Document:

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                                                                   Exhibit 10(p)

                             EMPLOYMENT AGREEMENT
                             --------------------

          AGREEMENT made as of this 27/th/day of November, 2000, by and between
Merck-Medco Managed Care, L.L.C., a Delaware limited liability company ("Merck-
                                                                         -----
Medco") and Per G.H. Lofberg (the "Employee").
------                             ---------

          WHEREAS, the Employee has been and is currently employed by Merck-
Medco pursuant to an employment agreement dated April 1, 1993, as amended July
27, 1993 and May 24, 1996 (the "Former Agreement");
                                ----------------

          WHEREAS, Merck-Medco, the Employee and certain other members have
entered into a Limited Liability Corporation Agreement, dated as of November 27,
2000 (the "LLC Agreement"), pursuant to which the Employee will become a member
           -------------
of Merck Capital Ventures, L.L.C. ("MCV"); and
                                    ---

          WHEREAS, Merck-Medco desires that the Employee continue his employment
with Merck-Medco by providing services to MCV as the Chief Executive Officer and
President of MCV and the Employee is willing to render such services to MCV on
behalf of Merck-Medco on the terms and conditions set forth herein.

          NOW, THEREFORE, in consideration of the mutual covenants contained
herein, the parties hereto agree as follows:

          1.   Employment Term.  Subject to the terms and provisions of this
               ---------------
Agreement, Merck-Medco hereby agrees to employ the Employee and the Employee
hereby agrees to be employed by Merck-Medco for the period commencing on the
date hereof (the "Commencement Date") and ending on the second anniversary of
                  ------------------
the Commencement Date, unless extended as provided below or terminated sooner as
provided in Section 5 hereof (the "Employment Term"); provided, however, that on
                                   ----------------   --------  -------
the second anniversary of the Commencement Date and on each anniversary
thereafter, the Employment Term shall be automatically extended for an
additional one (1) year period so long as neither Merck-Medco nor the Employee
has provided the other party with not less than sixty (60) days prior written
notice that the Employment Term shall not be so extended.

          2.   Position and Duties.  During the Employment Term the Employee
               -------------------
shall, on behalf of Merck-Medco, serve as the Chief Executive Officer and
President of MCV with the principal responsibility of assisting MCV in building
a venture capital portfolio primarily in E-healthcare companies and assisting
any such portfolio company (a "Portfolio Company") in achieving business
                               -----------------
objectives in its dealings with
<PAGE>

Merck & Co. Inc., a New Jersey corporation ("Merck"), Merck-Medco, and other
corporations, and in such regard shall be responsible for (i) developing and
implementing strategy, lead generation, investment decisions and investment
evaluation for MCV, (ii) coordinating with the appropriate business contacts at
Merck-Medco and Merck, (iii) building relationships with entrepreneurs and
relevant individuals within the investment community, (iv) recruiting, and (v)
overseeing MCV's investment portfolio. The Employee shall report solely and
directly to Judy Lewent, or to Chairman of the Board of MCV if Judy Lewent shall
cease to be Chairman of the Board of MCV, and shall perform such other duties,
services and responsibilities as may from time to time be requested by Ms.
Lewent or the Chairman of the Board, including without limitation, serving as an
officer, advisor or board member, where appropriate, for any Portfolio
Companies. During the Employment Term, the Employee's primary business activity
shall be the performance of his duties, services and responsibilities set forth
herein and the Employee will use his best efforts to promote the interests of
Merck-Medco and MCV; provided, however, that during the Employment Term, the
                     --------  -------
Employee shall not engage in any other business activities on behalf of third
parties which interfere with the performance of Employee's duties hereunder.
Notwithstanding the foregoing, the Employee shall be entitled to (a) serve on
corporate, civic or charitable boards or committees, (b) deliver lectures,
fulfill speaking engagements or teach at educational institutions, and (c)
manage private investments, in the case of each of (a) through (c), so long as
such activities do not materially interfere with the performance of Employee's
duties hereunder or create a conflict of interest.

          3.   Location.  The Employee shall perform his duties hereunder
               --------
primarily at Merck-Medco's Paragon building, and shall perform duties at such
other locations as are reasonably designated by the Chairman of the Board.

          4.   Compensation and Benefits.
               -------------------------

               4.1  Base Salary.  In consideration of the performance of all of
                    -----------
the Employee's obligations during the Employment Term (including any services as
an officer or director of Merck-Medco or MCV, member of any committee of the
Board of Managers of MCV (the "Board") or board member of any Portfolio Company,
                               -----
or otherwise), Merck-Medco will during the Employment Term pay the Employee a
base salary (the "Salary") at an annual rate of $150,000, subject to review each
                  ------
year by the Board.  The Salary shall be payable in accordance with Merck-Medco's
normal payroll practices.  All payments and benefits hereunder shall be subject
to all applicable taxes required to be withheld pursuant to federal, state or
local law.

               4.2  Benefits.  During the Employment Term, the Employee (and his
                    --------
dependents, if eligible thereunder) shall continue to be eligible to participate
in all existing employee benefit plans, programs and policies of Merck-Medco in
which he was eligible to participate immediately prior to the Commencement Date
in

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accordance with their terms and conditions as they may be amended from time
to time, and such other employee benefit plans, programs and policies of Merck-
Medco which are hereafter established by Merck-Medco and which by their terms
provide for the participation therein by the Employee.  Payments received by the
Employee under the terms of the LLC Agreement shall not constitute compensation
for purposes of any employee benefit plan, program or policy of Merck-Medco in
which the Employee is, or becomes, eligible to participate.  Options granted to
the Employee to purchase shares of Merck common stock will continue to vest to
the extent provided for in, and in accordance with their terms under, the Former
Agreement but no additional options to purchase Merck common stock will be
granted to the Employee during the Employment Term.

          5.   Termination.  The Employee's employment with Merck-Medco and the
               -----------
Employment Term shall terminate upon the expiration of the Employment Term or
upon the earlier occurrence of any of the following events of termination:

               (a)  By Merck-Medco (other than for Cause) upon prior written
notice.

               (b)  By the Employee upon sixty (60) days prior written notice.

               (c)  By Merck-Medco for Cause upon written notice (the "Cause
Notice") to the Employee specifying the conduct constituting Cause. "Cause"
                                                                     -----
shall mean (i) the continued failure by the Employee to substantially perform
the Employee's duties hereunder (other than any such failure resulting from the
Employee's incapacity due to physical or mental illness), (ii) the Employee's
engaging in conduct which is demonstrably and materially injurious to Merck-
Medco, MCV or any of their affiliates, monetarily or otherwise, (iii) the
conviction of the Employee for the commission of (A) a felony or (B) any other
crime involving moral turpitude, (iv) the Employee's violation of any material
Merck-Medco employment policies or codes of conduct, or (v) a material breach by
the Employee of any provision of this Agreement or the LLC Agreement, including
without limitation, any breach of the employee covenants included in Section 7
hereof. Notwithstanding the foregoing, the Employee shall have a period of 30
days following delivery of the Cause Notice during which he may cure any
condition, act or failure to act specified in the Cause Notice as constituting
Cause, to the extent such condition, act or failure to act is capable of being
cured; provided, however, that if the condition, act or failure to act can not
       --------  -------
reasonably be cured in 30 days, it will be deemed cured if the Employee
commences to cure such condition, act or failure to act within the 30-day period
following delivery of the Cause Notice and completes such cure to the reasonable
satisfaction of Merck-Medco within the 60-day period following delivery of the
Cause Notice.  If the Employee does not cure each such condition, act or failure
to act and the Employee's employment is terminated for Cause, for all purposes
of this Agreement and the LLC Agreement the effective date of such termination
shall be the date of delivery of the Cause Notice.

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               (d)  By reason of the Disability of the Employee. The Employee
shall be considered to be disabled after he has been unable fully to perform his
duties hereunder (as determined in good faith by the Board), with reasonable
accommodation as required by law, by reason of physical or mental illness for
180 days during any 360 day period ("Disability"). Notwithstanding the
                                     ----------
foregoing, whether or not the Employee is eligible for disability benefits under
the benefit plans, programs and policies of Merck-Medco, shall be determined
solely in accordance with the terms and conditions of such plans, programs and
policies, as they may be amended from time to time, and whether or not the
Employee shall be considered disabled for purposes of this Agreement, shall be
determined solely in accordance with the terms and conditions of this Section
5(d).

               (e)  By reason of the death of the Employee ("Death").
                                                             -----

In the event of termination of the Employment Term, for whatever reason, (i) the
Employee shall cooperate with Merck-Medco and MCV and be reasonably available to
Merck-Medco and MCV with respect to continuing and/or future matters arising out
of the Employee's employment or any other relationship with Merck-Medco and MCV,
whether such matters are business-related, legal or otherwise and (ii) the
Employee shall, unless otherwise requested by the Board, resign immediately from
his membership on the Board and the board of any Portfolio Company.

          6.   Termination Payments.  Upon termination of the Employee's
               --------------------
employment and the Employment Term for any reason, Merck-Medco shall pay the
Employee (or in the case of his Death, his estate) the Salary hereunder and
unpaid as of the date of termination.  The foregoing payments upon termination
of employment shall constitute the exclusive payments due the Employee upon
termination of Employee's employment, but such payments shall have no effect on
(i) any benefits which may be due the Employee under any plan, program or policy
of Merck-Medco in which the Employee is participating on the date of such
termination of employment in accordance with their terms, (ii) the Employee's
entitlement pursuant to the terms of the LLC Agreement, and/or (iii) the
Employee's rights, if any, with respect to any unexercised options to acquire
Merck common stock held by the Employee on the date of such termination of
employment.

          7.   Employee Covenants.
               ------------------

               7.1  Work made for Hire.  (a) The Employee recognizes and
                    ------------------
understands that his duties under this Agreement include or may include the
preparation of works and other written or graphic materials relating directly or
indirectly to the business of Merck-Medco, MCV and their affiliates and that
each such work has been or will be prepared by the Employee as an employee
within the scope of the Employee's employment hereunder, and constitutes a "work
made for hire" as that phrase is used in 17 U.S.C. (S) 101 et seq.  The Employee
understands that MCV is considered the author of each "work made for hire" and
exclusively owns all

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of the rights to such work. The Employee understands that as owner of each
copyright, MCV has the exclusive rights to use, reproduce, distribute and
publicly display the work. Without limiting the foregoing, to the extent
necessary, the Employee assigns and agrees to assign all intellectual property
rights in all such works and other written or graphic materials, and agrees to
execute all documents necessary to effectuate such assignments.

               (b)  The Employee will promptly disclose to the Board or to any
persons designated by the Board all inventions, discoveries, improvements, works
of authorship, computer programs, machines, methods of analysis concepts,
formulas, compositions, ideas, designs, processes, techniques, know-how and
data, or other intellectual property reduced to any tangible form, whether or
not patentable (collectively "Inventions") made or conceived or reduced to
                              ----------
practice or developed by the Employee, either alone or jointly with others,
during the Employment Term. The Employee will also disclose to the Board
Inventions conceived, reduced to practice, or developed by him within six months
following the termination of the Employment Term; such disclosures shall be
received by the Board in confidence (to the extent they are not assigned under
this Agreement) and do not extend the assignment made in this Agreement. The
Employee agrees to keep and maintain adequate and current written records of all
Inventions made by the Employee (in the form of notes, sketches, drawings and
other records as may be specified by Merck-Medco and/or MCV), which records
shall be available to and remain the sole property of either Merck-Medco and/or
MCV, as appropriate, at all times.

               (c)  The Employee agrees to perform, during and after the
Employment Term, all acts deemed necessary or desirable by Merck-Medco to permit
and assist Merck-Medco and/or MCV, at Merck-Medco's sole expense, in evidencing,
perfecting, obtaining, maintaining, defending and enforcing rights of Merck-
Medco and/or MCV and/or the Employee's assignment with respect to such
Inventions in any and all countries.

               (d)  The Employee understands that any Invention which he
develops entirely on his own time not using any of Merck-Medco's or MCV's
equipment, supplies, facilities, or trade secret information ("Personal
                                                               --------
Invention") is excluded from this Agreement provided such Personal Invention (i)
---------
does not relate at the time of conception or reduction to practice to Merck-
Medco's or MCV's or their affiliates' businesses, or research or development of
Merck-Medco and/or MCV or their affiliates; and (ii) does not result from any
work performed by the Employee for Merck-Medco and/or MCV. It is understood that
all Personal Inventions made by the Employee prior to his employment by Merck-
Medco are excluded from this Agreement. The Employee agrees to notify Merck-
Medco in writing before making any disclosure or performing work on behalf of
Merck-Medco or MCV or Merck which appears to threaten or conflict with
proprietary rights the Employee claims in

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any Personal Invention. In the event of the Employee's failure to give such
notice, the Employee agrees that he will make no claim against Merck-Medco or
MCV with respect to any such Personal Invention.

               7.2  Unauthorized Disclosure.  The Employee agrees and
                    -----------------------
understands that in the Employee's position with Merck-Medco during the
Employment Term, the Employee has been and will be exposed to and receive
information relating to the business affairs of Merck-Medco, MCV, their
affiliates and Portfolio Companies, including but not limited to technical
information, business and marketing plans, strategies, customer information,
other information concerning Merck-Medco's, MCV's, their affiliates' and
Portfolio Companies' products, promotions, development, financing, expansion
plans, business policies and practices, and other forms of information
considered by such entities to be confidential and in the nature of trade
secrets.  The Employee agrees that during the Employment Term and thereafter,
the Employee will keep such information confidential and not disclose such
information, either directly or indirectly, to any third person or entity
without the prior written consent of Merck-Medco (unless such information is
otherwise in the public domain through no fault of the Employee); provided,
                                                                  --------
however, that nothing in this Section 7.2 shall prevent the Employee with or
-------
without Merck-Medco's consent, from disclosing documents or information (i) in
connection with the Employee's performance of his duties and responsibilities
hereunder in the ordinary course of business as an officer of Merck-Medco, or
(ii) in connection with any judicial or administrative investigation, inquiry or
proceeding, provided the Employee  is compelled to do so by court order or
subpoena and notifies Merck-Medco as soon as practicable after the receipt of
such court order or subpoena.  This confidentiality covenant has no temporal,
geographical or territorial restriction.

               7.3  Non-competition.  By and in consideration of Merck-Medco's
                    ---------------
entering into this Agreement and the payments and benefits to be provided (i) by
Merck-Medco hereunder and (ii) pursuant to the LLC Agreement, and further in
consideration of the Employee's exposure to the proprietary information of
Merck-Medco and MCV, the Employee agrees that the Employee will not;

                    (A)  during the Employment Term, directly or indirectly,
own, manage, operate, join, control, be employed by, or participate in the
ownership, management, operation or control of, or be connected in any manner,
including but not limited to, holding the position of shareholder (except as a
holder of not more than one percent (1%) of the outstanding shares of a
publicly-held corporation or as a passive investor holding not more than three
percent (3%) of the equity interests in a venture capital fund), director,
officer, consultant, independent contractor, employee, partner, or investor,
with any person, corporation, partnership or other entity engaged in a business
which is in competition, directly or indirectly, (1) with any business of MCV or
any business in which MCV proposes or intends to engage or (2) any significant

                                       6
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business (whether financially, strategically or otherwise significant) (each a
"Significant Business") of any Portfolio Company or any Significant Business in
which any Portfolio Company proposes or intends to engage, and

                    (B)  during the two-year period following the termination of
the Employee's employment hereunder (the "Restriction Period"), directly or
                                          ------------------
indirectly, own, manage, operate, join, control, be employed by, or participate
in the ownership, management, operation or control of, or be connected in any
manner, including but not limited to, holding the position of shareholder
(except as a holder of not more than one percent (1%) of the outstanding shares
of a publicly-held corporation or as a passive investor holding not more than
three percent (3%) of the equity interests in a venture capital fund), director,
officer, consultant, independent contractor, employee, partner, or investor,
with any person, corporation, partnership or other entity that directly or
indirectly manages, owns in whole or in part, is a partner with or in, invests
in or otherwise controls any entity engaged in a business which is in
competition, directly or indirectly, with (i) any Significant Business of any
Portfolio Company or any Significant Business in which any Portfolio Company
proposes or intends, as of the date of termination of employment, to engage, or
(ii) any business of any entity which, as of the date of the Employee's
termination of employment, MCV or any Portfolio Company is considering as a
potential Portfolio Company or acquisition, and which within six months
following such termination date, becomes a Portfolio Company or is acquired by a
Portfolio Company.  For purposes of this Section 7.3, the term "Portfolio
Company" shall not include any entity from and after the date it shall have
ceased to be a Portfolio Company as defined in the LLC Agreement or, if later,
the date on which Merck-Medco and its Affiliates and Associates shall cease to
beneficially own, directly or indirectly, any equity interest in such entity.

Following termination of the employee's employment, upon request, the Employee
shall notify Merck-Medco of the Employee's then current employment status.

               7.4  Non-solicitation and Non-disparagement.  (a) The Employee
                    --------------------------------------
agrees that during the Employment Term and thereafter during the Restriction
Period, he will not intentionally or knowingly, directly or indirectly, (i)
interfere with MCV's or any Portfolio Company's or any of their respective
affiliates' relationship with, or endeavor to entice away from MCV or any
Portfolio Company or any of their respective affiliates, any individual, person,
firm, corporation or other business entity who at any time during the Employment
Term was an employee or customer of MCV or any Portfolio Company or any of their
respective affiliates or otherwise had a material business relationship with MCV
or any Portfolio Company or any of their respective affiliates, (ii) hire any
individual person who at any time during the Employment Term was an employee of
MCV or any Portfolio Company, or (iii) discourage, or attempt to discourage, any
individual, person, firm, corporation or

                                       7
<PAGE>

business entity from doing business with MCV or any Portfolio Company or any of
their respective affiliates. The Employee agrees that during the Employment Term
and thereafter, he will not intentionally or knowingly, directly or indirectly,
make or publish any negative or disparaging statements, comments or remarks
regarding MCV or any Portfolio Company or any of their respective subsidiaries,
affiliated entities, directors, or senior officers.

                    (b)  Merck-Medco agrees that during the Employment Term and
thereafter during the Restriction Period, it will use its best efforts to
prohibit its officers and directors and the officers and directors of MCV from
knowingly discouraging any individual, person, firm, corporation or other
business entity from investing in, or otherwise doing business with, any venture
capital fund for which the Employee is a managing director or chief executive
officer; provided, however, that the officers and directors of the Merck-Medco
         --------  -------
and MCV will not be prohibited from disclosing to such third parties, the actual
investment results of MCV.  Notwithstanding the foregoing, in the event that
Merck-Medco terminates the employment of the Employee by reason of (i) the
Employee's conviction of a crime involving moral turpitude, or (ii) the
Employee's dishonestly, malfeasance or fraud in connection with the performance
of his duties hereunder or that otherwise is demonstrably and materially
injurious to Merck-Medco, MCV or any of their affiliates, Merck-Medco will not
be required to comply with the provisions of this Section 7.4(b) and this
Section 7.4(b) shall be null and void.

               7.5  Remedies.  The Employee agrees that any breach of the terms
                    --------
of this Section 7 would result in irreparable injury and damage to Merck-Medco
for which Merck-Medco would have no adequate remedy at law; the Employee
therefore also agrees that in the event of said breach or any threat of breach,
Merck-Medco shall be entitled to an immediate injunction and restraining order
to prevent such breach and/or threatened breach and/or continued breach by the
Employee and/or any and all persons and/or entities acting for and/or with the
Employee, without having to prove damages, and to all costs and expenses,
including reasonable attorneys' fees and costs, in addition to any other
remedies to which Merck-Medco may be entitled at law or in equity.  The terms of
this paragraph shall not prevent Merck-Medco from pursuing any other available
remedies for any breach or threatened breach hereof, including but not limited
to the recovery of damages from the Employee.  The Employee and Merck-Medco
further agree that the provisions of this Section 7 are reasonable and Merck-
Medco would not have entered into this Agreement but for their inclusion herein.
Should a court or arbitrator determine that any provision of the covenant not to
compete is unreasonable, either in period of time, geographical area, or
otherwise, the parties hereto agree that the covenant should be interpreted and
enforced to the maximum extent which such court or arbitrator deems reasonable.

                                       8
<PAGE>

          The provisions of this Section 7 shall survive any termination of the
Employment Term, and the existence of any claim or cause of action by the
Employee against Merck-Medco, MCV, Merck or any Portfolio Company, whether
predicated on this Agreement or otherwise, shall not constitute a defense to the
enforcement by Merck-Medco of the covenants and agreements of this Section 7.

          8.   Non-Waiver of Rights.  The failure to enforce at any time the
               --------------------
provisions of this Agreement or to require at any time performance by the other
party of any of the provisions hereof shall in no way be construed to be a
waiver of such provisions or to affect either the validity of this Agreement or
any part hereof, or the right of either party to enforce each and every
provision in accordance with its terms.

          9.   Notices.  All notices required or permitted under this Agreement
               -------
shall be in writing and shall be deemed effective upon personal delivery or upon
deposit in the United States Post Office, by registered or certified mail,
postage prepaid, addressed to the other party at the address shown below, or at
such other address or addresses as either party shall designate to the other in
accordance with this Section 9.

          If to Merck-Medco:

                    Merck-Medco Managed Care, L.L.C.
                    c/o Merck & Co. Inc.
                    1 Merck Drive
                    Whitehouse Station, NJ 08889
                    Fax  No.: (908) 735 1244
                    Attn: Ken Frazier

          If to the Employee:

                    Per G. H. Lofberg
                    63 East 92/nd/ Street
                    New York, NY 10128
                    Fax No.: (212) 423-3043

          10.  Binding Effect/Assignment.  This Agreement shall inure to the
               -------------------------
benefit of and be binding upon the parties hereto and their respective heirs,
executors, personal representatives, estates, successors (including, without
limitation, by way of merger) and permitted assigns.  Notwithstanding the
provisions of the immediately preceding sentence, the Employee shall not assign
all or any portion of this Agreement without the prior written consent of Merck-
Medco.

                                       9
<PAGE>

          11.  Entire Agreement.  Except as otherwise provided in this Section
               ----------------
11, this Agreement sets forth the entire understanding of the parties hereto
with respect to the subject matter hereof and supersedes all prior agreements
and plans, written or oral between them as to such subject matter.
Notwithstanding the foregoing, the Former Agreement shall continue in full force
and effect during the Employment Term and following the Employee's termination
of employment with Merck-Medco as specified in the Former Agreement; provided,
however, that neither MCV nor any Portfolio Company shall be deemed an affiliate
of Merck-Medco for purposes of the Former Agreement.

          12.  Severability.  If any provision of this Agreement, or any
               ------------
application thereof to any circumstances, is invalid, in whole or in part, such
provision or application shall to that extent be severable and shall not affect
other provisions or applications of this Agreement.

          13.  Governing Law.  This Agreement shall be governed by and construed
               -------------
in accordance with the internal laws of the State of New Jersey, without
reference to the principles of conflict of laws.

          14.  Modifications and Waivers.  No provision of this Agreement may be
               -------------------------
modified, altered or amended except by an instrument in writing executed by the
parties hereto.  No waiver by either party hereto of any breach by the other
party hereto of any provision of this Agreement to be performed by such other
party shall be deemed a waiver of similar or dissimilar provisions at the time
or at any prior or subsequent time.

          15.  Headings.  The headings contained herein are solely for the
               --------
purposes of reference, are not part of this Agreement and shall not in any way
affect the meaning or interpretation of this Agreement.

          16.  Counterparts.  This Agreement may be executed in two or more
               ------------
counterparts, each of which shall be deemed to be an original but all of which
together shall constitute one and the same instrument.

                                       10
<PAGE>

          IN WITNESS WHEREOF, Merck-Medco has caused this Agreement to be
executed by authority of its board of directors, and the Employee has hereunto
set his hand, the day and year first above written.

                              MERCK-MEDCO MANAGED CARE, L.L.C.

                              By:_____________________________________________
                                  Name:
                                  Title:

                              ________________________________________________
                                  Per G.H. Lofberg

                                       11<PAGE>

                                                                   Exhibit 10.28
--------------------------------------------------------------------------------

                              CONSULTING AGREEMENT
                              --------------------

          This Consulting Agreement (this "Agreement") is entered into as of May
1, 2000 (the "Effective Date") between Baxter International Inc., a Delaware
corporation (the "Company"), and Arnold J. Levine, Ph.D. (the "Consultant").

          WHEREAS, the Company desires to obtain the benefit of the Consultant's
knowledge and experience by retaining the Consultant, and the Consultant desires
to accept such position, upon the terms and subject to the conditions set forth
herein.

          NOW, THEREFORE, in consideration of the mutual promises and agreements
contained herein, the adequacy and sufficiency of which are hereby acknowledged,
the Company and the Consultant hereby agree as follows:

     1.  Term of Agreement.  The Company hereby agrees to retain the Consultant
as a consultant, and the Consultant hereby agrees to be retained by the Company,
upon the terms and subject to the conditions hereof for the period (the
"Consulting Period") commencing on the Effective Date and ending on the date
which is the tenth annual anniversary of the Effective Date, unless earlier
terminated pursuant to Section 5 hereof.

     2.  Consulting Services.  During the Consulting Period, the Consultant
shall make himself available to perform consulting services with respect to the
businesses conducted by the Company.  Such consulting services shall be related
to such matters as the Chief Executive Officer of the Company may designate from
time to time.  The Consultant shall comply with reasonable requests for the
Consultant's consulting services and shall devote reasonable time and his
reasonable best efforts, skill and attention to the performance of such
consulting services, including travel reasonably required in the performance of
such consulting services.

     3.  Independent Contractor Status.  The Consultant shall perform the
consulting services described in Section 2 hereof as an independent contractor
without the power to bind or represent the Company for any purpose whatsoever.
The Consultant shall not, by virtue of being a consultant hereunder, be eligible
to receive any employee benefits for which officers or other employees of the
Company are eligible at any time.  The Consultant hereby acknowledges his
separate responsibility for all federal and state withholding taxes, Federal
Insurance Contribution Act taxes and workers' compensation and unemployment
compensation taxes, if applicable, and agrees to indemnify and hold the Company
harmless from any claim or liability therefor.

     4.  Compensation.  As compensation for the consulting services to be
performed by the Consultant hereunder, the Consultant shall upon the completion
of each year during the Consulting Period earn the right to receive, subject to
Section 4 of the Restricted Stock Award Agreement attached hereto as Exhibit 1
(the "Restricted Stock"), 1,000 of the restricted shares of Company common stock
described in the Restricted Stock Award on the anniversary of the Effective
Date.  The Company shall reimburse the Consultant, in accordance with the
Company's policies and procedures,

                                       7

<PAGE>

for all proper expenses incurred by the Consultant in providing consulting
services hereunder.

     5.  Termination.

     (a) This Agreement may be terminated at any time by the Company upon
     written notice to the Consultant, or by the Consultant upon written notice
     to the Company at which time the Restricted Stock earned by the Consultant
     shall vest or be forfeited as specified in Section 4 of the Restricted
     Stock Award Agreement.

     (b) In the event of termination by the Company pursuant to paragraph (a)
     above or termination due to Disability (as defined in the Restricted Stock
     Award Agreement) or death, the Consultant shall earn for the year in which
     such termination occurred a pro rata share of the 1,000 shares which would
     have been earned by the Consultant pursuant to Section 4 hereof upon the
     completion of such year, and the Company shall reimburse the Consultant for
     expenses incurred by the Consultant pursuant to Section 4 hereof prior to
     the date of such termination.  Such pro rata share shall be determined by
     multiplying 1,000 by a fraction, the numerator of which is the number of
     months beginning on May 1 and ending on the date the Company terminates the
     Consultant's employment (rounding up to the next month), and the
     denominator of which is 12.

     6.  Noncompetition; Nonsolicitation.

     (a) The Consultant acknowledges that during the Consulting Period he will
     become familiar with trade secrets and other confidential information
     concerning the Company and its subsidiaries and that his services will be
     of special, unique and extraordinary value to the Company and its
     subsidiaries.

     (b) The Consultant agrees that during the Consulting Period he shall not
     (i) in any manner, directly or indirectly, induce or attempt to induce any
     employee of the Company or any of its subsidiaries to terminate or abandon
     his or her employment for any purpose whatsoever or (ii) in connection with
     any business, in which the Consultant was involved or had knowledge, being
     conducted by, or contemplated by, the Company or any of its subsidiaries
     during the Consulting Period in any geographic area in which the Company or
     any of its subsidiaries is then conducting such business, call on, service,
     solicit or otherwise do business with any customer of the Company or any of
     its subsidiaries.

     (c) If, at any time of enforcement of this Section 6, a court or an
     arbitrator holds that the restrictions stated herein are unreasonable under
     circumstances then existing, the parties hereto agree that the maximum
     period, scope or geographical area reasonable under such circumstances
     shall be substituted for the stated period, scope or area and that the
     court or arbitrator shall be allowed to revise the restrictions contained
     herein to cover the maximum period, scope and area permitted by law.  This
     Agreement shall not authorize a court or arbitrator to increase or broaden
     any of the restrictions in this Section.

     7.  Confidentiality.  The Consultant shall not, at any time during the
Consulting Period or thereafter, make use of or disclose, directly or
indirectly, any (i) trade secret or other confidential or secret information of
the Company or of any of its

                                       8

<PAGE>

subsidiaries or (ii) other technical, business, proprietary or financial
information of the Company or of any of its subsidiaries not available to the
public generally or to the competitors of the Company or to the competitors of
any of its subsidiaries ("Confidential Information"), except to the extent that
such Confidential Information (a) becomes a matter of public record or is
published in a newspaper, magazine or other periodical available to the general
public, other than as a result of any act or omission of the Consultant, (b) is
required to be disclosed by any law, regulation or order of any court or
regulatory commission, department or agency, provided that the Consultant gives
prompt notice of such requirement to the Company to enable the Company to seek
an appropriate protective order, or (c) is necessary to perform properly the
Consultant's duties under this Agreement. Promptly following the termination of
the Consulting Period, the Consultant shall surrender to the Company all
records, memoranda, notes, plans, reports, computer tapes and software and other
documents and data which constitute Confidential Information which he may then
possess or have under his control (together with all copies thereof).

     8.  Enforcement.  The parties hereto agree that the Company and its
subsidiaries would be damaged irreparably in the event that any provision of
Section 6 or 7 of this Agreement were not performed in accordance with its terms
or were otherwise breached and that money damages would be an inadequate remedy
for any such nonperformance or breach.  Accordingly, the Company and its
successors and permitted assigns shall be entitled, in addition to other rights
and remedies existing in their favor, to an injunction or injunctions to prevent
any breach or threatened breach of any of such provisions and to enforce such
provisions specifically (without posting a bond or other security).  The
Consultant agrees that he will submit himself to the personal jurisdiction of
the courts of the State of Illinois in any action by the Company to enforce an
arbitration award against him or to obtain interim injunctive or other relief
pending an arbitration decision.

     9.  Representations.  The Consultant represents and warrants to the Company
that (i) the execution, delivery and performance of this Agreement by the
Consultant does not and will not conflict with, breach, violate or cause a
default under any contract, agreement, instrument, order, judgment or decree to
which the Consultant is a party or by which he is bound and (ii) upon the
execution and delivery of this Agreement by the Company, this Agreement shall be
the valid and binding obligation of the Consultant, enforceable in accordance
with its terms.

     10.  Survival.  Sections 7 and 8 of this Agreement shall survive and
continue in full force and effect in accordance with their respective terms,
notwithstanding any termination of the Consulting Period.

     11.  Arbitration.  Any dispute or controversy between the Company and the
Consultant, whether arising out of or relating to this Agreement, the breach of
this Agreement, or otherwise, shall be settled by arbitration in Chicago
administered by the American Arbitration Association, with any such dispute or
controversy arising under this Agreement being so administered in accordance
with its Commercial Rules then in effect, and judgment on the award rendered by
the arbitrator may be entered in any court having jurisdiction thereof.  The
arbitrator shall have the authority to award any remedy or relief that a court
of competent jurisdiction could order or grant, including,

                                       9

<PAGE>

without limitation, the issuance of an injunction. However, either party may,
without inconsistency with this arbitration provision, apply to any court having
jurisdiction over such dispute or controversy and seek interim provisional,
injunctive or other equitable relief until the arbitration award is rendered or
the controversy is otherwise resolved. Except as necessary in court proceedings
to enforce this arbitration provision or an award rendered hereunder, or to
obtain interim relief, neither a party nor an arbitrator may disclose the
existence, content or results of any arbitration hereunder without the prior
written consent of the Company and the Consultant. The Company and the
Consultant acknowledge that this Agreement evidences a transaction involving
interstate commerce. Notwithstanding any choice of law provision included in
this Agreement, the United States Federal Arbitration Act shall govern the
interpretation and enforcement of this arbitration provision.

     12.  Notices.  All notices and other communications required or permitted
hereunder shall be in writing and shall be deemed given when (i) delivered
personally or by overnight courier to the following address of the other party
hereto (or such other address for such party as shall be specified by notice
given pursuant to this Section) or (ii) sent by facsimile to the following
facsimile number of the other party hereto (or such other facsimile number for
such party as shall be specified by notice given pursuant to this Section), with
the confirmatory copy delivered by overnight courier to the address of such
party pursuant to this Section:

          If to the Company, to:

               General Counsel
               Baxter International Inc.
               One Baxter Parkway
               Deerfield, IL  60015

          If to the Consultant, to:

               Arnold J. Levine, Ph.D.
               1230 York Avenue
               New York, NY   10021

         13.  Severability.  Whenever possible, each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be invalid,
illegal or unenforceable in any respect under applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability shall not affect
the validity, legality or enforceability of any other provision of this
Agreement or the validity, legality or enforceability of such provision in any
other jurisdiction, but this Agreement shall be reformed, construed and enforced
in such jurisdiction as if such invalid, illegal or unenforceable provision had
never been contained herein.

     14.  Entire Agreement.  This Agreement constitutes the entire agreement and
understanding between the parties with respect to the subject matter hereof and
supersedes and preempts any prior understandings, agreements or representations
by

                                      10
<PAGE>

or between the parties, written or oral, which may have related in any manner to
the subject matter hereof.

     15.  Successors and Assigns.  This Agreement shall be enforceable by the
Consultant and his heirs, executors, administrators and legal representatives,
and by the Company and its successors and assigns.

     16.  Governing Law.  This Agreement shall be governed by and construed and
enforced in accordance with the internal laws of the State of Illinois without
regard to principles of conflict of laws.

     17.  Amendment and Waiver.  The provisions of this Agreement may be amended
or waived only by the written agreement of the Company and the Consultant, and
no course of conduct or failure or delay in enforcing the provisions of this
Agreement shall affect the validity, binding effect or enforceability of this
Agreement.

     18.  Counterparts.  This Agreement may be executed in two counterparts,
each of which shall be deemed to be an original and both of which together shall
constitute one and the same instrument.

          IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first written above.

                              BAXTER INTERNATIONAL INC.

                              By:    /s/Harry M. Jansen Kraemer, Jr.
                                     -------------------------------
                              Title: Chairman and Chief Executive Officer
                                     ------------------------------------

                              ARNOLD J. LEVINE, PH.D.

                              /s/Arnold J. Levine, Ph.D.
                              ---------------------------

                                      11

<PAGE>

                                                                       EXHIBIT 1

                           BAXTER INTERNATIONAL INC.
                        RESTRICTED STOCK AWARD AGREEMENT

          Baxter International Inc., a Delaware corporation (the "Company"),
hereby grants to Arnold J. Levine, Ph.D. (the "Holder") as of July 13, 2000 (the
"Grant Date"), pursuant to the provisions of the Baxter International Inc. 2000
Incentive Compensation Program (the "Plan"), a Restricted Stock Award (the
"Award") of 10,000 shares of Baxter International Inc. common stock, upon and
subject to the restrictions, terms and conditions set forth below.  Capitalized
terms not defined herein shall have the meanings specified in the Plan.

          1.  Execution of Stock Powers.  The Holder agrees to execute and
return such irrevocable stock powers as may be requested by the Company in order
to facilitate the transfer to the Company (or its assignee or nominee) of all or
a portion of the shares subject to the Award, if shares are not earned pursuant
to Section 4 of the Consulting Agreement, if forfeited pursuant to Paragraph 4
hereof or if required under applicable laws or regulations.  As soon as
practicable after the Holder has executed such stock powers and returned them to
the Company, the Company shall cause to be issued in the Holder's name a stock
certificate or certificates representing the total number of shares subject to
the Award.  Such certificates shall be held by the Company until delivered to
the Holder pursuant to Section 3 below.

          2.  Rights as a Stockholder.  The Holder shall have the right to vote
the shares subject to the Award and to receive dividends and other distributions
thereon unless and until, and only to the extent, such shares are forfeited
pursuant to Paragraph 4 hereof; provided, however, that a dividend or other
distribution with respect to such shares (including, without limitation, a stock
dividend or stock split), other than a regular cash dividend, shall be delivered
to the Company (and the Holder shall, if requested by the Company, execute and
return one or more irrevocable stock powers related thereto) and shall be
subject to the same restrictions as the shares with respect to which such
dividend or other distribution was made.

          3.  Custody and Delivery of Certificates Representing Shares.  The
Company shall hold the certificate or certificates representing the shares
subject to the Award until the shares have been earned pursuant to Section 4 of
the Consulting Agreement and vested pursuant to Paragraph 4 hereof, and the
Company shall as soon thereafter as practicable deliver the certificate or
certificates for the earned and vested shares to the Holder and destroy the
stock power or powers relating to such shares.

          4.  Restriction Period and Vesting.  (a)  The shares earned under
Section 4 of the Consulting Agreement shall vest on the earlier of May 1, 2010
and the date specified by Section 4(b) hereof (relating to involuntary
termination or termination due to death or disability) or Section 11.10 of the
Plan (relating to vesting upon a Change in Control) (the period beginning on the
Grant Date and ending on the date on which the shares vest shall be referred to
as the "Restriction Period").

          (b)  If the Holder's services to the Company terminate by reason of
disability (as determined under the terms of the Baxter Long-Term Disability
Plan) ("Disability"), death or involuntary termination by the Company, the
earned shares under the Award shall become fully vested as of the effective date
of the Holder's termination of service.

                                       1

<PAGE>

          (c)  If the Holder's services to the Company terminate for any reason
other than Disability, death or involuntary termination by the Company, the
entire Award (including earned shares) is forfeited by the Holder and shall be
cancelled by the Company.

          5.  Termination of Award.  In the event that the Holder forfeits the
shares subject to the Award, the Award shall terminate.

          6.  Additional Terms and Conditions of Award.

          6.1.  Nontransferability of Award.  During the Restriction Period, the
shares subject to the Award may not be transferred by the Holder other than by
will, the laws of descent and distribution or pursuant to beneficiary
designation procedures approved by the Company. Except to the extent permitted
by the foregoing, during the Restriction Period, the shares subject to the Award
may not be sold, transferred, assigned, pledged, hypothecated, encumbered or
otherwise disposed of (whether by operation of law or otherwise) or be subject
to execution, attachment or similar process. Upon any attempt to so sell,
transfer, assign, pledge, hypothecate or encumber, or otherwise dispose of such
shares, the Award shall immediately become null and void.

          6.2.  Adjustment.  In the event of any stock split, stock dividend,
recapitalization, reorganization, merger, consolidation, combination, exchange
of shares, liquidation, spin-off or other similar change in capitalization or
event, or any distribution to holders of shares other than a regular cash
dividend, the number and class of securities subject to the Award shall be
appropriately adjusted by the Committee. If any adjustment would result in a
fractional security being subject to the Award, the Company shall pay the Holder
in connection with the vesting, if any, of such fractional security, an amount
in cash determined by multiplying (i) such fraction (rounded to the nearest
hundredth) by (ii) the fair market value on the vesting date. The decision of
the Committee regarding any such adjustment shall be final, binding and
conclusive.

          6.3.  Compliance with Applicable Law.  The Award is subject to the
condition that if the listing, registration or qualification of the shares
subject to the Award upon any securities exchange or under any law, or the
consent or approval of any governmental body, or the taking of any other action
is necessary or desirable as a condition of, or in connection with, the vesting
or delivery of shares hereunder, the shares subject to the Award shall not vest
or be delivered, in whole or in part, unless such listing, registration,
qualification, consent or approval shall have been effected or obtained, free of
any conditions not acceptable to the Company. The Company agrees to use
reasonable efforts to effect or obtain any such listing, registration,
qualification, consent or approval.

          6.4.  Delivery of Certificates.  Upon the vesting of the Award, the
Company shall deliver or cause to be delivered one or more certificates
representing the number of earned vested shares. The Company shall pay all
original issue or transfer taxes and all fees and expenses incident to such
delivery.

          6.5.  Award Confers No Rights to Employment.  In no event shall the
granting of the Award or its acceptance by the Holder give or be deemed to give
the Holder any right to employment by the Company or any affiliate of the
Company.

          6.6.  Decisions of Board or Committee.  The Board or the Committee
shall have the right to resolve all questions which may arise in connection with
the Award. Any interpretation, determination or other action made or taken by
the Board or the Committee regarding the Plan or this Agreement shall be final,
binding and conclusive.

                                       2
<PAGE>

          6.7.  Agreement Subject to the Plan. This Agreement is subject to the
provisions of the Plan and shall be interpreted in accordance therewith. The
Holder hereby acknowledges receipt of a copy of the Plan.

          7.  Miscellaneous Provisions.

          7.1.  Meaning of Certain Terms. As used herein, the term "vest" shall
mean no longer subject to forfeiture. References in this Agreement to sections
of the Code shall be deemed to refer to any successor section of the Code or any
successor internal revenue law.

          7.2.  Successors. This Agreement shall be binding upon and inure to
the benefit of any successor or successors of the Company and any person or
persons who shall, upon the death of the Holder, acquire any rights hereunder in
accordance with this Agreement or the Plan.

          7.3.  Notices. All notices, requests or other communications provided
for in this Agreement shall be made, if to the Company, to the Company, or its
designated representative at One Baxter Parkway, Deerfield, IL 60015, Attention:
Human Resources, and if to the Holder, to the address set forth for the Holder
on the records of the Company. All notices, requests or other communications
provided for in this Agreement shall be made in writing either (a) by personal
delivery to the party entitled thereto, (b) by facsimile with confirmation of
receipt, (c) by mailing in the United States mails to the last known address of
the party entitled thereto or (d) by express courier service. The notice,
request or other communication shall be deemed to be received upon personal
delivery, upon confirmation of receipt of facsimile transmission, or upon
receipt by the party entitled thereto if by United States mail or express
courier service; provided, however, that if a notice, request or other
communication is not received during regular business hours, it shall be deemed
to be received on the next succeeding business day of the Company.

          7.4.  Governing Law.  This Agreement, the Award and all determinations
made and actions taken pursuant hereto and thereto, to the extent not otherwise
governed by the laws of the United States, shall be governed by the laws of the
State of Illinois and construed in accordance therewith without giving effect to
conflicts of laws principles.

                              BAXTER INTERNATIONAL INC.

                              By:    /s/Harry M. Jansen Kraemer, Jr.
                                     -------------------------------

                                       3

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