Document:

EX-10.3

 EXHIBIT 10.3 

Baxter International Inc. 

Equity Plan 
 adopted as
of March 3, 2016 
  

	1.	Purpose 

 This Equity Plan (the “Plan”) has been adopted by the Compensation Committee
(the “Committee”) of the Board of Directors (the “Board”) of Baxter International Inc. (“Baxter”). 
  

	2.	Participants 

 Participants in this Plan (each a “Participant”) shall be select
employees of Baxter or its subsidiaries (the “Company”) to whom the Committee may make awards of stock options (each an “Option”), performance share units (each a “PSU”) and restricted stock units
(each an “RSU”, and together with Options and PSUs, “Awards”) under this Plan. 
  

	3.	Awards 

 Awards shall be made pursuant to and for the purposes stated in the Company incentive
compensation program or plan (the “Program”) identified in the individual grant materials provided to the Participant (the “Grant”). Such Grant materials consist of a communication letter to Participants notifying them of their
Awards and may include alternative terms with respect to vesting, in which case the vesting terms in the Grant communication letter shall govern. All Awards granted hereunder shall be subject to the Company’s Incentive Compensation Recoupment
Policy or Executive Compensation Recoupment Policy, as applicable. Each Award shall be granted as of the date approved and as provided in the Grant, or for eligible French employees as soon thereafter as practicable pursuant to applicable French law
(as provided in the attached French Addendum which shall govern such Awards) (the “Grant Date”). The purchase price for each Share subject to an Option shall be the Fair Market Value of a share of common stock (the “Common
Stock”), par value $1.00, of Baxter (each a “Share”) on the Grant Date. The terms of each Award will be as set forth in this Plan. Unless otherwise defined herein, capitalized terms used in this Plan shall have the meanings
set forth in the Program. Options are not intended to qualify as Incentive Stock Options within the meaning of section 422 of the United States Internal Revenue Code, as amended (the “Code”). 

 

	4.	Options 

 4.1. Except for Options granted to employees of the Company’s subsidiaries in
France, Options shall become exercisable as follows: (i) one-third on the first anniversary of the Grant Date, (ii) one-third on the second anniversary of the Grant Date, and (iii) the remainder on the third anniversary of the Grant
Date. Options granted to employees of the Company’s subsidiaries in France shall become exercisable on the fourth anniversary of the Grant Date. If Options would become exercisable on a date that is not a business day, they will become
exercisable on the next business day. A business day is any day on which the Common Stock is traded on the New York Stock Exchange. After Options become exercisable (in each case, in whole or in part) and until they expire, the Options may be
exercised in whole or in part, in the manner specified by the Committee. Under no circumstances may Options be exercised after they have expired. Shares may be used to pay the purchase price for Shares to be acquired upon exercise of Options or
fulfill any tax withholding obligation, subject to any requirements or restrictions specified by the Committee. 

 4.2. If a Participant’s employment with the Company terminates before the Participant’s Options
become exercisable, the Options will expire when the Participant’s employment with the Company terminates, except (i) in connection with a Qualifying Retirement or death or disability (each as outlined below) or (ii) if the
Participant is rehired by the Company within ninety days of termination, in which case the Participant shall be construed to have been continuously employed by the Company for purposes of vesting and exercise. 

4.3. If a Participant’s employment with the Company terminates after the Participant’s Options become exercisable, the Options will not
expire immediately but will remain exercisable. Subject to Section 4.6, and except in the event of a Qualifying Retirement (as provided in Section 4.4), the Options will expire ninety days after the Participant’s employment with the
Company terminates. If the Participant dies or becomes disabled during the ninety-day period, the Options will expire on the fifth anniversary of the termination date. 

4.4. If the employment of a Participant who is at least 65 years of age, or at least 55 years of age with at least 10 years of employment with the
Company, is terminated other than for Cause or by reason of the Participant’s death or disability (a “Qualifying Retirement”) then (i) if the date of such termination is after the calendar year of the Grant Date, the
Options shall continue to vest as provided in Section 4.1, or (ii) if the date of such termination is in the calendar year of the Grant Date, a portion of the Options shall continue to vest as provided in Section 4.1, which portion
shall be determined as follows: (# shares covered by Option award) * (# of months worked in that year, rounded to nearest whole month) / 12. Subject to Section 4.6, the Participant’s Options (whether vesting pursuant to (i) or
(ii) or previously vested) shall expire on the fifth anniversary of the termination date. 
 4.5. If the employment of a Participant is
terminated due to death or disability, then (i) if the date of such termination is after the calendar year of the Grant Date, the Options shall vest immediately, or (ii) if the date of such termination is in the calendar year of the Grant
Date, a portion of the Options shall vest immediately, which portion shall be determined as follows: (# shares covered by Option award) * (# of months worked in that year, rounded to nearest whole month) / 12. Subject to Section 4.6, such
Options will expire on the fifth anniversary of the termination date. 
 4.6. Options that have not previously expired will expire at the close of
business on the tenth anniversary of the Grant Date; provided, however, that Options granted to employees residing in Switzerland on the Grant Date shall expire on the eleventh anniversary of the Grant Date. If Options would expire on a date that is
not a business day, they will expire at the close of business on the last business day preceding that date. 
 4.7. Except as the Committee may
otherwise provide, Options may only be exercised by the Participant, the Participant’s legal representative, or a person to whom the Participant’s rights in the Options are transferred by will or the laws of descent and distribution. 

  
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 4.8. A transfer of employment within the Company will not constitute a termination of employment within
the meaning of the Plan. 
 4.9. A transfer of employment to a company that assumes an Option or issues a substitute option in a transaction to which
Section 424 of the Code applies will not constitute a termination of employment within the meaning of the Plan. 
 4.10. Except to the extent
that it would cause the Option to be subject to Section 409A of the Code, the Committee may, in its sole discretion and without receiving permission from any Participant, substitute stock appreciation rights (“SARs”) for any or
all outstanding Options. Upon the grant of substitute SARs, the related Options replaced by the substitute SARs shall be cancelled. The grant price of the substitute SARs shall be equal to the Option Price of the related Options, the term of the
substitute SARs shall not exceed the term of the related Options, and the terms and conditions applicable to the substitute SARs shall otherwise be substantially the same as those applicable to the related Options replaced by the substitute SARs.
Upon exercise, the SARs will be settled in Shares. 
 4.11. To the extent that an Option has not been exercised on the date the Option would
otherwise expire pursuant to Section 4.6, and the Fair Market Value of the Common Stock on such date exceeds the exercise price, Baxter may (but shall not be obligated to), on behalf of the Participant, direct that the Option be exercised and
the shares of Common Stock sold, with the proceeds used to pay the exercise price and any applicable tax withholding, and the remaining proceeds credited to the Participant’s account, or take such other action as the Committee may determine;
provided that in no event shall Baxter, any member of the Committee, or any person acting on their behalf have any liability to a Participant for failing to take any such action. 

 

	5.	Performance Share Units 

 5.1. The PSUs will be earned 50% under 5.1(a) and 50% under 5.1(b) as
follows: 
 5.1(a). The PSUs earned under this subsection (a) will be earned based on the rank of Baxter’s growth in shareholder value
(“GSV”) relative to the GSV of companies in the healthcare peer group selected by the Committee within the first ninety (90) days of 2016 (the “GSV PSUs”). GSV will be measured over a three-year period
beginning with the first day of the calendar year of the Grant Date and ending on the last day of the third calendar year (the “GSV Performance Period”). 

The GSV PSUs will pay out in shares of Common Stock in a range of 0% to 200% of the number of GSV PSUs awarded to the Participant as follows: 

 

			
	 Baxter’s Percent Rank
	 	
Percentage of Target Grant Earned

	 85 percent or above
	 	200%
	 75 percent
	 	150%
	 60 percent
	 	100%
	 25 percent
	 	25%
	 Below 25 percent
	 	0%

  
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 The GSV PSUs will pay out linearly between each set of data points. GSV will be measured based on the average
closing stock prices over the last twenty days of the GSV Performance Period (plus reinvested dividends) divided by average closing stock prices over the twenty trading days prior to the beginning of the GSV Performance Period. 

5.1(b). The PSUs earned under this subsection (b) will be earned based on Baxter’s Operating Margin (OM) performance (the “OM
PSUs”), as defined below. OM performance will be measured annually over a three-year period, beginning with the first day of the calendar year of the Grant Date and ending on the last day of the third calendar year (the “OM
Performance Period” and together with the GSV Performance Period, the “Performance Periods”), with one-third of the OM PSUs allocated to each one-year period. For each one-year period, the Committee will set a target OM
performance within the first ninety (90) days of each one-year period and assess annual performance against that target after the conclusion of that one-year period, which shall be finalized in accordance with 5.1(c). OM PSUs for the one-year
period shall be deemed earned at such time but shall not vest until the end of the three-year OM Performance Period. The use of the term “earned” in this context shall not be construed to imply that the Participant has completed any
portion of the service required to receive a payment with respect to the OM PSUs until the end of the vesting period. 
 For each one-year period, the OM
PSUs will pay out in shares of Common Stock in a range of 0% to 200% of the number of OM PSUs allocated to that one-year period to the Participant as follows: 
  

			
	 Baxter OM Performance
	 	
Percentage of Target Grant Earned

	 107 percent and above
	 	200%
	 100 percent
	 	100%
	 93 percent
	 	25%
	 Below 93 percent
	 	0%

 The OM PSUs will pay out linearly between each set of data points. OM performance will be measured for each one-year period
based on such year’s operating income divided by annual sales for such year. 
 5.1(c). Following the end of the Performance Periods, the
Committee shall determine the PSU payout, which determination shall be final and binding. Shares of Common Stock earned will be delivered or otherwise made available to the Participant as soon as practical after the Committee makes its determination
but not later than the March 15 after the end of the Performance Periods. PSUs will only be settled in shares of Common Stock. Any other settlement modality shall be considered an exception, which would have to be approved separately by the
Committee. 
 5.2. If a Participant’s employment with the Company terminates before the end of the Performance Periods, any unvested PSUs shall
be forfeited on the effective date of termination, except (i) in connection with a Qualifying Retirement or death or disability (each as outlined below), or (ii) if the Participant is rehired by the Company within ninety days of
termination, in which case the Participant shall be construed to have been continuously employed by the Company for purposes of vesting. 

  
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 5.3. If the employment of a Participant terminates in a Qualifying Retirement then (i) if the date of
such termination is after the calendar year of the Grant Date, the PSUs will remain eligible for payout at the end of the Performance Periods on the terms provided in Section 5.1, or (ii) if the date of such termination is in the calendar
year of the Grant Date a portion of the unearned PSUs shall remain eligible for payout at the end of the Performance Periods on the terms provided in Section 5.1, which portion shall be determined as follows: (# PSUs awarded) * (# of
months worked in that year, rounded to nearest whole month) / 12. 
 5.4. If the employment with the Company of a Participant is terminated due to
death or disability, the PSUs shall vest as follows: (i) if the date of such termination is after the calendar year of the Grant Date, any unearned OM PSUs and any GSV PSUs shall pay out at 100% of the Target Grant (as depicted in the tables in
Section 5.1.), in addition to payment of any earned OM PSUs, within sixty days, or (ii) if the date of such termination is in the calendar year of the Grant Date a portion of the unearned PSUs shall pay out as provided in (i), which
portion shall be determined as follows: (# PSUs awarded) * (# of months worked in that year, rounded to nearest whole month) / 12. 
 5.5. The PSUs
shall not be transferable and may not be sold, assigned, pledged, hypothecated or otherwise encumbered. 
 5.6. A transfer of employment within the
Company will not constitute a termination of employment within the meaning of the Plan. 
 5.7. Until the shares of Common Stock have been delivered
or otherwise made available as provided in Section 5.1, the Participant shall not be treated as a shareholder as to those shares of Common Stock relating to the PSUs. Notwithstanding the foregoing, the Participant shall be permitted to
receive additional PSUs with respect to the PSUs based upon the dividends and distributions paid on shares of Common Stock to the same extent as if each PSU were a share of Common Stock (without adjustment prior to vesting for payment levels set
forth in the table in Section 5.1), which additional PSUs shall be determined in amount and value in the Company’s discretion and shall be delivered or made available at the same time and to the same extent as the PSUs to which they relate
or as otherwise determined by the Company. 
 5.8. To the extent required by Section 409A of the Internal Revenue Code, no PSUs that become
payable to a specified employee (as defined in the Baxter International Inc. and Subsidiaries Deferred Compensation Plan) by reason of a separation from service shall be paid until the first day of the seventh month following the separation from
service, and the PSUs shall be otherwise interpreted and administered in accordance with Section 409A. 
  

	6.	Restricted Stock Units 

 6.1. Except for RSUs granted to the employees of the Company’s
subsidiaries in France, RSUs are subject to being earned and vested as follows: (i) one-third on the first anniversary of the Grant Date, (ii) one-third on the second anniversary of the Grant Date, and (iii) the remainder on the third
anniversary of the Grant Date (each as applicable, a “Vesting Date”). RSUs granted to the employees of the Company’s subsidiaries in France are subject to being earned and vested on the second anniversary of the Grant Date in
accordance with the attached French Addendum. 

  
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If RSUs would become earned and vested on a date that is not a business day, the next business day shall be the Vesting Date. The Company will deliver or otherwise make available to the
Participant within 2 1⁄2 months following the applicable Vesting Date one Share for each RSU that vests. RSUs will only be settled in Shares. Any other
settlement method would be considered an exception and would have to be approved separately by the Committee. 
 6.2. If a Participant’s
employment with the Company terminates before a given Vesting Date, any unvested RSUs will be forfeited when the Participant’s employment with the Company terminates, except (i) in connection with a Qualifying Retirement or death or
disability (each as outlined below), or (ii) if the Participant is rehired by the Company within ninety days of termination, in which case the Participant shall be construed to have been continuously employed by the Company for purposes of
vesting and payout. 
 6.3. If the employment of a Participant terminates in a Qualifying Retirement then (i) if the date of such termination is
after the calendar year of the Grant Date, the RSUs will remain eligible for payout on the terms provided in Section 6.1, or (ii) if the date of such termination is in the calendar year of the Grant Date a portion of the RSUs shall remain
eligible for payout on the terms provided in Section 6.1, which portion shall be determined as follows: (# RSUs awarded) * (# of months worked in that year, rounded to nearest whole month) / 12. 

6.4. If the employment with the Company of a Participant is terminated due to death or disability, the RSUs shall vest as follows: (i) if the date
of such termination is after the calendar year of the Grant Date, all the RSUs shall pay out within sixty days, or (ii) if the date of such termination is in the calendar year of the Grant Date a portion of the RSUs shall pay out within sixty
days, which portion shall be determined as follows: (# RSUs awarded) * (# of months worked in that year, rounded to nearest whole month) / 12. 
 6.5.
The RSUs shall not be transferable and may not be sold, assigned, pledged, hypothecated or otherwise encumbered. 
 6.6. A transfer of employment
within the Company will not constitute a termination of employment within the meaning of the Plan. 
 6.7. Until the Shares have been delivered or
otherwise made available as provided in Section 6.1, the Participant shall not be treated as a shareholder as to those Shares relating to the RSUs. Notwithstanding the foregoing, the Participant shall be permitted to receive additional RSUs
with respect to the RSUs based upon the dividends and distributions paid on Shares to the same extent as if each RSU were a Share, which additional RSUs shall be delivered or made available at the same time and to the same extent as the RSUs to
which they relate or as otherwise determined by the Company. 

  
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	7.	Change in Control 

 Notwithstanding any other provision of the Program or this Plan (and in lieu of
vesting at the times otherwise provided in the Program), if the termination of employment of a Participant occurs upon or within twenty-four (24) months following a Change in Control by reason of (a) termination by the Company for reasons
other than for Cause or (b) termination by the Participant for Good Reason, then all Awards shall become immediately vested and exercisable. 
  

	8.	Additional Definitions 

 For purposes of the Plan, the following capitalized terms shall have the
meanings provided below. 
 “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under Section 12 of the Securities
Exchange Act of 1934, as amended. 
 “Cause” means (i) the willful and continued failure by the Participant to substantially perform his
duties with the Company that has not been cured within 30 days after written demand for substantial performance is delivered by the Company, which demand specifically identifies the manner in which the Participant has not substantially performed
(other than any such failure resulting from the Participant’s incapacity due to physical or mental illness), (ii) the willful engaging by the Participant in conduct which is demonstrably and materially injurious to the Company, monetarily
or otherwise, or (iii) the engaging by the Participant in egregious misconduct involving serious moral turpitude, determined in the reasonable judgment of the Committee. For purposes hereof, no act, or failure to act, on the Participant’s
part shall be deemed “willful” unless done, or omitted to be done, by the Participant not in good faith and without reasonable belief that such action was in the best interest of the Company. Notwithstanding the foregoing, if a Participant
is a party to a Change in Control Agreement, “Cause” with respect to such Participant shall have the meaning given to such term in the Change in Control Agreement. 

“Change in Control” means the first to occur of any of the following: (i) any Person is or becomes the beneficial owner (as defined in Rule
13d-3 under the Exchange Act), directly or indirectly, of securities of Baxter (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its Affiliates) representing 30% or more of the
combined voting power of Baxter’s then outstanding securities, excluding any Person who becomes such a beneficial owner in connection with a merger or consolidation of Baxter or any direct or indirect subsidiary of Baxter with any other
corporation immediately following which the individuals who comprise the Board immediately prior thereto constitute at least a majority of the board of directors of (A) any parent of Baxter or the entity surviving such merger or consolidation
or (B) if there is no such parent, of Baxter or such surviving entity; (ii) the following individuals cease for any reason to constitute a majority of the number of directors then serving: individuals who, on the Grant Date, constitute the
Board and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of directors of
Baxter) whose appointment or election by the Board or nomination for election by Baxter’s shareholders was approved or recommended by a vote of at least two-thirds 

  
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(2/3) of the directors then still in office who either were directors on the Grant Date or whose appointment, election or nomination for election was previously so approved or recommended;
(iii) there is consummated a merger or consolidation of Baxter or any direct or indirect subsidiary of Baxter with any other corporation or other entity, other than a merger or consolidation immediately following which the individuals who
comprise the Board immediately prior thereto constitute at least a majority of the board of directors of (A) any parent of Baxter or the entity surviving such merger or consolidation or (B) if there is no such parent, of Baxter or such
surviving entity; or (iv) the shareholders of Baxter approve a plan of complete liquidation or dissolution of Baxter or there is consummated an agreement for the sale or disposition by Baxter of all or substantially all of Baxter’s assets,
other than a sale or disposition by Baxter of all or substantially all of Baxter’s assets immediately following which the individuals who comprise the Board immediately prior thereto constitute at least a majority of the board of directors of
(A) any parent of Baxter or of the entity to which such assets are sold or disposed or (B) if there is no such parent, of Baxter or such entity. 

“Change in Control Agreement” means an employment agreement, change in control agreement or plan, severance agreement or plan, or other agreement
between the Company and a Participant or Company plan covering a Participant that provides for benefits upon termination for good reason or cause in connection with a change in control of Baxter and that has been approved by the Board or the
Committee. 
 “Good Reason” means the occurrence (without the Participant’s express written consent) of any of the following which occur on
or after a Change in Control: (i) reduction by the Company in the Participant’s annual base salary as in effect on the Grant Date or as the same may be increased from time to time; (ii) the relocation of the Participant’s
principal place of employment to a location more than fifty (50) miles from the Participant’s principal place of employment immediately prior to the Change in Control or the Company’s requiring the Participant to be based anywhere
other than such principal place of employment (or permitted relocation thereof) except for required travel on the Company’s business to an extent substantially consistent with the Participant’s business travel obligations as in effect
immediately prior to the Change in Control; or (iii) the failure by the Company to pay to the Participant any portion of the Participant’s current compensation or to pay to the Participant any portion of an installment of deferred
compensation under any deferred compensation program of the Company, within seven (7) days of the date such compensation is due. Notwithstanding the foregoing, if a Participant is a party to a Change in Control Agreement, “Good
Reason” with respect to such Participant shall have the meaning given to such term in the Change in Control Agreement. 
 “Person” shall have
the meaning given in Section 3(a)(9) of the Securities Exchange Act of 1934, as amended, as modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) Baxter or any of its subsidiaries, (ii) a
trustee or other fiduciary holding securities under an employee benefit plan of Baxter or any of its Affiliates, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) a corporation owned,
directly or indirectly, by the shareholders of Baxter in substantially the same proportions as their ownership of stock of Baxter. 

  
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	9.	Withholding 

 Except as otherwise provided by the Committee, all Awards (including the payout of Awards)
under the Plan are subject to withholding of all applicable taxes, which withholding obligations may be satisfied, with the consent of the Committee, through the surrender of Shares that the Participant already owns or to which a Participant is
otherwise entitled under the Plan; provided, however, with the consent of the Committee, previously-owned Shares that have been held by the Participant or Shares to which the Participant is entitled under the Plan may only be used to satisfy the
minimum tax withholding required by applicable law (or other rates that will not have a negative accounting impact). 
  

	10.	Program Controls 

 Except as specifically provided in the Plan, in the event of any inconsistency between
the Plan and the Program, the Program will control, but only to the extent such Program provisions will not violate the provisions of section 409A of the Code. 

  
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 BAXTER INTERNATIONAL INC. 

French Addendum To 2016 Equity Plan 

Adopted as of March 3, 2016 
  

	1.	PURPOSES OF THIS ADDENDUM 

 This Addendum (the “Addendum”) approved on March 3,
2016, sets out the terms for French Qualified Stock Options and French Qualified Free Shares granted jointly under the Annual Equity Plan (the “Plan”) adopted as of March 3, 2016 by Baxter International Inc. (the
“Company”) to Eligible Participants, residents in France, or otherwise selected by the Committee for participation under this Addendum and the Company incentive compensation program or plan (the “Program”)
identified in the individual grant materials provided to the Eligible Participant. This Addendum is adopted in accordance with Sections 3 “Administration” and 9 “Amendment and Termination” of the Program to benefit from the
specific tax and social security treatment applicable in France to Qualified Option Awards and Qualified Free Share Awards. 
 For the avoidance of doubt,
the present Addendum is not applicable to awards paid in cash and to awards of Performance Shares, Restricted Shares, Performance Units, Cash Incentive Awards or Stock Appreciation Rights. Consequently, dispositions of the Program and/or the Plan
applicable to these are not applicable to Awards made further to the present Addendum. 
 The rules contained in the Program and the Plan will apply to
Awards made under this Addendum, unless specifically stated otherwise. The terms and conditions of the present Addendum are identical to the Plan except as provided below. Words and expressions used in this Addendum and not defined herein shall have
the same meaning as those words and expressions used in the Program and Plan. The additional terms and conditions in this Addendum are to be read in conjunction with the Program and Plan. 

To the extent that the Program and the Plan contradict the provisions set forth hereinafter, the Addendum provisions shall prevail. In addition, to the extent
that the terms and conditions specified in the applicable grant communication letter contradict the provisions set forth hereinafter, the Addendum provisions shall prevail. 
  

	2.	OPTION AWARDS 

  

	2.1.	General 

 The Addendum contains the term of “Qualified Stock Option” which refers to the awards
of Options granted as per Section 6 of the Program jointly with Section 4 of the Plan in accordance with articles L.225-177 to L.225-185 of the French Commercial Code. Consequently, the terms “Stock Option”, “Options”,
“Qualified Stock Option Awards” and “Option Award” herein shall be construed and interpreted accordingly. 
  

	2.2.	Grant of Options 

 Notwithstanding the provisions of the Plan, the following rules shall apply to Options
Awards granted under this Addendum. 

  
 Addendum - 1 

 In no event shall the number of shares of Common Stock subject to outstanding unexercised Options granted
pursuant to this Addendum give right to subscribe shares exceeding one-third (1/3) of the Company’s share capital. The total number of shares of Common Stock that may be granted to Participants under this Addendum shall not exceed 10% of
the Granting Company’s share capital at Grant Date, when Options are over existing shares. Outstanding unvested Full Value Awards shall be treated as shares of Common Stock in order to determine the threshold of 10% of the granting
Company’s share capital. 
 If an Option provides a right to acquired already existing shares / treasury shares, the Company shall procure sufficient
shares to satisfy the Exercise of such Option at least one day prior to the Participant’s having the right to Exercise such Option. Shares acquired by the Participant upon Option Exercise shall be registered in the name of the Participant or
held in an identifiable account. Participants will have the voting and dividend rights attached to the Shares acquired upon Exercise Date as of that date. Upon Exercise, no cash replacement of shares of Common Stock is allowed. 

Any market repurchased shares of Common Stock to be delivered to Eligible Individuals upon exercise of Awards granted hereunder shall be acquired by the
Company at least one (1) day before the applicable vesting date. The Vesting Date designates the date upon which options, in full or in part, become exercisable by the Participant. 

 

	2.3.	Grant Date 

 No Options may be granted under this Addendum: (a) before the end of a period of twenty
(20) trading days following (i) a dividend record date for any dividend or (ii) an agreement by the shareholders of the Company to increase the issued share capital of the Company; (b) within a period of ten (10) trading
days before and after the publication of consolidated accounting results of the Company (e.g., the filing of an Annual Report on Form 10-K); or (c) within a period beginning with the date upon which the Company’s executive officers become
aware of any nonpublic information that, if it were to become publicly known, would reasonably be expected to affect the value of the Company’s shares of Common Stock and ending ten (10) trading days after that information has been
publicized. 
 The Grant Date shall be the date upon which the Committee approves grants to Eligible Individuals or as soon thereafter as possible, ensuring
that the above dispositions are respected. The Grant date shall be stated in the grant documentation letter. 
  

	2.4.	Eligible Individuals 

 Notwithstanding the provisions of Sections 2(k) or 2(l), as applicable, and
Section 4 of the Program or Section 2 of the Plan, Options may only be granted under this Addendum to Eligible Individuals. No Option Award may be made to Eligible Individuals holding more than ten percent (10%) of the issued share
capital in the Company. 
  

	2.5.	Option Price 

 The Option Price shall be the greatest of: (a) the Fair Market Value of a share of
Common Stock on the Grant Date; (b) eighty percent (80%) of the average opening price of a share of Common 

  
 Addendum - 2 

 
Stock over the twenty (20) trading days preceding Grant Date; (c) if treasury shares are used to satisfy exercise of the Options, eighty percent (80%) of the average repurchase
price per share paid by the Company for such treasury shares. The Option Price is stated in the grant documentation letter and is fixed on the Grant Date. 
  

	2.6.	Adjustment to Option Price 

 The number of Options and the Option Price for grants made pursuant to this
Addendum may be adjusted in connection with changes in capital operations described in article L.225-181 of the French Commercial Code so that economic rights are maintained. 
  

	2.7.	Vesting and Exercise of Options 

 Options granted pursuant to this Addendum shall first become
exercisable on the fourth (4th) anniversary of the Grant Date. In case of earlier exercise of Options further notably to Change of Control or Termination of Employment, the Committee may, upon discretionary decision, impose a share sale
restriction to the Participant until the fourth anniversary of grant to secure eligibility to the French stock-option regime. 
  

	2.8.	Termination of Employment 

 Notwithstanding anything to the contrary, no Option may be exercised before
the first anniversary of the Grant Date and shares underlying Options exercised before the fourth anniversary of the Grant Date shall be subject to a share sale restriction until the fourth anniversary of grant. By exception, the Committee may
discretionarily decide that Options may be exercised at an earlier date and / or shares sold at an earlier date. 
 If a Participant’s employment with
the Company terminates after the Participant’s Options become exercisable, the Options will not expire immediately but will remain exercisable. Subject to Section 4.6 of the Plan, and except in the event of a Qualifying Retirement, the
Options will expire ninety days after the Participant’s employment with the Company terminates. If the Participant dies or becomes disabled during the ninety-day period, the Options will expire on the fifth anniversary of the termination date.

 If the employment of a Participant who is at least 65 years of age, or at least 55 years of age with at least 10 years of employment with the Company, is
terminated other than for Cause or by reason of the Participant’s death or disability (a “Qualifying Retirement”) then (i) if the date of such termination is after the calendar year of the Grant Date, the Options shall
continue to vest as provided in Section 2.7, or (ii) if the date of such termination is in the calendar year of the Grant Date, a portion of the Options shall continue to vest as provided in Section 2.7, which portion shall be
determined as follows: (# shares covered by Option award) * (# of months worked in that year, rounded to nearest whole month) / 12. Subject to Section 4.6 of the Plan, the Participant’s Options (whether vesting pursuant to (i) or
(ii) or previously vested) shall expire on the fifth anniversary of the termination date. 
 If the employment of a Participant is terminated due to
death, all Options shall vest immediately and the shares shall be immediately transferable. 

  
 Addendum - 3 

 If the employment of a Participant is terminated due to disability corresponding to the 2nd or 3rd categories of
Article L.341-4 of the French Social Security Code1, then (i) if the date of such termination is after the calendar year of the Grant Date, the Options shall vest immediately, or (ii) if
the date of such termination is in the calendar year of the Grant Date, a portion of the Options shall vest immediately, which portion shall be determined as follows: (# shares covered by Option award) * (# of months worked in that year, rounded to
nearest whole month) / 12. Subject to Section 4.6 of the Plan, such Options will expire on the fifth anniversary of the termination date. The shares acquired upon option exercise shall be immediately transferable. 

If the employment of a Participant is terminated due to disability other than to the 2nd or 3rd categories of Article L.341-4 of the French Social Security
Code, then (i) if the date of such termination is after the calendar year of the Grant Date, the Options shall continue to vest as provided in Section 2.7, or (ii) if the date of such termination is in the calendar year of the Grant
Date, a portion of the Options shall continue to vest as provided in Section 2.7, which portion shall be determined as follows: (# shares covered by Option award) * (# of months worked in that year, rounded to nearest whole month) / 12. Subject
to Section 4.6 of the Plan, such Options will expire on the fifth anniversary of the termination date. 
  

	2.9.	Substitution of SARs for Options – Tandem Awards 

 Neither SARs nor any other incentive may be
substituted for Options granted pursuant to this Addendum. No tandem awards may be made pursuant to this Addendum. 
  

	3.	FULL VALUE AWARDS 

  

	3.1.	Definitions 

 “Full Value Award” means a grant made by Baxter International Inc. to the
Participant of a right to receive one Share in the future at a nil cost, in the form of a Restricted Stock Unit. Such grant can be paid exclusively in shares of Common Stock, is awarded respectively in accordance with Section 7 of the Program,
in accordance with Section 6 of the Plan for Restricted Stock Units, and in accordance with articles L.225-197-1 to L.225-197-6 of the French Commercial Code on Qualified Free Shares Awards. Such grant cannot be subject to conditions,
restrictions and contingencies relating to dividend or dividend equivalent rights and deferred payment or settlement. The purpose of this Addendum is to ensure that grants over shares of Common Stock are in conformity with the applicable French
legislation, and are entitled to the corresponding specific French tax and social security treatment. One (1) award gives right to acquire one (1) share subject to satisfaction of applicable considerations, contingencies, conditions,
restrictions, if any. 
 “Grant Date” means the date on which the Committee designates the Participant eligible to receive a Full Value
Award further to the present Addendum, and specifies the terms and conditions of such Award, including the maximum number of underlying shares, the Vesting and Share Sale Restriction Periods. The Grant Date is stated in the grant communication
letter. 
 “Vesting Date” means the date on which the Participant acquires the shares of Common Stock. The Vesting Date is stated in the
grant communication letter. 

  
 Addendum - 4 

	3.2.	Grant 

 Notwithstanding the provisions of the Plan, the following rules shall apply to Full Value Awards
granted under this Addendum. 
 The total number of shares of Common Stock that may be granted to Participants under this Addendum shall not exceed 10% of
the Granting Company’s share capital at Grant Date. Outstanding unvested Full Value Awards shall be treated as shares of Common Stock in order to determine the threshold of 10% of the granting Company’s share capital. Shares of Common
Stock of the Company to be delivered under the Plan may be market repurchased shares (already existing shares) or newly issued shares. For Full Value Awards granted over already existing shares, corresponding shares shall be repurchased by the
Company at least one day before the applicable Vesting Date. 
 A Full Value Award may not be made to employees and/or Corporate Officers holding more than
10% of the issued share capital in the Company or who, after having received shares under a Full Value Award granted hereunder, would hold more than 10% of the issued share capital in the Company. 

Shares acquired by the Participant upon Vesting Date will be registered in the name of the Participant or be held in an identifiable account. Participants
will have the voting and dividend rights attached to the Shares acquired upon Vesting Date as of that date. 
  

	3.3.	Vesting period / Performance period 

 Notwithstanding anything to the contrary, in relation to Full Value
Awards, the Vesting Date shall not be earlier than the second anniversary of the Grant Date, in any circumstances other than in the event of the death of the Participant or in the event of disability corresponding to the 2nd or 3rd categories of
Article L.341-4 of the French Social Security Code .1 
 Unless otherwise stated in the grant
documentation letter, the Vesting Date for Restricted Stock Units shall be the second anniversary of the Grant Date. The Board of Directors or the Committee reserves the right to reduce or modify the Vesting Date in accordance with and to conform
with any amendments to the French Tax Code and/or to the provisions of the French Commercial Code governing Qualified Free Shares. By exception, the Board or the Committee may discretionarily decide that Vesting Date may occur before the second
(2nd) anniversary of the Grant Date. 
  

	3.4.	Share Sale Restriction Period 

 As of the Vesting Date, shares of Common Stock acquired pursuant to Full
Value Award are subject to a minimum of two (2) year share sale restriction, during which the shares may not be sold (the “Share Sale Restriction Period”). If the Participant leaves the employment of the Company or any Affiliate(s),
at any time after the Vesting Date, the shares acquired shall not be freely transferable before the expiration of the Share Sale Restriction Period. 

 

	1 	For information purposes, please note that 

	-	Second category stands for a disabled person unable to perform any professional activity; and 

	-	 Third category stands for a disabled person unable to perform any professional activity and requiring third party
assistance in order to perform everyday life tasks. 

  
 Addendum - 5 

 By exception, in the event of the Participant’s death, the heirs shall not be subject to the Share Sale
Restriction Period, the shares being freely transferable upon the Participant’s death. By exception, notwithstanding any provision of the Plan and the present Addendum to the contrary, in case of disability corresponding to the 2nd or 3rd
categories of Article L.341-4 of the French Social Security Code1, the Participant is entitled to sell the shares prior to the end of the Share Sale Restriction Period, if any. 

For the avoidance of doubt, if the Participant leaves the employment, the Company or any Affiliate(s), at any time before the term of the Share Sale
Restriction Period, due to his/her Disability other than of second (2nd) or third (3rd) category as defined in Article L.341-4 of the French Social Security Code1, the Participant shall
not be entitled to sale the shares before the second (2nd) anniversary of the Vesting Date. 
 By exception, the Board or the Committee may
discretionarily decide that a Participant shall not be subject to the Share Sale Restriction Period. 
  

	3.5.	Additional Full Value Awards 

 Notwithstanding anything to the contrary in the Program or the Plan, the
Participant shall not be permitted to receive additional Full Value Awards with respect to the Restricted Stock Units based upon the dividends and distributions paid on shares of Common Stock as if each Restricted Stock Unit was a share of Common
Stock. 
  

	3.6.	Termination of employment 

 Notwithstanding anything to the contrary in the Program or the Plan, in case
of Participant’s death, his/her heirs may request the acquisition of the unvested Restricted Stock Units within six (6) months following this event. 

By exception, if the Participant ceases his employment within the Company or any Affiliate(s) due to his disability corresponding to the 2nd or 3rd categories
of Article L.341-4 of the French Social Security Code1, the Award shall vest as follows: (i) if the date of such termination is after the calendar year of the Grant Date, all the RSUs shall pay out within sixty days, or (ii) if the date of
such termination is in the calendar year of the Grant Date a portion of the RSUs shall pay out as provided in (i), which portion shall be determined as follows: (# RSUs awarded) * (# of months worked in that year, rounded to nearest whole month) /
12. 
 Notwithstanding anything to the contrary, if the employment with the Company or any Affiliate(s) is terminated due to disability other than of second
(2nd) or third (3rd) category as defined in Article L.341-4 of the French Social Security Code, (i) if the date of such termination is after the calendar year of the Grant Date, the RSUs will remain eligible for payout on the terms
provided in Section 3.3, or (ii) if the date of such termination is in the calendar year of the Grant Date a portion of the RSUs shall remain eligible for payout on the terms provided in Section 3.3, which portion shall be determined
as follows: (# RSUs awarded) * (# of months worked in that year, rounded to nearest whole month) / 12. 

  
 Addendum - 6 

 Notwithstanding anything to the contrary, if the employment with the Company or any Affiliate(s) is terminated
due to Qualified Retirement, (i) if the date of such termination is after the calendar year of the Grant Date, the RSUs will remain eligible for payout on the terms provided in Section 3.3, or (ii) if the date of such termination is
in the calendar year of the Grant Date a portion of the RSUs shall remain eligible for payout on the terms provided in Section 3.3, which portion shall be determined as follows: (# RSUs awarded) * (# of months worked in that year, rounded to
nearest whole month) / 12. 
  

	4.	Non-Transferability of Awards 

 No Award granted under the Plan shall be transferable other than by will
or the law of descent and distribution. 
  

	4.1.	Change in Control 

 When a tax favourable treatment may be available further to French legislation
(article 163 bis C-1 bis of the French Tax Code), the Committee, upon discretionary decision, may give the choice to French participants, but has no obligation to. When the Company decides to exchange shares with no cash consideration, pursuant to
applicable French legal and tax rules and notably, article L.225-197-1 § III of the French Commercial Code (as amended), then the dispositions of the Plan as well as the periods of Vesting and Share Sale Restriction will remain applicable to
shares or rights received in exchange. 
  

	5.	Tax Withholding 

 Notwithstanding any provision to the contrary, no shares of Common Stock may be used to
satisfy any social security or tax withholding due for Awards granted further to the present Addendum. 
 The Company or its Affiliates shall have the right
to require payment from a Participant to cover any applicable withholding or other employment taxes due with respect to Awards granted hereunder or shall have the right to deduct any applicable withholding or other employment taxes due from other
compensation income paid to the Participant. 
  

	6.	Amendment, Modifications to this Addendum. 

 No modification can be made to this Addendum, or to
outstanding Awards granted hereunder, which is disadvantageous to the Participant or which is in contradiction to the French Commercial Code and French Tax Code provisions, unless the modification is the result of a new law or regulation or any
other obligatory disposition or ruling applied to the Company or any other Subsidiary, having legal, fiscal or social implications. 
 The terms of this
Addendum shall be interpreted in accordance with the relevant provisions set forth by French tax and social laws, as well as the regulations issued by the French tax and social administrations. 

  
 Addendum - 7 

 In the event of any conflict between the provisions of this Addendum and the Plan, the provisions of the Addendum
shall prevail for any Awards made to Participants under this Addendum. 
  

	7.	Additional Definitions 

 “Affiliate” means any entity: 

in which the Company holds, directly or indirectly, at least 10% of the voting rights and / or equity; 

that holds, directly or indirectly, at least 10% of the voting rights and / or equity in the Company; 

in which at least 50% of the equity or voting rights are held, directly or indirectly, by a company which itself holds at least 50% of the Company. 

“Company” means Baxter International Inc., a Delaware corporation. 

“Corporate Officers” mean “Président du Conseil d’Administration” (Chairman of the Board); “Directeur
Général” (Managing Director); “Directeurs Généraux Délégués” (Delegated Managing Directors); Members of the “Directoire”; “Gérant” of a
“Société en Commandite par Actions”; “Président” (if a private individual) d’une Société par Actions Simplifiée”. 

“Eligible Individual” means any employee with a valid employment contract (“contrat de travail”) at Grant Date, and/or Corporate
Officer with or without an employment contract with the Company or Affiliate(s). For the avoidance of doubt, officers and directors of the Company, or of Affiliate(s), are eligible Participants if they have a valid employment contract with one of
these entities, or if they are Corporate Officers. Awards cannot be granted under this Addendum to non-employee members of a “Conseil d’Administration” (the Board), to consultant, to independent agent of the Company or Affiliate(s).

  
 Addendum - 8EX-10.14

 Exhibit 10.14 

PENNYMAC MORTGAGE INVESTMENT TRUST 

2009 EQUITY INCENTIVE PLAN 

RESTRICTED SHARE UNIT 

AWARD AGREEMENT 
 THIS
RESTRICTED SHARE UNIT AWARD AGREEMENT (the “Agreement”), effective as of             , 2016 (the “Grant Date”), is made by and between PennyMac Mortgage
Investment Trust, a Maryland real estate investment trust (the “Trust”), and             (the “Grantee”). 

WHEREAS, the Trust has adopted the PennyMac Mortgage Investment Trust 2009 Equity Incentive Plan (the “Plan”), pursuant to
which the Trust may grant awards representing the right to receive Shares or cash after the lapse of such forfeiture restrictions as may be determined by the Board (such rights hereinafter referred to as “Restricted Share Units”);

 WHEREAS, the Grantee is providing bona fide services to the Trust on the date of this Agreement; 

WHEREAS, the Trust desires to grant to the Grantee the number of Restricted Share Units provided for herein; 

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

Section 1. Grant of Restricted Share Unit Award  

(a) Grant of Restricted Share Units. The Trust hereby grants to the Grantee
            Restricted Share Units on the terms and conditions set forth in this Agreement and as otherwise provided in the Plan. The Trust shall establish a book account in the
Grantee’s name with respect to the Award granted hereby. 
 (b) Incorporation of Plan. The provisions of the Plan are hereby
incorporated herein by reference. Except as otherwise expressly set forth herein, this Agreement shall be construed in accordance with all provisions of the Plan and any capitalized terms not otherwise defined in this Agreement shall have the
definitions set forth in the Plan. The Board shall have final authority to interpret and construe the Plan and this Agreement and to make any and all determinations under them, and its decisions shall be binding and conclusive upon the Grantee and
his legal representative in respect of any questions arising under the Plan or this Agreement. 
 Section 2. Terms and Conditions of
Award 
 The grant of Restricted Share Units provided in Section 1(a) shall be subject to the following terms, conditions and
restrictions: 
 (a) Restrictions. The Restricted Share Units may not be sold, assigned, transferred, pledged, hypothecated or
otherwise disposed of, except by will or the laws of descent and distribution prior to the lapse of restrictions set forth in this Agreement applicable 

  
 1 

 
thereto, as set forth in Section 2(b). The Board may in its discretion, cancel all or any portion of any outstanding restrictions prior to the expiration of the periods provided under
Section 2(b). The period from the date of grant of a Restricted Share Unit to the date it becomes vested and payable shall be referred to herein as the “Restricted Period.” 

(b) Lapse of Restriction. Except as may otherwise be provided herein, the restrictions on transfer set forth in Section 2(a) shall
lapse with respect to thirty-three and one-third percent (33-1/3%) of the Restricted Share Units granted hereunder on each of the first three anniversaries of the Grant Date, so long as the Grantee is providing services to the Trust or an Affiliate
as of the relevant date. 
 (c) Form of Payment. Each Restricted Share Unit granted hereunder shall represent the right to receive one
Share upon the date on which the restrictions applicable to such Restricted Share Unit lapse. 
 (d) Distribution Equivalents. The
Restricted Share Units held by the Grantee on a distribution payment date will be credited with distribution equivalents at such time as distributions, whether in the form of cash, Shares or other property, are paid with respect to the Shares. Any
such distribution equivalents shall be paid on the distribution payment date to the Grantee as though such Restricted Share Units were outstanding Shares. 

(e) Issuance of Certificate. Upon any lapse of restrictions relating to the Restricted Share Units, the Trust shall issue to the Grantee
or the Grantee’s personal representative a share certificate representing such Shares. 
 (f) Termination of Service. In the
event that the Grantee’s service with the Trust and its Affiliates is terminated prior to the lapsing of restrictions with respect to any portion of the Restricted Share Unit Award granted hereunder, such portion of the Award held by the
Grantee shall become free of such restrictions or be forfeited as follows: 
 (i) If such termination of service is (1) because of the
Grantee’s death or Permanent disability or (2) due to a termination of the Grantee’s services by the Trust or one of its Affiliates (other than for Cause), any Restricted Share Units granted hereunder which have not become free of
transfer restrictions shall as of the date of such termination of service become fully vested and free of such transfer restrictions; and 

(ii) If such termination of service is for any reason (including without limitation a voluntary termination of service by the Grantee) other
than as provided in clause (i) above, and Restricted Share Units granted hereunder which have not become free of transfer restrictions shall as of the date of such termination of service be immediately forfeited. 

Restricted Share Units forfeited pursuant to this Agreement shall be transferred to, and reacquired by, the Trust without payment of any
consideration by the Trust, and neither the Grantee nor any of the Grantee’s successors, heirs, assigns or personal representatives shall thereafter have any further rights or interests in such Restricted Share Units. 

  
 2 

 (g) Change in Control. Notwithstanding Section 8(b) of the Plan, the Restricted Share
Unit Award granted hereunder shall not become free of restrictions solely upon the occurrence of a Change in Control; however, if the Grantee’s service is terminated by the Trust and its Affiliates for any reason (other than for Cause) as a
result of or in connection with such Change in Control, then any Restricted Share Units granted hereunder which have not become free of transfer restrictions shall as of the date of such termination of service become fully vested and free of such
transfer restrictions. In addition, if the Shares cease to be readily tradable on an established securities market or exchange as a result of or in connection with such Change in Control, then any Restricted Share Units granted hereunder which have
not become free of transfer restrictions shall as of the date of such Change in Control become fully vested and free of such transfer restrictions. 

(h) Income Taxes. The Grantee shall pay to the Trust promptly upon request, and in any event at the time the Grantee recognizes taxable
income in respect of the Restricted Share Units, an amount equal to the taxes the Trust determines it is required to withhold under applicable tax laws with respect to the Restricted Share Units. Such payment shall be made in the form of cash,
Shares already owned by the Grantee, Shares otherwise then currently issuable under this Agreement, or in a combination of such methods. 

Section 3. Miscellaneous  

(a) Notices. Any and all notices, designations, consents, offers, Acceptances and any other communications provided for herein shall be
given in writing and shall be delivered either personally or by registered or certified mail, postage prepaid, which shall be addressed in the case of the Trust to the Secretary of the Trust at the principal office of the Trust and, in the case of
the Grantee, to the Grantee’s address appearing on the books of the Trust or to the Grantee’s residence or to such other address as may be designated in writing by the Grantee. 

(b) No Right to Continued Service. Nothing in the Plan or in this Agreement shall confer Upon the Grantee any right to continue in the
service of the Trust or any subsidiary or Affiliate of the Trust or shall interfere with or restrict in any way the right of the Trust, which is hereby expressly reserved, to remove, terminate or discharge the Grantee at any time for any reason
whatsoever, with or without Cause. 
 (c) Bound by Plan. By signing this Agreement, the Grantee acknowledges receipt of a copy of the
Plan and has had an opportunity to review the Plan and agrees to be bound by all the terms and provisions of the Plan. 
 (d)
Successors. The terms of this Agreement shall be binding upon and inure to the benefit of the Trust, its successors and assigns, and of the Grantee and the beneficiaries, executors, administrators, heirs and successors of the Grantee. 

(e) Invalid Provisions. The invalidity or unenforceability of any particular provision hereof shall not affect the other provisions
hereof, and this Agreement shall be construed in all respects as if such invalid or unenforceable provision had been omitted. 
 (f)
Modifications. No change, modification or waiver of any provision of this Agreement shall be valid unless the same shall be in writing and signed by the parties hereto. 

  
 3 

 (g) Entire Agreement. This Agreement and the Plan contain the entire agreement and
understanding of the parties hereto with respect to the subject matter contained herein and therein and supersede all prior communications, representations and negotiations in respect thereto. 

(h) Governing Law. This Agreement and the rights of the Grantee hereunder shall be construed and determined in accordance with the laws
of the State of Maryland without giving effect to the conflict of laws principles thereof. 
 (i) Headings. The headings of the
Sections hereof are provided for convenience only and are not to serve as a basis for interpretations or construction, and shall not constitute a part of this Agreement. 

(j) Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. 
 IN WITNESS WHEREOF, the Recipient and the Company have entered into this Award
Agreement as of the Grant Date. 
  

	
	PENNYMAC MORTGAGE INVESTMENT TRUST
	
	 
	Chief Administrative and Legal Officer and
	Secretary

  
 4

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