Document:

exv10w12

Exhibit 10.12

Form of Indemnification Agreement by and among Harbinger Group Inc. and its Directors or Officers

INDEMNIFICATION AGREEMENT

     This Indemnification Agreement (“Agreement”) is made on                     , by and between
Harbinger Group Inc., a Delaware corporation (the “Company”), and                     
(“Indemnitee”).

RECITALS

     WHEREAS, the Company desires to attract and retain the services of highly qualified
individuals, such as Indemnitee, to serve the Company and its affiliates, including but not limited
to Zap.com Corporation;

     WHEREAS, in order to induce Indemnitee to continue to provide services to the Company and its
affiliates the Company wishes to provide for the indemnification of, and advancement of expenses
to, Indemnitee to the maximum extent permitted by law;

     WHEREAS, the Certificate of Incorporation (the “Charter”) and the Bylaws (the
“Bylaws”) of the Company provide for indemnification of the officers and directors of the
Company, and Indemnitee may also be entitled to indemnification pursuant to the General Corporation
Law of the State of Delaware (the “DGCL”);

     WHEREAS, the Charter, Bylaws and the DGCL expressly provide that the indemnification
provisions set forth therein are not exclusive, and thereby contemplate that contracts may be
entered into between the Company and members of the board of directors, officers and other persons
with respect to indemnification;

     WHEREAS, the Company and Indemnitee recognize the continued difficulty in obtaining liability
insurance for the Company’s directors, officers, employees, agents and fiduciaries, the significant
and continual increases in the cost of such insurance and the general trend of insurance companies
to reduce the scope of coverage of such insurance;

     WHEREAS, the Company and Indemnitee further recognize the substantial increase in corporate
litigation in general, subjecting directors, officers, employees, agents and fiduciaries to
expensive litigation risks at the same time as the availability and scope of coverage of liability
insurance provide increasing challenges for the Company;

     WHEREAS, Indemnitee does not regard the protection currently provided by applicable law, the
Company’s governing documents and available insurance as adequate under the present circumstances,
and Indemnitee may not be willing to continue to serve in such capacity without additional
protection;

     WHEREAS, the Board of Directors of the Company (the “Board”) has determined that the
increased difficulty in attracting and retaining highly qualified persons such as Indemnitee is
detrimental to the best interests of the Company’s stockholders and that the Company should act to
assure Indemnitee that there will be increased certainty of such protection in the future;

     WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate
itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent
permitted by applicable law, regardless of any amendment or revocation of the Charter or Bylaws, so
that they will serve or continue to serve the Company free from undue concern that they will not be
so indemnified;

     WHEREAS, the Company and Indemnitee acknowledge and agree that, as contemplated by 6 Del. C. §
2708 (“Section 2708”) this Agreement involves at least $100,000 and, therefore, the Company
and Indemnitee intend for Section 2708 and the related legislative commentary, which specifies that
Section 2708 was intended to supersede all Delaware common law limitations on the enforceability of
choice of law provisions (including any

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restrictions contained in the Restatement (Second) of Conflict of Laws), as well as
limitations on contractual consent to jurisdiction or service of process, to apply to this
Agreement; and

     WHEREAS, this Agreement is a supplement to and in furtherance of the indemnification provided
in the Charter, Bylaws and the DGCL and any resolutions adopted pursuant thereto, and shall not be
deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder.

     NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the
Company and Indemnitee do hereby covenant and agree as follows:

     Section 1. Services to the Company. Indemnitee agrees to serve as [a
director/officer] of the Company. [Subject to the terms and conditions of any employment agreement
between Indemnitee and the Company,] Indemnitee may at any time and for any reason resign from such
position, in which event the Company shall have no obligation under this Agreement to continue
Indemnitee in such position. This Agreement shall not be deemed an employment contract between the
Company (or any of its subsidiaries or any Enterprise) and Indemnitee. The foregoing
notwithstanding, this Agreement shall be effective as of the date the Indemnitee commenced services
as a [director/officer] and continue in force after Indemnitee has ceased to serve as [a
director/officer] of the Company and its affiliates.

	 	 	Section 2. Definitions.

	 	 	As used in this Agreement:

          (a) “Corporate Status” describes the status of a person as a current or former
director, officer, employee, agent or trustee of the Company or of any other Enterprise which such
person is or was serving at the request of the Company.

          (b) “Enforcement Expenses” shall include all reasonable attorneys’ fees, retainers,
court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs,
printing and binding costs, telephone charges, postage, delivery service fees and all other
disbursements or expenses of the types customarily incurred in connection with an action to enforce
indemnification or advancement rights, or an appeal from such action, including, without
limitation, the premium, security for and other costs relating to any cost bond, supersedas bond or
other appeal bond or its equivalent.

          (c) “Enterprise” shall mean any corporation (other than the Company), partnership,
joint venture, trust, employee benefit plan or other legal entity of which Indemnitee is or was
serving at the request of the Company as a director, officer, employee, agent, trustee or other
Corporate Status.

          (d) “Expenses” shall include all reasonable attorneys’ fees, retainers, court costs,
transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and
binding costs, telephone charges, postage, delivery service fees and all other disbursements or
expenses of the types customarily incurred in connection with prosecuting, defending, preparing to
prosecute or defend, investigating, being or preparing to be a witness in, or otherwise
participating in, a Proceeding or an appeal resulting from a Proceeding, including, without
limitation, the premium, security for and other costs relating to any cost bond, supersedas bond or
other appeal bond or its equivalent. Expenses, however, shall not include amounts paid in
settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

          (e) “Independent Counsel” means a law firm, or a partner (or, if applicable, member)
of such a law firm, that is experienced in matters of Delaware corporation law and neither
presently is, nor in the past five years has been, retained to represent: (i) the Company,
Harbinger Holdings, LLC, any Enterprise or Indemnitee or any of their affiliates in any matter
material to any such party (other than with respect to matters concerning Indemnitee under this
Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other
party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the
foregoing, the term “Independent Counsel” shall not include any person who, under the applicable
standards of professional conduct then prevailing, would have a conflict of interest in
representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under
this Agreement. The Company agrees to pay the reasonable fees and

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expenses of the Independent Counsel and to fully indemnify such counsel against any and all
expenses, claims, liabilities and damages arising out of or relating to this Agreement or its
engagement pursuant hereto.]

          (f) The term “Proceeding” shall include any threatened, pending or completed action,
suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative
hearing or any other actual, threatened or completed proceeding, whether brought in the right of
the Company or otherwise and whether of a civil, criminal, administrative or investigative nature,
in which Indemnitee was, is or will be involved as a party or otherwise by reason of the fact that
Indemnitee is or was a director or officer of the Company or is or was serving at the request of
the Company as a director, officer, employee, agent or trustee of any Enterprise or by reason of
any action taken by him or of any action taken on his part while acting as director or officer of
the Company or while serving at the request of the Company as a director, officer, employee, agent
or trustee of any Enterprise, in each case whether or not serving in such capacity at the time any
liability or expense is incurred for which indemnification, reimbursement or advancement of
expenses can be provided under this Agreement; provided, however, that the term
“Proceeding” shall not include any action, suit or arbitration, or part thereof, initiated by
Indemnitee to enforce Indemnitee’s rights under this Agreement as provided for in Section 13(e) of
this Agreement.

     Section 3. Indemnity in Third-Party Proceedings. The Company shall indemnify
Indemnitee in accordance with the provisions of this Section 3 if Indemnitee is, or is threatened
to be made, a party to or a participant in any Proceeding, other than a Proceeding by or in the
right of the Company to procure a judgment in its favor. Pursuant to this Section 3, Indemnitee
shall be indemnified against all Expenses, judgments, fines and amounts paid in settlement actually
and reasonably incurred by Indemnitee or on his behalf in connection with such Proceeding or any
claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he reasonably
believed to be in or not opposed to the best interests of the Company and, in the case of a
criminal proceeding, had no reasonable cause to believe that his conduct was unlawful.

     Section 4. Indemnity in Proceedings by or in the Right of the Company. The Company
shall indemnify Indemnitee in accordance with the provisions of this Section 4 if Indemnitee is, or
is threatened to be made, a party to or a participant in any Proceeding by or in the right of the
Company to procure a judgment in its favor. Pursuant to this Section 4, Indemnitee shall be
indemnified against all Expenses actually and reasonably incurred by him or on his behalf in
connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good
faith and in a manner he reasonably believed to be in or not opposed to the best interests of the
Company. No indemnification for Expenses shall be made under this Section 4 in respect of any
claim, issue or matter as to which Indemnitee shall have been finally adjudged by a court to be
liable to the Company, unless and only to the extent that the Delaware Court of Chancery (the
“Delaware Court”) or any court in which the Proceeding was brought shall determine upon
application that, despite the adjudication of liability but in view of all the circumstances of the
case, Indemnitee is fairly and reasonably entitled to indemnification for such expenses as the
Delaware Court or such other court shall deem proper.

     Section 5. Indemnification for Expenses of a Party Who is Wholly or Partly Successful.
Notwithstanding any other provisions of this Agreement and except as provided in Section 8, to the
extent that Indemnitee is a party to or a participant in and is successful, on the merits or
otherwise, in any Proceeding or in defense of any claim, issue or matter therein, the Company shall
indemnify Indemnitee against all Expenses actually and reasonably incurred by him or on his behalf
in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is
successful, on the merits or otherwise, as to one or more but less than all claims, issues or
matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses actually
and reasonably incurred by him or on his behalf in connection with each successfully resolved
claim, issue or matter. For purposes of this Section and without limitation, the termination of
any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be
deemed to be a successful result as to such claim, issue or matter.

     Section 6. Indemnification For Expenses of a Witness. Notwithstanding any other
provision of this Agreement, to the extent that Indemnitee is, by reason of his Corporate Status, a
witness, or is made (or asked to) respond to discovery requests, in any Proceeding to which
Indemnitee is not a party and is not threatened to be made a party, he shall be indemnified against
all Expenses actually and reasonably incurred by him or on his behalf in connection therewith.

     Section 7. Additional Indemnification.

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          (a) Except as provided in Section 8, notwithstanding any limitation in Sections 3, 4 or 5, the
Company shall indemnify Indemnitee to the fullest extent permitted by law if Indemnitee is a party
to or is threatened to be made a party to any Proceeding (including a Proceeding by or in the right
of the Company to procure a judgment in its favor) against all Expenses, judgments, fines and
amounts paid in settlement actually and reasonably incurred by Indemnitee in connection with the
Proceeding.

          (b) For purposes of Section 7(a), the meaning of the phrase “to the fullest extent permitted
by law” shall include, but not be limited to:

               (i) to the fullest extent permitted by the provision of the DGCL that authorizes or
contemplates additional indemnification by agreement, or the corresponding provision of any
amendment to or replacement of the DGCL or such provision thereof; and

               (ii) to the fullest extent authorized or permitted by any amendments to or replacements of the
DGCL adopted after the date of this Agreement that increase the extent to which a corporation may
indemnify its officers and directors.

     Section 8. Exclusions. Notwithstanding any provision in this Agreement to the
contrary, the Company shall not be obligated under this Agreement:

          (a) to make any indemnity for amounts otherwise indemnifiable hereunder (or for which
advancement is provided hereunder) if and to the extent that Indemnitee has otherwise actually
received such amounts under any insurance policy, contract, agreement or otherwise;

          (b) to make any indemnity for an accounting of profits made from the purchase and sale (or
sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b)
of the Securities Exchange Act of 1934, as amended, or similar provisions of state statutory law or
common law; or

          (c) to make any indemnity or advancement that is prohibited by applicable law.

     Section 9. Advances of Expenses. The Company shall advance the Expenses incurred by
Indemnitee in connection with any Proceeding, and such advancement shall be made within twenty (20)
days after the receipt by the Company of a statement or statements requesting such advances (which
shall include invoices received by Indemnitee in connection with such Expenses but, in the case of
invoices in connection with legal services, any references to legal work performed or to
expenditures made that would cause Indemnitee to waive any privilege accorded by applicable law
shall not be included with the invoice) from time to time, whether prior to or after final
disposition of any Proceeding. Advances shall be unsecured and interest free. Advances shall be
made without regard to Indemnitee’s ability to repay the expenses and without regard to
Indemnitee’s ultimate entitlement to indemnification under the other provisions of this Agreement.
Indemnitee shall qualify for advances upon the execution and delivery to the Company of this
Agreement which shall constitute an undertaking providing that Indemnitee undertakes to the fullest
extent required by law to repay the advance if and to the extent that it is ultimately determined
by a court of competent jurisdiction in a final judgment, not subject to appeal, that Indemnitee is
not entitled to be indemnified by the Company. The right to advances under this paragraph shall in
all events continue until final disposition of any Proceeding, including any appeal therein.
Nothing in this Section 9 shall limit Indemnitee’s right to advancement pursuant to Section 13(e)
of this Agreement.

	 	 	Section 10. Procedure for Notification and Defense of Claim.

          (a) To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a
written request therefor and, if Indemnitee so chooses pursuant to Section 11 of this Agreement,
such written request shall also include a request for Indemnitee to have the right to
indemnification determined by Independent Counsel.

          (b) The Company will be entitled to participate in the Proceeding at its own expense.

     Section 11. Procedure Upon Application for Indemnification.

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          (a) Upon written request by Indemnitee for indemnification pursuant to Section 10(a), a
determination, if such determination is required by applicable law, with respect to Indemnitee’s
entitlement thereto shall be made in the specific case: (i) by Independent Counsel in a written
opinion to the Board if Indemnitee so requests in such written request for indemnification pursuant
to Section 10(a), or (ii) by the Company in accordance with applicable law if Indemnitee does not
so request such determination be made by Independent Counsel. In the case that such determination
is made by Independent Counsel, a copy of Independent Counsel’s written opinion shall be delivered
to Indemnitee and, if it is so determined that Indemnitee is entitled to indemnification, payment
to Indemnitee shall be made within ten (10) days after such determination. Indemnitee shall
cooperate with the Independent Counsel or the Company, as applicable, making such determination
with respect to Indemnitee’s entitlement to indemnification, including providing to such counsel or
the Company, upon reasonable advance request, any documentation or information which is not
privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee
and reasonably necessary to such determination. Any costs or expenses (including attorneys’ fees
and disbursements) incurred by Indemnitee in so cooperating with the Independent Counsel or the
Company shall be borne by the Company (irrespective of the determination as to Indemnitee’s
entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee
harmless therefrom.

          (b) In the event that Indemnitee exercises his right to have his entitlement to
indemnification determined by Independent Counsel pursuant to Sections 10(a) and 11(a)(i), the
Independent Counsel shall be selected by Indemnitee. The Company may, within ten (10) days after
written notice of such selection, deliver to Indemnitee a written objection to such selection;
provided, however, that such objection may be asserted only on the ground that the
Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined
in Section 2 of this Agreement, and the objection shall set forth with particularity the factual
basis of such assertion. Absent a proper and timely objection, the person so selected shall act as
Independent Counsel. If such written objection is so made and substantiated, the Independent
Counsel so selected may not serve as Independent Counsel unless and until such objection is
withdrawn or a court has determined that such objection is without merit. If, within twenty (20)
days after the later of (i) submission by Indemnitee of a written request for indemnification and
Independent Counsel pursuant to Sections 10(a) and 11(a)(i) hereof, respectively, and (ii) the
final disposition of the Proceeding, including any appeal therein, no Independent Counsel shall
have been selected without objection, Indemnitee may petition a court of competent jurisdiction for
resolution of any objection which shall have been made by the Company to the selection of
Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the
court or by such other person as the court shall designate. The person with respect to whom all
objections are so resolved or the person so appointed shall act as Independent Counsel under
Section 11(a) hereof. Upon the due commencement of any judicial proceeding or arbitration pursuant
to Section 13(a) of this Agreement, Independent Counsel shall be discharged and relieved of any
further responsibility in such capacity (subject to the applicable standards of professional
conduct then prevailing).

     Section 12. Presumptions and Effect of Certain Proceedings.

          (a) In making a determination with respect to entitlement to indemnification hereunder, it
shall be presumed that Indemnitee is entitled to indemnification under this Agreement if Indemnitee
has submitted a request for indemnification in accordance with Section 10(a) of this Agreement, and
the Company shall have the burden of proof to overcome that presumption in connection with the
making of any determination contrary to that presumption. In an action to enforce this Agreement,
neither (i) the failure of the Company or of Independent Counsel to have made a determination prior
to the commencement of any action pursuant to this Agreement that indemnification is proper in the
circumstances because Indemnitee has met the applicable standard of conduct, nor (ii) an actual
determination by the Company or by Independent Counsel that Indemnitee has not met such applicable
standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has
not met the applicable standard of conduct.

          (b) Indemnitee shall be deemed to have acted in good faith to the extent Indemnitee’s action
is based on the records or books of account of the Company or any other Enterprise, including
financial statements, or on information supplied to Indemnitee by the officers of the Company or
any other Enterprise in the course of their duties, or on the advice of legal counsel for the
Company or any other Enterprise, or for any committee of the Board or the board of directors of any
other Enterprise, or on information or records given or reports made to the

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Company or any other Enterprise, or to any committee of the Board or the board of directors of
any other Enterprise, by an independent certified public accountant or by an appraiser or other
expert selected with reasonable care by the Company or any other Enterprise, or by any committee of
the Board or the board of directors of any other Enterprise.

          (c) The termination of any Proceeding or of any claim, issue or matter therein, by judgment,
order, settlement or conviction, or upon a plea of guilty, nolo contendere or its
equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself
adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee
did not act in good faith or in a manner which he reasonably believed to be in or not opposed to
the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had
reasonable cause to believe that his conduct was unlawful. The Company acknowledges that a
settlement or other disposition short of final judgment may be successful if it permits a party to
avoid expense, delay, distraction, disruption and uncertainty.

          (d) The knowledge and/or actions, or failure to act, of any director, officer, agent or
employee of the Company or any Enterprise shall not be imputed to Indemnitee for purposes of
determining the right to indemnification under this Agreement. Whether or not the foregoing
provisions of this Section 12 are satisfied, it shall in any event be presumed that Indemnitee has
at all times acted in good faith and in a manner he reasonably believed to be in or not opposed to
the best interests of the Company. Anyone seeking to overcome this presumption shall have the
burden of proof and the burden of persuasion by clear and convincing evidence.

     Section 13. Remedies of Indemnitee.

          (a) Subject to Section 13(f), in the event that (i) a determination is made pursuant to
Section 11 of this Agreement that Indemnitee is not entitled to indemnification under this
Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 9 of this Agreement,
(iii) Indemnitee has submitted a request for indemnification that does not include a request for
Independent Counsel and no determination of entitlement to indemnification shall have been made
pursuant to Section 11(a) of this Agreement within sixty (60) days after receipt by the Company of
such request, (iv) Indemnitee has submitted a request for indemnification that does include a
request for Independent Counsel and no determination of entitlement to indemnification shall have
been made pursuant to Section 11(a) of this Agreement within sixty (60) days after either (A) the
ten (10) day period for objection to the selection of Independent Counsel has expired with no
objection made or (B), if such an objection has been made, resolution of any such objection, (v)
payment of indemnification is not made pursuant to Section 5 or 6 or the last sentence of Section
11(a) of this Agreement within ten (10) days after receipt by the Company of a written request
therefor, or (vi) payment of indemnification pursuant to Section 3, 4 or 7 of this Agreement is not
made within ten (10) days after a determination has been made that Indemnitee is entitled to
indemnification, Indemnitee shall be entitled to an adjudication by a court of his entitlement to
such indemnification or advancement. Alternatively, Indemnitee, at his option, may seek an award
in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules
of the American Arbitration Association. Indemnitee shall commence such proceeding seeking an
adjudication or an award in arbitration within 180 days following the date on which Indemnitee
first has the right to commence such proceeding pursuant to this Section 13(a); provided,
however, that the foregoing time limitation shall not apply in respect of a proceeding
brought by Indemnitee to enforce his rights under Section 5 of this Agreement. The Company shall
not oppose Indemnitee’s right to seek any such adjudication or award in arbitration.

          (b) In the event that a determination shall have been made pursuant to Section 11(a) of this
Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or
arbitration commenced pursuant to this Section 13 shall be conducted in all respects as a de novo
trial, or arbitration, on the merits and Indemnitee shall not be prejudiced by reason of that
adverse determination. In any judicial proceeding or arbitration commenced pursuant to this
Section 13, the Company shall have the burden of proving Indemnitee is not entitled to
indemnification or advancement, as the case may be.

          (c) If a determination shall have been made pursuant to Section 11(a) of this Agreement that
Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any
judicial proceeding or arbitration commenced pursuant to this Section 13, to the fullest extent
permitted by law.

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          (d) The Company shall be precluded from asserting in any judicial proceeding or arbitration
commenced pursuant to this Section 13 that the procedures and presumptions of this Agreement are
not valid, binding and enforceable and shall stipulate in any such court or before any such
arbitrator that the Company is bound by all the provisions of this Agreement.

          (e) The Company shall indemnify Indemnitee against any and all Enforcement Expenses and, if
requested by Indemnitee, subject to Section 9, shall (within ten (10) days after receipt by the
Company of a written request therefor) advance, to the extent not prohibited by law, such
Enforcement Expenses to Indemnitee, which are incurred by Indemnitee in connection with any action
brought by Indemnitee for indemnification or advancement from the Company under this Agreement or
under any directors’ and officers’ liability insurance policies maintained by the Company,
regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification,
advancement or insurance recovery, as the case may be, in the suit for which indemnification or
advancement is being sought.

          (f) Notwithstanding anything in this Agreement to the contrary, no determination as to
entitlement to indemnification under this Agreement shall be required to be made prior to the final
disposition of the Proceeding, including any appeal therein.

	 	 	Section 14. Non-exclusivity; Survival of Rights; Insurance.

          (a) The rights of indemnification and to receive advancement as provided by this Agreement
shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled
under applicable law, the Charter, the Bylaws, any agreement, a vote of stockholders or a
resolution of directors, or otherwise. No amendment, alteration or repeal of this Agreement or of
any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in
respect of any action taken or omitted by such Indemnitee in his Corporate Status prior to such
amendment, alteration or repeal. To the extent that a change in Delaware law, whether by statute
or judicial decision, permits greater indemnification or advancement than would be afforded
currently under the Charter, Bylaws and this Agreement, it is the intent of the parties hereto that
Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change. No right
or remedy herein conferred is intended to be exclusive of any other right or remedy, and every
other right and remedy shall be cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other right or remedy.

          (b) To the extent that the Company or any of its affiliates maintains an insurance policy or
policies providing liability insurance for directors, officers, employees, agents or trustees of
the Company or of any other Enterprise, Indemnitee shall be covered by such policy or policies in
accordance with its or their terms to the maximum extent of the coverage available for any such
director, officer, employee, agent or trustee under such policy or policies. If, at the time of
the receipt of a notice of a claim pursuant to the terms hereof, the Company has director and
officer liability insurance in effect, the Company shall give prompt notice of the commencement of
such proceeding to the insurers in accordance with the procedures set forth in the respective
policies. The Company shall thereafter take all necessary or desirable action to cause such
insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such proceeding in
accordance with the terms of such policies.

          (c) The Company’s obligation to provide indemnification or advancement hereunder to Indemnitee
who is or was serving at the request of the Company as a director, officer, employee, agent or
trustee of any other Enterprise shall be reduced by any amount Indemnitee has actually received as
indemnification or advancement from such other Enterprise.

          (d) All references in this Agreement to the Company shall include Zapata Corporation
(“Zapata”) during the period of time prior to the merger of Zapata with and into the
Company.

     Section 15. Duration of Agreement. This Agreement shall continue until and terminate
upon the later of: (a) ten (10) years after the date that Indemnitee shall have ceased to serve as
a director or officer (or in any other Corporate Status) of any of the Company or its affiliates or
(b) one (1) year after the final termination of any Proceeding, including any appeal, then pending
in respect of which Indemnitee is granted rights of indemnification

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or advancement hereunder and of any proceeding, including any appeal, commenced by Indemnitee
pursuant to Section 13 of this Agreement relating thereto. This Agreement shall be binding upon
the Company and its successors and assigns and shall inure to the benefit of Indemnitee and his
heirs, executors and administrators. The Company shall require and cause any successor, and any
direct or indirect parent of any successor, whether direct or indirect by purchase, merger,
consolidation or otherwise, to all, substantially all or a substantial part, of the business and/or
assets of the Company, by written agreement in form and substance satisfactory to Indemnitee,
expressly to assume and agree to perform this Agreement in the same manner and to the same extent
that the Company would be required to perform if no such succession had taken place.

     Section 16. Severability. If any provision or provisions of this Agreement shall be
held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality
and enforceability of the remaining provisions of this Agreement (including, without limitation,
each portion of any section of this Agreement containing any such provision held to be invalid,
illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any
way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by
law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform
to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to
the fullest extent possible, the provisions of this Agreement (including, without limitation, each
portion of any section of this Agreement containing any such provision held to be invalid, illegal
or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to
give effect to the intent manifested thereby.

     Section 17. Enforcement.

          (a) The Company expressly confirms and agrees that it has entered into this Agreement and
assumed the obligations imposed on it hereby in order to induce Indemnitee to serve as a
[director/officer] of the Company, and the Company acknowledges that Indemnitee is relying upon
this Agreement in serving as a [director/officer] of the Company.

          (b) This Agreement constitutes the entire agreement between the parties hereto with respect to
the subject matter hereof and supersedes all prior agreements and understandings, oral, written and
implied, between the parties hereto with respect to the subject matter hereof; provided,
however, that this Agreement is a supplement to and in furtherance of the Charter, the
Bylaws, applicable law and prior agreements, and shall not be deemed a substitute therefor, nor to
diminish or abrogate any rights of Indemnitee thereunder. For the avoidance of doubt, this
Agreement shall not diminish or abrogate any rights of Indemnitee with regard to indemnification or
advancement agreements undertaken with Zapata.

     Section 18. Modification and Waiver. No supplement, modification or amendment, or
waiver of any provision, of this Agreement shall be binding unless executed in writing by the
parties thereto. No waiver of any of the provisions of this Agreement shall be deemed or shall
constitute a waiver of any other provisions of this Agreement nor shall any waiver constitute a
continuing waiver.

     Section 19. Notice by Indemnitee. Indemnitee agrees promptly to notify the Company in
writing upon being served with any summons, citation, subpoena, complaint, indictment, information
or other document relating to any Proceeding or matter which may be subject to indemnification or
advancement as provided hereunder. The failure of Indemnitee to so notify the Company shall not
relieve the Company of any obligation which it may have to Indemnitee under this Agreement or
otherwise.

     Section 20. Notices. All notices, requests, demands and other communications under
this Agreement shall be in writing and shall be deemed to have been duly given if (a) delivered by
hand and receipted for by the party to whom said notice or other communication shall have been
directed, (b) mailed by certified or registered mail with postage prepaid, on the third business
day after the date on which it is so mailed, (c) mailed by reputable overnight courier and
receipted for by the party to whom said notice or other communication shall have been directed or
(d) sent by facsimile transmission, with receipt of oral confirmation that such transmission has
been received:

54

 

          (a) If to Indemnitee, to:

               Attn: [INDEMNITEE]

          (b) If to the Company to:

               Harbinger Group Inc.

               450 Park Avenue, 30th Floor

               New York, NY 10022

or to any other address as may have been furnished to Indemnitee by the Company.

     Section 21. Contribution.

          (a) Whether or not the indemnification provided for in this Agreement is available, in respect
of any threatened, pending or completed action, suit or proceeding in which the Company is jointly
liable with Indemnitee (or would be if joined in such action, suit or proceeding), the Company
shall pay, in the first instance, the entire amount of any judgments, fines, penalties, excise
taxes, amounts paid or to be paid in settlement and Expenses without requiring Indemnitee to
contribute to such payment and the Company hereby waives and relinquishes any right of contribution
it may have against Indemnitee. The Company shall not enter into any settlement of any action,
suit or proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in
such action, suit or proceeding) unless such settlement provides for a full and final release of
all claims asserted against Indemnitee.

          (b) Without diminishing or impairing the obligations of the Company set forth in the preceding
subparagraph, if, for any reason, Indemnitee shall elect or be required to pay all or any portion
of any judgment or settlement in any threatened, pending or completed action, suit or proceeding in
which the Company is jointly liable with Indemnitee (or would be if joined in such action, suit or
proceeding), the Company shall contribute to the amount of judgments, fines, penalties, excise
taxes, amounts paid or to be paid in settlement and Expenses actually and reasonably incurred and
paid or payable by Indemnitee in proportion to the relative benefits received by the Company and
all officers, directors or employees of the Company, other than Indemnitee, who are jointly liable
with Indemnitee (or would be if joined in such action, suit or proceeding), on the one hand, and
Indemnitee, on the other hand, from the transaction from which such action, suit or proceeding
arose; provided, however, that the proportion determined on the basis of relative
benefit may, to the extent necessary to conform to law, be further adjusted by reference to the
relative fault of the Company and all officers, directors or employees of the Company other than
Indemnitee who are jointly liable with Indemnitee (or would be if joined in such action, suit or
proceeding), on the one hand, and Indemnitee, on the other hand, in connection with the events
that resulted in such Expenses, judgments, fines or settlement amounts, as well as any other
equitable considerations which applicable law may require to be considered. The relative fault of
the Company and all officers, directors or employees of the Company, other than Indemnitee, who are
jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), on the
one hand, and Indemnitee, on the other hand, shall be determined by reference to, among other
things, the degree to which their actions were motivated by intent to gain personal profit or
advantage, the degree to which their liability is primary or secondary and the degree to which
their conduct is active or passive.

          (c) The Company hereby agrees to fully indemnify and hold Indemnitee harmless from any claims
of contribution which may be brought by officers, directors or employees of the Company or its
affiliates, other than Indemnitee, who may be jointly liable with Indemnitee.

     Section 22. Applicable Law and Consent to Jurisdiction. This Agreement and the legal
relations among the parties shall be governed by, and construed and enforced in accordance with,
the laws of the State of Delaware, without regard to its conflict of laws rules. Except with
respect to any arbitration commenced by Indemnitee pursuant to Section 13(a) of this Agreement, the
Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or
proceeding arising out of or in connection with this Agreement shall be brought only in the
Delaware Court, and not in any other state or federal court in the United States of America or any
court in any other country, (ii) consent to submit to the exclusive jurisdiction of the Delaware
Court for

55

 

purposes of any action or proceeding arising out of or in connection with this Agreement,
(iii) consent to service of process at the address set forth in Section 20 of this Agreement with
the same legal force and validity as if served upon such party personally within the State of
Delaware, (iv) waive any objection to the laying of venue of any such action or proceeding in the
Delaware Court and (v) waive, and agree not to plead or to make, any claim that any such action or
proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum.

     Section 23. Identical Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall for all purposes be deemed to be an original but all of which
together shall constitute one and the same Agreement. Only one such counterpart signed by the
party against whom enforceability is sought needs to be produced in order to evidence the existence
of this Agreement.

     Section 24. Miscellaneous. The headings of the paragraphs of this Agreement are
inserted for convenience only and shall not be deemed to constitute part of this Agreement or to
affect the construction thereof.

56

 

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

	 	 	 	 	 	 	 
	 	 	HARBINGER GROUP INC.
	 
	 

	 	By:	 	 	 	 
	 

	 	
	 	Name:

	 	 
	 

	 		 	Office:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	[INDEMNITEE]
	 	 	 	 	Name:

57

 

Schedule to Exhibit 10.12 – Form of Indemnification Agreement by and

Among Harbinger Group Inc. and its Directors and Officers

The Indemnification Agreement filed as Exhibit 10.12 is substantially identical in all
material respects to the indemnification agreements which have been entered into by
Harbinger Group Inc. and the following directors and officers with the associated
effective dates:

	 	 	 
	Indemnitee	 	Effective Date
	Lap Wai Chan

	 	December 23, 2009
	Leonard DiSalvo

	 	December 23, 2009
	Lawrence M. Clark, Jr.

	 	December 23, 2009
	Philip A. Falcone

	 	December 23, 2009
	Peter A. Jenson

	 	December 23, 2009
	Robert V. Leffler, Jr.

	 	December 23, 2009
	Keith M. Hladek

	 	December 23, 2009
	Thomas M. Hudgins

	 	December 23, 2009
	Francis T. McCarron

	 	December 23, 2009

58exv4w1

 

 

1.800% SENIOR NOTES DUE 2013

4.250% SENIOR NOTES DUE 2020

SIXTH SUPPLEMENTAL INDENTURE

between

BAXTER INTERNATIONAL INC.,

as Issuer

and

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,

as Trustee

Dated as of March 9, 2010

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	
ARTICLE 1

Definitions	 	 	 	 
	Section 1.01.
	 	Definition of Terms	 	 	1	 
	 
	 	 	 	 	 	 
	
ARTICLE 2

The Notes	 	 	 	 
	 
	 	 	 	 	 	 
	Section 2.01.
	 	Designation	 	 	2	 
	Section 2.02.
	 	Principal Amount; Series Treatment	 	 	2	 
	Section 2.03.
	 	Maturity	 	 	3	 
	Section 2.04.
	 	Interest	 	 	3	 
	Section 2.05.
	 	Form of Notes	 	 	3	 
	Section 2.06.
	 	Transfers Restrictions	 	 	4	 
	Section 2.07.
	 	Transfers and Exchanges	 	 	5	 
	 
	 	 	 	 	 	 
	
ARTICLE 3

Redemption Of The Notes	 	 	 	 
	 
	 	 	 	 	 	 
	Section 3.01.
	 	Optional Redemption by Company	 	 	5	 
	 
	 	 	 	 	 	 
	
ARTICLE 4

Change of Control	 	 	 	 
	 
	 	 	 	 	 	 
	Section 4.01.
	 	Offer to Purchase Upon Change of Control Triggering Event	 	 	5	 
	 
	 	 	 	 	 	 
	
ARTICLE 5

Execution Of The Notes	 	 	 	 
	 
	 	 	 	 	 	 
	Section 5.01.
	 	Execution; Certificates	 	 	5	 
	 
	 	 	 	 	 	 
	
ARTICLE 6

Miscellaneous	 	 	 	 
	 
	 	 	 	 	 	 
	Section 6.01.
	 	Ratification of Indenture.	 	 	6	 
	Section 6.02.
	 	Trustee Not Responsible for Recitals	 	 	6	 
	Section 6.03.
	 	Governing Law	 	 	6	 
	Section 6.04.
	 	Separability	 	 	6	 
	Section 6.05.
	 	Counterparts	 	 	6	 

-i-

 

     SIXTH SUPPLEMENTAL INDENTURE, dated as of March 9, 2010
(the “Supplemental
Indenture”), between Baxter International Inc., a Delaware corporation (the “Company”),
and The Bank of New York Mellon Trust Company, N.A. (as successor in interest to J.P. Morgan Trust
Company, National Association), as Trustee, under the Indenture, dated as of August 8, 2006 (the
“Indenture”), between the Company and the Trustee.

     WHEREAS, the Company executed and delivered the Indenture to the Trustee to provide for, among
other things, the issuance from time to time of the Company’s debt securities in one or more series
as might be authorized under the Indenture;

     WHEREAS, the Indenture provides that the Company and the Trustee may enter into an indenture
supplemental to the Indenture to establish the form and terms of any series of Securities (as
defined in the Indenture) as provided by Sections 2.01 and 3.01 of the Indenture;

     WHEREAS, the Board of Directors of the Company has duly adopted resolutions authorizing the
Company to issue the Securities provided for in this Supplemental Indenture;

     WHEREAS, the Company desires to enter into this Supplemental Indenture to provide for the
establishment of two series of Securities (as defined in the Indenture) to be known as the (i)
1.800% Senior Notes due 2013 (the “2013 Notes”) and (ii) 4.250% Senior Notes due 2020 (the
“2020 Notes”, collectively with the 2013 Notes, the “Notes”), the form, substance,
terms, provisions and conditions of which shall be set forth in the Indenture and this Supplemental
Indenture;

     WHEREAS, the Company has requested that the Trustee execute and deliver this Supplemental
Indenture and satisfy all requirements necessary to make (i) this Supplemental Indenture a valid
instrument in accordance with its terms and (ii) the Securities provided for hereby, when executed
and delivered by the Company and authenticated by the Trustee, the valid obligations of the
Company.

     NOW THEREFORE, each party agrees as follows for the benefit of the other parties and for the
equal and ratable benefit of the Holders of the Notes:

ARTICLE 1

Definitions

     Section 1.01. Definition of Terms.

     Unless the context otherwise requires:

     (a) a term defined in the Indenture has the same meaning when used in this Supplemental
Indenture unless the definition of such term is amended and supplemented pursuant to this
Supplemental Indenture;

     (b) a term defined anywhere in this Supplemental Indenture has the same meaning throughout;

     (c) the singular includes the plural and vice versa;

1

 

     (d) a reference to a Section or Article is to a Section or Article of this Supplemental
Indenture;

     (e) headings are for convenience of reference only and do not affect interpretation;

     (f) the following terms have the meanings given to them in this Section 1.01(f):

     “Closing Date” means March 9, 2010.

     “Company” shall have the meaning set forth in the first paragraph hereof.

     “Depositary” means the clearing agency registered under the Exchange Act that is
designated to act as the Depositary for the Global Notes. The Depository Trust Company shall be
the initial Depositary, until a successor shall have been appointed and become such pursuant to the
applicable provisions of the Indenture, and thereafter, “Depositary” shall mean or include such
successor.

     “Global Notes” shall have the meaning set forth in Section 2.05(b).

     “Initial Notes” means (i) all Notes of each series issued on the first date that Notes
were originally issued under this Supplemental Indenture, (ii) any additional Notes of such series
issued under Section 2.02(a) and (iii) any Notes of such series issued in replacement
therefor.

     “Notes” shall have the meaning set forth in the recitals above and shall include any
Global Note.

ARTICLE 2

The Notes

     Section 2.01. Designation.

     The Company hereby establishes a series of Securities designated the “1.800% Senior Notes due
2013” and a series of Securities designated the “4.250% Senior Notes due 2020” for issuance under
the Indenture.

     Section 2.02. Principal Amount; Series Treatment.

     (a) The 2013 Notes shall be initially limited to an aggregate principal amount of $300,000,000
and the 2020 Notes shall be initially limited to an aggregate principal amount of $300,000,000.
The Company may, from time to time, without the consent of the Holders of either series of Notes,
issue additional Notes of either series, so that such additional Notes and the outstanding Notes of
such series will be consolidated together and form a single series of Securities under the
Indenture as supplemented by this Supplemental Indenture. Any increase in the aggregate principal
amount of either series of Notes shall be evidenced by an Officers’ Certificate to be delivered to
the Trustee, without any further action by the Company.

     (b) Any additional Notes issued under Section 2.02(a) shall have the same terms in all
respects as the corresponding series of Notes, except that interest will accrue on the additional

2

 

Notes from the most recent date to which interest has been paid on the Notes of such series
(other than the additional Notes) or if no interest has been paid on the Outstanding Notes of such
series from the first date that the Outstanding Notes were originally issued under the Indenture,
as supplemented by this Supplemental Indenture.

     (c) For all purposes of the Indenture and this Supplemental Indenture, all 2013 Notes, whether
Initial Notes, or additional Notes issued under Section 2.02(a), shall constitute one
series of Securities and shall vote together as one series of Securities.

     (d) For all purposes of the Indenture and this Supplemental Indenture, all 2020 Notes, whether
Initial Notes, or additional Notes issued under Section 2.02(a), shall constitute one
series of Securities and shall vote together as one series of Securities.

     (e) The Notes shall be issued in minimum denominations of $2,000 and integral multiples of
$1,000 in excess thereof.

     Section 2.03. Maturity.

     The 2013 Notes will become due and payable on March 15, 2013 and the 2020 Notes will become
due and payable on March 15, 2020.

     Section 2.04. Interest. The 2013 Notes and the 2020 Notes will bear interest at the
rate of 1.800% and 4.250% per annum respectively from March 9, 2010 until the principal thereof
becomes due and payable or to the date of redemption or repurchase (if any) of the Notes, such
interest to be payable semi-annually on March 15 and September 15 of each year, to the Holders of
record of the Notes as of the close of business on the March 1 and September 1 preceding such
interest payment dates, commencing, in the case of the Initial Notes or any additional Notes issued
prior to such date, on September 15, 2010.

     Section 2.05. Form of Notes.

     (a) The Notes shall contain the terms set forth in, and shall be substantially in the forms
of, Exhibit A with respect to the 2013 Notes and Exhibit B with respect to the 2020
Notes, each as attached hereto. The terms and provisions contained in the forms of Notes set forth
in Exhibits A and B shall constitute, and are hereby expressly made, a part of the
Indenture, as supplemented by this Supplemental Indenture.

     Any of the Notes may have such letters, numbers or other marks of identification and such
notations, legends, endorsements or changes as the Authorized Officers executing the same may
approve (execution thereof to be conclusive evidence of such approval) and as are not inconsistent
with the provisions of the Indenture, as supplemented by this Supplemental Indenture, or as may be
required by the Depositary or as may be required to comply with any applicable law or with any rule
or regulation made pursuant thereto or with any rule or regulation of any securities exchange or
automated quotation system on which the Notes may be listed, or to conform to usage, or to indicate
any special limitations or restrictions to which any particular Notes are subject.

3

 

     (b) So long as the Notes are eligible for book-entry settlement with the Depositary, or unless
otherwise required by law, or otherwise contemplated herein, each series of the Notes shall be
represented by one or more Notes in global form registered in the name of the Depositary or the
nominee of the Depositary.

     The 2013 and 2020 Notes shall be issued initially in the form of one or more permanent Global
Securities in registered form, substantially in the forms set forth in Exhibits A and B
(the “Global Notes”), respectively, each registered in the name of the nominee of the
Depositary, deposited with the Trustee, as custodian for the Depositary, duly executed by the
Company and authenticated by the Trustee as hereinafter provided. The aggregate principal amount
of the Global Notes may from time to time be increased or decreased by adjustments made on the
records of the Trustee, as custodian for the Depositary or its nominee, in accordance with the
instructions given by the Holder thereof, as hereinafter provided.

     The transfer and exchange of beneficial interests in any such Global Note shall be effected
through the Depositary in accordance with the Indenture and the applicable procedures of the
Depositary. Except as provided in the Indenture, beneficial owners of a Global Note shall not be
entitled to have certificates registered in their names, will not receive or be entitled to receive
physical delivery of certificates in definitive form and will not be considered Holders of such
Global Note.

     Any Global Note shall represent such of the Outstanding Notes as shall be specified therein
and shall provide that it shall represent the aggregate amount of Outstanding Notes from time to
time endorsed thereon and that the aggregate amount of Outstanding Notes represented thereby may
from time to time be increased or reduced to reflect redemptions, transfers or exchanges permitted
hereby. Any endorsement of a Global Note to reflect the amount of any increase or decrease in the
amount of outstanding Notes represented thereby shall be made by the Trustee in such manner and
upon instructions given by the Holder of such Notes in accordance with the Indenture and this
Supplemental Indenture. Payment of principal of and interest and premium, if any, on any Global
Note shall be made to the Holder of such Note.

     Section 2.06. Transfer Restrictions. The following provisions shall apply only to a
Global Note:

     (i) Each Global Note authenticated under this Supplemental Indenture shall be
registered in the name of the Depositary or a nominee thereof and delivered to such
Depositary or a nominee thereof or Trustee if the Trustee is acting as custodian for the
Depositary or its nominee with respect to such Global Note, and each such Global Note shall
constitute a single Note, for the applicable series, for all purposes of the Indenture and
this Supplemental Indenture.

     (ii) Notwithstanding any other provision in this Supplemental Indenture, no Global Note
may be exchanged in whole or in part for Notes registered, and no transfer of a Global Note
in whole or in part may be registered, in the name of any Person other than the Depositary
or a nominee thereof except as provided in Section 3.05 of the Indenture. Any Note issued
in exchange for a Global Note or any portion thereof shall be

4

 

a Global Note; provided that any such Note so issued that is registered in the name of
a Person other than the Depositary or a nominee thereof shall not be a Global Note.

     (iii) Securities issued in exchange for a Global Note or any portion thereof pursuant
to clause (ii) above shall be issued pursuant to Section 3.05 of the Indenture.

     (iv) At such time as all interests in a Global Note have been redeemed, repurchased,
converted, canceled or exchanged for Notes (of an applicable series) in certificated form,
such Global Note shall, upon receipt thereof, be canceled by the Trustee in accordance with
standing procedures and instructions existing between the Depositary and the Trustee. At
any time prior to such cancellation, if any interest in a Global Note is redeemed,
repurchased, converted, canceled or exchanged for Notes (of an applicable series) in
certificated form, the principal amount of such Global Note shall, in accordance with the
standing procedures and instructions existing between the Depositary and the Trustee, be
appropriately reduced, and an endorsement shall be made on such Global Note, by the Trustee
or at the direction of the Trustee, to reflect such reduction.

     Section 2.07. Transfers and Exchanges. Each series of the Notes shall be transferred
and exchanged by the Holders thereof and the Trustee in accordance with the terms and conditions
set forth in Section 3.05 of the Indenture.

ARTICLE 3

Redemption Of The Notes

     Section 3.01. Optional Redemption by Company. Each series of the Notes may be
redeemed at the option of the Company on the terms and conditions set forth, as applicable, in the
forms of Note set forth as Exhibits A and B.

ARTICLE 4

Change of Control

     Section 4.01. Offer to Purchase Upon Change of Control Triggering Event. Upon the
occurrence of a Change of Control Triggering Event (as defined in the forms of Note set forth as
Exhibits A and B), and unless the Company has exercised its option to redeem a series of
the Notes pursuant to Section 3.01, the Company shall be required to make an offer to each
holder of such series of the Notes to repurchase all or any part (equal to $2,000 or an integral
multiple of $1,000 in excess thereof) of that holder’s Notes on the terms and conditions set forth,
as applicable, in the forms of Note set forth as Exhibits A and B.

ARTICLE 5

Execution Of The Notes

     Section 5.01. Execution; Certificates. The Notes and any Officers’ Certificate to be
delivered under the Indenture in connection with the authentication and delivery of the Notes shall
be executed and delivered as set forth in the Indenture.

5

 

ARTICLE 6

Miscellaneous

     Section 6.01. Ratification of Indenture.

     The Indenture, as supplemented by this Supplemental Indenture, is in all respects ratified and
confirmed, and this Supplemental Indenture shall be deemed part of the Indenture in the manner and
to the extent herein and therein provided.

     Section 6.02. Trustee Not Responsible for Recitals.

     The recitals herein contained are made by the Company and not by the Trustee, and the Trustee
assumes no responsibility for the correctness thereof. The Trustee makes no representation as to
the validity or sufficiency of this Supplemental Indenture.

     Section 6.03. Governing Law.

     This Supplemental Indenture and the Notes shall be governed by and construed in accordance
with the laws of the State of New York, as applied to contracts made and performed within the State
of New York, without regard to principles of conflicts of law.

     Section 6.04. Separability.

     In case any one or more of the provisions contained in this Supplemental Indenture or in the
Notes shall for any reason be held to be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other provisions of this
Supplemental Indenture or of the Notes, but this Supplemental Indenture and the Notes shall be
construed as if such invalid or illegal or unenforceable provision had never been contained herein
or therein.

     Section 6.05. Counterparts.

     This Supplemental Indenture may be executed in any number of counterparts each of which shall
be an original; but such counterparts shall together constitute but one and the same instrument.

6

 

     IN WITNESS WHEREOF, the parties hereto have caused this Sixth Supplemental Indenture to be
duly executed as of the date first above written.

	 	 	 	 	 
	 	BAXTER INTERNATIONAL INC.

 	 
	 	By:  	/s/
Robert J. Hombach
 	 
	 	 	Name:  	Robert J. Hombach 	 
	 	 	Title:  	Corporate Vice President
and Treasurer 	 
	 
	 	THE BANK OF NEW YORK MELLON TRUST
 COMPANY, N.A., as
Trustee

 	 
	 	By:  	/s/
Benita A. Vaughn
 	 
	 	 	Name:  	Benita A. Vaughn 	 
	 	 	Title:  	Vice President 	 
	 

(Signature Page to Supplemental Indenture)

 

 

EXHIBIT A

[FACE OF NOTE]

[Each Global Note shall bear the following legend:]

[THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED
TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY IS
EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR
ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND
UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE REGISTERED FORM, THIS
SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO THE NOMINEE OF THE
DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE
DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR TO A
NOMINEE OF SUCH SUCCESSOR DEPOSITARY.

     Unless this certificate is presented by an authorized representative of The Depository Trust
Company, a New York corporation (“DTC”), to the Company or its agent for registration of transfer,
exchange or payment, and any certificate issued is registered in the name of Cede & Co., or such
other name as requested by an authorized representative of DTC (and any payment is made to Cede &
Co. or to such other entity as is required by an authorized representative of DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the
registered owner hereof, Cede & Co., has an interest herein.]

 

 

CUSIP No. 071813BB4

ISIN US071813BB46

BAXTER INTERNATIONAL INC.

1.800% Senior Notes due 2013

			
	 	 	 
	No. A-1
	 	$300,000,000

     Baxter International Inc., a Delaware corporation (the “Company”), for value received,
hereby promises to pay to Cede & Co. or registered assigns, at the office or agency of the Company
in the City of New York, the principal sum of THREE HUNDRED MILLION DOLLARS ($300,000,000) on March
15, 2013, in such coin or currency of the United States of America as at the time of payment shall
be legal tender for the payment of public and private debts, and to pay interest, semiannually on
March 15 and September 15 of each year, commencing on September 15, 2010, on said principal sum at
said office or agency, in like coin or currency, at the rate per annum specified in the title of
this Note, from the March 15 and September 15, as the case may be, next preceding the date of this
Note to which interest has been paid, unless the date hereof is a date to which interest has been
paid, in which case from the date of this Note, or unless no interest has been paid on these Notes,
in which case from March 9, 2010 until payment of said principal sum has been made or duly provided
for; provided, that payment of interest may be made at the option of the Company by check mailed to
the address of the person entitled thereto as such address shall appear on the Security Register or
by wire transfer to an account maintained by the payee with a bank located in the United States.

     Notwithstanding the foregoing, if the date hereof is after the 1st day of March or
September, as the case may be, and before the following March 15 or September 15, as the case may
be, this Note shall bear interest from such March 15 or September 15; provided,
that, if the Company shall default in the payment of interest due on such March 15 or
September 15, then this Note shall bear interest from the next preceding March 15 or September 15,
to which interest has been paid or, if no interest has been paid on these Notes, from March 9,
2010. The interest so payable on any March 15 or September 15, will, subject to certain exceptions
provided in the Indenture referred to on the reverse hereof, be paid to the person in whose name
this Note is registered at the close of business on the March 1 or September 1, as the case may be,
preceding such March 15 or September 15. Interest on this Note will be calculated on the basis of
a 360-day year of twelve 30-day months.

     Reference is made to the further provisions of this Note set forth on the reverse hereof.
Such further provisions shall for all purposes have the same effect as though fully set forth at
this place.

     This Note shall not be valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been signed by the Trustee under the Indenture referred to on the
reverse hereof.

 

 

     IN WITNESS WHEREOF, Baxter International Inc. has caused this instrument to be duly executed
on the date set forth below.

Dated: March 9, 2010

	 	 	 	 	 
	 	BAXTER INTERNATIONAL INC.

 	 
	 	By:  	
 	 
	 	 	Name:  	Robert  J. Hombach 	 
	 	 	Title:  	Corporate Vice President
and Treasurer 	 
	 

 

 

(FORM OF CERTIFICATION OF AUTHENTICATION)

CERTIFICATE OF AUTHENTICATION

     This is one of the Securities of the series designated herein issued under the
within-mentioned Indenture.

	 	 	 	 	 
	THE BANK OF NEW YORK MELLON TRUST
 COMPANY, N.A.
as Trustee

 	 	 
	By:  	
 	 	 
	 	Authorized Signatory 	 	 
	

Dated: 	 	 
	 

 

 

REVERSE OF NOTE

BAXTER INTERNATIONAL INC.

1.800% Senior Notes due 2013

     This Note is one of a duly authorized issue of Securities of the Company of the series
hereinafter specified, all issued or to be issued under and pursuant to an Indenture, dated as of
August 8, 2006, as supplemented by the Sixth Supplemental Indenture, dated as of March 9, 2010
(both together herein called the “Indenture”), between the Company and The Bank of New York
Mellon Trust Company, N.A. (as successor in interest to J.P. Morgan Trust Company, National
Association), as trustee (herein called the “Trustee” which term includes any successor
Trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference
is hereby made for a description of the rights, limitations of rights, obligations, duties and
immunities thereunder of the Trustee, the Company and the Holders of the Securities. This Note is
one of a series of Securities of the Company designated as the 1.800% Senior Notes due 2013 (the
“Notes”), initially limited in aggregate principal amount of $300,000,000, subject to the
issuance of additional Notes as provided in the Indenture. Terms used but not defined herein shall
have the respective meanings set forth in the Indenture.

     If any interest payment date, maturity date or redemption date of this Note falls on a day
that is not a Business Day, payment will be made on the next succeeding Business Day, and no
interest will accrue for the period from and after the interest payment date, maturity date or
redemption date, as the case may be, to the next succeeding Business Day. As used in this Note,
the term “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday which is
not a day on which banking institutions in the City of New York are authorized or obligated by or
pursuant to law, regulation or executive order to close.

     The Indenture contains provisions for the defeasance at any time of the entire indebtedness of
the Notes or certain covenants set forth in the Indenture applicable to the Notes upon compliance
by the Company of certain conditions set forth therein, which provisions apply to this Note.

     This Note is redeemable in whole at any time or in part, from time to time, at the option of
the Company (an “Optional Redemption”), at a make whole redemption price (the “Optional
Redemption Price”) equal to the greater of:

     (i) 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid
interest thereon to the redemption date, and

     (ii) the sum of the present values of the remaining scheduled payments of principal and
interest on the principal amount of the Notes to be redeemed (not including any portion of
the payment of interest accrued as of the date of redemption) discounted to the redemption
date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at
the Treasury Rate plus 10 basis points, plus accrued and unpaid interest thereon to the date
of redemption.

1

 

     “Treasury Rate” means, with respect to any redemption date, the rate per annum equal
to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price
for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such redemption date.

     “Comparable Treasury Issue” means the United States Treasury security selected by an
Independent Investment Banker as having an actual or interpolated maturity comparable to the
remaining term of the Notes to be redeemed that would be utilized, at the time of selection and in
accordance with customary financial practice, in pricing new issues of corporate debt securities of
comparable maturity to the remaining term of the Notes.

     “Comparable Treasury Price” means, with respect to any redemption date, (1) the
average of four Reference Treasury Dealer Quotations for such redemption date, after excluding the
highest and lowest such Reference Treasury Dealer Quotations, or (2) if the Company obtains fewer
than four such Reference Treasury Dealer Quotations, the average of all such quotations.

     “Independent Investment Banker” means one of the Reference Treasury Dealers appointed
by the Company.

     “Reference Treasury Dealers” means (1) Credit Suisse Securities (USA) LLC, Deutsche
Bank Securities Inc. and Goldman, Sachs & Co. and their successors; provided, however, that if any
of the foregoing shall cease to be a primary U.S. Government securities dealer (“Primary
Treasury Dealer”), the Company shall substitute another nationally recognized investment
banking firm that is a Primary Treasury Dealer, and (2) at the option of the Company, additional
Primary Treasury Dealers selected by the Company.

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury
Dealer and any redemption date, the average, as determined by the Company, of the bid and asked
prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal
amount) quoted in writing to the Company by such Reference Treasury Dealer at 5:00 p.m. New York
City time on the third Business Day preceding such redemption date.

     Any redemption pursuant to the preceding paragraph will be made at the Optional Redemption
Price upon not less than 30 nor more than 60 days prior notice before the redemption date to the
Holders. If the Notes are only partially redeemed by the Company pursuant to an Optional
Redemption, the Notes will be redeemed by such method as the Trustee shall deem fair and
appropriate and in accordance with the Indenture. In the event of redemption of this Note in part
only, a new Note or Notes of this series for the unredeemed portion hereof shall be issued in the
name of the Holder hereof upon the cancellation hereof. Unless the Company defaults in payment of
the redemption price, on and after the redemption date interest will cease to accrue on the Notes
or portions thereof called for redemption.

     If a Change of Control Triggering Event (as defined below) occurs, unless the Company has
exercised its option to redeem the Notes (as described above), the Company shall be required to
make an offer (the “Change of Control Offer”) to each holder of the Notes to repurchase all
or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of that holder’s
Notes on the terms set forth below. In the Change of Control Offer, the Company shall be

2

 

required to offer payment in cash equal to 101% of the aggregate principal amount of
Notes repurchased, plus accrued and unpaid interest, if any, on the Notes repurchased to the date
of repurchase (the “Change of Control Payment”). Within 30 days following any Change of
Control Triggering Event or, at the option of the Company, prior to any Change of Control, but
after public announcement of the transaction that constitutes or may constitute the Change of
Control, a notice shall be mailed to holders of the Notes describing the transaction that
constitutes or may constitute the Change of Control Triggering Event and offering to repurchase the
Notes on the date specified in the notice, which date shall be no earlier than 30 days and no later
than 60 days from the date such notice is mailed (the “Change of Control Payment Date”).
The notice shall, if mailed prior to the date of consummation of the Change of Control, state that
the offer to purchase is conditioned on the Change of Control Triggering Event occurring on or
prior to the Change of Control Payment Date.

     On the Change of Control Payment Date, the Company shall, to the extent lawful:

	 	(1)	 	accept for payment all Notes or portions of Notes properly tendered pursuant to
the Change of Control Offer;
	 
	 	(2)	 	deposit with the paying agent an amount equal to the Change of Control
Payment in respect of all Notes or portions of Notes properly tendered; and
	 
	 	(3)	 	deliver or cause to be delivered to the Trustee the Notes properly
accepted together with an Officers’ Certificate stating the aggregate principal amount
of Notes or portions of Notes being repurchased.

     The Company shall not be required to make a Change of Control Offer upon the occurrence of a
Change of Control Triggering Event if a third party makes such an offer in the manner, at the times
and otherwise in compliance with the requirements for an offer made by the Company and the third
party repurchases all Notes properly tendered and not withdrawn under its offer. In addition, the
Company shall not repurchase any Notes if there has occurred and is continuing on the Change of
Control Payment Date an Event of Default, other than a default in the payment of the Change of
Control Payment upon a Change of Control Triggering Event.

     The Company shall comply with the requirements of Rule 14e-1 under the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), and any other securities laws and regulations
thereunder to the extent those laws and regulations are applicable in connection with the
repurchase of the Notes as a result of a Change of Control Triggering Event. To the extent that the
provisions of any such securities laws or regulations conflict with the Change of Control Offer
provisions of the Notes, the Company shall comply with those securities laws and regulations and
shall not be deemed to have breached its obligations under the Change of Control Offer provisions
of the Notes by virtue of any such conflict.

     For purposes of the Change of Control Offer provisions of the Notes, the following definitions
shall apply:

     “Change of Control” means the occurrence of any of the following: (1) the consummation
of any transaction (including, without limitation, any merger or consolidation) the

3

 

result of which
is that any “person” (as that term is used in Section 13(d)(3) of the Exchange Act), other than the
Company or one of its subsidiaries, becomes the beneficial owner (as defined in Rules 13d-3 and
13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the Company’s Voting
Stock or other Voting Stock into which the Company’s Voting Stock is reclassified, consolidated,
exchanged or changed, measured by voting power rather than number of shares; (2) the direct or
indirect sale, transfer, conveyance or other disposition (other than by way of merger or
consolidation), in one or a series of related transactions, of all or substantially all of the
Company’s assets and the assets of its subsidiaries, taken as a whole, to one or more “persons” (as
that term is defined in the Indenture), other than the Company or one of its subsidiaries; (3) the
adoption of a plan relating to the Company’s liquidation or dissolution; or (4) the replacement of
a majority of the Company’s Board of Directors over a two-year period from the directors who
constituted the Company’s Board of Directors at the beginning of such period, and such replacement
directors shall not have been approved by at least a majority of the Company’s Board of Directors
then still in office (either by a specific vote or by approval of a proxy statement in which such
member was named as a nominee for election as a director) who either were members of such Board of
Directors at the beginning of such period or whose election as a member of such Board of Directors
was previously so approved. Notwithstanding the foregoing, a transaction shall not be deemed to be
a Change of Control if (1) the Company becomes a direct or indirect wholly-owned subsidiary of a
holding company and (2)(A) the direct or indirect holders of the Voting Stock of such holding
company immediately following that transaction are substantially the same as the holders of the
Company’s Voting Stock immediately prior to that transaction or (B) immediately following that
transaction no “person” (as that term is used in Section 13(d)(3) of the Exchange Act) (other than
a holding company satisfying the requirements of this sentence) is the beneficial owner, directly
or indirectly, of more than 50% of the Voting Stock of such holding company.

     “Change of Control Triggering Event” means the occurrence of both a Change of Control
and a Rating Event.

     “Investment Grade Rating” means a rating equal to or higher than Baa3 (or the
equivalent) by Moody’s and BBB- (or the equivalent) by S&P, and the equivalent investment grade
credit rating from any replacement Rating Agency or Rating Agencies.

     “Moody’s” means Moody’s Investors Service, Inc.

     “Rating Agencies” means (1) each of Moody’s and S&P, and (2) if either Moody’s or S&P
ceases to rate the Notes or fails to make a rating of the Notes publicly available for reasons
outside of the Company’s control, a “nationally recognized statistical rating organization” within
the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act selected by the Company (as
certified by a resolution of the Company’s Board of Directors) as a replacement agency for Moody’s
or S&P, or both of them, as the case may be.

     “Rating Event” means the rating on the Notes is lowered by each of the Rating Agencies
and the Notes are rated below an Investment Grade Rating by each of the Rating Agencies on any day
within the 60-day period (which 60-day period will be extended so long as the rating of the Notes
is under publicly announced consideration for a possible downgrade by any of the Rating Agencies
but no longer than 180 days) after the earlier of (1) the occurrence of a Change

4

 

of Control and (2)
public notice of the Company’s intention to effect a Change of Control; provided,
however, that a Rating Event otherwise arising by virtue of a particular reduction in
rating shall not be deemed to have occurred in respect of a particular Change of Control (and thus
shall not be deemed a Rating Event for purposes of the definition of Change of Control Triggering
Event) if the Rating Agencies making the reduction in rating to which this definition would
otherwise apply do not announce or publicly confirm or inform the Trustee in writing at the
Company’s or its request that the reduction was the result, in whole or in part, of any event or
circumstance comprised of or arising as a result of, or in respect of, the applicable Change of
Control (whether or not the applicable Change of Control has occurred at the time of the Rating
Event).

     “S&P” means Standard & Poor’s Rating Services, a division of The McGraw-Hill
Companies, Inc.

     “Voting Stock” means, with respect to any specified “person” (as that term is used in
Section 13(d)(3) of the Exchange Act), as of any date, the capital stock of such person that is at
the time entitled to vote generally in the election of the board of directors of such person.

     The Company’s obligation to make a Change of Control Offer as set forth herein shall be
subject to the covenant defeasance provisions of Section 13.02(c) of the Indenture.

     If an Event of Default, with respect to the Notes shall have occurred and be continuing, the
principal of this Note may be declared due and payable in the manner and with the effect set forth
in the Indenture.

     The Indenture contains provisions permitting the Company and the Trustee, with the consent of
the Holders of not less than a majority in aggregate principal amount of the Notes at the time
Outstanding of each series to be affected to execute supplemental indentures adding any provisions
to or changing in any manner or eliminating any of the provisions of the Indenture or of any
supplemental indenture or modifying in any manner the rights of the Holders of the Notes subject to
the limitations set forth in the Indenture. It is also provided in the Indenture that, with
respect to certain defaults or Events of Default regarding the Securities of any series, the
Holders of a majority in aggregate principal amount of the Securities at the time Outstanding of
such series may on behalf of the Holders of all the Securities of such series waive any such past
default or Event of Default and its consequences. The preceding sentence shall not, however, apply
to a default in the payment of the principal of or premium, if any, or interest on the Notes. Any
such consent or waiver by the Holder of this Note (unless revoked as provided in the Indenture)
shall be conclusive and binding upon such Holder and upon all future Holders and owners of this
Note and any Notes which may be issued in exchange or substitution herefor, irrespective of whether
or not any notation thereof is made upon this Note or such other Notes.

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligations of the Company, which are absolute and unconditional, to pay the
principal of, and any premium and interest on, this Note in the manner and at the respective times
herein provided.

5

 

     The Notes are issuable in registered form without coupons in denominations of $2,000 and any
multiple of $1,000 in excess thereof. In the manner and subject to the limitations provided in the
Indenture, but without the payment of any service charge, Notes may be exchanged for a like
aggregate principal amount of Notes of other authorized denominations at the office or agency of
the Trustee in the City of New York.

     There is no sinking fund for the retirement of the Notes.

     Upon due presentment for registration of transfer of this Note at the office or agency of the
Trustee in the City of New York, a new Note or Notes of authorized denominations for an equal
aggregate principal amount will be issued to the transferee in exchange therefor, subject to the
limitations provided in the Indenture, without charge except for any tax or other governmental
charge imposed in connection therewith.

     Prior to due presentment for registration of transfer, the Company, the Trustee and any agent
of the Company, or the Trustee may treat the registered Holder hereof as the owner of this Note
(whether or not this Note shall be overdue), for the purpose of receiving payment of the principal
hereof and premium, if any, and subject to the provisions on the face hereof, interest hereon, and
for all other purposes, and neither the Company, nor the Trustee nor any agent of the Company, or
the Trustee shall be affected by any notice to the contrary.

     No recourse under or upon any obligation, covenant or agreement contained in the Indenture or
any indenture supplemental thereto or in any Note, or because of any indebtedness evidenced
thereby, shall be had against any past, present or future stockholder, employee, officer or
director, as such, of the Company, or of any predecessor or successor, either directly or through
the Company, or any predecessor or successor, under any rule of law, statute or constitutional
provision or by the enforcement of any assessment or by any legal or equitable proceeding or
otherwise, all such liability being expressly waived and released by the acceptance hereof and as
part of the consideration for the issue hereof.

     This Note is the senior unsecured and unsubordinated obligation of the Company and will rank
on parity with all other unsecured and unsubordinated indebtedness of the Company, including any
other Securities issued under the Indenture.

6

 

[FORM OF TRANSFER NOTICE]

     FOR VALUE RECEIVED the undersigned registered holder hereby sell(s), assign(s) and transfer(s)
unto

Insert Taxpayer Identification No.

 

Please print or typewrite name and address including zip code of assignee

 

the within Note and all rights thereunder, hereby irrevocably constituting and appointing attorney
to transfer said Note on the books of

 

the Company with full power of substitution in the premises.

By:                                                                

Date:                                                             

 

 

Schedule I

[Include as Schedule I only for a Global Note]

BAXTER INTERNATIONAL INC.

1.800% Senior Notes due 2013

No. ____

	 	 	 	 	 	 	 
	 	 	 	 	Notation Explaining Principal	 	Authorized Signature of
	Date	 	Principal Amount	 	Amount Recorded	 	Trustee or Custodian
	 
	 	 	 	 	 	 

 

 

EXHIBIT B

[FACE
OF NOTE]

[Each Global Note shall bear the following legend:]

[THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED
TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY IS
EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR
ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND
UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE REGISTERED FORM, THIS
SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO THE NOMINEE OF THE
DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE
DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR TO A
NOMINEE OF SUCH SUCCESSOR DEPOSITARY.

     Unless this certificate is presented by an authorized representative of The Depository Trust
Company, a New York corporation (“DTC”), to the Company or its agent for registration of transfer,
exchange or payment, and any certificate issued is registered in the name of Cede & Co., or such
other name as requested by an authorized representative of DTC (and any payment is made to Cede &
Co. or to such other entity as is required by an authorized representative of DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the
registered owner hereof, Cede & Co., has an interest herein.]

 

 

CUSIP No. 071813BC2

ISIN US071813BC29

BAXTER INTERNATIONAL INC.

4.250% Senior Notes due 2020

			
	 	 	 
	No. B-1
	 	$300,000,000

     Baxter International Inc., a Delaware corporation (the “Company”), for value received,
hereby promises to pay to Cede & Co. or registered assigns, at the office or agency of the Company
in the City of New York, the principal sum of THREE HUNDRED MILLION DOLLARS ($300,000,000) on March
15, 2020, in such coin or currency of the United States of America as at the time of payment shall
be legal tender for the payment of public and private debts, and to pay interest, semiannually on
March 15 and September 15 of each year, commencing on September 15, 2010, on said principal sum at
said office or agency, in like coin or currency, at the rate per annum specified in the title of
this Note, from the March 15 and September 15, as the case may be, next preceding the date of this
Note to which interest has been paid, unless the date hereof is a date to which interest has been
paid, in which case from the date of this Note, or unless no interest has been paid on these Notes,
in which case from March 9, 2010 until payment of said principal sum has been made or duly provided
for; provided, that payment of interest may be made at the option of the Company by check mailed to
the address of the person entitled thereto as such address shall appear on the Security Register or
by wire transfer to an account maintained by the payee with a bank located in the United States.

     Notwithstanding the foregoing, if the date hereof is after the 1st day of March or
September, as the case may be, and before the following March 15 or Septembert 15, as the case may
be, this Note shall bear interest from such March 15 or September 15; provided,
that, if the Company shall default in the payment of interest due on such March 15 or
September 15, then this Note shall bear interest from the next preceding March 15 or September 15,
to which interest has been paid or, if no interest has been paid on these Notes, from March 9,
2010. The interest so payable on any March 15 or September 15, will, subject to certain exceptions
provided in the Indenture referred to on the reverse hereof, be paid to the person in whose name
this Note is registered at the close of business on the March 1 or September 1, as the case may be,
preceding such March 15 or September 15. Interest on this Note will be calculated on the basis of
a 360-day year of twelve 30-day months.

     Reference is made to the further provisions of this Note set forth on the reverse hereof.
Such further provisions shall for all purposes have the same effect as though fully set forth at
this place.

     This Note shall not be valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been signed by the Trustee under the Indenture referred to on the
reverse hereof.

 

 

     IN WITNESS WHEREOF, Baxter International Inc. has caused this instrument to be duly executed
on the date set forth below.

Dated: March 9, 2010

	 	 	 	 	 
	 	BAXTER INTERNATIONAL INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Robert  J. Hombach 	 
	 	 	Title:  	Corporate Vice President
and Treasurer 	 

 

 

	 	 	 	 	 

(FORM OF CERTIFICATION OF AUTHENTICATION)

CERTIFICATE OF AUTHENTICATION

     This is one of the Securities of the series designated herein issued under the
within-mentioned Indenture.

	 	 	 	 	 
	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.

     as Trustee

 	 	 
	By:  	 	 	 
	 	Authorized Signatory 	 	 
	 	 	 	 

Dated:

 

 

REVERSE OF NOTE

BAXTER INTERNATIONAL INC.

4.250% Senior Notes due 2020

     This Note is one of a duly authorized issue of Securities of the Company of the series
hereinafter specified, all issued or to be issued under and pursuant to an Indenture, dated as of
August 8, 2006, as supplemented by the Sixth Supplemental Indenture, dated as of March 9, 2010
(both together herein called the “Indenture”), between the Company and The Bank of New York
Mellon Trust Company, N.A. (as successor in interest to J.P. Morgan Trust Company, National
Association), as trustee (herein called the “Trustee” which term includes any successor
Trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference
is hereby made for a description of the rights, limitations of rights, obligations, duties and
immunities thereunder of the Trustee, the Company and the Holders of the Securities. This Note is
one of a series of Securities of the Company designated as the 4.250% Senior Notes due 2020 (the
“Notes”), initially limited in aggregate principal amount of $300,000,000, subject to the
issuance of additional Notes as provided in the Indenture. Terms used but not defined herein shall
have the respective meanings set forth in the Indenture.

     If any interest payment date, maturity date or redemption date of this Note falls on a day
that is not a Business Day, payment will be made on the next succeeding Business Day, and no
interest will accrue for the period from and after the interest payment date, maturity date or
redemption date, as the case may be, to the next succeeding Business Day. As used in this Note,
the term “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday which is
not a day on which banking institutions in the City of New York are authorized or obligated by or
pursuant to law, regulation or executive order to close.

     The Indenture contains provisions for the defeasance at any time of the entire indebtedness of
the Notes or certain covenants set forth in the Indenture applicable to the Notes upon compliance
by the Company of certain conditions set forth therein, which provisions apply to this Note.

     This Note is redeemable in whole at any time or in part, from time to time, at the option of
the Company (an “Optional Redemption”), at a make whole redemption price (the “Optional
Redemption Price”) equal to the greater of:

     (i) 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid
interest thereon to the redemption date, and

     (ii) the sum of the present values of the remaining scheduled payments of principal and
interest on the principal amount of the Notes to be redeemed (not including any portion of
the payment of interest accrued as of the date of redemption) discounted to the redemption
date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at
the Treasury Rate plus 12.5 basis points, plus accrued and unpaid interest thereon to the date
of redemption.

1

 

     “Treasury Rate” means, with respect to any redemption date, the rate per annum equal
to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price
for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such redemption date.

     “Comparable Treasury Issue” means the United States Treasury security selected by an
Independent Investment Banker as having an actual or interpolated maturity comparable to the
remaining term of the Notes to be redeemed that would be utilized, at the time of selection and in
accordance with customary financial practice, in pricing new issues of corporate debt securities of
comparable maturity to the remaining term of the Notes.

     “Comparable Treasury Price” means, with respect to any redemption date, (1) the
average of four Reference Treasury Dealer Quotations for such redemption date, after excluding the
highest and lowest such Reference Treasury Dealer Quotations, or (2) if the Company obtains fewer
than four such Reference Treasury Dealer Quotations, the average of all such quotations.

     “Independent Investment Banker” means one of the Reference Treasury Dealers appointed
by the Company.

     “Reference Treasury Dealers” means (1) Credit Suisse Securities (USA) LLC, Deutsche
Bank Securities Inc. and Goldman, Sachs & Co. and their successors; provided, however, that if any
of the foregoing shall cease to be a primary U.S. Government securities dealer (“Primary
Treasury Dealer”), the Company shall substitute another nationally recognized investment
banking firm that is a Primary Treasury Dealer, and (2) at the option of the Company, additional
Primary Treasury Dealers selected by the Company.

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury
Dealer and any redemption date, the average, as determined by the Company, of the bid and asked
prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal
amount) quoted in writing to the Company by such Reference Treasury Dealer at 5:00 p.m. New York
City time on the third Business Day preceding such redemption date.

     Any redemption pursuant to the preceding paragraph will be made at the Optional Redemption
Price upon not less than 30 nor more than 60 days prior notice before the redemption date to the
Holders. If the Notes are only partially redeemed by the Company pursuant to an Optional
Redemption, the Notes will be redeemed by such method as the Trustee shall deem fair and
appropriate and in accordance with the Indenture. In the event of redemption of this Note in part
only, a new Note or Notes of this series for the unredeemed portion hereof shall be issued in the
name of the Holder hereof upon the cancellation hereof. Unless the Company defaults in payment of
the redemption price, on and after the redemption date interest will cease to accrue on the Notes
or portions thereof called for redemption.

     If a Change of Control Triggering Event (as defined below) occurs, unless the Company has
exercised its option to redeem the Notes (as described above), the Company shall be required to
make an offer (the “Change of Control Offer”) to each holder of the Notes to repurchase all
or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of that holder’s
Notes on the terms set forth below. In the Change of Control Offer, the Company shall be

2

 

required
to offer payment in cash equal to 101% of the aggregate principal amount of Notes repurchased, plus
accrued and unpaid interest, if any, on the Notes repurchased to the date of
repurchase (the “Change of Control Payment”). Within 30 days following any Change of
Control Triggering Event or, at the option of the Company, prior to any Change of Control, but
after public announcement of the transaction that constitutes or may constitute the Change of
Control, a notice shall be mailed to holders of the Notes describing the transaction that
constitutes or may constitute the Change of Control Triggering Event and offering to repurchase the
Notes on the date specified in the notice, which date shall be no earlier than 30 days and no later
than 60 days from the date such notice is mailed (the “Change of Control Payment Date”).
The notice shall, if mailed prior to the date of consummation of the Change of Control, state that
the offer to purchase is conditioned on the Change of Control Triggering Event occurring on or
prior to the Change of Control Payment Date.

     On the Change of Control Payment Date, the Company shall, to the extent lawful:

	 	(1)	 	accept for payment all Notes or portions of Notes properly tendered pursuant to
the Change of Control Offer;
	 
	 	(2)	 	deposit with the paying agent an amount equal to the Change of Control
Payment in respect of all Notes or portions of Notes properly tendered; and
	 
	 	(3)	 	deliver or cause to be delivered to the Trustee the Notes properly
accepted together with an Officers’ Certificate stating the aggregate principal amount
of Notes or portions of Notes being repurchased.

     The Company shall not be required to make a Change of Control Offer upon the occurrence of a
Change of Control Triggering Event if a third party makes such an offer in the manner, at the times
and otherwise in compliance with the requirements for an offer made by the Company and the third
party repurchases all Notes properly tendered and not withdrawn under its offer. In addition, the
Company shall not repurchase any Notes if there has occurred and is continuing on the Change of
Control Payment Date an Event of Default, other than a default in the payment of the Change of
Control Payment upon a Change of Control Triggering Event.

     The Company shall comply with the requirements of Rule 14e-1 under the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), and any other securities laws and regulations
thereunder to the extent those laws and regulations are applicable in connection with the
repurchase of the Notes as a result of a Change of Control Triggering Event. To the extent that the
provisions of any such securities laws or regulations conflict with the Change of Control Offer
provisions of the Notes, the Company shall comply with those securities laws and regulations and
shall not be deemed to have breached its obligations under the Change of Control Offer provisions
of the Notes by virtue of any such conflict.

     For purposes of the Change of Control Offer provisions of the Notes, the following definitions
shall apply:

     “Change of Control” means the occurrence of any of the following: (1) the consummation
of any transaction (including, without limitation, any merger or consolidation) the

3

 

result of which is that any “person” (as that term is used in Section 13(d)(3) of the Exchange
Act), other than the Company or one of its subsidiaries, becomes the beneficial owner (as
defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50%
of the Company’s Voting Stock or other Voting Stock into which the Company’s Voting Stock is
reclassified, consolidated, exchanged or changed, measured by voting power rather than number of
shares; (2) the direct or indirect sale, transfer, conveyance or other disposition (other than by
way of merger or consolidation), in one or a series of related transactions, of all or
substantially all of the Company’s assets and the assets of its subsidiaries, taken as a whole, to
one or more “persons” (as that term is defined in the Indenture), other than the Company or one of
its subsidiaries; (3) the adoption of a plan relating to the Company’s liquidation or dissolution;
or (4) the replacement of a majority of the Company’s Board of Directors over a two-year period
from the directors who constituted the Company’s Board of Directors at the beginning of such
period, and such replacement directors shall not have been approved by at least a majority of the
Company’s Board of Directors then still in office (either by a specific vote or by approval of a
proxy statement in which such member was named as a nominee for election as a director) who either
were members of such Board of Directors at the beginning of such period or whose election as a
member of such Board of Directors was previously so approved. Notwithstanding the foregoing, a
transaction shall not be deemed to be a Change of Control if (1) the Company becomes a direct or
indirect wholly-owned subsidiary of a holding company and (2)(A) the direct or indirect holders of
the Voting Stock of such holding company immediately following that transaction are substantially
the same as the holders of the Company’s Voting Stock immediately prior to that transaction or (B)
immediately following that transaction no “person” (as that term is used in Section 13(d)(3) of the
Exchange Act) (other than a holding company satisfying the requirements of this sentence) is the
beneficial owner, directly or indirectly, of more than 50% of the Voting Stock of such holding
company.

     “Change of Control Triggering Event” means the occurrence of both a Change of Control
and a Rating Event.

     “Investment Grade Rating” means a rating equal to or higher than Baa3 (or the
equivalent) by Moody’s and BBB- (or the equivalent) by S&P, and the equivalent investment grade
credit rating from any replacement Rating Agency or Rating Agencies.

     “Moody’s” means Moody’s Investors Service, Inc.

     “Rating Agencies” means (1) each of Moody’s and S&P, and (2) if either Moody’s or S&P
ceases to rate the Notes or fails to make a rating of the Notes publicly available for reasons
outside of the Company’s control, a “nationally recognized statistical rating organization” within
the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act selected by the Company (as
certified by a resolution of the Company’s Board of Directors) as a replacement agency for Moody’s
or S&P, or both of them, as the case may be.

     “Rating Event” means the rating on the Notes is lowered by each of the Rating Agencies
and the Notes are rated below an Investment Grade Rating by each of the Rating Agencies on any day
within the 60-day period (which 60-day period will be extended so long as the rating of the Notes
is under publicly announced consideration for a possible downgrade by any of the Rating Agencies
but no longer than 180 days) after the earlier of (1) the occurrence of a Change

4

 

of Control and (2) public notice of the Company’s intention to effect a Change of Control;
provided, however, that a Rating Event otherwise arising by virtue of a particular
reduction in rating shall not be deemed to have occurred in respect of a particular Change of
Control (and thus shall not be deemed a Rating Event for purposes of the definition of Change of
Control Triggering Event) if the Rating Agencies making the reduction in rating to which this
definition would otherwise apply do not announce or publicly confirm or inform the Trustee in
writing at the Company’s or its request that the reduction was the result, in whole or in part, of
any event or circumstance comprised of or arising as a result of, or in respect of, the applicable
Change of Control (whether or not the applicable Change of Control has occurred at the time of the
Rating Event).

     “S&P” means Standard & Poor’s Rating Services, a division of The McGraw-Hill
Companies, Inc.

     “Voting Stock” means, with respect to any specified “person” (as that term is used in
Section 13(d)(3) of the Exchange Act), as of any date, the capital stock of such person that is at
the time entitled to vote generally in the election of the board of directors of such person.

     The Company’s obligation to make a Change of Control Offer as set forth herein shall be
subject to the covenant defeasance provisions of Section 13.02(c) of the Indenture.

     If an Event of Default, with respect to the Notes shall have occurred and be continuing, the
principal of this Note may be declared due and payable in the manner and with the effect set forth
in the Indenture.

     The Indenture contains provisions permitting the Company and the Trustee, with the consent of
the Holders of not less than a majority in aggregate principal amount of the Notes at the time
Outstanding of each series to be affected to execute supplemental indentures adding any provisions
to or changing in any manner or eliminating any of the provisions of the Indenture or of any
supplemental indenture or modifying in any manner the rights of the Holders of the Notes subject to
the limitations set forth in the Indenture. It is also provided in the Indenture that, with
respect to certain defaults or Events of Default regarding the Securities of any series, the
Holders of a majority in aggregate principal amount of the Securities at the time Outstanding of
such series may on behalf of the Holders of all the Securities of such series waive any such past
default or Event of Default and its consequences. The preceding sentence shall not, however, apply
to a default in the payment of the principal of or premium, if any, or interest on the Notes. Any
such consent or waiver by the Holder of this Note (unless revoked as provided in the Indenture)
shall be conclusive and binding upon such Holder and upon all future Holders and owners of this
Note and any Notes which may be issued in exchange or substitution herefor, irrespective of whether
or not any notation thereof is made upon this Note or such other Notes.

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligations of the Company, which are absolute and unconditional, to pay the
principal of, and any premium and interest on, this Note in the manner and at the respective times
herein provided.

5

 

     The Notes are issuable in registered form without coupons in denominations of $2,000 and any
multiple of $1,000 in excess thereof. In the manner and subject to the limitations provided in the
Indenture, but without the payment of any service charge, Notes may be exchanged for a like
aggregate principal amount of Notes of other authorized denominations at the office or agency of
the Trustee in the City of New York.

     There is no sinking fund for the retirement of the Notes.

     Upon due presentment for registration of transfer of this Note at the office or agency of the
Trustee in the City of New York, a new Note or Notes of authorized denominations for an equal
aggregate principal amount will be issued to the transferee in exchange therefor, subject to the
limitations provided in the Indenture, without charge except for any tax or other governmental
charge imposed in connection therewith.

     Prior to due presentment for registration of transfer, the Company, the Trustee and any agent
of the Company, or the Trustee may treat the registered Holder hereof as the owner of this Note
(whether or not this Note shall be overdue), for the purpose of receiving payment of the principal
hereof and premium, if any, and subject to the provisions on the face hereof, interest hereon, and
for all other purposes, and neither the Company, nor the Trustee nor any agent of the Company, or
the Trustee shall be affected by any notice to the contrary.

     No recourse under or upon any obligation, covenant or agreement contained in the Indenture or
any indenture supplemental thereto or in any Note, or because of any indebtedness evidenced
thereby, shall be had against any past, present or future stockholder, employee, officer or
director, as such, of the Company, or of any predecessor or successor, either directly or through
the Company, or any predecessor or successor, under any rule of law, statute or constitutional
provision or by the enforcement of any assessment or by any legal or equitable proceeding or
otherwise, all such liability being expressly waived and released by the acceptance hereof and as
part of the consideration for the issue hereof.

     This Note is the senior unsecured and unsubordinated obligation of the Company and will rank
on parity with all other unsecured and unsubordinated indebtedness of the Company, including any
other Securities issued under the Indenture.

6

 

[FORM OF TRANSFER NOTICE]

     FOR VALUE RECEIVED the undersigned registered holder hereby sell(s), assign(s) and transfer(s)
unto

Insert Taxpayer Identification No.

 
 
Please print or typewrite name and address including zip code of assignee

 
 
the within Note and all rights thereunder, hereby irrevocably constituting and appointing attorney
to transfer said Note on the books of

 
 
the Company with full power of substitution in the premises.

	 	 	 	 	 
	 	 	 
	By:  	 	 	 
	 	 	 	 
	Date:  	 	 	 	 
	 

 

Schedule I

[Include as Schedule I only for a Global Note]

BAXTER INTERNATIONAL INC.

4.250% Senior Notes due 2020

No.           

	 	 	 	 	 	 	 
	 	 	 	 	Notation Explaining Principal	 	Authorized Signature of
	Date	 	Principal Amount	 	Amount Recorded	 	Trustee or Custodian

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