Document:

exv4w2

 

Exhibit 4.2

 

4.750% NOTES DUE 2010

FIRST SUPPLEMENTAL INDENTURE

among

BAXTER FINCO B.V.,

as Issuer

and

BAXTER INTERNATIONAL INC.,

as Guarantor

and

J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION,

as Trustee

Dated as of October 5, 2005

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	 Page
	
ARTICLE 1
	Definitions
	 
	 	 	 	 	 	 
	Section 1.01.

	 	Definition of Terms.	 	 	1
	 
	 	 	 	 	 	 
	ARTICLE 2
	The Notes
	 
	 	 	 	 	 	 
	Section 2.01.

	 	Designation.
	 	 	4
	Section 2.02.

	 	Principal Amount; Series Treatment
	 	 	4
	Section 2.03.

	 	Maturity.
	 	 	4
	Section 2.04.

	 	Interest; Additional Amounts
	 	 	5
	Section 2.05.

	 	Form of Notes and Guarantee
	 	 	5
	Section 2.06.

	 	Restrictive Legends
	 	 	6
	Section 2.07.

	 	Transfer Restrictions
	 	 	7
	Section 2.08.

	 	Transfers and Exchanges
	 	 	8
	Section 2.09.

	 	Additional Interest
	 	 	8
	 
	 	 	 	 	 	 
	ARTICLE 3
	Redemption Of The Notes
	 
	 	 	 	 	 	 
	Section 3.01.

	 	Optional Redemption by Company	 	 	8
	 
	 	 	 	 	 	 
	ARTICLE 4
	Execution Of The Notes
	 
	 	 	 	 	 	 
	Section 4.01.

	 	Execution; Certificates	 	 	9
	 
	 	 	 	 	 	 
	ARTICLE 5
	Miscellaneous
	 
	 	 	 	 	 	 
	Section 5.01.

	 	No Resales by Affiliates
	 	 	9
	Section 5.02.

	 	Ratification of Indenture
	 	 	9
	Section 5.03.

	 	Trustee Not Responsible for Recitals
	 	 	9
	Section 5.04.

	 	Governing Law
	 	 	9
	Section 5.05.

	 	Separability
	 	 	9
	Section 5.06.

	 	Counterparts
	 	 	9

-i-

 

     FIRST SUPPLEMENTAL INDENTURE, dated as of October 5, 2005 (the “Supplemental
Indenture”), among Baxter Finco B.V., a private company with limited liability organized under
the laws of The Netherlands (the “Company”), Baxter International Inc., a Delaware
corporation and indirect parent company of the Company (the “Guarantor”), and J.P. Morgan
Trust Company, National Association, a national banking association, as Trustee, under the
Indenture, dated as of October 5, 2005 (the “Indenture”), among the Company, the Guarantor
and the Trustee.

     WHEREAS, the Company and the Guarantor 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, the Guarantor 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 Board of Directors of the Guarantor has duly adopted resolutions authorizing the
Guarantor to issue the Parent Guarantee (as defined in the Indenture) provided for in this
Supplemental Indenture;

     WHEREAS, the Company and the Guarantor desire to enter into this Supplemental Indenture to
provide for the establishment of Securities of a Guaranteed Series (as defined in the Indenture) to
be known as the 4.750% Notes due 2010 (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 and the Guarantor have 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, (ii) the Securities provided for hereby,
when executed and delivered by the Company and authenticated by the Trustee, the valid obligations
of the Company and (iii) the Parent Guarantee provided for hereby, when executed and delivered by
the Guarantor and appended to the Notes, the valid obligations of the Guarantor:

     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 and the Parent Guarantee endorsed thereon:

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;

     (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):

     “Additional Interest” means Additional Interest as defined in the Registration Rights
Agreement.

     “Closing Date” means October 5, 2005.

     “Clearstream” means Clearstream Banking SA.

     “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 this Indenture, and thereafter, “Depositary” shall mean or include such
successor.

     “Euroclear” means Euroclear Bank S.A./N.V., and its successors or assigns, as operator
of the Euroclear system.

     “Exchange Guarantee” means the guarantee by the Guarantor of the Company’s obligations
under the Exchange Notes containing terms identical in all material respects to the Initial
Guarantee.

     “Exchange Offer” means the exchange offer by the Company of the Exchange Notes for the
Initial Notes and the exchange offer by the Guarantor of the Exchange Guarantee for the Initial
Guarantee, in each case pursuant to the Registration Rights Agreement.

     “Exchange Offer Registration Statement” means a registration statement relating to an
Exchange Offer as provided for, and in accordance with, the Registration Rights Agreement,
including the prospectus contained therein, all exhibits thereto and all material incorporated by
reference therein.

2

 

     “Exchange Notes” means the Notes of the Company to be offered to Holders in exchange
for the Initial Notes pursuant to the Exchange Offer or otherwise pursuant to a Registration of the
Exchange Notes containing terms identical to the Notes for which they are exchanged (except that
(i) interest thereon shall accrue from the last date on which interest was paid on the
corresponding series of Notes or, if no such interest has been paid, from the first date that the
corresponding series of Notes was originally issued under the Indenture as supplemented by this
Supplemental Indenture, (ii) the provisions relating to Additional Interest (other than any
Additional Interest accrued through that date of issuance of such Exchange Notes) will be
eliminated and (iii) the Exchange Notes will be registered under the Securities Act and will not be
subject to transfer restrictions or bear the Restricted Legend).

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

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

     “Initial Guarantee” means the Parent Guarantee issued by the Guarantor in respect of
any Initial Notes.

     “Initial Notes” means (i) all Notes issued on the first date that Notes were
originally issued under this Supplemental Indenture, (ii) any additional Notes issued under
Section 2.02 in any offering not registered under the Securities Act and (iii) any Notes
issued in replacement therefor, but not including any Exchange Notes issued in exchange therefor.

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

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

     “Registration” means a registered exchange offer for the Initial Notes and the Initial
Guarantee by the Company and the Guarantor or other registration of the Initial Notes and the
Initial Guarantee under the Securities Act pursuant to and in accordance with the terms of the
Registration Rights Agreement.

     “Registration Rights Agreement” means the Registration Rights Agreement, dated as of
October 5, 2005, among the Company, the Guarantor and Deutsche Bank Securities Inc., Goldman, Sachs
& Co., ABN AMRO Incorporated, BNP Paribas Securities Corp. and Wachovia Capital Markets, LLC.

     “Registration Statement” means the Registration Statement pursuant to and as defined
in the Registration Rights Agreement.

     “Regulation S” means Regulation S under the Securities Act.

     “Regulation S Certificate” means a certificate substantially in the form of
Exhibit C hereto.

     “Restricted Legend” means the “restricted legends” referred to in Section
2.06(a) with respect to the U.S. Global Note and the Offshore Global Note.

3

 

     “Rule 144A” means Rule 144A under the Securities Act.

     “Rule 144A Certificate” means (i) a certificate substantially in the form of
Exhibit B hereto or (ii) a written certification addressed to the Company and the Trustee
to the effect that the Person making such certification (x) is acquiring such Note (or beneficial
interest) for its own account or one or more accounts with respect to which it exercises sole
investment discretion and that it and each such account is a qualified institutional buyer within
the meaning of Rule 144A, (y) is aware that the transfer to it or exchange, as applicable, is being
made in reliance upon the exemption from the provisions of Section 5 of the Securities Act provided
by Rule 144A and (z) acknowledges that it has received such information regarding the Company as it
has requested pursuant to Rule 144A(d)(4) or has determined not to request such information.

     “U.S. Global Note” shall have the meaning set forth in Section 2.05(b) hereof.

ARTICLE 2

The Notes

     Section 2.01. Designation.

     The Company hereby establishes a Rule 144A Guaranteed Series of Securities designated the
“4.750% Notes due 2010” for issuance under the Indenture.

     Section 2.02. Principal Amount; Series Treatment.

     (a) The Notes shall be initially limited to an aggregate principal amount of $500,000,000.
The Company may, from time to time, without the consent of the Holders of the outstanding Notes,
issue additional Notes, so that such additional Notes and the outstanding Notes shall be
consolidated together and form a single series of Securities under the Indenture as supplemented by
this Supplemental Indenture.

     (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
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 Notes, whether
Initial Notes, Exchange 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) The Notes shall be issued in minimum denominations of $100,000 and integral multiples of
$1,000 in excess thereof.

     Section 2.03. Maturity.

     The Notes will become due and payable on October 15, 2010.

4

 

     Section 2.04. Interest; Additional Amounts. The Notes will bear interest at the rate
of 4.750% per annum from October 5, 2005 until the principal thereof becomes due and payable or to
the date of redemption (if any) of the Notes, such interest to be payable semi-annually on April 15
and October 15 of each year, commencing, in the case of the Initial Notes or any additional Notes
issued prior to such date, on April 15, 2006. Additional Amounts on the Notes shall be payable
subject to the terms and conditions set forth in the form of Exhibit A hereto.

     Section 2.05. Form of Notes and the Parent Guarantee.

     (a) The Notes shall contain the terms set forth in, and shall be substantially in the form of,
Exhibit A hereto, provided that Exchange Notes (i) shall contain the alternative ninth
paragraph appearing on the reverse of the Notes as set forth on Exhibit A and (ii) shall
not contain the Restricted Legend or the eighth paragraph appearing on the reverse of the Notes as
set forth on Exhibit A. The terms and provisions contained in the form of Notes set forth
in Exhibit A 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 for the Initial Notes to be tradeable on any other
market developed for trading of securities pursuant to Rule 144A or Regulation S 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.

     (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, all 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.

     Initial Notes offered and sold in reliance on Rule 144A shall be issued initially in the form
of one or more permanent Global Securities in registered form, substantially in the form set forth
in Exhibit A (the “U.S. Global Notes”), 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 U.S. 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.

     Initial Notes offered and sold in offshore transactions in reliance on Regulation S shall be
issued initially in the form of one or more permanent Global Securities in registered form
substantially in the form set forth in Exhibit A (the “Offshore Global Notes”),
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

5

 

provided. The aggregate principal amount of the Offshore 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, as hereinafter provided.

     The U.S. Global Notes and the Offshore Global Notes are collectively referred to herein as the
“Global Notes.” The transfer and exchange of beneficial interests in any such Global Notes
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.

     (c) Each Note, including any Global Note, shall have a Parent Guarantee in the form of
Exhibit D endorsed thereon.

     Section 2.06. Restrictive Legends. (a) Except as otherwise provided in paragraph (b)
below, each U.S. Global Note and each Offshore Global Note shall bear the restricted legends (the
“Restricted Legends”) as set forth in the form of Exhibit A hereto on the face
thereof.

     (b) In the case that (i) the Company determines (upon the advice of counsel and such other
certifications and evidence as the Company may reasonably require) that any Note is eligible for
resale pursuant to Rule 144(k) under the Securities Act (or a successor provision) and that the
Restricted Legend is no longer necessary or appropriate in order to ensure that subsequent
transfers of such Note (or a beneficial interest therein) are effected in compliance with the
Securities Act, or (ii) an Initial Note is (x) sold pursuant to an effective registration statement
under the Securities Act, pursuant to the Registration Rights Agreement or otherwise, or (y)
exchanged for an Exchange Note, the Company may instruct the Trustee to cancel such Note and issue
to the Holder thereof (or to its transferee) a new Note of like tenor and amount, registered in the
name of the Holder thereof (or its transferee), that does not bear the Restricted Legend, and the
Trustee will comply with such instruction. If a Note to be reissued under this Section
2.06(b) without a Restricted Legend is represented by a Global Note bearing the Restricted
Legend, the principal amount of the legended Global Note shall be reduced by the principal amount
of the Note to be reissued without the Restricted Legend and the principal amount of a Global Note
without the Restricted Legend of the appropriate series of Securities shall be increased by an
equal principal amount. If a Global Note without the Restricted Legend of the appropriate series
of Securities is not then outstanding, the Company shall execute and the

6

 

Trustee shall authenticate and deliver a Global Note of the appropriate series of Securities
without the Restricted Legend to the Depositary.

     Section 2.07. Transfer Restrictions. (a) By its acceptance of any Note bearing the
Restricted Legend, each Holder of such a Note acknowledges the restrictions on transfer of such
Note set forth in this Supplemental Indenture and in the Restricted Legend and agrees that it will
transfer such Note only as provided in this Supplemental Indenture and the Restricted Legend. The
Company and the Trustee as Security Registrar for the Notes shall not register a transfer of any
Note unless such transfer complies with the restrictions on transfer of such Note set forth in this
Supplemental Indenture and the Restricted Legend. In connection with any transfer of Notes, each
Holder agrees by its acceptance of the Notes to furnish the Trustee as Security Registrar for the
Notes or the Company such certifications, legal opinions or other information as either of them may
reasonably require to confirm that such transfer is being made pursuant to an exemption from, or a
transaction not subject to, the registration requirements of the Securities Act; provided that the
Trustee shall not be required to determine (but may rely on a determination made by the Company
with respect to) the sufficiency of any such certifications, legal opinions or other information.

     The transfer or exchange of a beneficial interest in an Offshore Global Note for a beneficial
interest in a U.S. Global Note may only be made upon receipt by the Trustee of a duly completed
Rule 144A Certificate.

     The transfer or exchange of a beneficial interest in a U.S. Global Note for a beneficial
interest in an Offshore Global Note may only be made upon receipt by the Trustee of a duly
completed Registration S Certificate.

     During the 40–day “distribution compliance period” within the meaning of Regulation S,
beneficial interests in an Offshore Global Note shall be held through the Depositary only through
Euroclear and Clearstream, and their respective direct and indirect participants.

     The Trustee shall retain copies of all letters, notices and other written communications
received pursuant to the Indenture or this Section 2.07(a). The Company shall have the
right to inspect and make copies of all such letters, notices or other written communications at
any reasonable time upon the giving of reasonable written notice to the Trustee.

     The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance
with any restrictions on transfer imposed under the Indenture, this Supplemental Indenture or under
applicable law with respect to any transfer of any interest in any Note (including any transfers
between or among members of, or participants in, the Depositary or beneficial owners of interests
in any Global Note) other than to require delivery of such certificates and other documentation or
evidence as are expressly required by, and to do so if and when expressly required by the terms of,
the Indenture, as supplemented by this Supplemental Indenture, and to examine the same to determine
substantial compliance as to form with the express requirements hereof.

     (b) The following provisions shall apply only to Global Notes:

7

 

     (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 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 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 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 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, at the direction of the Trustee, to reflect such reduction.

     Section 2.08. Transfers and Exchanges. 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 the Indenture.

     Section 2.09. Additional Interest.

     If a Registration Default (as defined in the Registration Rights Agreement) occurs with
respect to a series of Notes, the interest rate borne by the Notes of such series shall be
increased as provided in the Registration Rights Agreement.

ARTICLE 3

Redemption Of The Notes

     Section 3.01. Optional Redemption by Company. The Notes may be redeemed at the option
of the Company on the terms and conditions set forth in the form of Note set forth as Exhibit
A.

ARTICLE 4

Execution Of The Notes

8

 

     Section 4.01. 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.

ARTICLE 5

Miscellaneous

     Section 5.01. No Resales by Affiliates. Any Initial Note that, prior to the
expiration of the holding period applicable to sales thereof under Rule 144(k) under the Securities
Act (or any successor provision), is purchased or owned by the Company, the Guarantor or any
affiliate thereof (within the meaning of Rule 144) may not be resold by the Company, the Guarantor
or such affiliate unless registered under the Securities Act or resold pursuant to an exemption
from the registration requirements of the Securities Act in a transaction which results in such
Initial Note no longer being “restricted securities” (as defined under Rule 144).

     Section 5.02. 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 5.03. Trustee Not Responsible for Recitals.

     The recitals herein contained are made by the Company and the Guarantor 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 5.04. Governing Law.

     This Supplemental Indenture, the Notes and any Parent Guarantee 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 regards to principles of conflicts of law.

     Section 5.05. 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 5.06. 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.

9

 

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

	 	 	 	 	 
	 	 	BAXTER FINCO B. V.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	   Name:
	 

	 	 	 	   Title:
	 
	 	 	 	 
	 	 	BAXTER INTERNATIONAL INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	   Name:
	 

	 	 	 	   Title:
	 
	 	 	 	 
	 	 	J. P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	   Name:
	 

	 	 	 	   Title:

 

 

EXHIBIT A

[FACE OF NOTE]

     [Unless and until a Security is exchanged for an Exchange Note or sold in connection with an
effective Registration Statement pursuant to the Registration Rights Agreement, the U.S. Global
Notes shall bear the restricted legend set forth below on the face thereof :]

[THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS
SECURITY, AGREES FOR THE BENEFIT OF BAXTER FINCO B.V. THAT (A) THIS SECURITY MAY NOT BE
OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED OTHER THAN (1) TO BAXTER FINCO B.V., (2)
IN A TRANSACTION ENTITLED TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE
SECURITIES ACT (IF AVAILABLE), (3) SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT
TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON WHOM THE SELLER REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A PURCHASING FOR
ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS
GIVEN THAT THE OFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE
l44A (AS INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON
THE REVERSE OF THIS SECURITY), (4) OUTSIDE THE UNITED STATES IN A TRANSACTION MEETING THE
REQUIREMENTS OF REGULATION S UNDER THE SECURITIES ACT, (5) PURSUANT TO ANOTHER AVAILABLE
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT, SUBJECT, IN THE CASE OF CLAUSES (2),
(4) OR (5), TO THE RECEIPT BY BAXTER FINCO B.V. OF AN OPINION OF COUNSEL OR SUCH OTHER
EVIDENCE ACCEPTABLE TO BAXTER FINCO B.V. THAT SUCH OFFER, RESALE, PLEDGE OR TRANSFER IS
EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OR (6) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT AND THAT (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS
REQUIRED TO, NOTIFY ANY PURCHASER OF THIS SECURITY OF THE RESALE RESTRICTIONS REFERRED TO
HEREIN AND DELIVER TO THE TRANSFEREE (OTHER THAN A QUALIFIED INSTITUTIONAL BUYER) PRIOR TO
THE SALE A COPY OF THE TRANSFER RESTRICTIONS APPLICABLE HERETO (COPIES OF WHICH MAY BE
OBTAINED FROM THE TRUSTEE).

THE HOLDER OF THIS SECURITY IS ENTITLED TO THE BENEFITS OF A REGISTRATION RIGHTS AGREEMENT
(AS SUCH TERM IS DEFINED IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF) AND, BY ITS
ACCEPTANCE HEREOF, AGREES TO BE BOUND BY AND TO COMPLY WITH THE PROVISIONS OF SUCH
REGISTRATION RIGHTS AGREEMENT.]

A-1

 

     [Unless and until a Security is exchanged for an Exchange Note or sold in connection with an
effective Registration Statement pursuant to the Registration Rights Agreement, the Offshore Global
Notes shall bear the following restricted legend on the face thereof until at least the 41st day
after the Closing Date:]

[THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. THE HOLDER HEREOF, BY ACQUIRING THIS
SECURITY, AGREES FOR BAXTER FINCO B.V. THAT NEITHER THIS SECURITY NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE OFFERED, RESOLD, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF EXCEPT IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS.

ANY OFFER, SALE, TRANSFER, PLEDGE, ENCUMBRANCE OR OTHER DISPOSITION OF THIS SECURITY OR ANY
INTEREST OR PARTICIPATION HEREIN WITHIN FORTY DAYS AFTER THE LATER OF THE COMMENCEMENT OF
THE OFFERING OF THIS SECURITY OR THE DATE OF CLOSING OF SUCH OFFERING MAY BE MADE ONLY IN
COMPLIANCE WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT OR PURSUANT TO
RULE 144A UNDER THE SECURITIES ACT.]

[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.]

A-2

 

CUSIP No.                     

ISIN                     

BAXTER FINCO B.V.

4.750% Note due 2010

Guaranteed by Baxter International Inc.

			
	 	 	 
	No. A-1
	 	$[                      ]

     Baxter Finco B.V., a private company with limited liability organized under the laws of The
Netherlands (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 [                      ] DOLLARS ($[                      ]) on October 15, 2010, 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 April 15 and October 15 of each year,
commencing on April 15, 2006, 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 April 15 or the
October 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 October 5,
2005 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 October or April, as
the case may be, and before the following April 15 or October 15, as the case may be, this Note
shall bear interest from such April 15 or October 15; provided, that if the Company shall default
in the payment of interest due on such April 15 or October 15, then this Note shall bear interest
from the next preceding April 15 or October 15, to which interest has been paid or, if no interest
has been paid on these Notes, from October 5, 2005. The interest so payable on any April 15 or
October 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 April 1 or October 1, as the case may be, preceding such April 15 or October 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.

A-3

 

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

Dated:

	 	 	 	 	 
	 	 	BAXTER FINCO B.V.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

A-4

 

(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.

J.P. MORGAN TRUST COMPANY,

NATIONAL ASSOCIATION

     as Trustee

By:                                                            

     Authorized Signatory

Dated:

A-5

 

REVERSE OF NOTE

BAXTER FINCO B.V.

4.750% Note due 2010

Guaranteed by Baxter International Inc.

     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
October 5, 2005, as supplemented by the First Supplemental Indenture, dated as of October 5, 2005
(both together herein called the “Indenture”), among the Company, Baxter International
Inc., a Delaware corporation and indirect parent company of the Company (the “Guarantor”),
and J.P. Morgan Trust Company, National Association, a national banking 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, the Guarantor and the Holders of the Securities. This Note is one of
a Guaranteed Series of Securities of the Company designated as the 4.750% Notes due 2010 (the
“Notes”), initially limited in aggregate principal amount of $500,000,000, 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 any day, other than a Saturday or Sunday, that is neither a
legal holiday nor a day on which commercial banks are authorized or required by law, regulation or
executive order to close in the City of New York.

     To secure the due and punctual payment of principal, premium, if any, and interest on, if any,
and any Additional Amounts payable with respect to, this Note by the Company under the Indenture,
when and as the same shall become due and payable, whether at maturity, upon acceleration, by call
for redemption or otherwise in accordance with the terms of the Indenture, the Guarantor has
unconditionally and irrevocably guaranteed this Note pursuant to the terms of the Parent Guarantee
endorsed hereon (the “Parent Guarantee”) and pursuant to the terms set forth in the
Indenture.

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

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

A-6

 

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

     (ii) the sum of the present values of the remaining scheduled payments of principal and
interest thereon 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 interest thereon to the date of redemption.

     “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 a 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) Deutsche Bank Securities Inc. and its
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
time on the third Business Day preceding such redemption date.

     Any redemption pursuant to the preceding paragraph will be made upon not less than 30 nor more
than 60 days prior notice before the redemption date to the Holders, at the Optional Redemption
Price. 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.

A-7

 

     This Note is redeemable in whole, but not in part, at the option of the Company, at any time
(an “Optional Tax Redemption”), if

     (i) the Company would be required to pay Additional Amounts as a result of any change
in the tax laws of The Netherlands that becomes effective on or after the date of issuance
of this Note, or

     (ii) as a result of any change in any treaty affecting taxation to which The
Netherlands, or a jurisdiction in which a successor to the Company is organized, is a party
that becomes effective on or after the date of issuance of the Notes, the Guarantor would be
required to deduct or withhold tax on any payment to the Company to enable it to make any
payment of principal or interest,

     at a redemption price equal to 100% of the principal amount of the Notes to be redeemed plus
accrued and unpaid interest thereon to the redemption date. Any Optional Tax Redemption pursuant
to the preceding paragraph will be made upon not less than 30 nor more than 60 days prior notice
before the redemption date to the Holders. With respect to clauses (i) and (ii) above, however,
the Company will not be permitted to redeem the Notes if it can avoid either the payment of
Additional Amounts, or deductions or withholding, as the case may be, by using reasonable means
available to it.

     [TO BE INCLUDED IN INITIAL NOTES, NOT EXCHANGE NOTES: In the event that a Registration Default
(as defined in the Registration Rights Agreement) occurs, then the Company shall pay Additional
Interest (as defined in the Registration Rights Agreement), in addition to the interest otherwise
due hereon, to the Holder as provided in the Registration Rights Agreement.]

     [TO BE INCLUDED IN EXCHANGE NOTES: There shall also be payable in respect of this Note all
Additional Interest (as defined in the Registration Rights Agreement) that may have accrued on the
Note for which this Note was exchanged pursuant to the Exchange Offer, such Additional Interest to
be calculated in accordance with the terms of such Note and payable at the same time and in the
same manner as periodic interest on this Note.]

     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, the Guarantor 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

A-8

 

sentence shall not, however, apply to a default in the payment of the principal of or premium,
if any, or interest on, or Additional Amounts with respect to, 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 and the Guarantor, which are absolute and
unconditional, to pay the principal of and any premium and interest on, and any Additional Amounts
with respect to, this Note in the manner and at the respective times herein provided.

     The Notes are issuable in registered form without coupons in denominations of $100,000 and any
multiple of $1,000 at the office or agency of the Trustee in the City of New York, and 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.

     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 or transfer, the Company, the Guarantor, the Trustee
and any agent of the Company, the Guarantor 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, any Additional Amounts with respect to, the Notes and for all other
purposes, and neither the Company, the Guarantor nor the Trustee nor any agent of the Company, the
Guarantor 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, the Guarantor, or of any predecessor or successor, either
directly or through the Company, the Guarantor, 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 obligation of the Company and will rank on a parity with all
other senior unsecured unsubordinated indebtedness of the Company, including any other Securities
issued under the Indenture. The Parent Guarantee is the senior unsecured

A-9

 

obligation of the Guarantor and will rank equally with all other senior unsecured indebtedness
of the Guarantor.

     This Security is a Global Security within the meaning of the Indenture and is registered in
the name of the Depositary or a nominee of the Depositary. 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 as permitted by the Indenture and may not be transferred except as a whole by
the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary
or another nominee of the Depositary.

A-10

 

[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:                                                            

A-11

 

[THE FOLLOWING PROVISION TO BE INCLUDED

ON ALL NOTES OTHER THAN EXCHANGE NOTES]

     In connection with any transfer of this Note occurring prior to the date which is the earlier
of (i) the date of a registered exchange offer for the Notes or other registration of the Notes
under the Securities Act or (ii) two years (or such lesser period as may be provided in any
amendment to Rule 144(k) under the Securities Act) after the later of the original issuance of this
Note or the last date on which this Note was held by the Company or an affiliate of the Company,
the undersigned confirms that without utilizing any general solicitation or general advertising
that this Note is being transferred in accordance with its terms:

[Check One]

	 	 	 	 	 
	 

	 	(1) [ ]
	 	to the Company; or
	 
	 	 	 	 
	 

	 	(2) [ ]
	 	pursuant to an effective registration statement under the Securities Act
of 1933; or
	 
	 	 	 	 
	 

	 	(3) [ ]
	 	to a “qualified institutional buyer” (as defined in Rule 144A under the
Securities Act of 1933) that purchases for its own account or for the account of a
qualified institutional buyer to whom notice is given that such transfer is being made
in reliance on Rule 144A, in each case pursuant to and in compliance with Rule 144A
under the Securities Act of 1933; or
	 
	 	 	 	 
	 

	 	(4) [ ]
	 	outside the United States in a transaction meeting the requirements of
Regulation S under the Securities Act.
	 
	 	 	 	 
	 

	 	(5) [ ]
	 	pursuant to the exemption from registration provided by Rule 144 under the
Securities Act of 1933.

Unless one of the boxes is checked, the Trustee will refuse to register any of the Notes evidenced
by this certificate in the name of any Person other than the registered holder thereof, provided,
however, that if box (5) is checked, the Trustee may require, prior to registering any such
transfer of the Notes, such legal opinions, certifications and other information as the Company has
reasonably requested to confirm that such transfer is being made pursuant to an exemption from, or
in a transaction not subject to, the registration requirements of the Securities Act of 1933.

	 	 	 
	 

	 	Signature
	 
	 	 
	Signature Guarantee:
	 	 
	 
	 	 
	Signature must be guaranteed

	 	Signature

     Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements
of the Registrar, which requirements include membership or participation in the Security Transfer
Agent Medallion Program (“STAMP”) or such other “signature guarantee

A-12

 

program” as may be determined by the Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Securities and Exchange Act of 1934, as amended.

A-13

 

TO BE COMPLETED BY PURCHASER IF (3) ABOVE IS CHECKED.

     The undersigned represents and warrants that it is purchasing this Note for its own account or
an account with respect to which it exercises sole investment discretion and that it and any such
account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities
Act of 1933, and is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Company as the undersigned has
requested pursuant to Rule 144A or has determined not to request such information and that it is
aware that the transferor is relying upon the undersigned’s foregoing representations in order to
claim the exemption from registration provided by Rule 144A.

	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	NOTICE: To be executed by an
	 

	 	 	 	 	 	executive officer

A-14

 

Schedule I

[Include as Schedule I only for a Global Note]

BAXTER FINCO B.V.

4.750% Notes due 2010

Guaranteed by Baxter International Inc.

No.                    

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

A-15

 

EXHIBIT B

Form of Certificate to Be Delivered in

Connection with Transfers Pursuant to Rule 144A

                    , 200_

J.P. Morgan Trust Company, National Association

227 W. Monroe Street

Suite 2600

Chicago, Illinois 60606

Attention: Institutional Trust Services

	 	 	 	 	 
	 

	 	Re:
	 	Baxter Finco B.V. (the “Company”) 4.750% Notes due 2010
	 

	 	 	 	(the “Notes”)

Dear Sirs:

     This Certificate relates to:

     [CHECK A OR B AS APPLICABLE.]

	 	 	 	 	 
	 

	 	[ ]
	 	A. Our proposed purchase of $___principal amount of Notes issued under the
Indenture.
	 
	 	 	 	 
	 

	 	[ ]
	 	B. Our proposed exchange of $___principal amount of Notes issued under the
Indenture for an equal principal amount of Notes to be held by us.

     We and, if applicable, each account for which we are acting in the aggregate owned and
invested more than $100,000,000 in securities of issuers that are not affiliated with us (or such
accounts, if applicable), as of                     ,200_, which is a date on or since close of our most
recent fiscal year. We and, if applicable, each account for which we are acting, are a qualified
institutional buyer within the meaning of Rule 144A (“Rule 144A”) under the Securities Act of 1933,
as amended (the “Securities Act”). If we are acting on behalf of an account, we exercise sole
investment discretion with respect to such account. We are aware that the transfer of Notes to us,
or such exchange, as applicable, is being made in reliance upon the exemption from the provisions
of Section 5 of the Securities Act provided by Rule 144A. Prior to the date of this Certificate we
have received such information regarding the Company as we have requested pursuant to Rule
144A(d)(4) or have determined not to request such information.

     You and the Company are entitled to rely upon this Certificate and are irrevocably authorized
to produce this Certificate or a copy hereof to any interested party in any administrative or legal
proceeding or official inquiry with respect to the matters covered hereby.

Very truly yours,

[Name of Holder]

By:                                                            

     Authorized Signature

B-1

 

EXHIBIT C

Form of Certificate to Be Delivered in

Connection with Transfers Pursuant to Regulation S

                    , 200_

J.P. Morgan Trust Company, National Association

J.P. Morgan Trust Company, National Association

227 W. Monroe Street

Suite 2600

Chicago, Illinois 60606

Attention: Institutional Trust Services

Attention:

	 	 	 	 	 
	 

	 	Re:
	 	Baxter Finco B.V. (the “Company”) 4.750% Notes due 2010
	 

	 	 	 	(the “Notes”)

Dear Sirs:

     Terms are used in this Certificate as used in Regulation S (“Regulation S”) under the
Securities Act of 1933, as amended (the “Securities Act”), except as otherwise stated herein.

     [CHECK A OR B AS APPLICABLE.]

     [ ] A. This Certificate relates to our proposed transfer of $___principal amount of Notes
issued under the Indenture. We hereby certify as follows:

	 	1.	 	The offer and sale of the Notes was not and will not be made to a person in the
United States (unless such person is excluded from the definition of “U.S. person”
pursuant to Rule 902(k)(2)(vi) or the account held by it for which it is acting is
excluded from the definition of “U.S. person” pursuant to Rule 902(k)(2)(i) under the
circumstances described in Rule 902(h)(3)) and such offer and sale was not and will not
be specifically targeted at an identifiable group of U.S. citizens abroad.

	 	2.	 	Unless the circumstances described in the parenthetical in paragraph 1 above
are applicable, either (a) at the time the buy order was originated, the buyer was
outside the United States or we and any person acting on our behalf reasonably believed
that the buyer was outside the United States or (b) the transaction was executed in, on
or through the facilities of a designated offshore securities market, and neither we
nor any person acting on our behalf knows that the transaction was pre-arranged with a
buyer in the United States.

	 	3.	 	Neither we, any of our affiliates, nor any person acting on our or their behalf
has made any directed selling efforts in the United States with respect to the Notes.

C-1

 

	 	4.	 	The proposed transfer of Notes is not part of a plan or scheme to evade the
registration requirements of the Securities Act.

	 	5.	 	If we are a dealer or a person receiving a selling concession, fee or other
remuneration in respect of the Notes, and the proposed transfer takes place during the
40–day “distribution compliance period” within the meaning of Regulation S), or we are
an officer or director of the Company or a Purchaser (as defined in the Indenture), we
certify that the proposed transfer is being made in accordance with the provisions of
Rule 904(b) of Regulation S.

     [ ] B. This Certificate relates to our proposed exchange of $___principal amount of Notes
issued under the Indenture for an equal principal amount of Notes to be held by us. We hereby
certify as follows:

	 	1.	 	At the time the offer and sale of the Notes was made to us, either (i) we were
not in the United States or (ii) we were excluded from the definition of “U.S. person”
pursuant to Rule 902(k)(2)(vi) or the account held by us for which we were acting was
excluded from the definition of “U.S. person” pursuant to Rule 902(k)(2)(i) under the
circumstances described in Rule 902(h)(3); and we were not a member of an identifiable
group of U.S. citizens abroad.
	 
	 	2.	 	Unless the circumstances described in paragraph 1(ii) above are applicable,
either (a) at the time our buy order was originated, we were outside the United States
or (b) the transaction was executed in, on or through the facilities of a designated
offshore securities market and we did not pre-arrange the transaction in the United
States.
	 
	 	3.	 	The proposed exchange of Notes is not part of a plan or scheme to evade the
registration requirements of the Securities Act. You and the Company are entitled to
rely upon this Certificate and are irrevocably authorized to produce this Certificate
or a copy hereof to any interested party in any administrative or legal proceeding or
official inquiry with respect to the matters covered hereby.

Very truly yours,

[Name of Transferee]

By:                                                            

     Authorized Signature

C-2

 

EXHIBIT D

GUARANTEE

     GUARANTEE, dated as of October 5, 2005 of BAXTER INTERNATIONAL INC., a corporation organized
under the laws of Delaware (the “Guarantor”).

     The Guarantor, for value received, hereby agrees as follows for the benefit of the holders of
record (the “Holders”) from time to time of the Securities hereinafter described:

     1. The Guarantor irrevocably guarantees payment in full, as and when the same becomes due and
payable (whether at maturity, by declaration of acceleration, call for redemption, or otherwise),
of the principal of, premium, if any, and interest, if any, on, and any Additional Amounts with
respect to, the 4.750% Notes due 2010 (the “Securities”) issued by Baxter Finco B.V., a
private company with limited liability organized under the laws of The Netherlands and an indirect
wholly–owned subsidiary of the Guarantor (the “Issuer”), from time to time pursuant to the
Indenture, dated as of October 5, 2005, as supplemented by the First Supplemental Indenture, dated
as of October 5, 2005, as the same may be amended, supplemented or modified from time to time,
among the Issuer, the Guarantor and J.P. Morgan Trust Company, National Association (collectively,
the “Indenture”).

     2. The Guarantor’s obligations under this Guarantee shall be unconditional, irrespective of
the validity or enforceability of any provision of the Indenture or the Securities.

     3. This Guarantee is a guaranty of the due and punctual payment (and not merely of collection)
of the principal of, premium, if any, and interest, if any, on, and any Additional Amounts with
respect to, the Securities by the Issuer and shall remain in full force and effect until all
amounts have been validly, finally and irrevocably paid in full, and shall not be affected in any
way by any circumstance or condition whatsoever, including without limitation (i) the absence of
any action to obtain such amounts from the Issuer, (ii) any variation, extension, waiver,
compromise or release of any or all of the obligations of the Issuer under the Indenture or the
Securities or of any collateral security therefor (provided, however, that no such variation,
extension, waiver, compromise or release shall, without the consent of the Guarantor, increase the
principal amount of such Securities, or increase the interest rate thereon, or change any
redemption provisions thereof (including any change to increase any premium payable upon redemption
thereof), or change the stated maturity thereof) or (iii) any change in the existence or structure
of, or the bankruptcy or insolvency of, the Issuer or by any other circumstance (other than by
complete, irrevocable payment) that might otherwise constitute a legal or equitable discharge or
defense of a guarantor or surety. The Guarantor waives all requirements as to diligence,
presentment, demand for payment, protest and notice of any kind with respect to the Indenture and
the Securities.

     4. In the event of a default in payment of principal of, or premium, if any, or interest, if
any, on, and any Additional Amounts with respect to, any Securities, the Holders of such Securities
may institute legal proceedings directly against the Guarantor to enforce this Guarantee without
first proceeding against the Issuer.

D-1

 

     5. This Guarantee shall remain in full force and effect until the date upon which the entire
principal of, premium, if any, and interest, if any, on, and any Additional Amounts with respect
to, the Securities have been, or have been deemed pursuant to the provisions of Article XIII of the
Indenture to have been, paid in full or otherwise discharged; provided, however, that this
Guarantee shall be reinstated if at any time any payment by the Issuer of the principal of, or
premium, if any, or interest, if any, on, or any Additional Amounts with respect to, the
Securities, in whole or in part, is rescinded or must otherwise be returned by the Holder upon the
insolvency, bankruptcy or reorganization of the Issuer or otherwise, all as though such payment had
not been made.

     6. This Guarantee 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 laws.

     7. (a) The Guarantor hereby irrevocably accepts and submits to the non-exclusive jurisdiction
of the United States federal courts located in the Borough of Manhattan.

          (b) The Guarantor hereby irrevocably designates, appoints and empowers CT Corporation System,
111 Eighth Avenue, New York, New York 10011, as its designee, appointee and agent to receive,
accept and acknowledge for and on its behalf, and its properties, service for any and all legal
process, summons, notices and documents which may be served in any such action, suit or proceeding
brought in the courts listed in Section 7(a) hereof which may be made on such designee,
appointee and agent in accordance with legal procedures prescribed for such courts, with respect to
any action, suit or proceeding in connection with or arising out of this Guarantee. If for any
reason such designee, appointee and agent hereunder shall cease to be available to act as such, the
Guarantor agrees to designate a new designee, appointee and agent in the City of New York on the
terms and for the purposes of this Section 7. The Guarantor further hereby irrevocably
consents and agrees to the service of any and all legal process, summons, notices and documents out
of any of the aforesaid courts in any such action, suit or proceeding by serving a copy thereof
upon the agent for service of process referred to in this Section 7 (whether or not the
appointment of such agent shall for any reason prove to be ineffective or such agent shall accept
or acknowledge such service) or by mailing copies thereof by registered or certified airmail,
postage prepaid, to it at its address specified in or designated pursuant to this Guarantee. The
Guarantor agrees that the failure of any such designee, appointee and agent to give any notice of
such service to the Guarantor shall not impair or affect in any way the validity of such service or
any judgment rendered in any action or proceeding based thereon. Nothing herein shall in any way
be deemed to limit the ability of the Holders of any Securities to serve any such legal process,
summons, notices and documents in any other manner permitted by applicable law or to obtain
jurisdiction over the undersigned or bring actions, suits or proceedings against the undersigned in
such other jurisdictions, and in such other manner, as may be permitted by applicable law. The
Guarantor hereby irrevocably and unconditionally waives any objection which it may now or hereafter
have to the laying of venue of any of the aforesaid actions, suits or proceedings arising out of or
in connection with this Guarantee brought in the courts listed in Section 7(a) and hereby
further irrevocably and unconditionally waives and agrees not to plead or claim in any such court
that any such action, suit or proceeding brought in any such court has been brought in an
inconvenient forum.

D-2

 

     8. The Guarantor shall be subrogated to all rights of the Holders of the Securities against
the Issuer in respect of any amounts paid by the Guarantor on account of such Securities pursuant
to the provisions of this Guarantee or the Indenture; provided, however, that the Guarantor shall
not be entitled to enforce or to receive any payments arising out of, or based upon, such right of
subrogation until the principal of, and premium, if any, and interest, if any, on such Securities
shall have been paid in full.

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

Dated:

BAXTER INTERNATIONAL INC.

By:                                                            

Name:

Title:

D-3exv4w3

 

Exhibit 4.3

REGISTRATION RIGHTS AGREEMENT

Dated October 5, 2005

among

Baxter Finco B.V.,

as Issuer

Baxter International Inc.,

as Guarantor

and

the Purchasers set forth on Schedule A

$500,000,000

4.750% Notes Due 2010

 

 

REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT (the “Agreement”) is made and entered into as of
October 5, 2005, among Baxter Finco B.V., a private company with limited liability organized under
the laws of The Netherlands (the “Issuer”), Baxter International Inc., the Issuer’s
indirect parent company and a Delaware corporation (the “Guarantor”), and the parties
referred to in Schedule A hereto (the “Purchasers”).

     This Agreement is made pursuant to the Purchase Agreement, dated September 28, 2005, by and
among the Issuer, the Guarantor and the Purchasers (the “Purchase Agreement”), which
provides for the sale by the Issuer, to the Purchasers of $500,000,000 aggregate principal amount
of the Issuer’s 4.750% Notes due 2010 (the “Securities”). The Issuer’s obligations under
the Securities will be unconditionally and irrevocably guaranteed (the “Guarantee”) by the
Guarantor as set forth in the Indenture (as defined below). In order to induce the Purchasers to
enter into the Purchase Agreement, the Issuer and the Guarantor have agreed to provide to the
Purchasers and their direct and indirect transferees the registration rights set forth in this
Agreement. The execution of this Agreement is a condition to the closing under the Purchase
Agreement.

     In consideration of the foregoing, the parties hereto agree as follows:

     1. Definitions.

     As used in this Agreement, the following capitalized defined terms shall have the following
meanings:

     “1933 Act” shall mean the Securities Act of 1933, as amended from time to time.

     “1934 Act” shall mean the Securities Exchange Act of 1934, as amended from time to
time.

     “Business Day” shall have the meaning set forth in the Indenture.

     “Closing Date” shall mean the Closing Date as defined in the Purchase Agreement.

     “Exchange Guarantee” shall mean the guarantee by the Guarantor of the Issuer’s
obligations under the Exchange Securities containing terms identical in all material respects to
the Guarantee.

     “Exchange Offer” shall mean the exchange offer by the Issuer and the Guarantor of
Exchange Securities and the Exchange Guarantee for Registrable Securities and the Registrable
Guarantee.

     “Exchange Offer Registration” shall mean a registration under the 1933 Act effected
pursuant to Section 2(a) hereof.

 

 

     “Exchange Offer Registration Statement” shall mean an exchange offer registration
statement on Form S-4 (or, if applicable, on another appropriate form) and all amendments and
supplements to such registration statement, in each case including the Prospectus contained
therein, all exhibits thereto and all material incorporated by reference therein.

     “Exchange Securities” shall mean securities issued by the Issuer under the Indenture
containing terms identical to the Securities (except that (i) interest thereon shall accrue from
the last date on which interest was paid on the Securities or, if no such interest has been paid,
from October 5, 2005, and (ii) the Exchange Securities will not contain restrictions on transfer)
and to be offered to Holders of Securities in exchange for Securities pursuant to the Exchange
Offer.

     “Guarantee” shall have the meaning set forth in the preamble to this Agreement.

     “Guarantor” shall have the meaning set forth in the preamble to this Agreement.

     “Holder” shall mean each of the Purchasers, for so long as it owns any Registrable
Securities, and each of their successors, assigns and direct and indirect transferees who become
registered owners of Registrable Securities under the Indenture; provided that for purposes of
Sections 4 and 5 of this Agreement, the term “Holder” shall include Participating Broker-Dealers
(as defined in Section 4(a)).

     “Indenture” shall mean the Indenture relating to the Securities dated as October 5,
2005 by and among the Issuer, the Guarantor and J.P. Morgan Trust Company, National Association, as
Trustee, as amended and supplemented by the First Supplemental Indenture, dated as of October 5,
2005, among the Issuer, the Guarantor and the Trustee.

     “Issuer” shall have the meaning set forth in the preamble to this Agreement and shall
also include the Issuer’s successors.

     “Majority Holders” shall mean the Holders of a majority of the aggregate principal
amount of outstanding Registrable Securities; provided that whenever the consent or approval of
Holders of a specified percentage of Registrable Securities is required hereunder, Registrable
Securities held by the Issuer or the Guarantor or any of their affiliates (as such term is defined
in Rule 405 under the 1933 Act) (other than the Purchasers or subsequent Holders of Registrable
Securities if such subsequent holders are deemed to be such affiliates solely by reason of their
holding of such Registrable Securities) shall not be counted in determining whether such consent or
approval was given by the Holders of such required percentage or amount.

     “Person” shall mean an individual, partnership (general or limited), limited liability
company, corporation, trust or unincorporated organization, or a government or agency or political
subdivision thereof.

     “Prospectus” shall mean the prospectus included in a Registration Statement, including
any preliminary prospectus, and any such prospectus as amended or supplemented by any prospectus
supplement, including a prospectus supplement with respect to the terms of the offering of any
portion of the Registrable Securities and the Registrable Guarantee covered by a Shelf Registration
Statement, and by all other amendments and supplements to such prospectus, and in each case
including all material incorporated by reference therein.

2

 

     “Purchase Agreement” shall have the meaning set forth in the preamble to this
Agreement.

     “Purchasers” shall have the meaning set forth in the preamble to this Agreement.

     “Registrable Guarantee” shall mean the Guarantee in respect of the Registrable
Securities.

     “Registrable Securities” shall mean the Securities; provided, however, that the
Securities shall cease to be Registrable Securities (i) when a Registration Statement with respect
to such Securities shall have been declared effective under the 1933 Act and such Securities shall
have been disposed of pursuant to such Registration Statement, (ii) when such Securities have been
sold to the public pursuant to Rule 144(k) (or any similar provision then in force, but not Rule
144A) under the 1933 Act or (iii) when such Securities shall have ceased to be outstanding.

     “Registration Expenses” shall mean any and all expenses incident to performance of or
compliance by the Issuer and the Guarantor with this Agreement, including without limitation: (i)
all SEC, stock exchange or National Association of Securities Dealers, Inc. registration and filing
fees, (ii) all fees and expenses incurred in connection with compliance with state securities or
blue sky laws (including reasonable fees and disbursements of counsel for any underwriters or
Holders in connection with blue sky qualification of any of the Exchange Securities or Registrable
Securities), (iii) all expenses of any Persons in preparing or assisting in preparing, word
processing, printing and distributing any Registration Statement, any Prospectus, any amendments or
supplements thereto, any underwriting agreements, securities sales agreements and other documents
relating to the performance of and compliance with this Agreement, (iv) all rating agency fees, (v)
all fees and disbursements relating to the qualification of the Indenture under applicable
securities laws, (vi) the fees and disbursements of the Trustee and its counsel, (vii) the
reasonable fees and disbursements of counsel for the Issuer and the Guarantor and, in the case of a
Shelf Registration Statement, the fees and disbursements of one counsel for the Holders (which
counsel shall be selected by the Majority Holders and which counsel may also be counsel for the
Purchasers) and (viii) the fees and disbursements of the independent public accountants of the
Issuer and the Guarantor, including the expenses of any special audits or “cold comfort” letters
required by or incident to such performance and compliance, but excluding fees and expenses of
counsel to the underwriters (other than fees and expenses set forth in clause (ii) above) or the
Holders and underwriting discounts and commissions and transfer taxes, if any, relating to the sale
or disposition of Registrable Securities by a Holder.

     “Registration Statement” shall mean any registration statement of the Issuer and the
Guarantor that covers any of the Exchange Securities and the Exchange Guarantee or any Registrable
Securities and the Registrable Guarantee pursuant to the provisions of this Agreement and all
amendments and supplements to any such Registration Statement, including post-effective amendments,
in each case including the Prospectus contained therein, all exhibits thereto and all material
incorporated by reference therein.

     “SEC” shall mean the Securities and Exchange Commission or any successor agency or
governmental body.

3

 

     “Securities” shall have the meaning set forth in the preamble to this Agreement.

     “Shelf Registration” shall mean a registration effected pursuant to Section
2(b) hereof.

     “Shelf Registration Statement” shall mean a “shelf” registration statement of the
Issuer and Guarantor pursuant to the provisions of Section 2(b) of this Agreement which
covers all of the Registrable Securities and the Registrable Guarantee (but no other securities
unless approved by the Holders whose Registrable Securities are covered by such Shelf Registration
Statement) on an appropriate form under Rule 415 under the 1933 Act, or any similar rule that may
be adopted by the SEC, and all amendments and supplements to such registration statement, including
post-effective amendments, in each case including the Prospectus contained therein, all exhibits
thereto and all material incorporated by reference therein.

     “Trustee” shall mean J.P. Morgan Trust Company, National Association or any successor
trustee with respect to the Securities under the Indenture.

     “Underwriter” shall have the meaning set forth in Section 3 hereof.

     “Underwritten Registration” or “Underwritten Offering” shall mean a
registration in which Registrable Securities are sold to an Underwriter for reoffering to the
public.

     2. Registration Under the 1933 Act.

     (a) To the extent not prohibited by any applicable law or applicable interpretation of
the Staff of the SEC, the Issuer and the Guarantor shall use their reasonable best efforts
to cause to be filed an Exchange Offer Registration Statement covering the offer by the
Issuer and the Guarantor to the Holders to exchange all of the Registrable Securities
together with the Registrable Guarantee for Exchange Securities together with the Exchange
Guarantee, to have such Registration Statement declared effective by the SEC within 240 days
after the Closing Date, and to have such Registration Statement remain effective until six
months following the closing of the Exchange Offer. The Issuer and the Guarantor shall
commence the Exchange Offer promptly after the Exchange Offer Registration Statement has
been declared effective by the SEC and shall use their reasonable best efforts to have the
Exchange Offer consummated within 270 days after the Closing Date. The Issuer and the
Guarantor shall commence the Exchange Offer by mailing the related exchange offer Prospectus
and accompanying documents to each Holder stating, in addition to such other disclosures as
are required by applicable law:

     (i) that the Exchange Offer is being made pursuant to this Registration Rights
Agreement and that all Registrable Securities validly tendered will be accepted for
exchange;

     (ii) the dates of acceptance for exchange (which shall be a period of at least
20 Business Days, or longer if required by applicable law, after the effective date
of the Exchange Offer Registration Statement) (the “Exchange Dates”);

4

 

     (iii) that any Registrable Security not tendered will remain outstanding and
continue to accrue interest, but will not retain any rights under this Registration
Rights Agreement;

     (iv) that Holders electing to have a Registrable Security exchanged pursuant to
the Exchange Offer will be required to surrender such Registrable Security, together
with the enclosed letters of transmittal, to the institution and at the address
(located in the Borough of Manhattan, The City of New York) specified in the notice
prior to the close of business on the last Exchange Date; and

     (v) that Holders will be entitled to withdraw their election, not later than
the close of business on the last Exchange Date, by sending to the institution and
at the address (located in the Borough of Manhattan, The City of New York) specified
in the notice a telegram, telex, facsimile transmission or letter setting forth the
name of such Holder, the principal amount of Registrable Securities delivered for
exchange and a statement that such Holder is withdrawing his election to have such
Securities exchanged.

     As soon as practicable after the last Exchange Date, the Issuer and the Guarantor shall:

     (i) accept for exchange Registrable Securities or portions thereof tendered and
not validly withdrawn pursuant to the Exchange Offer;

     (ii) deliver, or cause to be delivered, to the Trustee for cancellation all
Registrable Securities or portions thereof so accepted for exchange by the Issuer or
the Guarantor and issue, and cause the Trustee to promptly authenticate and mail to
each Holder, an Exchange Security equal in principal amount to the principal amount
of the Registrable Securities surrendered by such Holder; and

     (iii) deliver, or cause to be delivered, to the Trustee the Exchange Guarantee
duly executed by the Guarantor.

     The Issuer and the Guarantor shall use their reasonable best efforts to complete the Exchange
Offer as provided above and shall comply with the applicable requirements of the 1933 Act, the 1934
Act and other applicable laws and regulations in connection with the Exchange Offer. The Exchange
Offer shall not be subject to any conditions, other than that the Exchange Offer does not violate
applicable law or any applicable interpretation of the Staff of the SEC. The Issuer and the
Guarantor shall inform the Purchasers of the names and addresses of the Holders to whom the
Exchange Offer is made, and the Purchasers shall have the right, subject to applicable law, to
contact such Holders and otherwise facilitate the tender of Registrable Securities in the Exchange
Offer. Each Holder participating in the Exchange Offer shall be required to represent to the
Issuer and the Guarantor that, at the time of the consummation of the Exchange Offer:

     (i) any Exchange Securities received by such Holder will be acquired in the
ordinary course of business;

5

 

     (ii) such Holder will have no arrangement or understanding with any Person to
participate in the distribution of the Securities or the Exchange Securities within
the meaning of the 1933 Act; and

     (iii) such Holder is not an affiliate (as defined in Rule 405 under the 1933
Act) of the Issuer or the Guarantor.

     (b) In the event that (i) the Issuer and the Guarantor reasonably determine that the
Exchange Offer Registration provided for in Section 2(a) above is not available or
may not be consummated as soon as practicable after the last Exchange Date because of any
change in law, SEC rules or regulations or the applicable interpretations of the Staff of
the SEC, (ii) the Exchange Offer is not for any other reason consummated within 270 days
following the Closing Date, (iii) any Purchaser requests registration with respect to
Registrable Securities that are not eligible to be exchanged in the Exchange Offer and that
are held by it following the Exchange Offer, (iv) any Holder of the Registrable Securities
(other than an Purchaser) is not eligible to participate in the Exchange Offer or (v) in the
case of any Purchaser that participates in the Exchange Offer or acquires Exchange
Securities, such Purchaser does not receive freely tradeable Exchange Securities in exchange
for Registrable Securities constituting any portion of an unsold allotment, then, in the
case of any of clauses (i) through (v) above, the Issuer and the Guarantor shall cause to be
filed as soon as practicable after required or requested, as the case may be, a Shelf
Registration Statement providing for the sale by the Holders of all of the Registrable
Securities together with the Registrable Guarantee (but in no event more than 90 days after
required or requested pursuant to any of the above circumstances) and to use their
reasonable best efforts to have such Shelf Registration Statement declared effective by the
SEC within 240 days after required or requested pursuant to any of the above circumstances.
In the event the Issuer and the Guarantor are required to file a Shelf Registration
Statement solely as a result of the matters referred to in clauses (iii) to (v) of the
preceding sentence, the Issuer and the Guarantor shall use their reasonable best efforts to
file and have declared effective by the SEC both an Exchange Offer Registration Statement
pursuant to Section 2(a) with respect to all Registrable Securities and a Shelf
Registration Statement (which may be a combined Registration Statement with the Exchange
Offer Registration Statement) with respect to offers and sales of Registrable Securities
held by the Purchasers after completion of the Exchange Offer. The Issuer and the Guarantor
agree to use their reasonable best efforts to keep the Shelf Registration Statement
continuously effective until the earlier of two years from the date the Shelf Registration
Statement is declared effective and such time as all of the Registrable Securities covered
by the Shelf Registration Statement have been sold under the Shelf Registration Statement.
The Issuer and the Guarantor further agree to supplement or amend the Shelf Registration
Statement if required by the rules, regulations or instructions applicable to the
registration form used by the Issuer and the Guarantor for such Shelf Registration Statement
or by the 1933 Act or by any other rules and regulations thereunder for shelf registration
or if reasonably requested by a Holder with respect to information relating to such Holder,
and to use their reasonable best efforts to cause any such amendment to become effective and
such Shelf Registration Statement to become usable as soon as thereafter practicable. The
Issuer and the

6

 

Guarantor agree to furnish to the Holders of Registrable Securities copies of any such
supplement or amendment promptly after its being used or filed with the SEC.

     (c) The Issuer and the Guarantor shall pay all Registration Expenses in connection with
the registration pursuant to Section 2(a) and Section 2(b). Each Holder
shall pay all underwriting discounts and commissions and transfer taxes, if any, relating to
the sale or disposition of such Holder’s Registrable Securities pursuant to the Shelf
Registration Statement.

     (d) An Exchange Offer Registration Statement pursuant to Section 2(a)
hereof or a Shelf Registration Statement pursuant to Section 2(b) hereof will not be
deemed to have become effective unless it is deemed automatically effective upon filing with
the SEC or it has been declared effective by the SEC; provided, however, that, if, after it
has been declared effective, the offering of Registrable Securities pursuant to a Shelf
Registration Statement is interfered with by any stop order, injunction or other order or
requirement of the SEC or any other governmental agency or court, such Registration
Statement will be deemed not to have become effective during the period of such interference
until the offering of Registrable Securities pursuant to such Registration Statement may
legally resume.

     (e) In the event that:

     (i) the Exchange Offer Registration Statement is not declared effective by the
SEC within 240 days after the Closing Date, or

     (ii) the Exchange Offer is not consummated within 270 days after the Closing
Date, or

     (iii) a Shelf Registration Statement is automatically effective or declared
effective by the SEC and at any time prior to the earlier of two years from the date
the Shelf Registration Statement is automatically effective or declared effective
and such time as all the Registrable Securities covered by the Shelf Registration
Statement have been disposed of under the Shelf Registration Statement, the Shelf
Registration Statement ceases to be effective, or fails to be usable for its
intended purpose without being succeeded within two Business Days by a
post-effective amendment which cures the failure and that is itself immediately
declared effective; (each of the events referred to in clauses (i) through (iii)
above being hereinafter called a “Registration Default”),

then additional interest (“Additional Interest”) will accrue on the Registrable
Securities in addition to the per annum interest rate borne by the Registrable Securities,
from and including the date on which any such Registration Default shall occur to, but
excluding, the date on which the registration default has been cured, at the rate of
one-quarter of one percent (0.25%) per annum, plus an additional one-quarter of one percent
(0.25%) per annum from and during any period in which the Registration Default has continued
for more than 90 days, up to a maximum rate of one-half of one percent (0.50%) per annum.

7

 

In no event will the Additional Interest on the Registrable Securities exceed one-half of
one percent (0.50%) per annum.

     (f) Without limiting the remedies available to the Purchasers and the Holders, the
Issuer and the Guarantor acknowledge that any failure by the Issuer or the Guarantor to
comply with their obligations under Section 2(a) and Section 2(b) hereof may
result in material irreparable injury to the Purchasers or the Holders for which there is no
adequate remedy at law, that it will not be possible to measure damages for such injuries
precisely and that, in the event of any such failure, the Purchasers or any Holder may
obtain such relief as may be required to specifically enforce the Issuer and the Guarantor’s
obligations under Section 2(a) and Section 2(b) hereof.

     3. Registration Procedures.

     In connection with the obligations of the Issuer and the Guarantor with respect to the
Registration Statements pursuant to Section 2(a) and Section 2(b) hereof, the
Issuer and the Guarantor shall as expeditiously as reasonably practicable:

     (a) prepare and file with the SEC a Registration Statement on the appropriate form
under the 1933 Act, which form (x) shall be selected by the Issuer and the Guarantor, (y)
shall, in the case of a Shelf Registration, be available for the sale of the Registrable
Securities by the selling Holders thereof and (z) shall comply as to form in all material
respects with the requirements of the applicable form and include all financial statements
required by the SEC to be filed therewith, and use their reasonable best efforts to cause
such Registration Statement to become effective and remain effective in accordance with
Section 2 hereof;

     (b) prepare and file with the SEC such amendments and post-effective amendments to each
Registration Statement as may be necessary to keep such Registration Statement effective for
the applicable period and cause each Prospectus to be supplemented by any required
prospectus supplement and, as so supplemented, to be filed pursuant to Rule 424 under the
1933 Act; to keep each Prospectus current during the period described under Section 4(3) and
Rule 174 under the 1933 Act that is applicable to transactions by brokers or dealers with
respect to the Registrable Securities or Exchange Securities;

     (c) in the case of a Shelf Registration, furnish to each Holder of Registrable
Securities, to counsel for the Purchasers, to counsel for the Holders and to each
Underwriter of an Underwritten Offering of Registrable Securities, if any, without charge,
as many copies of each Prospectus, including each preliminary Prospectus, and any amendment
or supplement thereto and such other documents as such Holder or Underwriter may reasonably
request, in order to facilitate the public sale or other disposition of the Registrable
Securities; and the Issuer and the Guarantor consent to the use of such Prospectus and any
amendment or supplement thereto in accordance with applicable law by each of the selling
Holders of Registrable Securities and any such Underwriters in connection with the offering
and sale of the Registrable Securities

8

 

covered by and in the manner described in such Prospectus or any amendment or
supplement thereto in accordance with applicable law;

     (d) use their reasonable best efforts to register or qualify the Registrable Securities
under all applicable state securities or “blue sky” laws of such jurisdictions as any Holder
of Registrable Securities covered by a Registration Statement shall reasonably request in
writing by the time the applicable Registration Statement is declared effective by the SEC,
to cooperate with such Holders in connection with any filings required to be made with the
National Association of Securities Dealers, Inc. and do any and all other acts and things
which may be reasonably necessary or advisable to enable such Holder to consummate the
disposition in each such jurisdiction of such Registrable Securities owned by such Holder;
provided, however, that the Issuer and the Guarantor shall not be required to (i) qualify as
a foreign corporation or as a dealer in securities in any jurisdiction where they would not
otherwise be required to qualify but for this Section 3(d), (ii) file any general
consent to service of process or (iii) subject themselves to taxation in any such
jurisdiction if they are not so subject;

     (e) in the case of a Shelf Registration, notify each Holder of Registrable Securities,
counsel for the Holders and counsel for the Purchasers promptly and, if requested by any
such Holder or counsel, confirm such advice in writing (i) when a Registration Statement has
become effective and when any post-effective amendment thereto has been filed and becomes
effective, (ii) of any request by the SEC or any state securities authority for amendments
and supplements to a Registration Statement and Prospectus or for additional information
after the Registration Statement has become effective, (iii) of the issuance by the SEC or
any state securities authority of any stop order suspending the effectiveness of a
Registration Statement or the initiation of any proceedings for that purpose, (iv) if,
between the effective date of a Registration Statement and the closing of any sale of
Registrable Securities covered thereby, the representations and warranties of the Issuer or
the Guarantor contained in any underwriting agreement, securities sales agreement or other
similar agreement, if any, relating to the offering cease to be true and correct in all
material respects or if the Issuer or the Guarantor receives any notification with respect
to the suspension of the qualification of the Registrable Securities for sale in any
jurisdiction or the initiation of any proceeding for such purpose, (v) of the happening of
any event during the period a Shelf Registration Statement is effective which makes any
statement made in such Registration Statement or the related Prospectus untrue in any
material respect or which requires the making of any changes in such Registration Statement
or Prospectus in order to make the statements therein not misleading and (vi) of any
determination by the Issuer or the Guarantor that a post-effective amendment to a
Registration Statement would be appropriate;

     (f) make every reasonable effort to obtain the withdrawal of any order suspending the
effectiveness of a Registration Statement at the earliest possible moment and provide
immediate notice to each Holder of the withdrawal of any such order;

     (g) in the case of a Shelf Registration, furnish to each Holder of Registrable
Securities, without charge, at least one conformed copy of each Registration Statement

9

 

and any post-effective amendment thereto (without documents incorporated therein by
reference or exhibits thereto, unless requested);

     (h) in the case of a Shelf Registration, cooperate with the selling Holders of
Registrable Securities to facilitate the timely preparation and delivery of certificates
representing Registrable Securities to be sold and not bearing any restrictive legends and
enable such Registrable Securities to be in such denominations (consistent with the
provisions of the Indenture) and registered in such names as the selling Holders may
reasonably request at least one Business Day prior to the closing of any sale of Registrable
Securities;

     (i) in the case of a Shelf Registration, upon the occurrence of any event contemplated
by Section 3(e)(v) hereof, use their reasonable best efforts to prepare and file
with the SEC a supplement or post-effective amendment to a Registration Statement or the
related Prospectus or any document incorporated therein by reference or file any other
required document so that, as thereafter delivered to the purchasers of the Registrable
Securities, such Prospectus will not contain any untrue statement of a material fact or omit
to state a material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading. The Issuer and the Guarantor
agree to notify the Holders to suspend use of the Prospectus as promptly as practicable
after the occurrence of such an event, and the Holders hereby agree to suspend use of the
Prospectus until the Issuer and the Guarantor have amended or supplemented the Prospectus to
correct such misstatement or omission;

     (j) a reasonable time prior to the filing of any Registration Statement, any
Prospectus, any amendment to a Registration Statement or amendment or supplement to a
Prospectus or any document which is to be incorporated by reference into a Registration
Statement or a Prospectus after initial filing of a Registration Statement, provide copies
of such document to the Purchasers and their counsel (and, in the case of a Shelf
Registration Statement, the Holders and their counsel) and make such of the representatives
of the Issuer and the Guarantor as shall be reasonably requested by the Purchasers or their
counsel (and, in the case of a Shelf Registration Statement, the Holders or their counsel)
available for discussion of such document, and shall not at any time file or make any
amendment to the Registration Statement, any Prospectus or any amendment of or supplement to
a Registration Statement or a Prospectus or any document which is to be incorporated by
reference into a Registration Statement or a Prospectus, of which the Purchasers and their
counsel (and, in the case of a Shelf Registration Statement, the Holders and their counsel)
shall not have previously been advised and furnished a copy or to which the Purchasers or
their counsel (and, in the case of a Shelf Registration Statement, the Holders or their
counsel) shall object;

     (k) obtain a CUSIP number for all Exchange Securities or Registrable Securities, as the
case may be, not later than the effective date of a Registration Statement;

     (l) cause the Indenture to be qualified under the Trust Indenture Act of 1939, as
amended (the “TIA”), in connection with the registration of the Exchange Securities
or

10

 

Registrable Securities, as the case may be, cooperate with the Trustee and the Holders
to effect such changes to the Indenture as may be required for the Indenture to be so
qualified in accordance with the terms of the TIA and execute, and use their reasonable best
efforts to cause the Trustee to execute, all documents as may be required to effect such
changes and all other forms and documents required to be filed with the SEC to enable the
Indenture to be so qualified in a timely manner;

     (m) in the case of a Shelf Registration, subject to the execution and delivery to the
Issuer and the Guarantor of any customary confidentiality agreements the Issuer or the
Guarantor may reasonably request, make available for inspection by a representative of the
Holders of the Registrable Securities, any Underwriter participating in any disposition
pursuant to such Shelf Registration Statement, and attorneys and accountants designated by
the Holders, at reasonable times and in a reasonable manner, all financial and other
records, pertinent documents and properties of the Issuer and the Guarantor, and cause the
respective officers, directors and employees of the Issuer and the Guarantor to supply all
information reasonably requested by any such representative, Underwriter, attorney or
accountant in connection with a Shelf Registration Statement;

     (n) in the case of a Shelf Registration, use their reasonable best efforts to cause all
Registrable Securities to be listed on any securities exchange or any automated quotation
system on which similar securities issued by the Issuer and the Guarantor are then listed if
requested by the Majority Holders, to the extent such Registrable Securities satisfy
applicable listing requirements;

     (o) use their reasonable best efforts to cause the Exchange Securities or Registrable
Securities, as the case may be, to be rated by two nationally recognized statistical rating
organizations (as such term is defined in Rule 436(g)(2) under the 1933 Act);

     (p) if reasonably requested by any Holder of Registrable Securities covered by a
Registration Statement, (i) promptly incorporate in a Prospectus supplement or
post-effective amendment such information with respect to such Holder as such Holder
reasonably requests to be included therein and (ii) make all required filings of such
Prospectus supplement or such post-effective amendment as soon as the Issuer and the
Guarantor have received notification of the matters to be incorporated in such filing; and

     (q) in the case of a Shelf Registration, enter into such customary agreements and take
all such other actions in connection therewith (including those requested by the Holders of
a majority of the Registrable Securities being sold) in order to expedite or facilitate the
disposition of such Registrable Securities including, but not limited to, an Underwritten
Offering and in such connection, to the extent possible, (i) make such representations and
warranties to the Holders and any Underwriters of such Registrable Securities with respect
to the business of the Issuer and the Guarantor and their respective subsidiaries, the
Registration Statement, the Prospectus and documents incorporated by reference or deemed
incorporated by reference therein, if any, in each case, in form, substance and scope as are
customarily made by issuers to underwriters in underwritten offerings and confirm the same
if and when requested, (ii) obtain opinions of counsel to

11

 

the Issuer and the Guarantor (which counsel and opinions, in form, scope and substance,
shall be reasonably satisfactory to the Holders and such Underwriters and their respective
counsel) addressed to each selling Holder and Underwriter of Registrable Securities,
covering the matters customarily covered in opinions requested in underwritten offerings,
(iii) obtain “cold comfort” letters from the independent certified public accountants of the
Issuer and the Guarantor (and, if necessary, any other certified public accountant of any
subsidiary of the Issuer or the Guarantor, or of any business acquired by the Issuer or the
Guarantor for which financial statements and financial data are or are required to be
included in the Registration Statement) addressed to each selling Holder and Underwriter of
Registrable Securities, such letters to be in customary form and covering matters of the
type customarily covered in “cold comfort” letters in connection with underwritten
offerings, and (iv) deliver such documents and certificates as may be reasonably requested
by the Holders of a majority in principal amount of the Registrable Securities being sold or
the Underwriters, and which are customarily delivered in underwritten offerings, to evidence
the continued validity of the representations and warranties of the Issuer and the Guarantor
made pursuant to clause (i) above and to evidence compliance with any customary conditions
contained in an underwriting agreement.

     In the case of a Shelf Registration Statement, the Issuer and the Guarantor may require each
Holder of Registrable Securities to furnish to the Issuer and the Guarantor such information
regarding the Holder and the proposed distribution by such Holder of such Registrable Securities as
the Issuer and the Guarantor may from time to time reasonably request in writing.

     In the case of a Shelf Registration Statement, each Holder agrees that, upon receipt of any
notice from the Issuer and the Guarantor of the happening of any event of the kind described in
Section 3(e)(v) hereof, such Holder will forthwith discontinue disposition of Registrable
Securities pursuant to a Registration Statement until such Holder’s receipt of the copies of the
supplemented or amended Prospectus contemplated by Section 3(i) hereof, and, if so directed
by the Issuer and the Guarantor, such Holder will deliver to the Issuer and the Guarantor (at their
expense) all copies in its possession, other than permanent file copies then in such Holder’s
possession, of the Prospectus covering such Registrable Securities current at the time of receipt
of such notice. If the Issuer and the Guarantor shall give any such notice to suspend the
disposition of Registrable Securities pursuant to a Registration Statement, the Issuer and the
Guarantor shall extend the period during which the Registration Statement shall be maintained
effective pursuant to this Agreement by the number of days during the period from and including the
date of the giving of such notice to and including the date when the Holders shall have received
copies of the supplemented or amended Prospectus necessary to resume such dispositions. The Issuer
and the Guarantor may give any such notice only twice during any 365– day period and any such
suspensions may not exceed 30 days for each suspension and there may not be more than two
suspensions in effect during any 365–day period.

     The Holders of Registrable Securities covered by a Shelf Registration Statement who desire to
do so may sell such Registrable Securities in an Underwritten Offering. In any such Underwritten
Offering, the investment banker or investment bankers and manager or managers (the
“Underwriters”) that will administer the offering will be selected by the Majority Holders
of the Registrable Securities included in such offering.

12

 

     4. Participation of Broker-Dealers in Exchange Offer.

     (a) The Staff of the SEC has taken the position that any broker-dealer that receives
Exchange Securities for its own account in the Exchange Offer in exchange for Securities
that were acquired by such broker-dealer as a result of market-making or other trading
activities (a “Participating Broker-Dealer”), may be deemed to be an “underwriter”
within the meaning of the 1933 Act and must deliver a prospectus meeting the requirements of
the 1933 Act in connection with any resale of such Exchange Securities. The Issuer and the
Guarantor understand that it is the Staff’s position that if the Prospectus contained in the
Exchange Offer Registration Statement includes a plan of distribution containing a statement
to the above effect and the means by which Participating Broker-Dealers may resell the
Exchange Securities, without naming the Participating Broker-Dealers or specifying the
amount of Exchange Securities owned by them, such Prospectus may be delivered by
Participating Broker-Dealers to satisfy their prospectus delivery obligation under the 1933
Act in connection with resales of Exchange Securities for their own accounts, so long as the
Prospectus otherwise meets the requirements of the 1933 Act.

     (b) In light of the above, notwithstanding the other provisions of this Agreement, the
Issuer and the Guarantor agree that the provisions of this Agreement as they relate to a
Shelf Registration shall also apply to an Exchange Offer Registration to the extent, and
with such reasonable modifications thereto as may be, reasonably requested by the Purchasers
or by one or more Participating Broker-Dealers, in each case as provided in clause (ii)
below, in order to expedite or facilitate the disposition of any Exchange Securities by
Participating Broker-Dealers consistent with the positions of the Staff recited in
Section 4(a) above; provided that:

     (i) the Issuer and the Guarantor shall not be required to amend or supplement
the Prospectus contained in the Exchange Offer Registration Statement, as would
otherwise be contemplated by Section 3(i), for a period exceeding 180 days
after the last Exchange Date (as such period may be extended pursuant to the
penultimate paragraph of Section 3 of this Agreement) and Participating
Broker-Dealers shall not be authorized by the Issuer and the Guarantor to deliver
and shall not deliver such Prospectus after such period in connection with the
resales contemplated by this Section 4; and

     (ii) the application of the Shelf Registration procedures set forth in
Section 3 of this Agreement to an Exchange Offer Registration, to the extent
not required by the positions of the Staff of the SEC or the 1933 Act and the rules
and regulations thereunder, will be in conformity with the reasonable request to the
Issuer or the Guarantor by the Purchasers or with the reasonable request in writing
to the Issuer and the Guarantor by one or more broker-dealers who certify to the
Purchasers and the Issuer and the Guarantor in writing that they anticipate that
they will be Participating Broker-Dealers; and provided further that, in connection
with such application of the Shelf Registration procedures set forth in Section
3 to an Exchange Offer Registration, the Issuer and the Guarantor shall be
obligated (x) to pay the fees and expenses of only one counsel representing the
Participating

13

 

Broker-Dealers, which shall be counsel to the Purchasers unless such counsel
elects not to so act and (y) to cause to be delivered only one, if any, “cold
comfort” letter with respect to the Prospectus in the form existing on the last
Exchange Date and with respect to each subsequent amendment or supplement, if any,
effected during the period specified in clause (i) above.

     (c) The Purchasers shall have no liability to the Issuer or the Guarantor or any Holder
with respect to any request that it may make pursuant to Section 4(b) above.

     5. Indemnification and Contribution.

     (a) The Issuer and the Guarantor, jointly and severally, agree to indemnify and hold
harmless the Purchasers, each Holder and each Person, if any, who controls any Purchaser or
any Holder within the meaning of either Section 15 of the 1933 Act or Section 20 of the 1934
Act, or is under common control with, or is controlled by, any Purchaser or any Holder, from
and against all losses, claims, damages and liabilities (including, without limitation, any
legal or other expenses reasonably incurred by the Purchaser, any Holder or any such
controlling or affiliated Person in connection with defending or investigating any such
action or claim) (i) caused by any untrue statement or alleged untrue statement of a
material fact contained in any Registration Statement (or any amendment thereto) pursuant to
which Exchange Securities or Registrable Securities were registered under the 1933 Act,
including all documents incorporated therein by reference, or caused by any omission or
alleged omission to state therein a material fact required to be stated therein or necessary
to make the statements therein not misleading, or (ii) caused by any untrue statement or
alleged untrue statement of a material fact contained in any Prospectus (as amended or
supplemented if the Issuer or the Guarantor shall have furnished any amendments or
supplements thereto), or caused by any omission or alleged omission to state therein a
material fact necessary to make the statements therein in light of the circumstances under
which they were made not misleading, except insofar as such losses, claims, damages or
liabilities are caused by any such untrue statement or omission or alleged untrue statement
or omission based upon information relating to the Purchasers or any Holder furnished to the
Issuer or the Guarantor in writing by the Purchasers or any selling Holder expressly for use
therein, provided, further, that the Issuer or the Guarantor shall not be liable to any such
Holder, Participating Broker-Dealer or controlling person, with respect to any untrue
statement or alleged untrue statement or omission or alleged omission in any preliminary
Prospectus to the extent that any such loss, liability, claim, damage or expense of any
Holder, Participating Broker-Dealer or controlling person results from the fact that such
Holder or Participating Broker-Dealer sold Securities to a person to whom there was not sent
or given, at or prior to the written confirmation of such sale, a copy of the final
Prospectus as then amended or supplemented if the Issuer or the Guarantor had previously
furnished copies thereof to such Holder or Participating Broker-Dealer and the loss,
liability, claim, damage or expense of such Holder, Participating Broker-Dealer or
controlling person results from an untrue statement or omission of a material fact contained
in the preliminary Prospectus which was corrected in the final Prospectus. Any amounts
advanced by the Issuer or the Guarantor to an indemnified party pursuant to this Section 5
as a result of such losses shall be returned to the Issuer or the Guarantor if it shall be

14

 

finally determined by such a court in a judgment not subject to appeal or final review
that such indemnified party was not entitled to indemnification by the Issuer or the
Guarantor. In connection with any Underwritten Offering permitted by Section 3, the
Issuer and the Guarantor will also indemnify, jointly and severally, the Underwriters, if
any, selling brokers, dealers and similar securities industry professionals participating in
the distribution, their officers and directors and each Person who controls such Persons
(within the meaning of the 1933 Act and the 1934 Act) to the same extent as provided above
with respect to the indemnification of the Holders, if requested in connection with any
Registration Statement.

     (b) Each Holder agrees, severally and not jointly, to indemnify and hold harmless the
Issuer and the Guarantor, the Purchasers and the other selling Holders, and each of their
respective directors, officers who sign the Registration Statement and each Person, if any,
who controls the Issuer or the Guarantor, any Purchaser and any other selling Holder within
the meaning of either Section 15 of the 1933 Act or Section 20 of the 1934 Act to the same
extent as the foregoing indemnity from the Issuer and the Guarantor to the Purchasers and
the Holders, but only with reference to information relating to such Holder furnished to the
Issuer or the Guarantor in writing by such Holder expressly for use in any Registration
Statement (or any amendment thereto) or any Prospectus (or any amendment or supplement
thereto).

     (c) In case any proceeding (including any governmental investigation) shall be
instituted involving any Person in respect of which indemnity may be sought pursuant to
either paragraph (a) or paragraph (b) above, such Person (the “indemnified party”)
shall promptly notify the Person against whom such indemnity may be sought (the
“indemnifying party”) in writing; provided, that the failure to notify the
indemnifying party shall not relieve it from any liability that it may have under this
Section 5 except to the extent that it has been materially prejudiced (through the
forfeiture of substantive rights or defenses) by such failure; and provided, further, that
the failure to notify the indemnifying party shall not relieve it from any liability that it
may have to an indemnified party otherwise than under this Section 5. The
indemnifying party, upon request of the indemnified party, shall retain counsel reasonably
satisfactory to the indemnified party to represent the indemnified party and any others the
indemnifying party may designate in such proceeding and shall pay the fees and disbursements
of such counsel related to such proceeding. In any such proceeding, any indemnified party
shall have the right to retain its own counsel, but the fees and expenses of such counsel
shall be at the expense of such indemnified party unless the indemnifying party and the
indemnified party shall have mutually agreed to the retention of such counsel or (ii) the
named parties to any such proceeding (including any impleaded parties) include both the
indemnifying party and the indemnified party and representation of both parties by the same
counsel would be inappropriate due to actual or potential differing interests between them.
It is understood that the indemnifying party shall not, in connection with any proceeding or
related proceedings in the same jurisdiction, be liable for (A) the fees and expenses of
more than one separate firm (in addition to any local counsel) for the Purchasers and all
Persons, if any, who control any Purchaser within the meaning of either Section 15 of the
1933 Act or Section 20 of the 1934 Act, (B) the fees and expenses of more than one separate
firm (in addition to any local counsel) for the Issuer

15

 

and the Guarantor, their directors, their officers who sign the Registration Statement
and each Person, if any, who controls the Issuer or the Guarantor within the meaning of
either such Section and (C) the fees and expenses of more than one separate firm (in
addition to any local counsel) for all Holders and all Persons, if any, who control any
Holders within the meaning of either such Section, and that all such fees and expenses shall
be reimbursed as they are incurred. In such case involving the Purchasers and Persons who
control the Purchasers, such firm shall be designated in writing by Deutsche Bank Securities
Inc. In such case involving the Holders and such Persons who control Holders, such firm
shall be designated in writing by the Majority Holders. In all other cases, such firm shall
be designated by the Issuer and the Guarantor. The indemnifying party shall not be liable
for any settlement of any proceeding effected without its written consent but, if settled
with such consent or if there be a final judgment for the plaintiff, the indemnifying party
agrees to indemnify the indemnified party from and against any loss or liability by reason
of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an
indemnified party shall have requested an indemnifying party to reimburse the indemnified
party for fees and expenses of counsel as contemplated by the second and third sentences of
this paragraph, the indemnifying party agrees that it shall be liable for any settlement of
any proceeding effected without its written consent if (i) such settlement is entered into
more than 30 days after receipt by such indemnifying party of the aforesaid request and (ii)
such indemnifying party shall not have reimbursed the indemnified party for such fees and
expenses of counsel in accordance with such request prior to the date of such settlement.
No indemnifying party shall, without the prior written consent of the indemnified party,
effect any settlement of any pending or threatened proceeding in respect of which such
indemnified party is or could have been a party and indemnity could have been sought
hereunder by such indemnified party, unless such settlement includes an unconditional
release of such indemnified party from all liability on claims that are the subject matter
of such proceeding.

     (d) If the indemnification provided for in paragraph (a) or paragraph (b) of this
Section 5 is unavailable to an indemnified party or insufficient in respect of any
losses, claims, damages or liabilities, then each indemnifying party under such paragraph,
in lieu of indemnifying such indemnified party thereunder, shall contribute to the amount
paid or payable by such indemnified party as a result of such losses, claims, damages or
liabilities in such proportion as is appropriate to reflect the relative fault of the
indemnifying party or parties on the one hand and of the indemnified party or parties on the
other hand in connection with the statements or omissions that resulted in such losses,
claims, damages or liabilities, as well as any other relevant equitable considerations. The
relative fault of the Issuer and the Guarantor, on the one hand, and the Holders, on the
other hand, shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by the Issuer and the Guarantor or by the
Holders and the parties’ relative intent, knowledge, access to information and opportunity
to correct or prevent such statement or omission. The Holders’ respective obligations to
contribute pursuant to this Section 5(d) are several in proportion to the respective
principal amount of Registrable Securities of such Holder that were registered pursuant to a
Registration Statement.

16

 

     (e) The Issuer and the Guarantor and each Holder agree that it would not be just or
equitable if contribution pursuant to this Section 5 were determined by pro rata
allocation or by any other method of allocation that does not take account of the equitable
considerations referred to in paragraph (d) above. The amount paid or payable by an
indemnified party as a result of the losses, claims, damages and liabilities referred to in
paragraph (d) above shall be deemed to include, subject to the limitations set forth above,
any legal or other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding the provisions of this
Section 5, no Holder shall be required to indemnify or contribute any amount in
excess of the amount by which the total price at which Registrable Securities were sold by
such Holder exceeds the amount of any damages that such Holder has otherwise been required
to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.
No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the 1933 Act) shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation. The remedies provided for in this Section 5 are not
exclusive and shall not limit any rights or remedies which may otherwise be available to any
indemnified party at law or in equity.

     The indemnity and contribution provisions contained in this Section 5 shall remain
operative and in full force and effect regardless of (i) any termination of this Agreement, (ii)
any investigation made by or on behalf of the Purchasers, any Holder or any Person controlling any
Purchaser or any Holder, or by or on behalf of the Issuer and the Guarantor, their officers or
directors or any Person controlling the Issuer or the Guarantor, (iii) acceptance of any of the
Exchange Securities and (iv) any sale of Registrable Securities pursuant to a Shelf Registration
Statement.

     6. Miscellaneous.

     (a) Rule 144 and Rule 144A. For so long as the Guarantor is subject to the
reporting requirements of Section 13 or 15 of the 1934 Act, the Guarantor covenants that it
will file the reports required to be filed by it under the 1933 Act and Section 13(a) or
15(d) of the 1934 Act and the rules and regulations adopted by the SEC thereunder. If the
Guarantor ceases to be so required to file such reports, the Guarantor covenants that it
will upon the request of any Holder of Registrable Securities (a) make publicly available
such information as is necessary to permit sales pursuant to Rule 144 under the 1933 Act,
(b) deliver such information to a prospective purchaser as is necessary to permit sales
pursuant to Rule 144A under the 1933 Act, and (c) take such further action that is
reasonable in the circumstances, in each case, to the extent required from time to time to
enable such Holder to sell its Registrable Securities without registration under the 1933
Act within the limitation of the exemptions provided by (i) Rule 144 under the 1933 Act, as
such Rule may be amended from time to time, (ii) Rule 144A under the 1933 Act, as such Rule
may be amended from time to time, or (iii) any similar rules or regulations hereafter
adopted by the SEC. Upon the request of any Holder of Registrable Securities, the Guarantor
will deliver to such Holder a written statement as to whether it has complied with such
requirements. The Issuer agrees to comply with the information obligations set forth above
to the extent that it is required by applicable law or regulations.

17

 

     (b) No Inconsistent Agreements. Neither the Issuer nor the Guarantor have
entered into, and on or after the date of this Agreement will enter into, any agreement
which is inconsistent with the rights granted to the Holders of Registrable Securities in
this Agreement or otherwise conflicts with the provisions hereof. The rights granted to the
Holders hereunder do not in any way conflict with and are not inconsistent with the rights
granted to the holders of the Issuer or the Guarantor’s other issued and outstanding
securities under any such agreements.

     (c) Amendments and Waivers. The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or supplemented, and waivers or
consents to departures from the provisions hereof may not be given unless the Issuer and the
Guarantor have obtained the written consent of Holders of at least a majority in aggregate
principal amount of the outstanding Registrable Securities affected by such amendment,
modification, supplement, waiver or consent; provided, however, that no amendment,
modification, supplement, waiver or consent to any departure from the provisions of
Section 5 hereof shall be effective as against any Holder of Registrable Securities
unless consented to in writing by such Holder.

     (d) Notices. All notices and other communications provided for or permitted
hereunder shall be made in writing by hand-delivery, registered first-class mail, telex,
telecopier, or any courier guaranteeing overnight delivery (i) if to a Holder, at the most
current address given by such Holder to the Issuer or the Guarantor by means of a notice
given in accordance with the provisions of this Section 6(d), which address
initially is, with respect to the Purchasers, the address set forth in the Purchase
Agreement; and (ii) if to the Issuer or the Guarantor, initially at such party’s address set
forth in the Purchase Agreement and thereafter at such other address, notice of which is
given in accordance with the provisions of this Section 6(d). All such notices and
communications shall be deemed to have been duly given: at the time delivered by hand, if
personally delivered; five Business Days after being deposited in the mail, postage prepaid,
if mailed; when answered back, if telexed; when receipt is acknowledged, if telecopied; and
on the next Business Day if timely delivered to an air courier guaranteeing overnight
delivery. Copies of all such notices, demands, or other communications shall be concurrently
delivered by the Person giving the same to the Trustee, at the address specified in the
Indenture.

     (e) Successors and Assigns. This Agreement shall inure to the benefit of and
be binding upon the successors, assigns and transferees of each of the parties, including,
without limitation and without the need for an express assignment, subsequent Holders;
provided that nothing herein shall be deemed to permit any assignment, transfer or other
disposition of Registrable Securities in violation of the terms of the Purchase Agreement.
If any transferee of any Holder shall acquire Registrable Securities, in any manner, whether
by operation of law or otherwise, such Registrable Securities shall be held subject to all
of the terms of this Agreement, and by taking and holding such Registrable Securities such
Person shall be conclusively deemed to have agreed to be bound by and to perform all of the
terms and provisions of this Agreement and such Person shall be entitled to receive the
benefits hereof. The Purchasers (in their capacity as Purchasers) shall have no liability
or obligation to the Issuer or the Guarantor with respect to any

18

 

failure by a Holder to comply with, or any breach by any Holder of, any of the
obligations of such Holder under this Agreement.

     (f) Purchases and Sales of Securities. The Issuer and the Guarantor shall not,
and shall use their reasonable best efforts to cause their affiliates (as defined in Rule
405 under the 1933 Act) not to, purchase and then resell or otherwise transfer any
Securities.

     (g) Third Party Beneficiary. The Holders shall be third party beneficiaries to
the agreements made hereunder between the Issuer and the Guarantor, on the one hand, and the
Purchasers, on the other hand, and shall have the right to enforce such agreements directly
to the extent it deems such enforcement necessary or advisable to protect its rights or the
rights of Holders hereunder.

     (h) Counterparts. This Agreement may be executed in any number of counterparts
and by the parties hereto in separate counterparts, each of which when so executed shall be
deemed to be an original and all of which taken together shall constitute one and the same
agreement.

     (i) Headings. The headings in this Agreement are for convenience of reference
only and shall not limit or otherwise affect the meaning hereof.

     (j) Waiver of Immunities. To the extent that the Issuer or the Guarantor or
any of their respective properties, assets or revenues may have or may hereafter become
entitled to, or have attributed to it, any right of immunity, on the grounds of sovereignty
or otherwise, from any legal action, suit or proceeding, from the giving of any relief in
any thereof, from set-off or counterclaim, from the jurisdiction of any court, from service
of process, from attachment upon or prior to judgment, from attachment in aid of execution
of judgment, or from execution of judgment, or other legal process or proceeding for the
giving of any relief or for the enforcement of any judgment, in any jurisdiction in which
proceedings may at any time be commenced, with respect to its obligations, liabilities or
any other matter under or arising out of or in connection with this Agreement, the Issuer
and the Guarantor hereby irrevocably and unconditionally waive, and agree not to plead or
claim, any such immunity and consent to such relief and enforcement.

     (k) GOVERNING LAW. THIS AGREEMENT 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 REGARDS TO PRINCIPLES OF CONFLICTS OF LAW.

     (l) Consent to Jurisdiction; Appointment of Agent to Accept Service of Process.

     (i) The Issuer and the Guarantor irrevocably consent and agree, for the benefit
of the Holders from time to time of the Securities and the Guarantee, the Purchasers
and the other persons referred to in Section 6(g) that any legal action,
suit or proceeding against it with respect to its obligations, liabilities or

19

 

any other matter arising out of or in connection with this Agreement may be
brought in the courts of the State of New York located in The City of New York and
the courts of the United States located in The City of New York and, until all
amounts due and to become due in respect of the Securities and the Guarantee have
been paid, or until any such legal action, suit or proceeding commenced prior to
such payment has been concluded, hereby irrevocably consent and submit to the
non-exclusive jurisdiction of each such court in personam, generally and
unconditionally with respect to any action, suit or proceeding for itself and in
respect of its properties, assets and revenues.

     (ii) The Issuer and the Guarantor hereby irrevocably designate, appoint, and
empower CT Corporation System, 111 Eighth Avenue, New York, New York 10011, as their
designee, appointee and agent to receive, accept and acknowledge for and on their
behalf service of any and all legal process, summons, notices and documents that may
be served in any action, suit or proceeding brought against the Issuer or the
Guarantor in any such United States federal or state court with respect to its
obligations, liabilities or any other matter arising out of or in connection with
this Agreement and that may be made on such designee, appointee and agent in
accordance with legal procedures prescribed for such courts. If for any reason such
designee, appointee and agent hereunder shall cease to be available to act as such,
the Issuer and the Guarantor agree to designate a new designee, appointee and agent
in The City of New York on the terms and for the purposes of this Section
6(l) reasonably satisfactory to each of the Representatives. The Issuer and the
Guarantor further hereby irrevocably consent and agree to the service of any and all
legal process, summons, notices and documents in any such action, suit or proceeding
against the Issuer and the Guarantor by serving a copy thereof upon the relevant
agent for service of process referred to in this Section 6(l) (whether or
not the appointment of such agent shall for any reason prove to be ineffective or
such agent shall accept or acknowledge such service) or by mailing copies thereof by
registered or certified air mail, postage prepaid, to the Issuer or the Guarantor at
its respective address specified in or designated pursuant to this Agreement. The
Issuer and the Guarantor agree that the failure of any such designee, appointee and
agent to give any notice of such service to them shall not impair or affect in any
way the validity of such service or any judgment rendered in any action or
proceeding based thereon. Nothing herein shall in any way be deemed to limit the
ability of the holders of the Securities and the Guarantee, the Purchasers and the
other persons referred to in Section 6(g) to serve any such legal process,
summons, notices and documents in any other manner permitted by applicable law or to
obtain jurisdiction over the Issuer or the Guarantor or bring actions, suits or
proceedings against the Issuer or the Guarantor in such other jurisdictions, and in
such manner, as may be permitted by applicable law. The Issuer and the Guarantor
hereby irrevocably and unconditionally waive, to the fullest extent permitted by
law, any objection that they may now or hereafter have to the laying of venue of any
of the aforesaid actions, suits or proceedings arising out of or in connection with
this Agreement brought in the courts of the State of New York located in The City of
New York or the courts of the United States located in The City of New York and
hereby

20

 

further irrevocably and unconditionally waive and agree not to plead or claim
in any such court that any such action, suit or proceeding brought in any such court
has been brought in an inconvenient forum.

     (iii) The provisions of this Section 6(l) shall survive any termination
of this Agreement, in whole or in part.

     (m) Severability. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstance, is held invalid, illegal
or unenforceable, the validity, legality and enforceability of any such provision in every
other respect and of the remaining provisions contained herein shall not be affected or
impaired thereby.

21

 

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

	 	 	 	 	 
	 	     BAXTER FINCO B.V.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BAXTER INTERNATIONAL INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

The foregoing Agreement

     is hereby confirmed and accepted

     as of the date first above written.

DEUTSCHE BANK SECURITIES INC.

ABN AMRO INCORPORATED

BNP PARIBAS SECURITIES CORP.

WACHOVIA CAPITAL MARKETS, LLC

By: Deutsche Bank Securities Inc.

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	GOLDMAN, SACHS & CO.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

Signature Page to Registration Rights Agreement

 

 

SCHEDULE A

	 	 	 
	Purchasers	 	 
	Deutsche Bank Securities Inc.

	 	 
	 
	 	 
	Goldman, Sachs & Co.
	 	 
	 
	 	 
	ABN AMRO Incorporated
	 	 
	 
	 	 
	BNP Paribas Securities Corp.
	 	 
	 
	 	 
	Wachovia Capital Markets, LLC

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