Document:

EX-10.6

 Exhibit 10.6 

INTERNATIONAL COMMERCIAL OPERATIONS AGREEMENT 

BY AND AMONG 
 BAXALTA
WORLD TRADE LLC 
 BAXALTA GMBH 

BAXALTA HOLDING B.V. 

BAXTER WORLD TRADE CORPORATION 

BAXTER HEALTHCARE SA 

AND 
 BAXTER HOLDING
B.V. 
 DATED AS OF JUNE 30, 2015 

 TABLE OF CONTENTS 

 

									
	 	 	 	  	Page	 
		
	 ARTICLE I DEFINITIONS
	  	 	3	  
		 	 Section 1.01
	  	Definitions	  	 	3	  
		
	 ARTICLE II INTERNATIONAL TRANSITION PERIOD
	  	 	7	  
		 	 Section 2.01
	  	Legal Title	  	 	7	  
		 	 Section 2.02
	  	Treatment of Deferred Baxalta Local Businesses	  	 	7	  
		 	 Section 2.03
	  	Operation of Deferred Baxalta Local Businesses	  	 	8	  
		 	 Section 2.04
	  	Deferred Baxalta Business Report	  	 	9	  
		 	 Section 2.05
	  	Aggregate Net Income Amount	  	 	9	  
		 	 Section 2.06
	  	Reporting; Disputes; Aggregate Net Income Amount Mechanics	  	 	10	  
		 	 Section 2.07
	  	Late Payments	  	 	13	  
		 	 Section 2.08
	  	Disclaimer of Representations and Warranties	  	 	13	  
		
	 ARTICLE III TRANSFER OF DEFERRED BAXALTA LOCAL BUSINESSES
	  	 	14	  
		 	 Section 3.01
	  	General	  	 	14	  
		 	 Section 3.02
	  	Transfer to Baxalta Local Entity	  	 	14	  
		 	 Section 3.03
	  	Transfer to Distributor	  	 	16	  
		 	 Section 3.04
	  	Sale or Wind-Down	  	 	17	  
		 	 Section 3.05
	  	Local Closing	  	 	18	  
		 	 Section 3.06
	  	Taxes	  	 	19	  
		
	 ARTICLE IV TERM
	  	 	20	  
		 	 Section 4.01
	  	Term	  	 	20	  
		 	 Section 4.02
	  	Survival	  	 	21	  
		
	 ARTICLE V DISPUTE RESOLUTION
	  	 	21	  
		 	 Section 5.01
	  	Dispute Resolution	  	 	21	  
		 	 Section 5.02
	  	Negotiation and Mediation	  	 	21	  
		 	 Section 5.03
	  	Arbitration.	  	 	21	  
		 	 Section 5.04
	  	Interim Relief	  	 	22	  
		 	 Section 5.05
	  	Remedies	  	 	22	  
		 	 Section 5.06
	  	Expenses	  	 	23	  
		 	 Section 5.07
	  	Continuation of Commitments	  	 	23	  
		
	 ARTICLE VI MISCELLANEOUS
	  	 	23	  
		 	 Section 6.01
	  	Incorporation by Reference	  	 	23	  
		 	 Section 6.02
	  	Governing Law	  	 	23	  
		 	 Section 6.03
	  	Notice	  	 	23	  

  
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 THIS INTERNATIONAL COMMERCIAL OPERATIONS AGREEMENT, dated as of June 30, 2015, is by and
among Baxalta World Trade LLC, a limited liability company organized under the laws of Delaware, United States of America (“Baxalta US”), Baxalta GmbH, a limited liability company organized under the laws of Switzerland
(“Baxalta Swiss”), Baxalta Holding B.V., a private company with limited liability organized under the laws of the Netherlands (“Baxalta Netherlands” and, together with Baxalta US and Baxalta Swiss, “Baxalta
Parties”), Baxter World Trade Corporation, a corporation organized under the laws of Delaware, United States of America (“Baxter US”), Baxter Healthcare SA, a stock company organized under the laws of Switzerland
(“Baxter Swiss”) and Baxter Holding B.V., a private company with limited liability organized under the laws of the Netherlands (“Baxter Netherlands” and, together with Baxter US and Baxter Swiss, “Baxter
Parties”). 
 RECITALS: 

WHEREAS, Baxter International Inc., a Delaware corporation (“Baxter”) announced its plan to separate (the
“Separation”) into two publicly traded companies, one focused on lifesaving medical products and the other focused on developing and marketing innovative biopharmaceuticals. The medical products company shall retain the Baxter name.
The biopharmaceuticals company will be named Baxalta Incorporated, a Delaware corporation (“Baxalta”); 
 WHEREAS, in
connection with the Separation, Baxter and Baxalta have entered into a Separation and Distribution Agreement (as may be amended from time to time, the “Separation and Distribution Agreement”) to govern the overall terms of the
Separation; 
 WHEREAS, Baxter is the direct or indirect parent of each entity holding Assets (as defined in the Separation and Distribution
Agreement) or Liabilities (as defined in the Separation and Distribution Agreement) of a Deferred Baxalta Local Business (as defined in the Separation and Distribution Agreement), including those listed on Schedule 1.01 (each, a
“Baxter Local Entity”); 
 WHEREAS, Baxter and Baxalta have agreed that the Baxalta Assets and the Baxalta Liabilities of
the Baxalta Business (each as defined in the Separation and Distribution Agreement) conducted by the Baxter Local Entities shall be transferred, directly or indirectly, to a Baxalta Local Entity; 

WHEREAS, in accordance with the terms of the Separation and Distribution Agreement, due to the requirements of applicable Laws, the need to
obtain certain Consents (as defined in the Separation and Distribution Agreement) from local Governmental Authorities (as defined in the Separation and Distribution Agreement) or for other business reasons, Baxter and Baxalta have agreed (a) to
defer until after the Distribution Date (as defined in the Separation and Distribution Agreement) the direct or indirect transfer of the Assets and the assumption of the Liabilities of each Deferred Baxalta Local Business and (b) to cause
certain funds to be transferred between Baxter US and Baxalta US, Baxter Swiss and Baxalta Swiss, and Baxter Netherlands and Baxalta Netherlands, in each case in accordance with the terms and conditions of this Agreement; and 

 WHEREAS, for U.S. federal Income Tax purposes, the Parties intend for the (a) transfer of
payments between Baxter US and Baxalta US, (b) transfers of Assets or payments between Baxter Swiss and Baxalta Swiss and (c) transfers of Assets or payments between Baxter Netherlands and Baxalta Netherlands, to be treated as occurring on
the same date as the date of the US Agreement, the Swiss Agreement and the Dutch Agreement, respectively. 
 NOW, THEREFORE, in
consideration of the mutual agreements, provisions and covenants contained in this Agreement (as defined herein), the Parties (as defined herein) hereby agree as follows: 

ARTICLE I 
 DEFINITIONS

 Section 1.01 Definitions. Reference is made to Section 9.15 of the Separation and Distribution Agreement (as
incorporated by reference in Section 6.01 of this Agreement) regarding the interpretation of certain words and phrases used in this Agreement. Capitalized terms defined in this Agreement shall have the meanings set forth herein;
provided that, as and to the extent the context requires, any capitalized terms within definitions otherwise incorporated by reference from the Separation and Distribution Agreement shall have the meanings set forth in the Separation and
Distribution Agreement. Capitalized terms used herein (or within any definition in the Separation and Distribution Agreement) but not otherwise defined herein shall have the meanings set forth in the Separation and Distribution Agreement. 

“Accounts Payable” has the meaning set forth in Schedule 2.05(b). 

“Accounts Receivable” has the meaning set forth in Schedule 2.05(b). 

“Accrued Taxes” has the meaning set forth in Schedule 2.05(b). 

“Actual Tax Amount” has the meaning set forth in Schedule 2.05(b). 

“Additional Income Taxes” has the meaning set forth in Section 3.06(b). 

“Adjusted Actual Tax Amount” has the meaning set forth in Schedule 2.05(b). 

“Aggregate Modified Net Working Capital Adjustment Amount” has the meaning set forth in Schedule 2.05(b). 

“Aggregate Net Income Amount” has the meaning set forth in Schedule 2.05(b). 

“Agreement” means this International Commercial Operations Agreement and each of the Schedules hereto. 

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

“Baxalta Brazil” has the meaning set forth in Section 3.02(a)(ii). 

  
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 “Baxalta China” has the meaning set forth in Section 3.02(a)(i).

 “Baxalta India” has the meaning set forth in Section 3.02(a)(i). 

“Baxalta Local Entity” means each Baxalta Subsidiary (which, for the avoidance of doubt, may include each Baxalta Party) or
designee that acquires legal title to any Assets or Liabilities of a Deferred Baxalta Local Business or the equity interests of a Transferring Entity in accordance with the terms of this Agreement. 

“Baxalta Malaysia” has the meaning set forth in Section 3.02(a)(i). 

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

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

“Baxalta Party” or “Baxalta Parties” has the meaning set forth in the Preamble. 

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

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

“Baxter Brazil” means Baxter Hospitalar Ltda. 

“Baxter China” means Baxter Healthcare Trading (Shanghai) Co., Ltd. 

“Baxter India” means Baxter (India) Private Limited. 

“Baxter Local Entity” has the meaning set forth in the Recitals. 

“Baxter Malaysia” means Baxter Healthcare (Malaysia) Sdn Bhd. 

“Baxter Netherlands” has the meaning set forth in the Preamble. 

“Baxter Party” or “Baxter Parties” has the meaning set forth in the Preamble. 

“Baxter Swiss” has the meaning set forth in the Preamble. 

“Baxter US” has the meaning set forth in the Preamble. 

“Business Day” means any day other than a Saturday, Sunday or other day on which the banks in New York are authorized by Law
or executive order to be closed. 
 “CPR” has the meaning set forth in Section 5.02. 

“Deferred Baxalta Business Report” has the meaning set forth in Section 2.04(a). 

“Dispute” has the meaning set forth in Section 5.01. 

“Dispute Notice” has the meaning set forth in Section 5.02. 

  
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 “Distribution” has the meaning set forth in Schedule 2.05(b). 

“Dutch Aggregate Net Income Amount” has the meaning set forth in Schedule 2.05(b). 

“Dutch Agreement” means the Conveyance and Assumption Instrument by and between Baxter Netherlands and Baxalta Netherlands
entered into consistent with the terms of the Separation and Distribution Agreement. 
 “Dutch Local Entity” means, except
for Baxter Swiss and the Swiss Group, each Baxter Local Entity owned directly or indirectly by Baxter Netherlands. 
 “Dutch
Group” means, collectively, the Dutch Local Entities. 
 “Employee Matters Agreement” means the Employee Matters
Agreement to be entered into by and between Baxter and Baxalta in connection with the Separation, the Distribution or the other transactions contemplated by the Separation and Distribution Agreement. 

“Exchange Rate” means, at any time, Baxter’s most recent monthly transaction rate, as determined in the ordinary course
of business consistent with past practice. 
 “Final Determination” has the meaning set forth in the Tax Matters Agreement.

 “Income Tax” has the meaning set forth in the Tax Matters Agreement. 

“Independent Accounting Firm” has the meaning set forth in Section 2.06(d). 

“International Operations Transition Period” means the period commencing on the Effective Time and ending on the Termination
Date. 
 “Inventory” has the meaning set forth in Schedule 2.05(b). 

“Local Closing” has the meaning set forth in Section 3.01. 

“Local Closing Date” has the meaning set forth in Section 3.01. 

“Local Currency” has the meaning set forth in Section 3.02(b). 

“Modified Net Working Capital” has the meaning set forth in Schedule 2.05(b). 

“Modified Net Working Capital Adjustment Amount” has the meaning set forth in Schedule 2.05(b). 

“Net Income Amount” has the meaning set forth in Schedule 2.05(b). 

“Net Income Dispute Notice” has the meaning set forth in Section 2.06(b)(ii). 

“Notice” means any written notice, request demand or other communication specifically referencing this Agreement and given in
accordance with Section 6.03. 

  
 5 

 “NWC Closed Baxter Local Entity” has the meaning set forth in Schedule
2.05(b). 
 “Parties” means the Baxter Parties and the Baxalta Parties. 

“Profit Determination” has the meaning set forth in Schedule 2.05(b). 

“Purchase Price Loan” has the meaning set forth in Section 3.02(a)(iii). 

“Report” has the meaning set forth in Section 2.06(a)(ii). 

“Restructuring” has the meaning set forth in Section 3.06(c). 

“Restructuring Income Taxes” has the meaning set forth in Section 3.06(c). 

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

“Separation and Distribution Agreement” has the meaning set forth in the Recitals. 

“Swiss Aggregate Net Income Amount” has the meaning set forth in Schedule 2.05(b). 

“Swiss Agreement” means the Conveyance and Assumption Instrument by and between Baxter Swiss and Baxalta Swiss entered into
consistent with the terms of the Separation and Distribution Agreement. 
 “Swiss Local Entity” means any Baxter Local
Entity owned directly or indirectly by Baxter Swiss. 
 “Swiss Group” means, collectively, the Swiss Local Entities. 

“Tax Matters Agreement” means the Tax Matters Agreement to be entered into by and between Baxter and Baxalta or their
respective Subsidiaries in connection with the Separation, the Distribution or the other transactions contemplated by the Separation and Distribution Agreement. 

“Tax Return” has the meaning set forth in the Tax Matters Agreement. 

“Termination Date” means the date that is the second anniversary of the Distribution Date; provided that, to the
extent a Local Closing has not been initiated before the date that is ninety (90) days prior to the Termination Date as a result of the failure of Baxalta and its Affiliates to receive necessary regulatory approvals despite the use of
commercially reasonable efforts by them to obtain such approvals, then the “Termination Date” shall be extended by an additional one-year period. For the avoidance of doubt, additional one-year extensions (following the first or any later
one-year extensions) will further extend the Termination Date to the extent that a Local Closing has not been initiated before the date that is ninety (90) days prior to the then-current Termination Date as a result of the failure of Baxalta
and its Affiliates to receive necessary regulatory approvals despite the use of commercially reasonable efforts by them to obtain such approvals. 

  
 6 

 “Transferring Entity” means an entity formed or acquired by a Baxter Party or
such other Baxter Subsidiary designated by a Baxter Party for the purpose of acquiring the Assets and assuming the Liabilities of the Deferred Baxalta Local Business of a Baxter Local Entity, the equity interests of which shall transfer to a Baxalta
Party or a Baxalta Local Entity as part of a Local Closing following the transfer of such Assets and the assumption of such Liabilities, including each of Baxalta China, Baxalta India, Baxalta Malaysia and Baxalta Brazil. 

“Transfer Taxes” has the meaning set forth in the Tax Matters Agreement. 

“Unresolved Disputes” has the meaning set forth in Section 2.06(d). 

“US Aggregate Net Income Amount” has the meaning set forth in Schedule 2.05(b). 

“US Agreement” means the Conveyance and Assumption Instrument by and between Baxter US and Baxalta US entered into consistent
with the terms of the Separation and Distribution Agreement. 
 “US Local Entity” means, except for Baxter Netherlands, the
Dutch Group, Baxter Swiss and the Swiss Group, any Baxter Local Entity owned directly or indirectly by Baxter US. 
 “US
Group” means, collectively, the US Local Entities. 
 “Valuation Firm” has the meaning set forth in
Section 3.05(a). 
 ARTICLE II 

INTERNATIONAL TRANSITION PERIOD 

Section 2.01 Legal Title. Upon the consummation of each Local Closing pursuant to Article III, legal title to all of the
Baxalta Assets that are held at such time by each Baxter Local Entity with respect to such Local Closing, and all of the Baxalta Liabilities of any Baxter Local Entity with respect to such Local Closing that are outstanding at such time, shall
transfer to the applicable Baxalta Local Entity upon such Local Closing. Until such time, legal title to such Baxalta Assets and Baxalta Liabilities shall remain with the applicable Baxter Local Entity. Each of the Swiss Agreement and the Dutch
Agreement contain an obligation on Baxter Swiss and Baxter Netherlands, respectively, to transfer all of the Baxalta Assets and Baxalta Liabilities to Baxalta Swiss and Baxalta Netherlands, respectively. 

Section 2.02 Treatment of Deferred Baxalta Local Businesses. 

(a) From and after the Effective Time until the consummation of the applicable Local Closing pursuant to Article III: (i) the
Deferred Baxalta Local Businesses shall be held by the applicable Baxter Local Entity on behalf of and for the benefit of Baxalta or, where applicable, a Baxalta Subsidiary or designee; (ii) Baxter, a Baxter Local Entity or, where applicable, a
designee shall pay, perform and discharge fully when due and payable the Liabilities of the Deferred Baxalta Local Businesses; and (iii) insofar as reasonably practicable and to the extent permitted by applicable Law, Baxter, a Baxter Local
Entity or, where applicable, a designee shall manage and operate each Deferred Baxalta Local Business in 

  
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accordance with this Agreement and take such other actions as may reasonably be requested by a Baxalta Party so that all of the rewards and Liabilities attributable to the Deferred Baxalta Local
Businesses, including use, risk of loss, potential for gain, and control over such Deferred Baxalta Local Businesses, shall inure from and after the Effective Time to Baxalta or, where applicable, a Baxalta Subsidiary or designee. 

(b) If, after giving effect to the transactions contemplated by this Agreement, the Parties determine that the intent of the Parties set forth
in Section 2.02(a) has not been achieved, the Parties shall use their commercially reasonable efforts to mutually agree upon alternative arrangements to implement the purposes and intent of the Parties set forth in
Section 2.02(a). 
 Section 2.03 Operation of Deferred Baxalta Local Businesses. 

(a) Subject to the terms and conditions of the Employee Matters Agreement, each Baxter Party shall use, or cause the applicable Baxter Local
Entity to use, commercially reasonable efforts until the applicable Local Closing to manage and operate each Deferred Baxalta Local Business as may reasonably be requested by a Baxalta Party from time to time. Unless otherwise instructed by a
Baxalta Party, each Baxter Party shall cause each Baxter Local Entity to operate the applicable Deferred Baxalta Local Business in a manner that is based on past practice and that is substantially similar in nature, quality and timeliness to the
analogous operations conducted by the applicable Baxter Local Entity prior to the Effective Time. Each Baxter Party shall cause each applicable Baxter Local Entity to perform its duties and responsibilities hereunder in good faith. 

(b) Until each Local Closing, Baxalta: (i) shall be subject to all of the risks and burdens associated with all distributions, shipments
and sales of Baxalta Products made by a Baxter Party or the applicable Baxter Local Entity to Third Party customers, including risk of loss of Baxalta Product, product liability claims and failure of collection of any accounts receivable arising
from sales of Baxalta Products to Third Party customers; (ii) shall be entitled to all benefits generated by all sales of Baxalta Products made by a Baxter Party or the applicable Baxter Local Entity to Third Party customers; and
(iii) shall direct all marketing, sales and pricing functions for Baxalta Products, including price modifications and rebates, in accordance with applicable Laws. 

(c) Nothing in this Agreement shall require any Baxter Party (or any other Person) to cause any Baxter Local Entity to operate any Deferred
Baxalta Local Business to the extent the manner of such operations would constitute a violation of applicable Laws, Baxter’s (or any Baxter Local Entity’s) policies or internal compliance guidelines or requirements or any existing Contract
with a Third Party. If any Baxter Party is or becomes aware of any such restriction on a Baxter Local Entity, such Baxter Party shall use commercially reasonable efforts to promptly provide Notice of any such restriction to the Baxalta Parties. 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 a Baxter Local Entity to operate the applicable Deferred Baxalta Local Business in
accordance with the standards set forth in this Section 2.03. If the Parties, despite the use of such commercially reasonable efforts, are unable to obtain a required Consent or the operation of a Deferred Baxalta Local Business by a
Baxter 

  
 8 

 
Local Entity would constitute a violation of applicable Laws or Baxter’s (or any Baxter Local Entity’s) policies or internal compliance guidelines or requirements or any existing
Contract with a Third Party, the Baxter Parties shall use commercially reasonable efforts in good faith to cause the Baxter Local Entity to operate the applicable Deferred Baxalta Local Business in a manner as closely as possible to the standards
described in this Section 2.03 that would apply absent the exception provided for in the first sentence of this Section 2.03(c). 

Section 2.04 Deferred Baxalta Business Report. 

(a) Not later than forty-five (45) days after the Distribution Date, the Baxter Parties shall prepare and deliver to the Baxalta Parties a
financial report (the “Deferred Baxalta Business Report”) setting forth the Baxalta Assets and Baxalta Liabilities of each Deferred Baxalta Local Business held by each Baxter Local Entity as of the Effective Time. The Deferred
Baxalta Business Report shall be prepared on a country-by-country basis in the applicable Local Currency in accordance with the principles used in the Baxalta Pro Forma Balance Sheet, using GAAP applied on a basis consistent to the extent such
Baxalta Pro Forma Balance Sheet was prepared in accordance with GAAP, and with the same level of detail as used by Baxter in the preparation of Baxter’s monthly financial reporting package and the standard financial reports used by Baxter on
the Distribution Date. 
 (b) If the Baxalta Parties disagree with any amount set forth in the Deferred Baxalta Business Report, the Baxalta
Parties shall give Notice to the Baxter Parties within fifteen (15) days of receipt of the Deferred Baxalta Business Report stating the specific reasons for their disagreement. If the Baxter Parties and Baxalta Parties are unable to resolve any
disagreement, the disagreement shall be resolved pursuant to the procedures set forth in Section 2.06(d) and Section 2.06(e). 

Section 2.05 Aggregate Net Income Amount. 

(a) Subject to Section 2.06 and Section 2.07, if on a monthly basis during the International Operations Transition
Period, in connection with the operation of the Deferred Baxalta Local Businesses during such period: 
 (i) the Swiss
Aggregate Net Income Amount is a positive number, Baxter Swiss (on behalf of the Swiss Group) shall remit to Baxalta Swiss the Swiss Aggregate Net Income Amount; or 

(ii) the Swiss Aggregate Net Income Amount is a negative number, Baxalta Swiss shall remit to Baxter Swiss (on behalf of the
Swiss Group) the Swiss Aggregate Net Income Amount; and 
 (iii) the Dutch Aggregate Net Income Amount is a positive number,
Baxter Netherlands (on behalf of the Dutch Group) shall remit to Baxalta Netherlands the Netherlands Aggregate Net Income Amount; or 

(iv) the Dutch Aggregate Net Income Amount is a negative number, Baxalta Netherlands shall remit to Baxter Netherlands (on
behalf of the Dutch Group) the Dutch Aggregate Net Income Amount; and 

  
 9 

 (v) the US Aggregate Net Income Amount is a positive number, Baxter US (on behalf
of the US Group) shall remit to Baxalta US the US Aggregate Net Income Amount; or 
 (vi) the US Aggregate Net Income Amount
is a negative number, Baxalta US shall remit to Baxter US (on behalf of the US Group) the US Aggregate Net Income Amount. 
 (b) The
Aggregate Net Income Amount (and, accordingly, each of the Swiss Aggregate Net Income Amount, the Dutch Aggregate Net Income Amount and the US Aggregate Net Income Amount) shall be calculated in accordance with the principles set forth on
Schedule 2.05(b). 
 Section 2.06 Reporting; Disputes; Aggregate Net Income Amount Mechanics. 

(a) Not later than the eighth (8th) Business Day of each calendar month during the International Operations Transition Period (or, if
later, the eighth (8th) Business Day following delivery of the Deferred Baxalta Business Report in accordance with the terms of Section 2.04(a)), and, in the calendar month
immediately following the last calendar month of the International Operations Transition Period if the results of all operations of each Deferred Baxalta Local Business prior to the expiration of the International Operations Transition Period have
not been included in the Aggregate Net Income Amount for a prior calendar month, the Baxter Parties shall prepare and deliver to the Baxalta Parties in writing, for each Baxter Local Entity for which a Local Closing has not occurred, or for which a
Local Closing has occurred but for which the results of all operations of the Deferred Baxalta Local Business prior to such Local Closing have not been included in the Aggregate Net Income Amount for a prior calendar month, in each case attributable
to the Deferred Baxalta Local Business operated by the applicable Baxter Local Entity for the prior calendar month, each of the following: 

(i) a profit and loss statement and a balance sheet; provided, however, that a balance sheet shall only be
prepared and delivered in each calendar month for which the calculation of the Aggregate Net Income Amount of the prior calendar month includes an adjustment for the Aggregate Modified Net Working Capital Adjustment Amount; and 

(ii) a report (each, a “Report”) setting forth the Aggregate Net Income Amount, the Swiss Aggregate Net Income
Amount, the Dutch Aggregate Net Income Amount and the US Aggregate Net Income Amount. 
 Each profit and loss statement and balance sheet
and Report shall be prepared in accordance with the principles set forth on Schedule 2.05(b). Each profit and loss statement and balance sheet shall include amounts specifically identifiable to the Deferred Baxalta Local Business or allocated
to the Deferred Baxalta Local Business in accordance with the principles set forth on Schedule 2.05(b), segregated in unique accounts within each Baxter Local Entity’s financial systems. 

  
 10 

 (b) Within ten (10) days after the delivery of each Report, the Baxalta Parties shall
deliver to the Baxter Parties a Notice in which the Baxalta Parties shall either: 
 (i) agree in writing with the Aggregate
Net Income Amount (and, accordingly each of the Swiss Aggregate Net Income Amount, the Dutch Aggregate Net Income Amount and the US Aggregate Net Income Amount), in which case such calculation shall be final and binding on the Parties; or 

(ii) dispute the Aggregate Net Income Amount (or any component thereof) by delivering to the Baxter Parties a Notice (a
“Net Income Dispute Notice”) setting forth in reasonable detail the basis for such dispute and certifying that such disputed Aggregate Net Income Amount is being disputed in good faith. 

For purposes of this Section 2.06(b), the Baxalta Parties may only deliver a Net Income Dispute Notice on the basis that the
Baxter Parties’ calculation of the Aggregate Net Income Amount (or any component thereof): (1) was not in accordance with the principles set forth on Schedule 2.05(b); or (2) contains mathematical errors in its calculation.

 (c) If the Baxalta Parties fail to provide a Net Income Dispute Notice within ten (10) days after delivery of the Report, then the
Baxalta Parties shall be deemed to have irrevocably accepted the Aggregate Net Income Amount (and, accordingly each of the Swiss Aggregate Net Income Amount, the Dutch Aggregate Net Income Amount and the US Aggregate Net Income Amount), in which
case, the Aggregate Net Income Amount (and, accordingly each of the Swiss Aggregate Net Income Amount, the Dutch Aggregate Net Income Amount and the US Aggregate Net Income Amount) shall be final and binding on the Parties. 

(d) If the Baxalta Parties timely deliver a Net Income Dispute Notice to the Baxter Parties or there is otherwise a dispute between the
Parties with respect to the matters set forth in Section 2.04(b) or with respect to any of the information delivered pursuant to Section 2.06, then the Baxter Parties and the Baxalta Parties shall attempt in good faith, for a
period of thirty (30) days, to resolve the dispute between the Parties. Any resolution by the Baxter Parties and the Baxalta Parties during such thirty (30) day period as to any items in dispute shall be final and binding on the Parties.
If the Baxter Parties and the Baxalta Parties do not resolve all such items in dispute by the end of such thirty (30) day period, then the Baxter Parties and the Baxalta Parties shall engage a mutually agreeable independent accounting firm of
recognized international standing (or such other firm as agreed by the Parties), which firm is not the regular auditing firm of either Baxter or Baxalta, and shall submit to such independent accounting firm the remaining items in dispute (the
“Unresolved Disputes”) for resolution. If the Baxter Parties and the Baxalta Parties are unable to jointly select such independent accounting firm within fifteen (15) days after such thirty (30) day period, the Baxter
Parties, on the one hand, and the Baxalta Parties, on the other hand, shall each select an independent accounting firm of recognized international standing and each such selected accounting firm shall select a third independent accounting firm of
recognized international standing, which firm is not the regular auditing firm of either Baxter or Baxalta (such selected independent accounting firm, whether pursuant to this sentence or the preceding sentence, the “Independent Accounting
Firm”). The Independent Accounting Firm shall act as an accounting expert, but not as an arbitrator, to determine based solely on the provisions of this Section 2.06 (or Section 2.04(b)) and the presentations by the
Baxter Parties and the Baxalta Parties, and not by independent review, only the Unresolved Disputes and only as to whether such amounts were arrived at in conformity with Section 2.06 and Schedule 2.05(b) (or
Section 2.04(b)). The Baxter Parties and the Baxalta 

  
 11 

 
Parties shall instruct the Independent Accounting Firm to render its determination with respect to the Unresolved Disputes in a written report that specifies the conclusions of the Independent
Accounting Firm as to each Unresolved Dispute. The Baxter Parties and the Baxalta Parties shall each use their commercially reasonable efforts to cause the Independent Accounting Firm to render its determination within ten (10) days after
referral of the Unresolved Disputes to such firm or as soon thereafter as reasonably practicable. The Independent Accounting Firm’s determination as set forth in its report shall be final and binding on the Parties. The fees and expenses of the
Independent Accounting Firm shall be allocated by the Independent Accounting Firm between the Baxter Parties and the Baxalta Parties based on the relative merits of their respective positions in respect of the Unresolved Dispute. 

(e) For purposes of complying with this Section 2.06, the Baxter Parties and the Baxalta Parties shall furnish to each other and
to the Independent Accounting Firm such work papers and other documents and information relating to the Unresolved Dispute as the Independent Accounting Firm may request and are available to such Parties (or their independent public accountants) and
shall be afforded the opportunity to present to the Independent Accounting Firm any material related to the Unresolved Dispute and to discuss any items relating to the Unresolved Dispute with the Independent Accounting Firm. The Parties shall
require that the Independent Accounting Firm enter into a reasonable engagement letter and customary confidentiality agreement with respect to the work papers and other documents and information provided to the Independent Accounting Firm pursuant
to this Section 2.06. 
 (f) Within five (5) Business Days after the Aggregate Net Income Amount (and, accordingly each of
the Swiss Aggregate Net Income Amount, the Dutch Aggregate Net Income Amount and the US Aggregate Net Income Amount) has become final and binding with respect to any month: (i) Baxter Swiss shall pay to Baxalta Swiss (if the Swiss Aggregate Net
Income Amount is a positive number) or Baxalta Swiss shall pay to Baxter Swiss (if the Swiss Aggregate Net Income Amount is a negative number) the Swiss Aggregate Net Income Amount by wire transfer (or such other method of payment as may be agreed
between Baxter Swiss and Baxalta Swiss) in Euros; (ii) Baxter Netherlands shall pay to Baxalta Netherlands (if the Dutch Aggregate Net Income Amount is a positive number) or Baxalta Netherlands shall pay to Baxter Netherlands (if the Dutch
Aggregate Net Income Amount is a negative number) the Dutch Aggregate Net Income Amount by wire transfer (or such other method of payment as may be agreed between Baxter Netherlands and Baxalta Netherlands) in Euros; and (iii) Baxter US shall
pay to Baxalta US (if the US Aggregate Net Income Amount is a positive number) or Baxalta US shall pay to Baxter US (if the US Aggregate Net Income Amount is a negative number) the US Aggregate Net Income Amount by wire transfer (or such other
method of payment as may be agreed between Baxter US and Baxalta US) in Dollars; provided that if the amount related to any Deferred Local Baxalta Business is the subject of an Unresolved Dispute, the Swiss Aggregate Net Income Amount, the
Dutch Aggregate Net Income Amount or the US Aggregate Net Income Amount, as applicable, calculated excluding only such entities that are the subject of such Unresolved Disputes shall be paid in accordance with this paragraph (with the Swiss
Aggregate Net Income Amount, the Dutch Aggregate Net Income Amount or the US Aggregate Net Income Amount, as applicable, with respect to any entities subject to an Unresolved Dispute paid within five (5) Business Days after such amount has
become final and binding). 

  
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 Section 2.07 Late Payments. Any amount not paid when due pursuant to this
Agreement (and any amounts billed or otherwise invoiced or demanded and properly payable that are not paid within five (5) Business Days of the date of such bill, invoice or other demand) shall accrue interest at a rate per annum equal to the
rate of 3% per annum, or the maximum legal rate, whichever is lower. 
 Section 2.08 Disclaimer of Representations and
Warranties. 
 (a) EACH BAXTER PARTY (ON BEHALF OF ITSELF AND EACH OF THE APPLICABLE BAXTER LOCAL ENTITIES) AND EACH BAXALTA PARTY
(ON BEHALF OF ITSELF AND EACH OF THE APPLICABLE BAXALTA LOCAL ENTITIES) UNDERSTANDS AND AGREES THAT, EXCEPT AS EXPRESSLY SET FORTH HEREIN, NO PARTY TO THIS AGREEMENT OR OTHERWISE, IS REPRESENTING OR WARRANTING TO ANY OTHER PARTY HERETO IN ANY WAY AS
TO: (I) THE ASSETS, BUSINESSES OR LIABILITIES TRANSFERRED OR ASSUMED AS CONTEMPLATED HEREBY; (II) ANY APPROVALS OR NOTIFICATIONS REQUIRED IN CONNECTION HEREWITH; (III) THE VALUE OR FREEDOM FROM ANY SECURITY INTERESTS OF, OR ANY OTHER MATTER
CONCERNING, ANY ASSETS OF SUCH PARTY; (IV) THE ABSENCE OF ANY DEFENSES TO OR RIGHT OF SETOFF AGAINST OR FREEDOM FROM COUNTERCLAIM WITH RESPECT TO ANY PROCEEDING OR OTHER ASSET, INCLUDING ANY ACCOUNTS RECEIVABLE, OF EITHER PARTY; OR (V) THE
LEGAL SUFFICIENCY OF ANY CONVEYANCE AND ASSUMPTION INSTRUMENTS TO CONVEY TITLE TO ANY ASSET OR THING OF VALUE UPON THE EXECUTION, DELIVERY AND FILING OF SUCH CONVEYANCE AND ASSUMPTION INSTRUMENTS. EXCEPT AS MAY EXPRESSLY BE SET FORTH IN THIS
AGREEMENT, ALL SUCH ASSETS ARE BEING TRANSFERRED ON AN “AS IS,” “WHERE IS” BASIS (AND, IN THE CASE OF ANY REAL PROPERTY, BY MEANS OF A QUITCLAIM OR SIMILAR FORM DEED OR CONVEYANCE) AND THE RESPECTIVE TRANSFEREES SHALL BEAR THE
ECONOMIC AND LEGAL RISKS THAT (A) ANY CONVEYANCE AND ASSUMPTION INSTRUMENT MAY PROVE TO BE INSUFFICIENT TO VEST IN THE TRANSFEREE GOOD AND MARKETABLE TITLE, FREE AND CLEAR OF ALL SECURITY INTERESTS; AND (B) ANY NECESSARY CONSENTS ARE NOT
OBTAINED OR THAT ANY REQUIREMENTS OF LAWS, AGREEMENTS, SECURITY INTERESTS OR JUDGMENTS ARE NOT COMPLIED WITH. 
 (b) EXCEPT AS EXPRESSLY
PROVIDED IN THIS AGREEMENT, EACH PARTY ACKNOWLEDGES AND AGREES THAT ALL SERVICES AND PRODUCTS ARE PROVIDED ON AN “AS-IS” BASIS FOR PURPOSES OF THIS AGREEMENT, THAT EACH PARTY ASSUMES ALL RISK AND LIABILITY ARISING FROM OR RELATING TO ITS
USE OF AND RELIANCE UPON THE SERVICES PROVIDED HEREUNDER, AND THAT EACH PARTY MAKES NO WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE SERVICES AND PRODUCTS PROVIDED HEREUNDER, AND HEREBY DISCLAIMS ANY REPRESENTATION OR WARRANTY OF
MERCHANTABILITY, FITNESS FOR ANY PARTICULAR PURPOSE, NON-INFRINGEMENT OR ANY OTHER WARRANTY WHATSOEVER. 

  
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 (c) Each Baxter Party (on behalf of itself and each of the applicable Baxter Local Entities) and
each Baxalta Party (on behalf of itself and each of the Baxalta Local Entities) further understands and agrees that if the disclaimer of express or implied representations and warranties contained in this Section 2.08 is held
unenforceable or is unavailable for any reason under the Laws of any jurisdiction outside the United States or if, under the Laws of a jurisdiction outside the United States, both a Baxter Local Entity, on the one hand, and a Baxalta Local Entity,
on the other hand, are jointly or severally liable for any Liability of the Deferred Baxalta Local Business or any other Liability of the Baxter Local Entity, respectively, then, the Parties intend that, notwithstanding any provision to the contrary
under the Laws of such foreign jurisdictions, the provisions of this Agreement (including the disclaimer of all representations and warranties, allocation of Liabilities among the Parties and their respective Subsidiaries, releases, indemnification
and contribution of Liabilities) shall prevail for any and all purposes among the Parties, the Baxter Local Entities and the Baxalta Local Entities, as applicable. 

ARTICLE III 
 TRANSFER
OF DEFERRED BAXALTA LOCAL BUSINESSES 
 Section 3.01 General. With respect to the Deferred Baxalta Local Business of
each Baxter Local Entity, on or before the Termination Date: (a) a Baxalta Party may exercise the right to obtain legal title to the Assets and the Liabilities of such Deferred Baxalta Local Business (whether by directly acquiring such Assets
and Liabilities or as a result of acquiring from a Baxter Local Entity the equity interests of a Transferring Entity) from such Baxter Local Entity pursuant to Section 3.02; (b) a Baxalta Party may elect that such Assets and
Liabilities of such Deferred Baxalta Local Business be transferred to a distributor pursuant to Section 3.03; or (c) at the request of a Baxalta Party, or in accordance with Section 3.04(b) and
Section 3.04(c), the applicable Baxter Local Entity shall use commercially reasonable efforts to sell to a Third Party or wind-down the Assets and the Liabilities of such Deferred Baxalta Local Business on terms reasonably acceptable to
the applicable Baxter Party and the applicable Baxalta Party (each of (a), (b) and (c), a “Local Closing”). A Baxalta Party shall only be entitled to initiate a Local Closing by providing the Baxter Parties at least ninety
(90) days’ prior Notice of the anticipated date (which date shall not be later than the Termination Date) of consummation of such Local Closing; provided, however, that, except with respect to a Local Closing pursuant to
Section 3.04, the actual closing date for any Local Closing shall be mutually agreed upon in advance between the Baxter Parties and the Baxalta Parties (the “Local Closing Date”). 

Section 3.02 Transfer to Baxalta Local Entity. 

(a) If a Baxalta Party initiates a Local Closing by electing to exercise its right to obtain legal title to the Assets and the Liabilities of
the Deferred Baxalta Local Business from a Baxter Local Entity (whether by directly acquiring such Assets and Liabilities or as a result of acquiring from a Baxter Local Entity the equity interests of a Transferring Entity), such right may be
transferred by the applicable Baxalta Party to a duly formed Baxalta Local Entity. At such Local Closing, the Baxter Local Entity holding, directly or as a result of its equity interest in the Transferring Entity holding, legal title to the Assets
and Liabilities of the applicable Deferred Baxalta Local Business shall sell, transfer, convey and deliver to the applicable Baxalta Local Entity, and the applicable Baxalta Local Entity shall purchase and accept delivery of, all

  
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such Assets or equity interests and the applicable Baxalta Local Entity shall accept, assume and agree faithfully to perform, discharge and fulfill all such Liabilities in exchange for a purchase
price, if required, equal to the fair market value of such Deferred Local Baxalta Business as of the Local Closing Date. The Conveyance and Assumption Instruments for a Local Closing shall be substantially in the same form as those used by Baxter
and Baxalta or their respective Subsidiaries, as applicable, in connection with the contribution, assignment, transfer, conveyance and delivery of the Assets (including equity interests) and the transfer of the Liabilities of the Baxalta Business
prior to the Distribution Date. 
 (i) The Parties agree that for the Deferred Baxalta Local Businesses of each of Baxter
China, Baxter India, and Baxter Malaysia, Baxter Swiss shall form or acquire separate entities (“Baxalta China”, “Baxalta India” and “Baxalta Malaysia”) into which the Assets and the Liabilities of
the Deferred Baxalta Local Business of each of Baxter China, Baxter India and Baxter Malaysia shall be transferred, respectively, prior to Baxter Swiss transferring the equity interests in each of Baxalta China, Baxalta India and Baxalta Malaysia to
Baxalta Swiss. 
 (ii) The Parties agree that for the Deferred Baxalta Local Business of Baxter Brazil, Baxter Netherlands
has formed an entity (“Baxalta Brazil”) into which the Assets and the Liabilities of the Deferred Baxalta Local Business of Baxter Brazil shall be transferred prior to Baxter Netherlands transferring the equity interests in Baxalta
Brazil to Baxalta Netherlands. 
 (iii) Prior to the acquisition of the Assets and the Liabilities of any Deferred Baxalta
Local Business of a Baxter Local Entity by a Transferring Entity, the Baxter Parties shall consult with and obtain the prior written consent of the Baxalta Parties in connection with the amount of any loan to be provided (each, a “Purchase
Price Loan”) and the amount of equity to be injected into the Transferring Entity by a Baxter Party or such other Baxter Subsidiary designated by a Baxter Party to fund the purchase price to be paid by the applicable Transferring Entity for
such Assets and Liabilities. To the extent that a Purchase Price Loan is provided by a Baxter Party or a Baxter Subsidiary designated by a Baxter Party, in addition to the equity interests of the Transferring Entity being transferred to a Baxalta
Party or a Baxalta Local Entity upon the applicable Local Closing, the loan receivable Asset of the applicable Baxter Party or the applicable Baxter Subsidiary designated by a Baxter Party in connection with such Purchase Price Loan shall also be
transferred to the applicable Baxalta Party or Baxalta Local Entity as part of the applicable Local Closing and such loan receivable Asset shall for purposes of this Agreement be considered an Asset of the Deferred Baxalta Local Business. 

(b) Subject to Section 3.05, a Baxalta Party shall pay or cause a Baxalta Local Entity to pay the purchase price, if required, to
the Baxter Local Entity (or a Baxter Party or such other Baxter Subsidiary designated by the applicable Baxter Party to the extent permitted by applicable Law) on the applicable Local Closing Date in accordance with payment instructions to be
provided in writing by the applicable Baxter Party. The purchase price, if required, shall be paid in the local currency of the jurisdiction in which the applicable Baxter Local Entity selling the Assets and the Liabilities of the Deferred Baxalta
Local Business (or the equity interests of the Transferring Entity) has its principal place of business (“Local Currency”), or such other 

  
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currency as elected by the applicable Baxter Party if so permitted by applicable Law, by converting the applicable amount of Local Currency using (i) the Exchange Rate if the Parties
mutually agree upon the purchase price or (ii) the corresponding exchange rate used by the Valuation Firm if the purchase price is determined by the Valuation Firm. 

Section 3.03 Transfer to Distributor. 

(a) If a Baxalta Party initiates a Local Closing by electing to exercise its right to appoint a distributor (which may include a Baxter Local
Entity or other Baxter Subsidiary if such entity reaches a separate agreement with a Baxalta Party to be appointed as distributor) to operate the Deferred Local Baxalta Business, at such Local Closing, the Baxter Local Entity holding legal title to
the Assets and Liabilities of the applicable Deferred Baxalta Local Business shall sell, transfer, convey and deliver to (i) the distributor, if the distributor is not a Baxter Local Entity or other Baxter Subsidiary or (ii) unless
otherwise agreed by the Parties, a Baxalta Party or Baxalta Local Entity if the distributor is a Baxter Local Entity or other Baxter Subsidiary, and the applicable distributor or Baxalta Party or Baxalta Local Entity shall purchase and accept
delivery of, all such Assets and the applicable distributor or Baxalta Party or Baxalta Local Entity shall accept, assume and agree faithfully to perform, discharge and fulfill all such Liabilities in exchange for a purchase price, if required,
equal to the fair market value of such Deferred Local Baxalta Business as of the Local Closing Date, or, to the extent that not all of the Assets and Liabilities of the Deferred Local Baxalta Business are to be acquired by the distributor or a
Baxalta Party or Baxalta Local Entity, the fair market value of the applicable Assets and Liabilities as of the Local Closing Date. If any Third Party distributor requires that the applicable Baxter Local Entity indemnify such distributor in
connection with the purchase of the applicable Assets and the assumption of the applicable Liabilities of the Deferred Local Baxalta Business, then the applicable Baxalta Party shall indemnify, hold harmless and otherwise guarantee without
limitation the applicable Baxter Local Entity for any actions or claims brought against such Baxter Local Entity by the distributor pursuant to such indemnification, provided, however, that the applicable Baxter Local Entity shall not
provide any indemnification to any distributor without the prior written consent of a Baxalta Party. 
 (b) The purchase price shall be paid
to the Baxter Local Entity (or a Baxter Party or such other Baxter Subsidiary designated by the applicable Baxter Party to the extent permitted by applicable Law) by or on behalf of (i) a Third Party distributor or (ii) a Baxalta Party or
Baxalta Local Entity (if the distributor is a Baxter Local Entity or other Baxter Subsidiary) on the applicable Local Closing Date in accordance with payment instructions to be provided in writing by the applicable Baxter Party. The purchase price
shall be paid at the election of the applicable Baxter Party by or on behalf of the distributor or the Baxalta Party or Baxalta Local Entity in the Local Currency, or such other currency as elected by the applicable Baxter Party if so permitted by
applicable Law, by converting the applicable amount to Local Currency using (1) the Exchange Rate if the Parties mutually agree upon the purchase price or (2) the corresponding exchange rate used by the Valuation Firm if the purchase price
is determined by the Valuation Firm. 
 (c) To the extent that not all of the Assets and Liabilities of the Deferred Local Baxalta Business
of a Baxter Local Entity are acquired by the distributor or a Baxalta Party or Baxalta Local Entity in connection with a Local Closing pursuant to Section 3.03(a) and 

  
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are not otherwise acquired and assumed by a Baxalta Party or a Baxalta Local Entity prior to the Termination Date, the applicable Baxter Party shall proceed to use commercially reasonable efforts
in accordance with Section 3.04 to (i) sell to a Third Party the remaining Assets and Liabilities of the Deferred Local Baxalta Business or (ii) wind-down and liquidate all of the remaining Assets and pay (subject to
Section 3.04(d)) all of the remaining Liabilities of such Deferred Baxalta Local Business which are not acquired or assumed (as applicable). 

Section 3.04 Sale or Wind-Down. 

(a) If, before the date that is ninety (90) days prior to the Termination Date, the Baxalta Parties initiate a Local Closing and request
pursuant to Section 3.01(c) that the applicable Baxter Local Entity sell to a Third Party one or more of the Assets and Liabilities of a Deferred Baxalta Local Business or wind-down a Deferred Baxalta Local Business, then the following
shall apply: 
 (i) the applicable Baxter Local Entity shall use commercially reasonable efforts in order to sell to a Third
Party one or more of the Assets and Liabilities of the applicable Deferred Baxalta Local Business or wind-down the applicable Deferred Baxalta Local Business and liquidate all of the remaining Assets and pay (subject to Section 3.04(d))
all of the remaining Baxalta Liabilities of such applicable Deferred Baxalta Local Business; and 
 (ii) the applicable
Baxalta Party shall use commercially reasonable efforts, and shall cooperate in good faith, to assist the applicable Baxter Local Entity with such sale or wind-down for the applicable Deferred Baxalta Local Business. 

(b) If a Local Closing has not taken place pursuant to Section 3.02, Section 3.03 or Section 3.04(a) for
any Baxter Local Entity on or before the Termination Date, or if the Baxalta Parties have not initiated a Local Closing for any Baxter Local Entity on or before the date that is ninety (90) days prior to the Termination Date in accordance with
Section 3.01, then the Baxter Parties may deliver to the Baxalta Parties a Notice setting forth: (i) the name of the Baxter Local Entity or Baxter Local Entities holding any remaining Deferred Baxalta Local Business; (ii) the
estimated fair market value of each such remaining Deferred Baxalta Local Business; and (iii) the nature of all Assets and Liabilities of each such remaining Deferred Baxalta Local Business. 

(c) If the Baxalta Parties have not delivered the Baxter Parties a Notice, within ten (10) days of receiving the Notice from the Baxter
Parties pursuant to Section 3.04(b), that one or more of the Baxalta Parties desires to acquire the Assets and the Liabilities of each such remaining Deferred Baxalta Local Business in accordance with Section 3.02, then the
following shall apply: 
 (i) the applicable Baxter Local Entity shall proceed to use commercially reasonable efforts in
order to sell to a Third Party one or more of the Assets and Liabilities of each applicable Deferred Baxalta Local Business or wind-down each Deferred Baxalta Local Business and liquidate all of the remaining Assets and pay (subject to
Section 3.04(d)) all of the remaining Baxalta Liabilities of each such Deferred Baxalta Local Business; 

  
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 (ii) the applicable Baxalta Party shall use commercially reasonable efforts, and
shall cooperate in good faith, to assist the applicable Baxter Local Entity with such sale or wind-down for each applicable Deferred Baxalta Local Business; 

(iii) except as set forth in Section 3.04(c)(i), the Baxter Parties and the Baxter Local Entities shall not be
required to incur any Liability with respect to the Assets and Liabilities of each remaining Deferred Baxalta Local Business; and 

(iv) until the sale, wind-down or liquidation of the remaining Assets or, as applicable, the Deferred Baxalta Local Businesses
for which no Local Closing has occurred, the Aggregate Net Income Amount (and, accordingly the Swiss Aggregate Net Income Amount, the Dutch Aggregate Net Income Amount or the US Aggregate Net Income Amount, as applicable) shall continue to be
calculated and satisfied monthly in the same manner as was required hereunder prior to the Termination Date. 
 (d) In the event of any
sale, wind-down or liquidation of the Assets of any Deferred Baxalta Local Business pursuant to this Agreement that results in proceeds or Assets (i) in excess of the sum of (1) the cost of such sale, wind-down or liquidation and
(2) the Baxalta Liabilities of each such Deferred Baxalta Local Business, the applicable Baxter Party shall pay such excess to a Baxalta Party to the extent it is able to remit outside of its jurisdiction of incorporation all or a part of such
amount reasonably proximate to the time of completing such sale, wind-down or liquidation, and (ii) that are insufficient to satisfy the sum of (1) the cost of such sale, wind-down or liquidation and (2) the remaining Baxalta
Liabilities of each such Deferred Baxalta Local Business, the Baxalta Parties shall promptly upon request by the Baxter Parties satisfy or cause a Baxalta Local Entity to satisfy the unpaid cost of such sale, wind-down or liquidation and such
remaining Baxalta Liabilities (or reimburse or indemnify the Baxter Party or the applicable Baxter Local Entity elected by the Baxter Parties in respect of such cost and remaining Baxalta Liabilities). 

Section 3.05 Local Closing Purchase Price. 

(a) No later than sixty days (60) days prior to the anticipated date of a Local Closing, the Parties shall determine the fair market value
for the Deferred Baxalta Local Business held by the applicable Baxter Local Entity or, to the extent that not all of the Assets and Liabilities of the Deferred Local Baxalta Business are to be acquired by the distributor with respect to a Local
Closing pursuant to Section 3.03(a), the fair market value of the applicable Assets and Liabilities. If the Parties are unable to mutually agree upon such fair market value or mutually agree that such fair market value should be
determined by an independent accounting or valuation firm, then no later than forty-five (45) days prior to the anticipated date of a Local Closing, the Parties shall engage a mutually agreeable independent accounting or valuation firm of
recognized national standing (or such other firm as agreed by the Parties) to determine the fair market value for the Deferred Baxalta Local Business held by the applicable Baxter Local Entity (the “Valuation Firm”). The terms of
the appointment and engagement of the Valuation Firm shall be as mutually agreed upon between the Baxter Parties and the Baxalta Parties. If the 

  
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Baxter Parties and the Baxalta Parties are unable to jointly select or mutually agree upon the appointment and engagement terms of the Valuation Firm, the Baxalta Parties shall select, appoint
and engage the Valuation Firm. No report of the Valuation Firm shall be subject to dispute by the Parties except in the case of manifest error. 

(b) If, pursuant to Section 3.05(a), the Baxalta Parties select, appoint and engage the Valuation Firm, then no later than fifteen
(15) days prior to the Local Closing Date with respect to a Local Closing pursuant to Section 3.02(a) or Section 3.03(a), the Baxalta Parties shall deliver to the Baxter Parties (and the distributor with respect to a
Local Closing pursuant to Section 3.03(a)) a report prepared by the Valuation Firm setting forth the fair market value in U.S. dollars and the applicable Local Currency for the applicable Deferred Baxalta Local Business or, to the extent
that not all of the Assets and Liabilities of the Deferred Local Baxalta Business are to be acquired by the distributor with respect to a Local Closing pursuant to Section 3.03(a), the fair market value of the applicable Assets and
Liabilities. 
 (c) In connection with the Local Closing involving the purchase of the equity interests of each of Baxalta China, Baxalta
India and Baxalta Malaysia and, if applicable, the loan receivable Asset of Baxter Swiss in connection with a Purchase Price Loan, the amount equal to the purchase price payable pursuant to Section 3.02(b) by Baxalta Swiss to Baxter
Swiss for each such Local Closing shall be deemed satisfied in full by Baxter Swiss reducing the outstanding principal and accrued interest payable by Baxter Swiss to Baxalta Swiss pursuant to a multicurrency revolving credit agreement dated
March 27, 2014, from Baxalta Swiss to Baxter Swiss and the Parties agree that if the amount of the purchase price payable pursuant to Section 3.02(b) for any or all of such Local Closings exceeds or is less than the outstanding
principal and accrued interest under such multicurrency revolving credit agreement, then no additional amounts shall be payable by Baxalta Swiss for such excess, and no amount shall be payable by Baxter Swiss for such shortfall. 

(d) In connection with the Local Closing involving the purchase of (i) the equity interests of Baxalta Brazil and (ii) the
applicable Assets and the assumption of the applicable Liabilities of any other Dutch Local Entity, whether by directly acquiring such Assets and Liabilities or as a result of acquiring from a Baxter Local Entity the equity interests of a
Transferring Entity in the Dutch Group, on the Local Closing Date for such Local Closing, Baxter Netherlands shall remit to Baxalta Netherlands an amount equal to the purchase price paid by Baxalta Netherlands to Baxter Netherlands for such Local
Closing pursuant to Section 3.02(b). The amount payable by Baxalta Netherlands to Baxter Netherlands pursuant to Section 3.02(b) may be set off against any amount payable by Baxter Netherlands to Baxalta Netherlands pursuant
to this Section 3.05(d). 
 Section 3.06 Taxes. 

(a) Subject to Section 3.06(b) and Section 3.06(c), any Income Taxes incurred by a Baxter Local Entity attributable to,
resulting from, or arising out of, any gain attributable to the transfer of the Deferred Baxalta Local Business at the Local Closing shall be borne by the applicable Baxter Local Entity. 

  
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 (b) If a Tax Authority challenges the purchase price for any Local Closing and, as a result of a
subsequent Final Determination related thereto, additional Income Taxes are incurred by a Baxter Local Entity, the Baxter Parties shall provide the Baxalta Parties with Notice of the amount of such additional Income Taxes, together with any
interest, fines, additions to Tax, penalties or additional amounts imposed by a Taxing Authority relating thereto (“Additional Income Taxes”), together with reasonably supporting documentary evidence thereof. Within thirty
(30) days of receipt of such Notice, a Baxalta Party or a Baxalta Local Entity shall reimburse the Baxter Local Entity for the Additional Taxes; provided, however, that neither the Baxalta Parties nor any Baxalta Local Entity
shall have any obligation to pay any additional purchase price as a result of such challenge and Final Determination. The Baxter Parties and the applicable Baxter Local Entity shall use commercially reasonable efforts to minimize any Additional
Income Taxes. 
 (c) Upon the written request of the Baxalta Parties, the Baxter Parties shall use commercially reasonable efforts to
(i) prior to the applicable Local Closing for the transfer of the Assets and the Liabilities of the Deferred Baxalta Local Business or the equity interests of a Transferring Entity in the Dutch Group, transfer such Assets and Liabilities or
equity interests (the “Restructuring”) in a manner that results in Baxalta Netherlands being obligated, or permitted to satisfy the obligation, to pay any required purchase price in connection with such Local Closing and
(ii) reduce any Income Taxes attributable to, resulting from, or arising out of the Restructuring (“Restructuring Income Taxes”). Within thirty (30) days of any payment by Baxter for any Restructuring Income Taxes incurred
in connection with the Restructuring (but without modifying the responsibility for Income Taxes in connection with the subsequent Local Closing as set forth in Section 3.06(a), a Baxalta Party shall reimburse the Baxter Local Entities
for such Restructuring Income Taxes to the extent Baxalta has consented in advance to the Restructuring and the estimated amount of the Restructuring Incomes Taxes to be incurred in connection therewith. 

(d) Any Transfer Taxes together with any notarial and registry fees and recording costs imposed by any Tax Authority or other Governmental
Authority arising or attributable to the transfer of the Deferred Baxalta Local Business at the Local Closing shall be borne by the party primarily responsible under applicable Law for such Transfer Taxes; provided, however, that the
other party shall pay and be solely responsible for all Transfer Taxes that are recoupable by such party. To the extent that one party claims any exemptions from any Transfer Taxes, such party shall provide to the other party the appropriate
exemption certificates or any other documentation that evidences such exemption. The Baxter Local Entity and the Baxalta Local Entity shall cooperate in timely making and filing all Tax Returns that may be required to comply with applicable Law
relating to the Transfer Taxes. 
 ARTICLE IV  

TERM 

Section 4.01 Term. This Agreement shall become effective at the Effective Time and shall remain in effect for a term
expiring on the earlier of (i) the date of the consummation of the last Local Closing for the applicable Baxter Local Entity and (ii) the Termination Date. 

  
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 Section 4.02 Survival. The provisions of
Section 2.06, Section 2.07, Section 2.08, Section 3.03(c), Section 3.04, Section 3.06, this Section 4.02, Article V and Article VI of this Agreement,
any outstanding payment obligations under Article II and any outstanding payment and wind-down obligations under Article III shall survive the termination of this Agreement and shall remain in full force and effect thereafter. 

ARTICLE V  
 DISPUTE
RESOLUTION 
 Section 5.01 Dispute Resolution. Other than as set forth in Section 2.06, in
the event of any dispute, controversy or claim arising out of or relating to the transactions contemplated by this Agreement, or the validity, interpretation, breach or termination of any provision of this Agreement, including claims seeking redress
or asserting rights under any Law (each, a “Dispute”), such Dispute shall be resolved: (a) first, by negotiation by the applicable local or functional leads (if applicable to any Dispute), and then (if there remains a Dispute)
by discussions between the designated leaders of Baxter’s and Baxalta’s respective Project Management Offices related to the Separation, followed by (if there remains a Dispute) negotiation by and among the members of the Transition
Committee, with the possibility of mediation as provided in Section 5.02; and (b) then, if negotiation and mediation fail, by binding arbitration as provided in Section 5.03. Each Party agrees on behalf of itself and
each of its Subsidiaries that the procedures set forth in this Article V shall be the exclusive means for resolution of any Dispute. The initiation of mediation or arbitration hereunder will toll the applicable statute of limitations for the
duration of any such proceedings. 
 Section 5.02 Negotiation and Mediation. If a Party serves written notice of a
Dispute upon another Party (a “Dispute Notice”), the Parties will first attempt to resolve such Dispute by direct discussions and negotiation (including as set forth in Section 5.01 above). If the Parties to the Dispute
agree, the Parties may also attempt to resolve the Dispute by a mediation administered by the International Institute for Conflict Prevention & Resolution (“CPR”) under its Mediation Procedure. 

Section 5.03 Arbitration. 

(a) If a Dispute is not resolved within forty-five (45) days (or later if mutually agreed by the Parties) after the service of a Dispute
Notice, each Party shall have the right to commence arbitration. The arbitration shall be administered by the CPR pursuant to its Arbitration Rules and Procedures. References herein to any arbitration rules or procedures mean such rules or
procedures as amended from time to time, including any successor rules or procedures, and references herein to the CPR include any successor thereto. The arbitration shall be before three (3) arbitrators. The Baxter Parties and the Baxalta
Parties shall each designate one arbitrator in accordance with the “screened” appointment procedure provided in Rule 5.4 of the CPR Rules. The two party-appointed arbitrators will select the third, who will serve as the panel’s chair
or president. This arbitration provision, and the arbitration itself, shall be governed by the laws of Delaware and the Federal Arbitration Act, 9 U.S.C. §§ 1-16. 

  
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 (b) Consistent with the expedited nature of arbitration, each Party will, upon the written
request of the other Parties, promptly provide the other Parties with copies of documents on which the producing Party may rely in support of or in opposition to any claim or defense. At the request of a Party, the arbitrators shall have the
discretion to order examination by deposition of witnesses to the extent the arbitrator deems such additional discovery relevant and appropriate. Depositions shall be limited to a maximum of five (5) for each of the Baxter Parties and the
Baxalta Parties and shall be held within forty-five (45) days of the grant of a request. Additional depositions may be scheduled only with the permission of the arbitrators, and for good cause shown. Each deposition shall be limited to a
maximum of one day’s duration. All objections are reserved for the arbitration hearing except for objections based on privilege and proprietary or confidential information. The Parties shall not utilize any other discovery mechanisms, including
international processes and U.S. federal statutes, to obtain additional evidence for use in the arbitration. Any Dispute regarding discovery, or the relevance or scope thereof, shall be determined by the arbitrators, which determination shall be
conclusive. All discovery shall be completed within sixty (60) days following the appointment of the arbitrators. All costs and fees relating to the retrieval, review and production of electronic discovery shall be paid by the Party requesting
such discovery. 
 (c) The panel of arbitrators shall have no power to award non-monetary or equitable relief of any sort. The arbitrators
shall have no power or authority, under the CPR Rules for Non-Administered Arbitration or otherwise, to relieve the Parties from their agreement hereunder to arbitrate or otherwise to amend or disregard any provision of this Agreement. The award of
the arbitrators shall be final, binding and the sole and exclusive remedy to the Parties. Each Party may seek to confirm and enforce any final award entered in arbitration, in any court of competent jurisdiction. 

(d) If an arbitral award does not impose an injunction on the losing Party or contain a money damages award in excess of $25,000,000, then the
arbitral award shall not be appealable and shall only be subject to such challenges as would otherwise be permissible under the Federal Arbitration Act, 9 U.S.C. §§ 1-16. In the event that the arbitration does result in an arbitral award,
which imposes an injunction or a monetary award in excess of $25,000,000, such award may be appealed to a tribunal of appellate arbitrators via the CPR Arbitration Appeal Procedure. 

(e) Except as may be required by Law, neither a Party nor an arbitrator may disclose the existence, content, or results of any arbitration
hereunder without the prior written consent of all Parties. 
 Section 5.04 Interim Relief. At any time during the
resolution of a Dispute between the Parties, each Party has the right to apply to any court of competent jurisdiction for interim relief, including pre-arbitration attachments or injunctions, necessary to preserve the Parties’ rights or to
maintain the Parties’ relative positions until such time as the arbitration award is rendered or the Dispute is otherwise resolved. 

Section 5.05 Remedies. The arbitrators shall have no authority or power to limit, expand, alter, amend, modify, revoke or
suspend any condition or provision of this Agreement nor any right or power to award punitive, exemplary or treble damages (or other multiple damages that are not actual damages). 

  
 22 

 Section 5.06 Expenses. Each Party shall bear its own costs, expenses and
attorneys’ fees in pursuit and resolution of any Dispute; provided, however, that, in the event of any arbitration pursuant to Section 5.03, the non-prevailing Party shall bear all costs, expenses and
attorneys’ fees incurred in connection with such arbitration (including the fees of any arbitrator). 
 Section 5.07
Continuation of Commitments. Unless otherwise agreed in writing, the Parties shall, and shall cause their respective Subsidiaries to, continue to honor all commitments under this Agreement to the extent required by this Agreement during
the course of dispute resolution pursuant to the provisions of this Article V with respect to all matters related to such Dispute. 

ARTICLE VI 

MISCELLANEOUS 

Section 6.01 Incorporation by Reference. Article IX (other than Section 9.02) of the Separation and
Distribution Agreement is hereby incorporated into this Agreement by reference and made applicable to the Parties hereto in such manner as the context requires in order to give effect to such provisions within this Agreement. 

Section 6.02 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 6.03 Notice. Notwithstanding the foregoing, any Notice required hereunder shall be given, in addition to the
Notices required under Section 9.05 of the Separation and Distribution Agreement, to a Baxter Party and a Baxalta Party at the following addresses. Each Party shall be permitted to change the addresses set forth below in the same manner as the
parties to the Separation and Distribution Agreement are permitted to notify the other of a change of address under the Separation and Distribution Agreement. 

If to a Baxter Party: 
 c/o
Baxter International Inc. 
 One Baxter Parkway 

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

  
 23 

 If to a Baxalta Party: 

c/o Baxalta Incorporated 
 One
Baxter Parkway 
 Deerfield, Illinois 60015 

Attn: General Counsel 
 E-mail:
general_counsel@baxalta.com 

  
 24 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly
authorized representatives. 
  

									
	BAXTER WORLD TRADE CORPORATION				BAXALTA WORLD TRADE LLC
					
	By:		 /s/ James K. Saccaro
				By:		 /s/ Robert J. Hombach

	Name:		James K. Saccaro				Name:		Robert J. Hombach
	Title:		Authorized Representative				Title:		Corporate Vice President and Chief Financial Officer
			
	BAXTER HEALTHCARE SA				BAXALTA GMBH
					
	By:		 /s/ Gerald Heritier
				By:		 /s/ Rebecca Binggeli

	Name:		Gerald Heritier				Name:		 Rebecca Binggeli

	Title:		VP Human Resources				Title:		 Director of EMEA and APAC Tax and Senior Tax Counsel

					
	By:		 /s/ Bernhard Kaumanns
				By:		 /s/ Valerie Gateaux

	Name:		Bernhard Kaumanns				Name:		 Valerie Gateaux

	Title:		Medical Director EMEA				Title:		 Finance Director

			
	BAXTER HOLDING B.V.				BAXALTA HOLDING B.V.
					
	By:		 /s/ Deborah Brady
				By:		 /s/ Robertus de With

	Name:		 Deborah Brady
				Name:		 Robertus de With

	Title:		 Managing Director
				Title:		Managing Director

 [Signature Page to International Commercial Operations Agreement] 

  
 25 

 Schedule 1.01 

Baxter Local Entities 
  

					
	 Baxter Local Entity Company Name
	  	Jurisdiction	 
	 Baxter Argentina S.A.
	  	 	Argentina	  
	 Baxter Hospitalar Ltda.
	  	 	Brazil	  
	 Baxter Healthcare Trading (Shanghai) Co., Ltd
	  	 	China	  
	 Baxter Czech spol s.r.o
	  	 	Czech Republic	  
	 Baxter (Hellas) EPE
	  	 	Greece	  
	 Baxter Healthcare Limited
	  	 	Hong Kong	  
	 Baxter (India) Private Limited

Baxter Healthcare (Malaysia) Sdn Bhd

Baxter Holding B.V.
	  	 
  
  
	India
 Malaysia

The Netherlands
	  
   

  

	 Baxter CIS B.V.

Baxter Polska sp.z.o.o.

Baxter ZAO
	  	 
  
  
	The Netherlands
 Poland

Russia
	  
   

  

	 Baxter AG
	  	 	Switzerland	  
	 Baxter Healthcare SA

Baxter Healthcare Limited
	  	 
  
	Switzerland
 Taiwan
	  
   

	 Baxter Healthcare (Thailand) Company Limited
	  	 	Thailand	  
	 Eczacibasi-Baxter Hastane Urunleri Sanayi ve Tricaret A.S.

Baxter World Trade Corporation
	  	 
  
	Turkey
 United States
	  
   

 Each branch or representative office of a Baxter Local Entity to the extent that such branch or representative office has
Assets or Liabilities related to the Deferred Baxalta Local Business. 
 Any other Baxter Subsidiary not listed on this Schedule 1.01 as determined
by, and agreed between, the Baxter Parties and the Baxalta Parties, as being a Baxter Local Entity shall be treated as a Baxter Local Entity including any Baxter Subsidiaries in the following jurisdictions: Algeria, Bulgaria, Chile, Costa Rica,
Ecuador, Estonia, Guatemala, Hungary, Latvia, Lithuania, Panama, Peru, Philippines, Romania, Slovakia, Slovenia, Tunisia and Venezuela. 

 Schedule 2.05(b) 

Accounting Principles 
  

	1.	Defined Terms. 

 “Accounts Payable” means the aggregate value of all
trade accounts payable resulting from sales of Baxalta Products or services by a Baxter Local Entity. 
 “Accounts
Receivable” means the aggregate value of all accounts, notes and other receivables (net of any provision for doubtful debts) resulting from sales of Baxalta Products or services by a Baxter Local Entity, whether current or noncurrent, and
any interest on such receivables.  
 “Aggregate Modified Net Working Capital Adjustment Amount” means, for each
calendar quarter during the International Operations Transition Period, the sum of the Modified Net Working Capital Adjustment Amount for each Baxter Local Entity that is selling Baxalta Products (other than Eczacibasi-Baxter Hastane Urunleri Sanayi
ve Tricaret A.S.), which such amount may be a negative number. 
 “Aggregate Net Income Amount” means (a) the sum of
all Net Income Amounts in respect of each Deferred Baxalta Local Business for which a Local Closing has not occurred and for which such Net Income Amounts have not been included in the Aggregate Net Income Amount for a prior calendar
month; plus (b) the sum of all Net Income Amounts in respect of each Deferred Baxalta Local Business for which a Local Closing has occurred but such Net Income Amounts have not been included in the Aggregate Net Income Amount
for a prior calendar month; provided, however, that the Aggregate Net Income Amount calculated for the last calendar month of each calendar quarter during the International Operations Transition Period and the last calendar month of
the International Operations Transition Period shall be increased by the absolute value of the Aggregate Modified Net Working Capital Adjustment Amount (if a negative number) or decreased by the Aggregate Modified Net Working Capital Adjustment
Amount (if a positive number). 
 “Dutch Aggregate Net Income Amount” means the Aggregate Net Income Amount calculated
solely for the Dutch Group. 
 “Inventory” means all inventories, wherever located, of Baxalta Products. 

“Modified Net Working Capital” means, for each Baxter Local Entity that is selling Baxalta Products, (a) the sum of the
Accounts Receivable and the Inventory of such Baxter Local Entity minus (b) the Accounts Payable of such Baxter Local Entity. 

“Modified Net Working Capital Adjustment Amount” means, the sum of (a) for each Baxter Local Entity that is selling
Baxalta Products other than the NWC Closing Baxter Local Entities, an amount equal to (1) the Modified Net Working Capital for such Baxter Local Entity as of the close of business on the last day of a calendar quarter minus (2) the
Modified Net 

 
Working Capital for such Baxter Local Entity as of the open of business on the first day of a calendar quarter and (b) for each NWC Closed Baxter Local Entity, an amount equal to
(1) the Modified Net Working Capital for such NWC Closed Baxter Local Entity as of the close of business on the date of the Local Closing for such NWC Closed Baxter Local Entity minus (2) the Modified Net Working Capital for such
NWC Closed Baxter Local Entity as of the open of business on the first day of a calendar quarter, which such amount may be a negative number and shall be converted from Local Currency to Euros or Dollars using the Exchange Rate in effect as of the
end of the applicable calendar quarter.  
 “Net Income Amount” means, for each calendar month during the
International Operations Transition Period, for each Baxter Local Entity: 
 the sum of: 

 

	 	(a)	(1)       the aggregate amount of net sales of Baxalta Products; and 

  

	 	(2)	the aggregate amount of any other revenues directly attributable to the Deferred Baxalta Local Business, including intercompany adjustments as part of the Profit Determination; 

minus the sum of: 
  

	 	(b)	(1)       the aggregate amount of the standard cost of goods sold of Baxalta Products; 

  

	 	(2)	one hundred five percent (105%) of the aggregate amount of other cost of sales directly attributable to the Deferred Baxalta Local Business; 

 

	 	(3)	fifteen three-quarters percent (15.75%) of the aggregate amount of allocated other cost of sales of such Baxter Local Entity; 

  

	 	(4)	one hundred five percent (105%) of the aggregate amount of selling, general and administrative expenses directly attributable to the Deferred Baxalta Local Business; 

 

	 	(5)	fifteen three-quarters percent (15.75%) of the aggregate amount of allocated selling, general and administrative expenses of such Baxter Local Entity; 

 

	 	(6)	the aggregate amount of any other expenses directly attributable to the Deferred Baxalta Local Business, including intercompany adjustments as part of the Profit Determination; and 

 

	 	(7)	the Accrued Taxes; 

 provided; however; that for (x) any Baxter Local Entity that is not
selling Baxalta Products, but is instead marketing and promoting Baxalta Products for another Baxter Local Entity pursuant to the terms of a services agreement and (y) Baxter Polska sp.z.o.o., the calculation of Net Income Amount shall include
the items set forth in (b)(2) - (5) above for such Baxter Local Entity, but shall not include the items in (a)(2) and (b)(6) above in connection with the services fee paid pursuant to the terms of the applicable services agreement for either
the Baxter Local Entity marketing and promoting, or the Baxter Local Entity selling, the Baxalta Products. 

 “NWC Closed Baxter Local Entity” means, for each calendar quarter, a Baxter
Local Entity that is selling Baxalta Products for which a Local Closing has occurred during such quarter but on a date that is neither the first day of such calendar quarter nor the last day of such calendar quarter. 

“Profit Determination” means the agreement between a Baxter Local Entity and Baxalta Swiss, as set forth in the applicable
distribution agreement by and between such entities, in connection with any price adjustments for the purchase of Baxalta Products by the applicable Baxter Local Entity. 

“Swiss Aggregate Net Income Amount” means the Aggregate Net Income Amount calculated solely for the Swiss Group. 

“US Aggregate Net Income Amount” means the Aggregate Net Income Amount calculated solely for the US Group. 

 

	2.	In calculating each amount defined above in this Schedule 2.05(b), the following principles shall apply: 

(a) Each profit and loss statement, balance sheet and Report provided in accordance with Section 2.06(a) shall be
prepared in accordance with the principles set forth in this Schedule 2.05(b). Except to the extent inconsistent with the other principles and requirements set forth in this Schedule 2.05(b), each profit and loss statement,
balance sheet and Report provided in accordance with Section 2.06(a) shall be prepared in accordance with the principles used in the Baxalta Pro Forma Balance Sheet, using GAAP applied on a basis consistent to the extent such
Baxalta Pro Forma Balance Sheet was prepared in accordance with GAAP, and to the extent consistent therewith in accordance with Baxter’s historical accounting policies, procedures and conventions, and in each case with the same level of detail
as used by Baxter in the preparation of Baxter’s monthly financial reporting package and the standard financial reports used by Baxter on the Distribution Date. Such financial statements and Reports shall include amounts specifically
attributable to the Deferred Baxalta Local Business segregated in unique accounts within Baxter’s or the applicable Baxter Local Entity’s financial systems. 

(b) The net income of the Deferred Baxalta Local Business of each Baxter Local Entity shall be converted from Local Currency to Euros or
Dollars using the Exchange Rate in effect as of the end of the period for which net income is being determined. 
 (c) The
(1) Accounts Receivable and Accounts Payable attributable to the Deferred Baxalta Local Business and (2) the Inventory of each Baxter Local Entity reflected in the balance sheet shall be calculated in accordance with the principles used in
the Baxalta Pro Forma Balance Sheet, using GAAP applied on a basis consistent to the extent such Baxalta Pro Forma Balance Sheet was prepared in accordance with GAAP, and to the extent consistent therewith in accordance with Baxter’s historical
accounting policies, procedures and conventions, and in each case with the same level of detail as used by Baxter in the preparation of Baxter’s monthly financial reporting package and the standard financial reports used by Baxter on the
Distribution Date (determined on a country-by-country basis in Local Currency and converted from Local Currency to Euros or Dollars using the Exchange Rate in effect as of the date of such balance sheet). 

 (d) The Net Income Amount of Baxter Czech spol s.r.o and Baxter Polska sp.z.o.o. shall be
calculated without regard to the indirect ownership by Baxalta of a portion of the equity interests in each of Baxter Czech spol s.r.o and Baxter Polska sp.z.o.o. 

(e) The Net Income Amount of Baxter Argentina S.A. and Baxter de Venezuela C.A. shall be excluded from the calculation of the Aggregate Net
Income Amount until such time as each entity is able to remit outside of Argentina and Venezuela, respectively, amounts collected following the Distribution Date directly attributable to its Deferred Baxalta Local Business other than amounts
remitted for payment of Inventory (each, a “Distribution”). Following a Distribution, the Net Income Amount of Baxter Argentina S.A. or Baxter de Venezuela C.A., as applicable, for all calendar months since the date of the last
Distribution shall each be included in the calculation of the next Aggregate Net Income Amount, up to a maximum amount equal to the applicable Distribution. 

(f) The Net Income Amount of Eczacibasi-Baxter Hastane Urunleri Sanayi ve Tricaret A.S. included in the Aggregate Net Income Amount shall
account for the less than one hundred percent (100%) ownership interest held by the applicable Baxter Subsidiary in such entity. If any revenues or expenses directly attributable to the Deferred Baxalta Local Business of Eczacibasi-Baxter
Hastane Urunleri Sanayi ve Tricaret A.S. are not reflected in the profit and loss statement of Eczacibasi-Baxter Hastane Urunleri Sanayi ve Tricaret A.S. and instead are retained or incurred by a Baxter Party or other Baxter Subsidiary and are
reflected in the profit and loss statement of such Baxter Party or other Baxter Subsidiary, then such revenues or expenses directly attributable to the Deferred Baxalta Local Business of Eczacibasi-Baxter Hastane Urunleri Sanayi ve Tricaret A.S.
shall be treated as revenues and expenses of Eczacibasi-Baxter Hastane Urunleri Sanayi ve Tricaret A.S. for purposes of calculating the Net Income Amount of Eczacibasi-Baxter Hastane Urunleri Sanayi ve Tricaret A.S. and the profit and loss statement
of the applicable Baxter Party or other Baxter Subsidiary on which such revenues or expenses are reflected shall be provided by the Baxter Parties pursuant to Section 2.06(a)(i). 

(g) Any expenses incurred by a Baxter Local Entity incurred in connection with the vaccines business of Baxalta shall be included in the
calculation of the Net Income Amount for such Baxalta Local Entity. 
 (h) The portion of the exchange gain or exchange loss incurred by a
Baxter Local Entity that is attributable to the operation of the Deferred Baxalta Local Business shall be taken into account for purposes of calculating the Net Income Amount, Accounts Receivable, Accounts Payable and Inventory. 

(i) In determining the amount of the Net Income Amount of any Deferred Baxalta Local Business, any Taxes accrued but unpaid attributable to
such Deferred Baxalta Local Business (the “Accrued Taxes”) for such period shall be determined using the lower of the applicable statutory rate and the forecasted cash effective rate for the applicable Baxter Local

 
Entity for the then-current Tax year. All Taxes attributable to the operation of each Deferred Baxalta Local Business shall be calculated on a standalone basis. Except as provided below, no
further adjustments shall be made for the difference, if any, between the Accrued Taxes for any Tax year and the actual amount paid with respect to such Taxes for such Tax year attributable to such Deferred Baxalta Local Business determined using
the highest Tax rate of the applicable Baxter Local Entity (and not a rate determined solely for the Deferred Baxalta Local Business) (the “Actual Tax Amount”):

(1) within a reasonable period of time following the filing of the Tax Return by a Baxter Local Entity that includes the
results of the Deferred Baxalta Local Business, in whole or in part, (i) if the Actual Tax Amount with respect to the Deferred Baxalta Local Business is greater than the Accrued Taxes during such Tax year, a Baxalta Party or an applicable
Baxalta Local Entity shall pay a Baxter Party or an applicable Baxter Local Entity the amount of such difference, and (ii) if the Actual Tax Amount with respect to the Deferred Baxalta Local Business is less than the Accrued Taxes during such
Tax year, a Baxter Party or an applicable Baxter Local Entity shall pay a Baxalta Party or an applicable Baxalta Local Entity the amount of such difference; 

(2) if, as a result of a Final Determination, the Actual Tax Amount with respect to the Deferred Baxalta Local Business
included in the applicable Tax Return of a Baxter Entity and used to calculate amounts paid pursuant to (i)(1) above is adjusted (the “Adjusted Actual Tax Amount”), then within thirty (30) days of the applicable Baxter Local
Entity paying Tax or receiving a refund related to such adjustment, either through actual cash refund or payment, or by credit for or against the Baxter Local Entity’s account, (i) if the Adjusted Actual Tax Amount is greater than the
Actual Tax Amount for such Baxter Local Entity for the applicable Tax year, a Baxalta Party or an applicable Baxalta Local Entity shall pay a Baxter Party or the applicable Baxter Local Entity the amount of such difference, and (ii) if the
Adjusted Actual Tax Amount is less than the Actual Tax Amount for such Baxter Local Entity for the applicable Tax year, a Baxter Party or the applicable Baxter Local Entity shall pay a Baxalta Party or an applicable Baxalta Local Entity the amount
of such difference; and 
 (3) all amounts paid by a Baxalta Party or an applicable Baxalta Local Entity or a Baxter Party or
an applicable Baxter Local Entity pursuant to (i)(1) or (i)(2) above shall be paid in Euros or Dollars converted from Local Currency to Euros using the Exchange Rate in effect at the time such payment is made. 

(j) If there is an Unresolved Dispute between the Parties in respect of any amount set forth in the Deferred Baxalta Business Report relating
to the Baxalta Assets or Baxalta Liabilities of a Deferred Baxalta Local Business, the Net Income Amount in respect of such Deferred Baxalta Local Business shall be excluded from the calculation of the Aggregate Net Income Amount (and the Swiss
Aggregate Net Income Amount, the Dutch Aggregate Net Income Amount or the US Aggregate Net Income Amount, as applicable) until such time as the dispute has been resolved in accordance with Section 2.04(b) or Section 2.06(d)
and Section 2.06(e). Upon resolution of the dispute, the Net Income Amount in respect of the Deferred Baxalta Local Business for all calendar months since the Distribution Date shall each be included in the calculation of the next
Aggregate Net Income Amount (and the Swiss Aggregate Net Income Amount, the Dutch Aggregate Net Income Amount or the US Aggregate Net Income Amount, as applicable).EX-10.7

 Exhibit 10.7 

LONG TERM SERVICES AGREEMENT 

BY AND BETWEEN 
 BAXTER
INTERNATIONAL INC. 
 AND 

BAXALTA INCORPORATED 

DATED AS OF JUNE 30, 2015 

 TABLE OF CONTENTS 

 

									
	 	  	 	  	Page	 
		
	ARTICLE I DEFINITIONS 	  	 	1	  
		  	Section 1.01	  	Definitions	  	 	1	  
		
	ARTICLE II SERVICES	  	 	3	  
		  	Section 2.01	  	Services	  	 	3	  
		  	Section 2.02	  	Joinder Agreement	  	 	3	  
		  	Section 2.03	  	Omitted Services; Additional Services	  	 	3	  
		  	Section 2.04	  	Performance of Services	  	 	4	  
		  	Section 2.05	  	Capacity; Increases in Facility-Specific Services	  	 	6	  
		  	Section 2.06	  	Equipment Maintenance; New Equipment; Expansion of Facilities	  	 	7	  
		  	Section 2.07	  	Charges for Services	  	 	10	  
		  	Section 2.08	  	Reimbursement for Out-of-Pocket Expenses	  	 	12	  
		  	Section 2.09	  	Changes to Services	  	 	12	  
		  	Section 2.10	  	Use of Third Parties to Provide Services	  	 	12	  
		
	ARTICLE III OTHER ARRANGEMENTS	  	 	13	  
		  	Section 3.01	  	Use of Premises; Upkeep and Access Thereto	  	 	13	  
		
	ARTICLE IV BILLING; TAXES	  	 	14	  
		  	Section 4.01	  	Procedure	  	 	14	  
		  	Section 4.02	  	Late Payments	  	 	14	  
		  	Section 4.03	  	Taxes	  	 	14	  
		
	ARTICLE V TERM AND TERMINATION	  	 	15	  
		  	Section 5.01	  	Term	  	 	15	  
		  	Section 5.02	  	Early Termination of Services	  	 	16	  
		  	Section 5.03	  	Reduction of Services	  	 	18	  
		  	Section 5.04	  	Effect of Termination	  	 	18	  
		  	Section 5.05	  	Information Transmission	  	 	19	  
		
	ARTICLE VI CONFIDENTIALITY; PROTECTIVE ARRANGEMENTS	  	 	19	  
		  	Section 6.01	  	Confidentiality	  	 	19	  
		
	ARTICLE VII LIMITED LIABILITY; INDEMNIFICATION AND DISPUTE RESOLUTION 	  	 	19	  
		  	Section 7.01	  	Limitations on Liability	  	 	19	  
		  	Section 7.02	  	Obligation to Re-Perform; Liabilities	  	 	21	  
		  	Section 7.03	  	Recipient Release and Indemnity; Waiver of Claims	  	 	21	  
		  	Section 7.04	  	Provider Indemnity	  	 	22	  
		  	Section 7.05	  	Liability for Charges	  	 	22	  
		  	Section 7.06	  	Continued Performance; Specific Performance	  	 	22	  
		  	Section 7.07	  	Indemnification Procedures; Dispute Resolution	  	 	22	  

  
 i 

									
		
	ARTICLE VIII TRANSITION COMMITTEE		 	23	  
			Section 8.01		Establishment		 	23	  
			Section 8.02		General Principles		 	23	  
			Section 8.03		Action		 	23	  
		
	ARTICLE IX MISCELLANEOUS		 	23	  
			Section 9.01		Mutual Cooperation		 	23	  
			Section 9.02		Title to Intellectual Property and Other Property		 	23	  
			Section 9.03		Miscellaneous		 	24	  
			Section 9.04		Assignability; Utilities Transfers		 	25	  
			Section 9.05		Independent Contractors		 	26	  
			Section 9.06		Notices		 	26	  
			Section 9.07		Force Majeure; Priority		 	26	  
			Section 9.08		Further Assurances		 	27	  

  
 ii 

 THIS LONG TERM SERVICES AGREEMENT (this “Agreement”), dated as of June 30,
2015 is by and between BAXTER INTERNATIONAL INC., a Delaware corporation (“Baxter”), and BAXALTA INCORPORATED, a Delaware corporation (“Baxalta”) and each of their respective Subsidiaries (as defined in the
Separation and Distribution Agreement) that execute a Joinder Agreement (as defined herein) in accordance with the terms and conditions of this Agreement. 

R E C I T A L S: 

WHEREAS, the board of directors of Baxter has determined that it is appropriate and advisable to separate Baxter’s biopharmaceuticals
business from its other businesses; 
 WHEREAS, in order to effectuate the foregoing, Baxter and Baxalta have entered into a Separation and
Distribution Agreement, dated as of June 30, 2015 (the “Separation and Distribution Agreement”), which provides for, among other things, the contribution from Baxter to Baxalta of certain assets, the assumption by Baxalta of
certain Liabilities (as defined in the Separation and Distribution Agreement) from Baxter, the distribution by Baxter of Baxalta common stock to Baxter shareholders, and the execution and delivery of this Agreement and certain other agreements in
order to facilitate and provide for the foregoing, in each case subject to the terms and conditions set forth therein; and 
 WHEREAS,
pursuant to the Separation and Distribution Agreement, Baxter and Baxalta and their respective Affiliates 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), as applicable, pursuant to which each Provider (as defined herein) shall provide the Services (as defined herein) to the applicable Recipient (as defined herein) in accordance with the terms of this Agreement and the applicable
Joinder Agreement. 
 NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained in this Agreement, the
Parties (as defined herein) hereby agree as follows: 
 ARTICLE I 

DEFINITIONS 

Section 1.01 Definitions. Reference is made to Section 9.09 of the Separation and Distribution Agreement
regarding the interpretation of certain words and phrases used in this Agreement. In addition, for the purpose of this Agreement, the following terms shall have the meanings set forth in this Section 1.01. Capitalized terms used but not
otherwise defined herein shall have the meanings given to such terms in the Separation and Distribution Agreement (and any capitalized terms used within those defined terms in the Separation and Distribution Agreement shall also have the meanings
given to such terms in the Separation and Distribution Agreement if not otherwise defined in this Agreement). 

“Agreement” means this Long Term Services Agreement, each of the Schedules and Exhibits hereto, and each Joinder Agreement
executed in connection with Section 2.02. 
 “Baxter” has the meaning set forth in the Preamble. 

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

“Capacity Allocation” has the meaning set forth in Section 2.05(a). 

“Charges” has the meaning set forth in Section 2.07(a). 

“Commencement Date” means, with respect to the Services between any Provider and Recipient, the date of this Agreement (or
such other date as set forth in Schedule I or as may be agreed in writing by Provider and Recipient). 
 “Cost-Sharing
Allocation” has the meaning set forth in Section 2.07(b). 
 “Facility-Specific Services” means the
services set forth under the heading “Facility-Specific Service” in Schedule I. 
 “Joinder Agreement” has the
meaning set forth in Section 2.02. 
 “Major Expansion” has the meaning set forth in
Section 2.06(c). 
 “Notice” means any written notice, request, demand or other communication specifically
referencing this Agreement and given in accordance with Section 9.06. 
 “Parties” means the parties to this
Agreement, including all Baxter Subsidiaries and Baxalta Subsidiaries that execute a Joinder Agreement. 
 “Premises” has
the meaning set forth in Section 3.01(a). 
 “Provider” means, with respect to any Service, the Party
identified in Schedule I as the “Provider.” 
 “Provider Indemnified Party” has the meaning set forth in
Section 7.03(a). 
 “Recipient” means, with respect to any Service, the Party identified in Schedule I as the
“Recipient.” 
 “Recipient Indemnified Party” has the meaning set forth in Section 7.04. 

“Separation and Distribution Agreement” has the meaning set forth in the Recitals. 

“Service Baseline Period” has the meaning set forth in Section 2.04(c). 

“Service Period” means, with respect to any Service, the period commencing on the Commencement Date, and ending on the date
the Recipient or Provider terminates the provision of such Service pursuant to Section 5.02. 
 “Services”
means collectively, the Facility-Specific Services and the Task-Specific Services. 

  
 2 

 “Status Quo Maintenance” means any qualification, repair or maintenance to any
equipment or machinery used to perform Facility-Specific Services that is reasonably necessary to preserve existing quantity and quality levels. 

“Status Quo Purchase” means any acquisition or purchase of equipment or machinery used to perform Facility-Specific Services
that is reasonably necessary to preserve existing quality and quantity levels. 
 “Task-Specific Services” means the
services set forth under the heading “Task-Specific Services” in Schedule I. 
 ARTICLE II 

SERVICES 

Section 2.01 Services. During the term of this Agreement, the Provider agrees to provide to the applicable
Recipient(s) the applicable Services set forth in the Schedules to this Agreement, the applicable Joinder Agreement or as otherwise agreed in writing from time to time, in each case pursuant to the terms of this Agreement or such other written
agreement. 
 Section 2.02 Joinder Agreement. Each of Baxter and Baxalta shall cause their respective Subsidiaries
who are to provide or receive Services 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. In the event of an express conflict between the terms of any Joinder Agreement or other such written agreement entered into expressly with respect to this 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). 

Section 2.03 Omitted Services; Additional Services. 

(a) If, during the term of this Agreement, a Party identifies a service that, prior to the Effective Time, the other Party or any of its
Subsidiaries provided to the identifying Party or any of its Subsidiaries at one of the locations identified on Schedule I, but such service was inadvertently omitted from the list of Services on Schedule I or any other Services as may be agreed by
Provider and Recipient in writing from time to time, then the other Party shall (to the extent such services are not generally available from a Third Party supplier) use commercially reasonable efforts to cooperate with the intended Recipient to
agree to terms in order to amend Schedule I or otherwise to agree in writing to add such omitted service as a Service; provided that the other Party shall not be obligated to provide any omitted service if it does not, in its reasonable
judgment, have adequate resources to provide such omitted service or if the provision 

  
 3 

 
of such omitted service would significantly disrupt the operation of its businesses. Any such amendment to Schedule I or other agreement in writing to add Services shall be effective only if
approved in advance by the Transition Committee, and any such modified or amended Schedule I or other such written agreement with respect to such newly added Service shall have effect from the Commencement Date of such Service and shall be deemed
part of this Agreement and subject to the terms and conditions of this Agreement in the same manner as each other Service. 
 (b) If, during
the term of this Agreement, a Party identifies any other service that it desires for the other Party or any of its Subsidiaries to provide at one or more of the locations identified on Schedule I, then the Transition Committee shall consider whether
the other Party shall provide such service to the identifying Party or any of its Subsidiaries under the terms of this Agreement or any other written agreement; provided that nothing shall require the other Party to provide such additional
Service to the identifying Party. If the Transition Committee determines that the other Party shall provide such service to the identifying Party, then the other Party shall use commercially reasonable efforts to cooperate with the intended
Recipient to agree to terms in order to amend Schedule I or to otherwise agree in writing to add such service as a Service; provided that the other Party shall not be obligated to provide any such service if it does not, in its reasonable
judgment, have adequate resources to provide such service or if the provision of such service would significantly disrupt the operation of its businesses. Any such amendment to Schedule I or any other written agreement to add Services shall be
effective only if approved in advance by the Transition Committee, and any such modified or amended Schedule I or other written agreement with respect to such newly added Service shall have effect from the Commencement Date of such Service and shall
be deemed part of this Agreement and subject to the terms and conditions of this Agreement in the same manner as each other Service. 

Section 2.04 Performance of Services. 

(a) Each Provider shall perform and cause its Subsidiaries to perform all Services to be provided by the Provider in a manner that is based on
its past practice and that is substantially similar in nature, quality and timeliness to the analogous services provided by Baxter or its applicable Subsidiaries (if such Parties are the Provider) or Baxalta or its applicable Subsidiaries (if such
Parties are the Provider), as applicable, prior to the Commencement Date (or, to the extent the quality or nature of such Services provided internally improves over the duration of this Agreement, in a manner that is substantially similar in nature
to such nature and quality); provided that, if not so previously provided, then such Services shall be performed in a manner substantially similar to similar services provided to the Provider’s Affiliates or businesses. The Provider
shall cause it and its Subsidiaries to perform its duties and responsibilities hereunder in good faith. 
 (b) Nothing in this Agreement
shall require the Provider to perform or cause to be performed any Service to the extent the manner of such performance would constitute a violation of applicable Laws, the Code of Conduct of such Provider or any of its direct or indirect parent
companies, or any existing contract or agreement with a Third Party. If the Provider is or becomes aware of any such restriction on the Provider, the Provider shall use commercially reasonable efforts to promptly send a Notice to the Recipient of
any such restriction. The Parties each agree to cooperate and use commercially reasonable efforts to obtain any necessary Third Party Consents required under any existing contract or agreement with a

  
 4 

 
Third Party to allow the Provider to perform or cause to be performed any Service; provided, however, that neither Baxter nor Baxalta (nor any of their respective Subsidiaries)
shall be obligated to contribute any capital, pay any consideration, grant any concession or incur any additional Liability to any Third Party other than ordinary and customary fees to a Governmental Authority from whom such Consents are requested,
which shall be payable by the Recipient. If, with respect to a Service, the Parties, despite the use of such commercially reasonable efforts, are unable to obtain a required Third Party Consent or the performance of such Service by the Provider
would continue to constitute a violation of applicable Laws or the applicable Code of Conduct of such Provider or any of its direct or indirect parent companies, the Provider shall use commercially reasonable efforts in good faith to provide such
Services in a manner as closely as possible to the standards described in this Section 2.04 that would apply absent the exception provided for in the first sentence of this Section 2.04(b) (and performance in such manner
shall be deemed to satisfy the performance obligations of the Provider in respect of such Service). 
 (c) Except in the case of any written
agreement between Provider and Recipient that specifies a particular volume or quantity (or a volume or quantity ceiling), the Provider shall not be obligated to perform or to cause to be performed any Task-Specific Service in a volume or quantity
in any calendar year that exceeds the highest volumes or quantities of analogous services provided for the benefit of the Recipient’s business during the 365-day period immediately preceding the Effective Time (the “Service Baseline
Period”), it being understood that capacity with respect to Facility-Specific Services is addressed in Section 2.05. If the Recipient requests that the Provider perform or cause to be performed any Task-Specific Service in a
volume or quantity that exceeds the highest volumes or quantities of analogous services that were provided for the benefit of the Recipient’s business during the Service Baseline Period, then: (i) if such higher volume or quantity results
from fluctuations occurring in the ordinary course of business of the Recipient or the organic growth of the Recipient, the Provider shall use commercially reasonable efforts to provide such requested higher volume or quantity (with additional
Charges permitted only to the extent the cost of providing such additional Services increases); and (ii) if such higher volume or quantity results from any other source, including an acquisition, merger, purchase or other business combination
by the Recipient, the Transition Committee shall determine whether the Provider will be required to provide all or any portion of such requested higher volume or quantity. If the Transition Committee determines that the Provider shall provide all or
any portion of the requested higher volume or quantity then such higher volume or quantity shall be documented in a written agreement signed by the Recipient and the Provider who shall promptly provide a copy of such written agreement to the
Transition Committee. Each such written agreement shall be deemed part of this Agreement as of the date of such agreement and the volume or quantity increases set forth in such written agreement shall be deemed a part of the “Services”
provided under this Agreement, in each case subject to the terms and conditions of this Agreement. 
 (d) (i) No Party shall be required to
perform or to cause to be performed any of the Services for the benefit of any Third Party or any other Person other than the applicable Recipient for such Service, and (ii) EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, EACH PARTY
ACKNOWLEDGES AND AGREES THAT ALL SERVICES ARE PROVIDED ON AN “AS-IS” BASIS, THAT THE RECIPIENT ASSUMES ALL RISK AND LIABILITY ARISING FROM OR RELATING TO ITS USE OF AND RELIANCE UPON THE SERVICES, AND THAT NEITHER THE PROVIDER NOR ANY OF
ITS 

  
 5 

 
AFFILIATES MAKES ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE SERVICES, AND HEREBY DISCLAIMS ANY REPRESENTATION OR WARRANTY OF MERCHANTABILITY, FITNESS FOR ANY
PARTICULAR PURPOSE, NON-INFRINGEMENT OR ANY OTHER WARRANTY WHATSOEVER. 
 (e) Each Party shall be responsible for its own compliance with
any and all Laws applicable to its performance under this Agreement. No Party shall knowingly take any action in violation of any such applicable Law that results in Liability being imposed on any other Person. 

Section 2.05 Capacity; Increases in Facility-Specific Services. 

(a) With respect to any Facility-Specific Service, any known capacity constraints may be agreed in writing from time to time by Provider and
Recipient. Any such capacity allocation between the Provider and the Recipient related to each Facility-Specific Service having capacity limitations, if any (the “Capacity Allocation”) shall be described in such written agreement.

 (b) The Provider and the Recipient agree to use commercially reasonable efforts to cooperate with one another to address any capacity
limitations from time to time. The Provider and the Recipient shall designate local or functional leads at each facility subject to this Agreement to meet not less than annually to discuss the short and long-term capacity and capital plans of each
Party in respect of the Facility-Specific Services (including utilities and critical systems). If the local or functional leads (i) are not able to resolve any issues regarding current or future capacity allocations or constraints (or capital
requirements related thereto) to their reasonable satisfaction or (ii) jointly agree to any matters that would otherwise require the determination of the Transition Committee pursuant to Section 2.06(d), such unresolved items and
matters requiring a determination pursuant to Section 2.06(d) shall be referred to the Transition Committee, with any determination in respect thereof made by the Transition Committee to be binding on the Parties. The Parties agree to
use commercially reasonable efforts to notify the other Party as far in advance as possible of any actions or plans that it knows will create or would be reasonably likely to create capacity or regulatory issues for the other Party in respect of any
Facility-Specific Service. 
 (c) Subject to the provisions of this Section 2.05, the Provider shall not be obligated to perform
any Facility-Specific Service in a volume or quantity that exceeds the Recipient’s then-current Capacity Allocation in respect of such Service. If at any time either Party requires additional capacity and the other Party is not using all of its
then-current Capacity Allocation, the Parties shall mutually cooperate to allow the constrained Party to use such excess capacity on a month-to-month basis until the other Party notifies the constrained Party that it needs all or part of its
remaining Capacity Allocation. The Party using the excess capacity shall incur additional Charges (i) to the extent the cost of providing such additional Services increases and (ii) to pay any additional, required regulatory or permitting
fees and expenses related to its increased capacity. 

  
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 (d) If either the Provider or the Recipient performs or seeks the performance of any
Facility-Specific Service in an increased volume or quantity that will, or is reasonably likely to, exceed the Parties’ capacity for such Service, the Transition Committee shall determine (i) whether it is in the Parties’ best
interest to seek additional capacity, (ii) the costs and fees associated with the same, (iii) the apportionment of such fees and expenses between the Parties and (iv) the post-increase Capacity Allocation between the Parties. 

(e) Each Party shall notify the other Party of any permit or other regulatory changes and any other requirements under applicable Law that
would reasonably be expected to impact business operations, in which case the Transition Committee shall meet to determine the effects thereof and consider in good faith any equitable changes to Capacity Allocation and any cost-sharing issues
related thereto, it being understood and agreed that the costs related to any changes relating only to one Party’s business shall be borne by such Party and changes relating to each Party’s business shall be borne in proportion to the
relative usage of the related Service by each Party (or as otherwise determined in the discretion of the Transition Committee). 

Section 2.06 Equipment Maintenance; New Equipment; Expansion of Facilities. The Provider and the Recipient agree
that the Provider shall cause the equipment and machinery used to perform any Facility-Specific Service to be qualified and maintained consistent with Provider’s practices as in effect from time to time with respect to similar equipment serving
its other business units. Notwithstanding anything to the contrary in this Section 2.06, Section 2.06(a) shall only apply to Status Quo Maintenance and Section 2.06(b) shall only apply to Status Quo Purchases.
Projects, qualifications, repairs, maintenance and purchases of equipment or machinery intended to increase capacity or quality (or otherwise not reasonably necessary to preserve existing quality and quantity levels) shall take place only in
accordance with Section 2.06(c). Notwithstanding anything in this Agreement to the contrary, the Provider shall (i) be solely responsible for any damage to equipment or machinery used in the performance of Facility-Specific Services
caused by the Provider’s failure to maintain the shared equipment or machinery in accordance with applicable manufacturer’s maintenance specifications and any damage caused by the gross negligence or willful misconduct of the Provider or
its employees or agents with respect to the shared equipment or machinery and (ii) cause any damage for which it is responsible pursuant to clause (i) to be repaired or replaced promptly at the Provider’s sole cost and expense. 

(a) The Provider shall provide the Recipient with advance written Notice of any Status Quo Maintenance expected to result in a charge to the
Recipient in excess of US $100,000 as soon as reasonably practicable after becoming aware of such requirement (or if the cost of any such Status Quo Maintenance increases by more than $100,000 in the aggregate from the anticipated cost included in
the prior Notice from the Provider in respect of such Status Quo Maintenance); provided that failure to provide such Notice shall not relieve the Recipient of its obligations related thereto except to the extent it is prejudiced by the
failure to timely deliver such Notice. The Recipient shall reimburse the Provider for its portion (based on its then-current Cost-Sharing Allocation or such other cost allocation as the Parties may agree upon, it being understood and agreed that the
Parties shall cooperate in good faith to determine an equitable cost-sharing arrangement for any such qualification, maintenance or repair for which either Party’s relative benefit would materially exceed such Party’s then-current
Cost-Sharing Allocation) of any out-of-pocket costs and expense incurred by the Provider in connection with 

  
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any Status Quo Maintenance to the extent that such costs and expense are not already included in the Charges related to such Service; provided that the Recipient shall not be required to
pay any such amount in respect of a Status Quo Maintenance for which the Provider is required to provide Notice to the Recipient in accordance with this paragraph if (i) the Recipient has provided Notice of any objection to the expenditure
within 30 days after the Recipient receives Notice from the Provider of such planned Status Quo Maintenance and (ii) either (A) the Provider or the Transition Committee has determined not to proceed with such Status Quo Maintenance (or
only to proceed in a manner approved by the Recipient) or (B) the Recipient has terminated such Service pursuant to Section 5.02(b) within 90 days after receiving Notice from the Provider of such Status Quo Maintenance. Any failure
by the Recipient to provide an objection Notice within the 30-day period following receipt of a Notice of Status Quo Maintenance from the Provider shall be deemed to be agreement by the Recipient to such Status Quo Maintenance (including the
cost-sharing approach proposed by the Provider with respect thereto); provided that the Recipient shall, if requested by the Provider, use commercially reasonable efforts to respond within two business days to the extent that the Provider has
identified that additional delay with respect to any such Status Quo Maintenance would result in material harm to either Party. Any timely objection to a Notice of Status Quo Maintenance shall be promptly referred to the Transition Committee. 

(b) The Provider shall provide the Recipient with advance written Notice of any Status Quo Purchase expected to result in a charge to the
Recipient in excess of US $100,000 as soon as reasonably practicable after becoming aware of such requirement (or if the cost of any such Status Quo Purchase increases by more than $100,000 in the aggregate from the anticipated cost included in the
prior Notice from the Provider in respect of such Status Quo Purchase); provided that failure to provide such Notice shall not relieve the Recipient of its obligations related thereto except to the extent it is prejudiced by the failure to
timely deliver such Notice. The Recipient shall reimburse the Provider for its portion (based on its then-current Cost-Sharing Allocation or such other cost allocation as the Parties may agree upon, it being understood and agreed that the Parties
shall cooperate in good faith to determine an equitable cost-sharing arrangement for any such purchase or acquisition for which either Party’s relative benefit would materially exceed such Party’s then-current Cost-Sharing Allocation) of
any out-of-pocket costs and expense incurred by the Provider in connection with any Status Quo Purchase to the extent that such costs and expense are not already included in the Charges related to such Service; provided that the Recipient
shall not be required to pay any such amount in respect of a Status Quo Purchase for which the Provider is required to provide Notice to the Recipient in accordance with this paragraph if (i) the Recipient has provided Notice of any objection
to the expenditure within 30 days after the Recipient receives Notice from the Provider of such planned Status Quo Purchase and (ii) either (A) the Provider or the Transition Committee has determined not to proceed with such Status Quo
Purchase (or only to proceed in a manner approved by the Recipient) or (B) the Recipient has terminated such Service pursuant to Section 5.02(b) within 90 days after receiving Notice from the Provider of such Status Quo Purchase.
Any failure by the Recipient to provide an objection Notice within the 30-day period following receipt of a Notice of Status Quo Purchase from the Provider shall be deemed to be agreement by the Recipient to such Status Quo Purchase (including the
cost-sharing approach proposed by the Provider with respect thereto); provided that the Recipient shall, if requested by the Provider, use commercially reasonable efforts to respond within two business days to the extent that the Provider has
identified that additional delay with respect to any such Status Quo Purchase would result in material harm to either Party. Any timely objection to a Notice of Status Quo Purchase shall be promptly referred to the Transition Committee. 

  
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 (c) No Party shall be required to pay or share in the costs of any Major Expansion to a facility
except as set forth in this Section 2.06(c). “Major Expansion” shall mean any qualification, purchase, repair, acquisition, purchase, expansion or modification (other than any Status Quo Maintenance or Status Quo
Purchase) of a facility covered by this Agreement or in respect of any equipment or machinery located at such facility that is expected for any particular project or group of projects to result in charges to the Parties exceeding US $100,000.
If any Party desires to effect a Major Expansion to any portion of the facility owned or controlled by such Party, the Party effecting such Major Expansion shall provide notice to the other Party with details (including anticipated cost) of such
Major Expansion. The Party not effecting the Major Expansion shall provide Notice to the other Party within 90 days after its receipt of the Notice of Major Expansion if it desires to participate in such Major Expansion at its then-current
Cost-Sharing Allocation or otherwise. Failure to respond to the initial Notice within 90 days shall be deemed to be a determination by such Party to not participate in the cost of the Major Expansion. If such Party does not notify the Party
initiating the Major Expansion that it intends to participate in the Major Expansion, the Party desiring to effect such Major Expansion may proceed with such Major Expansion at its sole cost and expense so long as such Major Expansion is not
reasonably likely to have a material adverse effect on the operation of the facility, including a reduction in the capacity allocated to the other Party that cannot reasonably be managed by the joint cooperation of the Parties. Each Party shall
reimburse the other Party for its portion (based on its then-current Cost-Sharing Allocation or such other cost allocation as the Parties may agree upon, it being understood and agreed that the Parties shall cooperate in good faith to determine an
equitable cost-sharing arrangement for any such Major Expansion for which either Party’s relative benefit would materially exceed such Party’s then-current Cost-Sharing Allocation) of any out-of-pocket costs and expense incurred in
connection with any Major Expansion that has been agreed upon by the Parties in connection with this Section 2.06(c). Any increased capacity achieved as a result of any Major Expansion shall belong to the Parties in proportion to the
amounts paid by each Party in respect of such Major Expansion. The Party not owning or controlling an applicable facility may discuss any proposed Major Expansion with the other Party from time to time, and may (to the extent any such Major
Expansion is not agreed by the other Party) present such proposal to the Transition Committee, which shall consider any such proposal promptly and in good faith from time to time. 

(d) If the Provider, in its good faith discretion, desires to commence an expansion or modification in a facility covered by this Agreement
that (i) is not reasonably expected to result in charges to the Parties in excess of US $100,000 and (ii) is determined in good faith by the Provider to benefit both the Recipient and the Provider, it may do so and the costs thereof shall
be borne by the Provider and the Recipient in proportion to their then-current Cost-Sharing Allocation for such Facility-Specific Service; provided that, if the Recipient objects to using such Cost-Sharing Allocation, the Transition Committee
will determine in good faith whether another cost-sharing formula should be used in order for the Recipient and the Provider to each pay an amount equal to its relative expected benefit of such expansion or modification. 

(e) For the avoidance of doubt, the machinery and equipment referenced in this Section 2.06 shall include all machinery and
equipment necessary to support the applicable Services (for example, any infrastructure or upstream or downstream equipment necessary to provide the applicable Services). 

  
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 Section 2.07 Charges for Services. 

(a) Each Recipient of Services shall pay to the Provider of such Services a monthly fee for the Services (or category of Services, as
applicable) (each fee constituting a “Charge” and, collectively, “Charges”), which Charges shall be agreed to by Baxter and Baxalta from time to time. During the term of this Agreement, the amount of a Charge for
any Services may adjust to the extent of: (i) any adjustments mutually agreed to by the Baxter and Baxalta; (ii) any Charges applicable to any Services added by agreement of the Parties after the Effective Time; and (iii) in
accordance with Section 2.10, any proportional adjustment in the rates or charges imposed by any Third Party provider that is providing Services. Together with any monthly invoice for Charges, the Provider shall provide the Recipient
with reasonable documentation, including any additional documentation reasonably requested by the Recipient to the extent such documentation is in the Provider’s or its Subsidiaries’ possession or control, to support the calculation of
such Charges. Except as otherwise agreed in writing by Recipient and Provider, the Charges in respect of the Services are intended to be at cost based on the allocation methodology used immediately prior to the Effective Time, and in each case the
Charges will be adjusted annually as part of the applicable facility’s regular annual budgeting process (it being understood and agreed that Recipient shall have the right to review and dispute (within 30 days after receipt of notice of such
adjustment) any such adjustment by the Provider, but the adjustment shall not be delayed during such review or dispute period). As promptly as reasonably practicable (and in any case within 60 days) following the end of each calendar year during the
term of such Service, the Provider shall determine the actual allocation of cost based on the relevant standard for the completed calendar year (or portion thereof) and shall promptly remit any excess payment amount to Recipient or invoice Recipient
for any shortfall, as applicable. Recipient shall have the right to review and dispute (within 30 days after receipt of notice thereof) any such annual true-up amount, and shall promptly pay any amount owed by it within five (5) business days
after such disputed amount becomes final. Provider will provide Recipient with quarterly updates of cost within 30 days after the end of each quarter in order to facilitate Recipient’s planning, and Provider shall reasonably cooperate with
Recipient in its review of any such cost information. 
 (b) With respect to each Facility-Specific Service, the Parties will agree upon an
allocation of certain costs related thereto that will be borne by each of Provider and Recipient (“Cost-Sharing Allocation”). On or prior to July 31 of each year, the Transition Committee will evaluate all Cost-Sharing
Allocations to determine: (i) whether a Party’s usage for such calendar year is expected to vary from such Party’s then-current Cost-Sharing Allocation and, if so, the amount of any equitable adjustment for any Charges that were based
on such Cost-Sharing Allocation (as determined by the Transition Committee) owed to the other Party, if any, and (ii) whether the current year’s Cost-Sharing Allocation for a certain Facility-Specific Service should be modified based on
the Parties’ forecasted usage for such Facility-Specific Service. The Transition Committee shall also have the ability to assess usage, make equitable adjustments and modify the Parties’ Cost-Sharing Allocations from time to time
throughout the year if the assumptions regarding forecasted usage materially change. If the Transition Committee determines in its annual review of the current year’s usage as compared to the Cost-Sharing

  
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Allocation used for such year that an equitable adjustment for Charges based on the Cost-Sharing Allocation for such year should be made, the Party owing any amount related thereto shall promptly
pay such amount to the other Party in accordance with the direction of the Transition Committee. For the avoidance of doubt, any amount paid based on the Cost-Sharing Allocation pursuant to this Agreement other than Charges shall not be subject to
equitable adjustment of the Cost-Sharing Allocation, including any amounts paid pursuant to Section 2.06. 
 (c) With respect to
the actual annual allocation provided by Provider pursuant to Section 2.07(a), Recipient may perform an audit of Provider’s records directly associated with such Charges or costs if notice of such audit is provided during the 30-day
period in which Recipient has the right to review and dispute the actual annual allocation of cost provided by Provider pursuant to Section 2.07(a). Recipient may use independent auditors, who may participate fully in such audit. If an
audit is proposed with respect to information which Provider wishes not to disclose to Recipient (“Restricted Information”), then on the written demand of Provider, the individuals conducting the audit with respect to Restricted
Information will be limited to the independent auditors of Recipient. 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 Recipient) 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 Provider’s operations. Each audit shall begin upon the date specified in a Notice given
by Recipient to Provider a minimum of 30 days prior to the commencement of the audit; provided that, if the date so specified shall conflict with a regulatory 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 Recipient’s
compliance with such timeframe for completion is not feasible due to Provider’s failure to provide timely access to documentation reasonably requested by Recipient 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 2.07(c) 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. Recipient 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 to Provider
hereunder (or an increase of five percent (5%) or more in any amount due to Recipient hereunder), then Provider 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 Provider bears any audit costs hereunder,
such costs shall not be incorporated into the calculations of cost for purposes of determining the amount of any Charges or Cost-Sharing Allocation. In the event of any Transfer to a Prohibited Person, Recipient (including the Prohibited Person and
its Affiliates as Transferee) shall 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 Provider or any of its Affiliates. 

  
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 Section 2.08 Reimbursement for Out-of-Pocket Expenses. Subject
to Section 2.06, the Recipient shall reimburse the Provider for all reasonable out-of-pocket costs and expenses incurred by the Provider or any of its Subsidiaries in connection with providing the Task-Specific Services and for a
percentage thereof equal to its Cost-Sharing Allocation with respect to Facility-Specific Services (including in each case reasonable travel-related expenses and costs incurred with third parties engaged in accordance with this Agreement in
connection with the performance of the Services) to the extent that such costs and expenses are not reflected in the Charges for such Services; provided, however, that any such cost or expense (other than the those of a type addressed in
Section 2.06) that is not consistent with historical practice between the Parties for any Service (including business travel and related expenses) shall require advance approval of the Recipient. Any authorized travel-related expenses
incurred in performing the Services shall be incurred and charged to the Recipient in accordance with the Provider’s then applicable business travel policies. 

Section 2.09 Changes to Services. Except as provided in Section 2.10 and subject to the
performance standards set forth in this Article II, the Provider may make changes from time to time in the manner of performing the Services as required under Section 2.04(a) if the Provider is making similar changes in performing
analogous services for itself and if the Provider furnishes to the Recipient reasonable prior Notice (in content and timing) respecting such changes. No such change shall affect the timeliness or quality of, or the Charges for, the applicable
Service. If any such change by the Provider (other than changes contemplated by Section 2.06) reasonably requires the Recipient to incur incremental costs and expenses in order to continue to receive and utilize the applicable Services
in the same manner as the Recipient was receiving and utilizing such Service prior to such change, the Provider shall be required to reimburse the Recipient for all such reasonable costs and expenses. Upon request, the Recipient shall provide the
Provider with reasonable documentation, including any additional documentation reasonably requested by the Provider to the extent such documentation is in the Recipient’s or its Subsidiaries’ possession or control, to support the
calculation of such incremental costs and expenses. 
 Section 2.10 Use of Third Parties to Provide
Services. The Provider may perform its obligations to provide a Service through agents, subcontractors or independent contractors, provided that the delegation of performance of the applicable Service does not impact the timeliness or
quality of such Service, in accordance with the following: 
 (a) Provider is Currently Using Third Parties as of the Commencement
Date. If, as of the Commencement Date, (i) the Provider is obtaining analogous services for itself from agents, subcontractors or independent contractors, or (ii) the Provider is obtaining services from agents, subcontractors or
independent contractors which services the Provider shall only provide to the Recipient under this Agreement and the Provider shall not otherwise require such analogous services for itself during the term of this Agreement, then the Charges for the
applicable Services the Provider is obtaining from such Third Parties may be adjusted proportionally by the Provider pursuant to Section 2.04(c) to reflect any adjustment in the rates or charges imposed by the Third Party that is
providing such Services; or 

  
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 (b) Provider Elects to Switch to Third Parties After the Commencement Date. 

(i) If, following the Commencement Date, the Provider elects to obtain analogous services for itself from agents,
subcontractors or independent contractors (A) the Provider shall furnish to the Recipient reasonable prior Notice (in content and timing) respecting such use of Third Parties, and (B) the Charges for the applicable Services the Provider is
obtaining from such Third Parties may be adjusted proportionally by the Provider pursuant to Section 2.04(c) to reflect any adjustment in the rates or charges imposed by the Third Party that is providing such Services; and 

(ii) If, however, following the Commencement Date, the Provider is not obtaining analogous services for itself from agents,
subcontractors or independent contractors (A) the Provider shall furnish to the Recipient reasonable prior Notice (in content and timing) respecting such use of Third Parties, and (B) the Charges for the applicable Services the Provider is
providing through such Third Parties appointed following the Commencement Date may not be adjusted by the Provider as a result of any adjustments in the rates or charges imposed by such Third Parties. 

Notwithstanding the foregoing, the Provider shall not be relieved of its obligations under this Agreement by use of such agents,
subcontractors or independent contractors. 
 ARTICLE III 

OTHER ARRANGEMENTS 

Section 3.01 Use of Premises; Upkeep and Access Thereto. 

(a) Each Party shall, and shall cause its Subsidiaries to, allow the other Parties and their respective Subsidiaries and Representatives
reasonable access to the facilities of such Party and its Subsidiaries that is necessary for each Provider and its Subsidiaries to fulfill its obligations under this Agreement. The shared portion of each facility as well as the related common areas
shall be agreed upon in writing from time to time if not otherwise set forth in the applicable Joinder Agreement (the “Premises”). The Premises shall be occupied and used by the Recipient in the same manner in which the Recipient
has used the premises prior to the Effective Time, and in all cases, in accordance with applicable Law, or for such additional uses as may be approved by the Provider, such approval not to be unreasonably withheld, conditioned or delayed,
provided that the Recipient shall not use any shared portion of the Premises (including any cafeteria, break room, reception area, parking area or other space) for gatherings or celebrations if doing so would interfere with the
Provider’s ordinary course of use of such Premises, in any respect. The Provider and the Recipient agree that the Provider shall be responsible for providing the Facility-Specific Services occurring in the Premises as set forth on Schedule I or
otherwise as agreed in writing from time to time. 
 (b) In addition to the foregoing right of access, each Party shall, and shall cause its
Subsidiaries to, afford each other Party, its Subsidiaries and their respective Representatives, upon reasonable advance notice, reasonable access during normal business hours to the facilities, Information, systems, infrastructure and personnel of
such Party and its Subsidiaries as reasonably necessary for the Recipient to verify the adequacy of internal controls over information technology, reporting of financial data and related processes employed in

  
 13 

 
connection with the Services being provided by any Provider, including in connection with verifying compliance with Section 404 of the Sarbanes-Oxley Act of 2002; provided that
(i) such access shall not unreasonably interfere with any of the business or operations of the Provider (or Baxter or Baxalta, to the extent the Provider is a Subsidiary of such Party) or any of their respective Subsidiaries and (ii) in
the event that the Provider determines that providing such access could be commercially detrimental, violate any Law or agreement, or waive any attorney-client privilege, then the Parties shall use commercially reasonable efforts to permit such
access in a manner that avoids any such harm or consequence. 
 (c) Each Party agrees that all of its and its Subsidiaries’ employees
shall, and that it shall use commercially reasonable efforts to cause its Representatives’ employees to, when on the property of any other Party or any of its Subsidiaries, or when given access to any facilities, Information, systems,
infrastructure or personnel of any other Party or any of its Subsidiaries, conform to the policies and procedures of such other Party and any of its Subsidiaries, as applicable, concerning health, safety, conduct and security which are made known to
the Party receiving such access from time to time. 
 ARTICLE IV 

BILLING; TAXES 

Section 4.01 Procedure. Amounts payable pursuant to the terms of this Agreement shall be paid by wire
transfer (or such other method of payment as may be agreed between Baxter and Baxalta) by the Recipient to the Provider on a monthly basis, which amounts shall be due within thirty (30) days after the date of invoice. All amounts due and
payable hereunder shall be invoiced and paid in the local currency of the Provider. 
 Section 4.02 Late
Payments. Charges not paid when due pursuant to this Agreement (and any amounts billed or otherwise invoiced or demanded and properly payable that are not paid within thirty (30) days of the date of such bill, invoice or other
demand) shall accrue interest at a rate per annum equal to 5%, or the maximum legal rate, whichever is lower. 
 Section 4.03
Taxes. 
 (a) Without limiting any provisions of this Agreement, the Recipient shall be responsible for (i) all excise,
sales, use, transfer, stamp, documentary, filing, recordation and other similar Taxes, (ii) any value added, goods and services or similar recoverable indirect Taxes (“VAT”) and (iii) any related interest and penalties
(collectively, “Transfer Taxes”), in each case imposed or assessed as a result of the provision of Services by the Provider; provided that the Recipient shall only be responsible for the percentage thereof equal to its
Cost-Sharing Allocation with respect to Facility-Specific Services. In particular, but without prejudice to the generality of the foregoing, all amounts payable pursuant to this Agreement are exclusive of amounts in respect of VAT. Where any taxable
supply for VAT purposes is made pursuant to this Agreement by the Provider to the Recipient, the Recipient shall either (i) on receipt of a valid VAT invoice from the Provider, pay to the Provider such additional amounts in respect of VAT as
are chargeable on the supply of the services at the same time as payment is due for the supply of the services; or (ii) where required by legislation to do so, account directly to the 

  
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 relevant Governmental Authority for any such VAT amounts. The Party required to account for Transfer Tax shall
provide to the other applicable Party evidence of the remittance of the amount of such Transfer Tax to the relevant Governmental Authority, including, without limitation, copies of any Tax returns remitting such amount. The Provider agrees that it
shall take commercially reasonable actions to cooperate with the Recipient in obtaining any refund, return, rebate, or the like of any Transfer Tax, including by filing any necessary exemption or other similar forms, certificates, or other similar
documents. The Recipient shall promptly reimburse the Provider for any costs (or, with respect to Facility-Specific Services, its Cost-Sharing Allocation thereof) incurred by the Provider or its Affiliates in connection with the Recipient obtaining
a refund or overpayment of refund, return, rebate, or the like of any Transfer Tax. For the avoidance of doubt, any applicable gross receipts-based or net income-based Taxes shall be borne by the Provider unless the Provider is required by law to
obtain, or allowed to separately invoice for and obtain, reimbursement of such Taxes from the Recipient. 
 (b) The Recipient shall be
entitled to deduct and withhold Taxes required by any Governmental Authority to be withheld on payments made pursuant to this Agreement. To the extent any amounts are so withheld, the Recipient shall (i) pay, in addition to the amount otherwise
due to the Provider under this Agreement, such additional amount as is necessary to ensure that the net amount actually received by the Provider will equal the full amount the Provider would have received had no such deduction or withholding been
required, (ii) pay such deducted and withheld amount to the proper Governmental Authority, and (iii) promptly provide to the Provider evidence of such payment to such Governmental Authority. The Provider shall, prior to the date of any
payment to be made pursuant to this Agreement, at the request of the Recipient, make commercially reasonable efforts to provide the Recipient any certificate or other documentary evidence (x) required by any Governmental Authority or under
applicable Law or (y) which the Provider is entitled by any Governmental Authority or under applicable Law to provide in order to reduce the amount of any Taxes that may be deducted or withheld from such payment and the Recipient agrees to
accept and act in reliance on any such duly and properly executed certificate or other applicable documentary evidence. 
 (c) If the
Provider (i) receives any refund (whether by payment, offset, credit or otherwise) or (ii) utilizes any overpayment of Taxes that are borne by Recipient pursuant to this Agreement, then the Provider shall promptly pay, or cause to be paid,
to the Recipient an amount equal to the deficiency or excess, as the case may be, with respect to the amount that the Recipient has borne if the amount of such refund or overpayment (including, for the avoidance of doubt, any interest or other
amounts received with respect to such refund or overpayment) had been included originally in the determination of the amounts to be borne by Recipient pursuant to this Agreement, net of any additional Taxes the Provider incurs or will incur as a
result of the receipt of such refund or such overpayment. 
 ARTICLE V 

TERM AND TERMINATION 

Section 5.01 Term. This Agreement shall commence as of the date hereof and shall terminate upon the earlier to occur
of: (a) the last date on which any Party is obligated to provide any Service to any other Party in accordance with the terms of this Agreement; or (b) the mutual 

  
 15 

 
written agreement of Baxter and Baxalta to terminate this Agreement in its entirety. Unless otherwise terminated pursuant to Section 5.02, this Agreement shall terminate with respect
to any Service at the close of business on the last day of the Service Period for such Service. To the extent that any Provider’s ability to provide a Service is dependent on the continuation of any other Service (whether or not such Service is
provided or received by such Provider), the Provider’s obligation to provide such dependent Service shall terminate automatically with the termination of such supporting Service. 

Section 5.02 Early Termination of Services. The Recipient or the Provider may from time to time terminate
this Agreement with respect to the entirety of any individual Service but not a portion thereof only as set forth in this Section 5.02 and Section 9.07(b). 

(a) The Recipient may terminate any Task-Specific Service for any reason or no reason, upon the giving of an advance Notice to the Provider of
such Task-Specific Service not less than one hundred eighty (180) days or such other Notice period, if any, as is set forth on Schedule I or otherwise agreed in writing from time to time with respect to the particular Service; provided,
however, that any such termination may only be effective as of the last day of a month. 
 (b) The Recipient may terminate any
Facility-Specific Service for any reason or no reason, upon the giving of an advance Notice to the Provider of such Facility-Specific Service not less than one hundred eighty (180) days or such other Notice period, if any, as is set forth on
Schedule I or otherwise agreed in writing from time to time with respect to the particular Service; provided, however, that any such termination may only be effective as of the last day of a month. 

(c) The Recipient may terminate any Service if the Provider of such Service has failed to perform any of its material obligations under this
Agreement with respect to such Service, and such failure shall continue to exist forty five (45) days after receipt by the Provider of Notice of such failure from the Recipient; provided, however, that any such termination may
only be effective as of the last day of a month; and provided, further, that the Recipient shall not be entitled to terminate the Agreement with respect to the applicable Service if, as of the end of such forty five (45)-day period,
there remains a good faith Dispute between the Parties as to whether the Provider has cured the applicable breach. 
 (d) Except as set
forth on Schedule I or the applicable Joinder Agreement, the Provider may terminate any Task-Specific Service upon not less than three hundred sixty-five (365) days’ Notice if it no longer uses (or intends to use) such service for its own
business at the facility in question; provided, however, that any such termination may only be effective as of the last day of a month and may not be effective as of a date prior to the fourth anniversary of this Agreement. 

(e) If the Provider intends to close, abandon or vacate any facility covered under this Agreement or that portion of a facility covered
hereunder that provides any Facility-Specific Services, it agrees to provide the Recipient with not less than three hundred sixty-five (365) days’ advance Notice. Following such Notice period, the Services shall terminate (unless or until
the Provider or any of its Affiliates or successors then occupies such facility, in which 

  
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case the Facility-Specific Services shall continue in accordance with this Agreement); provided, however, that any such termination may only be effective as of the last day of a
month. The Parties agree that they will cooperate and use commercially reasonable efforts to allow the Recipient to become self-sufficient for the purposes of providing such Facility-Specific Service(s) on its own during any period when the Provider
(or its Affiliates or successors) are not occupying the facility or that portion of the facility responsible for providing such Facility-Specific Service, including transfer of ownership or other rights in the necessary facility (or portion
thereof), equipment, machinery or other assets as may be necessary for the applicable period at an agreed-upon market price to be agreed-upon in good faith by the Provider and the Recipient. The provision of any such Facility-Specific Service by the
Recipient pursuant to this Section 5.02(e) shall be at its own cost. 
 (f) The Provider may terminate any Task-Specific
Services with not less than three hundred sixty-five (365) days’ Notice of its intent to sell or otherwise transfer the facility or any portion thereof at which any Task-Specific Service is performed to a Third Party or to otherwise vacate
the facility (and the Provider and its Affiliates no longer occupy such facility), with such termination effective only upon Provider and its Affiliates vacating the applicable Premises; provided, however, that any such termination may
only be effective as of the last day of a month; provided further that, if the Third Party successor is able to perform one or more of the Task-Specific Services in its ordinary course at such facility, the Provider will use
commercially reasonable efforts to cause such Third Party to assume the Task-Specific Services that the Third Party is able to perform in the ordinary course. 

(g) The Provider may terminate this Agreement with respect to any individual Service, but not a portion thereof, at any time upon prior Notice
to the Recipient if the Recipient has failed to perform any of its material obligations under this Agreement relating to such Services, including making payment of Charges for such Service when due, and such failure shall continue uncured for a
period of forty five (45) days after receipt by the Recipient of a Notice of such failure from the Provider; provided, however, that any such termination may only be effective as of the last day of a month; and provided,
further, that the Provider shall not be entitled to terminate this Agreement with respect to the applicable Service if, as of the end of such forty five (45)-day period, there remains a good faith Dispute between the Parties as to whether the
Recipient has cured the applicable breach. 
 The relevant portion of any Schedule to this Agreement or any other agreement between Provider
and Recipient with respect to any Service shall be deemed to be automatically updated to reflect any terminated Service. 
 The Parties
acknowledge and agree that (A) there may be interdependencies among the Services being provided under this Agreement, (B) upon the request of any Party, the Transition Committee shall consider whether (1) any such interdependencies
exist with respect to the particular Service that a Party is seeking to terminate in accordance with this Section 5.02 and (2) the Provider’s ability to provide a particular Service in accordance with this Agreement would be
adversely affected by the termination of another Service in accordance with Section 5.02. If the Transition Committee has determined that such interdependencies exist and that the Provider’s ability to provide a particular Service
in accordance with this Agreement would be adversely affected (or that the Charges in respect of such continuing Services should be equitably 

  
 17 

 
adjusted) as a result of the termination of another Service in accordance with Section 5.02, the Provider and the Recipient shall negotiate in good faith to amend the relevant portion
of Schedule I to this Agreement or any other agreement between Provider and Recipient relating to such impacted continuing Service, which amendment shall be consistent with the terms of comparable Services. If the Provider and the Recipient are not
able to agree to such changes to the Schedule to this Agreement or to such other applicable agreement, the Service requested to be terminated shall continue without change unless Recipient provides notice that the interdependent Services should also
be terminated in accordance with the applicable clause of Section 5.02. For the avoidance of doubt, any amendment to any Schedule or Joinder Agreement (including any schedule or exhibit thereto), shall be deemed part of this Agreement as
of the date of such amendment. If the Transition Committee is not able to reach agreement on whether such interdependencies exist or whether in such case the Provider’s ability to provide a particular Service in accordance with this Agreement
would be adversely affected (or that the Charges in respect of such continuing Services should be equitably adjusted) as a result of the termination of another Service in accordance with Section 5.02, termination of the Service requested
pursuant to Section 5.02 shall be delayed pending resolution of such Dispute. 
 Section 5.03 Reduction of
Services. A Recipient may from time to time request a reduction in part of the scope or amount of any Service; provided that any such reduction may only take effect as of the end of a month. If requested to do so by a Recipient, the
Transition Committee shall discuss in good faith appropriate adjustments to the relevant Charges and any Cost-Sharing Allocation in light of all relevant factors. If, after such discussions, the Transition Committee does not approve any requested
reduction of the scope or amount of any Service and the relevant Charges or Cost-Sharing Allocation in connection therewith, then (a) there shall be no change to the Charges or Cost-Sharing Allocation under this Agreement and (b) unless
the applicable Recipient and Provider otherwise agree in writing, there shall be no change to the scope or amount of any Services under this Agreement. If, after such discussions, the Transition Committee approves any reduction of Service, such
reduction of Service shall be documented in a written agreement executed on behalf of the applicable Recipient and Provider and a copy of such written agreement shall promptly be provided to the Transition Committee, and such agreement shall be
deemed to amend and become a part of this Agreement. Additionally, in connection with any such reduction of Service, the Transition Committee may approve an appropriate reduction to the Charges or Cost-Sharing Allocation related to the applicable
reduced Service. 
 Section 5.04 Effect of Termination. Upon the termination of any Service pursuant to this
Agreement, the Provider of the terminated Service shall have no further obligation to provide the terminated Service, and the Recipient shall have no obligation to pay any future Charges or Cost-Sharing Allocation relating to any such Service
(except as set forth in Section 5.02(b)); provided, however, that the Recipient shall remain obligated to the Provider for the Charges (or costs or expenses for which the Cost-Sharing Allocation is applicable) owed and
payable in respect of Services provided (or, with respect to any Cost-Sharing Allocation, expenditures committed for which the terminating Party would have otherwise been responsible) prior to the effective date of termination for such Service. In
connection with the termination of any Service, the provisions of this Agreement not relating solely to such terminated Service shall survive any such termination, and in connection with a termination of this Agreement, Article I, this
Article V, Article VII and Article IX, all confidentiality obligations under this Agreement and Liability for all due and unpaid Charges (and costs and expenses for which the Cost-Sharing Allocation is applicable), shall
continue to survive indefinitely. 

  
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 Section 5.05 Information Transmission. Baxter and Baxalta, on behalf of
itself and its respective Subsidiaries, shall use commercially reasonable efforts to provide or make available, or cause to be provided or made available, to each Recipient, in accordance with Section 6.01(a) of the Separation and Distribution
Agreement, any Information received or computed by any such Party or any of its Subsidiaries for the benefit of the Recipient concerning the relevant Service during the Service Period; provided that (a) no Party or Subsidiary thereof
shall have any obligation to provide or cause to provide Information in any non-standard format, (b) the Party providing such Information (or its applicable Subsidiaries) shall be reimbursed for their reasonable costs in accordance with
Section 6.01(c) of the Separation and Distribution Agreement for creating, gathering, copying, transporting and otherwise providing such Information, and (c) each Party shall use commercially reasonable efforts to maintain any such
Information in accordance with Section 6.03 of the Separation and Distribution Agreement. 
 ARTICLE VI 

CONFIDENTIALITY; PROTECTIVE ARRANGEMENTS 

Section 6.01 Confidentiality. Sections 6.08 and 6.09 of the Separation and Distribution Agreement shall be
incorporated by reference herein (but for this purpose, only to the extent applicable to this Agreement, and not to the Separation and Distribution Agreement or any other Ancillary Agreement), with such sections applying to all Parties hereunder as
the context allows. 
 ARTICLE VII 

LIMITED LIABILITY; INDEMNIFICATION AND DISPUTE RESOLUTION 

Section 7.01 Limitations on Liability. 

(a) The Liabilities of each Provider 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) with respect to any Task-Specific Service, or from the sale, delivery, provision or use of any Task-Specific Service provided under or contemplated by this Agreement,
whether in contract, tort (including negligence and strict liability) or otherwise, at law or equity, shall not exceed the amount of Charges received (and not previously paid back as a Liability hereunder) by the Provider (or its Affiliates) in
respect of the Task-Specific Service for which the Liability arises hereunder in the twenty-four months immediately prior to the date on which the Provider’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; provided that, to the extent the Liability arises out of a Provider
breaching this Agreement by not providing the Task-Specific Services required hereunder, then the Liability shall not exceed the greater of the fees previously paid by such Recipient to such Provider for the twenty-four months immediately prior to
the initial date of Provider’s failure to provide the required Service in respect of the Task-Specific Service from which such Liability flows or the estimated amount that such Provider would have been paid by such Recipient for such
Task-Specific Services (if performed) for the same twenty-four month period. 

  
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 (b) Notwithstanding anything to the contrary contained in the Separation and Distribution
Agreement or this Agreement, the Provider shall not be liable to the Recipient or any of its Affiliates or Representatives, whether in contract, tort (including negligence and strict liability) or otherwise, at law or equity, for any special,
indirect, incidental, punitive or consequential damages whatsoever (including lost profits or damages calculated on multiples of earnings approaches), which in any way arise out of, relate to or are a consequence of, the performance or
nonperformance by the Provider (including any Affiliates and Representatives of the Provider and any unaffiliated third-party providers, in each case, providing the applicable Services) with respect to Task-Specific Services under this Agreement or
the provision of, or failure to provide, any Task-Specific Service under this Agreement, including with respect to loss of profits, business interruptions or claims of customers. 

(c) The Liabilities of each Provider 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) with respect to any Facility-Specific Service, or from the sale, delivery, provision or use of any Facility-Specific Service provided under or contemplated by this
Agreement, whether in contract, tort (including negligence and strict liability) or otherwise, at law or equity, shall not exceed the amount of Charges received by the Provider in respect of the Facility-Specific Service for which the Liability
arises hereunder in the twenty-four months immediately prior to the date on which the Provider’s (or its applicable Affiliate’s or Representative’s) action or inaction giving rise to the Liability (or, if later, Recipient’s first
knowledge of any Liability related thereto) arises or occurs; provided that, to the extent the Liability arises out of a Provider breaching this Agreement by not providing the Facility-Specific Services required hereunder, then the Liability
shall not exceed the greater of the fees previously paid by such Recipient to such Provider for the twenty-four months immediately prior to the initial date of Provider’s failure to provide the required Service in respect of the
Facility-Specific Service from which such Liability flows or the estimated amount that such Provider would have been paid by such Recipient for such Facility-Specific Services (if performed) for the same twenty-four month period. Notwithstanding the
foregoing limitations set forth in this Section 7.01(c), if any issue for cause of Liability hereunder (i) impacts the Recipient and its Affiliates in a manner that is disproportionate to the effect on the Provider and its
Affiliates or (ii) demonstrates that the Provider 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 Provider relies in a manner similar to the
Recipient’s reliance on such Facility-Specific Service, then the Provider’s Liability shall be limited to two-thirds (66.67%) of the indemnifiable Liabilities related thereto (with the Recipient responsible for the other one-third
(33.33%)). 
 (d) Notwithstanding anything to the contrary contained in the Separation and Distribution Agreement or this Agreement, in no
event shall Provider (or its Affiliates or Representatives) have any Liability arising in connection with this Agreement (including under this Article VII) 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 Person’s 

  
 20 

 
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. 

(e) The limitations in Section 7.01(a) and Section 7.01(c) 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. 
 Section 7.02
Obligation to Re-Perform; Liabilities. In the event of any breach of this Agreement by any Provider with respect to the provision of any Services (with respect to which the Provider can reasonably be expected to re-perform in a
commercially reasonable manner), the Provider shall (a) promptly correct in all material respects such error, defect or breach or re-perform in all material respects such Services at the request of the Recipient and at the sole cost and expense
of the Provider and (b) subject to the limitations set forth in Sections 7.01(a), 7.01(b), Section 7.01(c) and Section 7.01(d), reimburse the Recipient and its Affiliates and Representatives for Liabilities
attributable to such breach by the Provider. Any request for re-performance in accordance with this Section 7.02 by the Recipient must be in writing and specify in reasonable detail the particular error, defect or breach, and such
request must be made no more than one (1) month from the date such error, defect or breach becomes apparent or should have reasonably become apparent to the Recipient. 

Section 7.03 Recipient Release and Indemnity; Waiver of Claims. 

(a) Subject to Section 7.01, each Recipient hereby releases the applicable Provider and its Affiliates and Representatives (each, a
“Provider Indemnified Party”), and each Recipient hereby agrees to indemnify, defend and hold harmless each such Provider Indemnified Party from and against any and all Liabilities arising from, relating to or in connection with:
(i) the use of any Services by such Recipient or any of its Affiliates, Representatives or other Persons using such Services; or (ii) the sale, delivery, provision or use of any Services provided under or contemplated by this Agreement,
except, in the case of each of clauses (i) and (ii), to the extent that such Liabilities arise out of, relate to or are a consequence of the applicable Provider Indemnified Party’s gross negligence, willful misconduct or fraud. 

(b) The Recipient, to the extent permitted by applicable Law, waives all claims it may have against the Provider, and against the
Provider’s agents, employees and contractors for damages for injuries to person or damage to property sustained by the Recipient or by any occupant of the Premises, or by any other Person, resulting from any act or neglect of the Recipient, its
employees, agents, representatives or contractors or of any other Person. 
 (c) If the Recipient permits any Third Party to conduct any
activity of any kind at the facilities subject to this Agreement, the Recipient shall direct such Third Party to maintain insurance in the types and amounts reasonably sufficient to protect the Provider and the Recipient from any and all liabilities
and damages. The amount of such insurance carried by any Third Party shall not limit the Recipient’s liability hereunder. The Recipient shall be responsible for the consequences of any failure of any such Third Party to maintain such insurance.

  
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 (d) The Recipient shall indemnify, defend and hold the Provider harmless from each and every
claim for Liability for injuries to persons or damage to or loss of property occurring at the facilities subject to this Agreement (i) subject to Section 7.04, with respect to its or any of its Affiliates’ employees, agents or
contractors, or any Third Parties invited to any such facility by any of the foregoing or (ii) due to any act or negligence by the Recipient’s or any of its Affiliates’ employees, contractors or agents, or any such Third Parties. 

Section 7.04 Provider Indemnity. Subject to Section 7.01, each Provider hereby agrees to indemnify,
defend and hold harmless the applicable Recipient and its Affiliates and Representatives (each a “Recipient Indemnified Party”), from and against any and all Liabilities arising from, relating to or in connection with: (a) the
use of any Services by such Recipient or any of its Affiliates, Representatives or other Persons using such Services; (b) the sale, delivery, provision or use of any Services provided under or contemplated by this Agreement; (c) any claim
for Liability by or with respect to any of the Recipient’s or any of its Affiliates employees, agents or contractors, or any Third Parties invited to the facilities subject to this Agreement by any of them; or (d) except to the extent
indemnified by the Recipient pursuant to Section 7.03, injuries to persons or damage to or loss of property occurring at the facilities subject to this Agreement with respect to the Provider’s or any of its Affiliates’
employees, agents or contractors, or any Third Parties invited to any such facility by any of the foregoing. 
 Section 7.05
Liability for Charges. Nothing in this Article VII shall be deemed to eliminate or limit, in any respect, any Recipient’s express obligation in this Agreement to pay Charges for Services rendered in accordance with this
Agreement or costs and expenses pursuant to which the Parties have agreed that the Recipient will be responsible for its proportionate share (including any agreed-upon Cost-Sharing Allocation). 

Section 7.06 Continued Performance; Specific Performance. During the pendency of any Dispute, each Party shall
continue to perform all of its respective obligations under this Agreement. Further, Section 9.17 of the Separation and Distribution 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 and Distribution Agreement or any other Ancillary Agreement). 

Section 7.07 Indemnification Procedures; Dispute Resolution. The provisions of Article VII of the Separation and
Distribution Agreement shall govern claims for indemnification and other disputed matters under this Agreement; provided that, for purposes of this Section 7.07, in the event of any conflict between the provisions of Article VII
of the Separation and Distribution Agreement and this Article VII, the provisions of this Agreement shall control. 

  
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 ARTICLE VIII 

TRANSITION COMMITTEE 

Section 8.01 Establishment. Pursuant to the Separation and Distribution Agreement, Baxter and Baxalta shall
establish the Transition Committee. The Transition Committee shall have the authority to establish one or more subcommittees from time to time as it deems appropriate to monitor and manage matters arising out of or resulting from this Agreement.

 Section 8.02 General Principles. In furtherance of the foregoing and notwithstanding any provision in this
Agreement to the contrary, each Party acknowledges and agrees that the Transition Committee shall (without until such time affecting any prior decision or determination) have the right to review and amend any prior actions taken, decisions made or
amendments or modifications agreed to, by the Parties, and to proscribe that the Parties take such actions or make such amendments or modifications as the Transition Committee deems appropriate in order to effect the intent and purpose of this
Agreement and the transactions contemplated hereby and thereby. Each Party shall take, or cause to be taken, any and all reasonable actions that the Transition Committee may reasonably request to carry out the intent and purpose of this
Article VIII. 
 Section 8.03 Action. For the avoidance of doubt, the Transition Committee may only
act in accordance with, and subject to, the terms set forth in Section 2.14 of the Separation and Distribution Agreement, and this Agreement is not intended to modify the requirements regarding the composition of, or any action taken by,
the Transition Committee. Members of the Transition Committee (or any applicable subcommittee thereof) shall hold meetings on an as- needed basis in order to make determinations involving capital expenditures and other costs at any shared facility
and to address issues or Disputes arising under this Agreement. Any action permitted to be taken hereunder by the Transition Committee may be taken jointly by the designated leaders of Baxter’s and Baxalta’s respective Project Management
Offices related to the Separation, as identified by the Parties from time to time. 
 ARTICLE IX 

MISCELLANEOUS 

Section 9.01 Mutual Cooperation. The Parties and their respective Subsidiaries shall cooperate with each other in
connection with the performance of the Services hereunder; provided, however, that such cooperation shall not unreasonably disrupt the normal operations of the Parties and their respective Subsidiaries; and, provided, further, that this
Section 9.01 shall not require any Party to incur any out-of-pocket costs or expenses unless and except as expressly provided in this Agreement or otherwise agreed to in writing by Baxter and Baxalta. 

Section 9.02 Title to Intellectual Property and Other Property. 

(a) Except as expressly provided for under the terms of this Agreement, the Recipient acknowledges that it shall acquire no right, title or
interest (including any license rights or rights of use) in any intellectual property which is owned or licensed by the Provider (or any 

  
 23 

 
of its Affiliates), by reason of the provision of the Services provided hereunder. The Recipient shall not remove or alter any copyright, trademark, confidentiality or other proprietary notices
that appear on any intellectual property owned or licensed by the Provider, and the Recipient shall not reproduce any such notices on any and all copies thereof. The Recipient shall not attempt to decompile, translate, reverse engineer or make
excessive copies of any such intellectual property owned or licensed by the Provider (or any of its Affiliates), and the Recipient shall promptly notify the Provider of any such attempt, regardless of whether by the Recipient or any Third Party, of
which the Recipient becomes aware. 
 (b) Except as required by applicable Law in order to perform a particular Service or as specifically
set forth in this Agreement or in any other written agreement entered into from time to time with respect to this Agreement (including in any Schedule or exhibit attached hereto or thereto), in the Separation and Distribution Agreement or any other
Ancillary Agreement, title and ownership of any assets of property of the Recipient or any of its Subsidiaries (or its or their direct or indirect parent companies) shall remain vested in the Recipient and its Subsidiaries (or its or their direct or
indirect parent companies), and the risk of loss related thereto shall remain with such Persons at all times. For the avoidance of doubt, subject to the exceptions in the immediately preceding sentence, the Provider and its Subsidiaries (and its and
their direct and indirect parent companies) shall have no obligation to acquire or maintain insurance with respect to the assets or property of any other Person used in connection with the performance of the Services. This paragraph (b) is
intended to apply to all applicable Services performed in connection with this Agreement, including any and all warehousing, storage and distribution services. 

(c) To the extent the Provider or its Affiliates or any of its or their Representatives use any know-how, processes, technology, trade secrets
or other intellectual property owned by or licensed to any such Person in providing the Services, such property (other than to the extent licensed to the Provider or its Affiliates by the Recipient or its Affiliates) and any derivative works of, or
modifications or improvements to, such intellectual property conceived or created as part of the provision of Services will, as between the parties, remain the sole property of the Provider or its applicable Affiliates or Representatives unless such
improvements were specifically created for the Recipient or its Affiliates pursuant to a specific Service as specifically indicated in Schedule I to this Agreement or as otherwise agreed in writing from time to time. The applicable Party will and
hereby does assign to the applicable owner designated above, and agrees to assign automatically in the future upon first recordation in a tangible medium or first reduction to practice, all of such Party’s right, title and interest in and to
all such improvements, if any. All rights not expressly granted herein are reserved. Notwithstanding the foregoing, if there is any conflict between the terms of this Section 9.02 and specific terms of the Separation and Distribution
Agreement or any Ancillary Agreement, then the terms of the Separation and Distribution Agreement or such Ancillary Agreement will prevail. 

Section 9.03 Miscellaneous. Sections 9.01 (Counterparts), 9.02 (Governing Law), 9.03
(Assignability), 9.04 (Third Party Beneficiaries), 9.06 (Severability), 9.08 (No Set Off), 9.10 (Headings), 9.11 (Survival of Covenants), 9.12 (Subsidiaries and Employees), 9.13 (Waivers),
9.14 (Amendments), 9.15 (Interpretations), 9.16 (Public Announcements), 9.17 (Specific Performance) and 9.18 (Mutual Drafting) of the Separation and Distribution 

  
 24 

 
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 and
Distribution Agreement or any other Ancillary Agreement); provided that any specific provision of this Agreement or any other written agreement entered into by Provider and Recipient with respect to this Agreement (including any Schedule or
exhibit hereto or thereto) shall control in the event of any conflict with such sections of the Separation and Distribution Agreement; provided further that all sections and provisions of the Separation and Distribution Agreement
incorporated by reference in this Agreement shall be interpreted wherever possible in a manner fulfilling the purpose of such provision of the Separation and Distribution Agreement as applied to this Agreement, taking into account the context. 

Section 9.04 Assignability; Utilities Transfers. 

(a) In addition to the assignment provisions incorporated by reference from Section 9.03 of the Separation and Distribution Agreement, any
Party may assign all of its rights and obligations under this Agreement to any of its Subsidiaries; provided, that in connection with any such assignment, the assigning Party provides a guarantee to the non-assigning Party (in a form
reasonably agreed upon) for any Liability of the assignee under this Agreement. 
 (b) Notwithstanding anything to the contrary in this
Agreement (including Section 9.04(a)), in the event of any assignment to a Third Party or other Change of Control or other occurrence with respect to the Provider (if such Provider is Baxalta or any of its Subsidiaries) of any Service in
respect of utilities or wastewater management, Recipient shall at all times thereafter during the Term have the right to purchase (or permit any of its controlled group Affiliates to purchase) or otherwise acquire from Provider or its applicable
controlled group Affiliates all equipment and machinery necessary to become the provider of all or part (at Recipient’s option) of such utilities or wastewater services. In the event that Recipient exercises such option from time to time, the
purchase price for any such equipment or machinery shall be equal to Provider’s (or its applicable Affiliates’) then-current book value for such equipment or machinery. If Recipient chooses to exercise such right, it shall notify Provider
in writing, and Provider shall promptly (and in any event within fifteen (15) days) provide Recipient with the net book value (determined in accordance with Provider’s ordinary course accounting principles and methodologies) for the
applicable equipment and machinery. If Recipient determines that it will proceed with the purchase of such applicable equipment, the purchase price shall be paid by wire transfer with immediately available funds, and Provider shall ensure that the
applicable equipment and machinery is available for transfer to Provider without any lien or encumbrance. Baxalta shall cooperate, and shall cause its controlled group Affiliates to cooperate, to effect such purchase or other acquisition, and to
allow Recipient to become the provider of the applicable Services related thereto; provided that, in any such event, Provider shall become the recipient of such Service on the terms described herein (such that, from the time such equipment
and machinery transfers and Recipient has the capability to provide such Service, Baxter or its applicable Subsidiary shall become the Provider, and Baxalta or its applicable Subsidiary shall become the Recipient). Baxalta’s cooperation
requirements pursuant to this paragraph shall include permitting Baxter and its Affiliates to solicit and hire (to the extent permitted by applicable Law) any employees of Baxalta and its Affiliates (or other parties) for whom the majority of his or
her time is dedicated to providing support for the applicable utilities or wastewater management Services, with any such solicitation or hiring agreed herein to be permitted and not a violation of Section 2.04 of that certain Employee Matters
Agreement, dated as of June 30, 2015, between Baxter and Baxalta. 

  
 25 

 Section 9.05 Independent Contractors. The Parties each acknowledge that
they are separate entities, each of which has entered into this Agreement for independent business reasons. The relationships of the Parties hereunder are those of independent contractors and nothing contained herein shall be deemed to create a
joint venture, partnership or any other relationship. Employees performing services hereunder do so on behalf of, under the direction of, and as employees of, the Provider, and the Recipient shall have no right, power or authority to direct such
employees. 
 Section 9.06 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 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 or any Subsidiary thereof: 

Baxter International Inc. 
 One
Baxter Parkway 
 Deerfield, Illinois 60015 

Attn: General Counsel 
 E-mail:
general_counsel@baxter.com 
 If to Baxalta or any Subsidiary 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 Provider or Recipient to whom the Notice is applicable, at the address (if any) for such
Provider or Recipient set forth in the applicable Joinder Agreement. 
 Any Party may, by Notice to Baxter (if notice is from a Party not a
Subsidiary of Baxter) or Baxalta (if notice is from a Party not a Subsidiary of Baxalta), change the address to which such Notices are to be given. 

Section 9.07 Force Majeure; Priority. 

(a) No Party or other Person shall be deemed in default of this Agreement for failure to fulfill any obligation (other than a payment
obligation) so long as and to the extent to which any delay or failure in the fulfillment of such obligations is prevented, frustrated, hindered or delayed as a consequence of circumstances of Force Majeure. In the event of any such excused delay,
the time for performance shall be extended for a period equal to the time lost by 

  
 26 

 
reason of the delay. A Party or other Person claiming the benefit of this provision shall, as soon as reasonably practicable after the occurrence of any such event, (a) provide Notice to the
other Party or Parties of the nature and extent of any such Force Majeure condition; and (b) use commercially reasonable efforts to remove any such causes and resume performance under this Agreement as soon as reasonably practicable. During the
period of a Force Majeure, the Recipient shall cooperate with Provider to satisfy Provider’s obligations under clause (b) of the preceding sentence and shall (subject to such compliance) be (i) relieved of the obligation to pay
Charges for such Service(s) throughout the duration of such Force Majeure and (ii) entitled to permanently terminate such Service(s) without penalty or further Charges or costs related thereto (except for any Charges, costs or expenses that
would have been borne by Recipient upon expiration or termination had the Service continued throughout the maximum permitted period under this Agreement, including any permitted extension to the Service Period) if a Force Majeure shall continue to
exist for more than thirty (30) consecutive days, it being understood that the Recipient shall not be required to provide any advance notice of such termination to the Provider, but shall only have such termination right for so long as the
failure to perform due to Force Majeure is continuing. 
 (b) In the event that the Provider is producing a Service both for the Recipient
and for itself or any other Person (including any Affiliate of the Provider) and, due to Force Majeure, the Provider’s capacity to provide such Service is diminished such that the Provider can no longer provide such Service for all parties for
whom the Provider was previously providing such Service to the full extent that the Provider was previously providing such Service, the Provider and the Recipient shall, consistent with applicable regulatory requirements, cooperate to remedy the
situation by (i) sharing remaining capacity ratably based on the actual pro rata allocation in the one-year period prior to such Force Majeure event, (ii) outsourcing such Service to a mutually agreed Third Party to the extent that doing
so does not require the Provider or the Recipient to share any confidential information it does not desire to disclose or (iii) taking such other action as shall be mutually agreed by the Provider and the Recipient. 

Section 9.08 Further Assurances. Each Party hereto shall take, or cause to be taken, any and all reasonable actions,
including the execution, acknowledgment, filing and delivery of any and all documents and instruments that any other Party hereto may reasonably request in order to effect the intent and purpose of this Agreement and the transactions contemplated
hereby. For the avoidance of doubt, this shall include reasonable assistance related to the transition of Services to Recipient upon their expiration or termination, at Recipient’s cost and expense, by Provider. 

* * * * * 

  
 27 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly
authorized representatives. 
  

			
	BAXTER INTERNATIONAL INC.
		
	By:		 /s/ James K. Saccaro

	Name:		 James K. Saccaro

	Title:		 Corporate Vice President

	
	BAXALTA INCORPORATED
		
	By:		 /s/ Robert J. Hombach

	Name:		 Robert J. Hombach

	Title:		 Corporate Vice President and Chief Financial Officer

 Exhibit A 

THIS JOINDER AGREEMENT (“Joinder Agreement”) is executed pursuant to Section 2.2 of the Long Term Services Agreement
dated as of June 30, 2015, by and between Baxter International Inc. (“Baxter”) and Baxalta Incorporated (“Baxalta”) (the “LSA”), and is dated as of [●], 2015, by and between [name of
NewBaxter Subsidiary], a [entity type] organized under the laws of [Jurisdiction] (“NewBax Subsidiary”) and [name of Baxalta Subsidiary], a [entity type] organized under the laws of
[Jurisdiction] (“Baxalta Subsidiary”). Terms used herein and not otherwise defined herein shall have the meanings attributed to them in the LSA. 

R E C I T A L S: 
 WHEREAS, the
board of directors of Baxter has determined that it is appropriate and advisable to separate Baxter’s biopharmaceuticals business from its other businesses; 

WHEREAS, in order to effectuate the foregoing, Baxter and Baxalta have entered into a Separation and Distribution Agreement, dated as of
June 30, 2015 (the “Separation and Distribution Agreement”), which provides for, among other things, the contribution from Baxter to Baxalta of certain assets, the assumption by Baxalta of certain Liabilities (as defined in the
Separation and Distribution Agreement) from Baxter, the distribution by Baxter of Baxalta common stock to Baxter shareholders, and the execution and delivery of certain agreements in order to facilitate and provide for the foregoing, in each case
subject to the terms and conditions set forth therein; 
 WHEREAS, in order to ensure an orderly transition under the Separation and
Distribution Agreement, Baxter and Baxalta have entered into the LSA, which sets forth the terms and conditions pursuant to which each Provider shall provide to the applicable Recipient the Services described in the LSA; and 

WHEREAS, each of NewBax Subsidiary and Baxalta Subsidiary desire to execute this Joinder Agreement to be bound by the terms of the LSA. 

A G R E E M E N T: 
 NOW,
THEREFORE, in consideration of the mutual agreements, provisions and covenants contained in this Joinder Agreement and the LSA, NewBax Subsidiary and Baxalta Subsidiary hereby agree as follows: 

1. Agreement to be Bound. Each of NewBax Subsidiary and Baxalta Subsidiary agree that, with effect from the Commencement Date, it shall
become a party to the LSA as a Provider and a Recipient, respectively, and shall be fully bound by and subject to all of the covenants, terms and conditions of the LSA with the same force and effect as if it were an original party thereto. Each of
NewBax Subsidiary and Baxalta Subsidiary acknowledges that it has received a copy of the LSA. 
 2. Corporate Power. Each party to
this Joinder Agreement represents as follows: 
 (a) it has the requisite corporate or other power and authority and has taken all
corporate or other action necessary in order to execute, deliver and perform this Joinder Agreement and the LSA and to consummate the transactions contemplated hereby and thereby; and 

 (b) this Joinder Agreement has been duly executed and delivered by it and, together with the
LSA, constitutes a valid and binding agreement of it enforceable in accordance with the terms hereof and thereof. 
 3. Counterparts.
This Joinder Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement. 
 4.
Signature and Delivery. Each of NewBax Subsidiary and Baxalta Subsidiary acknowledges that it may execute this Joinder Agreement by manual, stamp or mechanical signature, and that delivery of an executed counterpart of a signature page to
this Joinder Agreement (whether executed by manual, stamp or mechanical signature) by facsimile or by email in portable document format (PDF) shall be effective as delivery of such executed counterpart of this Joinder Agreement. Each of NewBax
Subsidiary and Baxalta Subsidiary expressly adopts and confirms a stamp or mechanical signature (regardless of whether delivered in person, by mail, by courier, by facsimile or by email in portable document format (PDF)) made in its respective name
as if it were a manual signature delivered in person, agrees that it shall not assert that any such signature or delivery is not adequate to bind it to the same extent as if it were signed manually and delivered in person and agrees that, at the
reasonable request of the other party to this Joinder Agreement at any time, it shall as promptly as reasonably practicable cause this Joinder Agreement to be manually executed (any such execution to be as of the date of the initial date hereof) and
delivered in person, by mail or by courier. 
 5. Notices. All Notices applicable to this Joinder Agreement shall be provided to
Provider and Recipient by way of Notice to Baxter (if Baxter is an Affiliate of the applicable recipient) or Baxalta (if Baxalta is an Affiliate of the applicable recipient) in accordance with the Notice requirements set forth in the LSA. 

6. Headings. The Section headings contained in this Joinder Agreement are for reference purposes only and shall not affect in any way
the meaning or interpretation of this Joinder Agreement. 
 7. Governing Law. This Joinder 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 principles of the State of Delaware, as to all matters, including matters of validity, construction, effect, enforceability,
performance and remedies. 
 8. Amendment. No provisions of this Joinder Agreement shall be deemed amended, supplemented or modified
unless (a) NewBax Subsidiary and Baxalta Subsidiary have agreed in writing to such amendment, supplement or modification; and (b) such amendment, supplement or modification is in writing and signed by an authorized representative of each
of NewBax Subsidiary and Baxalta Subsidiary. 
 9. Relationship to LSA. This Joinder Agreement shall be deemed to be part of, and a
modification to, the LSA and shall be governed by all the terms and provisions thereof, which terms are incorporated herein by reference, are ratified and confirmed and shall continue in full force and effect as a valid and binding agreement of
NewBax Subsidiary and Baxalta Subsidiary enforceable against each of NewBax Subsidiary and Baxalta Subsidiary. 
 * * * * * 

  
 - 2 - 

 IN WITNESS WHEREOF, NewBax Subsidiary and Baxalta Subsidiary have caused this Joinder Agreement
to be executed by their duly authorized representatives. 
  

									
	NEWBAX SUBSIDIARY				BAXALTA SUBSIDIARY
					
	By:		  
				By:		  

	Name:		[●]				Name:		[●]
	Its:		Authorized Representative				Its:		Authorized Representative

  
 - 3 - 

 Schedule 1 

Services 
  

			
	Service Provider:		Baxter
	Service Recipient:		Baxalta
	Facility Location:		Hayward, California
	Service Classification:		Task-Specific Services
	Description of Services:		Non-conforming material management; receiving and inspection of direct materials; shipping activities; internal transportation; spare parts management and maintenance; metrology and calibration of plant equipment; site data
historian; local IT support; and depyrogenation of labware

  
 Sch. 1 - 1 

			
	Service Provider:		Baxter
	Service Recipient:		Baxalta
	Facility Location:		Hayward, California
	Service Classification:		Facility-Specific Services
	Description of Services:		Warehousing; cafeteria space and maintenance; office and lab space for analytical assessment and development

  
 Sch. 1 - 2 

			
	Service Provider:		Baxalta
	Service Recipient:		Baxter
	Facility Location:		Hayward, California
	Service Classification:		Task-Specific Service
	Description of Services:		Refrigerant management; badge reader management and maintenance; microbiology testing; maintenance and facility engineering; site security monitoring and maintenance; environmental monitoring; cleaning services; archiving; and
local IT support

  
 Sch. 1 - 3 

			
	Service Provider:		Baxter
	Service Recipient:		Baxalta
	Facility Location:		Lessines, Belgium
	Service Classification:		Task-Specific Services
	Description of Services:		Incident/first aid call response; Fire Brigade; nursing services; sprinkler system management; Environmental health services training kiosk management; site reception; security operations; camera operation and maintenance;
speaker and pager equipment operation; fork lift maintenance; services required for manufacturing of mechanical pieces; phone services; utilities spare part management; common spare part management; clocking system management; system access control;
IT utilities systems management; IT support services for the asset maintenance system; inspection of raw materials; raw materials samples retention; lab equipment sterilization; quality control laboratory raw materials tests; microbiology laboratory
operations; sterility laboratory services; products release services; known consignor certification services; AEO certification services; IT support services for the WHS Management system; use of back-up equipment; high voltage operations and on
duty interventions; IT support services for PCR hardware; micro lab equipment use; logistics application usage

  
 Sch. 1 - 4 

			
	Service Provider:		Baxter
	Service Recipient:		Baxalta
	Facility Location:		Lessines, Belgium
	Service Classification:		Facility-Specific Services
	Description of Services:		Waste management; common area maintenance; cafeteria management; gas utility management; water and lab equipment sterilization; packing and shipping space rental; warehousing services and inventory management for ambient raw
material

  
 Sch. 1 - 5 

			
	Service Provider:		Baxalta
	Service Recipient:		Baxter
	Facility Location:		Lessines, Belgium
	Service Classification:		Task-Specific Service
	Description of Services:		Performance of Energy Branch Agreement declarations; technician services for utilities operations; environmental communications; PLC assess; technician services for utilities/facilities responses and other on duty
interventions

  
 Sch. 1 - 6 

			
	Service Provider:		Baxalta
	Service Recipient:		Baxter
	Facility Location:		Lessines, Belgium
	Service Classification:		Facility-Specific Services
	Description of Services:		Parking area access and maintenance; utilities management

  
 Sch. 1 - 7 

			
	Service Provider:		Baxter
	Service Recipient:		Baxalta
	Facility Location:		Singapore
	Service Classification:		Task-Specific Services
	Description of Services:		Landscaping and exterior grounds maintenance; pest control; security

  
 Sch. 1 - 8 

			
	Service Provider:		Baxter
	Service Recipient:		Baxalta
	Facility Location:		Singapore
	Service Classification:		Facility-Specific Services
	Description of Services:		Compressed air supply; fire protection system operation; land lease; cafeteria management; training room use; parking area access; waste collection space management; RO water supply

  
 Sch. 1 - 9 

			
	Service Provider:		Baxalta
	Service Recipient:		Baxter
	Facility Location:		Singapore
	Service Classification:		Facility-Specific Services
	Description of Services:		Supply steam, water, electricity; waste treatment services

  
 Sch. 1 - 10

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