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Exhibit 10.5  

 
 

EDWARDS LIFESCIENCES CORPORATION
  2001 EMPLOYEE STOCK PURCHASE PLAN
  FOR INTERNATIONAL EMPLOYEES    
    
    (As Amended and Restated on February 20, 2003)    

Edwards Lifesciences Corporation

2001 Employee Stock Purchase Plan

For International Employees  

(As Amended and Restated on February 20, 2003) 

ARTICLE I—PURPOSE  

        1.01.    Purpose    

        The
Edwards Lifesciences Corporation 2001 Employee Stock Purchase Plan for International Employees is intended to provide a method whereby certain employees of participating subsidiary
companies of Edwards Lifesciences Corporation (the "Company") authorized by the Committee (or an officer designated by the Committee pursuant to Section 9.02) to extend the benefits of the Plan
to their Eligible Employees will have an opportunity to acquire a proprietary interest in the Company through the purchase of shares of the Company's common stock. 

        The
Plan was initially adopted by the Board on February 8, 2001, and subsequently amended and restated by the Board on February 20, 2003. 

ARTICLE II—DEFINITIONS  

        2.01.    Base Pay    

        "Base
Pay" shall mean regular straight-time earnings plus commissions (where legally permissible and administratively feasible) and payments in lieu of regular earnings and
any legally mandated bonus or other pay. In the case of a part-time hourly employee, such employee's base pay during an Offering shall be determined by multiplying such employee's hourly
rate of pay by the number of regularly scheduled hours of work for such employee during such Offering. 

        2.02.    Change in Control    

        "Change
in Control" of the Company shall mean the occurrence of any one of the following events: 

	(a)
	Any
"Person", as such term is used in Sections 13(d) and 14(d) of the Exchange Act (other than the Company, any corporation owned, directly or indirectly, by the stockholders of the
Company in substantially the same proportions as their ownership of stock of the Company, and any trustee or other fiduciary holding securities under an employee benefit plan of the Company or such
proportionately owned corporation), is or becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company
representing thirty percent (30%) or more of the combined voting power of the Company's then outstanding securities; or

	(b)
	During
any period of not more than twenty-four (24) months, individuals who at the beginning of such period constitute the Board of Directors of the Company, and
any new director (other than a director designated by a Person who has entered into an agreement with the Company to effect a transaction described in Sections 2.02(a), 2.02(c), or 2.02(d) of this
Section 2.02) whose election by the Board or nomination for election by the Company's stockholders was approved by a vote of at least two-thirds (2/3) of the
directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute at
least a majority thereof; or

	(c)
	The
consummation of a merger or consolidation of the Company with any other entity, other than: (i) a merger or consolidation which would result in the voting securities of the
Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than sixty percent
(60%) of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or (ii) a merger or consolidation
effected to implement a recapitalization of the Company (or similar 

 

transaction)
in which no Person acquires more than thirty percent (30%) of the combined voting power of the Company's then outstanding securities; or 

	(d)
	The
Company's stockholders approve a plan of complete liquidation or dissolution of the Company, or an agreement for the sale or disposition by the Company of all or substantially all
of the Company's assets (or any transaction having a similar effect). 

        2.03.    Code    

        "Code"
shall mean the United States Internal Revenue Code of 1986, as amended. 

        2.04.    Committee    

        "Committee"
shall mean the individuals appointed by the Company to administer the Plan as described in Article IX. 

        2.05.    Company    

        "Company"
shall mean Edwards Lifesciences Corporation. 

        2.06.    Corporate Affiliate    

        "Corporate
Affiliate" shall mean any parent or subsidiary corporation or limited liability company of the Company (as determined in accordance with Code section 424) whether now
existing or subsequently established. 

        2.07.    Conversion Rate    

        "Conversion
Rate" shall mean with respect to any non-United States currency, the rate established by the Company's Corporate Treasury Department for purposes of converting
such currency to United States dollars. 

        2.08.    Eligible Employee    

        "Eligible
Employee" means, unless local laws prohibit such employee's participation in the Plan, any regular employee of a Participating Company who is scheduled to work 20 or more hours
per week. Eligible Employee shall also mean any other employee of a Participating Company to the extent that local law requires the Plan to be extended to such employee. The Committee shall designate
the subsidiaries that shall be eligible to participate in the Plan. 

        2.09.    Enrollment Period    

        "Enrollment
Period" shall mean with respect to any Offering, the period designated by the Committee prior to such Offering during which Eligible Employees may authorize payroll
deductions through a Subscription. Unless the Committee determines otherwise, the Enrollment Period with respect to any Offering shall end on the twenty-fifth day of the month immediately preceding
the Offering
Commencement Date and any Subscription received after such date shall be deemed to be an enrollment in the next following Offering. 

        2.10.    Exchange Act    

        "Exchange
Act" shall mean the United States Securities Exchange Act of 1934, as amended from time to time, or any successor thereto. 

        2.11.    Fair Market Value    

        The
"Fair Market Value" of a share of Stock on a given day shall be determined as follows: (i) if the Stock is listed on any established stock exchange or a national market
system, (a) for any date of determination except the Purchase Date, Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sale is reported) as quoted on
such exchange or system for the last 

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market
trading day prior to the time of determination, as reported in The Wall Street Journal or such other source as the Committee deems reliable;
(b) for the Purchase Date, Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sale is reported) as quoted on such exchange or system on the Purchase
Date, as reported in The Wall Street Journal or such other source as the Committee deems reliable, or (ii) in the absence of an established
market for the Stock, the Fair Market Value thereof shall be determined in good faith by the Committee. 

        2.12.    Offering    

        "Offering"
shall mean the quarterly offering of the Company's Stock, the duration of which shall not exceed twenty seven (27) months. 

        2.13.    Offering Commencement Date    

        "Offering
Commencement Date" shall mean June 1, 2001 and, unless determined otherwise by the Committee, the first day of each calendar quarter thereafter. 

        2.14.    Offering End Date    

        "Offering
End Date" shall mean, with respect to each Offering, the day preceding the second annual anniversary of the Offering Commencement Date for such Offering, unless determined
otherwise by the Committee prior to the Offering Commencement Date or such date as determined pursuant to Section 6.04. 

        2.15.    Participant    

        "Participant"
shall mean an Eligible Employee who has elected to participate in an Offering by entering a Subscription during the Enrollment Period for such Offering. 

        2.16.    Participating Company    

        "Participating
Company" shall mean each Corporate Affiliate as may be authorized from time to time by the Committee to extend the benefits of the Plan to their Eligible Employees. 

        2.17.    Plan    

        "Plan"
shall mean the Edwards Lifesciences Corporation 2001 Employee Stock Purchase Plan for International Employees, as amended from time to time. 

        2.18.    Purchase Date    

        "Purchase
Date" shall mean with respect to any Offering, the last day of each calendar quarter (or such other dates determined by the Committee prior to the Offering Commencement Date or
pursuant to Section 6.04) during the period beginning with the Offering Commencement Date for such Offering and ending with the Offering End Date; provided, however, if any such day is not a
business day, the Purchase Date shall be the next preceding business date on which shares of Stock are traded. 

        2.19.    Stock    

        "Stock"
shall mean the common stock, par value $1.00, of the Company. 

        2.20.    Subscription    

        "Subscription"
shall mean an Eligible Employee's authorization for payroll deductions made in the form and manner specified by the Committee (which may include enrollment by submitting
forms, by voice response, internet access or other electronic means). Unless withdrawn earlier in accordance with Section 6.02, each Subscription shall be in effect for the duration of the
Offering to which it applies. No more than one Subscription may be in effect for an Eligible Employee during any calendar quarter. 

3

 

ARTICLE III—ELIGIBILITY AND PARTICIPATION  

        3.01.    Initial Eligibility    

        Any
individual who is an Eligible Employee on an Offering Commencement Date shall be eligible to participate in the Offering commencing on such date, subject to the terms and conditions
of the Plan. 

        3.02.    Leave of Absence    

        For
purposes of participation in the Plan, a Participant on a leave of absence shall be deemed to be an employee for a period of up to 90 days or, if longer, during the period the
Participant's right to reemployment is guaranteed by statute or contract. If the leave of absence is paid, deductions authorized under any Subscription in effect at the time the leave began will
continue. If the leave of absence is unpaid, no deductions or contributions will be permitted during the leave. If such a Participant returns to active status within 90 days or the guaranteed
reemployment period, as applicable, payroll deductions under the Subscription in effect at the time the leave began will automatically begin again upon the Participant's return to active status,
unless the Subscription has expired. If the Participant does not return to active status within 90 days or the guaranteed reemployment period, as applicable, the Participant shall be treated as
having terminated employment for all purposes of the Plan. If such terminated Participant later returns to active employment as an Eligible Employee or if a Participant returns to active employment as
an Eligible Employee after the Subscription has expired, such individual will be treated as a new employee and will be eligible to participate in Offerings
commencing after his or her reemployment date by filing a Subscription during the applicable Enrollment Period for such Offering. 

        3.03.    Restrictions on Participation    

        Notwithstanding
any provisions of the Plan to the contrary, no Eligible Employee shall be granted a right to purchase Stock: (a) if, immediately after the grant, such employee
would own Stock, and/or hold outstanding options to purchase Stock, possessing 5% or more of the total combined voting power or value of all classes of the Company's stock (for purposes of this
paragraph, the rules of Section 424(d) of the Code shall apply in determining stock ownership of any employee); or (b) which permits the employee's rights to purchase Stock under all
employee stock purchase plans of the Company to accrue at a rate which exceeds $25,000 in Fair Market Value of the Stock (determined at the time such right to purchase Stock is granted) for each
calendar year in which such right is outstanding. 

        Further,
with respect to any Offering, in no event shall an employee be granted a right to purchase in excess of 10,000 shares of Stock, subject to adjustment pursuant to
Section 10.03. 

        3.04.    Commencement of Participation    

        An
Eligible Employee may become a Participant in any Offering by entering a Subscription during the Enrollment Period for such Offering. Payroll deductions for such Offering shall
commence on the applicable Offering Commencement Date and shall end on the applicable Offering End Date unless withdrawn by the Participant or sooner terminated in accordance with Article VII.
Only one Subscription may be in effect with respect to any Participant at any one time. 

        3.05.    Participation After Rehire    

        An
Eligible Employee's Subscription will automatically terminate on the date he or she is no longer an employee of any Participating Company. If the Eligible Employee terminates
employment with a Subscription in effect with respect to an Offering and is rehired prior to the Offering End Date for that Offering, the Subscription will not be reinstated and the Eligible Employee
will not be allowed to again make payroll deductions under such Offering. The Eligible Employee may elect to participate 

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in
Offerings commencing after his or her reemployment date by entering a Subscription during the applicable Enrollment Period for such Offering. Notwithstanding the foregoing, an Eligible Employee's
transfer from one Participating Company to another shall not terminate such Eligible Employee's Subscription. 

        3.06.    United States Employees/United States Transfers    

        Eligible
Employees who transfer to a Participating Company from a subsidiary of the Company participating in the Company's stock purchase plan for United States employees may not
participate in Offerings which had an Offering Commencement Date prior to such transfer. Such Eligible Employee may participate in Offerings commencing after such transfer by entering a Subscription
during the applicable Enrollment Period for such Offering. 

        A
Participant who transfers from a Participating Company to either the Company, a Corporate Affiliate that is not a Participating Company, or a location that, by local law, prohibits
participation in any of the Company's stock purchase plans will be treated as a terminated Participant under this Plan. 

ARTICLE IV—OFFERINGS  

        4.01.    Quarterly Offerings    

        The
Plan commenced with an Offering beginning on June 1, 2001 and, unless determined otherwise by the Committee, will continue in operation with a new Offering commencing on the
first day of each calendar quarter thereafter. Eligible Employees may not have in effect more than one Subscription at a time. 

        Participants
may subscribe to any Offering by entering a Subscription during the Enrollment Period for such Offering in such manner as the Committee may prescribe (which may include
enrollment by submitting forms, by voice response, internet access or other electronic means). 

        A
Subscription that is in effect on an Offering End Date will automatically be deemed to be a Subscription for the Offering that commences immediately following such Offering End Date,
provided that the Participant is still an Eligible Employee and has not withdrawn the Subscription. Under the foregoing automatic enrollment provisions, payroll deductions will continue at the level
in effect immediately prior to the new Offering Commencement Date, unless changed in advance by the Participant in accordance with Section 5.03. 

        4.02.    Purchase Price    

        The
purchase price per share of Stock under each Offering shall be the lower of: 

	(a)
	85%
of the Fair Market Value of the Stock on the Offering Commencement Date; or

	(b)
	85%
of the Fair Market Value of the Stock on the Purchase Date. 

        Such
purchase price may only be paid with accumulated payroll deductions in accordance with Article V. 

        4.03.    Automatic Transfer to New Offering    

        Should
the Fair Market Value per share of Stock on any Purchase Date within a particular Offering be less than the Fair Market Value per share of Stock on the Offering Commencement Date
of that Offering, then the individuals participating in such Offering shall, immediately after the purchase of shares of Stock on their behalf on such Purchase Date, be transferred from that Offering
and automatically enrolled in the next Offering commencing immediately after such Purchase Date, unless the Participant elects otherwise. Under the foregoing automatic enrollment provisions, payroll
deductions will continue at the level in effect immediately prior to the new Offering Commencement Date, unless changed in advance by the Participant in accordance with Section 5.03. 

5

 

ARTICLE V—PAYROLL DEDUCTIONS  

        5.01.    Amount of Deduction    

        An
Eligible Employee's Subscription shall authorize payroll deductions at a rate, in whole percentages, of no less than 1% and no more than 12% of Base Pay on each payday that the
Subscription is in effect. 

        5.02.    Participant's Account    

        All
payroll deductions made with respect to a Participant shall be credited to his or her recordkeeping account under the Plan. A Participant may not make any separate cash payment into
such account. No interest will accrue or be paid on any amount withheld from a Participant's pay under the Plan or credited to the Participant's account. Except as otherwise provided in this
Section 5.02, all amounts in a Participant's account will be used to purchase whole shares of Stock and no cash refunds shall be made from such account. Any amounts that are insufficient to
purchase whole shares shall be credited to the Participant's account, and added to any fractional amounts resulting on subsequent Purchase Dates. Upon liquidation or other closing of a Participant's
account, any fractional amounts shall be paid in cash to the Participant based on the then current Fair Market Value of the Stock. In addition, any amounts that are withheld but unable to be applied
to the purchase of Stock because of the limitations of Section 3.03 shall be returned to the Participant without interest and will not be used to purchase shares with respect to any other
Offering under the Plan. 

        5.03.    Changes in Payroll Deductions    

        During
an Offering, a Participant may change his or her level of payroll deduction with respect to such Offering within the limits described in Section 5.01 in accordance with
procedures established by the Committee (including, without limitation, rules relating to the frequency of such changes); provided, however, if the Participant reduces his or her payroll deductions to
zero, it shall be deemed to be a withdrawal of the Subscription and the Participant may not thereafter participate in such Offering but must wait until the next Offering to resubscribe to the Plan.
Any such discontinuance or change in level shall be effective as soon as administratively practicable. 

ARTICLE VI—EXERCISE OF RIGHTS TO PURCHASE STOCK  

        6.01.    Automatic Exercise    

        A
Participant's right to purchase Stock with respect to any Offering will be automatically exercised on each Purchase Date for the Offering. The right to purchase Stock will be exercised
by using the accumulated payroll deductions in the Participant's account as of each such Purchase Date to purchase the number of whole shares of Stock that may be purchased at the purchase price on
such date, determined in accordance with Section 4.02. If the Participant is paid in a non-United States currency, the Participant's accumulated payroll deductions shall be
converted into United States dollars using the Conversion Rate in effect on the Purchase Date. 

        6.02.    Withdrawal From Offering    

        A
Participant may not withdraw the accumulated payroll deductions in his or her account during an Offering. If the Participant withdraws his or her Subscription with respect to any
Offering, the accumulated payroll deductions in the Participant's account at the time the Subscription is withdrawn will be used to purchase shares of Stock at the next Purchase Date for the Offering
to which the Subscription related, in accordance with Section 6.01. Notwithstanding the foregoing, in the event a Participant withdraws his or her Subscription with respect to an Offering and
terminates his or her employment prior to the next Purchase Date for which the Participant's accumulated payroll deductions would be used to purchase shares of Stock, then Participant's accumulated
payroll deductions shall be refunded to Participant in accordance with Section 7.02. 

6

 

        6.03.    Delivery of Stock    

        Stock
purchases under the Plan will be held in an account in the Participant's name in uncertificated form unless certification is requested by the Participant. Furthermore, Stock to be
delivered to a Participant under the Plan will be registered in the name of the Participant. 

        6.04.    Change in Control    

        If
pursuant to a Change in Control rights to purchase Stock are not assumed or otherwise continued in full force and effect, then each right to purchase Stock under each Offering in
effect at the time of the Change in Control shall automatically be exercised, immediately prior to the effective date of any Change in Control, by applying the payroll deductions of each Participant
for the Offering in which such Change in Control occurs to the purchase of whole shares of Stock at a purchase price per share equal to eighty-five percent (85%) of the lower of
(i) the Fair Market Value per share of Stock on the start date of the applicable Offering or (ii) the Fair Market Value per share of Stock immediately prior to the effective date of such
Change in Control. 

ARTICLE VII—WITHDRAWAL  

        7.01.    Effect on Subsequent Participation    

        A
Participant's election to withdraw from any Offering will not have any effect upon the Participant's eligibility to participate in any succeeding Offering or in any similar plan which
may hereafter be adopted by the Company. 

        7.02.    Termination of Employment    

        Upon
termination of the Participant's employment for any reason that results in the Participant not qualifying as an Eligible Employee, any Subscription then in effect will be deemed to
have been withdrawn and any payroll deductions credited to the Participant's account will be promptly refunded to such Participant in the currency in which such Participant is paid by his or her
Participating Company. 

ARTICLE VIII—STOCK  

        8.01.    Maximum Shares    

        The
maximum number of shares which may be issued under the Plan, subject to adjustment upon changes in capitalization of the Company as provided in Section 10.03, shall be 650,000
shares. If the total number of shares for which rights to purchase Stock are exercised on any Purchase Date exceeds the maximum number of shares available for issuance, the Company shall make a pro
rata allocation of the shares available for delivery and distribution in as nearly a uniform manner as shall be practicable and as it shall determine to be equitable, and the balance of payroll
deductions credited to the account of each Participant under the Plan shall be returned to him as promptly as possible. 

        8.02.    Participant's Interest in Rights to Purchase Stock    

        The
Participant will have no interest in Stock covered by a right to purchase Stock under the Plan until such right has been exercised. 

ARTICLE IX—ADMINISTRATION  

        9.01.    Appointment of Committee    

        The
Company's Board of Directors shall appoint a Committee to administer the Plan. No member of the Committee who is not an Eligible Employee shall be eligible to purchase Stock under
the Plan. 

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        9.02.    Authority of Committee    

        Subject
to the express provisions of the Plan, the Committee shall have plenary authority in its discretion to interpret and construe any and all provisions of the Plan, to adopt rules
and regulations for administering the Plan, and to make all other determinations deemed necessary or advisable for administering the Plan. The
Committee's determination on the foregoing matters shall be conclusive. The Committee shall also have the authority to determine if and when the employees of Corporate Affiliates organized or acquired
after the Effective Date shall be eligible for participation in the Plan. The Committee may delegate to an officer its authority under this Section 9.02 to determine if and when the employees
of a Corporate Affiliate shall be eligible or ineligible for participation in the Plan. 

        9.03.    Rules Governing the Administration of the Committee    

        The
Company's Board of Directors may from time to time appoint members of the Committee in substitution for or in addition to members previously appointed and may fill vacancies, however
caused, in the Committee. The Committee may select one of its members as its Chairman and shall hold its meetings at such times and places as it shall deem advisable and may hold telephonic meetings.
A majority of its members shall constitute a quorum. All determinations of the Committee shall be made by a majority of its members. The Committee may correct any defect or omission or reconcile any
inconsistency in the Plan, in the manner and to the extent it shall deem desirable. Any decision or determination reduced to writing and signed by a majority of the members of the Committee shall be
as fully effective as if it had been made by a majority vote at a meeting duly called and held. The Committee may appoint a secretary and shall make such rules and regulations for the conduct of its
business as it shall deem advisable. 

        9.04.    Statements    

        Each
Participant shall receive a statement of his account showing the number of shares of Stock held and the amount of cash credited to such account. Such statements will be provided as
soon as administratively feasible following the end of each calendar quarter. 

ARTICLE X—MISCELLANEOUS  

        10.01.    Transferability    

        Neither
payroll deductions credited to a Participant's account nor any rights with regard to the exercise of a right to purchase Stock or to receive Stock under the Plan may be assigned,
transferred, pledged, or otherwise disposed of in any way by the Participant other than by will or the laws of descent and
distribution. Any such attempted assignment, transfer, pledge or other disposition shall be without effect. During a Participant's lifetime, rights to purchase Stock that are held by such Participant
shall be exercisable only by that Participant. 

        10.02.    Use of Funds    

        All
payroll deductions received or held by the Participating Company under this Plan may be used by the Participating Company for any corporate purpose and the Participating Company
shall not be obligated to segregate such payroll deductions; provided, however, such amounts shall be held in trust or otherwise segregated from the Participating Company's general assets to the
extent required under local law. 

        10.03.    Adjustment Upon Changes in Capitalization    

        In
the event of a stock split, stock dividend, recapitalization, reclassification or combination of shares, merger, spin-off, or similar event, the Committee shall adjust
equitably (a) the number and class of shares or other securities that are reserved for sale under the Plan, (b) the number and class of shares or other securities that are subject to
outstanding rights to purchase Stock, (c) the maximum 

8

 

number
of shares of Stock that can be purchased by a Participant with respect to any Offering and (d) the appropriate market value and other price determinations applicable to rights to
purchase Stock. The Committee shall make all determinations under this Section 10.03, and all such determinations shall be conclusive and binding. 

        10.04.    Amendment and Termination    

        The
Company's Board of Directors shall have complete power and authority to terminate or amend the Plan at any time and for any reason. Upon termination of the Plan, the date of
termination shall be considered a Purchase Date, and any cash remaining in Participant accounts will be applied to the purchase of Stock, unless determined otherwise by the Company's Board of
Directors. Upon termination of the Plan, the Company's Board of Directors shall have authority to establish administrative procedures regarding the exercise of outstanding rights to purchase Stock or
to determine that such rights shall not be exercised. 

        10.05.    Effective Date    

        This
Plan became effective as of June 1, 2001. 

        10.06.    No Employment Rights    

        The
Plan does not, directly or indirectly, create in any employee or class of employees any right with respect to continuation of employment with the Company or any Corporate Affiliate,
and it shall not be deemed to interfere in any way with the right of the Company or any Corporate Affiliate employing such person to terminate, or otherwise modify, an employee's employment at any
time. 

        10.07.    Effect of Plan    

        The
provisions of the Plan shall, in accordance with its terms, be binding upon, and inure to the benefit of, all successors of each employee participating in the Plan, including,
without limitation, such employee's estate and the executors, administrators or trustees thereof, heirs and legatees, and any receiver, trustee in bankruptcy or representative of creditors of such
employee. 

        10.08.    Governing Law    

        The
law of the State of California will govern all matters relating to this Plan except to the extent it is superseded by the laws of the United States. 

9

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Exhibit 10.6  

 
 

EDWARDS LIFESCIENCES CORPORATION
  EXECUTIVE OPTION PLAN    
    

(As amended and restated through May 14, 2003)  

 ARTICLE I  

 Purpose and Effective Date  

        1.1.    Purpose.    The purpose of the Plan is to enable Edwards Lifesciences Corporation (the
"Company") to attract, retain and reward key employees of the Company and its Affiliates by offering benefits to such individuals through the award of Options. 

        1.2.    Effective Date.    The "Effective Date" of the Plan shall be January 1, 2001.
The Plan shall remain in effect until terminated in accordance with Article VII. 

ARTICLE II  

 Definitions  

        When used in the Plan and initially capitalized, the following words and phrases shall have the meanings indicated: 

        2.1.   "Affiliate" means any organization that together with the Company is a member of the same group of related
organizations, as determined under Code Sections 414(b), (c), (m) and (o), and any other business, whether or not incorporated, in which the Company owns more than fifty percent (50%) of the
combined voting power of the voting securities or voting interests of such business. 

        2.2.   "Administrative Committee" means the Company's Administrative and Investment
Committee, or any successor committee appointed by the Board. 

        2.3.   "Board" means the Board of Directors of the Company. 

        2.4.   "Cause" means, as determined by the Compensation Committee: (a) the Participant's willful and continued failure
to substantially perform his duties with the Company or an Affiliate (other than any such failure resulting from Disability); (b) the Participant's willfully engaging in conduct that is
demonstrably and materially injurious to the Company or an Affiliate, monetarily or otherwise; or (c) the Participant's having been convicted of a felony. For the purposes of this definition of
"Cause," no act, or failure to act, on the Participant's part shall be deemed "willful" unless done, or omitted to be done, by the Participant not in good faith and without reasonable belief that the
action or omission was in the best interests of the Company or an Affiliate. 

        2.5.   "Change in Control" means the occurrence of any one of the following events with respect to the Company: 

        (a)   any
"Person," as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended, (the "Exchange Act") (other than the Company, any
corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company, and any trustee or other fiduciary
holding securities under an employee benefit plan of the Company or such proportionately owned corporation), is or becomes the "beneficial owner" (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company representing thirty percent (30%) or more of the combined voting power of the Company's then outstanding securities; or 

 

        (b)   during
any period of not more than twenty-four (24) months, individuals who at the beginning of such period constitute the Board, and any new director
(other than a director designated by a Person who has entered into an agreement with the Company to effect a transaction described in paragraphs (a), (c) or (d) of this
Section 2.5) whose election by the Board or nomination for election by the Company's stockholders was approved by a vote of at least two-thirds (2/3) of the directors
then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a
majority thereof; or 

        (c)   the
consummation of a merger or consolidation of the Company with any other entity, other than: (i) a merger or consolidation which would result in the voting
securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than
sixty percent (60%) of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or (ii) a merger or
consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person acquires more than thirty percent (30%) of the combined voting power of the Company's
then outstanding securities; or 

        (d)   the
Company's stockholders approve a plan of complete liquidation or dissolution of the Company, or an agreement for the sale or disposition by the Company of all or
substantially all of the Company's assets (or any transaction having a similar effect). 

        2.6.   "Code" means the Internal Revenue Code of 1986, as amended. 

        2.7.   "Compensation Committee" means the Company's Compensation and Planning Committee and or successor committee appointed by
the Board. 

        2.8.   "Disabled" or "Disability" means that the Participant is eligible for
benefits under the long-term disability plan maintained by the Company or, if no such plan is maintained, "Disability" shall be determined by the Compensation Committee. A Participant
shall not be considered Disabled unless the Compensation Committee determines that the Disability arose prior to such Participant's Termination Date. 

        2.9.   "Eligible Individual" means an individual who is employed as a corporate officer of the Company and who is a U.S.
employee or a U.S. expatriate. In addition, "Eligible Individual" means any other key employee of the Company or an Affiliate who is designated as an Eligible Individual by the Chief Executive Officer
of the Company with the concurrence of the Compensation Committee. 

        2.10.   "Employer Stock" means common stock of the Company. 

        2.11.   "Fair Market Value" means, as of any date, with respect to a Mutual Fund Share, the closing net asset value of the
applicable Mutual Fund Share, as reported in the Wall Street Journal (or other source of general publication selected by the Compensation Committee) for such date. However, if such date is not a
business day, then Fair Market Value shall be determined based on the closing net asset value of such Mutual Fund Share on the most recent preceding business day. "Fair Market Value" means, as of any
date, with respect to a share of Employer Stock, the closing sale price on the principal securities exchange on which such shares are traded on the last previous day on which a sale was reported. 

        2.12.   "Grant Date" means the date specified by the Compensation Committee as of which an Option is awarded to a Participant. 

        2.13.   "Immediate Family" means the Participant's spouse, children, stepchildren, sisters, brothers and grandchildren. 

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        2.14.   "Mutual Fund Share" means a share of an investment company registered under the Investment Company Act of 1940, as
amended. 

        2.15.   "Option" means the right to purchase from the Company designated Mutual Fund Shares or Employer Stock at a specified
price, subject to the terms and conditions specified by the Compensation Committee. 

        2.16.   "Participant" means an Eligible Individual who is granted an Option under the Plan pursuant to Article V.
However, the grant to an Eligible Employee subject to the reporting requirements of Section 16 of the Exchange Act of an Option to purchase shares of Employer Stock must be approved by the
Compensation Committee. 

        2.17.   "Plan" means the Edwards Lifesciences Corporation Executive Option Plan, as amended from time to time. 

        2.18.   "Retirement" means, unless otherwise defined in the applicable Option Agreement, any termination of a Participant's
employment after age fifty-five (55) other than due to death, Disability or Cause, provided that such Participant has at least a combined ten (10) years of service with the
Company and Baxter International Inc. A Participant's number of years of service with the Company and Baxter International Inc. shall be determined by calculating the number of complete
twelve-month (12) periods of employment from the Participant's original date of hire as an employee or contractor with the Company or Baxter International Inc. to the Participant's date
of employment termination. Employment or service with Baxter International Inc. shall be included for purposes of determining qualification for Retirement only to the extent that such
employment or service immediately, and without any break, precedes employment or service with the Company. 

        2.19.   "Shares" means either Mutual Fund Shares or shares of Employer Stock with respect to which an Option is granted. Shares
subject to purchase under the Plan will be acquired by the Company in the open market. 

        2.20.   "Termination Date" means the date the Participant both ceases to be an employee of the Company and its Affiliates and
ceases to perform material services for the Company and its Affiliates, including, but not limited to, advisory or consulting services or services as a member of the Board. 

ARTICLE III  

 Administration  

        3.1.    Authority of Compensation Committee.    The Compensation Committee shall have the
authority to construe and interpret the Plan; to establish, amend or waive rules and regulations for its administration; to select the Shares that will be subject to the Options, and to accelerate the
exercisability of any Option or the termination of any restriction under any Option. Options may be subject to such provisions as the Compensation Committee shall deem advisable, and may be amended by
the Compensation Committee from time to time. Notwithstanding the foregoing, the Compensation Committee may delegate its power and authority under the Plan to the Administrative Committee;  provided, however, the Compensation Committee may not delegate its power and authority with respect to the selection for participation in the Plan of an
officer or other person subject to Section 16 of the Exchange Act or decisions concerning the timing, pricing or amount of an Option award to such officer or other person. The Board may
exercise any power or authority granted to the Compensation Committee or the Administrative Committee hereunder. 

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        3.2.    Powers of the Compensation Committee.    The Compensation Committee may employ such
legal counsel, consultants and agents as it may deem desirable for the administration of the Plan and may rely upon any opinion received from any such counsel or consultant and any computation
received from any such consultant or agent. The Compensation Committee also may choose to delegate to one or more individuals, who may be employees of the Company (or of one or more Affiliates), the
implementation or administration of matters decided with respect to the Plan by the Compensation Committee under Section 3.1. 

        3.3.    Indemnification.    No member of the Board or the Compensation Committee (including
any employee of the Company and its Affiliates to whom the Compensation Committee delegates implementation or administrative responsibility under Section 3.2) shall be liable for any action or
determination made in good faith with respect to the Plan or any Option awarded under it. To the maximum extent permitted by applicable law, each such member shall be indemnified and held harmless by
the Company against any cost or expense (including legal fees) or liability (including any sum paid in settlement of a claim with the approval of the Company) arising out of any act or omission to act
in connection with the Plan, unless arising out of such member's own fraud or bad faith. Such indemnification shall be in addition to any rights of indemnification the members may have as employees of
the Company, as members of the Board or under the bylaws of the Company. 

ARTICLE IV  

 Property Subject to Option  

        4.1    Property Subject to Option.    The Compensation Committee, in its sole discretion,
shall designate the type of Shares with respect to which Options may be granted under the Plan. Subject to adjustment for certain changes in the Company's capitalization as described below, the number
of Shares of Employer Stock reserved for delivery to Participants under the Plan shall be ninety-five thousand (95,000) Shares. In the event of the termination (by reason of forfeiture,
expiration, cancellation, surrender, or otherwise) of any Option to purchase Shares of Employer Stock granted under the Plan, that number of Shares of Employer Stock that was subject to the Option
(or, if the entire Option is not terminated, that portion of the Option that was terminated) shall again be available for grant as an Option under the Plan. The following Shares of Employer Stock
shall not be available for reissuance under the Plan: (i) Shares of Employer Stock that are withheld from any Option in payment of the Option exercise price or to satisfy tax withholding
obligations, (ii) Shares of Employer Stock which are surrendered to fulfill tax obligations incurred under the Plan and (iii) Shares of Employer Stock which are surrendered in payment of
the of the Option exercise price upon exercise of an Option. 

        In
the event of any change in corporate capitalization of an issuer of the Shares, such as a stock split, or a corporate transaction, such as any merger, consolidation, separation,
including a spin-off, or other distribution of stock or property of the applicable issuer of the Shares, any reorganization (whether or not such reorganization comes within the definition
of such term in Code Section 368) or any partial or complete liquidation of the issuer of the Shares, such adjustment shall be made in the number and class of Shares which may be delivered
under this Section 4.1, in the number and class of and/or price of Shares subject to outstanding Options granted under the Plan, as shall be determined to be appropriate and equitable by the
Compensation Committee, in its sole discretion, to prevent dilution or enlargement of rights; provided, however, that the number of Shares subject to any Options shall always be a whole number. In a
stock-for-stock acquisition of the Company, the Compensation Committee may, in its sole discretion, substitute securities of another issuer for any Shares of Employer Stock
subject to outstanding Options. 

4

 

        4.2.    Dividends and Distributions.    In the event that a dividend or distribution is paid
with respect to a Share subject to an outstanding Option, the Compensation Committee shall reinvest such dividend or distribution in additional Shares of the same or similar type. Any property
acquired through reinvestment of dividends or distributions will be subject to a new Option granted to the Participant as soon as administratively feasible following the close of the calendar quarter
in which such dividend or distribution is received. Such new Option shall be subject to the same terms, including vesting, as the Option pursuant to which the dividend or distribution was received. 

        4.3.    Substitution of Option Property.    The Compensation Committee, in its sole
discretion, may substitute Shares with an equal Fair Market Value for any Shares subject to an outstanding Option. 

ARTICLE V  

 Option Awards  

        5.1.    Awards.    The Compensation Committee shall determine the type and number of Shares
that shall be subject to each Option granted under the Plan, and the Grant Date with respect to each such Option. 

        5.2.    Terms and Conditions of Options.    Each Option granted under the Plan shall be
subject to the following terms and conditions, and such other terms and conditions as the Compensation Committee deems appropriate. 

        (a)    Vesting of Options.    Exercise of an Option is contingent on satisfaction of the
vesting conditions, if any, established by the Compensation Committee with respect to such Option at the time of grant. Such conditions may include, but are not limited to, completion of a specified
period of service or achievement of performance goals. Unless the Compensation Committee determines otherwise, Options shall become fully vested and exercisable upon death or Disability of the
Participant or a Change in Control of the Company. Options shall also become fully vested upon the Participant's Retirement, although in such an event, Options may not be exercised prior to the date
the Options would have otherwise been exercisable had the Participant not terminated employment. 

        (b)    Expiration Date.    Unless the Compensation Committee determines otherwise, Options
awarded under the Plan shall expire and no longer be exercisable on the earliest to occur of: 

	(i)
	The
ten (10)- year anniversary of the Grant Date;

	(ii)
	If
the Participant's Termination Date occurs for any reason other than death, Disability, Retirement or Cause, the date which is ninety (90) days after such
Termination Date;

	(iii)
	If
the Participant's Termination Date occurs for reasons of Cause, such Termination Date;

	(iv)
	If
the Participant's Termination Date occurs by reason of Retirement, the date which is five years after such Termination Date (or, if later, the date which is sixty
(60) days after the date the Option becomes exercisable under paragraph (a) next above); or

	(v)
	If
the Participant's Termination Date occurs by reason of death or Disability, the date that is one year after such Termination Date. 

Unless
the Compensation Committee determines otherwise, any portion of an Option which is not exercisable on the Participant's Termination Date for any reason shall expire on such Termination Date and
may not thereafter be exercised. 

5

 

        (c)    Election to Forego Other Compensation.    As a condition of receiving an Option, the
Compensation Committee may require that the Participant forego future or deferred compensation. In such an event, unless the Compensation Committee determines otherwise, in addition to such other
terms and conditions as the Compensation Committee shall impose, the following rules shall apply: 

	(i)
	Any
such election shall be made at the time and in the form specified by the Compensation Committee.

	(ii)
	The
exercise price of the Shares subject to the Option shall be equal to twenty-five percent (25%) of the Fair Market Value of such Shares on the Grant
Date, plus an additional amount to reflect the Company's cost of capital on the optioned property net of any foregone compensation during the period from the Grant Date until the exercise
date. As soon as practicable after the end of each calendar quarter, the Company's Chief Financial Officer shall determine the cost of capital that
shall be used to adjust the exercise price for the next following quarter. Such information shall be provided to Participants in writing as soon as practicable thereafter. Notwithstanding the
foregoing, if the Shares underlying the Option are Employer Stock, the cost of capital rate for the entire period that the Option is outstanding shall be the rate in effect on the date the Option is
granted. The Chief Financial Officer's determination with respect to the additional amount to be added to the exercise price of any Option with respect to the Company's cost of capital shall be final
and binding on all persons.

	(iii)
	The
difference between the Fair Market Value of the Shares subject to the Option on the Grant Date and the Grant Date exercise price thereof shall equal the amount of
the foregone compensation. The type of Shares subject to Option shall be determined by the Compensation Committee.

	(iv)
	In
the case of an Option granted pursuant to foregone compensation, (A) if the Option is granted prior to the date such compensation would have otherwise been
payable, the Option shall vest on the date the foregone compensation would have otherwise been payable, and (B) if the Option is granted on or after the date such compensation would have
otherwise been payable, the Option shall be fully vested on the Grant Date.

	(v)
	The
minimum amount of compensation that a Participant may forego as a condition of receiving an Option shall be five percent (5%) of annual
compensation.

        (d)    Exercise Price.    If the price of the Shares subject to an Option is not determined
under paragraph (c)(ii) next above, then it shall be determined by the Compensation Committee at the time the Option is granted. 

        (e)    Other Terms.    Options granted under the Plan may also be subject to such other
provisions (whether or not applicable to any other Options granted under the Plan) as the Compensation Committee determines appropriate, including without limitation, provisions for the forfeiture of,
or restrictions on disposition of, Shares acquired under any Option, provisions for the acceleration of exercisability or vesting of Options, provisions relating to restrictions on competitive
activity, or provisions to comply with Federal and state securities laws, or understandings or conditions as to the Participant's employment in addition to those specifically provided for under the
Plan. 

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        5.3.    Exercise of Options.    An Option may be exercised by filing a written notice with the
Compensation Committee. Such notice shall identify the Option to be exercised and must be accompanied by payment of the exercise price and applicable withholding taxes. Such payment may be paid in
cash or by check or in any other manner then permitted by the Compensation Committee. An Option may be exercised in part provided that the Compensation Committee shall have the right to impose a
reasonable minimum value on an exercise for administrative reasons. If a Participant terminates employment prior to the date an Option is fully exercisable, then the Option, to the extent exercisable
on the Termination Date, may be exercised during the applicable period set forth in Section 5.2(b). Notwithstanding any provision of the Plan to the contrary, in no event may an Option be
exercised prior to the six (6) month anniversary of its Grant Date; provided, however, that in accordance with Section 5.2(a), this six (6) month restriction shall not apply upon
death or Disability of the Participant or a Change in Control of the Company, nor shall it apply after a Participant's Termination Date if such Termination Date occurs for any reason other than
Retirement or Cause. 

        5.4.    Delivery of Shares.    As soon as practicable following the exercise of an Option and
payment of the exercise price and applicable taxes, the Company shall deliver the Shares subject to the Option to the Participant. 

        5.5.    Designation of Beneficiary.    At the time an Option is first awarded to a Participant
under the Plan, the Compensation Committee will provide the Participant with a beneficiary designation form. A Participant may designate one or more beneficiaries and successor beneficiaries. A
Participant may change his or her beneficiary designation at any time by filing a new beneficiary designation form with the Compensation Committee. The consent of a Participant's current beneficiary
is not required for a change of beneficiary. 

        If
the Participant dies without having designated a beneficiary, or the Participant's designated beneficiary predeceases such Participant, the beneficiary shall be the Participant's
spouse if the Participant is married on the date of death or, if the Participant is unmarried, the beneficiary shall be Participant's estate. No beneficiary has any rights under the Plan except as
provided under the terms hereof. 

ARTICLE VI  

 General Provisions  

        6.1.    No Contract of Employment.    The Plan does not constitute a contract of employment,
and selection as a Participant will not give any individual the right to be retained in the service of the Company as an employee, director, advisor or otherwise, nor any right or claim to any benefit
under the Plan unless such right or claim has specifically accrued under the terms of the Plan. 

        6.2.    Rights to Option Property.    No Option under the Plan shall confer upon the holder
thereof any right as a shareholder or owner of the Shares subject to the Option prior to the date on which shares are transferred to such holder. 

        6.3.    Limitations on Distributions.    Notwithstanding any other provision of the Plan, the
Company shall have no liability to deliver any Shares under the Plan or make any other distribution of benefits under the Plan unless such delivery or distribution would comply with all applicable
securities and other laws. 

        6.4.    Withholding of Taxes.    All distributions and payments under the Plan are subject to
the withholding of all applicable taxes. 

7

 

        6.5.    Non-Transferability.    Options granted under the Plan are not
transferable; provided, however, outstanding Options may be transferred to the Participant's beneficiary (as described in Section 5.5) following the Participant's death. To the extent that a
Participant who receives an Option under the Plan has the right to exercise such Option, the Option may be exercised during the lifetime of the Participant only by the Participant or his or her
guardian or legal representative. Notwithstanding the foregoing provisions of this Section 6.5, the Compensation Committee, in its sole discretion, may permit the Participant to transfer the
Option to a member of the Participant's Immediate Family or to a trust for the primary benefit of the Participant or his or her Immediate Family, subject to such rules and limitations as the
Compensation Committee may establish. 

        6.6.    Successors.    All obligations of the Company under the Plan and with respect to
Options granted hereunder, shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation or otherwise,
of all or substantially all of the business and/or assets of the Company. 

        6.7.    Funding.    The Company, in its sole discretion, may establish a trust, the assets of
which are subject to the Company's general creditors, for the purpose of holding Shares or other assets to assist it in meeting its obligations under the Plan. The Company's obligations under the Plan
shall be reduced to the extent that any amounts due under the Plan are paid from any such trust. 

        6.8.    Governing Law.    The Plan, and all agreements under the Plan, shall be construed in
accordance with and governed by the laws of the State of Delaware. 

        6.9.    Agreement with the Company.    At the time an Option is granted to a Participant under
the Plan, the Compensation Committee may require a Participant to enter into an agreement with the Company in a form specified by the Compensation Committee agreeing to the terms and conditions of the
Plan and to such additional terms and conditions not inconsistent with the Plan as the Compensation Committee, in its sole discretion, may prescribe. 

ARTICLE VII  

 Amendment and Termination  

        The Compensation Committee may at any time amend or terminate the Plan, provided that no amendment or termination may materially adversely affect the rights of
any Participant or beneficiary under any Option granted under the Plan prior to the date such amendment or termination is adopted. However, in no event may an Option be granted under the Plan on or
after April 1, 2013. 

8

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EDWARDS LIFESCIENCES CORPORATION EXECUTIVE OPTION PLAN

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