Document:

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                             TAX SHARING AGREEMENT

                           DATED AS OF MARCH 31, 2000

                                 BY AND BETWEEN

                           BAXTER INTERNATIONAL INC.

                                      AND

                        EDWARDS LIFESCIENCES CORPORATION
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<TABLE>
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                               TABLE OF CONTENTS                                              Page
                                                                                              ----
 <S>                                                                                           <C>
Article I                            Definitions                                                 2

Article II                           Preparation and Filing of Tax Returns                       9

         2.01  Manner of Preparation                                                             9
         2.02  Pre-Distribution Consolidated U.S. Federal Income Tax                             9
         2.03  Pre-Distribution U.S. State Income Tax Returns                                   10
         2.04  International Tax Returns - Edwards Entities                                     11
         2.05  Other Pre-Distribution Tax Returns                                               12
         2.06  Sales, Use or Property Tax Returns                                               12
         2.07  Franchise Tax Returns                                                            12
         2.08  Tax Packages and Other Information                                               13
         2.09  Post-Distribution Date Tax Returns                                               13
         2.10  Allocation of Tax Attributes                                                     13
         2.11  Employee Stock Incentives Other Than Restricted Stock                            14
         2.12  Restricted Stock                                                                 15
         2.13  Abandoned/Unclaimed Property                                                     15

Article III    Tax Deficiencies and Overpayments                                                16

         3.01  General Rule                                                                     16
         3.02  Payments by Edwards                                                              16
         3.03  Payments by Baxter                                                               20
         3.04  Manner of Payments - Legal Entities                                              22
         3.05  Transaction Taxes                                                                22
         3.06  Puerto Rico Filing Obligations                                                   22
         3.07  Harbor Maintenance Taxes                                                         23
         3.08  No Other Payments                                                                23
</TABLE>

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<TABLE>
<S>                                                                                             <C>
Article IV     Tax Audits and Administrative Matters                                            24

        4.01  Tax Audits and Controversies                                                      24
        4.02  Retention of Books and Records                                                    25
        4.03  Cooperation Regarding Return Filing, Examinations And Controversies               26
        4.04  Interest on Late Payments                                                         28
        4.05  Character and Effect of Payments                                                  28
        4.06  Agency                                                                            28

Article V     Miscellaneous                                                                     28
        5.01  Severability                                                                      28
        5.02  Modification of Agreement                                                         28
        5.03  Conflict with the Reorganization Agreement or Other Tax Agreements                29
        5.04  Notices                                                                           29
        5.05  Application to Present and Future Subsidiaries                                    30
        5.06  Term                                                                              30
        5.07  Titles and Headings                                                               30
        5.08  Singular and Plural                                                               30
        5.09  Governing Law                                                                     31
        5.10  Dispute Resolution                                                                31
        5.11  Counterparts                                                                      31
</TABLE>

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                             TAX SHARING AGREEMENT

     Tax Sharing Agreement (the "Agreement"), dated as of March 31, 2000 by and
between Baxter International Inc., a Delaware corporation ("Baxter") and,
Edwards Lifesciences Corporation, a Delaware corporation (Edwards):

     WHEREAS, Baxter and Edwards have entered into an Agreement and Plan of
Reorganization dated as of March 15, 2000 (the "Reorganization Agreement");

     WHEREAS, pursuant to the Reorganization Agreement all the issued and
outstanding common stock of Edwards will be distributed by Baxter (pro rata) to
the holders of its common stock (the "Distribution"); and

     WHEREAS, the parties hereto desire to provide for the payment of tax
liabilities and entitlement to tax refunds for the taxable periods ending
before, on or after the date of the Distribution, to allocate responsibility and
provide for cooperation in the preparation and filing of tax returns with
respect to such taxable periods, and to provide for certain other related
matters:

     NOW, THEREFORE, Baxter, on behalf of itself and members of the Baxter Group
(as hereinafter defined), and Edwards, on behalf of itself and members of the
Edwards Group (as hereinafter defined), in consideration of the mutual covenants
contained herein, agree as follows:

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                                   ARTICLE I

                                  DEFINITIONS
                                  -----------

     As used in this Agreement, the following terms shall have the following
meanings (such meanings to be equally applicable to both the singular and the
plural forms of the terms defined):

     "Baxter Businesses" means the present and former subsidiaries, divisions
and businesses of any member of the Baxter Group, other than the Edwards
Business.

     "Baxter Employee" means any employee of the Baxter Group who is not an
Edwards Employee.

     "Baxter Group" means Baxter and its past and present subsidiaries, except
for: (1) members of the Edwards Group, (2) the Edwards Business, and (3) any
past or present subsidiaries, divisions or businesses of Baxter (or of any of
its past or present subsidiaries) which (i) relate to the Edwards Business and
(ii) which are not, or are not contemplated by the Reorganization Agreement to
be, part of the Baxter Group after the Distribution.

     "Code" means the Internal Revenue Code of 1986, as amended, or any
successor thereto.

     "Disqualifying Disposition" means any disposition of Section 423 Edwards
Stock or Section 423 Baxter Stock which does not meet the requirements of
section 423(a) of the Code.

     "Distribution Date" has the meaning set forth in the Reorganization
Agreement for "Distribution Date". For all purposes of this Agreement, the

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Distribution shall be deemed effective as of the close of business on the
Distribution Date.

     "Edwards" means the present and future subsidiaries, divisions and
businesses and former divisions and businesses of any member of the Edwards
Group which are not, or are not contemplated by the Reorganization Agreement to
be, part of the Baxter Group immediately after the Distribution, including
former divisions or subsidiaries described as the Divested Businesses in the
Reorganization Agreement.

     "Edwards Business" has the meaning set forth in the Reorganization
Agreement for "Edwards Business" but shall also be defined to include any
operations, entities or contractual arrangements in which Edwards has a majority
participating interest.

     "Edwards Employee" has the meaning set forth in section 12.1 of the
Reorganization Agreement.

     "Edwards Group" means the "Edwards Business" as defined in the
Reorganization Agreement and its direct and indirect subsidiaries on and after
the Distribution Date, including former divisions and subsidiaries described as
the Divested Businesses as defined in the Reorganization Agreement.

     "Edwards Distribution Date Balance Sheet" means the Edwards balance sheet
as of the Distribution Date.

     "Edwards 1999 Currently Payable Federal Income Tax Expense" means the
amount of U.S. Baxter consolidated federal income tax liability attributable to
the Edwards Business for items reported in Baxter's 1999 consolidated federal

                                       6
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income tax return as filed, computed at a 35% tax rate.  This amount shall be
determined in good faith by Baxter, after consulting with Edwards, on the basis
of Edwards Business items as such items are reported (or should properly have
been reported) on the tax packages and other information provided by Edwards
under section 2.08 of this Agreement.

     "Edwards 1999 Estimated Currently Payable Federal Income Tax Expense" means
the U.S. Baxter 1999 consolidated federal income tax expense attributable to the
Edwards Business for the taxable year ended December 31 1999, less the net
increase (or plus the net decrease) in the deferred federal income tax
liabilities attributable to the Edwards Business through December 31, 1999, as
reported in Edwards' consolidated balance sheet as of the December 31, 1999 and
consolidated income statement through December 31, 1999. Any adjustments to
Edwards' deferred tax liabilities for periods ending prior to January 1, 1999
shall be disregarded for this purpose.

     "Edwards 1999 Currently Payable State Income Tax Expense" means the amount
of U.S. state income tax liability attributable to the Edwards Business for
items reported in Baxter's 1999 state income tax returns as filed, computed at
an 8% tax rate. This amount shall be determined in good faith by Baxter, after
consulting with Edwards, on the basis of Edwards Business items as such items
are reported (or should properly have been reported) on the tax packages and
other information provided by Edwards under section 2.05 of this Agreement.

     "Edwards 1999 Estimated Currently Payable State Income Tax Expense" means
the U.S. state income tax expense attributable to the Edwards Business through
December 31, 1999, less the net increase (or plus the net decrease) in the
deferred state income tax liabilities attributable to the Edwards Business
through December 31, 1999, as reported in Edwards' consolidated balance sheet as
of December 31, 1999 and consolidated income statement through

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December 31, 1999. Any adjustments to Edwards' deferred tax liabilities for
periods ending prior to January 1, 1999 shall be disregarded for this purpose.

     "Edwards 2000 Currently Payable Federal Income Tax Expense" means the
amount of U.S. Baxter consolidated federal income tax liability attributable to
the Edwards Business for items reported in Baxter's 2000 consolidated federal
income tax return as filed, computed at a 35% tax rate.  This amount shall be
determined in good faith by Baxter, after consulting with Edwards, on the basis
of Edwards Business items as such items are reported (or should properly have
been reported) on the tax packages and other information provided by Edwards
under section 2.08 of this Agreement.

     "Edwards 2000 Estimated Currently Payable Federal Income Tax Expense" means
the U.S. Baxter 2000 consolidated federal income tax expense attributable to the
Edwards Business through the Distribution Date, less the net increase (or plus
the net decrease) in the deferred federal income tax liabilities attributable to
the Edwards Business through the Distribution Date, as reported in Edwards'
consolidated balance sheet as of the Distribution Date and consolidated income
statement through the Distribution Date. Any adjustments to Edwards' deferred
tax liabilities for periods ending prior to January 1, 2000 shall be disregarded
for this purpose.

     "Edwards 2000 Currently Payable State Income Tax Expense" means the amount
of U.S. state income tax liability attributable to the Edwards Business for
items reported in Baxter's 2000 state income tax returns as filed, computed at
an 8% tax rate. This amount shall be determined in good faith by Baxter, after
consulting with Edwards, on the basis of Edwards Business items as such items
are reported (or should properly have been reported) on the tax packages and
other information provided by Edwards under section 2.05 of this Agreement.

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     "Edwards 2000 Estimated Currently Payable State Income Tax Expense" means
the U.S. state income tax expense attributable to the Edwards Business through
the Distribution Date, less the net increase (or plus the net decrease) in the
deferred state income tax liabilities attributable to the Edwards Business
through the Distribution Date, as reported in Edwards' consolidated balance
sheet as of the Distribution Date and consolidated income statement through the
Distribution Date. Any adjustments to Edwards' deferred tax liabilities for
periods ending prior to January 1, 2000 shall be disregarded for this purpose.

     "Final Determination" means, with respect to any issue or item for any
taxable period the earliest to occur of the following: (i) a decision by a court
of competent jurisdiction, but only after such decision has become final and
unappealable; (ii) the expiration of the time for filing a claim for refund or,
if a refund claim has been timely filed, the time for instituting a suit in
respect of such refund claim, provided that no further adjustment to the items
of income, gain, loss, deduction or credit for such period may thereafter be
made; (iii) the execution by or on behalf of the taxpayer and the IRS of a
closing agreement under Section 7121 of the Code or comparable agreements under
the laws of other jurisdictions; (iv) the acceptance by the IRS or its counsel
of a tender pursuant to an offer in compromise under Section 7122 of the Code,
or comparable agreements under the laws of other jurisdictions; (v) the
execution of a Form 870 or Form 870AD and the subsequent payment of the tax
deficiency or the receipt of the refund reflected therein; or (vi) any other
final and irrevocable determination of the tax liability of a party to this
Agreement for any taxable period.

     "IRS Adjustments" means any adjustments made by the Internal Revenue
Service ("IRS") with respect to any United States ("U.S.") Federal income Tax
Returns of Baxter (or any member of the Baxter Group) in which any part of
Edwards is included for taxable periods beginning before the Distribution Date.

                                       9
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     "Sales, Use, or Property Tax" means any sales, use, or property tax (and
any related interest or penalties) relating to the Edwards Businesses conducted
in the United States.

     "Section 423 Edwards Stock" means Edwards Stock received as a distribution
on Section 423 Baxter Stock pursuant to the Reorganization Agreement.

     "Section 423 Baxter Stock" means Baxter stock acquired pursuant to the
Baxter Qualified Employee Stock Purchase Plan, adopted pursuant to the 1987
Incentive Compensation Program.

     "Tax" means any of the Taxes.

     "Taxes" means taxes arising from all forms of taxation, whenever created or
imposed, and whether of the United States of America or elsewhere, and whether
imposed by a local, municipal, governmental, state, federation or other body,
and without limiting the generality of the foregoing, shall include income,
sales, use, ad valorem, gross receipts, value added, franchise, transfer, stamp,
recording, withholding, payroll, employment, excise, occupation, premium or
property taxes, together with any related interest, penalties and additions to
tax, or additional amounts imposed by any taxing authority (domestic or foreign)
upon the Edwards Group, the Baxter Group or any of their respective members or
divisions or branches.

     A "Tax Benefit" arises whenever a member's liability for Taxes may be
reduced in future periods as a result of an adjustment by a taxing authority in
the year under examination, whether or not such reduction is presently assured.
Examples of a Tax Benefit include the Taxes associated with an increase in the

                                       10
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basis of an asset or the deferral of a deduction or the reallocation upon audit
of a deduction within the same taxable period between Edwards and Baxter. A Tax
Benefit does not include a change in the amount of a tax credit available. The
amount of any Tax Benefit shall be computed using a tax rate of 35% for federal
income tax purposes and 5.2% (8% state income tax rate less a 35% federal
benefit) for state income tax purposes.

     A "Tax Detriment" arises whenever a member's liability for Taxes may be
increased in future periods as a result of an adjustment by a taxing
jurisdiction in the year under examination, whether or not such increase is
presently assured. Examples of a Tax Detriment include the Taxes associated with
a decrease in the basis of an asset or the acceleration of a deduction or the
reallocation upon audit of a deduction within the same taxable period between
Edwards and Baxter. A Tax Detriment does not include a change in the amount of a
tax credit available. The amount of a Tax Detriment shall be computed using a
tax rate of 35% for federal income tax purposes and 5.2% (8% state income tax
rate less a 35% federal benefit) for state income tax purposes.

     "Tax Return" means any return, filing, questionnaire or other document
required to be filed, including amended returns that may be filed, for any
period with any taxing authority (whether domestic or foreign) in connection
with any Tax or Taxes (whether or not a payment is required to be made with
respect to such filing).

     "Transaction Taxes" means all sales, use, transfer, VAT, stamp,
registration, capital gains, income tax, ad valorem, gross receipts, recording,
withholding (other than payroll tax withholding), and similar taxes or fees
(including, without limitation, all real estate, patent, copyright and trademark
transfer taxes and recording fees) payable in connection with the transactions

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contemplated in the Reorganization Agreement and the transfer of the Edwards
Business, together with any related interest, penalties, or additions to tax.

                                  ARTICLE II

                     PREPARATION AND FILING OF TAX RETURNS
                     -------------------------------------

     Section 2.01.  Manner of Preparation.  All Tax Returns for taxable periods
                    ---------------------
beginning before the Distribution Date which are filed after the Distribution
Date shall be prepared on a basis consistent with prior return treatment
(provided such basis does not have an adverse effect on the elections,
accounting methods, conventions, and principles of taxation used for any taxable
period ending on or before the Distribution Date), and shall be filed on a
timely basis by the party responsible for such filing under this Agreement.
Subject to the provisions of this Agreement, all decisions relating to the
preparation and filing of Tax Returns and any audit or other review of such Tax
Returns shall be made in the sole discretion of the party responsible under this
Agreement for such filing.

     Section 2.02.  Pre-Distribution Consolidated U.S. Federal Income Tax
                    -----------------------------------------------------
Returns. Baxter shall prepare and file all consolidated U.S. federal income
-------
Tax Returns that include both a member of the Baxter Group and part of the
Edwards Business, and that are required to be filed for periods beginning before
the Distribution Date.   Baxter agrees to pay to the IRS the consolidated U.S.
federal income tax liabilities reported on these returns on a timely basis.

     Baxter shall refund to Edwards any excess of: (i) Edwards 1999 Estimated
Currently Payable Federal Income Tax Expense, over (ii) Edwards 1999 Currently
Payable Federal Income Tax Expense. Edwards shall refund to Baxter

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any excess of: (i) Edwards 1999 Currently Payable Federal Income Tax Expense,
over (ii) Edwards 1999 Estimated Currently Payable Federal Income Tax Expense.
Payments under this section shall be due within 30 days after the due date
(including extensions) of Baxter's 1999 consolidated U.S. federal income tax
return.

     Baxter shall refund to Edwards any excess of: (i) Edwards 2000 Estimated
Currently Payable Federal Income Tax Expense, over (ii) Edwards 2000 Currently
Payable Federal Income Tax Expense. Edwards shall refund to Baxter any excess
of: (i) Edwards 2000 Currently Payable Federal Income Tax Expense, over (ii)
Edwards 2000 Estimated Currently Payable Federal Income Tax Expense.  Payments
under this section shall be due within 30 days after the due date (including
extensions) of Baxter's 2000 consolidated U.S. federal income tax return.

     Section 2.03  Pre-Distribution U.S. State Income Tax Returns.   All U.S.
                   ----------------------------------------------
state income tax returns (whether consolidated, unitary, combined, or separate)
of a member of the Baxter Group which:

(i)  include part of the Edwards Business, and
(ii) are required to be filed for periods beginning before the Distribution Date

shall be filed by the Baxter member. The Baxter member shall also be responsible
for paying the tax liability shown on the return to the appropriate taxing
authority.

     Baxter shall refund to Edwards any excess of: (i) Edwards 1999 Estimated
Currently Payable State Income Tax Expense, over (ii) Edwards 1999 Currently
Payable State Income Tax Expense. Edwards shall refund to Baxter any excess of:
(i) Edwards 1999 Currently Payable State Income Tax Expense, over (ii)

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Edwards 1999 Estimated Currently Payable State Income Tax Expense. Payments
under this section shall be due within 30 days after the due date (including
extensions) of the relevant state income tax return.

     Baxter shall refund to Edwards any excess of: (i) Edwards 2000 Estimated
Currently Payable State Income Tax Expense, over (ii) Edwards 2000 Currently
Payable State Income Tax Expense. Edwards shall refund to Baxter any excess of:
(i) Edwards 2000 Currently Payable State Income Tax Expense, over (ii) Edwards
2000 Estimated Currently Payable State Income Tax Expense.  Payments under this
section shall be due within 30 days after the due date (including extensions) of
the relevant state income tax return.

     Section 2.04  International Tax Returns- Edwards Entities. Except as
                   -------------------------------------------
provided in Section 3.03(c) Edwards shall be responsible for filing Tax
Returns and paying all Tax Liabilities with respect to the following entities
and their successors for all taxable periods:

     Baxter Participacoes e Commercial Ltda. (Brazil)
     Macchi Engenharia Ltda. (Brazil)
     Baxter Cardiovascular Private Limited (India)
     Xenomedica A.G
     PAS Palzer GmbH and Co. KG
     PAS Palzer Verwaltungs GmbH

     Edwards shall also be responsible for filing Tax Returns and paying all Tax
Liabilities with respect to Edwards entities that are formed pursuant to the
Reorganization Agreement.

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     Section 2.05  Other Pre-Distribution Tax Returns.   All Tax Returns (except
                   ----------------------------------
as provided hereunder or in Sections 2.02, 2.03 or 2.04 above) which:

(i)  include or are filed by a member of the Baxter Group or the Edwards
     Group, and
(ii) are required to be filed for periods beginning before the Distribution Date

shall be filed by the appropriate Baxter or Edwards member in accordance with
local law or custom as finally determined in good faith by Baxter after
consultation with Edwards.  The party filing such return shall also be
responsible for paying the tax liability shown on the return to the appropriate
taxing authority.

     Section 2.06  Sales, Use, or Property Tax Returns.  Sales, Use, or Property
                   -----------------------------------
Tax Returns and all liability for payment of Sales, Use or Property Tax relating
to the Edwards Business for all periods shall be the responsibility of the
Edwards Group. $600,000 of existing Sales Use and Property tax reserves relating
to the Edwards Group will be transferred to Edwards.

     Section 2.07  Franchise Tax Returns.   U.S. state franchise taxes and tax
                   ---------------------
returns for all periods beginning before the Distribution Date shall be the
responsibility of the Baxter Group. Notwithstanding the foregoing, U.S. state
franchise taxes and tax returns for entities  formed pursuant to the
Reorganization Agreement shall be the responsibility of the Edwards Group.

     Section 2.08  Tax Packages and Other Information. Edwards shall provide
                   ----------------------------------
Baxter with: (i) domestic and foreign income tax packages prepared for 1999 and
2000 on a basis consistent with prior treatment, (ii) any and all information,
documentation, working papers and schedules relating to the Edwards Businesses
and the Edwards Group reasonably requested by Baxter for use in connection with
the preparation and filing of any Tax Return required to be filed

                                       15
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by Baxter, and (iii) a reconciliation of book income to U.S. federal taxable
income for the Edwards Businesses for 1999 and the period January 1, 2000
through the Distribution Date.

     Edwards shall use its best efforts to provide Baxter with such  tax
packages, information, documentation, working papers, schedules and book-tax
reconciliation on or before the first day of the fourth month following the end
of the period to which they relate, but in any event   shall provide them no
later than the fifteenth day of the sixth month following the end of the period
to which they relate.

     Section 2.09.  Post-Distribution Date Tax Returns.  To the extent not
                    ----------------------------------
covered above, all Tax Returns and liability for payment of Taxes for periods
ending after the Distribution Date shall be the responsibility of the Baxter
Group if such Tax Returns or Taxes relate to Baxter Businesses, and shall be the
responsibility of the Edwards Group if such Tax Returns or Taxes relate to the
Edwards Business.

     Section 2.10.  Allocation of Tax Attributes.
                    ----------------------------

     (a)  Foreign Tax Credit Related Items. Earnings and profits and foreign
          --------------------------------
taxes paid shall be allocated between Baxter and Edwards in accordance with
applicable Treasury Regulations as interpreted in good faith by Baxter.

     (b)  Research Credit Base. For purposes of the research and
          --------------------
experimentation tax credit under section 41 of the Code, the parties agree to
allocate a portion of the Baxter Group's gross receipts and qualified research
expenses to the Edwards Group as set forth in the attached schedule, pursuant to
section 41(f)(3)(B) of the Code.  No adjustments or payments shall be made if a
subsequent audit or other event results in a determination that this allocation

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was not correct.  Baxter has provided documentation to Edwards to support such
gross receipts and qualified research expenses, and will provide Edwards with
access to the original tax packages and Tax Returns as necessary for audit
purposes.

     (c)  Other Tax Attributes.   All other tax attributes of the Baxter Group
          --------------------
(including, but not limited to, net operating loss carryforwards) shall remain
with the Baxter Group and shall not be allocated in whole or in part to the
Edwards Group If pursuant to a Final Determination, any portion of the
consolidated AMT credit or other tax attribute is allocated to Edwards (the
"Excess Item"), an amount equal to the Excess Item shall be paid by Edwards to
Baxter at the time of such Final Determination.

     Section 2.11.   Employee Stock Incentives Other Than Restricted Stock.
                     -----------------------------------------------------

     Baxter shall be entitled to all tax deductions arising by reason of any
Disqualifying Disposition by:  (i) Baxter Employees of Section 423 Edwards Stock
or Section 423 Baxter Stock, or (ii) Edwards Employees of Section 423 Baxter
Stock. Edwards shall be entitled to all tax deductions arising by reason of any
Disqualifying Disposition by Edwards Employees of Section 423 Edwards Stock.

     Baxter shall be responsible to make all reports required to be made to the
relevant tax authorities with respect to Disqualifying Dispositions where Baxter
is entitled to the corresponding tax deductions hereunder. Edwards shall be
responsible to make all reports required to be made to the relevant tax
authorities with respect to Disqualifying Dispositions where Edwards is entitled
to the corresponding tax deductions hereunder.

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     Edwards shall report to Baxter, in no case later than 30 days after the end
of each calendar month, any Disqualifying Disposition made by Baxter Employees
during such month of Section 423 Edwards Stock.

     Baxter shall be entitled to all tax deductions arising by reason of any
exercises of nonqualified stock options to purchase Baxter shares of stock.

     The party entitled to tax deductions under this Section 2.11 shall also be
responsible for any employment related taxes and governmental filings associated
with the tax deduction being claimed.

     If, pursuant to a Final Determination, all or any part of a tax deduction
described in this section is disallowed to Baxter, then Edwards shall reimburse
Baxter for any additional Taxes owed by reason of such disallowance, but only to
the extent that, as a result of such disallowance, Edwards is allowed a tax
deduction attributable to such Disqualifying Disposition.  In such case, Edwards
shall report the allowed tax deduction and shall reimburse Baxter at the time
Edwards receives a refund attributable to such deduction or otherwise realizes
the economic benefit thereof.

     Section 2.12 Restricted Stock.   Baxter shall be entitled to all tax
                  ----------------
deductions arising with respect to the vesting of, or the release of
restrictions upon, on or after the Distribution Date any shares of Baxter
restricted stock which are owned by Baxter Employees or Edwards Employees.

     Section 2.13 Abandoned/Unclaimed Property.   Baxter will retain liability
                  ----------------------------
for abandoned and unclaimed property reported to it by Edwards as of the
Distribution Date in accordance with the Baxter corporate policy for reporting

                                       18
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unclaimed property. Edwards will retain liability for abandoned and unclaimed
property of Edwards not reported to Baxter as of the Distribution Date.

                                  ARTICLE III

                       TAX DEFICIENCIES AND OVERPAYMENTS
                       ---------------------------------

     Section 3.01.  General Rule.   Except as otherwise provided in this
                    ------------
Agreement, Baxter is responsible for paying all Taxes (and entitled to receive
all refunds and interest) resulting from any adjustment made by any taxing
authority with respect to any Tax Return of Baxter (or any member of the Baxter
Group) in which any member of the Edwards Group is included.

     Pursuant to Sections 3.02 through 3.08 hereof, Baxter is entitled to cash
reimbursements from Edwards, or must make cash payments to Edwards, in certain
circumstances described below.

     No cash reimbursements or payments are required with respect to adjustments
made by any taxing authority relating to the returns of any member of the
Edwards Group which do not include Baxter or a member of the Baxter Group.

     Section 3.02.  Payments by Edwards.
                    -------------------

     (a)  U.S. Federal or State Income Tax Adjustments-Pre Distribution Date
          ------------------------------------------------------------------
Taxable Periods. To the extent that any IRS Adjustment or similar adjustment by
---------------
a state tax authority of a Tax Return filed by a member of the Baxter Group that
includes any part of the Edwards Business for taxable periods beginning before
the Distribution Date 1.) results in a Tax Benefit to any member of the Edwards
Group, or 2.) results in additional Taxes to Baxter and is attributable

                                       19
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solely to Edwards failure to provide timely sufficient documentation under
Section 4.03 of this Agreement, Edwards shall pay Baxter the amount of such Tax
Benefit or additional Taxes as the case may be. Where any such adjustment is
attributable solely to Edwards failure to provide timely documentation pursuant
to the request of the IRS or any state tax authority, Edwards shall also pay
Baxter any interest, penalties, or additions to tax attributable to such
adjustment (per Section 3.02(a)(2)). The amount of such Tax Benefit shall be
determined in good faith by Baxter, after consulting with Edwards.

      (b.)  U.S. Federal or State Income Tax Adjustments- Post Distribution
            ---------------------------------------------------------------
Date Taxable Periods.  To the extent that any IRS Adjustment or similar
--------------------
adjustment by a state tax authority of a Tax Return filed by a member of the
Baxter Group for taxable periods ending after the Distribution Date results in a
Tax Benefit to any member of the Edwards Group. Edwards shall pay Baxter the
amount of such Tax Benefit. The amount of such Tax Benefit shall be determined
in good faith by Baxter, after consulting with Edwards.

      (c)   Other Tax Adjustments-Pre Distribution Date Taxable Periods. If any
            ------------------------------------------------------------
adjustments (including the filing of an amended return to reflect any such
adjustments) are made by any taxing authority with respect to any Tax Returns
(other than U.S. federal or state income tax returns) of Baxter (or any member
of the Baxter Group) in which any part of the Edwards Business is included for
taxable periods beginning before the Distribution Date, then to the extent that
such adjustments:

i)    are attributable to part of the Edwards Business; or

ii.)  the transfer thereof, and

                                       20
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iii.)   may decrease the net taxable income of, or increase the net taxable loss
        or tax credits of, any member of the Edwards Business for taxable
        periods beginning on or after the Distribution Date, and

iv.)    result in a greater Tax liability for Baxter or any member of the Baxter
        Group (in either case without regard to any offsetting adjustments to
        other members of the Baxter Group),

Edwards and each other member of the Edwards Group shall pay Baxter the
difference between the Tax liability on the respective Baxter Tax Return before
and after taking into account the adjustment, determined without regard to any
interest, penalties, or additions to tax, unless such interest, penalties, or
additions to tax are attributable to failure to provide timely sufficient
documentation under Section 4.03 of this Agreement by any member of the Edwards
Group. The amount of such adjustment shall be determined in good faith by
Baxter, after consulting with Edwards, and be payable under Section 3.02(e)
except for any amounts payable pursuant to Section 3.02(c)(ii) which shall be
payable under Section 3.02(f).

        (d)  Other Tax Adjustments-Post Distribution Date Taxable Periods. If
             ------------------------------------------------------------
any adjustments (including the filing of an amended return to reflect any such
adjustments) are made by any taxing authority with respect to any Tax Returns
(other than U.S. federal or state income tax returns) of Baxter (or any member
of the Baxter Group) in which any part of the Edwards Business is included for
taxable periods ending after the Distribution Date, then to the extent that such
adjustments:

i.)     are attributable to the transfer of the Edwards Business; or

                                       21
<PAGE>

ii.)   are attributable to the operations of the Edwards Business after the
       Distribution Date, and

iii.)  result in a greater Tax liability for Baxter or any member of the Baxter
       Group (in either case without regard to any offsetting adjustments to
       other members of the Baxter Group),

Edwards shall pay Baxter the difference between the Tax liability on the
respective Baxter Tax Return before and after taking into account the
adjustment, determined without regard to any interest, penalties, or additions
to tax. Also, in the event that any joint venture governed by this paragraph is
the subject of an income tax audit, the parties agree to allocate any resulting
taxable income adjustment in proportion to their profit allocation percentages
in the relevant operations. In either case, the amount of such adjustment shall
be determined in good faith by Baxter, after consulting with Edwards and be
payable under Section 3.02(e) except for any amounts payable pursuant to Section
3.02(d)(i) which shall be payable under Section 3.02(f).

       (e)  Manner of Payment. If Edwards shall have any liability as a result
            ------------------
of this Section 3.02, the amount thereof shall be paid by Edwards to Baxter
within thirty (30) days after the receipt by Edwards of written notice of such
liability, together with a computation of the amount due and supporting
documentation in such detail as Edwards may reasonably request to verify the
computation of the amount due. Baxter may give such written notice to Edwards
only after a Final Determination has occurred.

       (f)  Timing of Reimbursement-Exception. Notwithstanding Paragraph
            ---------------------------------
3.02(e) above, any liability of Edwards to Baxter arising under Paragraph
3.02(c)(ii) or Paragraph 3.02(d)(i) shall be payable by Edwards only at such
time as it realizes the economic benefit of any increase in tax basis arising
from

                                       22
<PAGE>

the transfer of the Edwards Business (Basis Increase). For purposes of
determining the amount of any economic benefit (Tax Reduction) under this
Section, Edwards shall prepare three separate income tax returns for the
jurisdiction in which the relevant Basis Increase is available. One return shall
be prepared in accordance with local law and filed with the local tax
authorities (Actual Return). A proforma return shall be prepared on the same
basis as the Actual Return but which shall also exclude any tax deductions or
credits arising out of tax strategies which occur after the Distribution Date
(such as material changes in accounting policies, changes in capital structure
to increase leverage, and acquisitions or reorganizations which produce tax
deductions greater than their operating income) (First Pro Forma Return).
Another pro forma return shall be prepared on the same basis as the First Pro
Forma Return but which shall also exclude any tax deductions or credits
associated with the Basis Increase (Second Pro Forma Return). The excess of the
tax liability on the Second Pro Forma Return over the tax liability on the First
Pro Forma Return shall be considered as the Tax Reduction under this Section.
The Tax Reduction shall be determined in good faith by Edwards, after consulting
with Baxter and shall be reimbursed by Edwards to Baxter within 30 days after
the last extended legal due date for filing of the Actual Return. Edwards'
liability to Baxter hereunder shall continue until the Basis Increase no longer
constitutes an allowable deduction for tax purposes in the relevant
jurisdiction.

     The delayed timing of reimbursement provided by this Section as an
exception to Section 3.02(e) shall apply only to those Tax liabilities otherwise
subject to reimbursement hereunder which individually (i.e. on a per country
basis) exceed $3,000,000.

     Section 3.03. Payments by Baxter. (a) U.S. Federal or State Income Tax
                   ------------------      --------------------------------
Adjustments. To the extent that any IRS Adjustment or similar adjustment by a
-----------
state tax authority of a Tax Return filed by a member of the Baxter Group

                                       23
<PAGE>

that includes any part of the Edwards Business for taxable periods beginning
before the Distribution Date results in a Tax Detriment to any member of the
Edwards Group, Baxter shall remit to Edwards the amount of such Tax Detriment,
determined without regard to any interest, penalties, or additions to tax. The
amount of such Tax Detriment shall be determined in good faith by Baxter, after
consulting with Edwards.

     (b)  Other Tax Adjustments-Pre Distribution Date Taxable Periods.   If any
          -----------------------------------------------------------
adjustments (including the filing of an amended return to reflect any such
adjustments) are made by any taxing authority with respect to any Tax Returns
(other than U.S. federal or state  tax returns) of Baxter (or any member of the
Baxter Group) in which any part of the Edwards Business is included for taxable
periods beginning before the Distribution Date, then to the extent that such
adjustments are attributable to part of the Edwards Business;

i)   result in a reduced Tax liability for Baxter (without regard to any
     offsetting adjustments to other members of the Baxter Group),and

ii.) may increase the net taxable income of, or decrease the net taxable loss or
     tax credits of, any member of the Edwards Business for taxable periods
     beginning on or after the Distribution Date,

then Baxter shall pay to Edwards the difference between the Tax liability on the
respective Tax Return before and after taking into account the adjustment,
determined without regard to any interest, penalties, or additions to tax. The
amount of such adjustment shall be determined in good faith by Baxter, after
consulting with Edwards.

                                       24
<PAGE>

       (c)  Other Income Tax Adjustments- Brazil. Notwithstanding Section 3.04,
            ------------------------------------
if any adjustments (including the filing of an amended return to reflect any
such adjustments) are made by Brazilian taxing authorities with respect to
income Tax Returns of Baxter Participacoes e Commercial Ltda. (Brazil) or Macchi
Engenharia Ltda. or their successors for taxable periods up to the Distribution
Date; such adjustments do not result in a Tax Benefit to Edwards; and such
adjustments exceed the total net operating losses available for carryforward
against such adjustments, Baxter will pay to Edwards an amount equal to the
product of: 1.) the excess of such adjustments over the net operating loss
carryforwards and 2.) the statutory tax rate in Brazil in effect for the taxable
period in which such adjustments exceed the net operating loss carryforwards.

       (d)  Manner of Payment. Baxter shall pay amounts due from it to Edwards
            -----------------
as a result of this Section 3.03 within thirty (30) days after a Final
Determination. Such payments shall be accompanied by a computation of the amount
due and supporting documentation in such detail as Baxter may reasonably request
to verify the computation of the amount due.

       Section 3.04  Manner of Payments-Legal Entities. Any reimbursements
                     ---------------------------------
made pursuant to this Article III with respect to income tax liabilities shall
be made between the legal entities of Baxter International Inc. and Edwards
Lifesciences Corporation (including their respective successors, if any) and
shall be considered as an adjustment to the assets transferred to Edwards
Lifesciences Corporation by Baxter International Inc. pursuant to the
Reorganization Agreement.

       Section 3.05. Transaction Taxes. Except as otherwise provided in this
                     -----------------
Agreement, Edwards is responsible for the payment of all Transaction Taxes,

                                       25
<PAGE>

provided however that patent, copyright and trademark transfer taxes and
recording fees shall be the responsibility of Baxter.

     Section 3.06. Puerto Rico Filing Obligations. During the course of
                   ------------------------------
preparing for the Distribution, Baxter and Edwards became aware of heretofore
unsatisfied filing obligations with respect to the operations of Edwards
perfusion business in Puerto Rico. The purpose of this Section 3.06 is to
allocate responsibility between Edwards and Baxter for such filing obligations
and associated taxes.

     (a)  Edwards will prepare local Tax Returns for its perfusion business in
Puerto Rico, pay the appropriate taxes, interest and penalties, if any, to
Puerto Rico and provide Baxter with copies of the local Tax Returns and
underlying documentation. Edwards shall file such returns within 6 months
following the Distribution Date.

     (b)  Baxter will refund to Edwards any increase in foreign tax credits
(Extra Credits) allowable to Baxter as a result of taxes paid pursuant to the
local Tax Returns prepared by Edwards under Section 3.06(a).

     (c)  Any amounts payable by Baxter hereunder shall be paid to Edwards
within seven months after Edwards files related Tax Returns under Section
3.06(a).

     (d)  Edwards and Baxter agree to share equally professional fees incurred
in the preparation of local Tax Returns under Section 3.05(a) above.

     (e)  If, pursuant to a Final Determination, any Extra Credits are
disallowed to Baxter on the basis that the Extra Credits are attributable to
Edwards,

                                       26
<PAGE>

Edwards shall reimburse Baxter an amount equal to the Extra Credits so
disallowed within 30 days after the related Final Determination.

     Section 3.07   Harbor Maintenance Taxes  Baxter and Edwards agree to
                    ------------------------
cooperate with each other in filing for refund claims to which they may be
entitled with respect to Harbor Maintenance Taxes. Any refunds received pursuant
to such claims shall be allocated to Baxter and CVG in proportion to their
respective original tax payments with respect to which the refund claims are
allowed.

     Section 3.08.  No Other Payments. Anything to the contrary notwithstanding,
                    -----------------
except as provided in this Article III or the Reorganization Agreement, no
member of the Edwards Group shall be entitled to any payment from any member of
the Baxter Group, and no member of the Baxter Group shall be entitled to any
payment from any member of the Edwards Group, as a result of any IRS Adjustment
or adjustment by any other taxing authority.

                                  ARTICLE IV

                     TAX AUDITS AND ADMINISTRATIVE MATTERS
                     -------------------------------------

     Section 4.01.  Tax Audits and Controversies. (a) U.S. Federal Income Taxes.
                    ----------------------------      -------------------------
Except as otherwise provided in this Section 4.01, Baxter shall have the
exclusive authority and obligation to represent each member of the Edwards Group
before the IRS or any other governmental agency or authority or before any court
with respect to any matter affecting the U.S. federal income tax liability of
any member of either the Baxter Group or the Edwards Group for any tax period
beginning before the Distribution Date, in each such case (i) consulting with
Edwards with regard to any such administrative or judicial proceeding and any
proposed compromise or settlement thereof, and (ii) acting in good faith.

                                       27
<PAGE>

Such representation shall include, but shall not be limited to exclusive control
over (i) any response to any examination by the IRS of U.S. federal income Tax
Returns and (ii) any contest through a Final Determination of any issue included
in any U.S. federal income Tax Return that includes a member of the Baxter
Group, including, but not limited to (A) whether and in what forum to conduct
such contest, and (B) whether and on what basis to settle such contest.

       Baxter shall give timely notice to Edwards of any inquiry, the assertion
of any claim or the commencement of any suit, action or proceeding in respect of
which any member of the Edwards Group may incur any then known (by Baxter)
future U.S. federal income Tax liability or in respect of which indemnity for
U.S. federal corporate income taxes may be sought under this Agreement against
Edwards or any member of the Edwards Group and will give Edwards such
information with respect thereto as Edwards may reasonably request.

       (b)  Other Taxes.   Except as otherwise provided in this Section 4.01,
            ------------
the party responsible for filing any Tax Return (other than U.S. federal income
Tax Returns) pursuant to Sections 2.03 through 2.07 hereof shall, at its own
expense, have the exclusive authority to represent each member of the Baxter
Group and of the Edwards Group before any governmental agency or authority or
before any court with respect to any matter affecting the Tax liability of 1.)
any member of either the Baxter Group or the Edwards Group for any tax period
beginning before the Distribution Date and ending after the Distribution Date
and 2.) any member of the Baxter group which includes part of the Edwards
Business for periods after the Distribution Date, in each case (i)  consulting
with the other group and the other group's tax counsel with regard to any such
administrative or judicial proceeding and any proposed compromise or settlement
thereof, and (ii) acting in good faith.  The Baxter Group shall have, at its own
expense, the exclusive authority as described above to represent each member of
the Edwards Group for periods ending on or before the Distribution Date.
However,

                                       28
<PAGE>

with respect to taxable periods after the Distribution Date Baxter's actions
under this Section 4.01 shall be subject to dispute resolution under Section
5.10.

       Section 4.02.   Retention of Books and Records.  In accordance with
                       -------------------------------
Baxter's records retention guidelines as of the date hereof, Edwards will retain
(for 10 years or longer as required) all information with respect to Baxter in
the possession of any member of the Edwards Group on the Distribution Date which
is needed to support Tax Returns and Tax audits. Edwards shall ensure that it
retains access to any equipment necessary to read any of the information to be
retained by Edwards pursuant to this section 4.02. Edwards will provide Baxter
(and afford Baxter full access to, and the right to inspect and copy at any
reasonable time) such information and use of such equipment upon Baxter's
reasonable request, at no cost to Baxter (other than reasonable out-of-pocket
expenses of Edwards).  At the expiration of the applicable records retention
period, Edwards may dispose of the information upon prior notice to Baxter.  For
a period of 45 days immediately following such notice, Baxter shall have the
right to remove and take title to all such information (in any form including,
without limitation, books, records, computer tapes, and computer disks).

       This section 4.02 is in addition to any records retention requirements
contained in the Reorganization Agreement.  In the event of any conflict, the
provisions of this Tax Sharing Agreement shall govern.

       Section 4.03.   Cooperation regarding Return Filing, Examinations and
                       -----------------------------------------------------
Controversies.   (a) Edwards Obligations.    In addition to any obligations
--------------       --------------------
imposed pursuant to the Reorganization Agreement, Edwards and each other member
of the Edwards Group shall fully cooperate with Baxter and its representatives,
in a prompt and timely manner, in connection with the preparation and filing of
and any inquiry, audit, examination, investigation, dispute, or litigation
involving any Tax Return filed or required to be filed by or

                                       29
<PAGE>

for any member of the Baxter Group for any taxable period beginning before the
Distribution Date, and relating to issues involving the Edwards Business. Such
cooperation shall include, but not be limited to, making available to Baxter,
during normal business hours, and within thirty (30) days after any request
therefor, all books, records and information, and the assistance of all officers
and employees, necessary or useful in connection with any tax inquiry, audit,
examination, investigation, dispute, litigation, or any other matter. Baxter and
Edwards will share on an equitable basis professional fees with respect to
audits of post Distribution Date taxable periods of any Baxter legal entity that
includes part of the Edwards Business. The sharing shall be based upon the
proportionate amount of professional time spent on matters relating to the
Edwards Business.

       Edwards agrees on behalf of itself and each member of the Edwards Group
to execute and deliver to Baxter, when so requested by Baxter, any power of
attorney required to allow Baxter and its counsel to represent Edwards or such
other Edwards Group member in any controversy which Baxter shall have the right
to control pursuant to the terms of Section 4.01 of this Agreement.

       (b) Baxter's Obligations.  In addition to any obligations imposed
           ---------------------
pursuant to the Reorganization Agreement, Baxter shall fully cooperate with
Edwards and its representatives, in a prompt and timely manner, in connection
with (i) the preparation and filing of and (ii) any inquiry, audit, examination,
investigation, dispute, or litigation involving, any Tax Return filed or
required to be filed by or for any member of the Edwards Group.  Such
cooperation shall include, but not be limited to, making available to Edwards,
during normal business hours, and within thirty (30) days after any request
therefor, all books, records and information, and the assistance of all officers
and employees, necessary or useful in connection with any tax inquiry, audit,
examination, investigation, dispute, litigation or any other matter.

                                       30
<PAGE>

       Baxter agrees on behalf of itself and each member of the Baxter Group to
execute and deliver to Edwards, when so requested by Edwards, any power of
attorney required to allow Edwards and its counsel to represent Baxter or such
other Baxter Group member in any controversy which Edwards shall have the right
to control pursuant to the terms of Section 4.01(b) of this Agreement.

       (c)     Remedy for Failure to Comply.    If Baxter reasonably determines
               -----------------------------
that Edwards is not for any reason fulfilling its obligations under Section 4.03
(a), or if Edwards reasonably determines that Baxter is not for any reason
fulfilling its obligations under Section 4.03(b), then Baxter or Edwards, as the
case may be, shall have the right to appoint, at the expense of the other, an
independent entity such as a nationally-recognized public accounting firm to
assist the other in meeting its obligations under this Section 4.03.  Such
entity shall have complete access to all books, records and information, and the
complete cooperation of all officers and employees, of Edwards or Baxter, as the
case may be.

       Section 4.04.   Interest on Late Payments.   Any amount payable under
                       --------------------------
this Agreement by Edwards to Baxter, or by Baxter to Edwards, shall (if not paid
within ten (10) business days after the due date specified in this Agreement)
bear interest from such due date until the date paid, at the rate of one percent
(1%) per month, or portion thereof, until received.

       Section 4.05.    Character and Effect of Payments.    All amounts paid
                        ---------------------------------
pursuant to this Agreement by one party to another party (other than interest
payable under Section 4.04, above) shall be treated by such parties as
intercompany settlements or liabilities existing on the Distribution Date for
income tax and other tax purposes.

                                       31
<PAGE>

       Section 4.06.     Agency.    It is understood and acknowledged that in
                         -------
accordance with Reg. 1.1502-77, Baxter shall be the agent for the Baxter Group
(including the Edwards Group with respect to taxable years ending on or before
the Distribution Date) with respect to all matters referred to therein.

                                   ARTICLE V

                                 MISCELLANEOUS
                                 -------------

       Section 5.01.      Severability.    In case any one or more of the
                          -------------
provisions contained in this Agreement should be invalid, illegal or
unenforceable, the enforceability of the remaining provisions contained herein
shall not in any way be affected or impaired thereby.

       Section 5.02.    Modification of Agreement.    No modification, amendment
                        --------------------------
or waiver of any provision of this Agreement shall be effective unless the same
shall be in writing and signed by each of the parties hereto and then such
modification, amendment or waiver shall be effective only in the specific
instance and for the purpose for which given.

       Section  5.03.     Conflict with the Reorganization Agreement or Other
                          ---------------------------------------------------
Tax Agreements.     Anything in the Reorganization Agreement to the contrary
---------------
notwithstanding, in the event and to the extent that there shall be a conflict
between the provisions of this Agreement and the Reorganization Agreement or any
other agreement, the provisions of this Agreement shall control.  This Agreement
supersedes any tax sharing, tax indemnity or similar agreement that may have
previously existed between any member of the Baxter Group and any member of the
Edwards Group.

                                       32
<PAGE>

       Section 5.04.     Notices.    All notices or other communications
                         --------
required or permitted under this Agreement shall be delivered by hand, mailed by
certified or registered mail, postage prepaid and return receipt requested, or
sent by cable, telegram, telex or telecopy (confirmed by regular, first-class
mail), to the parties at the following addresses (or at such other addresses for
a party as shall be specified by like notice) and shall be deemed given on the
date on which such notice is received:

       (a)  In the case of Baxter, to:

            Baxter International Inc.
            One Baxter Parkway
            Deerfield, IL  60015
            Attn:  Vice President - Taxes

       (b)  In the case of Edwards, to:

            Edwards Lifesciences Corporation
            17221 Red Hill Avenue
            Irvine, CA  92614

            Attn:  Vice President or Director - Taxes

       Section 5.05.     Application to Present and Future Subsidiaries.    This
                         -----------------------------------------------
Agreement is being entered into by Baxter and Edwards on behalf of themselves
and each member of the Baxter Group and the Edwards Group, respectively.  This
Agreement shall constitute a direct obligation of each such member and shall be
deemed to have been readopted and affirmed on behalf of any corporation which
becomes a member of the Baxter Group or the Edwards Group in the future.  Baxter
and Edwards hereby guarantee the performance of

                                       33
<PAGE>

all actions, agreements and obligations provided for under this Agreement of
each member of the Baxter Group and the Edwards Group, respectively. Baxter and
Edwards shall, upon the written request of the other, cause any of their
respective group members formally to execute this Agreement. This Agreement
shall be binding upon, and shall inure to the benefit of, the successors,
assigns and persons controlling any of the corporations bound hereby.

       Section 5.06.     Term.    This Agreement shall commence on the date of
                         -----
execution indicated above and shall continue in effect until otherwise agreed to
in writing by Baxter and Edwards, or their successors.

       Section 5.07.     Titles and Headings.    Titles and headings to sections
                         --------------------
herein are inserted for the convenience of reference only and are not intended
to be a part of to affect the meaning or interpretation of this Agreement.

       Section 5.08.     Singular and Plural.    As used herein, the singular
                         --------------------
shall include the plural and vice versa.

       Section 5.09.     Governing Law.    This Agreement shall be governed by
                         --------------
the laws of the state of Illinois, without regard to the principles of conflicts
of laws thereof.

       Section 5.10     Dispute Resolution. Dispute Resolution under this Tax
                        -------------------
Sharing Agreement shall be governed by the provisions of Article XVI of the
Reorganization Agreement.

       Section 5.11.     Counterparts.    This Agreement may be executed in one
                         -------------
or more counterparts, all of which shall be considered one and the same

                                       34
<PAGE>

agreement, and shall become a binding agreement when one or more counterparts
have been signed by each party and delivered to the other parties.

       IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their duly authorized officers, all on the day and year first
above written.

                              BAXTER INTERNATIONAL INC.

                              By:____________________________
                              Its

                              Edwards Lifesciences Corporation

                              By________________________
                              Its

                                       35<PAGE>

                                                                    Exhibit 10.9

                        Edwards Lifesciences Corporation

                                      and

                        Equiserve Trust Company, N.A.

                                       as

                                  Rights Agent

                                Rights Agreement

                         Dated as of March 31, 2000
<PAGE>

                                RIGHTS AGREEMENT

          RIGHTS AGREEMENT, dated as of March 31, 2000 (the "Agreement"),
between Edwards Lifesciences Corporation, a Delaware corporation (the
"Company"), and Equiserve Trust Company, N.A., a federally chartered trust
company (the "Rights Agent").

                              W I T N E S S E T H:

          WHEREAS, on March 10, 2000 (the "Rights Dividend Declaration Date"),
the Board of Directors of the Company authorized and declared a dividend
distribution of one Right (as hereinafter defined) for each share of Common
Stock (as hereinafter defined) of the Company outstanding at the Close of
Business on March 31, 2000, after giving effect to the distribution of shares of
Common Stock by Baxter International Inc. to its stockholders (the "Record
Date"), each Right initially representing the right to purchase one one-
hundredth of a share of Series A Junior Participating Preferred Stock of the
Company having the rights, powers and preferences set forth in the form of
Certificate of Designations attached hereto as Exhibit A, upon the terms and
subject to the conditions hereinafter set forth (the "Rights"), and has further
authorized the issuance of one Right (as such number may hereinafter be adjusted
pursuant to the provisions of Section 11(p) hereof) for each share of Common
Stock of the Company issued between the Record Date and the earlier of the
Distribution Date or the Expiration Date (as such terms are hereinafter defined)
or, in certain circumstances provided in Section 22 hereof, after the
Distribution Date (as hereinafter defined);

          NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein set forth, the parties hereby agree as follows:

          Section 1. Certain Definitions. For purposes of this Agreement, the
                     -------------------
following terms have the meanings indicated:

          (a)  "Acquiring Person" shall mean any Person who or which, together
     with all Affiliates and Associates of such Person, shall be the Beneficial
     Owner of 15% or more of the shares of Common Stock then outstanding, but
     shall not include the Company, any Subsidiary of the Company, any employee
     benefit plan of the Company or of any Subsidiary of the Company, or any
     Person organized, appointed and acting in such appointed capacity, or
     established by the Company for or pursuant to the terms of any such plan.
     Notwithstanding the foregoing, no Person shall become an "Acquiring Person"
     as the result of an acquisition of shares of Common Stock by the Company
     which, by reducing the number of shares outstanding, increases the
     proportionate number of shares beneficially owned by such Person to 15% or
     more of the shares of Common Stock then outstanding; provided, however,
                                                          --------  -------
     that if a Person shall become the Beneficial Owner of 15% or more of the
     shares of Common Stock then outstanding by reason of share purchases by the
     Company and shall, after such share purchases by the Company, become the
     Beneficial Owner of any additional shares of Common Stock, then such Person
     shall be deemed to be an "Acquiring Person".  Notwithstanding the
     foregoing, no Person shall become an "Acquiring Person" if  (i) such Person
     has reported or is required to report such ownership on Schedule 13G under
     the Securities Exchange Act of 1934, as amended and in effect on the date
     of this Agreement (the "Exchange Act") (or any comparable or successor
     report) or on Schedule 13D under the Exchange Act (or any comparable or
     successor report) which Schedule 13D does not state any intention to or
     reserve the right to control or influence the management or policies of the
     Company or engage in any of the actions specified in Item 4 of such
     schedule (other than the
<PAGE>

          (j) "Section 11(a)(ii) Event" shall mean the event described
     in Section 11(a)(ii) hereof.

          (k) "Section 13 Event" shall have the meaning set forth in
     Section 13(a) hereof.

          (l) "Stock Acquisition Date" shall mean the first date of
     public announcement (which, for purposes of this definition,
     shall include, without limitation, a report filed pursuant to
     Section 13(d) under the Exchange Act) by the Company or an
     Acquiring Person that an Acquiring Person has become such.

          (m) "Subsidiary" shall mean, with reference to any Person,
     any corporation or other entity of which an amount of voting
     securities sufficient to elect at least a majority of the
     directors, or other Persons acting in a capacity similar to
     directors, of such corporation or other entity is beneficially
     owned, directly or indirectly, by such Person, or otherwise
     controlled by such Person.

          (n) "Triggering Event" shall mean any Section 11(a)(ii)
     Event or any Section 13 Event.

          In addition, for purposes of this Agreement, the following terms have
the meanings indicated in specified sections of this Agreement:  (i) "Adjustment
Shares" shall have the meaning set forth in Section 11(a)(ii) hereof; (ii)
"common stock equivalents" shall have the meaning set forth in Section
11(a)(iii) hereof; (iii) "current market price" shall have the meaning set forth
in Section 11(d) hereof; (iv) "Current Value" shall have the meaning set forth
in Section 11(a)(iii) hereof; (v) "Distribution Date" shall have the meaning set
forth in Section 3(a) hereof; (vi) "equivalent preferred stock" shall have the
meaning set forth in Section 11(b) hereof; (vii) "Exchange Ratio" shall have the
meaning set forth in Section 24(a) hereof; (viii) "Expiration Date" shall have
the meaning set forth in Section 7(a) hereof; (ix) "Final Expiration Date" shall
have the meaning set forth in Section 7(a) hereof; (x) "Nasdaq" shall have the
meaning set forth in Section 11(d)(i) hereof; (xi) "Principal Party" shall have
the meaning set forth in Section 13(b) hereof; (xii) "Purchase Price" shall have
the meaning set forth in Section 4(a); (xiii) "Record Date" shall have the
meaning set forth in the recitals hereof; (xiv) "Redemption Price" shall have
the meaning set forth in Section 23(a) hereof; (xv) "Rights" shall have the
meaning set forth in the recitals hereof; (xvi) "Rights Certificates" shall have
the meaning set forth in Section 3(a) hereof; (xvii) "Section 11(a)(ii) Trigger
Date" shall have the meaning set forth in Section 11(a)(iii) hereof; (xviii)
"Spread" shall have the meaning set forth in Section 11(a)(iii) hereof; (xix)
"Substitution Period" shall have the meaning set forth in Section 11(a)(iii)
hereof; (xx) "Summary of Rights" shall have the meaning set forth in Section
3(b) hereof; and (xxi) "Trading Day" shall have the meaning set forth in Section
11(d)(i) hereof.

          Section 2. Appointment of Rights Agent. The Company hereby appoints
                     ---------------------------
the Rights Agent to act as agent for the Company in accordance with the terms
and conditions hereof, and the Rights Agent hereby accepts such appointment. The
Company may from time to time appoint such co-Rights Agents as it may deem
necessary or desirable upon ten (10) days' prior written notice to the Rights
Agent. The Rights Agent shall have no duty to supervise, and shall in no event
be liable for the acts or omissions of any such co-Rights Agent.

          Section 3. Issue of Rights Certificates.
                     ----------------------------

          (a) Until the earlier of (i) the Close of Business on the tenth day
after the Stock Acquisition Date (or, if the tenth day after the Stock
Acquisition Date occurs before the Record Date,

                                       4
<PAGE>

the Close of Business on the Record Date) or (ii) the Close of Business on the
tenth Business Day (or such later date as may be determined by action of the
Board of Directors of the Company prior to such time as any Person becomes an
Acquiring Person) after the date that a tender or exchange offer by any Person
(other than the Company, any Subsidiary of the Company, any employee benefit
plan of the Company or of any Subsidiary of the Company, or any Person
organized, appointed or established by the Company for or pursuant to the terms
of any such plan) is first published or sent or given within the meaning of Rule
14d-2(a) of the General Rules and Regulations under the Exchange Act, if upon
consummation thereof, such Person would be the Beneficial Owner of 15% or more
of the shares of Common Stock then outstanding, (the earlier of (i) and (ii)
being herein referred to as the "Distribution Date"), (x) the Rights will be
evidenced (subject to the provisions of paragraph (b) of this Section 3) by the
certificates for the Common Stock registered in the names of the holders of the
Common Stock (which certificates for Common Stock shall be deemed also to be
certificates for Rights) and not by separate certificates and (y) the Rights
will be transferable only in connection with the transfer of the underlying
shares of Common Stock (including a transfer to the Company). The Company shall
give the Rights Agent prompt written notice of the Distribution Date. As soon as
practicable after the Distribution Date, and receipt of written notice of the
Distribution Date from the Company, the Rights Agent will, at the Company's
expense, send by first-class, insured, postage prepaid mail, to each record
holder of the Common Stock as of the Close of Business on the Distribution Date,
at the address of such holder shown on the records of the Company, one or more
Rights certificates, in substantially the form of Exhibit B hereto (the "Rights
Certificates"), evidencing one Right for each share of Common Stock so held,
subject to adjustment as provided herein. In the event that an adjustment in the
number of Rights per share of Common Stock has been made pursuant to Section
11(p) hereof, at the time of distribution of the Rights Certificates, the
Company shall make the necessary and appropriate rounding adjustments (in
accordance with Section 14(a) hereof) so that Rights Certificates representing
only whole numbers of Rights are distributed and cash is paid in lieu of any
fractional Rights. As of and after the Distribution Date, the Rights will be
evidenced solely by such Rights Certificates.

          (b)  As promptly as practicable following the Record Date, the Company
will send a copy of a Summary of Rights to Purchase Preferred Stock, in
substantially the form attached hereto as Exhibit C (the "Summary of Rights"),
by first-class, postage prepaid mail, to each record holder of the Common Stock
as of the Close of Business on the Record Date, at the address of such holder
shown on the records of the Company.  With respect to certificates for the
Common Stock outstanding as of the Record Date, until the Distribution Date, the
Rights will be evidenced by such certificates registered in the names of the
holders thereof together with a copy of the Summary of Rights attached thereto.
Until the earlier of the Distribution Date or the Expiration Date, the surrender
for transfer of any certificate representing shares of Common Stock in respect
of which Rights have been issued, with or without a copy of the Summary of
Rights attached thereto, shall also constitute the transfer of the Rights
associated with such shares of Common Stock.

          (c)  Rights shall be issued in respect of all shares of Common Stock
which are issued after the Record Date but prior to the earlier of the
Distribution Date or the Expiration Date or, in certain circumstances provided
in Section 22 hereof, after the Distribution Date.  Certificates representing
such shares of Common Stock shall also be deemed to be certificates for Rights,
and shall bear a legend substantially in the following form:

          This certificate also evidences and entitles the holder hereof to
     certain rights as set forth in the Rights Agreement between Edwards
     Lifesciences Corporation (the "Company") and Equiserve Trust Company, N.A.
     (the "Rights Agent") dated as of March 31, 2000 (the "Rights Agreement"),
     the terms of

                                       5
<PAGE>

one one-hundredths of a share of Preferred Stock (or, following a Triggering
Event, Common Stock, other securities, cash or other assets, as the case may be)
as the Rights Certificate or Certificates surrendered then entitled such holder
(or former holder in the case of a transfer) to purchase. Any registered holder
desiring to transfer, split up, combine or exchange any Rights Certificate or
Certificates shall make such request in writing delivered to the Rights Agent,
and shall surrender the Rights Certificate or Certificates to be transferred,
split up, combined or exchanged at the principal office or offices of the Rights
Agent designated for such purpose. Neither the Rights Agent nor the Company
shall be obligated to take any action whatsoever with respect to the transfer of
any such surrendered Rights Certificate until the registered holder shall have
completed and signed the certificate contained in the form of assignment on the
reverse side of such Rights Certificate and shall have provided such additional
evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or
Affiliates or Associates thereof as the Company or the Rights Agent shall
reasonably request. Thereupon the Rights Agent shall, subject to Section 4(b),
Section 7(e), Section 14 and Section 24 hereof, countersign and deliver to the
Person entitled thereto a Rights Certificate or Rights Certificates, as the case
may be, as so requested. The Company may require payment by the holders of
Rights of a sum sufficient to cover any tax or governmental charge that may be
imposed in connection with any transfer, split up, combination or exchange of
Rights Certificates.

          (b)  Upon receipt by the Company and the Rights Agent of evidence
reasonably satisfactory to them of the loss, theft, destruction or mutilation of
a Rights Certificate, and, in case of loss, theft or destruction, of indemnity
or security reasonably satisfactory to them, and reimbursement to the Company
and the Rights Agent of all reasonable expenses incidental thereto, and upon
surrender to the Rights Agent and cancellation of the Rights Certificates if
mutilated, the Company will execute and deliver a new Rights Certificate of like
tenor to the Rights Agent for countersignature and delivery to the registered
owner in lieu of the Rights Certificate so lost, stolen, destroyed or mutilated.

          Section 7.    Exercise of Rights; Purchase Price; Expiration Date of
                        ------------------------------------------------------
Rights.
------

          (a)  Subject to Section 7(e) hereof, the registered holder of any
Rights Certificate may exercise the Rights evidenced thereby (except as
otherwise provided herein including, without limitation, the restrictions on
exercisability set forth in Section 9(c), Section 11(a)(iii) and Section 23(a)
hereof) in whole or in part at any time after the Distribution Date upon
surrender of the Rights Certificate, with the form of election to purchase and
the certificate on the reverse side thereof duly executed, to the Rights Agent
at the principal office or offices of the Rights Agent designated for such
purpose, together with payment of the aggregate Purchase Price with respect to
the total number of one one-hundredths of a share of Preferred Stock (or other
securities, cash or other assets, as the case may be) as to which such
surrendered Rights are then exercisable, at or prior to the earliest of (i) the
Close of Business on March 31, 2010 (the "Final Expiration Date"), (ii) the time
at which the Rights are redeemed as provided in Section 23 hereof or (iii) the
time at which such Rights are exchanged pursuant to Section 24 hereof (the
earliest of (i), (ii) and (iii) being herein referred to as the "Expiration
Date").  Notwithstanding anything in this Agreement to the contrary, the Rights
shall not be exercisable prior to the Distribution Date.

          (b)  The Purchase Price for each one one-hundredth of a share of
Preferred Stock pursuant to the exercise of a Right shall initially be $80,
and shall be subject to adjustment from time to time as provided in Sections 11
and 13(a) hereof and shall be payable in accordance with paragraph (c) below.

                                       8
<PAGE>

          Equiserve Trust Company, N.A.
          ------------------------------
          525 Washington Blvd.
          ------------------------------
          3rd Floor
          ------------------------------
          Jersey City, N.J. 07310
          ------------------------------
          Attention: Mike Duncan
                    --------------------

Notices or demands authorized by this Agreement to be given or made by the
Company or the Rights Agent to the holder of any Rights Certificate (or, if
prior to the Distribution Date, to the holder of certificates representing
shares of Common Stock) shall be sufficiently given or made if sent by first-
class mail, postage prepaid, addressed to such holder at the address of such
holder as shown on the registry books of the Company.

          Section 27.    Supplements and Amendments.
                         --------------------------

          Prior to the Distribution Date, the Company and the Rights Agent
shall, if the Company so directs, supplement or amend any provision of this
Agreement without the approval of any holders of certificates representing
shares of Common Stock.  From and after the Distribution Date, the Company and
the Rights Agent shall, if the Company so directs, supplement or amend this
Agreement without the approval of any holders of Rights Certificates in order
(i) to cure any ambiguity, (ii) to correct or supplement any provision contained
herein which may be defective or inconsistent with any other provisions herein,
(iii) to shorten or lengthen any time period hereunder, or (iv) to change or
supplement the provisions hereunder in any manner which in the opinion of the
Company may deem necessary or desirable and which shall not adversely affect the
interests of the holders of Rights Certificates (other than an Acquiring Person
or an Affiliate or Associate of an Acquiring Person); provided, this Agreement
                                                      --------
may not be supplemented or amended to lengthen, pursuant to clause (iii) of this
sentence, (A) a time period relating to when the Rights may be redeemed at such
time as the Rights are not then redeemable, or (B) any other time period unless
such lengthening is for the purpose of protecting, enhancing or clarifying the
rights of, and/or the benefits to, the holders of Rights.  Upon the delivery of
a certificate from an appropriate officer of the Company which states that the
proposed supplement or amendment is in compliance with the terms of this Section
27, the Rights Agent shall execute such supplement or amendment.  Prior to the
Distribution Date, the interests of the holders of Rights shall be deemed
coincident with the interests of the holders of Common Stock.

          Section 28.    Successors.
                         ----------

          All the covenants and provisions of this Agreement by or for the
benefit of the Company or the Rights Agent shall bind and inure to the benefit
of their respective successors and assigns hereunder.

          Section 29.    Determination and Actions by the Board of Directors,
                         ----------------------------------------------------
etc.
---

          For all purposes of this Agreement, any calculation of the number of
shares of Common Stock outstanding at any particular time, including for
purposes of determining the particular percentage of such outstanding shares of
Common Stock of which any Person is the Beneficial Owner, shall be made in
accordance with the last sentence of Rule 13d-3(d)(l)(i) of the General Rules
and Regulations under the Exchange Act.  The Board of Directors of the Company
shall have the exclusive power and authority to administer this Agreement and to
exercise all rights and powers specifically granted to the Board of Directors of
the Company or to the Company, or as may be necessary or advisable in the
administration of this Agreement, including, without limitation,

                                       31
<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed as of the day and year first above written.

                              EDWARDS LIFESCIENCES CORPORATION

                              By: /s/ Bruce P. Garren
                                 --------------------------------------
                                    Name: Bruce P. Garren
                                    Title: Corporate Vice President, General
                                           Counsel and Secretary

                               FIRST CHICAGO TRUST COMPANY OF NEW YORK,
                               A DIVISION OF EQUISERVE
                               ---------------------------------------
                              AS RIGHTS AGENT

                              By: /s/ Michael S. Duncan
                                 --------------------------------------
                                    Name: Michael S. Duncan
                                    Title: Director, Corporate Actions

                                      34
<PAGE>

                                                                       Exhibit A
                                                                       ---------

                                    FORM OF

                          CERTIFICATE OF DESIGNATIONS

                                      OF

                 SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

                                      OF

                       EDWARDS LIFESCIENCES CORPORATION

                        Pursuant to Section 151 of the

                       Delaware General Corporation Act

          RESOLVED, that pursuant to the authority vested in the board of
directors (the "Board of Directors") of Edwards Lifesciences Corporation, a
Delaware corporation (the "Corporation"), by the Amended and Restated
Certificate of Incorporation (the "Charter"), the Board of Directors does hereby
create, authorize and provide for the issue of a series of Preferred Stock, par
value $.01 per share, of the Corporation, to be designated "Series A Junior
Participating Preferred Stock" (hereinafter referred to as the "Series A
Preferred Stock"), initially consisting of 3,500,000 shares, and to the extent
that the designations, powers, preferences and relative and other special rights
and the qualifications, limitations or restrictions of the Series A Preferred
Stock are not stated and expressed in the Charter, does hereby fix and herein
state and express such designations, powers, preferences and relative and other
special rights and the qualifications, limitations and restrictions thereof, as
follows (all terms used herein which are defined in the Charter shall be deemed
to have the meanings provided therein):

          Section 1.  Designation and Amount.  The shares of such series shall
                      ----------------------
be designated as "Series A Junior Participating Preferred Stock" and the number
of shares constituting such series shall be 3,500,000.  Such number of shares
may be increased or decreased by resolution of the Board of Directors; provided,
                                                                       --------
that no decrease shall reduce the number of shares of Series A Preferred Stock
to a number less than the number of shares then outstanding plus the number of
shares reserved for issuance upon the exercise of outstanding options, rights or
warrants or upon the conversion of any outstanding securities issued by the
Corporation convertible into shares of Series A Preferred Stock.

                                       1
<PAGE>

          Section 2.  Dividends and Distributions.
                      ---------------------------

          (A)  Subject to the prior and superior rights of the holders of any
shares of any series of Preferred Stock ranking prior and superior to the shares
of Series A Preferred Stock with respect to dividends, the holders of shares of
Series A Preferred Stock shall be entitled to receive, when, as and if declared
by the Board of Directors out of funds legally available for the purpose,
quarterly dividends payable in cash on the first business day of March, June,
September and December in each year (each such date being referred to herein as
a "Quarterly Dividend Payment Date"), commencing on the first Quarterly Dividend
Payment Date after the first issuance of a share or fraction of a share of
Series A Preferred Stock, in an amount per share (rounded to the nearest cent)
equal to the greater of (a) $.01 or (b) subject to the provision for adjustment
hereinafter set forth, 100 times the aggregate per share amount of all cash
dividends, and 100 times the aggregate per share amount (payable in kind) of all
non-cash dividends or other distributions other than a dividend payable in
shares of Common Stock or a subdivision of the outstanding shares of Common
Stock (by reclassification or otherwise), declared on the Common Stock, par
value $1.00 per share, of the Corporation (the "Common Stock") since the
immediately preceding Quarterly Dividend Payment Date, or, with respect to the
first Quarterly Dividend Payment Date, since the first issuance of any share or
fraction of a share of Series A Preferred Stock.  In the event the Corporation
shall at any time after March 10, 2000 (the "Rights Declaration Date") (i)
declare any dividend on Common Stock payable in shares of Common Stock, (ii)
subdivide the outstanding Common Stock, or (iii) combine the outstanding Common
Stock into a smaller number of shares, then in each case the amount to which
holders of shares of Series A Preferred Stock were entitled immediately prior to
such event under clause (b) of the preceding sentence shall be adjusted by
multiplying such amount by a fraction the numerator of which is the number of
shares of Common Stock outstanding immediately after such event and the
denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

          (B)  The Corporation shall declare a dividend or distribution on the
Series A Preferred Stock as provided in paragraph (A) above immediately after it
declares a dividend or distribution on the Common Stock (other than a dividend
payable in shares of Common Stock); provided, however, that, in the event no
                                    --------  -------
dividend or distribution shall have been declared on the Common Stock during the
period between any Quarterly Dividend Payment Date and the next subsequent
Quarterly Dividend Payment Date, subject to the prior and superior rights of the
holders of any shares of any series of Preferred Stock ranking prior to and
superior to the shares of Series A Preferred Stock with respect to dividends, a
dividend of $.01 per share on the Series A Preferred Stock shall nevertheless by
payable on such subsequent Quarterly Dividend Payment Date.

          (C)  Dividends shall begin to accrue and be cumulative on outstanding
shares of Series A Preferred Stock from the Quarterly Dividend Payment Date next
preceding the date of issue of such shares of Series A Preferred Stock, unless
the date of issue of such shares is prior to the record date for the first
Quarterly Dividend Payment Date, in which case dividends on such shares shall
begin to accrue from the date of issue of such shares, or unless the date of
issue is a Quarterly Dividend Payment Date or is a date after the record date
for the determination of holders of shares of Series A Preferred Stock entitled
to receive a quarterly dividend and before such Quarterly Dividend Payment Date,
in either of which events such dividends shall begin to accrue and be cumulative
from such Quarterly Dividend Payment Date.  Accrued but unpaid dividends shall
not bear interest.  Dividends paid on the shares of Series A Preferred Stock in
an amount less than the total amount of such dividends at the time accrued and
payable on such shares shall be allocated pro rata on a share-by-share basis
among all such shares at the time outstanding.  The Board of Directors may fix a

                                       2
<PAGE>

                                                                       Exhibit B
                                                                       ---------

                         [Form of Rights Certificate]

Certificate No. R-                                               ________ Rights

NOT EXERCISABLE AFTER MARCH 31, 2010 OR EARLIER IF REDEEMED OR EXCHANGED BY
THE COMPANY. THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE COMPANY,
AT $.01 PER RIGHT, AND TO EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS
AGREEMENT. UNDER CERTAIN CIRCUMSTANCES, RIGHTS BENEFICIALLY OWNED BY AN
ACQUIRING PERSON (AS SUCH TERM IS DEFINED IN THE RIGHTS AGREEMENT) AND ANY
SUBSEQUENT HOLDER OF SUCH RIGHTS MAY BECOME NULL AND VOID. [THE RIGHTS
REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY OWNED BY A
PERSON WHO WAS OR BECAME AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF AN
ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT).
ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY MAY
BECOME NULL AND VOID IN THE CIRCUMSTANCES SPECIFIED IN SECTION 7(e) OF SUCH
AGREEMENT.]/1/

___________________
/1/ The portion of the legend in brackets shall be inserted only if applicable
and shall replace the preceding sentence.

                                       1
<PAGE>

                              RIGHTS CERTIFICATE

                       Edwards Lifesciences Corporation

          This certifies that _______________, or registered assigns, is the
registered owner of the number of Rights set forth above, each of which entitles
the owner thereof, subject to the terms, provisions and conditions of the Rights
Agreement, dated as of March 31, 2000 (the "Rights Agreement"), between Edwards
Lifesciences Corporation, a Delaware corporation (the "Company"), and Equiserve
Trust Company, N.A. (the "Rights Agent"), to purchase from the Company at any
time prior to 5:00 P.M. (New York time) on March 31, 2010 at the office or
offices of the Rights Agent designated for such purpose, or its successors as
Rights Agent, one one-hundredth of a fully paid, nonassessable share of Series A
Junior Participating Preferred Stock, par value $.01 per share (the "Preferred
Stock"), of the Company, at a purchase price of $80 per one one-hundredth of a
share (the "Purchase Price"), upon presentation and surrender of this Rights
Certificate with the Form of Election to Purchase and related Certificate duly
executed. The number of Rights evidenced by this Rights Certificate (and the
number of shares which may be purchased upon exercise thereof) set forth above,
and the Purchase Price per share set forth above, are the number and Purchase
Price as of March 31, 2000, based on the Preferred Stock as constituted at such
date. The Company reserves the right to require prior to the occurrence of a
Triggering Event (as such term is defined in the Rights Agreement) that, upon
any exercise of Rights, a number of Rights be exercised so that only whole
shares of Preferred Stock will be issued.

          Upon the occurrence of a Section 11(a)(ii) Event (as such term is
defined in the Rights Agreement), if the Rights evidenced by this Rights
Certificate are beneficially owned by (i) an Acquiring Person or an Affiliate or
Associate of any such Acquiring Person (as such terms are defined in the Rights
Agreement), (ii) a transferee of any such Acquiring Person, Associate or
Affiliate, or (iii) under certain circumstances specified in the Rights
Agreement, a transferee of a person who, after such transfer, became an
Acquiring Person or an Affiliate or Associate of such Person, such Rights shall
become null and void and no holder hereof shall have any right with respect to
such Rights from and after the occurrence of such Section 11(a)(ii) Event.

          As provided in the Rights Agreement, the Purchase Price and the number
and kind of shares of Preferred Stock or other securities which may be purchased
upon the exercise of the Rights evidenced by this Rights Certificate are subject
to modification and adjustment upon the happening of certain events, including
Triggering Events.

          This Rights Certificate is subject to all of the terms, provisions and
conditions of the Rights Agreement, which terms, provisions and conditions are
hereby incorporated herein by reference and made a part hereof and to which
Rights Agreement reference is hereby made for a full description of the rights,
limitations of rights, obligations, duties and immunities hereunder of the
Rights Agent, the Company and the holders of the Rights Certificates, which
limitations of rights include the temporary suspension of the exercisability of
such Rights under the specific circumstances set forth in the Rights Agreement.
Copies of the Rights Agreement are on file at the above-mentioned office of the
Rights Agent and are also available upon written request to the Company.

                                       2
<PAGE>

                                                                       Exhibit C
                                                                       ---------

                 SUMMARY OF RIGHTS TO PURCHASE PREFERRED STOCK

          On March 10, 2000, the Board of Directors of Edwards Lifesciences
Corporation (the "Company") declared a dividend distribution of one Right for
each outstanding share of the Company's common stock, par value $1.00 per share
("Common Stock"), to stockholders of record at the Close of Business on
March 31, 2000.  Each Right entitles the registered holder to purchase from
the Company a unit consisting of one one-hundredth of a share (a "Unit") of
Series A Junior Participating Preferred Stock, par value $.01 per share (the
"Preferred Stock"), at a Purchase Price of $80 per Unit, subject to adjustment.
The following is a summary description of the Rights and is qualified in its
entirety by the Rights Agreement (the "Rights Agreement") dated as of March 31,
2000 between the Company and Equiserve Trust Company, N.A., as Rights Agent.

          Initially, the Rights will be attached to all Common Stock
certificates representing shares then outstanding, and no separate Rights
certificates will be distributed.  The Rights will separate from the Common
Stock and the Distribution Date will occur upon the earlier of (i) 10 days
following a public announcement that a person or group of affiliated or
associated persons (an "Acquiring Person") has acquired, or obtained the right
to acquire, beneficial ownership of 15% or more of the outstanding shares of
Common Stock (the "Stock Acquisition Date") or (ii) 10 business days (or such
later date as may be determined by action of the Board of Directors prior to
such time as any person or group becomes an Acquiring Person) following the
commencement of a tender offer or exchange offer which, if consummated, would
result in a person or group beneficially owning 15% or more of the outstanding
shares of Common Stock.

          Until the Distribution Date, (i) the Rights will be evidenced by the
Common Stock certificates and will be transferred with and only with such Common
Stock certificates, (ii) new Common Stock certificates issued after March 31,
2000, will contain a notation incorporating the Rights Agreement by reference
and (iii) the surrender for transfer of any certificates for Common Stock
outstanding will also constitute the transfer of the Rights associated with the
Common Stock represented by such certificate.

          Pursuant to the Rights Agreement, the Company reserves the right to
require prior to the occurrence of a Triggering Event (as defined below) that,
upon any exercise of Rights, a number of Rights be exercised so that only whole
shares of Preferred Stock will be issued.

          The Rights are not exercisable until the Distribution Date and will
expire at the Close of Business on March 31, 2010, unless earlier redeemed by
the Company as described below.

          As soon as practicable after the Distribution Date, Rights
certificates will be mailed to holders of record of the Common Stock as of the
Close of Business on the Distribution Date and, thereafter, the separate Rights
certificates alone will represent the Rights.  Except as otherwise provided in
the Rights Agreement, only shares of Common Stock issued prior to the
Distribution Date will be issued with Rights.

          In the event that, at any time following the Distribution Date, a
person or group becomes an Acquiring Person, each holder of a Right will
thereafter have the right to receive, upon

                                       1
<PAGE>

exercise, Common Stock having a value equal to two times the exercise price of
the Right. If an insufficient number of shares of Common Stock is authorized for
issuance, then the Board would be required to substitute cash, property or other
securities of the Company for the Common Stock. Notwithstanding any of the
foregoing, following the occurrence of the event set forth in this paragraph,
all Rights that are, or (under certain circumstances specified in the Rights
Agreement) were, beneficially owned by any Acquiring Person will be null and
void. However, Rights are not exercisable following the occurrence of the event
set forth in this paragraph until such time as the Rights are no longer
redeemable by the Company as set forth below.

          For example, at an exercise price of $80 per Right, each Right not
owned by an Acquiring Person (or by certain related parties) following an event
set forth in the preceding paragraph would entitle its holder to purchase $160
worth of Common Stock (or other consideration, as noted above) for $80.
Assuming that the Common Stock had a per share value of $40 at such time, the
holder of each valid Right would be entitled to purchase 4 shares of Common
Stock for $80.

          In the event that, at any time following the Stock Acquisition Date,
(i) the Company is acquired in a merger or other business combination
transaction in which the Company is not the surviving corporation, (ii) the
Company is acquired in a merger or other business combination transaction in
which the Company is the surviving corporation and all or part of the Common
Stock is converted into securities of another entity, cash or other property, or
(iii) 50% or more of the Company's assets, cash flow or earning power is sold or
transferred, each holder of a Right (except Rights which previously have been
voided as set forth above) shall thereafter have the right to receive, upon
exercise, common stock of the acquiring company having a value equal to two
times the exercise price of the Right.  The events set forth in this paragraph
and in the second preceding paragraph are referred to as the "Triggering
Events."

          The purchase price payable, and the number of Units of Preferred Stock
or other securities or property issuable, upon exercise of the Rights are
subject to adjustment from time to time to prevent dilution (i) in the event of
a stock dividend on, or a subdivision, combination or reclassification of, the
Preferred Stock, (ii) if holders of the Preferred Stock are granted certain
rights, options or warrants to subscribe for Preferred Stock or convertible
securities at less than the current market price of the Preferred Stock, or
(iii) upon the distribution to holders of the Preferred Stock of evidences of
indebtedness or assets (excluding regular periodic cash dividends) or of
subscription rights or warrants (other than those referred to above).

          With certain exceptions, no adjustment in the Purchase Price will be
required until cumulative adjustments amount to at least 1% of the Purchase
Price.  No fractional Units will be issued and, in lieu thereof, an adjustment
in cash will be made based on the market price of the Preferred Stock on the
last trading day prior to the date of exercise.

          At any time after any person or group becomes an Acquiring Person and
prior to the acquisition by such person or group of 50% or more of the
outstanding shares of Common Stock, the Board of Directors of the Company may
exchange the Rights (other than Rights owned by such person or group which will
have become void), in whole or in part, at an exchange ratio of one share of
Common Stock, or one one-hundredth of a share of Preferred Stock (or of a share
of a class or series of the Company's preferred stock having equivalent rights,
preferences and privileges), per Right (subject to adjustment).

                                       2

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