Document:

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                                                                   EXHIBIT 10.26

                   THE GUIDANT EXCESS BENEFIT PLAN - - SAVINGS

                       RESTATED EFFECTIVE JANUARY 1, 1999

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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                              PAGE
                                                                              ----
<S>                                                                           <C>
ARTICLE I      ESTABLISHMENT AND PURPOSE OF THE PLAN                            1
       1.1     Establishment and Restatement                                    1
       1.2     Purpose                                                          1

ARTICLE II     DEFINITIONS                                                      1
       2.1     Account                                                          1
       2.2     Base Earnings                                                    1
       2.3     Basic Contributions                                              1
       2.4     Beneficiary                                                      1
       2.5     Board of Directors                                               2
       2.6     Code                                                             2
       2.7     Committee                                                        2
       2.8     Compensation                                                     2
       2.9     Corporation                                                      2
      2.10     Corporation Contribution Account                                 2
      2.11     Corporation Contributions                                        2
      2.12     Disability                                                       2
      2.13     Eligible Employee                                                2
      2.14     Employer Contributions                                           3
      2.15     Excess Salary Reduction Account                                  3
      2.16     Excess Salary Reduction Contributions                            3
      2.17     Guidant                                                          3
      2.18     Guidant ESSOP                                                    3
      2.19     Guidant Stock Fund                                               3
      2.20     Investment Option                                                3
      2.21     Limitations                                                      3
      2.22     Matching Contributions                                           3
      2.23     Normal Retirement Age                                            4
      2.24     Participant                                                      4
      2.25     Plan                                                             4
      2.26     Plan Year                                                        4
      2.27     Points                                                           4
      2.28     Retire                                                           4
      2.29     Salary Reduction Contributions                                   4
      2.30     Transition Benefits                                              4
      2.31     Year of Service                                                  4
</TABLE>

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<TABLE>
<S>                                                                            <C>
ARTICLE III    PARTICIPATION AND CONTRIBUTION ELECTIONS                         4
        3.1    Participation                                                    4
        3.2    Election Procedure                                               5

ARTICLE IV     PARTICIPANTS' ACCOUNTS                                           5
        4.1    Establishment of Accounts                                        5
        4.2    Vesting of Accounts                                              5
        4.3    Accumulations Under Predecessor Plans                            6
        4.4    Earnings and Losses                                              6
        4.5    Account Statements                                               6

ARTICLE V      CORPORATION CONTRIBUTIONS                                        7
        5.1    Matching Corporation Contributions                               7
        5.2    Basic Corporation Contributions                                  7

ARTICLE VI     PAYMENT                                                          8
        6.1    Time of Payment                                                  8
        6.2    Form of Payment                                                  8
        6.3    Election of Later Payment Commencement Date                      8
        6.4    Election of Alternate Form of Payment                            9
        6.5    Special Distribution Rules                                       9
        6.6    Payments with Respect to a Deceased Participant                 10
        6.7    Payment on Unforeseeable Emergency                              10

ARTICLE VII    NATURE OF PARTICIPANT'S INTEREST                                11
        7.1    Unsecured General Creditor                                      11
        7.2    Trust Fund                                                      11
        7.3    No Right to Transfer Interest                                   11

ARTICLE VIII   ADMINISTRATION                                                  12
        8.1    Committee                                                       12
        8.2    Powers of the Committee                                         12
        8.3    Finality of Committee Determinations                            12

ARTICLE IX     NO EMPLOYMENT RIGHTS                                            13

ARTICLE X      MISCELLANEOUS                                                   13
       10.1    Amendment, Suspension, and Termination                          13
</TABLE>

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<TABLE>
<S>                                                                            <C>
      10.2     Board of Directors' Power to Delegate Authority                 13
      10.3     Indemnification                                                 13
      10.4     No Impact on Other Benefits                                     13
      10.5     Incapacity of Recipient                                         13
      10.6     Data                                                            14
      10.7     Misstatements                                                   14
      10.8     Taxes                                                           14
      10.9     Applicable Law                                                  14
      10.10    Usage of Terms and Headings                                     14
</TABLE>

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                   THE GUIDANT EXCESS BENEFIT PLAN - - SAVINGS

                      (RESTATED EFFECTIVE JANUARY 1, 1999)

                                    ARTICLE I

                      ESTABLISHMENT AND PURPOSE OF THE PLAN

         Section 1.1. Establishment and Restatement. Guidant Corporation
established the Plan, effective September 25, 1995, as an unfunded plan of
deferred compensation for the benefit of a select group of management and highly
compensated employees. The Plan is hereby amended and restated in its entirety,
effective as of January 1, 1999.

         Section 1.2. Purpose. The primary purpose of this Plan is to provide a
means by which an Eligible Employee may defer receipt of a portion of his or her
Base Earnings that, but for the Limitations, could be contributed to the Guidant
ESSOP. The Plan also provides that the Committee will maintain an account for
each Participant to which it will credit Corporation Contributions that will
accrue at the same rates as matching and basic contributions made by Guidant
under the Guidant ESSOP.

                                   ARTICLE II

                                   DEFINITIONS

         The following words and phrases as used in this Plan have the following
meanings:

         Section 2.1. Account. The term "Account" means the record of a
Participant's interest in the Plan.

         Section 2.2. Base Earnings. The term "Base Earnings" means an Eligible
Employee's base earnings as determined for purposes of the Guidant ESSOP, but
without regard to the Limitation imposed by Code paragraph 401(a)(17).

         Section 2.3. Basic Contributions. The term "Basic Contributions" means
the contributions made by Guidant pursuant to subsections 3.06(b) and 19.04(b)
of the Guidant ESSOP.

         Section 2.4. Beneficiary. The term "Beneficiary" means the person or
persons entitled to receive payment of a Participant's remaining vested Accounts
following a Participant's death.

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         Section 2.5. Board of Directors. The term "Board of Directors" means
the Corporation's board of directors.

         Section 2.6. Code. The term "Code" means the Internal Revenue Code of
1986 and interpretive regulations.

         Section 2.7. Committee. The term "Committee" means the Management
Development and Compensation Committee of the Board of Directors, which is
charged with administering the Plan pursuant to Section 8.1.

         Section 2.8. Compensation. The term "Compensation" means, with respect
to a Participant for a Plan Year, the sum of the Participant's Base Earnings for
the Plan Year and his Excess Salary Reduction Contributions for the Plan Year.

         Section 2.9. Corporation. The term "Corporation" means Guidant
Corporation.

         Section 2.10. Corporation Contribution Account. The term "Corporation
Contribution Account" means the Participant's Account attributable to
Corporation Contributions.

         Section 2.11. Corporation Contributions. The term "Corporation
Contributions" means the amounts accrued with respect to a Participant pursuant
to Sections 5.1 and 5.2.

         Section 2.12. Disability. The term "Disability" means an Eligible
Employee's inability to perform the material duties of his regular occupation
with Guidant or any other Guidant position in the same salary grade that is
commensurate with the Eligible Employee's education, training, and experience;
provided that the inability results from an accidental bodily injury or illness
that requires the Eligible Employee to be under the care of a licensed
physician, and provided further that the inability is not attributable to war,
declared or undeclared, or any act of war, to intentionally self-inflicted
injuries (whether sane or insane), or to active participation in a riot.

         Section 2.13. Eligible Employee. The term "Eligible Employee" means an
employee of Guidant who satisfies the following requirements: (a) the Salary
Reduction Contributions that the employee would otherwise be eligible to make,
or the Employer Contributions that the employee would otherwise be eligible to
receive, under the Guidant ESSOP are reduced as a result of the Limitations; and
(b) the employee is a member of one of the classifications, described in
Appendix A to this Plan, designated by the Committee as employees eligible to
participate in this Plan. The classifications

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designated by the Committee shall be such that the persons in those
classifications, taken together, constitute a select group of management and
highly compensated employees.

         Section 2.14. Employer Contributions. The term "Employer Contributions"
means Basic Contributions and Matching Contributions.

         Section 2.15. Excess Salary Reduction Account. The term "Excess Salary
Reduction Account" means a Participant's Account attributable to Excess Salary
Reduction Contributions.

         Section 2.16. Excess Salary Reduction Contributions. The term "Excess
Salary Reduction Contributions" means the difference between (1) the total
amount of a Participant's Compensation that the Participant elects to defer
under the combination of this Plan and the Guidant ESSOP for a Plan Year, and
(2) the amount of Salary Reduction Contributions the Participant may make under
the Guidant ESSOP for the Plan Year without exceeding the Limitations.

         Section 2.17. Guidant. The term "Guidant" means the Corporation and its
affiliates and subsidiaries that have adopted, or in the future adopt, the
Guidant ESSOP.

         Section 2.18. Guidant ESSOP. The term "Guidant ESSOP" means The Guidant
Employee Savings and Stock Ownership Plan.

         Section 2.19. Guidant Stock Fund. The term "Guidant Stock Fund" means
the investment fund under the Guidant ESSOP that invests primarily in shares of
the common stock of the Corporation.

         Section 2.20. Investment Option. The term "Investment Option" means an
investment option available under section 5.01 of the Guidant ESSOP.

         Section 2.21. Limitations. The term "Limitations" means (a) the
limitation imposed by Code paragraph 401(a)(17) on compensation taken into
account under a qualified plan; (b) the limitations imposed by the
nondiscrimination requirements of Code subsections 401(k) and 401(m); (c) the
limitation on elective deferrals imposed by Code subsection 402(g); and (d) the
limitation on contributions to defined contribution plans imposed by Code
subsection 415(c), or, with respect to Plan Years beginning before January 1,
2000, the limitation imposed by Code subsection 415(e) if the subsection 415(e)
limitation affects the amount of Salary Reduction Contributions that otherwise
would be made to the Guidant ESSOP.

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         Section 2.22. Matching Contributions. The term "Matching Contributions"
means the minimum matching contributions and additional matching contributions
made by Guidant pursuant to subsections 3.06(a), 3.06(b), 19.04(a), and 19.04(b)
of the Guidant ESSOP.

         Section 2.23. Normal Retirement Age. The term "Normal Retirement Age"
means age 65.

         Section 2.24. Participant. The term "Participant" means an Eligible
Employee who (a) elects to reduce his or her Compensation in an amount
sufficient that (1) Salary Reduction Contributions result in the Limitations
being equaled but not exceeded, and (2) Excess Salary Reduction Contributions
may be made to this Plan; or (b) is entitled to Corporation Contributions under
Section 5.02 or Section 5.03.

         Section 2.25. Plan. The term "Plan" means The Guidant Excess Benefit
Plan -- Savings, as set forth in this instrument, as it may be amended from time
to time.

         Section 2.26. Plan Year. The term "Plan Year" means the calendar year.

         Section 2.27. Points. A Participant shall be deemed to have one Point
for each year of his age and for each Year of Service.

         Section 2.28. Retire. The term "Retire" means for a Participant to
terminate employment with Guidant after the Participant has (1) reached age
Normal Retirement Age; (2) reached age 55 and completed 10 Years of Service; or
(3) if the Participant is entitled to receive Transition Benefits, accumulated
80 Points.

         Section 2.29. Salary Reduction Contributions. The term "Salary
Reduction Contributions" means the amount that an employee elects to defer
pursuant to Section 3.01 of the Guidant ESSOP that may be contributed to the
Guidant ESSOP without resulting in the Limitations being exceeded.

         Section 2.30. Transition Benefits. The term "Transition Benefits" means
the additional benefit accruals that are provided under The Guidant Retirement
Plan to participants in that plan who, as of September 25, 1995, had accumulated
at least 65 Points.

         Section 2.31. Year of Service. The term "Year of Service" means a year
of service credited under the Guidant ESSOP.

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                                   ARTICLE III

                    PARTICIPATION AND CONTRIBUTION ELECTIONS

         Section 3.1. Participation. An Eligible Employee will be a Participant
if he or she (1) elects to have his or her Compensation reduced and deferred in
such an amount as to result in Excess Salary Reduction Contributions, or (2) is
entitled to Corporation Contributions.

         Section 3.2. Election Procedure. Prior to the beginning of each Plan
Year for which a Participant wishes to make Excess Salary Reduction
Contributions, the Participant shall file an election with the Committee, in a
form satisfactory to the Committee, that meets the following requirements:

         (a) The election shall irrevocably defer Excess Salary Reduction
Contributions, specified as a percentage of Compensation.

         (b) The election shall be irrevocable, regardless of whether the
Participant's rate of Salary Reduction Contributions under the Guidant ESSOP
changes during the Plan Year.

         (c) The Participant may not elect to make Excess Salary Reduction
Contributions for any Plan Year in an amount that, when added to his or her
Salary Reduction Contributions under the Guidant ESSOP for that Plan Year,
exceeds sixteen percent (16%) of his or her Compensation for the Plan Year.

         (d) A Participant's Excess Salary Reduction Contributions deferred
pursuant to this Section shall be credited to the Participant's Excess Salary
Reduction Account as of the date on which they are reported to the Committee's
designated recordkeeper.

                                   ARTICLE IV

                             PARTICIPANTS' ACCOUNTS

         Section 4.1. Establishment of Accounts. The Committee shall create and
maintain adequate records to disclose each Participant's interest in the Plan.
Records shall be in the form of individual bookkeeping accounts, which shall be
credited with Excess Salary Reduction Contributions pursuant to Article III,
Corporation Contributions pursuant to Article V, amounts attributable to
accumulations under predecessor plans pursuant to Section 4.3, and earnings and
losses pursuant to Section 4.4, and debited with any payments pursuant to
Article VI. Each Participant shall have a separate Excess Salary Reduction
Account and Corporation Contribution Account.

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         Section 4.2. Vesting of Accounts.

         (a) A Participant's interest in his or her Excess Salary Reduction
Account shall be fully vested and nonforfeitable at all times.

         (b) A Participant's interest in his or her Corporation Contribution
Account shall become 20% vested upon the completion of one Year of Service, 40%
vested upon the completion of two Years of Service, 60% vested upon the
completion of three Years of Service, 80% vested upon the completion of four
Years of Service, and 100% vested upon the completion of five Years of Service.
A Participant's Corporation Contribution Account shall also become 100% vested
when the Participant reaches Normal Retirement Age, incurs a Disability while
employed by Guidant, or dies while employed by Guidant.

         (c) If a Participant terminates employment with Guidant before the
Participant's Corporation Contribution Account is 100% vested, the non-vested
portion of the Participant's Corporation Contribution Account shall be forfeited
as of the date of the Participant's termination of employment, and the
Participant shall not be entitled to any benefits from the non-vested portion of
his or her Corporation Contribution Account.

         Section 4.3. Accumulations Under Predecessor Plans. A Participant's
Accounts shall be credited with any amounts credited to the Participant's
accounts, if any, under The Lilly Excess Benefit Plan -- Savings (or any similar
predecessor plan) as of September 25, 1995.

         Section 4.4. Earnings and Losses.

         (a) During each Plan Year, a Participant's Excess Salary Reduction
Account shall be credited with investment earnings and losses as though it is
invested in the same Investment Options as the Participant's salary reduction
account under the Guidant ESSOP during the Plan Year.

         (b) During each Plan Year, a Participant's Corporation Contribution
Account shall be credited with investment earnings and losses as though it is
invested in the Guidant Stock Fund during the Plan Year.

         (c) The deemed investment of a Participant's Account among the
Investment Options or in the Guidant Stock Fund is solely the measure of the
investment performance of the Account. It does not give the Participant any
interest in any Investment Option or stock, nor does it bind Guidant, the
Corporation, the Committee, or any trustee as to the investment of any trust
fund or any other amounts represented by Participants' Accounts.

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         (d) Earnings and losses on the deemed investment of a Participant's
Accounts shall be credited daily, on each business day, based on the value of
the Participant's Accounts on that business day.

         Section 4.5. Account Statements. At least annually, each Participant
shall be given a statement showing, for the period covered by the statement, (a)
the amount of Excess Salary Reduction Contributions credited to the
Participant's Excess Salary Reduction Account; (b) the amount of Corporation
Contributions credited to the Participant's Corporation Contribution Account;
(c) the deemed investment earnings and losses credited to each of the
Participant's Accounts pursuant to Section 4.4, and (d) the total balance in
each of the Participant's Accounts as of the end of the period.

                                    ARTICLE V

                            CORPORATION CONTRIBUTIONS

         Section 5.1. Matching Corporation Contributions.

         (a) During each Plan Year, a minimum matching Corporation Contribution
will be credited monthly, as of the last business day of each month, to each
Participant's Corporation Contribution Account, at a rate with respect to the
eligible portion (as described in Subsection (c)) of the Participant's Excess
Salary Reduction Contributions equal to the rate of minimum Matching
Contributions under the Guidant ESSOP.

         (b) With respect to each Plan Year for which Guidant makes an
additional Matching Contribution under the Guidant ESSOP, an additional matching
Corporation Contribution shall be credited to each Participant's Corporation
Contribution Account, as of the last day of the Plan Year, with respect to the
eligible portion (as described in Subsection (c)) of the Participant's Excess
Salary Reduction Contributions at a rate equal to the rate of the additional
Matching Contribution under the Guidant ESSOP for the Plan Year.

         (c) The portion of a Participant's Excess Salary Reduction
Contributions eligible for matching Corporation Contributions for a Plan Year
shall be that portion that, when added to the Participant's Salary Reduction
Contributions under the Guidant ESSOP for the Plan Year, does not exceed six
percent (6%) of the Participant's Compensation.

         Section 5.2. Basic Corporation Contributions. During each Plan Year, a
basic Corporation Contribution will be credited monthly, as of the last business
day of each month, to each Participant's Corporation Contribution Account, at a
rate equal to the monthly rate of Basic Contributions made to the

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Guidant ESSOP for the Plan Year, with respect to that portion of the
Participant's monthly Compensation that exceeds his monthly "base earnings" as
determined for purposes of the Guidant ESSOP.

                                   ARTICLE VI

                                     PAYMENT

         Section 6.1. Time of Payment. The Corporation shall pay the Participant
(or the Beneficiary of a deceased Participant) the vested portion of his or her
Accounts beginning as soon as administratively feasible after the Participant's
termination of employment with Guidant, unless the Participant has effectively
elected a later distribution date pursuant to Section 6.3.

         Section 6.2. Form of Payment. Except as provided in Section 6.5, unless
a Participant effectively elects another form of payment pursuant to Section
6.4, the Participant's vested Accounts shall be distributed in cash in the form
of five annual installment payments. The value of each installment payment shall
be determined in accordance with subsection 10.01(a)(3)(C) of the Guidant ESSOP.
Installment payments or other periodic payments pursuant to this Section or
Section 6.4 shall deplete a Participant's Accounts in the following order:

         (a) Excess Salary Reduction Account;

         (b) That portion, if any, of the Participant's Accounts attributable to
accumulations under a predecessor plan, as described in Section 4.3

         (c) That portion of the Participant's Corporation Contribution Account
attributable to Matching Corporation Contributions; and

         (d) That portion of the Participant's Corporation Contribution Account
attributable to Basic Corporation Contributions.

         Section 6.3. Election of Later Payment Commencement Date.

         (a) Subject to Subsection (b) and Section 6.5, a Participant may elect
to have payment of his vested Accounts begin as of a date later than the time
specified in Section 6.1 by filing an election with the Committee, in a form

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acceptable to the Committee, not later than two full years before the date on
which the Participant terminates employment with Guidant. The election must
specify the calendar year in which payment is to commence, and payment will
commence in January of the designated calendar year. A Participant may change
his or her election from time to time, but an election or change of election
shall be invalid and ineffective if it is made less than two full years before
the date on which the Participant terminates employment with Guidant.

         (b) A Participant may not elect a payment commencement date later than
April 1 of the calendar year following the calendar year in which occurs the
later of (1) the date the Participant reaches age 70-1/2, or (2) the date the
Participant terminates employment with Guidant.

         Section 6.4. Election of Alternate Form of Payment.

         (a) Subject to Subsection (b) and Section 6.5, a participant may elect
to have his vested Accounts paid in a form described in Subsection (b) by filing
an election with the Committee, in a form acceptable to the Committee, not later
than two full years before the date on which the Participant terminates
employment with Guidant. A Participant may change his or her election from time
to time, but an election or change of election shall be invalid and ineffective
if it is made less than two full years before the date on which the Participant
terminates employment with Guidant.

         (b) A Participant may elect from the following alternate forms of
distribution:

               (1) a single lump sum cash payment;

               (2) substantially equal annual installment payments in cash over
a period not greater than 10 years;

               (3) a lump sum cash payment of a specified portion of the
Participant's accounts, with the balance paid in substantially equal annual
installments in cash over a specified period of not more than 10 years; or

               (4) substantially equal periodic cash payments over a specified
period not greater than the Participant's life expectancy or the joint life
expectancies of the Participant and his designated Beneficiary (determined in
the same manner as under the Guidant ESSOP).

         Section 6.5. Special Distribution Rules.

         (a) Notwithstanding any other provision of the Plan to the contrary, if
the total value of the Participant's vested Accounts does not exceed $25,000,
the Participant's Accounts shall be distributed in a lump sum payment as soon

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<PAGE>   14

as administratively feasible after the Participant terminates employment with
Guidant. The payment shall be made in cash.

         (b) Notwithstanding any other provision of the Plan to the contrary, if
a Participant terminates employment with Guidant for any reason other than death
or Retirement, the total value of the Participant's vested Accounts shall be
distributed in a lump sum payment as soon as administratively feasible after the
Participant terminates employment with Guidant. The payment shall be made in
cash.

         Section 6.6. Payments With Respect to a Deceased Participant.

         (a) If a Participant dies after termination of employment with Guidant
and before a payment owing to that Participant has been paid, the payment shall
be paid to the Participant's Beneficiary at the time and in the form that it
would have been paid to the Participant if he or she had not died.

         (b) If a Participant dies before he or she has terminated employment
with Guidant, the Participant's vested Accounts shall be distributed to the
Participant's Beneficiary at the time and in the form that they would have been
paid to the Participant if the Participant had terminated employment with
Guidant on the date of his or her death.

         (c) A Participant's Beneficiary shall be the person or persons,
including a trustee, designated by the Participant in writing pursuant to the
rules prescribed by the Committee. To be effective, a Beneficiary designation
must be filed with the Committee during the Participant's life on a form
prescribed by the Committee. In the event that the Participant has not
designated a Beneficiary or no designated Beneficiary survives the Participant,
the Participant's Beneficiary shall be his or her beneficiary under the Guidant
ESSOP; provided, however, that if all of the Participant's benefits under the
Guidant ESSOP were distributed before the Participant's death, then, for
purposes of this Plan, the Participant's Beneficiary shall be the person(s) who
would have been the Participant's beneficiary under section 10.02 of the Guidant
ESSOP if the Participant still had an unpaid account balance under the Guidant
ESSOP as of the date of his or her death and died without designating a
Beneficiary under the Guidant ESSOP.

         Section 6.7. Payment on Unforeseeable Emergency. The Committee may, in
its sole discretion, direct payment to a Participant of all or part of any
portion of the Participant's benefits under the Plan at any time that the
Committee determines that the Participant has an unforeseeable emergency and
then only to the extent reasonably necessary to meet the emergency. For purposes
of this Section, "unforeseeable emergency" means severe financial hardship to
the Participant resulting from a sudden and unexpected illness or accident of
the Participant or of a dependent of the Participant, loss of the

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<PAGE>   15

Participant's property due to casualty, or other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the
Participant's control. The circumstances that will constitute an unforeseeable
emergency will depend upon the facts of each case, but in any case, payment may
not be made to the extent that the hardship is or may be relieved by any of the
following:

         (a) Through reimbursement or compensation by insurance or otherwise,

         (b) By liquidation of the Participant's assets, to the extent that the
liquidation of the assets would not itself cause severe financial hardship, or

         (c) By cessation of Excess Salary Reduction Contributions under the
Plan.

         Examples of what are not considered to be unforeseeable emergencies
include the need to send a Participant's child to college or the desire to
purchase a home.

         In the event that the Committee approves a payment pursuant to this
Section, the Participant's Salary Reduction Contributions will cease as of the
first day of the month following approval and will not be permitted to resume
before the first day of the next Plan Year.

                                   ARTICLE VII

                        NATURE OF PARTICIPANT'S INTEREST

         Section 7.1. Unsecured General Creditor. A Participant's interest in
his or her Accounts in the Plan shall be that of an unsecured general creditor
of the Corporation, with no secured or preferential right to any assets of the
Corporation or Guidant or any other party for payment of benefits under this
Plan. Any property held by the Corporation or Guidant for the purpose of
generating cash flow for benefit payments shall remain its general, unpledged
and unrestricted assets. The Corporation's obligation under this Plan shall be
an unfunded and unsecured promise to pay benefits in the future.

         Section 7.2. Trust Fund. The Corporation shall be responsible for the
payment of benefits provided by the Plan. At its discretion, the Corporation may
establish one or more trusts, with such trustees as the Board of Directors may
approve, for the purpose of providing for the payment of Plan benefits. Any
trustee so appointed shall be bonded in a manner satisfactory to the
Corporation. Whether or not such a trust is irrevocable, its assets shall at all
times be subject to the claims of the Corporation's general creditors in the
event

                                      -11-
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of the Corporation's insolvency. To the extent that any benefits under the Plan
are paid from such a trust, the Corporation shall have no further obligation to
pay Plan benefits. Plan benefits not paid from a trust shall remain the
Corporation's obligation.

         Section 7.3. No Right to Transfer Interest. Rights to benefits payable
under the Plan are not subject in any way to anticipation, alienation,
assignment, sale, transfer, pledge, or encumbrance.

                                  ARTICLE VIII

                                 ADMINISTRATION

         Section 8.1. Committee. This Plan will be administered by the
Management Development and Compensation Committee of the Board of Directors.

         Section 8.2. Powers of the Committee. Subject to any specific
limitations stated in the Plan, the Committee shall have the following powers,
duties, and responsibilities:

         (a) To carry out the general administration of the Plan;

         (b) To cause to be prepared all forms necessary or appropriate for the
administration of the Plan;

         (c) To keep appropriate books and records;

         (d) To designate the classification of employees to be Eligible
Employees under the Plan.

         (e) To determine and authorize the payments due to Participants under
the terms of the Plan;

         (f) To adopt, amend, and rescind rules relating to the administration
of the Plan, to the extent that those rules are consistent with the provisions
of the Plan;

         (g) To exercise all other powers and duties specifically conferred upon
the Committee elsewhere in this document; and

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<PAGE>   17

         (h) To interpret, with discretionary authority, the provisions of this
Plan and to resolve, with discretionary authority, all disputed questions of
Plan interpretation and benefit eligibility.

         Section 8.3. Finality of Committee Determinations. Determinations by
the Committee, and any interpretation, rule, or decision adopted by the
Committee under the Plan or in administering the Plan, shall be final and
binding for all purposes and upon all interested persons and their heirs and
personal representatives.

                                   ARTICLE IX

                              NO EMPLOYMENT RIGHTS

         No provisions of the Plan or any action taken by the Corporation,
Guidant, the Board of Directors, or the Committee shall give any person the
right to be retained in the employ of the Guidant, and Guidant's power to
dismiss or discharge any Participant is specifically reserved.

                                    ARTICLE X

                                  MISCELLANEOUS

         Section 10.1. Amendment, Suspension, and Termination. The Board of
Directors shall have the right to amend, suspend, or terminate the Plan at any
time; provided, however, that no such amendment, suspension, or termination may
reduce the benefits accrued under the Plan by a Participant who has begun
receiving benefit payments under the Plan as of the date of the amendment,
suspension, or termination, or reduce the Excess Salary Reduction Contributions
(exclusive of earnings) credited to a Participant prior to the date of the
amendment, suspension, or termination. The Committee shall also have the right
to amend any provision of the Plan except provisions of Articles IX and X.

         Section 10.2. Board of Directors' Power to Delegate Authority. The
Board of Directors may, in its discretion, delegate to any person or persons all
or any part of the Board of Directors' authority and responsibility under the
Plan, including, without limitation, the authority to amend the Plan.

         Section 10.3. Indemnification. The Corporation shall indemnify any
individual who is a director, officer, or employee of Guidant, or his or her

                                      -13-
<PAGE>   18

heirs and legal representatives, against all liability and reasonable expense,
including counsel fees, amounts paid in settlement, and amounts of judgments,
fines, or penalties, incurred by or imposed upon him or her in connection with
any claim, action, suit, or proceeding, whether civil, criminal, administrative,
or investigative, in connection with his or her duties under the Plan, provided
that such act or omission does not constitute gross negligence or willful
misconduct.

         Section 10.4. No Impact on Other Benefits. Amounts accrued under this
Plan shall not be included in a Participant's compensation for purposes of
calculating benefits under any other plan, program, or arrangement sponsored by
the Corporation or Guidant.

         Section 10.5. Incapacity of Recipient. If a Participant entitled to a
distribution under the Plan is living under guardianship or conservatorship,
distribution payable under the terms of the Plan to that Participant shall be
paid to the appointed guardian or conservator, and such payment shall be a
complete discharge of any liability of the Corporation under the Plan.

         Section 10.6. Data. Each Eligible Employee and Beneficiary shall
furnish the Committee with all proof of dates of birth and death and other
proofs necessary for the administration of the Plan, and neither the Committee
nor the Corporation shall be liable for the fulfillment of any obligations in
any way dependent upon such information unless or until the information has been
received by the Committee in a form satisfactory to it.

         Section 10.7. Misstatements. If the age, sex, or any other relevant
fact relating to any Participant or Beneficiary is found to have been misstated,
the benefit payable with respect to the Participant or Beneficiary shall be the
benefit that would have been provided on the basis of the correct information.
Any excess payments due to the misstatement shall be repaid to the Corporation
or withheld by it from any further amounts otherwise payable under the Plan, and
any underpayment shall be paid in full with the next payment due to the
Participant or Beneficiary.

         Section 10.8. Taxes. To the extent required by law, amounts credited
under the Plan shall be subject to federal social security and unemployment
taxes during the year in which the services giving rise to those contributions
were performed (or, if later, when the amounts are not subject to a substantial
risk of forfeiture). The Corporation shall withhold from any distributions made
from the Plan such amounts as may be required by federal, state, and local law.

         Section 10.9 Applicable Law. The Plan shall be construed and
administered under the laws of the State of Indiana, except to the extent that
such laws are preempted by federal law.

                                      -14-
<PAGE>   19

                  Section 10.10. Usage of Terms and Headings. Words in the
masculine gender shall include the feminine, and the singular shall include the
plural, and vice versa, unless qualified by the context. Any headings are for
ease of reference only and are not to be construed to alter the terms of the
Plan.

         Guidant Corporation has caused this restated plan document for The
Guidant Excess Benefit Plan -- Savings to be executed and adopted, effective
January 1, 1999, as evidenced by the signature of its duly authorized officer on
this ____ day of December, 1999.

                                            GUIDANT CORPORATION

                                            By:
                                               ---------------------------------

                                            Title
                                                 -------------------------------

                                      -15-<PAGE>   1
                                                                   EXHIBIT 10.27

                  THE GUIDANT EXCESS BENEFIT PLAN -- RETIREMENT

                   AMENDED AND RESTATED AS OF JANUARY 1, 2000

<PAGE>   2
                  THE GUIDANT EXCESS BENEFIT PLAN -- RETIREMENT

                   AMENDED AND RESTATED AS OF JANUARY 1, 2000

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                   <C>
ARTICLE I  ESTABLISHMENT AND PURPOSE OF THE PLAN.......................................................1
         Section 1.1       Establishment of the Plan...................................................1
         Section 1.2       Purpose of the Plan.........................................................1

ARTICLE II  DEFINITIONS................................................................................1
         Section 2.1       Additional Earnings.........................................................1
         Section 2.2       Annuity Starting Date.......................................................2
         Section 2.3       Basic Survivor's Benefit....................................................2
         Section 2.4       Beneficiary.................................................................2
         Section 2.5       Benefit Freeze..............................................................2
         Section 2.6       Board of Directors..........................................................2
         Section 2.7       Code........................................................................2
         Section 2.8       Committee...................................................................2
         Section 2.9       Contingent Beneficiary......................................................2
         Section 2.10      Deferred Service Benefit....................................................3
         Section 2.11      Dependent Child.............................................................3
         Section 2.12      Earnings Increase Retirement Benefit........................................3
         Section 2.13      Earnings Increase Survivor's Benefit........................................3
         Section 2.14      Eligible Employee...........................................................3
         Section 2.15      Employer....................................................................4
         Section 2.16      Guidant.....................................................................4
         Section 2.17      Guidant ESSOP...............................................................4
         Section 2.18      Guidant Retirement Plan.....................................................4
         Section 2.19      Limitations.................................................................4
         Section 2.20      Plan........................................................................4
         Section 2.21      Replacement Retirement Benefit..............................................4
         Section 2.22      Replacement Survivor's Benefit..............................................5
         Section 2.23      Retirement Benefit..........................................................5
         Section 2.24      Retirement ESOP Account.....................................................5
         Section 2.25      Retirement ESOP Benefit.....................................................6
         Section 2.26      Retirement ESOP Survivor's Benefit..........................................6
         Section 2.27      Special Retirement Benefit..................................................6
         Section 2.28      Special Survivor's Benefit..................................................7
         Section 2.29      Spouse......................................................................7
         Section 2.30      Supplemental Retirement Benefit.............................................7
</TABLE>

                                      -i-
<PAGE>   3

<TABLE>
<S>                                                                                                   <C>
         Section 2.31      Supplemental Survivor's Benefit.............................................7

ARTICLE III SUPPLEMENTAL RETIREMENT BENEFIT............................................................7
         Section 3.1       Eligible Employees..........................................................7
         Section 3.2       Supplemental Retirement Benefit.............................................7
         Section 3.3       Supplemental Survivor's Benefit.............................................8

ARTICLE IV EARNINGS INCREASE RETIREMENT BENEFIT........................................................9
         Section 4.1       Eligible Employees..........................................................9
         Section 4.2       Earnings Increase Retirement Benefit........................................9
         Section 4.3       Earnings Increase Survivor's Benefit........................................9

ARTICLE V REPLACEMENT RETIREMENT BENEFIT..............................................................10
         Section 5.1       Eligible Employees.........................................................10
         Section 5.2       Replacement Retirement Benefit.............................................10
         Section 5.3       Replacement Survivor's Benefit.............................................11

ARTICLE VI SPECIAL RETIREMENT BENEFIT.................................................................11
         Section 6.1       Eligible Employees.........................................................11
         Section 6.2       Special Retirement Benefit.................................................11
         Section 6.3       Special Survivor's Benefit.................................................11

ARTICLE VII EFFECT OF LIMITATIONS.....................................................................12

ARTICLE VIII FORM OF PAYMENT..........................................................................12

ARTICLE IX NATURE OF INTEREST OF PARTICIPANT..........................................................12
         Section 9.1       Unsecured General Creditor.................................................12
         Section 9.2       Trust Fund.................................................................13
         Section 9.3       No Right to Transfer Interest..............................................13

ARTICLE X ADMINISTRATION..............................................................................13
         Section 10.1      Committee..................................................................13
         Section 10.2      Powers of the Committee....................................................13
         Section 10.3      Finality of Committee Determinations.......................................14

ARTICLE XI MISCELLANEOUS..............................................................................14
         Section 11.1      Amendment, Suspension, and Termination.....................................14
         Section 11.2      Board of Directors' Power to Delegate Authority............................14
         Section 11.3      Indemnification............................................................14
         Section 11.4      No Employment Rights.......................................................15
         Section 11.5      No Impact on Other Benefits................................................15
</TABLE>

                                      -ii-
<PAGE>   4

<TABLE>
<S>                                                                                                   <C>
         Section 11.6      Incapacity of Recipient....................................................15
         Section 11.7      Data.......................................................................15
         Section 11.8      Misstatements..............................................................15
         Section 11.9      Taxes......................................................................16
         Section 11.10     Applicable Law.............................................................16
         Section 11.11     Usage of Terms and Headings................................................16

APPENDIX A EMPLOYEES ELIGIBLE FOR SUPPLEMENTAL RETIREMENT BENEFITS....................................18

APPENDIX B EMPLOYEES ELIGIBLE FOR EARNINGS INCREASE RETIREMENT BENEFITS...............................19

APPENDIX C EMPLOYEES ELIGIBLE FOR REPLACEMENT RETIREMENT BENEFITS.....................................20

APPENDIX D EMPLOYEES ELIGIBLE FOR, AND DESCRIPTION OF, SPECIAL RETIREMENT BENEFITS....................21
</TABLE>

                                     -iii-
<PAGE>   5
                  THE GUIDANT EXCESS BENEFIT PLAN -- RETIREMENT
                  (AMENDED AND RESTATED AS OF JANUARY 1, 2000)

                                    ARTICLE I

                      ESTABLISHMENT AND PURPOSE OF THE PLAN

         Section 1.1 Establishment of the Plan. Guidant Corporation established
the Plan, effective as of September 25, 1995, as an unfunded plan of deferred
compensation for the benefit of a select group of management or highly
compensated employees. The Plan is hereby amended and restated, in its entirety,
effective as of January 1, 2000, except as otherwise expressly provided.

         Section 1.2 Purpose of the Plan. The purpose of the Plan is to provide
supplemental retirement income to (a) any Eligible Employee whose benefit under
the Guidant Retirement Plan is limited by the Limitations and (b) any other
Eligible Employee who is entitled to receive an Earnings Increase Retirement
Benefit, a Replacement Retirement Benefit, or a Special Retirement Benefit under
the Plan. The Plan also provides supplemental survivor's income to certain
beneficiaries of Eligible Employees who are entitled to benefits under this
Plan.
                                   ARTICLE II

                                   DEFINITIONS

         The following words and phrases, as used in this Plan, have the
following meanings:

         Section 2.1 Additional Earnings. The term "Additional Earnings" means
the amount of bonuses deferred by an Eligible Employee under a nonqualified
deferred compensation plan that, if not for that deferral and notwithstanding
the application of Code section 401(a)(17), would have been included in earnings
for purposes of calculating the Eligible Employee's benefits under

                                      -1-
<PAGE>   6

the Guidant Retirement Plan. "Additional Earnings" shall not include any special
termination or severance payment paid by an Employer.

         Section 2.2 Annuity Starting Date. The term "Annuity Starting Date"
means the date as of which payment of an Eligible Employee's benefits under this
Plan begins.

         Section 2.3 Basic Survivor's Benefit. The term "Basic Survivor's
Benefit" means the benefit payable under the Guidant Retirement Plan, after the
death of an Eligible Employee, to the Spouse, Dependent Child, or Contingent
Beneficiary of the Eligible Employee.

         Section 2.4 Beneficiary. The term "Beneficiary" means the Spouse,
Dependent Child, or Contingent Beneficiary who is eligible to receive a Basic
Survivor's Benefit under the Guidant Retirement Plan after the death of an
Eligible Employee.

         Section 2.5 Benefit Freeze. The term "Benefit Freeze" means the
limitations on benefit accruals imposed by Section 17 of the Guidant Retirement
Plan.

         Section 2.6 Board of Directors. The term "Board of Directors" means the
Board of Directors of Guidant.

         Section 2.7 Code. The term "Code" means the Internal Revenue Code of
1986, as amended and interpretive regulations.

         Section 2.8 Committee. The term "Committee" means the Employee Benefits
Committee designated pursuant to Section 10.1 to administer the Plan.

         Section 2.9 Contingent Beneficiary. The term "Contingent Beneficiary"
means a Dependent Child of an Eligible Employee who has been named in accordance
with Section 5 of the Guidant Retirement Plan to receive Retirement Benefit
payments after the death of a retired Eligible Employee.

                                      -2-
<PAGE>   7

         Section 2.10 Deferred Service Benefit. The term "Deferred Service
Benefit" means the vested retirement benefit payable to an Eligible Employee, in
accordance with the terms of the Guidant Retirement Plan, after the Eligible
Employee has terminated service with all Employers for reasons other than
retirement or death.

         Section 2.11 Dependent Child. The term "Dependent Child" means (a) any
unmarried natural or legally adopted child of an Eligible Employee or retired
Eligible Employee, and (b) any unmarried stepchild of an Eligible Employee or
retired Eligible Employee who, at the time of the Eligible Employee's or retired
Eligible Employee's death, has not attained age 23, provided that, at the time
of the Eligible Employee's or retired Eligible Employee's death, the child or
stepchild either was residing in the Eligible Employee's or retired Eligible
Employee's household or was receiving at least one-half of his support from the
Eligible Employee or retired Eligible Employee.

         Section 2.12 Earnings Increase Retirement Benefit. The term "Earnings
Increase Retirement Benefit" means a benefit that is payable to an Eligible
Employee in accordance with Article IV of this Plan.

         Section 2.13 Earnings Increase Survivor's Benefit. The term "Earnings
Increase Survivor's Benefit" means a benefit that is payable to a Beneficiary in
accordance with Article IV of this Plan.

         Section 2.14 Eligible Employee. The term "Eligible Employee" means a
member of a select group of management or highly compensated employees of an
Employer who has been designated to receive a benefit pursuant to Article III,
IV, V, or VI of this Plan.

         Section 2.15 Employer. The term "Employer" means Guidant and any other
entity that has adopted the Guidant Retirement Plan.

                                      -3-
<PAGE>   8

         Section 2.16 Guidant. The term "Guidant" means Guidant Corporation.

         Section 2.17 Guidant ESSOP. The term "Guidant ESSOP" means The Guidant
Employee Savings and Stock Ownership Plan, a defined contribution retirement
plan maintained by Guidant. Whenever a reference to a provision of the Guidant
ESSOP is made in this Plan, it also shall include, to the extent required by the
context, a reference to any successor to that provision.

         Section 2.18 Guidant Retirement Plan. The term "Guidant Retirement
Plan" means The Guidant Retirement Plan, a defined benefit retirement plan
maintained by Guidant. Whenever a reference to a provision of the Guidant
Retirement Plan is made in this Plan, it also shall include, to the extent
required by the context, a reference to any successor to that provision.

         Section 2.19 Limitations. The term "Limitations" means:

         (a) the limitation on compensation imposed by Code section 401(a)(17),
as reflected in the applicable provisions of the Guidant Retirement Plan; and

         (b) the limitation on benefits imposed by Code section 415, as
reflected in the applicable provisions of the Guidant Retirement Plan.

         Section 2.20 Plan. The term "Plan" means "The Guidant Excess Benefit
Plan -- Retirement" as set forth in this instrument, as it may be amended from
time to time.

         Section 2.21 Replacement Retirement Benefit. The term "Replacement
Retirement Benefit" means a benefit that is payable to an Eligible Employee in
accordance with Article V of this Plan.

         Section 2.22 Replacement Survivor's Benefit. The term "Replacement
Survivor's Benefit" means a benefit that is payable to a Beneficiary in
accordance with Article V of this Plan.

                                      -4-
<PAGE>   9

         Section 2.23 Retirement Benefit. The term "Retirement Benefit" means
the "Normal Retirement Benefit" or the "Early Retirement Benefit" (whichever is
applicable) payable under the Guidant Retirement Plan to an Eligible Employee
who retires in accordance with the terms of the Guidant Retirement Plan.

         Section 2.24 Retirement ESOP Account. The term "Retirement ESOP
Account" means, as of the determination date, that portion of an Eligible
Employee's account balance under the Guidant ESSOP that is attributable to
contributions made pursuant to subsection 19.04(b) of the Guidant ESSOP and
earnings on those contributions, increased by any withdrawals taken from that
portion of the Eligible Employee's account before the determination date and any
outstanding loan balance attributable to that portion of the Eligible Employee's
account as of the determination date. The term "Retirement ESOP Account" also
includes that portion of the Eligible Employee's balance, as of the
determination date, under The Guidant Excess Benefit Plan--Savings that is
attributable to contributions made pursuant to section 5.2 of that plan and
earnings on those contributions, increased by any withdrawals taken from that
portion of the Eligible Employee's account in that plan before the determination
date. Except for purposes of Subsection 2.26(a) and the second sentence of
Section D.2 in Appendix D, the determination date referred to in this Section is
the Eligible Employee's Annuity Starting Date. For purposes of Subsection
2.26(a) and the second sentence of Section D.2 in Appendix D, the determination
date is the date of the Eligible Employee's death.

         Section 2.25 Retirement ESOP Benefit. Effective as of the inception of
this Plan, the term "Retirement ESOP Benefit" means an Eligible Employee's
Retirement ESOP Account, expressed in and actuarially equivalent to the form in
which the Eligible Employee elects to

                                      -5-
<PAGE>   10

receive benefits under the Guidant Retirement Plan (or, if different, the form
in which a Special Retirement Benefit is payable to the Eligible Employee under
Appendix D). Actuarial equivalence shall be determined using the 1971 Group
Annuity Mortality tables (with 85% male lives and 15% female lives) and an
interest rate of 7%.

         Section 2.26 Retirement ESOP Survivor's Benefit. The term "Retirement
ESOP Survivor's Benefit" means:

         (a)  with respect to an Eligible Employee who dies before his or her
              Annuity Starting Date, the Eligible Employee's Retirement ESOP
              Account, expressed as a life annuity starting at the Eligible
              Employee's death or, if later, the Eligible Employee's earliest
              retirement date under the Guidant Retirement Plan, adjusted for
              early commencement in accordance with the applicable factors
              specified in the Guidant Retirement Plan, and then multiplied by
              50%; or

         (b)  with respect to an Eligible Employee who dies after his or her
              Annuity Starting Date, the Eligible Employee's Retirement ESOP
              Benefit multiplied by the applicable contingent annuity
              percentage, which is the percentage of the Eligible Employee's
              Retirement Benefit or Deferred Service Benefit that is payable to
              the Eligible Employee's Beneficiary after the Eligible Employee's
              death.

         Section 2.27 Special Retirement Benefit. The term "Special Retirement
Benefit" means a benefit that is payable to an Eligible Employee in accordance
with Article VI of this Plan.

         Section 2.28 Special Survivor's Benefit. The term "Special Survivor's
Benefit" means a benefit that is payable to a Beneficiary in accordance with
Article VI of this Plan.

                                      -6-
<PAGE>   11

         Section 2.29 Spouse. The term "Spouse" means a spouse as defined in
Section 2 of the Guidant Retirement Plan.

         Section 2.30 Supplemental Retirement Benefit. The term "Supplemental
Retirement Benefit" means a benefit that is payable to an Eligible Employee in
accordance with Article III of this Plan.

         Section 2.31 Supplemental Survivor's Benefit. The term "Supplemental
Survivor's Benefit" means a benefit that is payable to a Beneficiary in
accordance with Article III of this Plan.

                                  ARTICLE III
                        SUPPLEMENTAL RETIREMENT BENEFIT

         Section 3.1 Eligible Employees. Except as otherwise provided in this
Article III, an individual is eligible to receive a Supplemental Retirement
Benefit if (a) the individual's Retirement Benefit or Deferred Service Benefit,
determined without regard to the Limitations, would exceed his or her Retirement
Benefit or Deferred Service Benefit determined after taking the Limitations into
account; and (b) the individual is in the classification described in Appendix A
to this Plan.

         Section 3.2 Supplemental Retirement Benefit. Upon the retirement or
other termination of employment (other than by death) of an Eligible Employee
who is in the classification described in Appendix A to this Plan, a
Supplemental Retirement Benefit shall be payable to the Eligible Employee equal
to the excess, if any, of (b) over (a), where (a) is the Eligible Employee's
Retirement Benefit or Deferred Service Benefit, as applicable, and (b) is the
Eligible Employee's hypothetical Retirement Benefit or Deferred Service Benefit,
as applicable,

                                      -7-
<PAGE>   12

determined by taking into account the Eligible Employee's Additional Earnings
and without regard to the Limitations. Payment of the Supplemental Retirement
Benefit shall begin when the Eligible Employee begins receiving his or her
Retirement Benefit or Deferred Service Benefit. Under no circumstances will a
Supplemental Retirement Benefit be payable to an Eligible Employee entitled to
receive an Earnings Increase Retirement Benefit, a Replacement Retirement
Benefit, or a Special Retirement Benefit.

         Section 3.3 Supplemental Survivor's Benefit. Upon the death of an
Eligible Employee who is in the classification described in Appendix A, a
Supplemental Survivor's Benefit shall be payable to the Eligible Employee's
Beneficiary equal to the excess, if any, of (b) over (a), where (a) is the
Beneficiary's Basic Survivor's Benefit, and (b) is the Beneficiary's
hypothetical Basic Survivor's Benefit determined by taking into account the
Eligible Employee's Additional Earnings and without regard to the Limitations.
Payment of the Supplemental Survivor's Benefit shall begin when the Beneficiary
begins receiving his or her Basic Survivor's Benefit. Under no circumstances
will a Supplemental Survivor's Benefit be payable to a Beneficiary entitled to
receive an Earnings Increase Survivor's Benefit, a Replacement Survivor's
Benefit, or a Special Survivor's Benefit.

                                      -8-
<PAGE>   13

                                   ARTICLE IV

                      EARNINGS INCREASE RETIREMENT BENEFIT

         Section 4.1 Eligible Employees. An individual is eligible to receive an
Earnings Increase Retirement Benefit if (a) the individual is named in Appendix
D to the Guidant Retirement Plan, and (b) the individual is named in Appendix B
to this Plan.

         Section 4.2 Earnings Increase Retirement Benefit. Upon the retirement
or other termination of employment (other than death) of an Eligible Employee
listed in Appendix B to this Plan, an Earnings Increase Retirement Benefit shall
be payable to the Eligible Employee equal to the excess, if any, of (b) over
(a), where (a) is the Eligible Employee's Retirement Benefit or Deferred Service
Benefit, as applicable, and (b) is the Eligible Employee's hypothetical
Retirement Benefit or Deferred Service Benefit, as applicable, determined by
taking into account the Eligible Employee's Additional Earnings and without
regard to the Limitations and as if the Eligible Employee was entitled to the
additional benefits described in section 17.02 of the Guidant Retirement Plan.
Payment of the Earnings Increase Retirement Benefit shall begin when the
Eligible Employee begins receiving his or her Retirement Benefit or Deferred
Service Benefit.

         Section 4.3 Earnings Increase Survivor's Benefit. Upon the death of an
Eligible Employee named in Appendix B, an Earnings Increase Survivor's Benefit
shall be payable to the Eligible Employee's Beneficiary equal to the excess, if
any, of (b) over (a), where (a) is the Beneficiary's Basic Survivor's Benefit,
and (b) is the Beneficiary's hypothetical Basic Survivor's Benefit determined by
taking into account the Eligible Employee's Additional Earnings and without
regard to the Limitations and as if the Eligible Employee was entitled to the
additional benefits described in section 17.02 of the Guidant Retirement Plan.
Payment of the Earnings Increase Survivor's Benefit shall begin when the
Beneficiary begins receiving his or her Basic Survivor's Benefit.

                                      -9-
<PAGE>   14

                                    ARTICLE V

                         REPLACEMENT RETIREMENT BENEFIT

         Section 5.1 Eligible Employees. An individual is eligible to receive a
Replacement Retirement Benefit if the individual is named in Appendix C to this
Plan.

         Section 5.2 Replacement Retirement Benefit. Upon the retirement or
other termination of employment (other than death) of an Eligible Employee
listed in Appendix C to this Plan, a Replacement Retirement Benefit shall be
payable to the Eligible Employee equal to the excess, if any, of (b) over (a),
where (a) is the sum of (1) the Eligible Employee's Retirement Benefit or
Deferred Service Benefit, as applicable, and (2) the Eligible Employee's
Retirement ESOP Benefit; and (b) is the Eligible Employee's hypothetical
Retirement Benefit or Deferred Service Benefit, as applicable, determined by
taking into account the Eligible Employee's Additional Earnings and all of the
Eligible Employee's service (as defined in The Lilly Retirement Plan) with, and
earnings (as defined in The Lilly Retirement Plan) received from, the Employer,
Eli Lilly and Company ("Lilly") or any affiliate of Lilly, and without regard to
the Limitations and the Benefit Freeze, and without proration for years of
service less than 35 pursuant to subparagraph 4.01(a)(1) of the Guidant
Retirement Plan. Payment of the Replacement Retirement Benefit shall begin when
the Eligible Employee begins receiving his or her Retirement Benefit or Deferred
Service Benefit.

         Section 5.3 Replacement Survivor's Benefit. Except as otherwise
provided in Appendix D, upon the death of an Eligible Employee named in Appendix
C, a Replacement Survivor's Benefit shall be payable to the Eligible Employee's
Beneficiary equal to the excess, if any, of (b) over (a), where (a) is the sum
of (1) the Beneficiary's Retirement ESOP Survivor's

                                      -10-
<PAGE>   15

Benefit and (2) the Beneficiary's Basic Survivor's Benefit, and (b) is the
Beneficiary's hypothetical Basic Survivor's Benefit determined by taking into
account the Eligible Employee's Additional Earnings and all of the Eligible
Employee's service (as defined in The Lilly Retirement Plan) with, and earnings
(as defined in The Lilly Retirement Plan) received from, the Employer, Eli Lilly
and Company ("Lilly") or any affiliate of Lilly, and without regard to the
Limitations and the Benefit Freeze and without proration for years of service
less than 35 pursuant to subparagraph 4.01(a)(1) of the Guidant Retirement Plan.
Payment of the Replacement Survivor's Benefit shall begin when the Beneficiary
begins receiving his or her Basic Survivor's Benefit.

                                   ARTICLE VI

                           SPECIAL RETIREMENT BENEFIT

         Section 6.1 Eligible Employees. An individual is eligible to receive a
Special Retirement Benefit if the individual is named in Appendix D to this
Plan.

         Section 6.2 Special Retirement Benefit. The amount of an Eligible
Employee's Special Retirement Benefit and the timing and form of payment of that
benefit (if different from that provided in Articles V and VIII) shall be
determined as set forth in Appendix D to this Plan.

         Section 6.3 Special Survivor's Benefit. If Appendix D to this Plan so
provides, the Beneficiary of an Eligible Employee will be entitled to a Special
Survivor's Benefit after the Eligible Employee's death. The amount of any
Special Survivor's Benefit and the form of payment (if different from that
provided in Articles V and VIII) shall be determined as set forth in Appendix D
to this Plan.

                                      -11-
<PAGE>   16

                                   ARTICLE VII

                              EFFECT OF LIMITATIONS

         To the extent that post-retirement indexing of the Code section 415
limits increases the amount that may be paid to an Eligible Employee (or to the
Eligible Employee's Beneficiary) under the Guidant Retirement Plan, there shall
be a corresponding decrease in the benefit payable under this Plan.

                                  ARTICLE VIII

                                 FORM OF PAYMENT

         Except as provided in Appendix D, any benefit payable under this Plan
shall be payable to the Eligible Employee or Beneficiary, as applicable, in the
same manner as the Retirement Benefit, Deferred Service Benefit, or Basic
Survivor's Benefit, as applicable, payable to that individual from the Guidant
Retirement Plan, and it shall be subject to the same actuarial adjustments that
apply to the benefit payable to the Eligible Employee or Beneficiary from the
Guidant Retirement Plan.
                                   ARTICLE IX

                        NATURE OF INTEREST OF PARTICIPANT

         Section 9.1 Unsecured General Creditor. The interests of Eligible
Employees and Beneficiaries in the Plan shall be that of unsecured general
creditors, with no secured or preferential right to any assets of Guidant or any
Employer or any other party for payment of benefits under this Plan. Any
property held by Guidant or any Employer for the purpose of generating the cash
flow for benefit payments shall remain its general, unpledged, and unrestricted
assets. Any Employer's obligation under the Plan shall be an unfunded and
unsecured promise to pay benefits in the future.

         Section 9.2 Trust Fund. The applicable Employer shall be responsible
for the payment of benefits provided under the Plan. At its discretion, the
Employer may establish one or more

                                      -12-
<PAGE>   17

trusts, with such trustees as the Board of Directors may approve, for the
purpose of providing for the payment of Plan benefits. Any trustee so appointed
shall be bonded in a manner satisfactory to the Employer. Whether or not such a
trust is irrevocable, its assets shall at all times be subject to the claims of
the Employer's general creditors in the event of the Employer's insolvency. To
the extent any benefits provided under the Plan are paid from such a trust, the
Employer shall have no further obligation to pay Plan benefits. Plan benefits
not paid from the trust shall remain the obligation of the Employer.

         Section 9.3 No Right to Transfer Interest. Rights to benefits payable
under the Plan are not subject in any manner to anticipation, alienation, sale,
transfer, assignment, pledge, or encumbrance.

                                    ARTICLE X

                                 ADMINISTRATION

         Section 10.1 Committee. This Plan shall be administered by The Guidant
Employee Benefits Committee, the members of which shall be selected by the Board
of Directors.

         Section 10.2 Powers of the Committee. The Committee's powers shall
include, but shall not be limited to, the power to adopt rules consistent with
the Plan; the power to decide all questions relating to the interpretation of
the terms and provisions of the Plan; and the power to resolve all other
questions arising under the Plan (including, without limitation, the power to
remedy possible ambiguities, inconsistencies, or omissions by a general rule or
particular decision). The Committee shall have discretionary authority to
exercise each of the foregoing powers.

                                      -13-
<PAGE>   18

         Section 10.3 Finality of Committee Determinations. Determinations by
the Committee and any interpretation, rule, or decision adopted by the Committee
under the Plan or in carrying out or administering the Plan shall be final and
binding for all purposes and upon all interested persons, their heirs, and their
personal representatives.
                                   ARTICLE XI

                                  MISCELLANEOUS

         Section 11.1 Amendment, Suspension, and Termination. The Board of
Directors shall have the right to amend, suspend, or terminate the Plan at any
time; provided, however, that no such amendment, suspension, or termination may
reduce the benefits accrued under the Plan of an Eligible Employee or
Beneficiary who began receiving payment of benefits under the Plan prior to the
date of the amendment, suspension, or termination. The Committee shall also have
the right to amend any provision of the Plan except Article X and this Article
XI.

         Section 11.2 Board of Directors' Power to Delegate Authority. The Board
of Directors may, in its discretion, delegate to any person or persons all or
any part of the Board's authority and responsibility under the Plan, including
without limitation the authority to amend the Plan.

         Section 11.3 Indemnification. Guidant shall indemnify any individual
who is a director, officer, or employee of an Employer, or his or her heirs and
legal representatives, against all liability and reasonable expense, including
counsel fees, amounts paid in settlement, and amounts of judgments, fines, or
penalties, incurred or imposed upon him or her in connection with any claim,
action, suit or proceeding, whether civil, criminal, administrative or
investigative, in connection with his or her duties under the Plan, provided
that such act or omission does not constitute gross negligence or willful
misconduct.

                                      -14-
<PAGE>   19

         Section 11.4 No Employment Rights. No provisions of the Plan or any
action taken by an Employer, the Board of Directors, or the Committee shall give
any person any right to be retained in the employ of an Employer, and each
Employer specifically reserves the right and power to dismiss or discharge any
Eligible Employee.

         Section 11.5 No Impact on Other Benefits. Amounts accrued under this
Plan shall not be included in an Eligible Employee's compensation for purposes
of calculating benefits under any other plan, program, or arrangement sponsored
by an Employer.

         Section 11.6 Incapacity of Recipient. If an Eligible Employee or
Beneficiary entitled to a distribution under the Plan is living under
guardianship or conservatorship, distributions payable under the terms of the
Plan to the recipient shall be paid to the appointed guardian or conservator,
and such payment shall be a complete discharge of any liability of all
Employers.

         Section 11.7 Data. Each Eligible Employee and Beneficiary shall furnish
the Employer with all proofs of dates of birth and death and proofs of continued
existence necessary for the administration of the Plan, and no Employer shall be
liable for the fulfillment of any obligations in any way dependent upon such
information unless and until the same shall have been received by the Employer
in form satisfactory to it.

         Section 11.8 Misstatements. If the age, sex, or any other relevant fact
relating to any person is found to have been misstated, the benefit payable to
an Eligible Employee or Beneficiary shall be the benefit that would have been
provided on the basis of the correct information. Any excess payments due to
misstatement shall be refunded to the Employer or withheld by it from any
further amounts otherwise payable, and any underpayment shall be paid in full
with the next payment due the Eligible Employee or beneficiary.

                                      -15-
<PAGE>   20

         Section 11.9 Taxes. To the extent required by law, amounts credited
under the Plan shall be subject to federal social security and unemployment
taxes during the year the services giving rise to such contributions were
performed (or, if later, when the amounts are not subject to a substantial risk
of forfeiture). Each Employer shall withhold from any distributions made
pursuant to the Plan such amounts as may be required by federal, state or local
law.

         Section 11.10 Applicable Law. The Plan shall be construed and
administered under the laws of the State of Indiana, except to the extent that
such laws are preempted by the Employee Retirement Income Security Act of 1974.

         Section 11.11 Usage of Terms and Headings. Words in the masculine
gender shall include the feminine, and the singular shall include the plural,
and vice versa, unless qualified by the context. Any headings are included for
ease of reference only, and are not to be construed to alter the terms of the
Plan.

         Guidant Corporation has caused this restated plan document for The
Guidant Excess Benefit Plan - Retirement to be executed and adopted, effective
January 1, 2000, as evidenced by the signature of its duly authorized officer.

                                      -16-
<PAGE>   21

                                         GUIDANT CORPORATION

                                         By:_________________________________

                                         Title:_______________________________

                                         Date:_______________________________

                                      -17-
<PAGE>   22

                                   APPENDIX A

             EMPLOYEES ELIGIBLE FOR SUPPLEMENTAL RETIREMENT BENEFITS

         To be eligible for Supplemental Retirement Benefits, an employee must
be a regular employee employed in the United States (or a global service
employee eligible to participate in The Guidant Employee Savings and Stock
Ownership Plan) and employed in a classification of or equivalent to business
unit vice president or higher.

                                      -18-
<PAGE>   23

                                   APPENDIX B

          EMPLOYEES ELIGIBLE FOR EARNINGS INCREASE RETIREMENT BENEFITS

                                    J.B. King

                                      -19-
<PAGE>   24

                                   APPENDIX C

             EMPLOYEES ELIGIBLE FOR REPLACEMENT RETIREMENT BENEFITS

                                 James Baumgardt

                                  Keith Brauer

                                 Ronald Dollens

                                    Jay Graf

                                  Mark Harrold

                                   Rodney Nash

                                  Thomas Noble

                                  Dale Sebring

                                   Paul Thayer

                                      -20-
<PAGE>   25
                                   APPENDIX D

                   EMPLOYEES ELIGIBLE FOR, AND DESCRIPTION OF,

                           SPECIAL RETIREMENT BENEFITS

         Section D.1 van Oostrom Special Retirement Benefit. Upon his retirement
from the Employer, Richard van Oostrom shall be entitled to a Special Retirement
Benefit under the Plan equal to the excess, if any, of (b) over (a), where (a)
is his Retirement ESOP Benefit and (b) is the hypothetical Retirement Benefit
that would have been payable to him if he had been a United States citizen
during all of his employment with the Employer, Eli Lilly and Company ("Lilly"),
and any affiliate of Lilly, and determined by taking into account his Additional
Earnings and all of his service (as defined in The Lilly Retirement Plan) with,
and earnings (as defined in The Lilly Retirement Plan) received from the
Employer, Lilly and any affiliate of Lilly, without regard to the Limitations
and the Benefit Freeze, and without proration for years of service less than 35
pursuant to subparagraph 4.01(a)(1) of the Guidant Retirement Plan.
Notwithstanding the foregoing, van Oostrom's unpaid leave of absence that begins
as of January 1, 2000 shall be treated as service for purposes of this Section,
irrespective of the extent to which it would be service creditable under The
Lilly Retirement Plan. The benefit due to van Oostrom under this Section shall
be paid to him in a lump sum cash payment, calculated as of the first day of the
month following van Oostrom's retirement from the Employer and using an interest
rate of seven percent (7%) and the 1983 Group Annuity Mortality Table (weighted
100% male).

         Section D.2 van Oostrom Special Survivor's Benefit. If Richard van
Oostrom dies before he retires from the Employer, his Beneficiary shall be
entitled to a Special Survivor's Benefit under the Plan as described in this
paragraph. The Special Survivor's Benefit shall be

                                      -21-
<PAGE>   26

equal to the difference excess, if any, of (b) over (a), where (a) is the
Beneficiary's Retirement ESOP Survivor's Benefit, and (b) is the hypothetical
Basic Survivor's Benefit that would have been payable to the Beneficiary after
van Oostrom's death if van Oostrom had been a United States citizen during all
of his employment with the Employer, Eli Lilly and Company ("Lilly"), and any
affiliate of Lilly, and determined by taking into account his Additional
Earnings and all of his service (as defined in The Lilly Retirement Plan) with,
and earnings (as defined in The Lilly Retirement Plan) from the Employer, Lilly
and any affiliate of Lilly, without regard to the Limitations and the Benefit
Freeze, and without proration for years of service less than 35 pursuant to
subparagraph 4.01(a)(1) of the Guidant Retirement Plan. Payment of the Special
Survivor's Benefit described in this paragraph shall be made in a lump sum cash
payment calculated as of the first day of the month following van Oostrom's
death, using the mortality and interest rate assumptions specified in Section
D.1 for the calculation of the lump sum Special Retirement Benefit payable to
Richard van Oostrom.

         If van Oostrom dies after he retires from the Employer but before he is
paid the lump sum payment due to him under Section D.1, then, if his Beneficiary
is his Spouse, and his Spouse survives him, van Oostrom's Beneficiary will be
entitled to receive, as a Special Survivor's Benefit, the lump sum payment that
is owing to van Oostrom under Section D.1 as of the date of his death.

         Section D.3 Breeding Special Retirement Benefit. Upon his retirement
from the Employer, David Breeding shall be entitled to receive, in lieu of the
Replacement Retirement Benefit to which he would otherwise be entitled under
Article V, a Special Retirement Benefit under the Plan equal to the excess, if
any, of (b) over (a), where (a) is the sum of (1) Breeding's

                                      -22-
<PAGE>   27

Retirement Benefit and (2) Breeding's Retirement ESOP Benefit; and (b) is
Breeding's hypothetical Retirement Benefit determined (1) by taking into account
Breeding's Additional Earnings and all of his service (as defined in The Lilly
Retirement Plan) with, and earnings (as defined in The Lilly Retirement Plan)
received from, the Employer, Eli Lilly and Company ("Lilly") and any affiliate
of Lilly, (2) without regard to the Limitations and the Benefit Freeze, and,
effective as of January 1,2000, without proration for years of service less than
35 pursuant to subparagraph 4.01(a)(1) of the Guidant Retirement Plan, and (3)
as if Breeding's combined age and years of service (as defined in the Guidant
Retirement Plan) totaled at least 90 as of the date of Breeding's retirement
from the Employer.

         Section D.4 Breeding Special Survivor's Benefit. Upon the death of
David Breeding, a Special Survivor's Benefit shall be payable to Breeding's
Beneficiary in lieu of the Replacement Survivor's Benefit that would otherwise
be payable to the Beneficiary under Article V. The Special Survivor's Benefit
shall be equal to the excess, if any, of (b) over (a), where (a) is the sum of
(1) the Beneficiary's Basic Survivor's Benefit and (2) the Beneficiary's
Retirement ESOP Survivor's Benefit; and (b) is the Beneficiary's hypothetical
Basic Survivor's Benefit determined (1) by taking into account Breeding's
Additional Earnings and all of his service (as defined in The Lilly Retirement
Plan) with, and earnings (as defined in The Lilly Retirement Plan) received from
the Employer, Eli Lilly and Company ("Lilly") and any affiliate of Lilly), (2)
without regard to the Limitations and the Benefit Freeze and, effective as of
January 1,2000, without proration for years of service less than 35 pursuant to
subparagraph 4.01(a)(1) of the Guidant Retirement Plan, and (3) as if Breeding's
combined age and years of service (as defined in the Guidant Retirement Plan)
totaled at least 90 as of the date of Breeding's retirement from the Employer.

                                      -23-
<PAGE>   28

         Section D.5 Yahner Special Retirement Benefit. Upon his termination of
employment with the Employer, Joseph A. Yahner shall be entitled to receive, in
lieu of the Replacement Retirement Benefit to which he would otherwise become
entitled under Article V, a Special Retirement Benefit, which shall be
determined as described in this Section.

         (a)  Yahner's Special Retirement Benefit shall commence as of the first
              day of the month following Yahner's termination of employment with
              the Employer, and it shall be payable in monthly payments, ending
              with the payment due on the first day of the month in which Yahner
              dies.

         (b)  Until the combined total of Yahner's age and his years of service
              (as defined in the Guidant Retirement Plan) equals 80, the amount
              of Yahner's Special Retirement Benefit under this Plan shall be
              $8,333.33 per month. Once the combined total of Yahner's age and
              his years of service (as defined in the Guidant Retirement Plan)
              equals 80, his Special Retirement Benefit under this Plan shall be
              reduced to the amount determined under the following paragraph
              (c).

         (c)  Beginning as of the first day of the month after the combined
              total of Yahner's age and his years of service (as defined in the
              Guidant Retirement Plan) first reaches 80, the Special Retirement
              Benefit payable to him under this Plan for any month will be the
              excess, if any of $8,333.33 over the greater of (1) the monthly
              benefit that Yahner is receiving for that month under the Guidant
              Retirement Plan or (2) the benefit he would have been entitled to
              receive under the Guidant Retirement Plan for that month had he
              elected to commence receiving benefits under the Guidant
              Retirement Plan.

                                      -24-
<PAGE>   29

         Section D.6 Yahner Special Survivor's Benefit. Upon the death of Joseph
A. Yahner, his Beneficiary shall be entitled to a Special Survivor's Benefit
under the Plan. Except as provided in the following sentence, the monthly amount
of the Special Survivor's Benefit shall be equal to the excess of $8,333.33 over
the monthly amount of the Basic Survivor Benefit that is payable to the
Beneficiary under the Guidant Retirement Plan. If Yahner dies after his "annuity
starting date" under the Guidant Retirement Plan, and he elected to receive his
benefit under that plan in a single life annuity, the monthly amount of the
Special Survivor's Benefit payable pursuant to the preceding sentence shall be
reduced by the monthly amount that would have been payable to Yahner's
Beneficiary under the Guidant Retirement Plan after Yahner's death had Yahner
elected to receive his benefit under that plan in Form 2 (as defined in the
Guidant Retirement Plan).

         Section D.7 Management Committee Special Survivor's Benefit. In lieu of
the Replacement Survivor's Benefit that would otherwise be payable to him or her
under Article V, the Beneficiary of each of the Eligible Employees specified in
Subsection (a) below shall be entitled to the Special Survivor's Benefit
specified in Subsection (b) below if (1) the Eligible Employee dies after his
Annuity Starting Date and (2) the Eligible Employee elected to receive his
Retirement Benefit or Deferred Service Benefit in Form 2 (as defined in the
Guidant Retirement Plan).

         (a)  The Eligible Employees referenced above are Keith Brauer, Ronald
              Dollens, Jay Graf, and Rodney Nash.

         (b)  The Special Survivor's Benefit payable to a Beneficiary under this
              Section is equal to the excess, if any, of (2) over (1), where (1)
              is the monthly benefit payable to the

                                      -25-
<PAGE>   30

              Eligible Employee immediately before his death under the
              combination of this Plan and the Guidant Retirement Plan, and (2)
              is the Beneficiary's Basic Survivor's Benefit.

         Section D.8 Baumgardt Special Retirement Benefit. Upon his retirement
from the Employer, James Baumgardt shall be entitled to receive, in lieu of the
Replacement Retirement Benefit that he would otherwise be entitled to receive
under Article V, a Special Retirement Benefit under the Plan equal to the
excess, if any, of (b) over (a), where (a) is the sum of (1) Baumgardt's
Retirement Benefit and (2) Baumgardt's Retirement ESOP Benefit, and (b) is
Baumgardt's hypothetical Retirement Benefit determined (1) by taking into
account Baumgardt's Additional Earnings and all of his service (as defined in
The Lilly Retirement Plan) with, and earnings (as defined in The Lilly
Retirement Plan) received from, the Employer, Eli Lilly and Company ("Lilly")
and any affiliate of Lilly, (2) without regard to the Limitations and the
Benefit Freeze and without proration for years of service less than 35 pursuant
to subparagraph 4.01(a)(1) of the Guidant Retirement Plan, and (3) as if
Baumgardt's combined age and years of service (as defined in the Guidant
Retirement Plan totaled 86.083 as of the date of Baumgardt's retirement form the
Employer.

         Section D.9 Baumgardt's Special Survivor's Benefit. Provided that James
Baumgardt elects to receive his Retirement Benefit in Form 2 (as defined in the
Guidant Retirement Plan), then, upon his death, in lieu of the Replacement
Survivor's Benefit that would otherwise be payable to her under Article V,
Baumgardt's Beneficiary will be entitled to a Special Survivor's Benefit equal
to the excess, if any, of (a) over (b), where (a) is the monthly benefit payable
to

                                      -26-
<PAGE>   31

Baumgardt immediately before his death under the combination of the Plan and the
Guidant Retirement Plan, and (2) is the Basic Survivor Benefit.

         Section D.10 Cornelius Special Retirement and Survivor's Benefits. Upon
his Retirement from the Employer, James Cornelius shall be entitled to receive a
Special Retirement Benefit under the Plan equal to (a) minus (b), where (a) is
52.5% of Cornelius' final average earnings (as defined in the Retirement Plan,
but without regard to the Limitations) from the Employer, and (b) is the sum of
(1) Cornelius' estimated Social Security Benefit (defined and calculated in
accordance with the terms of the Guidant Retirement Plan), (2) the agreed value
of Cornelius' original retirement benefit under The Lilly Retirement Plan (which
is $30,630.81 per month), (3) the agreed value of Cornelius' retirement stock
option grant (which is $11,666.67 per month), and (4) Cornelius' Retirement ESOP
Benefit. Upon the death of James Cornelius, his Beneficiary will be entitled to
receive a Special Survivor's Benefit equal to the monthly benefit payable to
Cornelius under the Plan immediately before his death.

         Section D.10 King Special Retirement and Survivor's Benefits. Upon his
retirement, J.B. King will be entitled to receive, in addition to his Earnings
Increase Retirement Benefit, a Special Retirement Benefit equal to $3,000 per
month for his life. Upon King's death, his Beneficiary will be entitled to
receive, in addition to her Earnings Increase Survivor's Benefit, a Special
Survivor's Benefit equal to $3,000 per month for her life.

                                      -27-

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