering Committee review shall be referred to the Transition
Committee for further review and resolution. In the event that any improvement, change or product line extension not required by Law or necessary to ensure the safety of Supplied Products shall reach the commercialization stage, upon the request of
Purchaser, Producer shall negotiate with Purchaser in good faith to agree upon the price and other terms of the arrangements pursuant to which such improvement, change or product line extension would be added as Supplied Products. In addition, at
such time or times, if any, as the Parties mutually agree in writing to add additional products to (and make changes to) the Supplied Products to be supplied by Producer pursuant to this Agreement, the Parties shall enter into any amendment or
supplement determined to be desirable by the parties to reflect the terms and conditions, including any modification to the applicable Specifications, mutually agreed upon by the Parties with respect to such additional Supplied Products. 

(b) Producer agrees that it shall cooperate to implement any request from Purchaser to expand the territory beyond the countries into which
the Supplied Products are currently marketed and sold to the extent that Purchaser bears all costs and expenses (including costs to obtain and maintain necessary licenses and permits) related to such expansion; provided that no such territory
expansion shall unreasonably disrupt or unreasonably divert resources from Producer’s other ongoing business operations. 
 (c) For the
avoidance of doubt, if any services of the type described in this Agreement are specifically addressed in the Transition Services Agreement, then the terms and conditions of the Transition Services Agreement shall control to the extent of any
conflict with this Agreement. For example, to the extent the Transition Services Agreement addresses requirements to provide labeling, logistics or other services for a transitional period that are also addressed in this Agreement, those services
shall be provided in accordance with the Transition Services Agreement for the applicable service period thereunder, notwithstanding any conflicting agreements herein with respect to such services. Upon and after the expiration of the service period
under the Transition Services Agreement with respect to any such conflicting service, the terms of this Agreement related to such service will become effective. 

  
 -9- 

 (d) If Producer implements or intends to implement any change to components or other materials
that would result in a change in the Specifications of any Purchaser Products as well as the specifications for any of Producer’s or its Affiliates’ other products, Purchaser will not unreasonably withhold its consent to allow such changes
to be implemented with respect to the affected Purchaser Products; provided that, with respect to changes to Producer Products, such consent (not to be unreasonably withheld) shall be provided not later than one week after requested, and if
any such changes to Producer Products have regulatory implications to Purchaser, then Producer and Purchaser shall cooperate to promptly accommodate the change and the regulatory issues as promptly as practicable to the reasonable satisfaction of
both Producer and Purchaser. At such time or times, if any, as the Parties mutually agree in writing to make changes to the Specifications with respect to any of the Purchaser Products to be supplied by Producer pursuant to this Agreement, the
Parties shall enter into any amendment or supplement determined to be desirable by the Parties to reflect the terms and conditions, including any modification to the applicable Specifications, mutually agreed upon by the Parties with respect to such
changes. 
 (e) All costs and expenses related to the validation and testing of new processes, equipment and materials will be paid (or, at
Producer’s election, reimbursed) by Purchaser directly, and will not be included in Production Cost or otherwise included as part of the Unit Production Cost. 

2.5 Production Facilities. The manufacturing operations shall be carried out at the facilities of Producer or its Affiliates in the
respective locations set forth on the applicable Joinder Agreement, at such other locations as permitted in accordance with this Section 2.5 (each, a “Production Facility”) or at the applicable facilities of one or more
permitted Subcontractors (each such Subcontractor facility, a “Subcontractor Facility”). Notwithstanding anything to the contrary contained herein, Producer may (at its cost unless otherwise agreed) move its manufacturing operations
from any Production Facility or Subcontractor Facility to another location upon Purchaser’s prior written consent, which shall not be unreasonably withheld or delayed; provided that (a) Producer shall have given Purchaser at least
twelve months prior Notice of any such change in location, (b) any such new Production Facility or Subcontractor Facility shall manufacture the applicable Supplied Product(s) in conformity with cGMP and the Specifications and (c) to the
extent that any such change in location (or the use of any Subcontractor Facility if such Subcontractor Facility is not indicated in the initial Joinder Agreement for any such Supplied Product) results in an increase in the Production Cost of any
Supplied Product or Intermediate Supplied Product, Producer may not charge such increase to Purchaser. Notwithstanding the requirements of clause (a) above, in the event that the production capacity of any Production Facility or Subcontractor
Facility shall be adversely affected by any Force Majeure event or in the event that Producer or the applicable Subcontractor closes any Production Facility or Subcontractor Facility used to manufacture any Supplied Product or divests such a
Production Facility or Subcontractor Facility to a Third Party, Producer shall be entitled to move the affected manufacturing operations to another location without Purchaser consent and without giving such twelve months’ Notice;
provided, that the location to which such manufacturing operations are relocated has been prequalified to manufacture the applicable 

  
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Supplied Products; provided further that all costs and expenses related to such move (including any increase in Production Cost of any Supplied Product or Intermediate Supplied
Product resulting from such change in location) shall be paid by Producer except to the extent that such relocation is in order to mitigate the impact of an event of Force Majeure (it being understood and agreed that Purchaser must first approve the
change in location due to Force Majeure prior to being responsible for the corresponding costs and expenses). In the event of any such change in location, this Agreement, the applicable Joinder Agreement or any other applicable written agreement
shall be amended appropriately. 
 2.6 Subcontracting. Producer shall be entitled to hire or engage, or cause to be hired or engaged,
any subcontractor or other Third Party (each, a “Subcontractor”) to perform any or all of its obligations under this Agreement; provided that (a) such Subcontractor is qualified to provide the subcontracted service,
(b) such Subcontractor’s performance is in conformity with cGMP, (c) the Subcontractor Facility has all applicable Government Authority clearances and licenses required by Law, (d) such Subcontractor agrees to comply with the
obligations of this Agreement as if it were the Producer hereunder for the Supplied Products such Subcontractor provides, (e) Purchaser consents in writing to the engagement of such Subcontractor, such consent not to be unreasonably withheld or
delayed and (f) Producer remains primarily responsible for its obligations under this Agreement. Notwithstanding anything to the contrary in this Agreement, Producer shall not be entitled or required to adjust any element of Production Cost
affected by the use of any Subcontractor for changes in overhead or direct labor costs relating to the use of such Subcontractor (to the extent such costs would not have also changed correspondingly if production remained with Producer) unless such
Subcontractor is reasonably engaged to mitigate the impact of an event of Force Majeure (it being understood and agreed that Purchaser must first approve the use of such Subcontractor due to Force Majeure prior to being responsible for the
corresponding costs and expenses). Prior to the engagement of any proposed Subcontractor, Producer shall provide the name and relevant details about the Subcontractor to Purchaser. Purchaser shall have the right to request additional
information concerning the proposed Subcontractor, including financial information. 
 2.7 Purchaser’s Responsibilities. In
order to facilitate the manufacture of Supplied Products by Producer, Purchaser shall: 
 (a) Provide to Producer copies of the
Specifications pertaining to the Purchaser Products in quantities sufficient to permit Producer to carry out its obligations hereunder. 

(b) Provide, at Purchaser’s cost and expense, Purchaser Supplied Components to Producer at the Production Facility or Subcontractor
Facility, or such other location, in each case as agreed by the Purchaser and Producer in writing from time to time. Purchaser shall deliver such Purchaser Supplied Components to Producer in quantities and at the times as Producer shall reasonably
request and as shall be reasonably required by Producer to plan for and meet the Forecasts provided by Purchaser as provided in Section 2.9. Notwithstanding the foregoing, Purchaser shall be entitled to reasonable advance notice of the
quantities of Purchaser Supplied Components required by Producer. All Purchaser Supplied Components delivered to Producer as provided in this Section 2.7(b) shall conform to the specifications therefor identified by Producer and
Purchaser at the applicable Effective Date or as later agreed in writing between 

  
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Purchaser and Producer. Title to the Purchaser Supplied Components shall remain with Purchaser; provided, however, that although title to such Purchaser Supplied
Components shall remain with Purchaser, the risk of loss (to the extent such loss (1) occurs outside of the production process, (2) is not caused by expiration of the Purchaser Supplied Components that is not the fault of Purchaser and
(3) is not otherwise attributable to the fault of Purchaser) shall pass to Producer at the time such Purchaser Supplied Components arrive at the Production Facility or Subcontractor Facility if such loss is not of a type otherwise addressed in
this Agreement (including, for example, with respect to fully discarded Batches) as belonging in whole or in part, including with respect to any limitation, to Purchaser. 

(c) Grant Producer and its employees reasonable access to Purchaser’s employees as reasonably required to assist Producer in the
production of Supplied Products. 
 2.8 Services. Each Party will cooperate with the other Parties to accomplish the transactions
contemplated hereby and will, at the request of the other Parties, use its respective commercially reasonable efforts to promptly take any and all actions necessary or desirable to effect such transactions; provided, however, that to the
extent of any services or projects related to the manufacturing and supply of the Supplied Products (including capacity and yield improvement projects, as well as projects related to product development) in connection with this Agreement that are
specified by the applicable Parties in writing from time to time, Purchaser will pay the price in respect of such services in amounts agreed by such Parties from time to time or (if such Parties do otherwise agree to such specific costs for such
services or projects) shall bear all direct and indirect costs incurred by Producer in connection with such services or projects, plus the Mark-Up Percentage applicable to the related Supplied Products. Producer shall use commercially reasonable
efforts to assist Purchaser with the completion of the projects that such Purchaser and Producer have agreed in writing from time to time to be accomplished in accordance with this Agreement to the extent of the resource commitments and on the
timeline that such Purchaser and Producer may agree upon in writing from time to time; provided that, with respect to any projects for which expected resource requirements or expected timelines for performance are not specifically agreed by
Purchaser and Producer, Producer’s efforts hereunder shall not be required to unreasonably disrupt or unreasonably divert resources from its other business operations, and the Steering Committee shall, in good faith, cooperate to determine the
appropriate allocation of resources and timeline for such projects and any similar types of projects requested by Producer after the Effective Date. The timing of payments in respect of providing services necessary to comply with this
Section 2.8 shall generally occur in a manner consistent with the timing of payments for services that are or were provided under the Transition Services Agreement during its term (such that any project-related payments for costs and
expenses incurred by Producer or its Affiliates shall be promptly reimbursed by Purchaser based on monthly invoices, and not deferred until completion of the project or until incorporated into price adjustments to Supplied Products). 

2.9 Forecasts and Firm Orders. 

(a) With respect to each Supplied Product, at least seven calendar days prior to the beginning of each calendar month during the Term,
Purchaser shall give Producer a rolling forecast (each a “Forecast”) of the orders Purchaser expects to place with Producer for such Supplied Product for each month during the rolling forecast period agreed by such Purchaser and

  
 -12- 

 
Producer in writing from time to time, which Forecast shall satisfy all of the requirements of the master scheduling system employed from time to time by Producer. Producer and Purchaser shall
cooperate to cause shipments to occur promptly after release at the Production Facility (and in any case in a reasonable manner to avoid unreasonable or undue burden on Producer’s other businesses and operations at such Production Facility) and
shall be binding on both Producer and Purchaser regarding such Supplied Product to be purchased or supplied by the respective parties (a “Firm Order”), subject to Section 2.9(b). The quantities of Supplied Products (or
any components thereof, if applicable and different from the binding period for Supplied Products generally) for the months of the non-binding forecast specifically agreed in writing by the Producer and Purchaser from time to time may not vary by
more than the amount agreed by such Parties. Forecasts relating to each Supplied Product beginning on the Effective Date were delivered to Producer by Purchaser at the time of signing this Agreement (or, if not so delivered, will be delivered prior
to the applicable Effective Date). Minimum per order quantities for each Supplied Product, if any, shall be agreed in writing by the Purchaser and Producer from time to time. 

(b) Each Firm Order shall give rise to a binding obligation of Purchaser to purchase, accept and pay for the quantities of Supplied Products
referred to therein. Notwithstanding the foregoing or Section 2.9(a) (subject to the other terms of this Agreement), Producer shall use commercially reasonable efforts to meet Purchaser’s requested quantities and delivery dates for
increased orders in excess of the permitted amounts if such amounts can be reasonably accommodated (at Purchaser’s expense) without unreasonably interrupting, or otherwise diverting resources from, Producer’s other businesses. Producer
shall be deemed to have accepted and shall be bound by any Firm Order submitted to Producer, as such Firm Order may be changed as provided in the preceding sentence, and Purchaser shall be required to pay for the quantity of Supplied Products
included in the applicable Firm Order and available for delivery, as such Firm Order may be modified by Purchaser pursuant to the preceding sentence, if applicable. Firm Orders shall be governed by the terms of this Agreement and in the event of an
inconsistency between any other documentation related to a Firm Order and this Agreement, this Agreement shall apply. 
 (c) At all times
during the Term, Producer shall use its commercially reasonable efforts to meet the shipment dates set forth in each Firm Order, but shall have no obligation to maintain materials necessary to meet any Firm Orders prior to any order becoming a Firm
Order. In the event Producer will not be able to fulfill any Firm Order in accordance with the terms herein, Producer shall notify Purchaser in writing promptly upon becoming aware of such inability prior to the delivery date required in such Firm
Order, and the Parties will discuss alternate delivery dates in good faith with a view to reaching agreement thereto, such agreement not to be unreasonably withheld by either Party. 

(d) If Producer’s actual production of any Supplied Product exceeds Purchaser’s Firm Orders for such Supplied Product, Purchaser
shall purchase such excess up to 5% above the Firm Orders, and Firm Orders for the succeeding month or months shall be reduced by such excess. Purchaser shall have no obligation to purchase in excess of 5% above any Firm Order. 

  
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 (e) Prior to exercising rights set forth in Sections 2.9(c) or (d) above to
elect early delivery or to require excess purchases, Producer shall provide Notice to Purchaser of its intent to exercise such rights. If, in response to any such Notice, Purchaser shall inform Producer in writing that Purchaser would suffer a
warehousing space constraint if Producer were to deliver Supplied Products prior to the requested shipment date set forth in a Firm Order or in excess of the amounts set forth in a Firm Order, Producer shall not be entitled to exercise the rights
set forth in Sections 2.9(c) and (d) above to elect early shipment or to require excess purchases. 
 (f) If, due to its
fault or error, Producer fails to deliver Supplied Products in the quantities specified in the applicable Firm Order and Purchaser notifies Producer in reasonable detail that such failure will result in a material negative economic impact on
Purchaser’s business, Producer shall pay air freight or other extraordinary shipping costs reasonably necessary to deliver delayed Supplied Products to Purchaser or Purchaser’s customers. 

(g) The parties shall cooperate in good faith in providing other, longer-range forecasts which shall be useful in budget planning by the
parties, but such longer-range forecasts shall not constitute a commitment by either party to purchase or supply. 
 2.10 Obsolescence;
Purchaser-Approved Materials; Intermediate Supplied Products. 
 (a) To the extent of any Purchaser-Approved Materials approved in
accordance with Section 2.10(c), if Purchaser does not actually place Firm Orders sufficient to use all of the Purchaser-Approved Materials (or any of the Purchaser-Approved Materials becomes obsolete due to subsequent changes required
or requested in respect of any of the Purchaser-Approved Materials), the Steering Committee will meet annually (not later than 30 days after the end of each Contract Year) to determine the amount of Purchaser-Approved Materials that were purchased
by Producer (or Producer’s suppliers) but that have not been used for subsequent production of Supplied Products. Except to the extent of any such Purchaser-Approved Materials that the Steering Committee determines is expected to be used within
a reasonable period of time following such meeting, Purchaser shall promptly reimburse Producer for such amount of Purchaser-Approved Materials that were purchased by Producer (or Producer’s suppliers). For the avoidance of doubt, Producer
shall use commercially reasonable efforts to sell, return or allocate for alternate use such Purchaser-Approved Materials as promptly as reasonably practicable in order to mitigate Purchaser’s losses related thereto, and if any payment is made
in accordance with this Section 2.10(a) for Purchaser-Approved Materials that are subsequently used in Supplied Products or otherwise, Producer shall equitably adjust the amounts charged to Purchaser hereunder so that there is no
duplicate benefit provided as a result of a payment made in accordance with this Section 2.10(a). 
 (b) In the event that any
Third Party supplier of any raw materials, components, labeling, packaging or other inventories used by Producer to manufacture any of the Supplied Products shall discontinue production of any such raw material, component, labeling, packaging or
other inventories, which discontinuance shall result in Producer incurring any additional costs or expenses, (i) if the discontinued raw materials, components, labeling, packaging or other inventories relate solely to Purchaser Products,
Purchaser shall reimburse 

  
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Producer for all such additional costs and expenses and (ii) if the discontinued raw materials, components. labeling, packaging or other inventories relate to Purchaser Products as well as
to other Supplied Products or other products of the Producer, Purchaser shall reimburse Producer for Purchaser’s allocable portion of such additional costs and expenses based upon the unit volumes of the affected Supplied Products and other
products produced for Producer and its Affiliates, on the one hand, and for Purchaser and its Affiliates, on the other hand. Such costs and expenses shall include all additional direct and indirect internal costs and out-of-pocket expenditures,
whether capitalized or expensed, resulting from such discontinuance, including all such additional costs and expenses relating to or arising out of any modification to Producer’s procedures or processes, acquisition of property, equipment or
other assets, relocation, regulatory compliance, including associated regulatory fees, write-off or disposal of materials (including strategic materials purchases), equipment and other assets rendered unusable by virtue of such discontinuance and
all related changes. In addition, Purchaser shall reasonably cooperate with Producer in connection with any strategic materials purchases resulting from or responsive to any such discontinuance. 

(c) All orders of materials or components in connection with this Agreement that are identified as “Purchaser-Approved Materials” by
the applicable Purchaser and Producer in writing from time to time shall first be approved by Purchaser in its sole discretion. Producer shall in the ordinary course provide the anticipated order date and quantity in advance to Purchaser with
respect to any Purchaser-Approved Materials, and Purchaser shall either approve the order or request such changes as it determines are necessary as promptly as possible thereafter. Producer will use commercially reasonable efforts to place such
orders as are approved by Purchaser; provided that any changes requested by Purchaser shall not require the unreasonable disruption or interruption of Producer’s other businesses; provided further that any Liabilities
resulting in the delay in the order date resulting from Purchaser’s failure to approve the order or provide changes to Producer sufficiently in advance shall be the sole responsibility of Purchaser. Title and risk of loss with respect to
Purchaser-Approved Materials generally remains with Producer in the same manner as all other materials sourced by Producer. Notwithstanding the immediately preceding sentence, Purchaser-Approved Materials identified by the Producer and Purchaser in
writing from time to time as “Invoiced Purchaser-Approved Materials” shall be invoiced by Producer to Purchaser (at Producer’s cost for such Invoiced Purchaser-Approved Materials) and title to such Invoiced Purchaser-Approved
Materials shall transfer to Purchaser upon issuance of such invoice; provided, however, that although title to such Invoiced Purchaser-Approved Materials shall transfer to Purchaser in such manner, the risk of loss (to the extent such
loss (1) occurs outside of the production process, (2) is not caused by expiration of the Invoiced Purchaser-Approved Materials that is not the fault of Purchaser and (3) is not otherwise attributable to the fault of Purchaser) shall
pass to Producer at the time such Invoiced Purchaser-Approved Materials arrive at the Production Facility or Subcontractor Facility if such loss is not of a type otherwise addressed in this Agreement (including, for example, with respect to fully
discarded Batches). 
 (d) Intermediate Supplied Products identified by Producer and Purchaser in writing from time to time are components
of certain Supplied Products. Intermediate Supplied Products shall be invoiced upon completion of the manufacturing steps required to become Intermediate Supplied Products, and title to such Intermediate Supplied Products shall transfer to Purchaser
upon issuance of such invoice; provided, however, that although title to such 

  
 -15- 

 
Intermediate Supplied Products shall transfer to Purchaser in such manner, the risk of loss shall remain with Producer in the same manner as all work-in-process inventory manufactured by Producer
prior to release for delivery as finished Supplied Products. For purposes of pricing, the Intermediate Supplied Products shall be treated the same as Supplied Products, including with respect to determining price and any ongoing or period adjustment
to such price; provided that the price charged to Purchaser with respect to any such Intermediate Supplied Products shall be only the applicable Unit Production Cost, without any Mark-Up Percentage applied thereto (such that, for the
avoidance of doubt, the Mark-Up Percentage with respect to any Supplied Products that include Intermediate Supplied Products shall apply only to that portion of the Unit Production Cost incurred in converting the Intermediate Supplied Product into
the final Supplied Product). Purchaser shall have the same inspection and similar rights with respect to Intermediate Supplied Products as it has for Supplied Products, and other than as set forth herein the Intermediate Supplied Products
manufactured in order to become part of a Supplied Product will be treated the same in all respects (unless the context clearly indicates otherwise) as all other materials or components sourced by Producer for the manufacture of Supplied Products.

 2.11 Storage and Handling. Producer shall store and handle the Supplied Products in accordance with the Specifications and the
Quality Agreement. Raw materials utilized by Producer in connection with the manufacturing, processing and packaging of the Supplied Products shall not be used by Producer beyond the shelf life designated in the Specifications unless otherwise
specified in writing by Purchaser. Producer shall handle, control and store, treat or dispose of any Waste generated in performing its obligations under this Agreement. 

2.12 Shipments; Title. Producer shall ship each Firm Order Free Carrier (FCA) applicable Production Facility (or Subcontractor
Facility) to Purchaser or Purchaser’s designee in accordance with Law. Freight, insurance and loading costs shall be for the account of Purchaser (in each case, for the avoidance of doubt, in addition to the applicable purchase price), except
that any increased freight cost resulting from the shipment occurring from a facility other than the Production Facility (or Subcontractor Facility) listed on the applicable Joinder Agreement with respect to any Supplied Product shall be for the
account of Producer. Title and the risk of loss, delay or damage in transit shall be passed to Purchaser upon delivery to Purchaser’s or Purchaser’s designee’s designated carrier; provided that Producer shall be responsible for
the loading of the Supplied Products on departure and shall bear the risk of loss incurred in such loading. Producer shall package the Supplied Product for shipment in accordance with its customary practices therefor, unless otherwise specified in
writing by Purchaser, in which event any extra cost incurred by Producer on account of changes requested by Purchaser shall be reimbursed by Purchaser. Producer shall include the following for each shipment of Supplied Product: (i) the Firm
Order reference number; (ii) the lot and Batch numbers; (iii) the quantity of Supplied Product; and (iv) a Certificate of Conformance (as defined in the Quality Agreement) with the applicable Specifications. Purchaser shall procure,
at its cost, insurance covering damage or loss to the Supplied Products during shipping. 
 2.13 Customs. For purposes of exporting
Supplied Products out of the applicable country of origin, Purchaser shall be the exporter of record and shall be responsible for complying with all customs requirements and export laws of the applicable jurisdiction(s). For purposes of importing
the Supplied Product into the applicable country of destination, Purchaser shall be the importer of record for the Supplied Product and shall be responsible for complying 

  
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with all customs requirements and import laws of the applicable country. To the extent that Producer or any of its Affiliates is providing distribution or similar services on behalf of Purchaser
or its Affiliates pursuant to any other Ancillary Agreement that allows for the shipment, distribution or sale of any Supplied Products in accordance with applicable Law, and the completion of such shipments, distributions or sales in accordance
with the terms of those Ancillary Agreements require Producer or its Affiliates to be the exporter or importer of record and is permitted by applicable Law, Producer or its applicable Affiliate shall act as the importer or exporter of record at
Purchaser’s (or its applicable Affiliate’s) cost in accordance with the terms of the applicable Ancillary Agreement during the term thereof. 

2.14 Labeling of Supplied Product. 

(a) All Supplied Products supplied hereunder shall be labeled and packaged in accordance with the applicable Specifications. Purchaser shall
control the content and type of all product labeling and packaging (other than packaging for shipment of Supplied Products to Purchaser as provided in Section 2.12) for the Purchaser Products (and any changes or supplements thereto), and
shall have the responsibility, at Purchaser’s expense, for any changes or supplements thereto, including the expense of securing any approvals required by the FDA or other applicable Medical Regulatory Authorities or Certification Bodies for
any such changes or supplements. Producer shall be responsible for obtaining such labels (and any changes or supplements thereto) in accordance with the content specified by Purchaser at Purchaser’s sole cost and expense, including for film
(unless the Producer and Purchaser have otherwise agreed), plates and dies. After the final labels and labeling have been printed, Purchaser will receive, at Purchaser’s sole cost and expense, samples of such Purchaser Products bearing such
labels and labeling for final approval. 
 (b) Except where otherwise required by Law or to address an actual or potential safety issue
(e.g., add a warning, precaution or contraindication), in which case Purchaser and Producer will use commercially reasonable efforts to implement such change as promptly as practicable, any changes to the labeling and packaging for Purchaser
Products shall be communicated to Producer as far in advance as reasonably practicable together with the required documentation specifying the content to be included in the labeling and packaging, including all necessary photo-ready art (or its
substantial equivalent) on electronic and hard copy. Where a labeling or packaging change is required by Law, Producer shall be obligated to devote comparable priority to implementing such change as it shall devote to other business units of
Producer. Where a labeling or packaging change is requested that is not required by Law, Purchaser and Producer will use commercially reasonable efforts to implement such change as promptly as practicable, subject to Producer’s discretion to
reasonably determine the appropriate resources to be allocated to any such request in order to avoid interruption to the operation of its other businesses. Purchaser shall reimburse Producer for the costs of any change to the labeling or packaging
for Purchaser Products, including costs of capital equipment and process upgrades and of obsolescence of any materials or inventory; provided that Purchaser’s liability for such reimbursement of materials and inventory shall be
limited to levels of inventory that are consistent with the binding portion of the most recent Forecast prior to agreement to make such change. 

  
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 2.15 Obligations Regarding Dedicated Equipment. 

(a) Producer will use the Dedicated Equipment for the sole purpose of producing Supplied Products for sale to Purchaser as provided in this
Agreement. Producer shall be responsible for qualifying the Dedicated Equipment, and for maintaining the Dedicated Equipment consistent with its practices as in effect from time to time with respect to manufacturing equipment serving its other
business units. Purchaser shall reimburse Producer for all out-of-pocket costs and expenses, such as the cost of parts and third-party labor, incurred by Producer in connection with such qualification, maintenance and repairs to the extent that such
costs and expenses are not already included in Producer’s calculation of the Production Cost; provided that Producer shall provide Purchaser with advance written notice (as soon as reasonably practicable after becoming aware of such
requirement; provided that failure to provide such notice shall not relieve Purchaser of its obligations related thereto except to the extent it is prejudiced by the failure to timely deliver such notice) of any individual qualification,
maintenance or repair that is expected to result in a charge to Purchaser pursuant to this sentence that exceeds US $25,000. Notwithstanding the foregoing, Producer shall (i) be solely responsible for any damage to the Dedicated Equipment
caused by Producer’s failure to maintain the Dedicated Equipment in accordance with applicable manufacturer’s maintenance specifications and any damage caused by the gross negligence or willful misconduct of Producer or its employees or
agents with respect to the Dedicated Equipment, (ii) promptly notify Purchaser of any such damage caused by such action or inaction of Producer or its employees or agents, and (iii) cause any damage for which it is responsible pursuant to
clause (i) to be repaired (or if necessary such damaged Dedicated Equipment to be replaced) promptly at Producer’s sole cost and expense. Dedicated Equipment shall at all times remain personal property, notwithstanding that such equipment,
or any part thereof, may be affixed or attached to real property or any improvements thereon. 
 (b) In the event that any portion of this
Agreement is terminated or expires by its terms (other than any termination by Purchaser in accordance with Section 10.2(a) or Section 10.2(b), in which case the purchase of Dedicated Equipment shall be at Purchaser’s
election and not mandatory) such that the Dedicated Equipment is no longer necessary to perform pursuant to this Agreement, Producer shall promptly provide Purchaser with a list of all such Dedicated Equipment (except to the extent of any Dedicated
Equipment that by its nature is not movable property), together with an invoice for the Producer’s then-current (prior to taking into account such termination) net book value in respect of all such Dedicated Equipment. Purchaser shall be
required to pay such net book value within 30 days after receipt of such Notice, and shall also within such 30-day period provide Notice to Producer if Purchaser elects to take physical possession of any or all of such Dedicated Equipment at one or
more facilities selected by Purchaser. If Purchaser elects to take possession of any such Dedicated Equipment, the Parties shall cooperate to effect such transfer of ownership and physical possession in accordance with Section 10.2.
Producer shall cooperate with Purchaser in its review of the list of Dedicated Equipment and the values listed therein, and shall permit Purchaser to inspect any such Dedicated Equipment during normal business hours in a manner that will not
unreasonably disrupt Producer’s business. If Purchaser does not notify Producer of its election to take physical possession of any or all Dedicated Equipment within such 30-day Notice period, Producer shall retain title to such Dedicated
Equipment and may either retain such Dedicated Equipment or dispose of such Dedicated Equipment as it may choose; provided that (i) in no case shall Purchaser be excused from making payment of the net book value for such Dedicated
Equipment in accordance with this paragraph (as liquidated damages) and (ii) Purchaser shall be responsible 

  
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for all out-of-pocket costs and expenses incurred by Producer and its Affiliates in disposing of such Dedicated Equipment to the extent such costs and expenses are incurred and invoiced within
180 days after the later of (A) the expiration of the 30-day Notice period described in this paragraph or (B) the date on which any Dispute related to Purchaser’s rights or obligations in respect of such Dedicated Equipment becomes
final, binding and non-appealable. If Purchaser notifies Producer that it will take possession of any or all of such Dedicated Equipment, the Parties shall cooperate to effect such transfer within 60 days after such notice, subject to any required
extension necessary to allow for the Dedicated Equipment to be removed from Producer’s possession without disrupting Producer’s business. All reasonable out-of-pocket costs and expenses related to such cooperation or transfer shall be
borne by Purchaser. 
 (c) Producer and Purchaser acknowledge and agree that, except to the extent transferred to Purchaser in accordance
with this Section 2.15 and notwithstanding anything to the contrary in the Separation Agreement, Producer shall continue to own and possess the Dedicated Equipment (and shall not be permitted to transfer any such Dedicated Equipment
unless such transferee takes such equipment subject to this Section 2.15). 
 ARTICLE III 

RECEIPT AND REJECTION OF PRODUCT 

3.1 General. Purchaser shall have the right to reject all or any portion of a shipment of Supplied Products (a) that does
not comply in any material respect with any of the covenants and agreements set forth in Section 8.1(a) or 8.1(b); or (b) which due to a condition of Force Majeure (lasting longer than 30 days) or the fault or error of
Producer, are not delivered in material compliance with the timeframes set forth herein and, as a result of such delay, Purchaser, after making reasonable efforts, is unable to use such Supplied Products; provided that Purchaser shall notify
Producer within 60 days (with respect to rejections pursuant to clause (a)) or 10 days (with respect to rejections pursuant to clause (b)) after receipt of such shipment if it is rejecting a shipment (or portion thereof); provided further
that Purchaser may provide notice of rejection of any Batch of Supplied Products having any latent defect or any defect not reasonably discoverable through visual inspection up until the date of expiration of such Supplied Product. Concurrently with
the delivery of a notice of rejection (or as soon as practicable thereafter) of Supplied Product pursuant to Section 3.1(a), Purchaser shall send to Producer the Non-Complying Product or a representative sample of the Non-Complying
Product (or a picture thereof if Producer and Purchaser agree that a picture is sufficient for purposes of the initial review). Producer shall notify Purchaser promptly, but in no event later than 60 days after receipt of a notice of rejection by
Purchaser, whether it accepts Purchaser’s rejection of such Supplied Products. 
 3.2 Replacement of Supplied Products. Whether
or not Producer accepts Purchaser’s rejection of Supplied Products in accordance with Section 3.1, promptly upon receipt of a notice of rejection, unless otherwise specified by Purchaser, Producer shall use commercially reasonable
efforts to provide replacement Supplied Product for those rejected by Purchaser in the original shipment. If the Supplied Product rejected by Purchaser from the original shipment ultimately is found to be a Non-Complying Product due to a failure to
comply in any material respect with any of the covenants and agreements set forth in Section 8.1(a) or 8.1(b), Purchaser shall be entitled to the remedies specified in Section 8.3. If it is determined 

  
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subsequently that such Supplied Product was in fact conforming, then Purchaser shall be responsible not only for the purchase price of the allegedly Non-Complying Product (including all
transportation charges) but also the purchase price of the replacement Supplied Product together with any special or extraordinary costs or expenses incurred by Producer in the manufacture of the replacement Supplied Product. In the event that
Producer bears replacement costs or transportation charges hereunder due to its provision of Non-Complying Products, such costs shall not be incorporated into the calculation of Production Cost. 

3.3 Independent Testing. In the event the Producer and Purchaser cannot agree as to whether any shipment of Supplied Product conforms
with the Specifications, Producer and Purchaser shall engage a mutually agreed independent testing organization to evaluate the rejected Supplied Product and determine whether or not it is a Non-Complying Product, such determination to be final and
binding on the Parties. Costs and expenses of such independent testing organization shall be borne by the Producer, if the Supplied Product is determined to be Non-Complying Product, or by the Purchaser, if the Supplied Product conforms with the
Specifications. 
 ARTICLE IV 

INTELLECTUAL PROPERTY 

4.1 Purchaser Intellectual Property. Subject to Section 4.5, all Intellectual Property, together with all materials, data,
writings and other property in any form whatsoever, which is provided to Producer by or on behalf of Purchaser, to the extent owned or controlled by Purchaser and/or its respective Affiliates (including pursuant to the Separation Agreement, this
Agreement or any other Ancillary Agreement) prior to being provided to or used by Producer hereunder, shall remain owned or controlled by Purchaser (the “Purchaser Property”). Without limiting Section 4.3(b), Purchaser
hereby grants to Producer (including, for the avoidance of doubt, Affiliates of Producer and any permitted Subcontractors hereunder) a non-exclusive license to use any Purchaser Property solely in connection with Producer performing its obligations
hereunder. Producer shall not acquire any other right, title or interest in or to the Purchaser Property as a result of its performance hereunder. 

4.2 Improvements and Developments. 

(a) Each Party acknowledges and agrees that improvements or modifications to Purchaser Property may be made by or on behalf of Producer
(“Improvements”), and creative ideas, proprietary information, developments, or inventions may be developed under or in connection with this Agreement by or on behalf of Producer (“Developments”), in each case
either alone or in concert with Purchaser or any Third Parties; provided that no rights shall be provided to any such Third Parties with respect to the Purchaser Property or any such Improvements or Developments unless expressly contemplated
herein. 
 (b) Producer acknowledges and agrees that, as between the Parties, any Improvements or Developments that, as of the expiration or
termination of this Agreement (or, as applicable, any Joinder Agreement or other written agreement related hereto), relate solely to the Baxalta Business (in the event that Baxalta or any of its Affiliates is the Purchaser) or the Baxter Business
(in the event that Baxter or any of its Affiliates is the Purchaser) (such Improvements 

  
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and Developments, collectively, “Purchaser-Owned Improvements and Developments”) shall be the exclusive property of Purchaser, and Purchaser shall own all rights, title and
interest in and to such Improvements and Developments. For clarity, the Purchaser-Owned Improvements and Developments shall not include, and the Producer-Owned Improvements and Developments shall include, any Improvements or Developments that, as of
the expiration or termination of the applicable agreement (including this Agreement or any Joinder Agreement), relate to any “Sensitive Technology” as may be identified by written agreement of the Parties from time to time (collectively,
“Sensitive Producer Technology”). Producer hereby irrevocably transfers, assigns and conveys, and shall cause its subcontractors and its and their employees to irrevocably transfer, assign and convey, all rights, title and interest
in and to each of the Purchaser-Owned Improvements and Developments to Purchaser free and clear of any encumbrances, and Producer agrees to execute, and shall cause its subcontractors and its and their employees to execute, all documents necessary
to do so. 
 (c) Purchaser acknowledges and agrees that, as between the Parties, all Improvements and Developments other than
Purchaser-Owned Improvements and Developments (such Improvements and Developments, collectively, “Producer-Owned Improvements and Developments”) shall be the exclusive property of Producer, and Producer shall own all rights, title
and interest in and to such Improvements and Developments. Purchaser hereby irrevocably transfers, assigns and conveys, and shall cause its subcontractors and its and their employees to irrevocably transfer, assign and convey, all rights, title and
interest in and to each of the Producer-Owned Improvements and Developments to Producer free and clear of any encumbrances, and Purchaser agrees to execute, and shall cause its subcontractors and its and their employees to execute, all documents
necessary to do so. 
 4.3 Rights to Certain Improvements and Developments. 

(a) Effective as of the Effective Date, Producer hereby grants to Purchaser a non-exclusive, royalty-free (except for any pass-through
royalties or other payment owed to a Third Party therefor), sublicenseable license, solely with respect to the Purchaser Products for use in the Baxalta Business (in the event that Baxalta or any of its Affiliates is the Purchaser) or the Baxter
Business (in the event that Baxter or any of its Affiliates is the Purchaser), to use such Producer-Owned Improvements and Developments that are used by Producer in manufacturing such Purchaser Product, in each case solely to the extent necessary
for Purchaser or an alternative source of supply (other than any Prohibited Person) designated by Purchaser to continue manufacturing such Purchaser Product, or line extensions of such Purchaser Products or combinations of such Purchaser Products
with other products of Purchaser in the Baxalta Business (in the event that Baxalta or any of its Affiliates is the Purchaser) or the Baxter Business (in the event that Baxter or any of its Affiliates is the
Purchaser); provided that the foregoing shall not apply with respect to any Improvements or Developments that relate to any Sensitive Producer Technology. 

(b) Effective as of the Effective Date, Purchaser hereby grants to Producer a non-exclusive, royalty-free (except for any pass-through
royalties or other payment owed to a Third Party therefor), sublicenseable license to use any Purchaser-Owned Improvements and Developments for any and all purposes outside the Baxalta Business (in the event that Baxalta or any of its Affiliates is
the Purchaser) or the Baxter Business (in the event that Baxter or any of its Affiliates is the Purchaser). 

  
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 (c) With respect to any Purchaser Product that, as of the expiration or termination of the
applicable Joinder Agreement, requires any Sensitive Producer Technology for the continued manufacturing thereof, at the request of a Party no earlier than two (2) years prior to such expiration or termination, the Parties shall discuss the
continued supply needs of Purchaser with respect to such Purchaser Product or the needs of Purchaser to identify and source Third Party technology as a replacement or alternative to Sensitive Producer Technology, in each case without any obligation
to enter into a long-term supply arrangement or license agreement with respect thereto or extend the Term of such Joinder Agreement unless and until mutually agreed by the Parties in writing. 

4.4 Limited Right to Use. Subject to the provisions of Sections 4.1 through 4.3 and the terms of the Separation Agreement
and any other Ancillary Agreement (as applicable), nothing set forth in this Agreement, the Joinder Agreement or any other agreement between the Parties entered into in order to give further effect to this Agreement of the Joinder Agreement shall be
construed to grant to any Party any title, right or interest in or to any Intellectual Property owned or controlled by any other Party or any of its Affiliates. Use by Producer of any Purchaser Property, except to the extent expressly provided in an
Ancillary Agreement, shall be limited exclusively to its performance of this Agreement. Use by Purchaser of any Producer-Owned Improvements and Developments, except to the extent expressly provided in Section 4.3(a), shall be prohibited
except with the prior written consent of Producer in each instance. 
 4.5 No Conflict. Nothing in this Article IV shall, or
shall be deemed to, expand, limit or otherwise alter any rights of the Parties or their Affiliates pursuant to the Separation Agreement or any other Ancillary Agreement, and to the extent of any conflict between this Article IV and the
Separation Agreement or any other Ancillary Agreement, the Separation Agreement or such other Ancillary Agreement shall govern. 
 ARTICLE
V 
 INITIAL TERM AND RENEWAL 

5.1 Initial Term. The initial term of this Agreement and each Joinder Agreement with respect to each Supplied Product sold or provided
by Producer to Purchaser (the “Initial Term”) shall commence on the Effective Date and shall expire at the end of the day on the initial termination date set forth on the applicable Joinder Agreement with respect to each Supplied
Product, unless extended as provided in Section 5.2. 
 5.2 Renewal. Unless this Agreement terminates pursuant to
Article X, this Agreement and any Joinder Agreement may only be extended (each such extension with respect to any Supplied Product, a “Renewal Term”) with respect to any Supplied Product if and to the extent expressly set
forth on the applicable Joinder Agreement or as otherwise expressly agreed in writing by the Parties. 

  
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 ARTICLE VI 

PRICES 
 6.1
General. The initial Unit Price for each Supplied Product sold by Producer to Purchaser shall be the Unit Production Cost as agreed upon by Producer and Purchaser (plus the Mark-Up Percentage), subject to adjustment or additions as set forth in
Sections 6.2, 6.3, 6.4 or 17.3. Such prices do not include the charges provided for in Section 6.3 or 6.4, which shall be additional charges over and above the charges contemplated by this
Section 6.1, as adjusted in accordance with Section 6.2. 
 6.2 Price Adjustments. 

(a) In connection with Producer’s planning and budgeting process, and as part of the required review to determine the following
year’s Production Cost Price Adjustment, Purchaser shall provide an annual operating plan (including unit volumes for each Supplied Product or Intermediate Supplied Product, by month and by code, based on agreed-upon target yield) with respect
to the expected demand for each Supplied Product at each facility subject to this Agreement not later than July 31 of each Contract Year, with such annual operating plan covering the immediately following Contract Year. Based on such annual
operating plan and using information available for the current year’s preliminary and estimated Production Costs, Producer shall provide Purchaser with an updated Unit Production Cost for each Supplied Product and Intermediate Supplied Product
for the following Contract Year not later than September 30 of the year in which such annual operating plan is delivered. Purchaser and Producer shall cooperate with each other to review the annual operating plan data and assumptions, as well
as the production cost data and estimates, in each case as are used to determine the updated Unit Production Cost, with good faith efforts used to resolve any open questions or issues related thereto in a timely fashion. If Purchaser disagrees with
any updated Unit Production Cost, it shall provide Notice to Producer that it Disputes such amount within 30 days after receiving notice thereof, and the absence of any such Notice of Dispute shall be deemed to be agreement with such change;
provided that, regardless of any Dispute, the amount of the updated Unit Production Cost shall become effective as if the amount had not been Disputed until such time as the Dispute is finally resolved. Any such increase or decrease in the
Unit Production Cost shall take effect as of the first day of the Contract Year immediately following the Purchaser’s required delivery of the annual operating plan in accordance with this Section 6.2(a), with the new price for each
Supplied Product or Intermediate Supplied Product to equal the Unit Production Cost of such Supplied Product or Intermediate Supplied Product for such Contract Year, plus (with respect to the Supplied Products) the Mark-Up Percentage (such
adjustment to price, a “Production Cost Price Adjustment”). Producer shall use commercially reasonable efforts, consistent with its efforts with respect to its other business units, to mitigate any increase in the Unit Production
Cost, subject to the limitations contained in this section. 
 (b) In addition to any annual Production Cost Price Adjustment, promptly (and
in any event within 30 days) following the end of each calendar quarter, Producer shall in accordance with its ordinary course practices prepare and provide to Purchaser a report showing any (i) discards (including costs related thereto) of
Purchaser Supplied Components or Invoiced Purchaser-Approved Materials related to expiration of such materials or components before filling, as compared to the amounts (if any) included in the determination of Unit Production

  
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Cost (which will be the responsibility of Purchaser unless the expiration is the fault of Producer) and (ii) only with respect to production and supply pursuant hereunder with respect to the
Joinder Agreements including the Vienna, Austria and Round Lake, Illinois manufacturing facilities, increases or decreases (including costs related thereto) in production volume actually ordered by Purchaser as compared to the amounts included
(based on Purchaser’s annual operating plan provided pursuant to Section 6.2(a)) in the determination of Unit Production Costs, or any change in the mix of products actually ordered by Purchaser (including costs related thereto) as
compared to the mix used (based on the Purchaser’s annual operating plan provided pursuant to Section 6.2(a)) in the determination of Unit Production Cost, in each case for purposes of this clause (ii) only with respect to
absorption of overhead included in Production Cost. Any cost variance for absorption of overhead related to increases or decreases in production or changes in product mix (plus the Mark-Up Percentage attributable to such variance) at the facilities
covered by the immediately preceding clause (ii) shall be paid by Purchaser to Producer (in the case of an increase in cost versus the Unit Production Cost) or be credited by Producer to Purchaser (in the case of a decrease in cost versus the
Unit Production Cost), together with any amounts required to be reimbursed or credited pursuant to Section 6.5 with respect to fully discarded Batches. Payments and credits pursuant to this Section 6.2 shall be made in
accordance with the same payment terms as apply to invoices issued hereunder (with credits against future invoices being applied as promptly as possible in subsequent invoices). If there are not sufficient invoices against which credits may be
applied in the one-year period following such credit becoming due (or, if earlier, as of the date the final invoice is issued under this Agreement with respect to the applicable Joinder Agreement), then Producer shall promptly pay to Purchaser the
amount that would have otherwise been credited hereunder. Purchaser and Producer shall cooperate with each other to review the quarterly variance reports, with good faith efforts used to resolve any open questions or issues related thereto in a
timely fashion. If Purchaser disagrees with any payment or credit required by such report, it shall provide Notice to Producer that it Disputes such amount within 30 days after receiving notice thereof, and the absence of any such Notice of Dispute
shall be deemed to be agreement with such report; provided that, until such Dispute is finally resolved, the payment or credit otherwise required therein shall be deferred. 

6.3 Taxes. Prices and other charges in respect of this Agreement do not, and any adjusted prices pursuant to Section 6.2
shall not, include sales, use, excise, occupation, privilege, value-added or similar taxes. Purchaser shall pay, or reimburse Producer for (in each case, for the avoidance of doubt, in addition to the applicable purchase price), the gross amount of
any present or future sales, use, excise, occupation, privilege, value-added or other similar tax (excluding any tax on net income, corporate franchise tax or fee or any similar tax or fee) applicable to the sale or furnishing of any Supplied
Products, Intermediate Supplied Products or Invoiced Purchaser-Approved Materials to Purchaser. Purchaser shall be responsible for the payment of all duties, tariffs, value-added taxes, and other taxes and charges payable on the exportation or
importation of the Supplied Products, Intermediate Supplied Products or Invoiced Purchaser-Approved Materials. 
 6.4 Pass-Through
Expenses. The Parties agree to cooperate and use commercially reasonable efforts to obtain any necessary Consents required under any existing Contract with a Third Party to allow Producer to perform its obligations hereunder; provided
that Producer and its Affiliates shall not be required to pay any fee or other amount in respect of any such Consent. 

  
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Any costs and expenses incurred by any Party in connection with obtaining any such Consent that is required to allow Producer to perform its obligations hereunder shall be borne by Purchaser;
provided that no such costs or expenses shall be payable by Purchaser unless approved in advance in writing by Purchaser. 
 6.5
Discard Adjustments. 
 (a) Producer shall notify Purchaser of any fully discarded Batches of Supplied Products or Intermediate Supplied
Products during the term of this Agreement as part of the quarterly report delivered in accordance with Section 6.2(b), including a statement of whether the fully discarded Batch was the fault of Producer or any of its Affiliates or as a
result of issues with Purchaser Supplied Components or Invoiced Purchaser-Approved Materials that were not caused by Producer or any of its Affiliates (including the reasons and rationale for such determination and accompanied all relevant detail
used in reaching such conclusion). 
 (b) If there are any fully discarded Batches of Supplied Products or Intermediate Supplied Products
that are not identified in the notice of such fully discarded Batch as being the fault of Producer or any of its Affiliates or Subcontractors, then Producer shall cooperate with Purchaser in its review of each such notice and event. Any portion of
the notice for which Purchaser does not provide a written Notice of Dispute within 30 days after Producer has provided such notice of such report shall be deemed final and shall not be subject to Dispute. If Purchaser Disputes any portion of such
Notice, the Dispute shall be managed in accordance with Section 16.1. 
 (c) Producer and Purchaser may agree in writing from
time to time to allocate liability or responsibility for fully discarded Batches in a manner determined by them. 
 6.6 Audit. In the
event of any Production Cost Price Adjustment or other price increase or credit pursuant to Section 6.2 with respect to any Supplied Product or Intermediate Supplied Product, Purchaser may perform an audit of Producer’s records
directly associated with such Production Cost Price Adjustment or other increase or credit, if notice of such audit is provided within three months after the Production Cost Price Adjustment or other increase has become effective (or, in the case of
quarterly payments or credit based on variance from Unit Production Cost, within three months after notice of such increase or credit is delivered to Purchaser). Purchaser may use independent auditors, who may participate fully in such audit. If an
audit is proposed with respect to information which Producer wishes not to disclose to Purchaser (“Restricted Information”), then on the written demand of Producer, the individuals conducting the audit with respect to Restricted
Information will be limited to the independent auditors of Purchaser. Such independent auditors shall enter into an agreement with the parties under which such independent auditors shall agree to maintain the confidentiality of the information
obtained during the course of such audit (including an agreement to not share such information with Purchaser) and establishing what information such auditors will be permitted to disclose to report the results of any audit of Restricted Information
to the party requesting the audit. Any such audit shall be conducted during regular business hours and in a manner that does not interfere unreasonably with Producer’s operations. Each audit shall begin upon the date specified in a Notice given
by Purchaser to Producer a minimum of 30 days prior to the commencement of the audit; provided that, if the date so specified shall conflict with a regulatory 

  
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inspection or audit, plant shutdown or other similar event, the parties shall cooperate to establish a mutually agreeable commencement date. Such audit shall be performed diligently and in good
faith and shall be completed within 30 days of the commencement thereof; provided that, to the extent that Purchaser’s compliance with such timeframe for completion is not feasible due to Producer’s failure to provide timely access
to documentation reasonably requested by Purchaser in connection with such audit, such 30 day period shall be extended as reasonably necessary. Any undisputed overpayment or underpayment of amounts due under this Agreement determined by this
Section 6.6 shall be due and payable to the other party by the party owing such amount within thirty (30) days after notice of such audit finding. Purchaser shall bear the full cost of such audit unless in the event that any audit
performed hereunder results in a decrease of five percent (5%) or more in any amount due Producer hereunder, then Producer shall be obligated to pay the out-of-pocket audit costs paid to any Third Party auditor engaged to conduct such audit up
to a maximum amount of $250,000; provided that any such Third Party auditor’s fees shall have been on an hourly or flat fee basis without a contingency or other performance or bonus fee. In the event Producer bears any audit costs
hereunder, such costs shall not be incorporated into the calculations for the Production Cost. 
 ARTICLE VII 

INVOICING AND PAYMENTS 

7.1 Invoicing. Producer will submit or cause to be submitted to Purchaser for payment invoices of amounts due under this Agreement upon
Producer’s release of the applicable Supplied Products (which invoice shall not, for the avoidance of doubt, be delayed pending Purchaser’s release of such Supplied Products following its review of the applicable release document provided
by Producer) or as otherwise set forth herein (including with respect to Invoiced Purchaser-Approved Materials and Intermediate Supplied Products); provided that, for the avoidance of doubt, Producer’s release of conformance Batches (as
opposed to commercial Batches) shall occur when Producer determines that all conformance Batch deliverables are met. At Producer’s option, separate invoices may be submitted (on different periodic schedules) by its separate divisions or
Affiliates or with respect to individual Production Facilities, or Producer may combine the invoices of one or more of such divisions, Affiliates or Production Facilities. The invoices will specify the Supplied Products provided (or, as applicable
Invoiced Purchaser-Approved Materials ordered or Intermediate Supplied Products manufactured) and will contain or be followed by such other supporting detail as Purchaser may from time to time reasonably request. 

7.2 Payment. Purchaser will pay or cause its Affiliates to pay all amounts due pursuant to this Agreement within 60 days after the date
of delivery of each such payment invoice of amounts due hereunder. 
 7.3 Overdue Payments. If any amounts due hereunder have not
been received by the due date, such overdue amounts shall bear interest from the due date at the rate of 5% per year (or the highest amount permitted by Law, if lower), or portion thereof, until received. 

7.4 Applicable Currency. All invoices issued pursuant to this Agreement shall be expressed in terms of, and payments made pursuant to
this Agreement shall be made in, the local currency of the applicable Production Facility of Producer. 

  
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 7.5 No Acknowledgement. Neither payments made by Purchaser nor the acceptance of payments
by Producer in an amount less than the amount shown on any invoice from Producer shall be construed as an acceptance or agreement with the amount so stated or the amount received. Either party may recover from the other the amount of any overpayment
or underpayment. Without limiting the generality of the foregoing, Producer may supplement any invoice it renders to Purchaser hereunder for less than the full amount to which it is entitled. 

ARTICLE VIII 

WARRANTIES; REMEDIES; LIMITATION ON LIABILITY 

8.1 Producer Warranties. 

(a) Producer covenants and agrees that each Supplied Product delivered to Purchaser hereunder will at the time of delivery (i) conform
with the Specifications applicable to such Supplied Product (except to the extent any Purchaser Supplied Components result in such Supplied Product not conforming with Specifications) and (ii) have been manufactured, processed, labeled,
packaged, stored and held in compliance with cGMP and in accordance with the Quality Agreement. 
 (b) Producer covenants and agrees that
all Supplied Products shall, upon Producer’s notice of its release of the Supplied Products to Purchaser, have the minimum remaining shelf life agreed in writing by Producer and Purchaser in writing from time to time; provided that any
failure to satisfy this Section 8.1(b) that is the fault of Purchaser (for example, as a result of Purchaser providing Purchaser-Supplied Components that are not reasonably able to be used in a timely fashion to satisfy this
Section 8.1(b) or approving the purchase of Purchaser-Approved Materials that are not reasonably able to be used in a timely fashion to satisfy this Section 8.1(b)) shall not be deemed to be in breach of this
Section 8.1(b). 
 (c) Producer covenants and agrees that (i) all equipment, tooling and molds utilized in the manufacture
and supply of Supplied Products hereunder by Producer, during the Term of this Agreement, be maintained in good operating condition and shall be maintained and operated in accordance with all applicable Laws, including cGMPs and (ii) Producer
shall perform all of its obligations under this Agreement in full compliance with all applicable Laws. Producer covenants and agrees that it shall hold during the Term of this Agreement all licenses, permits and similar authorizations required by
any Governmental Authority for Producer to perform its obligations under this Agreement. 
 (d) Baxter (in the event that Baxter is an
Affiliate of Producer) or Baxalta (in the event that Baxalta is an Affiliate of Producer) represents and warrants that such Party and the Producer (i) are each duly organized, validly existing and in good standing under the laws of their
applicable jurisdiction of organization, (ii) have power and authority necessary to conduct their respective businesses as currently being conducted and as contemplated herein, (iii) have power and authority to make, deliver and perform
its obligations under this Agreement and have taken all necessary action to authorize the execution, delivery and performance of this Agreement, (iv) have duly executed and delivered this Agreement and each applicable Joinder Agreement, and
such Agreement (including the applicable Joinder Agreement and any other written agreement with respect hereto) constitutes the legal, valid and binding obligation of them 

  
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and is enforceable in accordance with its terms and does not require the consent of, authorization of, filing with or other act by or in respect of, any Governmental Authority or any other Person
in connection with the execution, delivery, performance, validity or enforceability of this Agreement or any Joinder Agreement or other written agreement with respect hereto. 

8.2 Disclaimer. The covenants, agreements, representations and warranties of Producer and Purchaser (and their respective Affiliates)
set forth in this Article VIII shall be continuing and shall be binding upon each of them and their successors and assigns and shall inure to the benefit of the other Parties and their successors and assigns. The covenants, agreements,
representations and warranties provided by this Article VIII shall not apply to any defect or non-conformity with Specifications caused by the abuse, alteration or modification of the Supplied Products by the Purchaser or any Third Party. THE
COVENANTS, AGREEMENTS, REPRESENTATIONS AND WARRANTIES EXPRESSLY AND SPECIFICALLY PROVIDED BY PRODUCER AND ITS AFFILIATES IN THIS AGREEMENT ARE THE SOLE COVENANTS, AGREEMENTS, REPRESENTATIONS AND WARRANTIES OF PRODUCER AND ITS AFFILIATES WITH RESPECT
TO THE SUBJECT MATTER OF THIS AGREEMENT. NO OTHER COVENANTS, AGREEMENTS, REPRESENTATIONS OR WARRANTIES ARE PROVIDED WITH RESPECT TO THE SUPPLIED PRODUCTS AND THE COVENANTS, AGREEMENTS, REPRESENTATIONS AND WARRANTIES EXPRESSLY AND SPECIFICALLY MADE
IN THIS AGREEMENT ARE MADE IN LIEU OF ANY AND ALL OTHER COVENANTS, AGREEMENTS, WARRANTIES, REPRESENTATIONS AND GUARANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING WARRANTIES AS TO QUALITY, PERFORMANCE, MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE; PROVIDED, HOWEVER, THAT THE LIMITATIONS SET FORTH IN THIS SECTION 8.2 SHALL NOT NEGATE OR OTHERWISE AFFECT ANY COVENANT, AGREEMENT, REPRESENTATION OR WARRANTY THAT ANY PARTY MAY HAVE EXPRESSLY AND SPECIFICALLY MADE
UNDER THE SEPARATION AGREEMENT OR ANY OTHER ANCILLARY AGREEMENT. 
 8.3 Remedy For Breach. In the event of any failure to comply with
Sections 8.1(a) or 8.1(b) (any Supplied Products provided in breach of such Sections, “Non-Complying Products”), the Purchaser or any other Indemnitee shall (in addition to any other remedy available hereunder), at
Purchaser’s option, either (a) require Producer to, at its option, promptly repair or replace the Non-Complying Products with Supplied Products that comply with such warranties at no additional cost to Purchaser (in which case Producer
shall bear the cost of all associated transportation and/or disposal charges) or (b) receive a full credit for the purchase price of all Non-Complying Products (plus Purchaser’s cost of any Purchaser Supplied Components and Intermediate
Supplied Products, including the shipping costs with respect thereto, included in such Non-Complying Products) against current invoices payable by Purchaser to Producer under this Agreement (if no invoices are currently payable by Purchaser to
Producer, Producer promptly shall issue a refund to Purchaser of the amount of any such credit by wire transfer of immediately available funds to a bank account as specified by Purchaser). Notwithstanding anything to the contrary in this Agreement
(including any limitations on liability), Producer shall also be obligated for all transportation and disposal costs associated with any Non-Complying Products. 

  
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 8.4 Limitation on Liability. Notwithstanding any other provision of this Agreement to the
contrary: 
 (a) The Liabilities of Producer and its Affiliates and Representatives, collectively, under this Agreement for any act or
failure to act in connection herewith (including the performance or breach of this Agreement), whether in contract, tort (including negligence and strict liability) or otherwise, at law or equity, shall not exceed the amount of payments received by
the Producer (and not previously paid back as a Liability hereunder) in respect of the family of Supplied Products for which the Liability arises hereunder in the twelve months immediately prior to the date on which the Producer’s (or its
applicable Affiliate’s or Representative’s) action or inaction (or, prior to the one-year anniversary of this Agreement if such action or inaction occurs during the first year of this Agreement) giving rise to the Liability arises or
occurs. Notwithstanding the foregoing limitations set forth in this Section 8.4, if any issue for cause of Liability hereunder (i) impacts the Purchaser and its Affiliates in a manner that is disproportionate to the effect on the
Producer and its Affiliates or (ii) demonstrates that the Producer and its Affiliates are not acting with the same level of care as they would for their own business at such facility or other facilities on which the Producer relies in a manner
similar to the Purchaser’s reliance on such production), then the Producer’s Liability shall be limited to two-thirds (66.66%) of the indemnifiable Liabilities related thereto (with the Purchaser responsible for the other one-third
(33.33%)). 
 (b) Notwithstanding anything to the contrary contained in the Separation Agreement or this Agreement, in no event shall any
Party have any Liability to the other (including under Article XI) for any consequential, special, incidental, indirect or punitive damages, lost profits or similar items (including loss of revenue, income or profits, diminution of value or
loss of business reputation or opportunity relating to a breach or alleged breach hereof); provided that (i) such limitation with respect to lost revenue, income or profits shall not limit any Party’s right to indemnification in
accordance with this Agreement with respect to Liabilities that are the direct, proximate and reasonably foreseeable result of the breach of any representation, warranty, covenant or agreement in this Agreement by the other party or its Affiliates
and (ii) subject to the other limitations herein, each Party and its Affiliates shall be entitled to indemnification, to the extent otherwise provided in this Agreement, with respect to all elements of any claim for damages asserted against
such party or any of its Affiliates by any unaffiliated Third Party. 
 (c) The limitations in Section 8.4(a) shall not apply in
respect of any Liability arising out of or in connection with the gross negligence, willful misconduct, or fraud of or by the Party to be charged. 

8.5 Purchaser Warranties. 

(a) Purchaser covenants and agrees that the Purchaser Supplied Components, as furnished to Producer under this Agreement, shall be used,
handled or stored in accordance with the Specifications, all applicable Laws, and the Quality Agreement and shall conform to the applicable specifications for such Purchaser Supplied Components 

  
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 (b) Purchaser covenants and agrees that the Supplied Products as manufactured in accordance with
the Specifications and cGMPs will comply with all applicable Laws and will not (excluding any Producer Products) infringe or otherwise violate the Intellectual Property of any Person. 

(c) Baxter (in the event that Baxter is an Affiliate of Purchaser) or Baxalta (in the event that Baxalta is an Affiliate of Purchaser)
represents and warrants that such Party and the Purchaser (i) are each duly organized, validly existing and in good standing under the laws of their applicable jurisdiction of organization, (ii) have power and authority necessary to
conduct their respective businesses as currently being conducted and as contemplated herein, (iii) have power and authority to make, deliver and perform its obligations under this Agreement and have taken all necessary action to authorize the
execution, delivery and performance of this Agreement, (iv) have duly executed and delivered this Agreement and each applicable Joinder Agreement or other written agreement with respect hereto, and such Agreement (including the applicable
Joinder Agreement or other written agreement) constitutes the legal, valid and binding obligation of them and is enforceable in accordance with its terms and does not require the consent of, authorization of, filing with or other act by or in
respect of, any Governmental Authority or any other Person in connection with the execution, delivery, performance, validity or enforceability of this Agreement or any Joinder Agreement or other written agreement with respect hereto. 

ARTICLE IX 
 REVIEW
MEETINGS 
 9.1 Steering Committee. Producer and Purchaser each shall designate in writing to the other one or more
representatives to act as a contact person with respect to all issues relating to the provisions of this Agreement and shall designate any additional individuals to serve as its representatives pursuant to this Section 9.1. Such
representatives (together, the “Steering Committee”) shall hold review meetings by telephone or in person, as mutually agreed upon, once per month for the first six months following the date of this Agreement, and once per quarter
thereafter until the termination of this Agreement (unless otherwise mutually agreed by the Parties in writing), to discuss issues relating to this Agreement (each, a “Review Meeting”). The Steering Committee shall consist of an
equal number of members from Baxter and Baxalta at all times. All decisions by the Steering Committee shall be effective only if mutually agreed be a majority of the Steering Committee, which must include at least one member of the Steering
Committee designated by each of Baxter and Baxalta. In the Review Meetings, such representatives shall (a) hold general business discussions relating to, without limitation, development and potential improvements in connection with the
manufacture of the Supplied Products and (b) discuss any problems identified relating to the manufacture of Supplied Products. 

ARTICLE X 
 TERMINATION

 10.1 Normal Termination of Agreement. This Agreement (or any Joinder Agreement or portion thereof) shall terminate when the
Initial Term and any other Renewal Terms for each Supplied Product covered thereby shall have expired without renewal. Purchaser shall have the right to terminate any Joinder Agreement by giving at least 12 months’ Notice to Producer specifying
the effective date of such termination. 

  
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 10.2 Other Terminations; Consequences of Termination 

(a) In the event that either Baxter or Baxalta (the “Insolvent Party”): (i) becomes insolvent, or institutes or has
instituted against it a petition for bankruptcy or is adjudicated bankrupt, (ii) executes a bill of sale, deed of trust, or a general assignment for the benefit of creditors, (iii) is dissolved or transfers a substantial portion of its
assets to a Third Party or (iv) has a receiver appointed for the benefit of its creditors, or has a receiver appointed on account of insolvency, then the Insolvent Party shall immediately notify the other of such event and such other Party
shall be entitled to: (A) terminate this Agreement or any or all Joinder Agreements for cause immediately upon written notice to the Insolvent Party or (B) request that the Insolvent Party or its successor provide adequate assurances of
continued and future performance in form and substance acceptable to such other Party, which shall be provided by the Insolvent Party within ten (10) calendar days of such request, and the other Party may terminate this Agreement or any or all
Joinder Agreements for cause immediately upon written notice to the Insolvent Party in the event that the Insolvent Party fails to provide such assurances acceptable to the other Party within such ten (10) day period. 

(b) Either Baxter or Baxalta may terminate the applicable Joinder Agreement for cause immediately upon written notice to the other in the
event that such other Party (or its Affiliated Producer or Purchaser that is a party to such Joinder Agreement) fails to perform or comply with any material obligation or requirement under such Joinder Agreement, through no fault of the Party (or
its Affiliates) initiating such termination, that remains uncured for sixty (60) calendar days following written notice to such Party of such breach. 

(c) Producer shall promptly following termination with respect to any Supplied Product transfer to Purchaser possession (except to the extent
of any Dedicated Equipment that by its nature is not movable property) of (i) the Dedicated Equipment for which Purchaser has elected to take physical possession pursuant to Section 2.15, together with any additional machinery,
equipment or other fixed assets located at any Production Facility or Subcontractor Facility and associated with such Supplied Product that were directly and expressly paid for by Purchaser (or that are owned by Producer and used exclusively in the
production of Supplied Products to the extent Purchaser pays Producer the cost thereof within 30 days of such termination) pursuant to this Agreement (unless and until such Dedicated Equipment or other machinery, equipment or fixed assets continue
to be used or necessary for the production or supply of other continuing Supplied Products), and (ii) all technical information to the extent relating to the operation or use of such Dedicated Equipment or other machinery, equipment or fixed
assets for which possession and ownership is transferred to Purchaser, or the manufacturing and quality testing of such Purchaser Products to the extent relating to such Dedicated Equipment or other machinery, equipment or fixed assets for which
possession and ownership is transferred to Purchaser (including, without limitation, standard operating materials, preventive maintenance schedules, maintenance logs, technical manuals, SOPs for quality assurance and quality control, supplier
information and validation and verification information); provided that this Section 10.2(c) shall not be deemed to require Producer to transfer any rights with respect to Patents, Trademarks or Other Intellectual Property

  
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(other than information related solely to Purchaser and its businesses). Producer shall provide to Purchaser reasonable access to the technical experts employed by Producer and any contractors
that service such Dedicated Equipment or other machinery, equipment or fixed assets for which possession and ownership is transferred to Purchaser, as applicable, to assist, consult and cooperate with technical personnel of Purchaser or its
manufacturing sublicensee in connection with such transfer. In addition, Producer shall cooperate with Purchaser to promptly provide to Purchaser (at Purchaser’s cost) all information required for the transfer to the Purchaser of the product
licenses for the Purchaser Products or required to permit Purchaser to operate such Dedicated Equipment or other machinery, equipment or fixed assets for which possession and ownership is transferred to Purchaser in compliance with applicable
regulatory requirements. Producer shall provide such assistance to Purchaser for a charge per Producer employee equal to the proportionate share of such employee’s fully-burdened salary and benefits (including fringe benefits) in effect from
time to time plus reasonable out-of-pocket travel and travel related costs and expenses. 
 (d) Following the expiration or termination
without renewal of the Initial Term or any Renewal Term with respect to the applicable Supplied Product, Producer shall, or shall cause its subcontractors to, disassemble, crate and remove from the Production Facilities or Subcontractor Facilities
all of the machinery, equipment and other fixed assets (including any transferring Dedicated Equipment) to be transferred to Purchaser pursuant to Section 10.2(c); provided that Purchaser may directly undertake the retention of a
Third Party selected by it to complete such actions, subject to Producer’s consent. Such disassembly, crating and removal shall be conducted in a manner that is not unreasonably disruptive to, and does not impose unreasonable burdens upon,
Producer, its subcontractors or any of their other operations at the Production Facilities or the Subcontractor Facilities. Producer shall provide a written estimate of the cost of (i) such disassembly, crating and removal, (ii) the
disconnection of any and all electrical, air piping, conduits, dust collecting ducts and any other connections to the machinery, equipment and other fixed assets (including the transferring Dedicated Equipment) to be transferred to Purchaser in a
manner which preserves in all material respects the integrity of the Production Facilities’ or Subcontractor Facilities’ structure and fixtures, and (iii) the restoration of the Production Facilities or Subcontractor Facilities to a
“four wall” condition, including any damage to the Production Facilities or Subcontractor Facilities which, despite the exercise of reasonable care by Producer or such subcontractor, was caused by or resulted from the removal of the
machinery, equipment and other fixed assets (including the transferring Dedicated Equipment) to be transferred to Purchaser as contemplated by this Section 10.2(d), and Purchaser shall reimburse Producer or the applicable subcontractor,
by wire transfer of immediately available funds to a bank account as specified by Producer or such subcontractor promptly upon request therefor, for all reasonable, out-of-pocket costs and expenses incurred by Producer in connection with the same.
Purchaser shall be responsible for arranging for all transportation of such machinery, equipment and other fixed assets (including the transferring Dedicated Equipment) being transferred to Purchaser and for the timely application in its own name
for any required export license, import license, exchange permit or any other governmental authorization required to transfer such machinery, equipment and other fixed assets (including the transferring Dedicated Equipment) from a Production
Facility or Subcontractor Facility to Purchaser’s location. Producer shall not be responsible or liable if any government authorization is delayed, denied, revoked, restricted or not renewed for any reason whatsoever. Producer shall have no
responsibility for installing or validating any such machinery, equipment and other fixed assets 

  
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(including the transferring Dedicated Equipment) at a new location, except to the extent of Producer’s Technical Support obligations pursuant to Section 10.3 or as otherwise
specifically agreed by Producer and Purchaser in writing from time to time. IN ADDITION, ALL SUCH TRANSFERRING MACHINERY, EQUIPMENT AND OTHER FIXED ASSETS (INCLUDING THE TRANSFERRING DEDICATED EQUIPMENT) IS BEING TRANSFERRED TO PURCHASER ON AN
“AS IS, WHERE IS” BASIS, AND PRODUCER AND ITS AFFILIATES DISCLAIM ALL WARRANTIES, REPRESENTATIONS AND GUARANTIES WHETHER EXPRESS OR IMPLIED, INCLUDING ANY REPRESENTATION OR WARRANTY AS TO QUALITY, PERFORMANCE, MERCHANTABILITY OR FITNESS
FOR ANY PARTICULAR PURPOSE. In addition to the foregoing, Producer shall provide the following additional support to assist Purchaser in its transition of Purchaser Products, and such transferring machinery, equipment and other fixed assets
(including the transferring Dedicated Equipment) to the locations designated by Purchaser: 
 (i) Producer and Purchaser
shall consult regarding the building of inventory of Supplied Products to levels greater than as necessary to meet Purchaser’s Firm Orders prior to the move, and Producer shall use commercially reasonable efforts to build mutually agreed levels
of such inventory (which, as with Firm Orders, will be invoiced by Producer upon its release of the applicable Supplied Products) as reasonably requested by Purchaser to support Purchaser’s customer requirements during the anticipated
transition period; provided that Purchaser shall be responsible and shall reimburse Producer for all extraordinary costs and expenses incurred by Producer in connection with such inventory build, including overtime, bonuses in connection with
special runs, expediting charges or other increased or extraordinary costs of obtaining raw materials or components from Third Parties, as well as all transportation, warehousing and similar costs; provided further that an estimate of
extraordinary costs and expenses shall be provided in good faith to the other Party for its approval in advance of incurring such costs and expenses (which approval may be either general or with respect to specific expenditures), with Producer
having no obligations pursuant to incur such costs and expenses if not approved by the other Party (and any failure to perform as a result of not incurring such costs and expenses shall not be deemed a breach by Producer or its Affiliates of this
Agreement); 
 (ii) Producer shall provide reasonable levels of consultation and assistance to Purchaser in connection with
the installation, debugging and achievement of “first of code” production of the transferred machinery, equipment and other fixed assets (including the transferring Dedicated Equipment) at such locations as designated by Purchaser, subject
to Purchaser having available sufficient resources to manage the installation, debugging and validation of the transferred Purchaser Product, including adequately trained permanent and temporary personnel; and 

(iii) additional consultation and assistance shall be considered by the Steering Committee and shall be subject to the
availability of resources. 
 Producer shall provide such assistance to Purchaser for a charge per Producer employee equal to the proportionate share of
such employee’s fully-burdened salary and benefits (including fringe benefits) in effect from time to time plus reasonable out-of-pocket travel and travel related costs 

  
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and expenses. Notwithstanding the foregoing, Purchaser shall not be required to pay the fully-burdened salary and benefits of any employee fully dedicated to the production of any Purchaser
Products to the extent such amounts are included in the Production Cost. 
 (e) Upon the termination or expiration of any Joinder Agreement
(or of the requirement to provide any Supplied Product pursuant to any Joinder Agreement), Purchaser will purchase at cost all raw materials, components, labeling or packaging or other inventories held by Producer in the ordinary course of
manufacturing or supplying the Supplied Products, including any unique materials used to support production for Purchaser, and any works in process related to any Supplied Products; provided that Producer uses its commercially reasonable
efforts to reduce or exhaust existing stocks of all such materials or inventories prior to the date of expiration or termination. All delivery, removal and transportation costs incurred in connection with this Section 10.2(e) shall be
borne by Purchaser except in the event Purchaser terminates any such Joinder Agreement pursuant to Sections 10.2(a) or 10.2(b), in which case all such reasonable costs shall be borne by Producer to the extent such costs are in excess
of the amount that would have been incurred for similar delivery, removal or transportation had the Joinder Agreement expired at the end of the then-current term. 

(f) Producer will use commercially reasonable efforts at Purchaser’s cost to cooperate with any reasonable alternative method of
delivery, disposal or removal of such machinery, equipment and other fixed assets described in Sections 10.2(c) or 10.2(d) to the extent proposed by Purchaser, so long as such method may be promptly undertaken and is not unreasonably
disruptive to Producer (and so long as such method is not in conflict with any other requirement related to such machinery, equipment and fixed assets, including restrictions set forth herein or in any Ancillary Agreement). 

(g) To the extent of any conflict between this Section 10.2 or Section 10.3 and any specific limitation or provision
with respect to such transferring machinery, equipment (including any transferring Dedicated Equipment) or fixed assets pursuant to this Agreement, the Separation Agreement or any Ancillary Agreement (including, for the avoidance of doubt,
limitations on the use of certain technology or the physical location of any machinery, equipment or fixed assets), then such limitations or provisions otherwise set forth in this Agreement, the Separation Agreement or any Ancillary Agreement shall
prevail. 
 (h) If prior to the end of the Initial Term, this Agreement (or any Joinder Agreement) is terminated pursuant to the last
sentence of Section 10.1, or due to the breach or insolvency of the other Party pursuant to Section 10.2(a) or 10.2(b), Purchaser shall continue to be responsible for a portion of the shared overhead (excluding, for
the avoidance of doubt, any direct overhead) that was applicable under the terminated Joinder Agreement (or in connection with any other written agreement entered into with respect to such Joinder Agreement) as of the time of termination for up to
three years after the termination (but in no case for any period that extends beyond the end of the Initial Term) only as follows: 

(i) In the initial 12-month period after such termination (but, for the avoidance of doubt, expiring at the end of the
originally scheduled Initial Term), Purchaser shall be responsible for 75% of the shared overhead for which it would have been responsible had such termination not occurred; 

  
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 (ii) In the second 12-month period after such termination (but, for the avoidance
of doubt, expiring at the end of the originally scheduled Initial Term), Purchaser shall be responsible for 50% of the shared overhead for which it would have been responsible had such termination not occurred; and 

(iii) In the third 12-month period after such termination (but, for the avoidance of doubt, expiring at the end of the
originally scheduled Initial Term), Purchaser shall be responsible for 25% of the shared overhead for which it would have been responsible had such termination not occurred. 

10.3 Transitional Support. 

(a) Upon or within a mutually agreed time period prior to the expiration or termination of the Term of any Joinder Agreement (or such earlier
time as may be requested by Purchaser), with respect to each family of Purchaser Products provided pursuant to such Joinder Agreement, Producer shall provide reasonable technical support to Purchaser, as set forth in this Section 10.3,
to assist Purchaser in the technology transfer of production of such Purchaser Products to either one (1) facility of Purchaser or one (1) facility of an alternative source of supply (which shall not in any case be a Prohibited Person) as
designated by Purchaser (“Technical Support,” and such facility, the “Receiving Site”); provided that this Section 10.3 shall not be deemed to require Producer to transfer any rights with respect
to Patents, Trademarks or Other Intellectual Property (other than information related solely to Purchaser and its businesses); provided further that, to the extent any written agreement between Producer and Purchaser with respect to
any Joinder Agreement sets forth a number of hours of Producer’s time or other requirements (or limitations) with respect to the Technical Support obligations described herein, such requirements or limitations shall supersede any more general
requirements described in this Section 10.3 with respect to the same subject matter. Such reasonable Technical Support shall consist of: 

(i) Supplying a technical package to facilitate the transfer of all relevant manufacturing information to the Receiving Site,
including formulation descriptions, manufacturing instructions, specifications, methods and material supplier information, as applicable, except for any information that is (A) Sensitive Producer Technology or (B) subject to
confidentiality obligations owing to a Third Party other than Purchaser or its Affiliates; 
 (ii) Hosting one (1) site
visit to the Producer’s Facility by the Purchaser or such designated alternative source supplier to observe production of the applicable Purchaser Products (such that, for clarity, no more than one (1) such site visit shall occur for such
family of Purchaser Products), in each case at a mutually agreed date and time during Producer’s normal operating hours and subject to such confidentiality procedures or requirements as may be requested or implemented by Producer,
provided that (A) the request for each such visit shall be made so as to allow for sufficient advance preparation time and can be accommodated in the requested timeframe without interruption to Producer’s routine production,
(B) such visit shall not include access to Sensitive Producer Technology and (C) additional visits shall be permitted upon reasonable request of Purchaser, so long as such visits do not disrupt the ordinary course operations of
Producer’s other businesses; 

  
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 (iii) Performing high-level consultation and answering queries for Purchaser
through the transfer process; and 
 (iv) Providing Purchaser Product samples required for transfer activities, in each case
of clauses (i)-(iv) at the expense of Purchaser. 
 (b) Purchaser or such designated alternative source supplier shall be responsible
for providing leadership of any technology transfer from Producer. For the avoidance of doubt, Purchaser or such designated alternative source supplier shall be solely responsible (subject in any case to the limitations described herein, including
in Section 10.3(a), with respect to the scope of the Technical Support) for identifying any and all Technical Support that is required from Producer to assure such technology transfer is successful. 

(c) The Parties shall reasonably cooperate and mutually agree to facilitate the provision of any additional reasonable Technical Support with
respect to the applicable Purchaser Product to Purchaser or such designated alternative source supplier, including assistance through the transfer process, Producer personnel visits to the Receiving Site, and training and troubleshooting during the
Receiving Site’s first production run of the Purchaser Product, in each case as and to the extent agreed by Producer in each instance (and subject to Section 10.3(f)). 

(d) Producer shall have the right to prioritize its own projects and activities over any Technical Support hereunder with respect to staffing,
production activities and other resources or obligations. In addition, Producer shall have no obligation to hire or retain any individuals or make any capital expenditures in connection with the Technical Support, and Producer’s obligation to
provide Technical Support is contingent upon the continued employment by Producer of those individuals capable of providing such Technical Support. If any Producer personnel involved in providing the Technical Support to Purchaser hereunder is hired
by Purchaser or any of its Affiliates, Producer’s obligation to provide any portion of the Technical Support under this Agreement that was previously provided by such Producer personnel shall terminate and be of no further force or effect
(without limiting any applicable non-solicitation obligations of Purchaser pursuant to the Separation Agreement or any other Ancillary Agreement). 

(e) Purchaser shall be solely responsible for any and all regulatory or other Governmental Authority requirements, activities and related
costs and expenses that arise in conjunction with any Technical Support, technology transfer of production or production of each Purchaser Product to or at the Receiving Site. These activities may also include, but are not limited to, creation of
additional data or technical information, analytical method modifications or other work of a technical nature required to support regulatory queries or contemporary standards and guidelines driven by the manufacturing transfer. 

(f) Except in the event of termination of this Agreement by Purchaser or its Affiliates pursuant to Sections 10.2(a) or 10.2(b),
Purchaser shall be responsible for, and shall 

  
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promptly reimburse Producer upon Producer’s written request for, any and all out-of-pocket costs and expenses incurred by or on behalf of Producer in connection with any Technical Support
under this Agreement, as well as Producer’s time (charged at then-current staff rates). 
 (g) With respect to each Purchaser Product,
Producer shall provide to Purchaser, in connection with the Technical Support or reasonably promptly following Purchaser’s written request therefor following termination of the applicable Joinder Agreement, such analytical books and records
(including with respect to methods) in Producer’s possession or control that are required in connection with disclosures to any applicable Governmental Authority to qualify the applicable Producer Product for release testing to meet the
then-current applicable Marketing Authorization, in each case in accordance with Section 15.1. 
 (h) Notwithstanding anything
to the contrary herein, except as expressly provided in Section 10.3(g), Producer shall have no obligation to disclose, license or otherwise provide confidential or proprietary information of Producer or any Third Party, including any
Sensitive Producer Technology, in connection with this Agreement or any Technical Support or technology transfer therein. 
 ARTICLE XI

 INDEMNITY 

11.1 Producer’s Obligation. Each Baxter Indemnifying Party (to the extent Producer is Baxter or an Affiliate of Baxter) or Baxalta
Indemnifying Party (to the extent Producer is Baxalta or an Affiliate of Baxalta) agrees to indemnify and hold harmless either the Baxter Indemnitees (in the case of a Baxalta Indemnifying Party) or the Baxalta Indemnitees (in the case of a Baxter
Indemnifying Party) from and against, and in respect of, any and all Liabilities incurred by any of the Baxter Indemnitees (in the case of a Baxalta Indemnifying Party) or Baxalta Indemnitees (in the case of a Baxter Indemnifying Party) that arise
out of, relate to, or result from: 
 (a) any failure by it or any of its Affiliates to comply in any respect with any of the covenants,
agreements, representations or warranties set forth in Section 8.1; or 
 (b) any actual or alleged infringement,
misappropriation or violation of the patent, copyright, trademark or other proprietary rights of any Third Party by the Producer Products; or 

(c) any breach by it or any of its Affiliates of its obligations under this Agreement; 

provided, however, that this Section 11.1 shall not apply to any Liabilities to the extent that the Liability is within the scope of
the indemnity obligations set forth in Section 11.2 below. Expenses shall be reimbursed or advanced when and as incurred promptly upon submission of statements by any Indemnitee to Producer. 

11.2 Purchaser’s Obligation. Each Baxter Indemnifying Party (to the extent Purchaser is Baxter or an Affiliate of Baxter) or
Baxalta Indemnifying Party (to the extent Purchaser is Baxalta or an Affiliate of Baxalta) agrees to indemnify and hold harmless either the 

  
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Baxter Indemnitees (in the case of a Baxalta Indemnifying Party) or the Baxalta Indemnitees (in the case of a Baxter Indemnifying Party) from and against, and in respect of, any and all
Liabilities asserted against or incurred by any of the Indemnitees that arise out of, relate to or result from: 
 (a) any actual or alleged
infringement, misappropriation or violation of the patent, copyright, trademark or other proprietary rights of any Third Party, arising out of the manufacture by Producer of Purchaser Products in accordance with the Specifications; 

(b) any actual or alleged infringement, misappropriation or violation of the patent, copyright, trademark or other proprietary rights of any
Third Party by the Purchaser Products; 
 (c) the development, manufacture, storage, promotion, marketing, distribution, sale or use of any
Supplied Product; 
 (d) any failure of the Purchaser Supplied Components to comply in any material respect with the specifications therefor
as provided in Section 2.7(b); or 
 (e) any breach by it or any of its Affiliates of its obligations under this Agreement; 

provided, however, that this Section 11.2 shall not apply to any Liabilities to the extent that the Liability is within the scope of
the indemnity obligations set forth in Section 11.1 above; and provided, further, that clause (c) shall not include (i) the development, manufacture, storage, promotion, marketing, distribution, sale or use by or
on behalf of Producer of Producer Products or (ii) the manufacture or storage by or on behalf of Producer of Purchaser Products in material breach of the warranties contained in Section 8.1. Expenses shall be reimbursed or advanced
when and as incurred promptly upon submission of statements by any Indemnitee to Purchaser. 
 11.3 Indemnification Obligations Net of
Insurance Proceeds and Other Amounts. 
 (a) Insurance Proceeds and Other Amounts. The Parties intend that any Liability subject
to indemnification or contribution pursuant to this Agreement: (i) shall be reduced by any Insurance Proceeds or other amounts actually recovered (net of any out-of-pocket costs or expenses incurred in the collection thereof) from any Person by
or on behalf of the Indemnitee in respect of any indemnifiable Liability; (ii) shall not be increased to take into account any Tax costs incurred by the Indemnitee arising from any Indemnity Payments received from the Indemnifying Party (as
defined below); and (iii) shall not be reduced to take into account any Tax benefit received by the Indemnitee arising from the incurrence or payment of any Indemnity Payment; provided that, in the event of any conflict between
Sections 11.3(a)(ii) and 11.3(a)(iii), on the one hand, and any term or provision of the Tax Matters Agreement, on the other hand, the Tax Matters Agreement shall control. Accordingly, the amount which any Person against whom a claim
is made for indemnification in accordance with this Agreement (an “Indemnifying Party”) is required to pay to any Indemnitee shall be reduced by any Insurance Proceeds or any other amounts theretofore actually recovered (net of any
out-of-pocket costs or expenses incurred in the collection thereof) by or on behalf of the Indemnitee in respect of the related Liability. If an Indemnitee receives a payment required by this Agreement from an

  
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Indemnifying Party in respect of any Liability (an “Indemnity Payment”) and subsequently receives Insurance Proceeds or any other amounts in respect of the related Liability,
then the Indemnitee shall pay to the Indemnifying Party an amount equal to the excess of the Indemnity Payment received over the amount of the Indemnity Payment that would have been due if the Insurance Proceeds or such other amounts (net of any
out-of-pocket costs or expenses incurred in the collection thereof) had been received, realized or recovered before the Indemnity Payment was made. 

(b) Insurers and Other Third Parties Not Relieved. The Parties hereby agree that an insurer or other Third Party that would otherwise
be obligated to pay any amount shall not be relieved of the responsibility with respect thereto or have any subrogation rights with respect thereto by virtue of any provision contained in this Agreement or any Ancillary Agreement, and that no
insurer or any other Third Party shall be entitled to a “windfall” (e.g., a benefit they would not be entitled to receive in the absence of the indemnification or release provisions) by virtue of any provision contained in this Agreement
or any Ancillary Agreement. Each Party shall, and shall cause its Subsidiaries to, use commercially reasonable efforts to collect or recover, or allow the Indemnifying Party to collect or recover, any Insurance Proceeds that may be collectible or
recoverable respecting the Liabilities for which indemnification may be available under this Article XI. Notwithstanding the foregoing, an Indemnifying Party may not delay making any indemnification payment required under the terms of this
Agreement, or otherwise satisfying any indemnification obligation, pending the outcome of any Proceeding to collect or recover Insurance Proceeds, and an Indemnitee need not attempt to collect any Insurance Proceeds prior to making a claim for
indemnification or receiving any Indemnity Payment otherwise owed to it under this Agreement. 
 11.4 Procedures for Indemnification of
Third Party Claims. 
 (a) Notice of Claims. If an Indemnitee receives notice of the assertion or commencement by a Third Party of
any Proceeding against the Indemnitee with respect to which the Indemnitee believes that Baxalta (in the case of a Baxter Indemnitee) or Baxter (in the case of a Baxalta Indemnitee) is obligated to provide indemnification to such Indemnitee pursuant
to this Agreement (collectively, a “Third Party Claim”), such Indemnitee shall (if such notice is received following the Effective Date) give such Indemnifying Party Notice thereof within ten (10) days (or sooner if the nature
of the Third Party Claim so requires) after becoming aware of such Third Party Claim. The Notice must describe the Third Party Claim in reasonable detail or, in the alternative, include copies of all notices and documents (including court papers)
received by the Indemnitee relating to the Third Party Claim. Notwithstanding the foregoing, the failure of any Indemnitee to give the Notice as provided in this Section 11.4(a) shall not relieve the related Indemnifying Party of its
obligations under this Article IV, except to the extent that such Indemnifying Party is actually prejudiced by such failure to give the Notice in accordance with this Section 11.4(a). 

(b) Control of Defense. An Indemnifying Party may elect to defend (and seek to settle or compromise), at its own expense and with
its own counsel, any Third Party Claim (or, to the extent possible, only that portion of the Third Party Claim for which indemnification is sought). Within thirty (30) days after the receipt of a Notice from an Indemnitee in accordance with
Section 11.4(a) (or sooner, if the nature of the Third Party Claim so requires), the 

  
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Indemnifying Party shall provide a Notice to the Indemnitee indicating whether the Indemnifying Party shall assume responsibility for defending the Third Party Claim and specifying any
reservations or exceptions to its defense. If an Indemnifying Party elects not to assume responsibility for defending any Third Party Claim or fails to notify an Indemnitee of its election within thirty (30) days after receipt of a Notice from
an Indemnitee as provided in Section 11.4(a), then the Indemnitee that is the subject of such Third Party Claim shall be entitled to continue to conduct and control the defense of such Third Party Claim. 

(c) Allocation of Defense Costs. If an Indemnifying Party has elected to assume the defense of a Third Party Claim, whether with or
without any reservations or exceptions with respect to such defense, then such Indemnifying Party shall be solely liable for all fees and expenses incurred by it in connection with the defense of such Third Party Claim and shall not be entitled to
seek any indemnification or reimbursement from the Indemnitee for any such fees or expenses incurred during the course of its defense of such Third Party Claim, regardless of any subsequent decision by the Indemnifying Party to reject or otherwise
abandon its assumption of such defense. If an Indemnifying Party elects not to assume responsibility for defending any Third Party Claim or fails to notify an Indemnitee of its election within thirty (30) days after receipt of a Notice from an
Indemnitee as provided in Section 11.4(a), and the Indemnitee conducts and controls the defense of such Third Party Claim, then the Indemnifying Party shall be liable for all reasonable fees and expenses incurred by the Indemnitee in
connection with the defense of such Third Party Claim. 
 (d) Right to Monitor and Participate. An Indemnitee that does not conduct
and control the defense of any Third Party Claim, or an Indemnifying Party that has failed to elect to defend any Third Party Claim as contemplated hereby, nevertheless shall have the right to employ separate counsel (including local counsel as
necessary) of its own choosing to monitor and participate in (but not control) the defense of any Third Party Claim for which it is a potential Indemnitee or Indemnifying Party, but the fees and expenses of such counsel shall be at the expense of
such Indemnitee or Indemnifying Party, as the case may be, and the provisions of Section 11.4(c) shall not apply to such fees and expenses. Notwithstanding the foregoing, subject to Sections 6.06 and 6.07 of the Separation
Agreement (as if such Sections were included in this Agreement), each non-controlling Person shall cooperate with the Person entitled to conduct and control the defense of such Third Party Claim in such defense and make available to the controlling
Person, at the non-controlling Person’s expense, all witnesses, information and materials in such Person’s possession or under such Person’s control relating thereto as are reasonably required by the controlling Person. In addition to
the foregoing, if any Indemnitee shall in good faith determine that such Indemnitee and the Indemnifying Party have actual or potential differing defenses or conflicts of interest between them that make joint representation inappropriate, then the
Indemnitee shall have the right to employ separate counsel (including local counsel as necessary) and to participate in (but not control) the defense, compromise, or settlement thereof, and the Indemnifying Party shall bear the reasonable fees and
expenses of such counsel for all Indemnitees. 
 (e) No Settlement. Except with respect to the Indemnitee if the Indemnifying Party
has failed to assume the defense of the Third Party Claim in accordance with the terms of this Agreement, no Party (or any Subsidiary thereof) may settle or compromise any Third Party Claim for which any Indemnitee is seeking to be indemnified
hereunder without the prior written 

  
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consent of the other non-Affiliate Party, which consent may not be unreasonably withheld, unless such settlement or compromise is solely for monetary damages, does not involve any finding or
determination of wrongdoing or violation of Law by any non-Affiliate Party and provides for a full, unconditional and irrevocable release of each other non-Affiliate Party from all Liability in connection with the Third Party Claim. The Parties
hereby agree that if an Indemnitee presents the other non-Affiliate Party with a Notice containing a proposal to settle or compromise a Third Party Claim for which any Indemnitee is seeking to be indemnified hereunder and the Party receiving such
proposal does not respond in any manner to the Party or other Indemnitee presenting such proposal within thirty (30) days (or within any such shorter time period that may be required by applicable Law or court order) of receipt of such
proposal, then the Party receiving such proposal shall be deemed to have consented to the terms of such proposal. 
 (f) Pending Third
Party Claims. The provisions of this Article XI shall apply to Third Party Claims that are already pending or asserted as well as Third Party Claims brought or asserted after the Effective Date. There shall be no requirement under this
Section 11.4 to give a Notice with respect to any Third Party Claims that exist as of the Effective Date. 
 11.5 Additional
Matters. 
 (a) Timing of Payments. Indemnity Payments or contribution payments in respect of any Liabilities for which an
Indemnitee is entitled to indemnification or contribution under this Article XI shall be paid reasonably promptly (but in any event within sixty (60) days of the final determination of the amount that the Indemnitee is entitled to
indemnification or contribution under this Article XI) by the Indemnifying Party to the Indemnitee as such Liabilities are incurred upon demand by the Indemnitee, including reasonably satisfactory documentation setting forth the basis
for the amount of such Indemnity Payments or contribution payments, including documentation with respect to calculations made and consideration of any Insurance Proceeds that actually reduce the amount of such Liabilities. The indemnity and
contribution provisions contained in this Article XI shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of any Indemnitee; and (ii) the knowledge by the Indemnitee of
Liabilities for which it might be entitled to indemnification or contribution hereunder. 
 (b) Subrogation. In the event of payment
by or on behalf of any Indemnifying Party to any Indemnitee in connection with any Third Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of
which such Indemnitee may have any right, defense or claim relating to such Third Party Claim against any claimant or plaintiff asserting such Third Party Claim or against any other Person. Such Indemnitee shall cooperate with such Indemnifying
Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right, defense or claim. 

(c) Pursuit of Claims Against Third Parties. If (i) a Party incurs any Liability arising out of this Agreement; (ii) an
adequate legal or equitable remedy is not available for any reason against the other Party to satisfy the Liability incurred by the incurring Party; and (iii) a legal or equitable remedy may be available to the other Party against a Third Party
for such 

  
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Liability, then the other Party shall use its commercially reasonable efforts to cooperate with the incurring Party, at the incurring Party’s expense, to permit the incurring Party to obtain
the benefits of such legal or equitable remedy against the Third Party. 
 (d) Limitations on Subrogration Rights and Pursuit of
Claims. Notwithstanding Sections 11.5(b) and 11.5(c), no Indemnifying Party shall have the right to pursue claims not directly available to it, or otherwise cause any Indemnitee to pursue any such claims, against Third Parties
(other than insurance providers) with whom any Indemnitee (or Affiliate thereof) has a material commercial relationship, if such Indemnitee (or Affiliate thereof) determines in good faith that the pursuit of such claim would reasonably be expected
to unreasonably disrupt or diminish the commercial relationship with such Third Party. 
 11.6 Right of Contribution. 

(a) Contribution. If any right of indemnification contained in Section 11.1 or 11.2 is held unenforceable or is
unavailable for any reason, or is insufficient to hold harmless an Indemnitee in respect of any Liability for which such Indemnitee is entitled to indemnification hereunder, then the Indemnifying Party shall contribute to the amounts paid or payable
by the Indemnitees as a result of such Liability (or actions in respect thereof) in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and its Subsidiaries, on the one hand, and the Indemnitees entitled to
contribution, on the other hand, as well as any other relevant equitable considerations. 
 (b) Contribution Procedures. The
provisions of Sections 11.3 through 11.9 shall govern any contribution claims. 
 11.7 Covenant Not to Sue. Each Party
hereby covenants and agrees that none of it, its Subsidiaries or any Person claiming through it shall bring suit or otherwise assert any claim against any Indemnitee, or assert a defense against any claim asserted by any Indemnitee, before any
court, arbitrator, neutral mediator or administrative agency anywhere in the world, alleging that the provisions of this Article XI are void or unenforceable for any reason. 

11.8 Sole Monetary Remedy. The remedies provided in this Article XI, together with any other monetary remedy, obligation or
reimbursement expressly and specifically contemplated by this Agreement (including as set forth in Article VI, 8.3 and 10.3), shall be the sole monetary remedies available in respect of this Agreement. 

11.9 Survival of Indemnities. The rights and obligations of each of the Parties and their respective Indemnitees under this Article
XI shall survive (a) the sale or other transfer by either Party or any of its respective Subsidiaries of any assets or businesses or the assignment by it of any Liabilities; or (b) any merger, consolidation, business combination, sale
of all or substantially all of the assets, restructuring, recapitalization, reorganization or similar transaction involving either Party or any of its respective Subsidiaries. 

  
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 ARTICLE XII 

REGULATORY MATTERS 

12.1 Producer’s Regulatory Responsibilities Regarding Supplied Products. At all times during the Term, Producer shall be solely
responsible for maintaining the Production Facilities, equipment and processes used in producing the Supplied Products and in performing Producer’s other obligations under this Agreement. 

12.2 Purchaser’s Regulatory Responsibilities Regarding Purchaser Products. Except as specifically stated otherwise in this
Agreement, Purchaser shall be responsible for all regulatory matters relating to or involving any Purchaser Product, including all decisions and actions with respect thereto. Producer shall reasonably cooperate with Purchaser in connection with
Purchaser’s responsibilities under this Section 12.2. Purchaser shall, with respect to any such regulatory matters: (a) act as liaison with the FDA or other Medical Regulatory Authority or Certification Body; (b) collect
appropriate data and information from Producer and then prepare and make all Purchaser-required submissions to the appropriate Medical Regulatory Authorities or Certification Bodies (e.g., the annual reports, notifications, renewals, etc.);
(c) monitor all studies pertinent to regulatory matters; and (d) obtain all required regulatory approvals. In particular, Purchaser shall: 

(a) Prepare and obtain approval of and hold all 510(k) notifications and other new product submissions as required by the FDA and the Act, or
any other relevant Medical Regulatory Authority or Certification Body, relating to the Purchaser Products; 
 (b) List the Purchaser
Products pursuant to Section 510 of the Act or other similar requirements of Law; 
 (c) Comply with 21 CFR §820.30, if
applicable, and other similar design control provisions of Regulations issued by the FDA or other relevant Medical Regulatory Authority or Certification Body; 

(d) Provide Producer with copy for labeling to physically accompany Purchaser Products (not including promotional labeling) to the extent
required to comply with the Act or other relevant Medical Regulatory Authority or Certification Body; 
 (e) Report to the FDA or other
relevant Medical Regulatory Authority or Certification Body; 
 (f) Administer all requisite field corrective actions, product holds,
recalls, withdrawals or quarantines relating solely to Purchaser Products; and 
 (g) Prepare, obtain approval and hold all Product
Technical Files, Notifications and other new product dossiers required by Law, including any applicable Medical Regulatory Authority or Certification Body relating to the Purchaser Products. 

12.3 Reference Filings. Upon the reasonable request of Purchaser, Producer will grant Purchaser the right to cross-reference filings
held in Producer’s name with applicable Medical Regulatory Authorities to the extent reasonably necessary in connection with Purchaser’s obtaining and maintaining marketing approval for any Supplied Product and to the extent such grant
will not violate applicable confidentiality obligations. 

  
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 12.4 No Debarred Service Provider. Producer has not and will not use the services of
employees or Subcontractors who have been debarred by the FDA or any other Medical Regulatory Authority or Certification Body and, at Purchaser’s reasonable written request, will not use the services of any particular employees or
Subcontractors identified by Purchaser in connection with the manufacture of Supplied Products pursuant to this Agreement. If Producer becomes aware that an employee, Subcontractor or employee of Subcontractor has been debarred and said person
performed, in any capacity, services in connection with a Supplied Product, Producer shall promptly notify Purchaser of such person’s debarment. 

12.5 Commercial Stability Costs. During any calendar year or portion thereof in which Producer manufactures at least one Batch or lot,
as applicable, of any Supplied Product, unless otherwise directed by Purchaser in writing, Producer shall perform commercial stability studies in accordance with the then current requirements of the International Committee on Harmonization with
respect to such Supplied Product, at Purchaser’s cost. In the event that additional stability studies beyond those required pursuant to the immediately preceding sentence shall be required, the Parties shall negotiate per filing, in good faith,
upon the protocol, and associated charges, based upon the then current requirements of the International Committee on Harmonization. If Purchaser requests Producer to perform additional commercial stability studies for any Batches or lots, as
applicable, of Supplied Product which exceed those required by applicable Law for the protocol, Producer shall perform such additional commercial stability studies and Producer shall be entitled to charge Purchaser for all reasonable incremental
costs associated with such additional commercial stability studies. 
 12.6 Drug Master Files. Producer shall, if requested by
Purchaser and at Purchaser’s cost with respect to any Supplied Product, prepare, file and maintain, as applicable, with the FDA, and such other Governmental Authorities as the Parties may agree in writing, a drug master file (a
“DMF”) with respect to the manufacturing process for the Supplied Product. Producer shall and does hereby grant Purchaser and its Affiliates and licensees, as applicable, the right to reference each such DMF in or for any filings,
reports, registrations or other communications that Purchaser or its Affiliates or licensees, as applicable may make or have made with any Governmental Authority in order to obtain or maintain regulatory approvals of the Supplied Product in any
applicable territory. 
 ARTICLE XIII 

INSURANCE 
 13.1
Insurance. Purchaser shall maintain (or have maintained by any Party that is an Affiliate of Purchaser for Purchaser’s benefit) insurance or Purchaser may, at its own discretion, self-insure for general liability including coverage for
bodily injury, property damage, and products-completed operations liability. Purchaser shall provide Producer with evidence of applicable, procured insurance coverages in the form of a certificate of insurance. Purchaser shall endeavor to provide
written notice to Producer at least 30 days prior to cancellation or nonrenewal of applicable insurance. Each Party shall be responsible for insuring its and its Affiliates’ own employees and representatives for injuries received in locations
that are owned or controlled by any other Party. 

  
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 ARTICLE XIV 

PRIORITY AND FORCE MAJEURE 

14.1 Priority. In the event that Producer or any Affiliate thereof is producing a Supplied Product both for Purchaser and for itself or
any other Person (including any Affiliate of Producer) and, due to Force Majeure, Producer’s capacity to produce such Supplied Product is diminished such that Producer can no longer produce such Supplied Product for all parties for whom
Producer was previously producing such Supplied Product to the full extent that such Producer was previously producing such Supplied Product, Producer and Purchaser shall, consistent with applicable regulatory requirements, cooperate to remedy the
situation by (a) sharing remaining capacity ratably based on the actual pro rata allocation in the one-year period prior to such Force Majeure event, (b) outsourcing such Supplied Product to a mutually agreed Third Party to the extent that
doing so does not require Producer other than in its sole discretion to share any Sensitive Producer Technology or (c) taking such other action as shall be mutually agreed by Producer and Purchaser. 

14.2 Force Majeure. Section 9.07 of the Separation Agreement shall be incorporated by reference herein as though included
in this Agreement (but for this purpose, only to the extent applicable to this Agreement, and not to the Separation Agreement or any other Ancillary Agreement). In the event that a delay in performance caused by Force Majeure continues for a period
of at least thirty (30) calendar days, the Party affected by the other Party’s delay may during such non-performance period elect to: (a) suspend performance and extend the time for performance for the duration of the Force Majeure
event, or (b) cancel or terminate all or any part of the unperformed part of the applicable Joinder Agreement or any Firm Orders with respect to the affected Supplied Products. 

ARTICLE XV 

CONFIDENTIALITY 
 15.1
Confidentiality/Protective Arrangements. Sections 6.08 and 6.09 of the Separation Agreement shall be incorporated by reference herein as though included in this Agreement (but for this purpose, only to the extent applicable to this
Agreement, and not to the Separation Agreement or any other Ancillary Agreement). 
 ARTICLE XVI 

DISPUTE RESOLUTION 

16.1 General. The provisions of Article VII of the Separation Agreement shall govern all disputed matters under this Agreement;
provided that the initial negotiation described in Section 7.01(a) of the Separation Agreement shall be by and among the members of the Steering Committee. In the event of any conflict between the provisions of Article VII of the
Separation Agreement and this Article XVI, the provisions of this Agreement shall control. 
 16.2 Specific Performance.
Section 9.17 of the Separation Agreement shall be incorporated by reference herein as though included in this Agreement (but for this purpose, only to the extent applicable to this Agreement, and not to the Separation Agreement or any
other Ancillary Agreement). 

  
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 ARTICLE XVII 

ASSIGNMENT 
 17.1
General. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns; provided, however, that, except as provided below, neither party may Transfer its
interest or any of its rights or obligations in the Agreement, including Transfers by operation of law such as by way of merger or consolidation, without the prior written consent of the other party, which consent may not be unreasonably withheld.
Notwithstanding any assignment or other Transfer, references to the Parties and their Affiliates or Subsidiaries in this Agreement shall continue to apply to the original Parties (or any later successors, transferees or assignees) and their
Affiliates or Subsidiaries. 
 17.2 Transfers by Producer. Notwithstanding the foregoing provisions of this Article XVII,
Producer may Transfer substantially all of its rights and obligations hereunder (or any portion thereof with respect to any applicable Supplied Product) to any Person to which Producer shall Transfer substantially all of its business and assets
related to the manufacture or provision of such Supplied Product hereunder; provided that (a) any such acquiring Person shall assume in writing the portion of Producer’s obligations hereunder relating to the Supplied Products so
Transferred, and shall deliver a signed copy of such assumption instrument to Purchaser, (b) any such acquiring Person is capable of adhering to these obligations consistent with all applicable regulatory requirements, including cGMP/Quality
System Regulations and governmental filings/clearance, and (c) Producer shall give Purchaser at least 60 days’ Notice prior to such Transfer. 

17.3 Transfers by Purchaser. Notwithstanding the foregoing provisions of this Article XVII, Purchaser may Transfer its rights
and obligations hereunder to any Person to which Purchaser shall Transfer substantially all of its business and assets; provided that any such acquiring Person shall assume in writing the Purchaser’s obligations hereunder and shall
deliver a signed copy of such assumption instrument to Producer. Purchaser shall remain liable for all of its obligations under this Agreement notwithstanding any such Transfer. In the event of any Transfer to a Prohibited Person, the Purchaser
(including the Prohibited Person and its Affiliates as Transferee) shall (a) be permitted to undertake quality audits pursuant to this Agreement (or any accompanying Quality Agreement) only if performed by a mutually agreed Third Party and with
appropriate restrictions regarding confidentiality and (b) not be permitted (either itself or through any Third Party) to audit costs or pricing or otherwise review the cost or other financial information of Producer or any of its Affiliates.
In the event of any direct or indirect Change of Control of Purchaser to a Prohibited Person or any Affiliate thereof, regardless of whether there is a Transfer of this Agreement or any rights or obligations hereunder, the Parties shall use
commercially reasonable efforts to revise the pricing terms (and related terms) set forth in this Agreement such that the same or substantially similar pricing as otherwise would have occurred hereunder is retained without using the
“cost-plus” formula in light of the proprietary nature of cost information of Producer in such scenario; provided that, until such Agreement is reached, Producer shall have the right to either (i) discontinue production with
respect to such Supplied Products or (ii) if approved by Purchaser in writing, continue production of such Supplied Products at the price determined and provided to Purchaser by Producer in good faith. 

  
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 ARTICLE XVIII 

MISCELLANEOUS PROVISIONS 

18.1 Notices. All Notices pursuant to this Agreement shall be in writing and shall be given or made (and shall be deemed to have been
duly given or made upon receipt) by delivery in person, by overnight courier service, by facsimile with receipt confirmed (followed by delivery of an original via overnight courier service) or by registered or certified mail (postage prepaid, return
receipt requested) to the respective Parties at the following addresses (or at such other address for a Party as shall be specified in a Notice): 

If to Baxter or any Affiliate thereof: 

Baxter International Inc. 
 One
Baxter Parkway 
 Deerfield, Illinois 60015 

Attn: General Counsel 
 E-mail:
general_counsel@baxter.com 
 If to Baxalta or any Affiliate thereof: 

Baxalta Incorporated 
 One Baxter
Parkway 
 Deerfield, Illinois 60015 

Attn: General Counsel 
 E-mail:
general_counsel@baxalta.com 
 with copies in each case to each Purchaser or Producer to whom the Notice is applicable, at the address (if
any) for such Purchaser or Producer set forth in the applicable Joinder Agreement. 
 Any Party may, by Notice to Baxter (if notice is from
a Party not Affiliated with Baxter) or Baxalta (if notice is from a Party not Affiliated with Baxalta), change the address to which such Notices are to be given. 

18.2 Miscellaneous. Sections 9.01, 9.02, 9.04, 9.06, 9.08, 9.10, 9.13, 9.14,
9.16 and 9.18 of the Separation Agreement shall be incorporated by reference herein as though included in this Agreement (but for this purpose, only to the extent applicable to this Agreement, and not to the Separation Agreement or any
other Ancillary Agreement). 
 18.3 Course of Dealing. For the avoidance of doubt, no action shall be deemed to create a binding
future obligation or course of dealing pursuant to this Agreement. For example, an action that is deemed commercially reasonable in accordance with the terms of this Agreement in one instance does not mean that the same or similar actions will be
deemed commercially reasonable in later or other occurrences, it being understood and agreed that each such instance will be evaluated independently based on the facts and circumstances as they may exist from time to time. 

  
 -47- 

 18.4 Survival. The terms and conditions of this Agreement and each Joinder Agreement (as
well as any other written agreement entered into by any of the Parties in order to effect any of the foregoing), and the rights and obligations of the Parties under this Agreement, shall survive any termination of this Agreement or any Joinder
Agreement, except for those performance-related obligations that necessarily expire upon the termination of this Agreement or Joinder Agreement (or upon termination with respect to any particular Supplied Product). 

18.5 Joinder Agreements. Each of Baxter and Baxalta shall cause their respective Subsidiaries who are to provide or receive services
pursuant to this Agreement to become a Party to this Agreement by executing a Joinder Agreement (each, a “Joinder Agreement”) substantially in the form attached hereto as Exhibit A. Each such Joinder Agreement shall be deemed
a part of this Agreement as of the date of such Joinder Agreement. 
 [signature page follows] 

  
 -48- 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be signed by their authorized
representatives as of the date of this Agreement. 
  

			
	BAXALTA INCORPORATED
		
	By:		  

	Name:		
	Title:		
	
	BAXTER INTERNATIONAL INC.
		
	By:		  

	Name:		
	Title:		

 Signature Page 

to the 
 Manufacturing and
Supply Agreement

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