Document:

Exhibit 10.1

Long-Term Stock Incentive 

Compensation Program 

(Amended and restated as of March 6, 2007)

Edwards Lifesciences Corporation

Table of Contents

	
  Article 1. Establishment,
  Objectives, and Duration

  	
   

  	
  1

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 2. Definitions

  	
   

  	
  1

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 3.
  Administration

  	
   

  	
  5

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 4. Eligibility
  and Participation

  	
   

  	
  6

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 5. Shares
  Subject to the Program and Maximum Awards

  	
   

  	
  6

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 6. Stock Options

  	
   

  	
  7

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 7. Restricted
  Stock

  	
   

  	
  9

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 8. Restricted
  Stock Units

  	
   

  	
  11

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 9. Performance
  Measures

  	
   

  	
  12

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 10. Beneficiary
  Designation

  	
   

  	
  13

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 11. Deferrals

  	
   

  	
  13

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 12. Rights of
  Employees and Contractors

  	
   

  	
  14

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 13. Change in
  Control

  	
   

  	
  14

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 14. Amendment,
  Modification, and Termination

  	
   

  	
  15

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 15. Compliance
  with Applicable Law and Withholding

  	
   

  	
  15

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 16.
  Indemnification

  	
   

  	
  16

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 17. Successors

  	
   

  	
  16

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 18. Legal Construction

  	
   

  	
  17

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

Edwards Lifesciences Corporation

Long-Term Stock Incentive Compensation Program 

(Amended and restated as of March 6, 2007)

Article 1. Establishment, Objectives, and Duration

1.1        Establishment
of the Program. 
Edwards Lifesciences Corporation, a Delaware corporation (hereinafter
referred to as the “Company”), hereby amends and restates the incentive
compensation plan established April 1, 2000 and known as the “Edwards
Lifesciences Corporation Long-Term Stock Incentive Compensation Program”
(hereinafter, as amended and restated, referred to as the “Program”), as set
forth in this document. The Program permits the grant of Nonqualified
Stock Options, Incentive Stock Options, Restricted Stock and Restricted Stock
Units.

The Program became
effective as of April 1, 2000 (the “Effective Date”) and shall remain in effect
as provided in Section 1.3 hereof.

The Program was amended
and restated effective as of July 12, 2000 to clarify the definition of “Subsidiary”
and was subsequently further amended and restated as of May 8, 2002, February
20, 2003, February 17, 2005, February 16, 2006 and March 6, 2007.

1.2        Objectives of the Program.  The objectives of the Program are to optimize
the profitability and growth of the Company through long-term incentives which
are consistent with the Company’s goals and which link the personal interests
of Participants to those of the Company’s stockholders; to provide Participants
with an incentive for excellence in individual performance; and to promote teamwork
among Participants. Awards generally are made in conjunction with services
performed by the Participant within the previous twelve (12) months.

The Program is further
intended to provide flexibility to the Company in its ability to motivate,
attract, and retain the services of Participants who make significant
contributions to the Company’s success and to allow Participants to share in
the success of the Company.

1.3        Duration of the Program.  The Program shall commence on the Effective
Date, as described in Section 1.1 hereof, and shall remain in effect,
subject to the right of the Board to amend or terminate the Program at any time
pursuant to Article 14 hereof, until all Shares subject to it shall have
been purchased or acquired according to the Program’s provisions. However, in
no event may an Award be granted under the Program on or after April 1, 2010.

Article 2.
Definitions

Whenever used in the Program, the following terms shall have the
meanings set forth below, and when the meaning is intended, the initial letter
of the word shall be capitalized:

2.1        “Award”
means, individually or collectively, a grant under this Program of
Nonqualified Stock Options, Incentive Stock Options, Restricted Stock or
Restricted Stock Units.

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2.2        “Award
Agreement” means an agreement entered into by the Company and
each Participant set­ting forth the terms and provisions applicable to Awards
granted under this Program.

2.3        “Board”
or “Board of Directors” means the Board of
Directors of the Company.

2.4        “Change
in Control” of the Company shall mean the occurrence of any
one of the following events:

(a)                            Any “Person”,
as such term is used in Sections 13(d) and 14(d) of the Exchange Act (other
than the Company, any corporation owned, directly or indirectly, by the
stockholders of the Company in substantially the same proportions as their
ownership of stock of the Company, and any trustee or other fiduciary
holding securities under an employee benefit plan of the Company or such
proportionately owned corporation), is or becomes the “beneficial owner”
(as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company representing thirty percent (30%) or more of the
combined voting power of the Company’s then outstanding securities; or

(b)                           During
any period of not more than twenty-four (24) months, individuals who at the
beginning of such period constitute the Board of Directors of the Company, and
any new director (other than a director designated by a Person  who has entered into an agreement with the Company to
effect a transaction described in Sections 2.4(a), 2.4(c), or 2.4(d) of this
Section 2.4) whose election by the Board or nomination for election by the
Company’s stockholders was approved by a vote of at least two-thirds (2/3) of
the directors then still in office who either were directors at the beginning
of the period or whose election or nomination for election was previously so
approved, cease for any reason to constitute at least a majority thereof; or

(c)                            The
consummation of a merger or consolidation of the Company with any other entity,
other than: (i) a merger or consolidation which would result in the voting
securities of the Company outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity) more than sixty percent (60%) of the
combined voting power of the voting securities of the Company or such surviving
entity outstanding immediately after such merger or consolidation; or (ii) a
merger or consolidation effected to implement a recapitalization of the Company
(or similar transaction) in which no Person acquires more than thirty percent
(30%) of the combined voting power of the Company’s then outstanding
securities; or

(d)                           The Company’s
stockholders approve a plan of complete liquidation or dissolution of the
Company, or an agreement for the sale or disposition by the Company of all or
substantially all of the Company’s assets (or any transaction having a similar
effect).

2.5                         “Code”
means the Internal Revenue Code of 1986, as amended from time to time.

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2.6        “Committee”
means the Compensation and Governance Committee or any other committee
appointed by the Board to administer Awards to Participants, as specified in
Article 3 herein.

2.7        “Company”
means Edwards Lifesciences Corporation, a Delaware corporation, and any
successor thereto as provided in Article 16 herein.

2.8        “Contractor”
means an individual providing services to the Company who is not
an Employee or member of the Board, and who does not participate in the
Edwards Lifesciences Corporation Nonemployee Directors and Consultants
Stock Incentive Program.

2.9        “Covered
Employee” means a Participant who is one of the group of “covered
employees,” as defined in the regulations promulgated under Code Section
162(m), or any successor statute.

2.10      “Disability”
shall have the meaning ascribed to such term in the Participant’s governing
long-term disability plan, or if no such plan exists, at the discretion of the
Board.

2.11      “Effective
Date” shall have the meaning ascribed to such term in Section
1.1 hereof.

2.12      “Employee”
means any employee of the Company or of a Subsidiary of the Company. Directors
who are employed by the Company shall be considered Employees under this
Program.

2.13      “Exchange
Act” means the Securities Exchange Act of 1934, as amended
from time to time, or any successor act thereto.

2.14      “Fair
Market Value” means, at any date, the closing sale price on
the principal securities exchange on which the Shares are traded on the last
previous day on which a sale was reported.

2.15      “Incentive
Stock Option” or “ISO” means an
option to purchase Shares granted under Article 6 herein and which is
designated as an Incentive Stock Option and which is intended to meet the
requirements of Code Section 422.

2.16      “Insider”
shall mean an individual who is, on the relevant date, an officer, director, or
beneficial owner of more than ten percent (10%) of any class of the Company’s
equity securities that is registered pursuant to Section 12 of the
Exchange Act, all as defined under Section 16 of the Exchange Act.

2.17      “Nonqualified
Stock Option” or “NQSO” means
an option to purchase Shares granted under Article 6 herein and which
is not intended to meet the requirements of Code Section 422.

2.18      “Option”
means an Incentive Stock Option or a Nonqualified Stock Option, as
described in Article 6 herein.

2.19      “Option
Price” means the price at which a Share may be purchased by a
Participant pursuant to an Option.

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2.20      “Participant”
means an Employee or Contractor who has been selected to receive an Award or
who has outstanding an Award granted under the Program.

2.21      “Performance-Based
Exception” means the performance-based exception from the tax
deductibility limitations of Code Section 162(m) applicable to compensation
payable to Covered Employees.

2.22      “Period
of Restriction” means the period during which the transfer of
Shares of Restricted Stock is limited in some way (based on the passage of
time, the achievement of performance goals, or upon the occurrence of other
events as determined by the Committee, in its discretion), and the Shares are
subject to a substantial risk of forfeiture, as provided in Article 7 herein.

2.23      “Restricted
Stock” means an Award granted to a Participant pursuant to
Article 7 herein.

2.24      “Restricted
Stock Units” means an Award granted to a Participant pursuant
to Article 8 herein.

2.25      “Retirement”
means, unless otherwise defined in the applicable Award Agreement, any
termination of an Employee’s employment or a Contractor’s service after age
fifty-five (55) other than due to death, Disability or, with respect to Awards
made after May 8, 2002, Cause, provided that such Employee or Contractor has at
least a combined ten (10) years of service with the Company and Baxter
International Inc. A Participant’s number of years of service with the Company
and Baxter International Inc. shall be determined by calculating the number of
complete twelve-month (12) periods of employment from the Participant’s
original date of hire as an Employee or Contractor with the Company or Baxter
International Inc. to the Participant’s date of employment or service
termination.  Employment or service with
Baxter International Inc. shall be included for purposes of determining
qualification for Retirement only to the extent that such employment or service
immediately, and without any break, precedes employment or service with the
Company.  For purposes of this
definition, unless defined otherwise in the applicable Award Agreement, “Cause”
means: (a) a Participant’s willful and continued failure to substantially
perform his duties with the Company or a Subsidiary (other than any such
failure resulting from Disability); (b) a Participant’s willfully engaging in
conduct that is demonstrably and materially injurious to the Company or a
Subsidiary, monetarily or otherwise; or (c) a Participant’s having been
convicted of a felony. For the purpose of determining “Cause,” no act, or
failure to act, on a 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 the action or omission was in the best interests of the
Company or a Subsidiary.

2.26      “Shares” means the shares of
common stock of the Company.

2.27      “Subsidiary”
means any business, whether or not incorporated, in which the Company
beneficially owns, directly or indirectly through another entity or entities,
securities or interests representing more than fifty percent (50%) of the
combined voting power of the voting securities or voting interests of such
business.

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Article 3. Administration

3.1        General.  The Program shall be administered by the
Compensation and Governance Committee of the Board, or by any other Committee
appointed by the Board, which shall consist of two (2) or more nonemployee
directors within the meaning of the rules promulgated by the Securities and
Exchange Commission under Section 16 of the Exchange Act who also qualify as
outside directors within the meaning of Code Section 162(m) and the related
regulations under the Code, except as otherwise determined by the Board. Any
Committee administering the Program shall be comprised entirely of directors.
The members of the Committee shall be appointed from time to time by, and shall
serve at the sole discretion of, the Board.

The Committee shall have
the authority to delegate administrative duties to officers, Employees, or
directors of the Company; provided, however, that the Committee shall not be
able to delegate its authority with respect to: (i) granting Awards to
Insiders; (ii) granting Awards that are intended to qualify for the
Performance-Based Exception; and (iii) certifying that any performance goals
and other material terms attributable to Awards that are intended to qualify
for the Performance-Based Exception have been satisfied.

3.2        Authority of the Committee.  Except as limited by law or by the
Certificate of Incorporation or Bylaws of the Company, and subject to the
provisions of the Program, the Committee shall have the authority to: (a)
interpret the provisions of the Program, and prescribe, amend, and rescind
rules and procedures relating to the Program; (b) grant Awards under the
Program, in such forms and amounts and subject to such terms and conditions as
it deems appropriate, including, without limitation, Awards which are made in
combination with or in tandem with other Awards (whether or not
contemporaneously granted) or compensation or in lieu of current or deferred
compensation; (c) subject to Article 14, modify the terms of, cancel and
reissue, or repurchase outstanding Awards; (d) prescribe the form of agreement,
certificate, or other instrument evidencing any Award under the Program; (e)
correct any defect or omission and reconcile any inconsistency in the Program
or in any Award hereunder; (f) to design Awards to satisfy requirements to make
such Awards tax-advantaged to Participants in any jurisdiction or for any other
reason that the Company desires; and (g) make all other determinations and take
all other actions as it deems necessary or desirable for the administration of
the Program; provided, however, that no outstanding Option will be amended to
lower the exercise price or will be canceled for the purpose of reissuing such
Option to a Participant at a lower exercise price (other than, in both cases,
pursuant to Section 5.4) without the approval of the Company’s stockholders.
The determination of the Committee on matters within its authority shall be
conclusive and binding on the Company and all other persons. The Committee
shall comply with all applicable laws in administering the Plan. As permitted
by law (and subject to Section 3.1 herein), the Committee may delegate its
authority as identified herein.

3.3        Decisions Binding.  All determinations and decisions made by the
Committee pursuant to the provisions of the Program and all related orders and
resolutions of the Board shall be final, conclusive, and binding on all
persons, including the Company, its stockholders, directors, Employees,
Contractors, Participants, and their estates and beneficiaries.

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Article 4. Eligibility and Participation

4.1        Eligibility.  Persons eligible to participate in this
Program shall include all Employees and Contractors. Directors who are not
Employees of the Company shall not be eligible to participate in the Program.

4.2        Actual Participation.  Subject to the provisions of the Program, the
Committee may, from time to time, select from all eligible Employees and
Contractors those to whom Awards shall be granted and shall determine the nature
and amount of each Award.

Article 5. Shares Subject to the Program and
Maximum Awards

5.1        Number
of Shares Available for Grants.  Subject to adjustment as provided in
Section 5.4 herein, the number of Shares hereby reserved for delivery to
Participants under the Program shall be eighteen million eight hundred thousand
(18,800,000) Shares. No more than one million (1,000,000) Shares reserved for
issuance under the Program may be granted in the form of Shares of Restricted
Stock or Restricted Stock Units. The Committee shall determine the appropriate
methodology for calculating the number of Shares issued pursuant to the
Program. The following rules shall apply to grants of such Awards under
the Program:

(a)                            Options: The maximum aggregate number of Shares that may be
granted in the form of Options in any one (1) fiscal year to any one (1)
Participant shall be one million (1,000,000).

(b)                           Restricted Stock and Restricted Stock Units: The maximum
aggregate number of Shares that may be granted in the form of Restricted
Stock and Restricted Stock Units in any one (1) fiscal year to any one (1)
Participant shall be two hundred thousand (200,000).

5.2        Type of Shares.  Shares issued under the Program in connection
with Stock Options or Restricted Stock Units may be authorized and unissued
Shares or issued Shares held as treasury Shares. Shares issued under the
Program in connection with Restricted Stock shall be issued Shares held as
treasury Shares; provided, however, that authorized and unissued Shares may be issued
in connection with Restricted Stock to the extent that the Committee determines
that past services of the Participant constitute adequate consideration for at
least the par value thereof.

5.3        Reuse of Shares.

(a)                            General. In the event of the expiration or termination (by
reason of forfeiture, expiration, cancellation, surrender, or otherwise) of any
Award under the Program, that number of Shares that was subject to the Award
but not delivered shall again be available as Awards under the Program.

(b)                           Restricted Stock. In the event that Shares are delivered
under the Program as Restricted Stock and are thereafter forfeited or
reacquired by the Company 

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pursuant to rights
reserved upon the grant thereof, such forfeited or reacquired Shares shall
again be available as Awards under the Program.

(c)                            Limitation. Notwithstanding the provisions of Sections
5.3(a) or 5.3(b) above, the following Shares shall not be available for
reissuance under the Program: (i) Shares which are withheld from any Award
or payment under the Program to satisfy tax withholding obligations; (ii)
Shares which are surrendered to fulfill tax obligations incurred under the
Program; and (iii) Shares which are surrendered in payment of the Option
Price upon the exercise of an Option.

5.4        Adjustments in Authorized Shares.  In the event of any change in corporate
capitalization, such as a stock split, or a corporate transaction, such as
any merger, consolidation, separation, including a spin-off, or other
distribution of stock or property of the Company, any reorganization (whether
or not such reorganization comes within the definition of such term in Code
Section 368) or any partial or complete liquidation of the Company, such
adjustment shall be made in the number and class of Shares which may be
delivered under Section 5.1, in the number and class of and/or price of Shares
subject to outstanding Awards granted under the Program, and in the Award
limits set forth in Section 5.1, as shall be determined to be appropriate and
equitable by the Committee, in its sole discretion, to prevent dilution or
enlargement of rights; provided, however, that the number of Shares subject to
any Award shall always be a whole number. In a stock-for-stock acquisition of
the Company, the Committee may, in its sole discretion, substitute securities
of another issuer for any Shares subject to outstanding Awards.

Article 6. Stock Options

6.1        Grant
of Options.  Subject to
the terms and provisions of the Program, Options may be granted to Participants
in such number, and upon such terms, and at any time and from time to time
as shall be determined by the Committee. If all or any portion of the exercise
price or taxes incurred in connection with the exercise are paid by delivery
(or, in the case of payment of taxes, by withholding of Shares) of other Shares
of the Company, the Options may provide for the grant of replacement Options.

6.2        Award Agreement.  Each Option grant shall be evidenced by an
Award Agreement that shall specify the Option Price, the duration of the Option,
the number of Shares to which the Option pertains, and such other provisions as
the Committee shall determine. The Award Agreement also shall specify whether
the Option is intended to be an ISO or an NQSO.

6.3        Option Price.  The Option Price for each grant of an Option
under this Program shall be at least equal to one hundred percent (100%)
of the Fair Market Value of a Share on the date the Option is granted.

6.4        Duration of Options.  Each Option granted to a Participant on or
after February 16, 2006 shall expire at such time, not later than the seventh (7th)
anniversary date of its grant, as the Committee shall determine.

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6.5        Exercise of Options.  Options granted under this Article
6 shall be exercisable at such times and be subject to such restrictions
and conditions as the Committee shall in each instance approve, which need not
be the same for each grant or for each Participant; provided, however, that
each option shall become exercisable over a minimum period of two (2) years
measured from the date of grant of the option.

6.6        Payment. 
Options granted under this Article 6 shall be exercised by the delivery
of a written notice (or such other form of notice as the Company may specify)
of exercise to the Company, setting forth the number of Shares with respect to
which the Option is to be exercised, accompanied by full payment for the Shares
(or a satisfactory “cashless exercise” notice).

The Option Price upon
exercise of any Option shall be payable to the Company in full either: (a) in
cash or its equivalent; (b) by tendering previously acquired Shares (by either
actual delivery or attestation) having an aggregate Fair Market Value at the
time of exercise equal to the total Option Price (provided that the Shares
which are tendered must have been held by the Participant for at least six (6)
months, or such shorter or longer period, if any, as is necessary to avoid
variable accounting treatment); (c) by a cashless exercise, as permitted under
Federal Reserve Board’s Regulation T, subject to applicable securities law
restrictions and such procedures and limitations as the Company may specify
from time to time, (d) by any other means which the Committee determines to be
consistent with the Program’s purpose and applicable law, or (e) by a
combination of two or more of (a) through (d).

Subject to any governing
rules or regulations, including cashless exercise procedures, as soon as
practicable after receipt of a notification of exercise and full payment (or a
satisfactory “cashless exercise” notice), the Company shall cause to be issued
and delivered to the Participant, in certificate form or otherwise, evidence of
the Shares purchased under the Option(s).

6.7        Restrictions on Share Transferability.  The Committee may impose such restrictions on
any Shares acquired pursuant to the exercise of an Option granted under this
Article 6 as it may deem advisa­ble, including, without limitation,
restrictions under applicable federal securities laws, under the requirements
of any stock exchange or market upon which such Shares are then listed
and/or traded, and under any blue sky or state securities laws applicable
to such Shares.

6.8        Termination of Employment or Service.  Each Participant’s Option Award Agreement
shall set forth the extent to which the Participant shall have the right to
exercise the Option following termination of the Participant’s employment with
the Company or service to the Company as a Contractor. Such provisions shall be
determined in the sole discretion of the Committee, shall be included in the
Award Agreement entered into with each Participant, need not be uniform among
all Options issued pursuant to this Article 6, and may reflect distinctions
based on the reasons for termination.

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6.9        Nontransferability of Options.

(a)                            Incentive Stock Options. 
No ISO granted under the Program may be sold, transferred, pledged,
assigned, or otherwise alienated or hypothecated, other than by will or by the
laws of descent and distribution. Further, all ISOs granted to a Participant
under the Program shall be exercisable during his or her lifetime only by such
Participant.

(b)                           Nonqualified Stock Options. 
Except as otherwise provided in a Participant’s Award Agreement, no NQSO
granted under this Article 6 may be sold, transferred, pledged, assigned,
or otherwise alienated or hypothecated, other than by will or by the laws of
descent and distribution. Further, except as otherwise provided in a
Participant’s Award Agreement, all NQSOs granted to a Participant under this
Article 6 shall be exercisable during his or her lifetime only by such
Participant.

6.10      Substitution of Cash.  Unless otherwise provided in a Participant’s
Award Agreement, and notwithstanding any provision in the Program to the
contrary (including but not limited to Section 14.2), in the event of a Change
in Control in which the Company’s stockholders holding Shares receive
consideration other than shares of common stock that are registered under
Section 12 of the Exchange Act, the Committee shall have the authority to
require that any outstanding Option be surrendered to the Company by a
Participant for cancellation by the Company, with the Participant receiving in
exchange a cash payment from the Company within ten (10) days of the Change in
Control. Such cash payment shall be equal to the number of Shares under Option,
multiplied by the excess, if any, of the greater of (i) the highest per Share
price offered to stockholders in any transaction whereby the Change in Control
takes place, or (ii) the Fair Market Value of a Share on the date the Change in
Control occurs, over the Option Price.

Article 7. Restricted Stock

7.1        Grant
of Restricted Stock. 
Subject to the terms and provisions of the Program, the Committee, at
any time and from time to time, may grant Shares of Restricted Stock to
Participants in such amounts as the Committee shall determine.

7.2        Restricted Stock Agreement.  Each Restricted Stock grant shall be
evidenced by a Restricted Stock Award Agreement that shall specify the
Period(s) of Restriction, the number of Shares of Restricted Stock granted, and
such other provisions as the Committee shall determine.  The Period of Restriction shall be a minimum
of three (3) years measured from the grant date of the Restricted Stock.

7.3        Restriction on Transferability.  Except as provided in this Article 7,
the Shares of Restricted Stock granted herein may not be sold, transferred,
pledged, assigned, or otherwise alienated or hypothecated until the end of the
applicable Period of Restriction established by the Committee and specified in
the Restricted Stock Award Agreement, or upon earlier satisfaction of any other
conditions, as specified by the Committee in its sole discretion and set forth
in the Restricted Stock Award Agreement. All rights with respect to the
Restricted Stock granted to a Participant under the Program shall be available
during his or her lifetime only to such Participant.

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7.4        Other Restrictions.  Subject to Article 9 herein, the Committee
shall impose such other conditions and/or restrictions on any Shares of
Restricted Stock granted pursuant to the Program as it may deem advisable
including, without limitation, any or all of the following:

(a)                            A
required period of employment or service as a Contractor with the Company, as
determined by the Committee, prior to the vesting of Shares of Restricted
Stock.

(b)                           A
requirement that Participants forfeit (or in the case of Shares sold to a
Participant, resell to the Company at his or her cost) all or a part of Shares
of Restricted Stock in the event of termination of his or her employment or
service as a Contractor during the Period of Restriction.

(c)                            A
prohibition against employment of Participants holding Shares of Restricted
Stock by any competitor of the Company, against such Participants’
dissemination of any secret or confidential information belonging to the
Company, or the solicitation by Participants of the Company’s employees for
employment by another entity.

Shares of Restricted
Stock awarded pursuant to the Program shall be registered in the name of the
Participant and, if such Shares are certificated, in the sole discretion of the
Committee, may be deposited in a bank designated by the Committee or with the
Company. The Committee may require a stock power endorsed in blank with respect
to Shares of Restricted Stock whether or not certificated.

Except as otherwise
provided in this Article 7, Shares of Restricted Stock covered by each
Restricted Stock grant made under the Program shall become freely transferable
(subject to any restrictions under any applicable securities law) by the
Participant after the last day of the applicable Period of Restriction.

7.5        Voting Rights.  Unless the Committee determines otherwise,
Participants holding Shares of Restricted Stock issued hereunder shall be
entitled to exercise full voting rights with respect to those Shares during the
Period of Restriction.

7.6        Dividends and Other Distributions.  Unless the Committee determines otherwise,
during the Period of Restriction, Participants holding Shares of Restricted
Stock issued hereunder shall be entitled to regular cash dividends paid with
respect to such Shares. The Committee may apply any restrictions to the
dividends that the Committee deems appropriate. Without limiting the generality
of the preceding sentence, if the grant or vesting of Shares of Restricted
Stock  is designed to comply with the requirements of the
Performance-Based Exception, the Committee may apply any restrictions it deems
appropriate to the payment of dividends declared with respect to such Shares of
Restricted Stock, such that the dividends and/or the Shares of Restricted Stock
maintain eligibility for the Performance-Based Exception.

7.7        Termination of Employment or Service.  Each Restricted Stock Award Agreement shall
set forth the extent to which the Participant shall have the right to vest in
previously unvested Shares of Restricted Stock following termination of the
Participant’s employment with the Company or service to the Company as a
Contractor. Such provisions shall be determined in the sole discretion 

 10
 

of the Committee, shall be included in the Award
Agreement entered into with each Participant, need not be uniform among all
Shares of Restricted Stock issued pursuant to the Program, and may reflect
distinctions based on the reasons for termination.

Article 8. Restricted Stock Units

8.1. Restricted Stock Units
Awards.  Subject to the
terms and conditions of the Program, the Committee, at any time and from time
to time, may issue Restricted Stock Units which entitle the Participant to
receive the Shares underlying those units following the lapse of specified
restrictions (whether based on the achievement of designated performance goals
or the satisfaction of specified services or upon the expiration of a
designated time period following the vesting of the units).

8.2. Restricted Stock Units Award
Agreement.  Each
Restricted Stock Units award shall be evidenced by a Restricted Stock Units
Award Agreement that shall specify the vesting restrictions, the number of
Shares subject to the Restricted Stock Units award, and such other provisions
as the Committee shall determine. 
Restricted Stock Units shall vest over a minimum period of three (3)
years measured from the grant date of the award.

8.3. Restrictions.
The Committee shall impose such other conditions and/or restrictions on the
issuance of any Shares under the Restricted Stock Units granted pursuant to the
Program as it may deem advisable including, without limitation, any or all of
the following:

(a)                                A
required period of service with the Company, as determined by the Committee,
prior to the issuance of Shares under the Restricted Stock Units award.

(b)                               A
requirement that the Restricted Stock Units award be forfeited in whole or in
part in the event of termination of the Participant’s employment or service as
a Contractor during the vesting period.

(c)                                A
prohibition against employment of Participants holding Restricted Stock Units
by any competitor of the Company, against such Participants’ dissemination of
any secret or confidential information belonging to the Company, or the
solicitation by Participants of the Company’s employees for employment by
another entity.

Except as otherwise
provided in this Article 8, Shares subject to Restricted Stock Units under the
Program shall be freely transferable (subject to any restrictions under
applicable securities law) by the Participant after receipt of such shares.

8.4. Stockholder Rights.  Participants holding Restricted Stock Units
issued hereunder shall not have any rights with respect to Shares subject to
the award until the award vests and the Shares are issued hereunder.  However, dividend-equivalent units may be
paid or credited, either in cash or in actual or phantom Shares, on outstanding
Restricted Stock Units awards, subject to such terms and conditions as the
Committee may deem appropriate.

 11
 

8.5. Termination of Employment or
Service.  Each
Restricted Stock Units Award Agreement shall set forth the extent to which the
Participant shall have the right to vest in previously unvested Shares subject
to the Restricted Stock Units award following termination of the Participant’s
employment with the Company or service to the Company as a Contractor.  Such provisions shall be determined in the
sole discretion of the Committee, shall be included in the Award Agreement
entered into with each Participant, need not be uniform among all Restricted
Stock Unit awards issued pursuant to the Program, and may reflect distinctions
based on the reasons for termination.

Article 9. Performance Measures

Unless and until the Board proposes for stockholder vote and
stockholders approve a change in the general performance measures set forth in
this Article 9, the attainment of which may determine the degree of payout
and/or vesting with respect to Awards to Covered Employees which are designed
to qualify for the Performance-Based Exception, the performance measure(s) to
be used for purposes of such grants shall be chosen from among:

(i)                               return
measures (including, but not limited to, return on assets, capital, investment,
equity or sales);

(ii)                          earnings
per share;

(iii)                       net income
(before or after taxes) or operating income;

(iv)                      earnings
before interest, taxes, depreciation and amortization or operating income
before depreciation and amortization;

(v)                         sales or
revenue targets;

(vi)                      market to book
value ratio

(vii)                   cash flow or
free cash flow (cash flow from operations less capital expenditures);

(viii)                market share;

(ix)                        cost
reduction goals;

(x)                           budget
comparisons;

(xi)                          implementation,
completion or progress of projects, processes, products or product-lines
strategic or critical to the Company’s business operations;

(xii)                     measures of
customer satisfaction;

(xiii)                  share price
(including, but not limited to, growth measures and total shareholder return);

(xiv)                 working capital;

 12
 

(xv)                    economic value
added;

(xvi)                 percentage of
sales generated by new products;

(xvii)              progress of research
and development projects or milestones;

(xviii)             growth in sales of
products or product-lines;

(ix)                          any
combination of, or a specified increase in, any of the foregoing; and

(x)                           the
formation of joint ventures, research and development collaborations, marketing
or customer service collaborations, or the completion of other corporate
transactions intended to enhance the Company’s revenue or profitability or expand
the Company’s customer base.

Subject to the terms of
the Program, each of these measures shall be defined by the Committee on a
corporation, subsidiary, group or division basis or in comparison with peer
group performance, and may include or exclude specified extraordinary items, as
determined by the Company’s auditors.

The Committee shall have
the discretion to adjust the determinations of the degree of attainment of
the preestablished performance goals or the size of Awards; provided, however,
that Awards which are designed to qualify for the Performance-Based Exception,
and which are held by a Covered Employee, may not be adjusted upward in terms
of either the degree of goal attainment or size (but the Committee shall retain
the discretion to adjust the degree of goal attainment or the size of the
Awards downward).

In the event that
applicable tax and/or securities laws change to permit Committee discretion to
alter the governing performance measures without obtaining stockholder approval
of such changes, the Committee shall have sole discretion to make such changes
without obtaining stockholder approval. In addition, in the event that the
Committee determines that it is advisable to grant Awards that shall not
qualify for the Performance-Based Exception, the Committee may make such grants
without satisfying the requirements of Code Section 162(m).

Article 10. Beneficiary Designation

Each Participant under the Program may, from time to time, name any
beneficiary or beneficiaries (who may be named contingently or successively) to
whom any benefit under the Program is to be paid in case of his or her death
before he or she receives any or all of such benefit. Each such designation
shall revoke all prior designations by the same Participant, shall be in a
form prescribed by the Company, and will be effective only when filed by the
Participant in writing with the Company during the Participant’s lifetime. In
the absence of any such designation, benefits remaining unpaid at the
Participant’s death shall be paid to the Participant’s estate.

Article 11. Deferrals

The Committee may permit or require a Participant to defer such
Participant’s receipt of the payment of cash or the delivery of Shares that
would otherwise be due to such Participant by virtue 

 13
 

of the exercise of an Option or the lapse or waiver of
restrictions with respect to Restricted Stock or Restricted Stock Units.  If any such deferral election is required or
permitted, the Committee shall, in its sole discretion, establish rules and
procedures for such payment deferrals which shall be consistent with the
requirements of Code Section 409A and the Treasury regulations and rulings
promulgated thereunder.

Article 12. Rights of Employees and Contractors

12.1      Employment.
Nothing in the Program or any Award Agreement shall interfere with or limit in
any way the right of the Company to terminate at any time any Participant’s
employment or service to the Company as a Contractor, nor confer upon any
Participant any right to continue in the employ of the Company or to provide
services to the Company as a Contractor.

12.2      Participation. No Employee or Contractor
shall have the right to be selected to receive an Award under this Program, or,
having been so selected, to be selected to receive a future Award.

Article 13. Change in Control

Except as may otherwise be provided in a Participant’s Award Agreement,
upon the occurrence of a Change in Control, unless otherwise specifically
prohibited under applicable laws or by the rules and regulations of any
governing governmental agencies or national securities exchanges:

(a)                            Any
and all Options granted hereunder shall become immediately exercisable, and, if
granted before May 8, 2002, shall remain exercisable throughout their entire
term;

(b)                           Any
restriction periods and restrictions imposed on Shares of Restricted Stock and
Restricted Stock Units that are not performance-based shall lapse;

(c)                            The
vesting of all performance-based Awards denominated in Shares such as
performance-based Restricted Stock and Restricted Stock Units shall be
accelerated as of the effective date of the Change in Control, and there shall
be paid out to Participants within thirty (30) days following the effective
date of the Change in Control a pro rata number of Shares based upon an assumed
achievement of all relevant targeted performance goals and upon the length of
time within the Performance Period(s) which has elapsed prior to the Change in
Control; provided, however, that if an Option or Share of Restricted Stock or
Restricted Stock Unit granted after May 8, 2002 becomes exercisable or vests
only after either (i) a minimum fixed period of employment or service (the
duration of which is determined by the Committee at the time of the grant of
the Award) or (ii) the earlier achievement of a performance-related goal, its
exercisability or vesting shall not automatically accelerate in full in
accordance with Article 13 (a) or (b) above, but may accelerate if and to the
extent provided in the applicable Award Agreement.

 14
 

Article 14. Amendment, Modification, and
Termination

14.1      Amendment,
Modification, and Termination. Subject to the terms of the
Program, including Section 14.2, the Board may at any time and from time
to time, alter, amend, suspend or terminate the Program in whole or in
part.  However, stockholder approval
shall be required for any amendment of the Program that (a) materially
increases the number of Shares available for issuance under the Program (other
than pursuant to Article 5.4), (b) expands the type of awards available under
the Program, (c) materially expands the class of participants eligible to
receive Awards under the Program, (d) materially extends the term of the
Program, (e) materially changes the method of determining the Option Price
under the Program or (f) deletes or limits any provision of the Program
prohibiting the repricing of Options. 
The Committee may amend Awards previously granted under the Program.

14.2      Awards Previously Granted. Notwithstanding
any provision of the Program or of any Award Agreement to the contrary (but
subject to Section 6.10 hereof), no termination, amendment, or
modification of the Program or amendment of an Award previously granted under
the Program shall adversely affect in any material way any Award
previously granted under the Program, without the express consent of the
Participant holding such Award.

Article 15. Compliance with Applicable Law and
Withholding

15.1      General.  The granting of Awards and the issuance of
Shares under the Program shall be subject to all applicable laws, rules, and
regulations, and to such approvals by any governmental agencies or national
securities exchanges as may be required. Notwithstanding anything to the
contrary in the Program or any Award Agreement, the following shall apply:

(a)                            The
Company shall have no obligation to issue any Shares under the Program if such
issuance would violate any applicable law or any applicable regulation or
requirement of any securities exchange or similar entity.

(b)                           Prior
to the issuance of any Shares under the Program, the Company may require a
written statement that the recipient is acquiring the Shares for investment and
not for the purpose or with the intention of distributing the Shares and that
the recipient will not dispose of them in violation of the registration requirements
of the Securities Act of 1933.

(c)                            With
respect to any person who is subject to Section 16(a) of the Exchange Act, the
Committee may, at any time, add such conditions and limitations to any
incentive or payment under the Program or implement procedures for the
administration of the Program which it deems necessary or desirable to comply
with the requirements of Rule 16b-3 of the Exchange Act.

(d)                           If, at
any time, the Company, determines that the listing, registration, or
qualification (or any updating of any such document) of any Award, or the
Shares issuable pursuant thereto, is necessary on any securities exchange or
under any federal or state securities or blue sky law, or that the consent or
approval of any governmental regulatory body is necessary or desirable as a
condition of, or in 

 15
 

connection with, any
Award, the issuance of Shares pursuant to any Award, or the removal of any
restrictions imposed on Shares subject to an Award, such Award shall not be
granted and the Shares shall not be issued or such restrictions shall not be
removed, as the case may be, in whole or in part, unless such listing,
registration, qualification, consent, or approval shall have been effected or
obtained free of any conditions not acceptable to the Company.

15.2      Securities Law Compliance.  With respect to Insiders, transactions under
this Program are intended to comply with all applicable conditions of
Rule 16b-3 or its successors under the 1934 Act. To the extent
any provision of the Program or action by the Committee or the Board fails to
so comply, it shall be deemed null and void, to the extent permitted by law and
deemed advisable by the Board.

15.3      Tax Withholding.  The Company shall have the power and the
right to deduct or withhold, or require a Participant to remit to the Company,
an amount sufficient to satisfy federal, state, and local taxes, domestic or
foreign, required by law or regulation to be withheld with respect to any
taxable event arising as a result of this Program.

15.4      Share Withholding.  Awards payable in Shares may provide that
with respect to withholding required upon any taxable event arising thereunder,
Participants may elect to satisfy the withholding requirement, in whole or in
part, by having the Company withhold Shares to satisfy their withholding tax
obligations; provided that Participants may only elect to have Shares withheld
having a Fair Market Value on the date the tax is to be determined equal to or
less than the minimum withholding tax which could be imposed on the
transaction. All elections shall be irrevocable, made in writing, signed by the
Participant, and shall be subject to any restrictions or limitations, including
prior Committee approval, that the Committee, in its sole discretion, deems
appropriate.

Article 16. Indemnification

Each person who is or shall have been a member of the Committee, or of
the Board, shall be indemnified and held harmless by the Company against and
from any loss, cost, liability, or expense that may be imposed upon or
reasonably incurred by him or her in connection with or resulting from any
claim, action, suit, or proceeding to which he or she may be a party or in
which he or she may be involved by reason of any action taken or failure to act
under the Program and against and from any and all amounts paid by him or her
in settlement thereof, with the Company’s approval, or paid by him or her in
satisfaction of any judgment in any such action, suit, or proceeding against
him or her, provided he or she shall give the Company an opportunity, at its
own expense, to handle and defend the same before he or she undertakes
to handle and defend it on his or her own behalf. The foregoing right of
indemnification shall not be exclusive of any other rights of indemnification
to which such persons may be entitled under the Company’s Articles of
Incorporation or Bylaws, as a matter of law, or otherwise, or any power that
the Company may have to indemnify them or hold them harmless.

Article 17. Successors

All obligations of the Company under the Program with respect to Awards
granted hereunder shall, to the extent legally permissible, be binding on any
successor to the Company, whether the 

 16
 

existence of such successor is the result of a direct
or indirect purchase, merger, consolidation, or otherwise, of all or substantially
all of the business and/or assets of the Company.

Article 18. Legal Construction

18.1      Gender
and Number.  Except
where otherwise indicated by the context, any masculine term used herein also
shall include the feminine; the plural shall include the singular and the
singular shall include the plural.

18.2      Severability. 
In the event any provision of the Program shall be held illegal or
invalid for any reason, the illegality or invalidity shall not affect the
remaining parts of the Program, and the Program shall be construed and enforced
as if the illegal or invalid provision had not been included.

18.3      Governing Law.  To the extent not preempted by federal law,
the Program, and all Award or other agreements hereunder, shall be construed in
accordance with and governed by the laws of the state of Delaware without
giving effect to principles of conflicts of laws.

 17Exhibit
10.2

EDWARDS LIFESCIENCES CORPORATION

2001 EMPLOYEE STOCK PURCHASE PLAN

FOR UNITED STATES EMPLOYEES

(Amended and
Restated as of February 15, 2007)

Edwards
Lifesciences Corporation

2001 Employee Stock Purchase Plan

For United States Employees

(Amended
and Restated as of February 15,
2007)

ARTICLE I
— PURPOSE

1.01.  Purpose

The Edwards Lifesciences
Corporation 2001 Employee Stock Purchase Plan for United States Employees is
intended to provide a method whereby employees of Edwards Lifesciences
Corporation (the “Company”) and its participating subsidiary companies
authorized by the Committee (or an officer designated by the Committee pursuant
to Section 9.02) to extend the benefits of the Plan to their Eligible Employees
will have an opportunity to acquire a proprietary interest in the Company
through the purchase of shares of the Company’s common stock. It is the
intention of the Company to have the Plan qualify as an “employee stock
purchase plan” under Section 423 of the Internal Revenue Code of 1986, as
amended. The provisions of the Plan shall be construed so as to extend and
limit participation in a manner consistent with the requirements of Code
Section 423.

The Plan was initially
adopted by the Board on February 8, 2001, and subsequently approved by the
stockholders on May 10, 2001.  The Plan
was subsequently amended and restated by the Board on February 20, 2003, September
13, 2005 and on February 15, 2007.

ARTICLE
II — DEFINITIONS

2.01.  Base Pay

“Base Pay” shall mean
regular straight-time earnings plus commissions and payments in lieu of regular
earnings (such as vacation, sick pay and holiday pay). In the case of a
part-time hourly employee, such employee’s base pay during an Offering shall be
determined by multiplying such employee’s hourly rate of pay by the number of
regularly scheduled hours of work for such employee during such Offering.

2.02.  Change in
Control

“Change in Control” of the Company shall
mean the occurrence of any one of the following events:

(a)                            Any
“Person”, as such term is used in Sections 13(d) and 14(d) of the Exchange Act
(other than the Company, any corporation owned, directly or indirectly, by the
stockholders of the Company in substantially the same proportions as their
ownership of stock of the Company, and any trustee or 

other
fiduciary holding securities under an employee benefit plan of the Company
or such proportionately owned corporation), is or becomes the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Company representing thirty percent (30%) or
more of the combined voting power of the Company’s then outstanding securities;
or

(b)                           During
any period of not more than twenty-four (24) months, individuals who at the
beginning of such period constitute the Board of Directors of the Company, and
any new director (other than a director designated by a Person  who has entered into an agreement with the Company to
effect a transaction described in Sections 2.02(a), 2.02(c), or 2.02(d) of this
Section 2.02) whose election by the Board or nomination for election by the
Company’s stockholders was approved by a vote of at least two-thirds (2/3) of
the directors then still in office who either were directors at the beginning
of the period or whose election or nomination for election was previously so
approved, cease for any reason to constitute at least a majority thereof; or

(c)                            The
consummation of a merger or consolidation of the Company with any other entity,
other than: (i) a merger or consolidation which would result in the voting
securities of the Company outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity) more than sixty percent (60%) of the
combined voting power of the voting securities of the Company or such surviving
entity outstanding immediately after such merger or consolidation; or (ii) a
merger or consolidation effected to implement a recapitalization of the Company
(or similar transaction) in which no Person acquires more than thirty percent
(30%) of the combined voting power of the Company’s then outstanding
securities; or

(d)                           The
Company’s stockholders approve a plan of complete liquidation or dissolution of
the Company, or an agreement for the sale or disposition by the Company of all
or substantially all of the Company’s assets (or any transaction having a
similar effect).

2.03.  Code

“Code” shall mean the
Internal Revenue Code of 1986, as amended.

2.04.  Committee

“Committee” shall mean
the individuals appointed by the Company to administer the Plan as described in
Article IX.

2.05.  Company

“Company” shall mean
Edwards Lifesciences Corporation.

 2
 

2.06.  Corporate
Affiliate

“Corporate Affiliate” shall mean any parent or
subsidiary corporation or limited liability company of the Company (as
determined in accordance with Code section 424), whether now existing or
subsequently established.

2.07.  Eligible
Employee

“Eligible Employee”
means, unless local laws prohibit such employee’s participation in the Plan,
any regular employee of a Participating Company who is scheduled to work 20 or
more hours per week.

2.08.  Enrollment
Period

“Enrollment Period” shall mean with respect to any
Offering, the period designated by the Committee prior to such Offering during
which Eligible Employees may authorize payroll deductions through a
Subscription.  Unless the Committee
determines otherwise, the Enrollment Period with respect to any Offering shall
end on the twenty-fifth day of the month immediately preceding the Offering
Commencement Date and any Subscription received after such date shall be deemed
to be an enrollment in the next following Offering.

2.09.  Exchange Act

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

2.10.  Fair
Market Value

The “Fair Market Value”
of a share of Stock on a given day shall be determined as follows:  (i) if the Stock is listed on any established
stock exchange or a national market system (a) for any date of determination
except the Purchase Date, Fair Market Value shall be the closing sales price
for such stock (or the closing bid, if no sale is reported) as quoted on such
exchange or system for the last market trading day prior to the time of
determination, as reported in The Wall Street Journal or
such other source as the Committee deems reliable; (b) for the Purchase Date,
Fair Market Value shall be the closing sales price for such stock (or the
closing bid, if no sale is reported) as quoted on such exchange or system on
the Purchase Date, as reported in The Wall Street Journal or
such other source as the Committee deems reliable, or (ii) in the absence of an
established market for the Stock, the Fair Market Value thereof shall be
determined in good faith by the Committee.

2.11.  Offering

“Offering” shall mean the
quarterly offering of the Company’s Stock, the duration of which shall not
exceed twenty seven (27) months.

 3
 

2.12.  Offering
Commencement Date

“Offering Commencement
Date” shall mean June 1, 2001 and, unless determined otherwise by the
Committee, the first day of each calendar quarter thereafter.

2.13.  Offering End
Date

“Offering End Date” shall
mean, with respect to each Offering beginning prior to July 1, 2007, the first
to occur of the day preceding the second annual anniversary of the Offering
Commencement Date or the day preceding July 1, 2007, unless determined
otherwise by the Committee prior to the Offering Commencement Date or such date
as determined pursuant to Section 6.04.  “Offering
End Date” shall mean, with respect to each Offering beginning on or after July
1, 2007, the day preceding the first annual anniversary of the Offering
Commencement Date, unless determined otherwise by the Committee prior to the
Offering Commencement Date or such date as determined pursuant to Section 6.04.

2.14.  Participant

“Participant” shall mean
an Eligible Employee who has elected to participate in an Offering by entering
a Subscription during the Enrollment Period for such Offering.

2.15.  Participating
Company

“Participating Company” shall mean the
Company and each Corporate Affiliate as may be authorized from time to time by
the Committee to extend the benefits of the Plan to their Eligible Employees.

2.16.  Plan

“Plan” shall mean the
Edwards Lifesciences Corporation 2001 Employee Stock Purchase Plan for United
States Employees, as amended from time to time.

2.17.  Purchase
Date

“Purchase Date” shall mean with respect to any
Offering, the last day of each calendar quarter (or such other dates determined
by the Committee prior to the Offering Commencement Date or pursuant to Section
6.04) during the period beginning with the Offering Commencement Date for such
Offering and ending with the Offering End Date; provided, however, if any such
day is not a business day, the Purchase Date shall be the next preceding
business date on which shares of Stock are traded.

2.18.  Stock

“Stock” shall mean the common stock, par value $1.00,
of the Company.

 4
 

2.19.  Subscription

“Subscription” shall mean
an Eligible Employee’s authorization for payroll deductions made in the form
and manner specified by the Committee (which may include enrollment by
submitting forms, by voice response, internet access or other electronic
means).  Unless withdrawn earlier in
accordance with Section 6.02, each Subscription shall be in effect for the
duration of the Offering to which it applies. 
No more than one Subscription may be in effect for an Eligible Employee
during any calendar quarter.

ARTICLE
III — ELIGIBILITY AND PARTICIPATION

3.01.  Initial
Eligibility

Any individual who is an
Eligible Employee on an Offering Commencement Date shall be eligible to
participate in the Offering commencing on such date, subject to the terms and
conditions of the Plan.

3.02.  Leave of
Absence

For purposes of
participation in the Plan, a Participant on a leave of absence shall be deemed
to be an employee for a period of up to 90 days or, if longer, during the
period the Participant’s right to reemployment is guaranteed by statute or
contract.  If the leave of absence is
paid, deductions authorized under any Subscription in effect at the time the
leave began will continue.  If the leave
of absence is unpaid, no deductions or contributions will be permitted during
the leave.  If such a Participant returns
to active status within 90 days or the guaranteed reemployment period, as
applicable, payroll deductions under the Subscription in effect at the time the
leave began will automatically begin again upon the Participant’s return to
active status, unless the Subscription has expired.  If the Participant does not return to active
status within 90 days or the guaranteed reemployment period, as applicable, the
Participant shall be treated as having terminated employment for all purposes
of the Plan.  If such terminated
Participant later returns to active employment as an Eligible Employee or if a
Participant returns to active employment as an Eligible Employee after the
Subscription has expired, such individual will be treated as a new employee and
will be eligible to participate in Offerings commencing after his or her
reemployment date by filing a Subscription during the applicable Enrollment
Period for such Offering.

3.03.  Restrictions
on Participation

Notwithstanding any
provisions of the Plan to the contrary, no Eligible Employee shall be granted a
right to purchase Stock:

(a)                                  if,
immediately after the grant, such employee would own Stock, and/or hold
outstanding options to purchase Stock, possessing 5% or more of the total
combined voting power or value of all classes of the Company’s 

 5
 

stock (for purposes of this paragraph, the rules of Section 424(d) of
the Code shall apply in determining stock ownership of any employee); or

(b)                                 which
permits the employee’s rights to purchase Stock under  all  employee stock purchase plans of the Company to accrue at a
rate which exceeds $25,000  in Fair Market
Value of the Stock (determined at the time such right to purchase Stock is
granted) for each calendar year in which such right is outstanding.

Further, with respect to
any Offering, in no event shall an employee be granted a right to purchase in
excess of 10,000 shares of Stock, subject to adjustment pursuant to Section
10.03.

3.04.  Commencement
of Participation

An Eligible Employee may
become a Participant in any Offering by entering a Subscription during the
Enrollment Period for such Offering. Payroll deductions for such Offering shall
commence on the applicable Offering Commencement Date and shall end on the
applicable Offering End Date unless withdrawn by the Participant or sooner
terminated in accordance with Article VII. 
Only one Subscription may be in effect with respect to any Participant
at any one time.

3.05.  Participation
After Rehire

An Eligible Employee’s
Subscription will automatically terminate on the date he or she is no longer an
employee of any Participating Company. 
If the Eligible Employee terminates employment with a Subscription in
effect with respect to an Offering and is rehired prior to the Offering End Date
for that Offering, the Subscription will not be reinstated and the Eligible
Employee will not be allowed to again make payroll deductions under such
Offering.  The Eligible Employee may
elect to participate in Offerings commencing after his or her reemployment date
by entering a Subscription during the applicable Enrollment Period for such
Offering.  Notwithstanding the foregoing,
an Eligible Employee’s transfer from one Participating Company to another shall
not terminate such Eligible Employee’s Subscription.

3.06.  International
Employees/International Transfers

Eligible Employees who
transfer to a Participating
Company from a subsidiary of the Company participating in the Company’s
stock purchase plan for international employees may not participate in Offerings
which had an Offering Commencement Date prior to such transfer.  Such Eligible Employee may participate in
Offerings commencing after such transfer by entering a Subscription during the
applicable Enrollment Period for such Offering.

A Participant who
transfers from a Participating Company to either a Corporate Affiliate that is
not a Participating Company or a location that, by local law, prohibits 

 6
 

participation in any of
the Company’s stock purchase plans will be treated as a terminated Participant
under this Plan.

ARTICLE
IV — OFFERINGS

4.01.  Quarterly
Offerings

The Plan commenced with
an Offering beginning on June 1, 2001 and, unless determined otherwise by the
Committee, will continue in operation with a new Offering commencing on the
first day of each calendar quarter thereafter. Eligible Employees may not have
in effect more than one Subscription at a time.

Participants may
subscribe to any Offering by entering a Subscription during the Enrollment
Period for such Offering in such manner as the Committee may prescribe (which
may include enrollment by submitting forms, by voice response, internet access
or other electronic means).

A Subscription that is in
effect on an Offering End Date will automatically be deemed to be a
Subscription for the Offering that commences immediately following such
Offering End Date, provided that the Participant is still an Eligible Employee
and has not withdrawn the Subscription. 
Under the foregoing automatic enrollment provisions, payroll deductions
will continue at the level in effect immediately prior to the new Offering
Commencement Date, unless changed in advance by the Participant in accordance
with Section 5.03.

4.02.  Purchase
Price

The purchase price per
share of Stock under each Offering shall be the lower of:

(a)                                  85%
of the Fair Market Value of the Stock on the Offering Commencement Date; or

(b)                                 85%
of the Fair Market Value of the Stock on the Purchase Date.

Such purchase price may
only be paid with accumulated payroll deductions in accordance with Article V.

 7
 

ARTICLE V — PAYROLL DEDUCTIONS

5.01.  Amount of
Deduction

An Eligible Employee’s Subscription shall authorize
payroll deductions at a rate, in whole percentages, of no less than 1% and no
more than 12% of Base Pay on each payday that the Subscription is in effect.

5.02.  Participant’s
Account

All payroll deductions
made with respect to a Participant shall be credited to his or her
recordkeeping account under the Plan.  A
Participant may not make any separate cash payment into such account.  No interest will accrue or be paid on any
amount withheld from a Participant’s pay under the Plan or credited to the
Participant’s account.  Except as
otherwise provided in this Section 5.02, all amounts in a Participant’s account
will be used to purchase whole shares of Stock and no cash refunds shall be
made from such account.  Any amounts that
are insufficient to purchase whole shares shall be credited to the Participant’s
account, and added to any fractional amounts resulting on subsequent Purchase
Dates.  Upon liquidation or other closing
of a Participant’s account, any fractional amounts shall be paid in cash to the
Participant based on the then current Fair Market Value of the Stock.  In addition, any amounts that are withheld
but unable to be applied to the purchase of Stock because of the limitations of
Section 3.03 shall be returned to the Participant without interest and will not
be used to purchase shares with respect to any other Offering under the Plan.

5.03.  Changes in
Payroll Deductions

During an Offering, a
Participant may change his or her level of payroll deduction with respect to
such Offering within the limits described in Section 5.01 in accordance with
procedures established by the Committee (including, without limitation, rules
relating to the frequency of such changes); provided, however, if the
Participant reduces his or her payroll deductions to zero, it shall be deemed
to be a withdrawal of the Subscription and the Participant may not thereafter
participate in such Offering but must wait until the next Offering to
resubscribe to the Plan.  Any such
discontinuance or change in level shall be effective as soon as
administratively practicable.

ARTICLE
VI — EXERCISE OF  RIGHTS TO PURCHASE STOCK

6.01.  Automatic
Exercise

A Participant’s right to
purchase Stock with respect to any Offering will be automatically exercised on
each Purchase Date for the Offering.  The
right to purchase Stock will be exercised by using the accumulated payroll
deductions in the Participant’s account as of each such Purchase Date to
purchase the number of whole shares of Stock that may 

 8
 

be purchased at the
purchase price on such date, determined in accordance with Section 4.02.

6.02.  Withdrawal
From Offering

A Participant may not withdraw the accumulated payroll
deductions in his or her account during an Offering.  If the Participant withdraws his or her
Subscription with respect to any Offering, the accumulated payroll deductions
in the Participant’s account at the time the Subscription is withdrawn will be
used to purchase shares of Stock at the next Purchase Date for the Offering to
which the Subscription related, in accordance with Section 6.01.

6.03.  Delivery
of Stock

Stock purchases under the
Plan will be held in an account in the Participant’s name in uncertificated
form unless certification is requested by the Participant.  Furthermore, Stock to be delivered to a
Participant under the Plan will be registered in the name of the Participant.

6.04.  Change in
Control

If pursuant to
a Change in Control rights to purchase Stock are not assumed or otherwise
continued in full force and effect, then each right to purchase Stock under
each Offering in effect at the time of the Change in Control shall
automatically be exercised, immediately prior to the effective date of any Change
in Control, by applying the payroll deductions of each Participant for the
Offering in which such Change in Control occurs to the purchase of whole shares
of Stock at a purchase price per share equal to eighty-five percent (85%) of
the lower of (i) the Fair Market Value per share of Stock on the start date of
the applicable Offering or (ii) the Fair Market Value per share of Stock
immediately prior to the effective date of such Change in Control.

ARTICLE
VII — WITHDRAWAL

7.01.  Effect on
Subsequent Participation

The Committee shall have
the authority to decide the Participant’s eligibility to participate in any
succeeding Offering if Participant withdraws from any Offering.

 9
 

7.02.  Termination
of Employment

Subject to the following
provisions of this Section 7.02, upon termination of the Participant’s
employment for any reason that results in the Participant not qualifying as an
Eligible Employee, any Subscription then in effect will be deemed to have been
withdrawn and any payroll deductions credited to the Participant’s account will
be used to purchase Stock on the next Purchase Date for the Offering with
respect to which such deductions relate. 
Notwithstanding the foregoing, if the Participant has a Subscription in
effect on the Participant’s termination of employment, payroll deductions (at
the rate in effect on the termination date) shall continue to be made from Base
Pay earned prior to termination of employment, if any, that is paid to the
Participant after such termination of employment and before the earlier of (i)
the three-month anniversary of such termination of employment, or (ii) the
Offering End Date of such Offering.  Any
such payroll deduction shall be used to purchase Stock on the next Purchase Date
for the Offering after the deduction is made.

ARTICLE
VIII — STOCK

8.01.  Maximum
Shares

The maximum number of
shares which may be issued under the Plan, subject to adjustment upon changes
in capitalization of the Company as provided in Section 10.03, shall be 2,300,000
shares. If the total number of shares for which rights to purchase Stock are
exercised on any Purchase Date exceeds the maximum number of shares available
for issuance, the Company shall make a pro rata allocation of the shares
available for delivery and distribution in as nearly a uniform manner as shall
be practicable and as it shall determine to be equitable, and the balance of
payroll deductions credited to the account of each Participant under the Plan
shall be returned to him as promptly as possible.

8.02.  Participant’s
Interest in Rights to Purchase Stock

The Participant will have
no interest in Stock covered by a right to purchase Stock under the Plan until
such right has been exercised.

ARTICLE
IX — ADMINISTRATION

9.01.  Appointment
of Committee

The Company’s Board of Directors
shall appoint a Committee to administer the Plan. No member of the Committee
who is not an Eligible Employee shall be eligible to purchase Stock under the
Plan.

 10
 

9.02.  Authority
of Committee

Subject to the express
provisions of the Plan, the Committee shall have plenary authority in its
discretion to interpret and construe any and all provisions of the Plan, to
adopt rules and regulations for administering the Plan, and
to make all other determinations deemed necessary or advisable for administering
the Plan. The Committee’s determination on the foregoing matters shall be
conclusive.  The Committee shall also
have the authority to determine if and when the employees of Corporate
Affiliates organized or acquired after the Effective Date shall be eligible for
participation in the Plan.  The Committee
may delegate to an officer its authority under this Section 9.02 to determine
if and when the employees of a Corporate Affiliate shall be eligible or
ineligible for participation in the Plan.

9.03.  Rules
Governing the Administration of the Committee

The Company’s Board of
Directors may from time to time appoint members of the Committee in
substitution for or in addition to members previously appointed and may fill
vacancies, however caused, in the Committee. The Committee may select one of
its members as its Chairman and shall hold its meetings at such times and
places as it shall deem advisable and may hold telephonic meetings. A majority
of its members shall constitute a quorum. All determinations of the Committee
shall be made by a majority of its members. The Committee may correct any
defect or omission or reconcile any inconsistency in the Plan, in the manner
and to the extent it shall deem desirable. Any decision or determination
reduced to writing and signed by a majority of the members of the Committee
shall be as fully effective as if it had been made by a majority vote at a
meeting duly called and held. The Committee may appoint a secretary and shall
make such rules and regulations for the conduct of its business as it shall
deem advisable.

9.04.  Statements

Each Participant shall receive a statement of his
account showing the number of shares of Stock held and the amount of cash
credited to such account.  Such
statements will be provided as soon as administratively feasible following the
end of each calendar quarter.

ARTICLE X
— MISCELLANEOUS

10.01.  Transferability

Neither payroll
deductions credited to a Participant’s account nor any rights with regard to
the exercise of a right to purchase Stock or to receive Stock under the Plan
may be assigned, transferred, pledged, or otherwise disposed of in any way by
the Participant other than by will or the laws of descent and distribution. Any
such attempted assignment, transfer, pledge or other disposition shall be
without effect.  During a 

 11
 

Participant’s lifetime, rights to purchase
Stock that are held by such Participant shall be exercisable only by that
Participant.

10.02.  Use of
Funds

All payroll deductions
received or held by the Participating Company under this Plan may be used by the Participating
Company for any corporate purpose and the Participating Company shall not be
obligated to segregate such payroll deductions.

10.03.  Adjustment
Upon Changes in Capitalization

In the event of a stock
split, stock dividend, recapitalization, reclassification or combination of
shares, merger, spin-off or similar event, the Committee shall adjust equitably
(a) the number and class of shares or other securities that are reserved for
sale under the Plan, (b) the number and class of shares or other securities
that are subject to outstanding rights to purchase Stock, (c) the maximum
number of shares of Stock that can be purchased by a Participant with respect
to any Offering and (d) the appropriate market value and other price
determinations applicable to rights to purchase Stock.  The Committee shall make all determinations
under this Section 10.03, and all such determinations shall be conclusive
and binding.

10.04.  Amendment
and Termination

The Company’s Board of
Directors shall have complete power and authority to terminate or amend the
Plan at any time and for any reason; provided, however, that the Company’s
Board of Directors shall not, without the approval of the stockholders of the
Company in accordance with Section 423 of the Code, (i) increase the maximum
number of shares which may be issued under any Offering (except pursuant to
Section 10.03); (ii) amend the requirements as to the class of employees
eligible to purchase stock under the Plan; or (iii) permit members of the
Committee who are not Eligible Employees to purchase stock under the Plan.

Upon termination of the
Plan, the date of termination shall be considered a Purchase Date, and any cash
remaining in Participant accounts will be applied to the purchase of Stock,
unless determined otherwise by the Company’s Board of Directors.  Upon termination of the Plan, the Company’s
Board of Directors shall have authority to establish administrative procedures
regarding the exercise of outstanding rights to purchase Stock or to determine
that such rights shall not be exercised.

10.05.  Effective
Date

This Plan became
effective as of June 1, 2001.

10.06.  No
Employment Rights

The Plan does not,
directly or indirectly, create in any employee or class of employees any right
with respect to continuation of employment with the Company or any 

 12
 

Corporate Affiliate, and
it shall not be deemed to interfere in any way with the right of the Company or
any Corporate Affiliate employing such person to terminate, or otherwise
modify, an employee’s employment at any time.

10.07.  Effect of
Plan

The provisions of the
Plan shall, in accordance with its terms, be binding upon, and inure to the
benefit of, all successors of each employee participating in the Plan,
including, without limitation, such employee’s estate and the executors,
administrators or trustees thereof, heirs and legatees, and any receiver,
trustee in bankruptcy or representative of creditors of such employee.

10.08.  Governing
Law

The law of the State of
California will govern all matters relating to this Plan except to the extent
it is superseded by the laws of the United States.

 13

APPENDIX
A

LIST
OF PARTICIPATING COMPANIES

Following is a list of
Participating Companies as of February 20, 2003:

Edwards Lifesciences
Corporation

Edwards Lifesciences International Assignments Inc.

Edwards Lifesciences LLC

Edwards Lifesciences (U.S.) Inc.

Edwards Lifesciences Research Medical, Inc.

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