Document:

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                                                                   EXHIBIT 10.8
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                           BAXTER INTERNATIONAL INC.
        Non-Employee Director Stock Option Plan adopted April 30, 2001
                            [Plan for Annual Grant]
                             Terms and Conditions

              As amended and restated effective February 25, 2002

   1. Purpose

   This Non-Employee Director Stock Option Plan (the "Plan") is adopted by the
Compensation Committee (the "Committee") of the Board of Directors (the
"Board") of Baxter International Inc. ("Baxter"). This Plan is adopted pursuant
to the Baxter International Inc. 2001 Incentive Compensation Program (the
"Program"), for the purposes stated in the Program. Capitalized terms defined
in the Program that are used without being defined in the Plan will have the
same meaning as in the Program.

   2. Participants

   Each member of the Board who is not an employee of Baxter or any of its
subsidiaries shall participate in the Plan (a "Participant").

   3. Awards

      3.1  On the date of Baxter's annual meeting of stockholders (the "Annual
   Meeting") in each year beginning with the Annual Meeting on May 1, 2001, and
   subject to availability of shares of Common Stock under Section 4.2, each
   Participant upon completion of the Annual Meeting shall, automatically and
   without necessity of any action by the Board or any committee thereof, be
   granted an option (an "Option") to purchase the number of shares of Common
   Stock determined pursuant to Section 4.1 of this Plan.

      3.2  Each Participant elected or appointed on a date other than the date
   of an Annual Meeting shall, on the date of such election or appointment and
   automatically and without necessity of any action by the Board or any
   committee thereof, be granted an Option to purchase that number of shares of
   Common Stock equal to the product of (A) the Annual Stock Option Grant
   Amount (as defined in Section 4.1) for each Option granted on the date of
   the immediately preceding Annual Meeting, multiplied by (B) the quotient of
   (i) the number of full calendar months before the next Annual Meeting
   divided by (ii) 12 (rounded to the nearest whole number which is a multiple
   of ten). The number of shares of Common Stock subject to any Option granted
   under this Section 3.2 shall not exceed the number available under Section
   4.2 on the date of grant.

      3.3  The purchase price for each share of Common Stock subject to an
   Option shall be the Fair Market Value of a share of Common Stock on the date
   of grant. The terms of each Option will be as set forth in the Plan and the
   Program. To the extent that any provision of the Plan is inconsistent with
   the Program, the Program shall control. The Options are not intended to
   qualify as Incentive Stock Options within the meaning of Section 422 of the
   United States Internal Revenue Code.

   4. Number of Shares

      4.1  The number of shares of Common Stock subject to each Option granted
   pursuant to this Plan on the date of an Annual Meeting ("Annual Stock Option
   Grant Amount") shall be determined in accordance with this Section 4.1. Each
   Participant shall be assigned an annual stock option target equal to 10,000
   shares of Common Stock, subject to adjustment in accordance with the Program
   ("Annual Stock Option Target"). The Annual Stock Option Grant Amount shall
   be equal to the product of (A) the Annual Stock Option Target multiplied by
   (B) the stock performance multiplier ("Stock Performance Multiplier") set
   forth on Exhibit A attached to this Plan, which is based on Baxter's total
   shareholder return ("Baxter TSR")

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   compared to the total shareholder return for the Standard and Poor's (S&P)
   500 Health Care Index ("HCI TSR") for the 12-month period ending on the most
   recent September 30 prior to the date of an Annual Meeting. The Annual Stock
   Option Grant Amount shall not be more than 150% of the Annual Stock Option
   Target or less than 75% of the Annual Stock Option Target.

      4.2  The total number of shares of Common Stock available for Options
   granted under this Plan shall be 500,000 shares, subject to adjustment in
   accordance with the Program. If on any grant date, the number of shares of
   Common Stock which would otherwise be subject to Options granted under the
   Plan shall exceed the number of shares of Common Stock then remaining
   available under the Plan, the available shares shall be allocated among the
   Options to be granted Participants in proportion to the number of shares
   subject to Options that Participants would otherwise be entitled to receive.

   5. Exercise and Expiration

      5.1  Subject to Section 11.10 of the Program and except as expressly
   provided in Sections 5.5, 5.6 and 5.7, Options shall first become
   exercisable on the first anniversary of the date of grant, or if that date
   is not a Business Day, then on the next succeeding Business Day. A "Business
   Day" is any day on which the Common Stock is traded on the New York Stock
   Exchange.

      5.2  After an Option becomes exercisable and until it expires, it may be
   exercised in whole or in part, in the manner specified by the Company. If
   exercised in part, the Option must be exercised in increments of 100 shares
   of Common Stock or, if the Option is not then exercisable for 100 shares of
   Common Stock, to the full extent the Option can then be exercised. Under no
   circumstances may an Option be exercised after it has expired. Shares of
   Common Stock may be used to pay the purchase price for shares of Common
   Stock to be acquired upon exercise of an Option in accordance with the
   requirements specified by the Company.

      5.3  Except as provided in Sections 5.5, 5.6 and 5.7, if a Participant
   ceases service as a member of the Board before his or her Option becomes
   exercisable, the Option will expire when the Participant ceases service as a
   member of the Board.

      5.4  If a Participant ceases service as a member of the Board after his
   or her Option becomes exercisable, the Option will not expire but will
   remain exercisable. Subject to Sections 5.5, 5.6, 5.7 and 5.8, the Option
   will expire three months after the Participant ceases service as a member of
   the Board, unless the Participant dies or becomes disabled during such three
   month period in which case the Option will expire on the first anniversary
   of the date the Participant ceased serving as a member of the Board.

      5.5  If a Participant dies while serving as a member of the Board, his or
   her Option will not expire and will remain, or immediately become, fully
   exercisable, as the case may be. Subject to Sections 5.7 and 5.8, the Option
   will expire on the first anniversary of the Participant's death.

      5.6  If a Participant becomes disabled and unable to continue service as
   a member of the Board, his or her Option will not expire and will remain, or
   when the Participant ceases to serve as member of the Board become, fully
   exercisable, as the case may be. Subject to Sections 5.7 and 5.8, the Option
   will expire on the first anniversary of the date the Participant ceases
   service as a member of the Board.

      5.7  If a Participant who has served as a member of the Board for a
   continuous period of at least ten years or who is at least 72 years of age
   ceases to serve as a member of the Board (including without limitation by
   reason of death or disability), his or her Option will not expire and will
   remain, or when the Participant ceases to serve as member of the Board
   become, fully exercisable, as the case may be. Subject to Section 5.8, the
   Option will expire on the fifth anniversary of the date the Participant
   ceases service as a member of the Board.

      5.8  Options that have not previously expired will expire at the close of
   business on the tenth anniversary of the date of grant. If an Option would
   expire on a date that is not a Business Day, it will expire at the close of
   business on the last Business Day preceding that date.

      5.9  An exercisable Option may only be exercised by the Participant, his
   or her legal representative, or a person to whom the Participant's rights in
   the Option are transferred by will or the laws of descent and distribution
   or in accordance with rules and procedures established by the Committee.

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   6. General Provisions

      6.1  Subject to the limitations contained in Section 11.9 of the Program,
   the Board or the Committee may, at any time and in any manner, amend,
   suspend, or terminate the Plan or any Option outstanding under the Plan.

      6.2  Participation in the Plan does not give any Participant any right to
   continue as a member of the Board for any period of time or any right or
   claim to any benefit unless such right or claim has specifically accrued
   hereunder.

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                                   EXHIBIT A
                                      To
                            Plan For Annual Grants

Stock Option Performance Multiplier

<TABLE>
<CAPTION>
                                                        Annual Stock
           Baxter TSR Performance TSR Multiplier Target Option Award
           ---------------------- -------------- ------ ------------
           <S>                    <C>            <C>    <C>

            Above HCI TSR by 25%.      150%      10,000    15,000

            Above HCI TSR by 15%.      130%      10,000    13,000

            Above HCI TSR by 10%.      120%      10,000    12,000

           Equal to HCI TSR            100%      10,000    10,000
           ----------------       -------------- ------ ------------

            Below HCI TSR by 10%.       90%      10,000     9,000

            Below HCI TSR by 15%.       85%      10,000     8,500

            Below HCI TSR by 25%.       75%      10,000     7,500
</TABLE>
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   NOTE: Results that fall between performance levels will be interpolated
(e.g., A performance of 12.5% above HCI TSR would equate to a 125% multiplier)

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                                                                  EXHIBIT 10.15
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                           BAXTER INTERNATIONAL INC.

                      OFFICER INCENTIVE COMPENSATION PLAN

   This Officer Incentive Compensation Plan ("Plan") of Baxter International
Inc. ("Baxter") and its subsidiaries (collectively, the "Company") is adopted
pursuant to the Baxter International Inc. 2001 Incentive Compensation Program
(the "Program") for the purposes stated in the Program. The Plan is intended to
comply with the requirements of Section 162(m)(4)(C) of the Internal Revenue
Code of 1986 ("IRC"), as amended, and the related income tax regulations issued
thereunder.

1. Eligibility

   Officers of the Company are eligible to participate in the Plan if the
officer's participation for a calendar year (or portion of such calendar year)
("Plan Year") is approved by the Compensation Committee of the Board of
Directors of Baxter ("Committee"). Officers so approved by the Committee shall
be referred to herein as "Participants".

2. Bonus Award

   2.1 For each Plan Year, each Participant shall be eligible to receive a cash
payment ("Bonus Award") in accordance with the terms provided herein and any
other terms established by the Committee. To determine a Participant's Bonus
Award, the Committee shall establish a) Company performance goals for the Plan
Year which will include one or more of the following performance measures: net
income, operational cash flow, sales, the Common Stock price of Baxter,
earnings per share, total shareholder return, gross profit ratio, economic
value added, return on assets, and return on equity ("Company Performance
Criteria"), b) a "Bonus Range" for each Participant for the Plan Year, and c)
the amount within a Participant's Bonus Range that will be payable to a
Participant based upon the achievement of the Company Performance Criteria for
the Plan Year. The terms described in the preceding sentence must be
established by April 1 of the Plan Year, and such terms shall not thereafter be
changed, except as permitted by paragraph 2.2.

   2.2 By March 31 of each year, the Committee shall assess the extent to which
the Company has achieved the Company Performance Criteria for the preceding
Plan Year, based on the Company's publicly reported results. The Committee
shall exclude the effect of acquisitions, divestitures, changes in accounting
principles, and other extraordinary or non-recurring events which occurred
during the Plan Year when assessing the extent to which the Company has
achieved the Company Performance Criteria for such Plan Year, but only if such
exclusion would enhance the Company's performance relative to the Company
Performance Criteria. The exclusion authorized by the preceding sentence shall
only apply to the extent it is consistent with IRC Section 162(m)(4)(C) and the
related regulations described above. The Committee shall then determine each
Participant's Bonus Award based upon the terms described in paragraph 2.1
above. The Committee, however, has the discretion to reduce the amount of a
Participant's Bonus Award determined under the preceding sentence. The
Committee's determination shall be consistent with IRC Section 162(m)(4)(C) and
the related regulations described above. No Participant shall receive a Bonus
Award in excess of $3.0 million for any Plan Year for which the Participant is
subject to IRC Section 162(m). The committee may exercise discretion in the
determination of the Bonus Awards earned under the Plan with respect to
participants who are not subject to IRC Section 162(m).

   2.3 If an officer's participation in the Plan becomes effective after
January 1 of a Plan Year, the Committee shall establish a prorated Bonus Range
for such Participant based on the number of full months remaining in the Plan
Year after he or she becomes a Participant. To the extent applicable, the
determination of a prorated Bonus Range shall be consistent with IRC Section
162(m)(4)(C) and the related regulations described above.

3. Payment

   3.1 Except as otherwise determined by the Committee and except with respect
to Participants who have filed deferral elections pursuant to paragraph 4, all
Bonus Awards will be paid in cash as soon as possible following determination
of Bonus Awards by the Committee.

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   3.2 No Participant will be eligible to receive a Bonus Award for a Plan Year
unless he or she continues to be employed by the Company through February 1 of
the following year except as otherwise determined by the Committee. The
Committee's Bonus Award determination with respect to such participant may be
determined in the same manner as provided in paragraphs 2.1 and 2.2 above.

4. Deferral of Payment

   Participants may elect to defer payment in accordance with the Baxter
International Inc. and Subsidiaries Deferred Compensation Plan.

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