Document:

Exhibit 10.3

                              ZIMMER HOLDINGS, INC.
                            2001 STOCK INCENTIVE PLAN

      1. Purpose: The purpose of the 2001 Stock Incentive Plan is to secure for
the Company and its stockholders the benefits of the incentive inherent in
common stock ownership by the officers and key employees of the Company who will
be largely responsible for the Company's future growth and continued financial
success and by providing long-term incentives in addition to current
compensation to certain key executives of the Company who contribute
significantly to the long-term performance and growth of the Company. It is
intended that the former purpose will be effected through the granting of stock
options, stock appreciation rights, dividend equivalents, restricted stock and
deferred stock unit awards under the Plan and that the latter purpose will be
effected through an award conditionally granting performance units or
performance shares under the Plan, either independently or in conjunction with
and related to a nonqualified stock option grant under the Plan.

      2. Definitions: For purposes of this Plan:

      (a) "Affiliate" shall mean any entity in which the Issuer has, directly or
indirectly, an ownership interest of at least 20%.

      (b) "Code" shall mean the Internal Revenue Code of 1986, as amended.

      (c) "Common Stock" shall mean the Issuer's common stock.

      (d) "Company" shall mean the Issuer (Zimmer Holdings, Inc.) and its
Subsidiaries and Affiliates.

      (e) "Disability" or "Disabled" shall mean qualifying for and receiving
payments under a disability pay plan of the Company.

      (f) "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.

      (g) "Fair Market Value" shall mean the average of the high and low sale
prices of a share of Common Stock on the New York Stock Exchange composite tape
on the date of measurement or on any date as determined by the Committee and, if
there were no trades on such date, on the day on which a trade occurred next
preceding such date.

      (h) "Issuer" shall mean Zimmer Holdings, Inc.

      (i) "Prior Plans" shall mean the Bristol-Myers Squibb Company 1997 Stock
Incentive Plan and the Bristol-Myers Squibb Company 1983 Stock Option Plan.

      (j) "Retirement" shall mean termination of the employment of an employee
with the Company on or after (i) the employee's 65th birthday or (ii) the
employee's 55th birthday if the employee has completed 10 years of service with
the Company. For purposes of this Section 2(j) and all other purposes of this
Plan, Retirement shall also mean termination of employment of an employee with
the Company for any reason (other than the employee's death, Disability,
resignation, willful misconduct or activity deemed detrimental to the interests
of the Company)

<PAGE>

where, on termination, the employee's age plus years of service (rounded up to
the next higher whole number) equals at least 70 and the employee has completed
10 years of service with the Company and, where applicable, the employee has
executed a general release, a covenant not to compete and/or a covenant not to
solicit. For purposes of this Plan, service with Bristol-Myers Squibb and its
subsidiaries and affiliates before the effective date of the Plan shall be
included as service with the Company.

      (k) "Subsidiary" shall mean any corporation which at the time qualifies as
a subsidiary of the Issuer under the definition of "subsidiary corporation" in
Section 424 of the Code.

      3. Amount of Stock: (a) Annual Limitation. With respect to each calendar
year, the amount of stock which may be made subject to grants of options and
awards under the Plan shall not exceed an amount equal to 1.9% of the
outstanding shares of the Common Stock on January 1 of such year (or, in the
case of the 2001 year, on the effective date of the Plan) plus (i) in any year
the number of shares equal to the amount of shares that were available for
options and awards under the Plan in the prior year but were not made subject to
an option or award in such prior year, (ii) the number of shares that were
subject to options or awards granted hereunder that terminated, expired or were
cancelled, forfeited, exchanged or surrendered in the prior year without being
exercised, (iii) the number of shares participants tendered in the prior year to
pay the purchase price of options in accordance with Section 7(b)(5), and (iv)
the number of shares the Company retained or caused participants to surrender in
the prior year to satisfy Withholding Tax requirements in accordance with
Section 13. Options and awards granted under Sections 6 and 20 shall not be
considered in applying this limitation, to the extent provided in Sections 6 and
20.

(b) Individual Participant Limitation. No individual may be granted options or
awards under Section 7, 8, 9 or 10, in the aggregate, in respect of more than
2,000,000 shares of the Common Stock over the life of the Plan. Options and
awards granted under Sections 6 and 20 shall not be included in applying this
limitation, to the extent provided in Sections 6 and 20.

(c) Performance Unit, Performance Share, Restricted Stock and Deferred Stock
Unit Awards Limitation. The aggregate number of shares issued under performance
units and performance share awards made pursuant to Section 8, restricted stock
awards made pursuant to Section 9 and deferred stock unit awards made pursuant
to Section 10 may not exceed 25% of the available shares over the life of the
Plan.

(d) Maximum Number of Incentive Stock Options. The maximum number of shares with
respect to which incentive stock options may be granted under the Plan shall not
exceed 5,000,000 shares. Any shares subject to incentive stock options granted
under this Plan that terminate, expire or are cancelled, forfeited, exchanged or
surrendered without being exercised may again be subjected to an option or award
under the Plan.

(e) Adjustment. The limitations under Section 3(a), (b), (c) and (d) are subject
to adjustment in number and kind pursuant to Section 12.

                                       2
<PAGE>

(f) Treasury or Market Purchased Shares. Common Stock issued hereunder may be
authorized and unissued shares or issued shares acquired by the Company on the
market or otherwise.

      4. Administration: The Plan shall be administered under the supervision of
the Board of Directors of the Issuer, which may exercise its powers, to the
extent herein provided, through the agency of a Compensation and Management
Development Committee (the "Committee"), which shall be appointed by the Board
of Directors of the Issuer. The Compensation and Management Development
Committee shall consist of not less than two (2) members of the Board who are
intended to meet the definition of "outside director" under the provisions of
Section 162(m) of the Code and the definition of "non-employee directors" under
the provisions of the Exchange Act or rules or regulations promulgated
thereunder. In addition, the Board of Directors or the Committee may delegate in
writing any or all of its authority hereunder to one or more other committees or
subcommittees, and the initial grants to be made at the time of the spin-off of
the Issuer's stock from Bristol-Myers Squibb Company may be made by the
Compensation and Management Development Committee of the Board of Directors of
Bristol-Myers Squibb Company. To the extent that the Board of Directors or a
committee administers the Plan, references to the Committee shall mean the Board
of Directors or such committee.

      The Committee, from time to time, may adopt rules and regulations
("Regulations") for carrying out the provisions and purposes of the Plan and
make such other determinations, not inconsistent with the terms of the Plan, as
the Committee shall deem appropriate. The interpretation and construction of any
provision of the Plan by the Committee shall, unless otherwise determined by the
Board of Directors, be final and conclusive.

      The Committee shall maintain a written record of its proceedings. A
majority of the Committee shall constitute a quorum, and the acts of a majority
of the members present at any meeting at which a quorum is present, or acts
unanimously approved in writing, shall be the acts of the Committee.

      5. Eligibility: Options and awards may be granted only to present or
future officers and key employees of the Company, including Subsidiaries and
Affiliates which become such after the adoption of the Plan. Any officer or key
employee of the Company shall be eligible to receive one or more options or
awards under the Plan. Any director who is not an officer or employee of the
Company shall be ineligible to receive an option or award under the Plan. The
adoption of this Plan shall not be deemed to give any officer or employee any
right to an award or to be granted an option to purchase Common Stock, except to
the extent and upon such terms and conditions as may be determined by the
Committee.

      6. Grants as of Effective Date:

      (a) On the effective date of the Plan, the Issuer shall assume from
Bristol-Myers Squibb Company options and awards granted under the Prior Plans
that are outstanding immediately before the effective date of this Plan with
respect to the Company's officers and key employees (the "Prior Awards"). Except
as described below, the terms of the Prior Plans and the option and award
agreements in effect pursuant to the Prior Plans will continue to govern the
Prior Awards. However, as a result of the assumption, the Prior Awards will be
converted into options and

                                       3
<PAGE>

awards with respect to the Common Stock of the Issuer, and the number of shares
and, with respect to options, the exercise price and other appropriate terms
will be adjusted to reflect the spin-off of the Issuer from Bristol-Myers Squibb
Company. On and after the spin-off date, references in the option and award
agreements to Bristol-Myers Squibb will mean the Issuer. Any shares of the
Issuer's Common Stock that are subject to options and awards pursuant to the
Prior Awards will be issued under this Plan but will not be counted against the
limitations provided under Section 3 of the Plan. The Committee will administer
the Prior Awards, as converted into Common Stock of the Issuer.

      (b) As an alternative, the Committee may determine, as a result of certain
laws, rules or regulations in countries outside the United States, not to have
the Issuer assume certain Prior Awards.

      7. Stock Options: Stock options under the Plan shall consist of incentive
stock options under Section 422 of the Code or nonqualified stock options
(options not intended to qualify as incentive stock options), as the Committee
shall determine. In addition, the Committee may grant stock appreciation rights
in conjunction with an option, as set forth in Section 7(b)(11), or may grant
awards in conjunction with an option, as set forth in Section 7(b)(10) (an
"Associated Option").

      Each option shall be subject to the following terms and conditions:

      (a) Grant of Options. The Committee shall (1) select the officers and key
employees of the Company to whom options may from time to time be granted, (2)
determine whether incentive stock options or nonqualified stock options are to
be granted, (3) determine the number of shares to be covered by each option so
granted, (4) determine the terms and conditions (not inconsistent with the Plan)
of any option granted hereunder (including but not limited to restrictions upon
the options, conditions of their exercise, or restrictions on the shares of
Common Stock issuable upon exercise thereof), (5) determine whether nonqualified
stock options or incentive stock options granted under the Plan shall include
stock appreciation rights and, if so, the Committee shall determine the terms
and conditions thereof in accordance with Section 7(b)(11) hereof, (6) determine
whether any nonqualified stock options granted under the Plan shall be
Associated Options, and (7) prescribe the form of the instruments necessary or
advisable in the administration of options.

      (b) Terms and Conditions of Option. Any option granted under the Plan
shall be evidenced by a Stock Option Agreement entered into by the Company and
the optionee, in such form as the Committee shall approve, which agreement shall
be subject to the following terms and conditions and shall contain such
additional terms and conditions not inconsistent with the Plan, and in the case
of an incentive stock option not inconsistent with the provisions of the Code
applicable to incentive stock options, as the Committee shall prescribe:

            (1) Number of Shares Subject to an Option. The Stock Option
      Agreement shall specify the number of shares of Common Stock subject to
      the Agreement. If the option is an Associated Option, the number of shares
      of Common Stock subject to such Associated Option shall initially be equal
      to the number of performance units or performance shares

                                       4
<PAGE>

      subject to the award, but one share of Common Stock shall be canceled for
      each performance unit or performance share paid out under the award.

            (2) Option Price. The purchase price per share of Common Stock
      purchasable under an option will be determined by the Committee but will
      be not less than the Fair Market Value of a share of Common Stock on the
      date of the grant of the option, except as provided in Section 6, 19 or
      20.

            (3) Option Period. The period of each option shall be fixed by the
      Committee, but no option shall be exercisable after the expiration of ten
      years from the date the option is granted.

            (4) Consideration. Unless the Committee determines otherwise, each
      optionee, as consideration for the grant of an option, shall remain in the
      continuous employ of the Company for at least one year from the date of
      the granting of such option, and no option shall be exercisable until
      after the completion of such one year period of employment by the
      optionee.

            (5) Exercise of Option. An option may be exercised in whole or in
      part from time to time during the option period (or, if determined by the
      Committee, in specified installments during the option period) by giving
      written notice of exercise to the Company specifying the number of shares
      to be purchased. Such written notice must be accompanied by payment in
      full of the purchase price and Withholding Taxes (as defined in Section 13
      hereof), unless an election to defer receipt of shares is made under
      Section 15, due either (i) by certified or bank check, (ii) by payment
      through a broker in accordance with procedures permitted by Regulation T
      of the Federal Reserve Board, (iii) in shares of Common Stock owned by the
      optionee having a Fair Market Value at the date of exercise equal to such
      purchase price, provided that payment in shares of Common Stock will not
      be permitted unless at least 100 shares of Common Stock are required and
      delivered for such purpose, (iv) in any combination of the foregoing, or
      (v) by any other method that the Committee approves. At its discretion,
      the Committee may modify or suspend any method for the exercise of stock
      options, including any of the methods specified in the previous sentence.
      Delivery of shares for exercising an option shall be made either through
      the physical delivery of shares or through an appropriate certification or
      attestation of valid ownership. Shares of Common Stock used to exercise an
      option shall have been held by the optionee for the requisite period of
      time to avoid adverse accounting consequences to the Company with respect
      to the option. No shares shall be issued until full payment therefor has
      been made. An optionee shall have the rights of a stockholder only with
      respect to shares of stock that have been recorded on the Company's books
      on behalf of the optionee or for which certificates have been issued to
      the optionee.

            Notwithstanding anything in the Plan to the contrary, the Committee
      may, in its sole discretion, allow the exercise of a lapsed grant if the
      Committee determines that: (i) the lapse was solely the result of the
      Company's inability to execute the exercise of an option award due to
      conditions beyond the Company's control and (ii) the optionee made valid
      and reasonable efforts to exercise the award. In the event the Committee
      makes

                                       5
<PAGE>

      such a determination, the Company shall allow the exercise to occur as
      promptly as possible following its receipt of exercise instructions
      subsequent to such determination.

            (6) Nontransferability of Options. No option or stock appreciation
      right granted under the Plan shall be transferable by the optionee other
      than by will or by the laws of descent and distribution, and such option
      or stock appreciation right shall be exercisable, during the optionee's
      lifetime, only by the optionee.

            Notwithstanding the foregoing, the Committee may set forth in a
      Stock Option Agreement at the time of grant or thereafter, that the
      options (other than Incentive Stock Options) may be transferred to members
      of the optionee's immediate family, to one or more trusts solely for the
      benefit of such immediate family members and to partnerships in which such
      family members or trusts are the only partners. For this purpose,
      immediate family means the optionee's spouse, parents, children,
      stepchildren, grandchildren and legal dependants. Any transfer of options
      under this provision will not be effective until notice of such transfer
      is delivered to the Company.

            (7) Retirement and Termination of Employment Other than by Death or
      Disability. If an optionee shall cease to be employed by the Company for
      any reason (other than termination of employment by reason of death or
      Disability) after the optionee shall have been continuously so employed
      for one year after the granting of the option, or as otherwise determined
      by the Committee, the option shall be exercisable only to the extent that
      the optionee was otherwise entitled to exercise it at the time of such
      cessation of employment with the Company, unless otherwise determined by
      the Committee. If the cessation of employment is on account of Retirement,
      the option shall remain exercisable for the remainder of the option period
      set forth therein. If the cessation of employment is not on account of
      Retirement or death, the option shall remain exercisable for three months
      after such cessation of employment (or, if earlier, the end of the option
      period), unless the Committee determines otherwise. The Plan does not
      confer upon any optionee any right with respect to continuation of
      employment by the Company.

            (8) Disability of Optionee. An optionee who ceases to be employed by
      reason of Disability shall be treated as though the optionee remained in
      the employ of the Company until the earlier of (i) cessation of payments
      under a disability pay plan of the Company, (ii) the optionee's death, or
      (iii) the optionee's 65th birthday.

            (9) Death of Optionee. Except as otherwise provided in subsection
      (13), in the event of the optionee's death (i) while in the employ of the
      Company, (ii) while Disabled as described in subsection (8) or (iii) after
      cessation of employment due to Retirement, the option shall be fully
      exercisable by the executors, administrators, legatees or distributees of
      the optionee's estate, as the case may be, at any time following such
      death. In the event of the optionee's death after cessation of employment
      for any reason other than Disability or Retirement, the option shall be
      exercisable by the executors, administrators, legatees or distributees of
      the optionee's estate, as the case may be, at any time during the twelve
      month period following such death. Notwithstanding the foregoing, unless
      the Committee determines otherwise, in no event shall an option be

                                       6
<PAGE>

      exercisable unless the optionee shall have been continuously employed by
      the Company for a period of at least one year after the option grant, and
      no option shall be exercisable after the expiration of the option period
      set forth in the Stock Option Agreement. In the event any option is
      exercised by the executors, administrators, legatees or distributees of
      the estate of a deceased optionee, the Company shall be under no
      obligation to issue stock thereunder unless and until the Company is
      satisfied that the person or persons exercising the option are the duly
      appointed legal representatives of the deceased optionee's estate or the
      proper legatees or distributees thereof.

            (10) Long-Term Performance Awards. The Committee may from time to
      time grant nonqualified stock options under the Plan in conjunction with
      and related to an award of performance units or performance shares made
      under a Long-Term Performance Award as set forth in Section 8(b)(11). In
      such event, notwithstanding any other provision hereof, (i) the number of
      shares to which the Associated Option applies shall initially be equal to
      the number of performance units or performance shares granted by the
      award, but such number of shares shall be reduced on a one-share-for-one
      unit or share basis to the extent that the Committee determines, pursuant
      to the terms of the award, to pay to the optionee or the optionee's
      beneficiary the performance units or performance shares granted pursuant
      to such award, and (ii) such Associated Option shall be cancelable in the
      discretion of the Committee, without the consent of the optionee, under
      the conditions and to the extent specified in the award.

            (11) Stock Appreciation Rights. In the case of any option granted
      under the Plan, either at the time of grant or by amendment of such option
      at any time after such grant there may be included a stock appreciation
      right which shall be subject to such terms and conditions, not
      inconsistent with the Plan, as the Committee shall impose, including the
      following:

                  (A) A stock appreciation right shall be exercisable to the
            extent, and only to the extent, that the option in which it is
            included is at the time exercisable, and may be exercised within
            such period only at such time or times as may be determined by the
            Committee;

                  (B) A stock appreciation right shall entitle the optionee (or
            any person entitled to act under the provisions of subsection (9)
            hereof) to surrender unexercised the option in which the stock
            appreciation right is included (or any portion of such option) to
            the Company and to receive from the Company in exchange therefor
            that number of shares having an aggregate value equal to (or, in the
            discretion of the Committee, less than) the excess of the value of
            one share (provided such value does not exceed such multiple of the
            option price per share as may be specified by the Committee) over
            the option price per share specified in such option times the number
            of shares called for by the option, or portion thereof, which is so
            surrendered. The Committee shall be entitled to cause the Company to
            settle its obligation, arising out of the exercise of a stock
            appreciation right, by the payment of cash equal to the aggregate
            value of the shares the Company would otherwise be obligated to
            deliver or partly by the payment of cash and partly by the delivery
            of shares. Any such election shall be made within

                                       7
<PAGE>

            30 business days after the receipt by the Committee of written
            notice of the exercise of the stock appreciation right. The value of
            a share for this purpose shall be the Fair Market Value thereof on
            the last business day preceding the date of the election to exercise
            the stock appreciation right;

                  (C) No fractional shares shall be delivered under this
            subsection (11) but in lieu thereof a cash adjustment shall be made;

                  (D) If a stock appreciation right included in an option is
            exercised, such option shall be deemed to have been exercised to the
            extent of the number of shares called for by the option or portion
            thereof which is surrendered on exercise of the stock appreciation
            right and no new option may be granted covering such shares under
            this Plan; and

                  (E) If an option which includes a stock appreciation right is
            exercised, such stock appreciation right shall be deemed to have
            been canceled to the extent of the number of shares called for by
            the option or portion thereof is exercised and no new stock
            appreciation rights may be granted covering such shares under this
            Plan.

            (12) Incentive Stock Options. Incentive stock options may only be
      granted to employees of the Issuer and its Subsidiaries and parent
      corporations, as defined in Section 424 of the Code. In the case of any
      incentive stock option granted under the Plan, the aggregate Fair Market
      Value of the shares of Common Stock (determined at the time of grant of
      each option) with respect to which incentive stock options granted under
      the Plan and any other plan of the Issuer or its parent or a Subsidiary
      which are exercisable for the first time by an employee during any
      calendar year shall not exceed $100,000 or such other amount as may be
      required by the Code.

            (13) Rights of Transferee. Notwithstanding anything to the contrary
      herein, if an option has been transferred in accordance with Section
      7(b)(6), the option shall be exercisable solely by the transferee. The
      option shall remain subject to the provisions of the Plan, including that
      it will be exercisable only to the extent that the optionee or optionee's
      estate would have been entitled to exercise it if the optionee had not
      transferred the option. In the event of the death of the optionee prior to
      the expiration of the right to exercise the transferred option, the period
      during which the option shall be exercisable will terminate on the date
      one year following the date of the optionee's death. In the event of the
      death of the transferee prior to the expiration of the right to exercise
      the option, the period during which the option shall be exercisable by the
      executors, administrators, legatees and distributees of the transferee's
      estate, as the case may be, will terminate on the date one year following
      the date of the transferee's death. In no event will the option be
      exercisable after the expiration of the option period set forth in the
      Stock Option Agreement. The option shall be subject to such other rules as
      the Committee shall determine.

                                       8
<PAGE>

      8. Long-term Performance Awards: Awards under the Plan shall consist of
the conditional grant to the participants of a specified number of performance
units or performance shares. The conditional grant of a performance unit to a
participant will entitle the participant to receive a specified dollar value,
variable under conditions specified in the award, if the performance objectives
specified in the award are achieved and the other terms and conditions thereof
are satisfied. The conditional grant of a performance share to a participant
will entitle the participant to receive a specified number of shares of Common
Stock, or the equivalent cash value, if the objectives specified in the award
are achieved and the other terms and conditions thereof are satisfied. Each
award will be subject to the following terms and conditions:

      (a) Grant of Awards. The Committee shall (1) select the officers and key
executives of the Company to whom awards may from time to time be granted, (2)
determine the number of performance units or performance shares covered by each
award, (3) determine the terms and conditions of each performance unit or
performance share awarded and the award period and performance objectives with
respect to each award, (4) determine the periods during which a participant may
request the Committee to approve deferred payment of a percentage (not less than
25%) of an award (the "Deferred Portion") and the interest or rate of return
thereon or the basis on which such interest or rate of return thereon is to be
determined, (5) determine whether payment with respect to the portion of an
award which has not been deferred (the "Current Portion") and the payment with
respect to the Deferred Portion of an award shall be made entirely in cash,
entirely in Common Stock or partially in cash and partially in Common Stock, (6)
determine whether the award is to be made independently of or in conjunction
with a nonqualified stock option granted under the Plan, and (7) prescribe the
form of the instruments necessary or advisable in the administration of the
awards.

      (b) Terms and Conditions of Award. Any award conditionally granting
performance units or performance shares to a participant shall be evidenced by a
Performance Unit Agreement or Performance Share Agreement, as applicable,
executed by the Company and the participant, in such form as the Committee shall
approve, which Agreement shall contain in substance the following terms and
conditions applicable to the award and such additional terms and conditions as
the Committee shall prescribe:

            (1) Number and Value of Performance Units. The Performance Unit
      Agreement shall specify the number of performance units conditionally
      granted to the participant. If the award has been made in conjunction with
      the grant of an Associated Option, the number of performance units granted
      shall initially be equal to the number of shares which the participant is
      granted the right to purchase pursuant to the Associated Option, but one
      performance unit shall be canceled for each share of the Issuer's Common
      Stock purchased upon exercise of the Associated Option or for each stock
      appreciation right included in such option that has been exercised. The
      Performance Unit Agreement shall specify the threshold, target and maximum
      dollar values of each performance unit and corresponding performance
      objectives as provided under Section 8(b)(5). No payout under a
      performance unit award to an individual Participant may exceed .625% of
      the pre-tax earnings of the Company for the fiscal year which coincides
      with the final year of the performance unit period.

                                       9
<PAGE>

            (2) Number and Value of Performance Shares. The Performance Share
      Agreement shall specify the number of performance shares conditionally
      granted to the participant. If the award has been made in conjunction with
      the grant of an Associated Option, the number of performance shares
      granted shall initially be equal to the number of shares which the
      participant is granted the right to purchase pursuant to the Associated
      Option, but one performance share shall be canceled for each share of the
      Issuer's Common Stock purchased upon exercise of the Associated Option or
      for each stock appreciation right included in such option that has been
      exercised. The Performance Share Agreement shall specify that each
      Performance Share will have a value equal to one (1) share of Common
      Stock.

            (3) Award Periods. For each award, the Committee shall designate an
      award period with a duration to be determined by the Committee in its
      discretion, but in no event less than three calendar years, within which
      specified performance objectives are to be attained. There may be several
      award periods in existence at any one time and the duration of performance
      objectives may differ from each other.

            (4) Consideration. Each participant, as consideration for the award
      of performance units or performance shares, shall remain in the continuous
      employ of the Company for at least one year after the date of the making
      of such award, and no award shall be payable until after the completion of
      such one year of employment by the participant, except as otherwise
      determined by the Committee.

            (5) Performance Objectives. The Committee shall establish
      performance objectives with respect to the Company for each award period
      on the basis of such criteria and to accomplish such objectives as the
      Committee may from time to time determine. Performance criteria for awards
      under the Plan shall include one or more of the following measures of
      operating performance:

             a.  Earnings                       d.  Financial return ratios
             b.  Revenue                        e.  Total Shareholder Return
             c.  Operating or net cash flows    f.  Market share.

            The Committee shall establish the specific targets for the selected
      criteria. These targets may be set at a specific level or may be expressed
      as relative to the comparable measure at comparison companies or a defined
      index. These targets may be based upon the total Company, one or more
      businesses units of the Company, or a defined business unit which the
      executive has responsibility for or influence over.

            (6) Determination and Payment of Performance Units or Performance
      Shares Earned. As soon as practicable after the end of an award period,
      the Committee shall determine the extent to which awards have been earned
      on the basis of the Company's actual performance in relation to the
      established performance objectives as set forth in the Performance Unit
      Agreement or Performance Share Agreement and certify these results in
      writing. The Performance Unit Agreement or Performance Share Agreement
      shall specify that as soon as practicable after the end of each award
      period, the Committee shall determine whether the conditions of Sections
      8(b)(4) and 8(b)(5) hereof have been

                                       10
<PAGE>

      met and, if so, shall ascertain the amount payable or shares which should
      be distributed to the participant in respect of the performance units or
      performance shares. As promptly as practicable after it has determined
      that an amount is payable or should be distributed in respect of an award,
      the Committee shall cause the Current Portion of such award to be paid or
      distributed to the participant or the participant's beneficiaries, as the
      case may be, in the Committee's discretion, either entirely in cash,
      entirely in Common Stock or partially in cash and partially in Common
      Stock. The Deferred Portion of an award shall be contingently credited and
      payable to the participant over a deferred period and shall be credited
      with interest, rate of return, or other valuation as determined by the
      Committee. The Committee, in its discretion, shall determine the
      conditions upon, and method of, payment of such Deferred Portions and
      whether such payment will be made entirely in cash, entirely in Common
      Stock or partially in cash and partially in Common Stock.

            In making the payment of an award in Common Stock hereunder, the
      cash equivalent of such Common Stock shall be determined by the Fair
      Market Value of the Common Stock on the day the Committee designates the
      performance units shall be payable.

            (7) Nontransferability of Awards and Designation of Beneficiaries.
      No award under this Section of the Plan shall be transferable by the
      participant other than by will or by the laws of descent and distribution,
      except that a participant may designate a beneficiary pursuant to the
      provisions hereof. If any participant or the participant's beneficiary
      shall attempt to assign the participant's rights under the Plan in
      violation of the provisions thereof, the Company's obligation to make any
      further payments to such participant or the participant's beneficiaries
      shall forthwith terminate.

            A participant may name one or more beneficiaries to receive any
      payment of an award to which the participant may be entitled under the
      Plan in the event of the participant's death, on a form to be provided by
      the Committee. A participant may change the participant's beneficiary
      designation from time to time in the same manner. If no designated
      beneficiary is living on the date on which any payment becomes payable to
      a participant's beneficiary, or if no beneficiary has been specified by
      the participant, such payment will be payable to the person or persons in
      the first of the following classes of successive preference:

                  (i)    Widow or widower, if then living,
                  (ii)   Surviving children, equally,
                  (iii)  Surviving parents, equally,
                  (iv)   Surviving brothers and sisters, equally,
                  (v)    Executors or administrators

      and the term "beneficiary" as used in the Plan shall include such person
      or persons.

            (8) Retirement and Termination of Employment Other Than by Death or
      Disability. In the event of the Retirement prior to the end of an award
      period of a participant who has satisfied the one year employment
      requirement of Section 8(b)(4) with respect to an award prior to
      Retirement, or as otherwise determined by the

                                       11
<PAGE>

      Committee, the participant, or his estate, shall be entitled to a payment
      of such award at the end of the award period, pursuant to the terms of the
      Plan and the participant's Performance Unit Agreement or Performance Share
      Agreement, provided, however, that the participant shall be deemed to have
      earned that proportion (to the nearest whole unit or share) of the value
      of the performance units or performance shares granted to the participant
      under such award as the number of months of the award period which have
      elapsed since the first day of the calendar year in which the award was
      made to the end of the month in which the participant's Retirement occurs,
      bears to the total number of months in the award period, subject to the
      attainment of performance objectives associated with the award as
      certified by the Committee. The participant's right to receive any
      remaining performance units or performance shares shall be canceled and
      forfeited.

            Subject to Section 8(b)(6) hereof, the Performance Unit Agreement or
      Performance Share Agreement shall specify that the right to receive the
      performance units or performance shares granted to such participant shall
      be conditional and shall be canceled, forfeited and surrendered if the
      participant's continuous employment with the Company shall terminate for
      any reason, other than the participant's death, Disability or Retirement,
      prior to the end of the award period, or as otherwise determined by the
      Committee.

            (9) Disability of Participant. For the purposes of any award, a
      participant who becomes Disabled shall be deemed to have suspended active
      employment by reason of Disability commencing on the date the participant
      becomes entitled to receive payments under a disability pay plan of the
      Company and continuing until the date the participant is no longer
      entitled to receive such payments. In the event a participant becomes
      Disabled during an award period, but only if the participant has satisfied
      the one year employment requirement of Section 8(b)(4) with respect to an
      award prior to becoming Disabled, or as otherwise determined by the
      Committee, upon the determination by the Committee of the extent to which
      an award has been earned pursuant to Section 8(b)(6), the participant
      shall be deemed to have earned that proportion (to the nearest whole unit)
      of the value of the performance units granted to the participant under
      such award as the number of months of the award period in which the
      participant was not Disabled bears to the total number of months in the
      award period, subject to the attainment of the performance objectives
      associated with the award as certified by the Committee. The participant's
      right to receive any remaining performance units shall be canceled and
      forfeited.

            (10) Death of Participant. In the event of the death prior to the
      end of an award period of a participant who has satisfied the one year
      employment requirement with respect to an award prior to the date of
      death, or as otherwise determined by the Committee, the participant's
      beneficiaries or estate, as the case may be, shall be entitled to a
      payment of such award upon the end of the award period, pursuant to the
      terms of the Plan and the participant's Performance Unit Agreement or
      Performance Share Agreement, provided, however, that the participant shall
      be deemed to have earned that proportion (to the nearest whole unit or
      share) of the value of the performance units or performance shares granted
      to the participant under such award as the number of months of the award
      period which have elapsed since the first day of the calendar year in
      which

                                       12
<PAGE>

      the award was made to the end of the month in which the participant's
      death occurs, bears to the total number of months in the award period. The
      participant's right to receive any remaining performance units or
      performance shares shall be canceled and forfeited.

            The Committee may, in its discretion, waive, in whole or in part,
      such cancellation and forfeiture of any performance units or performance
      shares.

            (11) Grant of Associated Option. If the Committee determines that
      the conditional grant of performance units or performance shares under the
      Plan is to be made to a participant in conjunction with the grant of a
      nonqualified stock option under the Plan, the Committee shall grant the
      participant an Associated Option under the Plan subject to the terms and
      conditions of this subsection (11). In such event, such award under the
      Plan shall be contingent upon the participant's being granted such an
      Associated Option pursuant to which: (i) the number of shares the optionee
      may purchase shall initially be equal to the number of performance units
      or performance shares conditionally granted by the award, (ii) such number
      of shares shall be reduced on a one-share-for-one-unit or share basis to
      the extent that the Committee determines, pursuant to Section 8(b)(6)
      hereof, to pay to the participant or the participant's beneficiaries the
      performance units or performance shares conditionally granted pursuant to
      the award, and (iii) the Associated Option shall be cancelable in the
      discretion of the Committee, without the consent of the participant, under
      the conditions and to the extent specified herein and in Section 8(b)(6)
      hereof.

            If no amount is payable in respect of the conditionally granted
      performance units or performance shares, the award and such performance
      units or performance shares shall be deemed to have been canceled,
      forfeited and surrendered, and the Associated Option, if any, shall
      continue in effect in accordance with its terms. If any amount is payable
      in respect of the performance units or performance shares and such units
      or shares were granted in conjunction with an Associated Option, the
      Committee shall, within 30 days after the determination of the Committee
      referred to in the first sentence of Section 8(b)(6), determine, in its
      sole discretion, either:

                  (A) to cancel in full the Associated Option, in which event
            the value of the performance units or performance shares payable
            pursuant to Sections 8(b)(5) and (6) shall be paid or the
            performance shares shall be distributed;

                  (B) to cancel in full the performance units or performance
            shares, in which event no amount shall be paid to the participant in
            respect thereof and no shares shall be distributed but the
            Associated Option shall continue in effect in accordance with its
            terms; or

                  (C) to cancel some, but not all, of the performance units or
            performance shares, in which event the value of the performance
            units payable pursuant to Sections 8(b)(5) and (6) which have not
            been canceled shall be paid or the performance shares shall be
            distributed and the Associated Option shall be canceled with respect
            to that number of shares equal to the number of

                                       13
<PAGE>

            conditionally granted performance units or performance shares that
            remain payable.

            Any action taken by the Committee pursuant to the preceding sentence
      shall be uniform with respect to all awards having the same award period.
      If the Committee takes no such action, it shall be deemed to have
      determined to cancel in full the award in accordance with clause (B)
      above.

      9. Restricted Stock: Restricted stock awards under the Plan shall consist
of grants of shares of Common Stock of the Issuer subject to the terms and
conditions hereinafter provided.

      (a) Grant of Awards: The Committee shall (i) select the officers and key
employees to whom restricted stock may from time to time be granted, (ii)
determine the number of shares to be covered by each award granted, (iii)
determine the terms and conditions (not inconsistent with the Plan) of any award
granted hereunder, and (iv) prescribe the form of the agreement, legend or other
instrument necessary or advisable in the administration of awards under the
Plan.

      (b) Terms and Conditions of Awards: Any restricted stock award granted
under the Plan shall be evidenced by a Restricted Stock Agreement executed by
the Issuer and the recipient, in such form as the Committee shall approve, which
agreement shall be subject to the following terms and conditions and shall
contain such additional terms and conditions not inconsistent with the Plan as
the Committee shall prescribe:

            (1) Number of Shares Subject to an Award: The Restricted Stock
      Agreement shall specify the number of shares of Common Stock subject to
      the Award.

            (2) Restriction Period: The period of restriction applicable to each
      Award shall be established by the Committee but may not be less than one
      year, unless the Committee determines otherwise. The Restriction Period
      applicable to each Award shall commence on the Award Date.

            (3) Consideration: Each recipient, as consideration for the grant of
      an award, shall remain in the continuous employ of the Company for at
      least one year from the date of the granting of such award, or as
      otherwise determined by the Committee, and any shares covered by such an
      award shall lapse if the recipient does not remain in the continuous
      employ of the Company for at least one year from the date of the granting
      of the award, except as otherwise determined by the Committee.

            (4) Restriction Criteria: The Committee shall establish the criteria
      upon which the Restriction Period shall be based. Restrictions shall be
      based upon either or both of (i) the continued employment of the recipient
      or (ii) the attainment by the Company of one or more of the following
      measures of operating performance:

             a. Earnings                       d. Financial return ratios
             b. Revenue                        e. Total Shareholder Return
             c. Operating or net cash flows    f. Market share.

                                       14
<PAGE>

            The Committee shall establish the specific targets for the selected
      criteria. These targets may be set at a specific level or may be expressed
      as relative to the comparable measure at comparison companies or a defined
      index. These targets may be based upon the total Company, one or more
      business units of the Company or a defined business unit which the
      executive has responsibility for or influence over.

            In cases where objective performance criteria are established, the
      Committee shall determine the extent to which the criteria have been
      achieved and the corresponding level to which restrictions will be removed
      from the Award or the extent to which a participant's right to receive an
      Award should be lapsed in cases where the performance criteria have not
      been met and shall certify these determinations in writing. The Committee
      may provide for the determination of the attainment of such restrictions
      in installments where deemed appropriate.

      (c) Terms and Conditions of Restrictions and Forfeitures: The shares of
Common Stock awarded pursuant to the Plan shall be subject to the following
restrictions and conditions:

            (1) During the Restriction Period, the participant will not be
      permitted to sell, transfer, pledge or assign restricted stock awarded
      under this Plan.

            (2) Except as provided in Section 9(c)(1), or as the Committee may
      otherwise determine, the participant shall have all of the rights of a
      stockholder of the Issuer, including the right to vote the shares and
      receive dividends and other distributions provided that distributions in
      the form of stock shall be subject to the same restrictions as the
      underlying restricted stock.

            (3) In the event of a participant's Retirement, death or Disability
      prior to the end of the Restriction Period for a participant who has
      satisfied the one year employment requirement of Section 9(b)(3) with
      respect to an award prior to Retirement, death or Disability, or as
      otherwise determined by the Committee, the participant, or the
      participant's estate, shall be entitled to receive that proportion (to the
      nearest whole share) of the number of shares subject to the Award granted
      as the number of months of the Restriction Period which have elapsed since
      the Award date to the date at which the participant's Retirement, death or
      Disability occurs, bears to the total number of months in the Restriction
      Period. The participant's right to receive any remaining shares shall be
      canceled and forfeited and the shares will be deemed to be reacquired by
      the Issuer.

            (4) In the event of a participant's Retirement, death, Disability or
      in cases of special circumstances as determined by the Committee, the
      Committee may, in its sole discretion when it finds that such an action
      would be in the best interests of the Company, accelerate or waive in
      whole or in part any or all remaining time based restrictions with respect
      to all or part of such participant's restricted stock.

            (5) Upon termination of employment for any reason during the
      Restriction Period, subject to the provisions of paragraph (3) above or in
      the event that the participant fails promptly to pay or make satisfactory
      arrangements as to the withholding taxes as

                                       15
<PAGE>

      provided in the following paragraph, all shares still subject to
      restriction shall be forfeited by the participant and will be deemed to be
      reacquired by the Company.

            (6) A participant may, at any time prior to the expiration of the
      Restriction Period, waive all rights to receive all or some of the shares
      of a restricted stock Award by delivering to the Company a written notice
      of such waiver.

            (7) Notwithstanding the other provisions of this Section 9, the
      Committee may adopt rules which would permit a gift by a participant of
      restricted shares to members of the participant's immediate family
      (spouse, parents, children, stepchildren, grandchildren or legal
      dependants) or to a trust whose beneficiary or beneficiaries shall be
      either such a person or persons or the participant.

            (8) Any attempt to dispose of restricted stock in a manner contrary
      to the restrictions shall be ineffective.

      10. Deferred Stock Units: Deferred stock units under the Plan will consist
of grants of the right to receive a payment based upon the value of the Common
Stock subject to the terms and conditions hereinafter provided.

      (a) Grant of Awards: The Committee shall (i) select the officers and key
employees to whom deferred stock units may from time to time be granted, (ii)
determine the number of shares to be covered by each Award, (iii) determine the
terms and conditions (not inconsistent with the Plan) of any Award, and (iv)
prescribe the form of the agreement or other instrument necessary or advisable
in the administration of Awards.

      (b) Terms and Conditions of Deferred Stock Units: Deferred stock units
granted pursuant to the Plan shall be subject to the following restrictions and
conditions:

            (1) Any deferred stock unit granted under the Plan shall be
      evidenced by a Deferred Stock Unit Agreement executed by the Issuer and
      the recipient, in such form as the Committee shall approve. The Deferred
      Stock Unit Agreement shall specify: (i) the number of shares of Common
      Stock subject to the Award; (ii) the period of restriction applicable to
      the Award, if any; (iii) the criteria upon which any restrictions shall be
      based; and (iv) such additional terms and conditions not inconsistent with
      the Plan as the Committee deems appropriate.

            (2) In the event of a participant's Retirement, death, Disability or
      other termination, as specified by the Committee, the participant's
      deferred stock units will be distributed in a lump sum payment or in such
      other manner as the Committee determines. The Committee shall determine
      whether payment shall be made in cash, Common Stock, or a combination of
      the two. Unless the Committee determines otherwise, payment will be equal
      to the number of deferred stock units multiplied by (i) the market value
      of a share of Common Stock at the time of the participant's Retirement,
      death, Disability or termination, plus (ii) the sum of all dividends
      credited on a share of Common Stock during the period commencing on the
      date of the deferred stock unit award and ending on the date of the
      participant's Retirement, death, Disability or termination.

                                       16
<PAGE>

            (3) The Committee may, in its sole discretion when it finds that
      such an action would be in the best interests of the Company, accelerate
      or waive in whole or in part any or all remaining time-based restrictions
      with respect to the deferred stock units of a participant who terminates
      employment during the Restriction Period due to Retirement, death,
      Disability or in cases of special circumstances.

            (4) Deferred stock units are not transferable, except that a
      participant may designate a beneficiary to receive any amount payable with
      respect to deferred stock units on the participant's death.

      11. Determination of Breach of Conditions: The determination of the
Committee as to whether an event has occurred resulting in a forfeiture or a
termination or reduction of the Company's obligations in accordance with the
provisions of the Plan shall be conclusive.

      12. Adjustment in the Event of Change in Stock: In the event of changes in
the outstanding Common Stock by reason of stock dividends, recapitalization,
mergers, consolidations, stock splits, combinations or exchanges of shares and
the like, the aggregate number and class of shares available under the Plan, the
aggregate number and class of shares subject to individual limits under the
Plan, and the number, class and the price of shares subject to outstanding
options and awards and the number of performance units and the dollar value of
each unit shall be appropriately adjusted by the Committee, whose determination
shall be conclusive.

      13. Taxes:

      (a) Each participant shall, no later than the Tax Date (as defined below),
pay to the Company, or make arrangements satisfactory to the Committee regarding
payment of, any Withholding Tax (as defined below) with respect to an option or
award, and the Company shall, to the extent permitted by law, have the right to
deduct such amount from any payment of any kind otherwise due to the
participant. The Company shall also have the right to retain or sell without
notice, or to demand surrender of, shares of Common Stock in value sufficient to
cover the amount of any Withholding Tax, and to make payment (or to reimburse
itself for payment made) to the appropriate taxing authority of an amount in
cash equal to the amount of such Withholding Tax, remitting any balance to the
participant. For purposes of the paragraph, the value of shares of Common Stock
so retained or surrendered shall be the average of the high and low sales prices
per share on the New York Stock Exchange composite tape on the date that the
amount of the Withholding Tax is to be determined (the "Tax Date") and the value
of shares of Common Stock so sold shall be the actual net sale price per share
(after deduction of commissions) received by the Company.

      (b) Notwithstanding the foregoing, if the stock options have been
transferred, the optionee shall provide the Company with funds sufficient to pay
such Withholding Tax. If such optionee does not satisfy the optionee's tax
payment obligation and the stock options have been transferred, the transferee
may provide the funds sufficient to enable the Company to pay such taxes.
However, if the stock options have been transferred, the Company shall have no
right to retain or sell without notice, or to demand surrender from the
transferee of, shares of Common Stock in order to pay such Withholding Tax.

                                       17
<PAGE>

      (c) The term "Withholding Tax" means the minimum required withholding
amount applicable to the participant, including federal, state and local income
taxes, Federal Insurance Contribution Act taxes and other governmental impost or
levy.

      (d) Notwithstanding the foregoing, the participant shall be entitled to
satisfy the obligation to pay any Withholding Tax, in whole or in part, by
providing the Company with funds sufficient to enable the Company to pay such
Withholding Tax or by requiring the Company to retain or to accept upon delivery
thereof by the participant shares of Common Stock having a Fair Market Value
sufficient to cover the amount of such Withholding Tax. Each election by a
participant to have shares retained or to deliver shares for this purpose shall
be subject to the following restrictions: (i) the election must be in writing
and be made on or prior to the Tax Date; (ii) the election must be irrevocable;
(iii) the election shall be subject to the disapproval of the Committee.

      14. Change in Control. In the event an optionee's employment with the
Company terminates pursuant to a qualifying termination (as defined below)
during the three (3) year period following a change in control of the Issuer (as
defined below) and prior to the exercise of options granted under this Plan, all
outstanding options shall become immediately fully vested and exercisable
notwithstanding any provisions of the Plan or of the applicable Stock Option
Agreement to the contrary.

      In addition, in the event of a change in control of the Issuer, the
Committee may (i) determine that outstanding options shall be assumed by, or
replaced with comparable options by, the surviving corporation (or a parent or
subsidiary of the surviving corporation) and that outstanding awards shall be
converted to similar awards of the surviving corporation (or a parent or
subsidiary of the surviving corporation), or (ii) take such other actions with
respect to outstanding options and awards as the Committee deems appropriate.

      The following definitions shall apply for purposes of the Plan:

      (a) For the purpose of this Plan, a change in control shall be deemed to
have occurred on the earlier of the following dates:

            (1) The date any person (as defined in Section 14(d)(3) of the
      Exchange Act) shall have become the direct or indirect beneficial owner of
      twenty percent (20%) or more of the then outstanding common shares of the
      Issuer;

            (2) The date the shareholders of the Issuer approve a merger or
      consolidation of the Issuer with any other corporation other than (i) a
      merger or consolidation which would result in the voting securities of the
      Issuer outstanding immediately prior thereto continuing to represent at
      least 75% of the combined voting power of the voting securities of the
      Issuer or the surviving entity outstanding immediately after such merger
      or consolidation, or (ii) a merger or consolidation effected to implement
      a recapitalization of the Issuer in which no Person acquires more than 50%
      of the combined voting power of the Issuer's then outstanding securities;

                                       18
<PAGE>

            (3) The date the shareholders of the Issuer approve a plan of
      complete liquidation of the Issuer or an agreement for the sale or
      disposition by the Issuer of all or substantially all the Issuer's assets;

            (4) The date there shall have been a change in a majority of the
      Board of Directors of the Issuer within a two (2) year period beginning
      after the effective date of the Plan, unless the nomination for election
      by the Issuer's shareholders of each new director was approved by the vote
      of two-thirds of the directors then still in office who were in office at
      the beginning of the two (2) year period.

      (b) For purposes of this Plan provision, a qualifying termination shall be
deemed to have occurred under the following circumstances:

            (1) A Company-initiated termination for reasons other than the
      employee's death, Disability, resignation without good cause, willful
      misconduct or activity deemed detrimental to the interests of the Company,
      provided the optionee executes a general release and, where applicable, a
      non-solicitation and/or non-compete agreement with the Company;

            (2) The optionee resigns with good cause, which includes (i) a
      substantial adverse alteration in the nature or status of the optionee's
      responsibilities, (ii) a reduction in the optionee's base salary or levels
      of entitlement or participation under any incentive plan, award program or
      employee benefit program without the substitution or implementation of an
      alternative arrangement of substantially equal value, or (iii) the Company
      requiring the optionee to relocate to a work location more than fifty (50)
      miles from the optionee's work location prior to the change in control.

      15. Deferral Election: Notwithstanding the provisions of Section 13, any
optionee or participant may elect, with the concurrence of the Committee and
consistent with any rules and regulations established by the Committee, to defer
the delivery of the proceeds of the exercise of any stock option not transferred
under the provisions of Section 7(b)(6) or stock appreciation rights.

      (a) Election Timing: The election to defer the delivery of the proceeds
from any eligible award must be made at least six months prior to the date such
award is exercised or at such other time as the Committee may specify. Deferrals
will only be allowed for exercises which occur while the optionee or participant
is an active employee of the Company. Any election to defer the delivery of
proceeds from an eligible award shall be irrevocable as long as the optionee or
participant remains an employee of the Company.

      (b) Stock Option Deferral: The deferral of the proceeds of stock options
may be elected by an optionee subject to the Regulations established by the
Committee. The proceeds from such an exercise shall be credited to the
optionee's deferred stock option account as the number of deferred share units
equivalent in value to those proceeds. Deferred share units shall be valued at
the Fair Market Value on the date of exercise. Subsequent to exercise, the
deferred share units shall be valued at the Fair Market Value of Common Stock.
Deferred share units shall accrue dividends at the rate paid upon the Common
Stock, which shall be credited in the

                                       19
<PAGE>

form of additional deferred share units. Deferred share units shall be
distributed in shares of Common Stock upon the termination of employment of the
participant or at such other date as may be approved by the Committee over a
period of no more than ten (10) years.

      (c) Stock Appreciation Right Deferral: Upon such exercise, the Company
will credit the optionee's deferred stock option account with the number of
deferred share units equivalent in value to the difference between the Fair
Market Value of a share of Common Stock on the exercise date and the exercise
price of the Stock Appreciation Right multiplied by the number of shares
exercised. Deferred share units shall be valued at the Fair Market Value on the
date of exercise. Subsequent to exercise, the deferred share units shall be
valued at the Fair Market Value of Common Stock. Deferred share units shall
accrue dividends at the rate paid upon the Common Stock, which shall be credited
in the form of additional deferred share units. Deferred share units shall be
distributed in shares of Common Stock upon the termination of employment of the
participant or at such other date as may be approved by the Committee over a
period of no more than ten (10) years.

      (d) Accelerated Distributions: The Committee may, at its sole discretion,
allow for the early payment of an optionee's or participant's deferred share
units account in the event of an "unforeseeable emergency" or in the event of
the death or Disability of the optionee or participant. An "unforeseeable
emergency" is defined as an unanticipated emergency caused by an event beyond
the control of the optionee or participant that would result in severe financial
hardship if the distribution were not permitted. Such distributions shall be
limited to the amount necessary to sufficiently address the financial hardship.
Any distributions under this provision shall be consistent with the Regulations
established under the Code. Additionally, the Committee may use its discretion
to cause deferred share unit accounts to be distributed when continuing the
deferral program is no longer in the best interest of the Company.

      (e) Assignability: No rights to deferred share unit accounts may be
assigned or subject to any encumbrance, pledge or charge of any nature except
that an optionee or participant may designate a beneficiary pursuant to any
rules established by the Committee.

      16. Amendment of the Plan: The Board of Directors may amend or suspend the
Plan at any time and from time to time; provided, however, that the Board of
Directors shall not amend the Plan without shareholder approval if such approval
is required in order to comply with Section 162(m) or 422 of the Code or other
applicable law, or to comply with applicable stock exchange requirements. A
termination or amendment of the Plan that occurs after an option or award is
granted shall not materially impair the rights of an optionee or participant
unless the optionee or participant consents in writing. Notwithstanding the
foregoing, if an option has been transferred in accordance with Section 7(b)(6),
written consent of the transferee (and not the optionee) shall be necessary to
alter or impair any option or award previously granted under the Plan.

      17. Miscellaneous:

      (a) By accepting any benefits under the Plan, each optionee or participant
and each person claiming under or through such optionee or participant shall be
conclusively deemed to have indicated acceptance and ratification of, and
consent to, any action taken or made to be

                                       20
<PAGE>

taken or made under the Plan by the Company, the Board, the Committee or any
other Committee appointed by the Board.

      (b) No participant or any person claiming under or through him shall have
any right or interest, whether vested or otherwise, in the Plan or in any
option, or stock appreciation right or award thereunder, contingent or
otherwise, unless and until all of the terms, conditions and provisions of the
Plan and the Agreement that affect such participant or such other person shall
have been complied with.

      (c) Nothing contained in the Plan or in any Agreement shall require the
Company to segregate or earmark any cash or other property.

      (d) Neither the adoption of the Plan nor its operation shall in any way
affect the rights and powers of the Company to dismiss or discharge any employee
at any time.

      18. Term of the Plan: The Plan is effective as of August 6, 2001. The Plan
shall expire on the day before the fifth anniversary of the effective date of
the Plan, unless suspended or discontinued earlier by action of the Board of
Directors. The expiration of the Plan, however, shall not affect the rights of
optionees under options theretofore granted to them or the rights of
participants under awards theretofore granted to them, and all unexpired options
and awards shall continue in force and operation after termination of the Plan
except as they may lapse or be terminated by their own terms and conditions.

      19. Employees Based Outside of the United States: Notwithstanding any
provision of the Plan to the contrary, in order to foster and promote
achievement of the purposes of the Plan or to comply with provisions of laws in
other countries in which the Company operates or has Employees, the Committee,
in its sole discretion, shall have the power and authority to (i) determine
which employees employed outside the United States are eligible to participate
in the Plan, (ii) modify the terms and conditions of options granted to
employees who are employed outside the United States, (iii) establish subplans,
modified option exercise procedures and other terms and procedures to the extent
such actions may be necessary or advisable, and (iv) grant to employees employed
in countries wherein the granting of stock options is impossible or
impracticable, as determined by the Committee, stock appreciation rights with
terms and conditions that, to the fullest extent possible, are substantially
identical to the stock options granted hereunder.

      20. Grants in Connection with Corporate Transactions and Otherwise:
Nothing contained in this Plan shall be construed to (i) limit the right of the
Committee to make grants under this Plan in connection with the acquisition, by
purchase, lease, merger, consolidation or otherwise, of the business or assets
of any corporation, firm or association, including grants to employees thereof
who become employees of the Company, or for other proper corporate purposes, or
(ii) limit the right of the Company to grant options or make other awards
outside of this Plan. Without limiting the foregoing, the Committee may make a
grant to an employee of another corporation who becomes an employee of the
Company by reason of a corporate merger, consolidation, acquisition of stock or
property, reorganization or liquidation involving the Company in substitution
for an option or award granted by such corporation. The terms and conditions of
the substitute grants may vary from the terms and conditions required by the
Plan

                                       21
<PAGE>

and from those of the substituted stock incentives. The Committee shall
prescribe the provisions of the substitute grants. Any options or awards that
are converted into Company options or awards as a result of a merger or
acquisition will not count against the limitations provided under Section 3.

      21. Governing Law: The validity, construction, interpretation and effect
of the Plan and agreements issued under the Plan shall be governed and construed
by and determined in accordance with the laws of the State of Indiana, without
giving effect to the conflict of laws provisions thereof.

                                       22Exhibit 10.4

                              ZIMMER HOLDINGS, INC.
                           TEAMSHARE STOCK OPTION PLAN

            1. Purpose: The purpose of the Zimmer Holdings, Inc. TeamShare Stock
Option Plan (the "Plan") is to advance the interests of Zimmer Holdings, Inc.
and its Subsidiaries and Affiliates by giving substantially all Employees a
stake in the Company's future growth, in the form of stock options, thereby
improving such Employees' long-term incentives and aligning their interests with
those of the Company's shareholders.

            2. Definitions: For purposes of this Plan:

                  (a) "Affiliate" shall mean any entity in which the Company has
            an ownership interest of more than 50%.

                  (b) "Code" shall mean the Internal Revenue Code of 1986, as
            amended.

                  (c) "Common Stock" shall mean the Company's common stock.

                  (d) "Company" shall mean Zimmer Holdings, Inc.

                  (e) "Disability" or "Disabled" shall mean qualifying for and
            receiving payments under a long-term disability pay plan maintained
            by the Company or any Subsidiary or Affiliate or as required by or
            available under applicable local law.

                  (f) "Employee" shall mean any individual employed by the
            Company or any Subsidiary or Affiliate, excluding leased employees
            within the meaning of Section 414(n) of the Code and key executives
            of the Company or any of its Subsidiaries or Affiliates. Employee
            shall also exclude any person who performs services for the Company
            if the Company treats the person for tax or labor law purposes as an
            independent contractor. If such person is subsequently determined to
            be an employee of the Company by the Internal Revenue Service or any
            other federal, state or local governmental agency or competent court
            of authority, such person will become an Employee on the date that
            this determination is finally adjudicated or otherwise accepted by
            the Company as long as he or she meets the other requirements of
            this Section 2(f). Such person shall not, under any circumstances,
            be treated as an Employee for the period of time during which the
            Company treated the person as an independent contractor for federal
            tax purposes even if the determination of the employee status has
            retroactive effect. In addition, any person who performs services
            for the Company, regardless of whether such person is an employee or
            independent contractor, shall not be an Employee for any period of
            time during which he or she has agreed in writing that he or she is
            not entitled to participate in the Company's employee benefit plans.

                  (g) "Exchange Act" shall mean the Securities Exchange Act of
            1934, as amended.

                  (h) "Fair Market Value" shall mean the average of the high and
            low sale prices of a share of Common Stock on the New York Stock
            Exchange composite tape on the date

<PAGE>

            of measurement or on any date as determined by the Committee, or if
            there were no trades on such date, on the day on which a trade
            occurred next preceding such date.

                  (i) "Retirement" and "Retire" shall mean termination of the
            employment of an Employee with the Company or any Subsidiary or
            Affiliate on or after (i) the Employee's 65th birthday or (ii) the
            Employee's 55th birthday if the Employee has completed 10 years of
            service with the Company, its Subsidiaries and its Affiliates. For
            the purposes of this Section 2(i) and all other purposes of this
            Plan, Retirement shall also mean termination of employment of an
            Employee with the Company or a Subsidiary or Affiliate for any
            reason (other than the Employee's death, disability, resignation,
            willful misconduct or activity deemed detrimental to the interests
            of the Company) where, on termination, the Employee's age plus years
            of service (rounded up to the next higher whole number) equals at
            least 70 and the Employee has completed 10 years of service with the
            Company, its Subsidiaries and its Affiliates and, where applicable,
            the Employee has executed a general release, a covenant not to
            compete and/or a covenant not to solicit. For purposes of this Plan,
            service with Bristol-Myers Squibb and its subsidiaries and
            affiliates before the Effective Date shall be included as service
            with the Company.

                  (j) "Subsidiary" shall mean any corporation which at the time
            qualifies as a subsidiary of the Company under the definition of
            "subsidiary corporation" in Section 424 of the Code.

            3. Shares Available for Options: The amount of shares of the
Company's stock which may be issued for options granted under the Plan shall not
exceed 1,000,000 shares, subject to adjustment under Section 10 hereof. If and
to the extent options granted under the Plan terminate, expire, or are canceled,
forfeited, exchanged or surrendered without having been exercised, the shares
subject to such options shall again be available for purposes of the Plan.
Options granted under Sections 6 and 17 of the Plan shall not count against the
foregoing limitation, to the extent provided in Sections 6 and 17. The stock to
be issued may be either authorized and unissued shares or issued shares acquired
by the Company or its subsidiaries.

            4. Administration: The Plan shall be administered under the
supervision of the Board of Directors of the Company, which may exercise its
powers, to the extent herein provided, through the agency of the Compensation
and Management Development Committee (the "Committee"), which shall be appointed
by the Board of Directors of the Company and shall consist of not less than two
(2) directors who shall serve at the pleasure of the Board. In addition, the
Board of Directors or the Committee may delegate in writing any or all of its
authority hereunder to one or more other committees or subcommittees, and the
initial grants to be made at the time of the spin-off of the Company's stock
from Bristol-Myers Squibb Company may be made by the Compensation and Management
Development Committee of the Board of Directors of Bristol-Myers Squibb Company.
To the extent that the Board of Directors or a committee administers the Plan,
references to the Committee shall mean the Board of Directors or such committee.

      The Committee, from time to time, may adopt rules and regulations for
carrying out the provisions and purposes of the Plan and make such other
determinations, not inconsistent with the terms of the Plan, as the Committee
shall deem appropriate. The interpretation and

                                       2
<PAGE>

construction of any provision of the Plan by the Committee shall, unless
otherwise determined by the Board of Directors, be final and conclusive.

      The Committee shall maintain a written record of its proceedings. A
majority of the Committee shall constitute a quorum, and the acts of a majority
of the members present at any meeting at which a quorum is present, or acts
unanimously approved in writing, shall be the acts of the Committee.

      5. Eligibility: An option may be granted to an Employee who is actively
employed with the Company or any Subsidiary or Affiliate on the grant date
provided the Employee regularly works or is anticipated to regularly work at
least 1,000 hours in a twelve (12) consecutive month period.

      The adoption of this Plan shall not be deemed to give any Employee any
right to be granted an option to purchase Common Stock of the Company, except to
the extent and upon such terms and conditions as may be determined by the
Committee.

      6. Grants as of Effective Date:

            (a) On the effective date of the Plan, the Company shall assume from
Bristol-Myers Squibb Company options granted under the Bristol-Myers Squibb
Company TeamShare Stock Option Plan that are in effect immediately before the
effective date of this Plan with respect to employees of the Company and its
Subsidiaries and Affiliates (the "Prior Options"). Except as described below,
the terms of the Bristol-Myers Squibb Company TeamShare Stock Option Plan and
the option agreements in effect pursuant to the Bristol-Myers Squibb Company
TeamShare Stock Option Plan will continue to govern the Prior Options. However,
as a result of the assumption, the Prior Options will be converted into options
with respect to the Common Stock of the Company, and the number of shares and
the exercise price will be adjusted to reflect the spin-off of the Company from
Bristol-Myers Squibb Company. On and after the spin-off date, references in the
option and award agreements to Bristol-Myers Squibb will mean the Company. Any
shares of the Company's Common Stock that are subject to options pursuant to the
Prior Options will be issued under this Plan but will not be counted against the
limitations provided under Section 3 of the Plan. The Committee will administer
the Prior Options, as converted into options to purchase Common Stock of the
Company.

            (b) As an alternative, the Committee may determine, as a result of
certain laws, rules or regulations in countries outside the United States, not
to have the Company assume certain Prior Options.

      7. Stock Options: Stock options under the Plan shall consist of
nonqualified stock options. Each option shall be subject to the following terms
and conditions:

            (a) Grant of Options. The Committee shall (1) determine the date(s)
      on which options may be granted, (2) select the Employees to whom options
      may be granted or offered subject to collective bargaining where required,
      (3) determine the number of shares to be covered by each option so
      granted, (4) determine the terms and conditions (not inconsistent with the
      Plan) of any option granted hereunder (including but not

                                       3
<PAGE>

      limited to restrictions upon the options, conditions of their exercise, or
      on the shares of Common Stock issuable upon exercise thereof), and (5)
      prescribe the form of the instruments necessary or advisable in the
      administration of options.

            (b) Terms and Conditions of Option. Any option granted under the
      Plan shall be evidenced by a Stock Option Agreement executed by the
      Company and the optionee, in such form as the Committee shall approve,
      which agreement shall be subject to the following terms and conditions and
      shall contain such additional terms and conditions not inconsistent with
      the Plan. Unless the Optionee rejects such Stock Option Agreement in
      writing, the Optionee shall be deemed to have accepted the Stock Option
      Agreement and shall be bound by all of the terms and conditions of the
      Stock Option Agreement and the Plan.

                  (1) Number of Shares Subject to an Option. The Stock Option
            Agreement shall specify the number of shares of Common Stock subject
            to the Agreement.

                  (2) Option Price. The purchase price per share of Common Stock
            purchasable under an option will be determined by the Committee but
            will be not less than the Fair Market Value in U.S. dollars of a
            share of Common Stock on the date of the grant of the option, except
            as provided in Section 6, 12 or 17.

                  (3) Option Period. The period of each option shall be fixed by
            the Committee, but no option shall be exercisable after the
            expiration of ten years from the date the option is granted.

                  (4) Consideration. Each optionee, as consideration for the
            grant of an option, shall remain in the continuous employ of the
            Company or of one of its Subsidiaries or Affiliates for at least one
            year from the date of the granting of such option, and no option
            shall be exercisable until after the completion of such one year
            period of employment by the optionee.

                  (5) Exercise of Option.

                        (a) An option shall be exercised by delivering notice to
                  the Company or its designee at such address and in such form
                  as shall be designated by the Committee from time to time or
                  pursuant to such other procedures that may be established by
                  the Committee from time to time for the exercise of options.

                        (b) The Committee shall have the discretion to establish
                  one or more methods, and the accompanying procedures, that an
                  optionee may use to exercise and pay the option exercise price
                  including, without limitation, the designation of the
                  brokerage firm or firms through which exercises shall be
                  effected. At its discretion, the Committee may modify or
                  suspend any method or procedure for the exercise or payment of
                  stock options.

                                       4
<PAGE>

                        (c) The option exercise price shall be paid in full at
                  the time of exercise, and the Company shall require the
                  optionee to pay the Company at the time of exercise the amount
                  of tax required to be withheld by the Company under applicable
                  foreign, federal, state and local withholding tax laws. This
                  payment may be in paid in U.S. dollars or in any other manner
                  that the Committee in its sole discretion approves including,
                  without limitation, the withholding of shares of Common Stock
                  that would otherwise be distributed; provided, however, in no
                  event may shares of Common Stock be withheld in an amount that
                  exceeds the Company's minimum applicable withholding tax
                  obligation for federal (including FICA), state, foreign and
                  local tax liabilities with respect to the optionee.

                        (d) Except as provided in subsections (7), (8), (9), and
                  (10), an optionee must be an Employee at the time of exercise
                  of an option.

                        (e) Notwithstanding anything in the Plan to the
                  contrary, the Committee may, in its sole discretion, allow the
                  exercise of a lapsed grant if the Committee determines that:
                  (i) the lapse was solely the result of the Company's inability
                  to execute the exercise of an option award due to conditions
                  beyond the Company's control and (ii) the optionee made valid
                  and reasonable efforts to exercise the award. In the event the
                  Committee makes such a determination, the Company shall allow
                  the exercise to occur as promptly as possible following its
                  receipt of exercise instructions subsequent to such
                  determination.

                  (6) Nontransferability of Options. No option granted under the
            Plan shall be transferable by the optionee otherwise than by will or
            by the laws of descent and distribution, and such option shall be
            exercisable, during the optionee's lifetime, only by the optionee.

                  (7) Termination. An optionee who terminates employment with
            the Company or any Subsidiary or Affiliate (other than by
            Retirement, Disability or death) may exercise the vested portion of
            such option (as such vesting is set forth in the Stock Option
            Agreement), until the earlier of three months from the optionee's
            termination date or the expiration of the option period set forth
            therein. In the case of an optionee who terminates employment prior
            to the full vesting of the award, the unvested portion of the option
            will lapse unless the Committee has exercised its discretionary
            authority to accelerate the vesting of all or part of such option.

                  If an optionee is laid off or granted a leave of absence under
            a policy of the Company or any Subsidiary or Affiliate, the
            optionee's absence from work shall be treated as though the optionee
            remained in the employ of the Company, Subsidiary or Affiliate,
            provided that (i) in the case of a leave of absence, the optionee
            returns to work at the end of the approved period of absence and
            (ii) in the case of a layoff, the optionee returns to work within
            twelve months of the date the period of layoff commenced. An
            optionee who does not return to work as set

                                       5
<PAGE>

            forth above shall be treated as if the optionee's employment
            terminated effective as of (i) the date the optionee was scheduled
            to return to work, in the case of an approved leave of absence and
            (ii) the expiration of the twelve month period, in the case of an
            optionee who is laid off.

                  (8) Retirement. If an optionee shall cease to be employed by
            the Company on account of Retirement after the optionee has been
            continuously employed for one year or more after the grant of the
            option, or as otherwise determined by the Committee, the option
            shall be exercisable only to the extent that the optionee was
            otherwise entitled to exercise it at the time of such cessation of
            employment, unless otherwise determined by the Committee, and the
            option shall remain exercisable for the remainder of the option
            period set forth therein.

                  (9) Disability. An optionee who ceases to be actively employed
            by reason of Disability shall be treated as though the optionee
            remained in the employ of the Company or a Subsidiary or Affiliate
            until the earlier of (i) cessation of payments under a disability
            pay plan of the Company, Subsidiary or Affiliate, (ii) the
            optionee's death, or (iii) the optionee's 65th birthday.

                  (10) Death. In the event of the death of the optionee

                        (a) while in the employ of the Company or of any of its
                  Subsidiaries or Affiliates and provided the optionee shall
                  have been continuously employed for one year after the
                  granting of the option, the option shall be exercisable
                  immediately by the executors, administrators, legatees or
                  distributees of the optionee's estate, as the case may be, but
                  in no event after the expiration of the option period set
                  forth therein,

                        (b) while in the employ of the Company or a Subsidiary
                  or Affiliate but before the first anniversary of the grant,
                  the option will immediately lapse,

                        (c) after Retirement, as defined in Section 2(i), and
                  provided the optionee shall have been continuously employed
                  for one year after the granting of the option, the option
                  shall be exercisable immediately by the executors,
                  administrators, legatees or distributees of the optionee's
                  estate, as the case may be, but in no event after the
                  expiration of the option period set forth therein,

                        (d) after termination, but within the three month period
                  indicated in Section 7(b)(7), and provided the optionee shall
                  have been continuously employed for three years after the
                  granting of the option, the option shall be exercisable
                  immediately by the executors, administrators, legatees or
                  distributees of the optionee's estate, as the case may be,
                  until the earlier of one year from the date of death or the
                  expiration of the option period set forth therein.

                                       6
<PAGE>

                        In the event any option is exercised by the executors,
                  administrators, legatees or distributees of the estate of a
                  deceased optionee, the Company shall be under no obligation to
                  issue stock thereunder unless and until the Company is
                  satisfied that the person or persons exercising the option are
                  the duly appointed legal representatives of the deceased
                  optionee's estate or the proper legatees or distributees
                  thereof.

                        (11) Optionees who become Subject to Section 16 of the
                  Exchange Act. If, subsequent to the grant date, an optionee
                  becomes subject to Section 16 of the Exchange Act, the option
                  and all rights of the optionee thereunder, shall terminate
                  effective as of the day prior to such designation.

      8. Change in Control: In the event of a change in control of the Company
prior to the exercise of options granted under this Plan, but after the optionee
has completed one year of continuous employment subsequent to the date of the
granting of an option, all outstanding options shall become immediately fully
vested and exercisable notwithstanding any provisions of the Plan to the
contrary.

      In addition, in the event of a change in control of the Company, the
Committee may (i) determine that outstanding options shall be assumed by, or
replaced with comparable options by, the surviving corporation (or a parent or
subsidiary of the surviving corporation) or (ii) take such other actions with
respect to outstanding options as the Committee deems appropriate.

      For the purpose of this Plan, a change in control shall be deemed to have
occurred on the earlier of the following dates:

            The date any entity or person (including a "group" as defined in
      Section 13(d)(3) of the Exchange Act) shall have become the beneficial
      owner of, or shall have obtained voting control over, twenty percent (20%)
      or more of the outstanding common shares of the Company;

            (a) The date the shareholders of the Company approve a definitive
      agreement (i) to merge or consolidate the Company with or into another
      corporation, in which the Company is not the continuing or surviving
      corporation or pursuant to which any common shares of the Company would be
      converted into cash, securities or other property of another corporation,
      other than a merger of the Company in which holders of common shares
      immediately prior to the merger have the same proportionate ownership of
      Common Stock of the surviving corporation immediately after the merger as
      immediately before, or (ii) to sell or otherwise dispose of substantially
      all the assets of the Company; or

            (b) The date there shall have been a change in a majority of the
      Board of Directors of the Company within a twelve (12) month period
      beginning after the effective date of the Plan, unless the nomination for
      election by the Company's shareholders of each new director was approved
      by the vote of three-fourths of the directors then still in office who
      were in office at the beginning of the twelve (12) month period.

                                       7
<PAGE>

      9. Determination of Breach of Conditions: The determination of the
Committee as to whether an event has occurred resulting in a forfeiture or a
termination or reduction of the Company's obligations in accordance with the
provisions of the Plan shall be conclusive.

      10. Adjustment in the Event of Change in Stock: In the event of changes in
the outstanding Common Stock of the Company by reason of stock dividends,
recapitalization, mergers, consolidations, stock splits, combinations or
exchanges of shares and the like, the aggregate number and class of shares
available under the Plan, the number, class and the price of shares subject to
outstanding options shall be appropriately adjusted by the Committee, whose
determination shall be conclusive.

      11. Taxes: In connection with the transfer of shares of Common Stock to an
optionee (or at such earlier date as may be required by local law), the Company
may require the optionee to pay the amount required by any applicable
governmental entity to be withheld or otherwise deducted and paid with respect
to such transfer. Subject to Section 12 hereof, an optionee shall satisfy the
obligation to pay withholding tax by providing the Company with funds (in U.S.
dollars) sufficient to enable the Company to pay such Withholding Tax, or at the
Company's discretion, the Company may retain or accept upon delivery thereof by
the optionee shares of Common Stock sufficient in value to cover the amount of
such withholding tax; provided that shares may not be withheld in excess of the
Company's minimum applicable withholding tax for federal (including FICA),
state, foreign and local tax liabilities with respect to the optionee.

      12. Employees Based Outside of the United States: Notwithstanding any
provision of the Plan to the contrary, in order to foster and promote
achievement of the purposes of the Plan or to comply with provisions of laws in
other countries in which the Company, its Affiliates and its Subsidiaries
operate or have Employees, the Committee, in its sole discretion, shall have the
power and authority to (i) determine which Employees employed outside the United
States are eligible to participate in the Plan, (ii) modify the terms and
conditions of any options granted to Employees who are employed outside the
United States, (iii) establish subplans, modified option exercise procedures and
other terms and procedures to the extent such actions may be necessary or
advisable, and (iv) grant to Employees employed in countries wherein the
granting of stock options is impossible or impracticable, as determined by the
Committee, stock appreciation rights with terms and conditions that, to the
fullest extent possible, are substantially identical to the stock options
granted hereunder. In addition, the Committee may grant such stock appreciation
rights to individuals who provide services to the Company and who otherwise
would be characterized as employees, but who are not permitted to be Employees
of the Company pursuant to local laws of the country wherein the workers are
employed.

      13. Amendment of the Plan: The Board of Directors may amend or suspend the
Plan at any time and from time to time. No such amendment of the Plan may,
however, without the written consent of the optionee, alter or impair any
option.

      14. Miscellaneous: By accepting any benefits under the Plan, each optionee
and each person claiming under or through such optionee shall be conclusively
deemed to have indicated acceptance and ratification of, and consent to, any
action taken or made to be taken or made under the Plan by the Company, the
Board, the Committee or any other committee appointed by the Board. No
participant or any person claiming under or through him or her shall have any

                                       8
<PAGE>

right or interest, whether vested or otherwise, in the Plan or in any option
thereunder, contingent or otherwise, unless and until all of the terms,
conditions and provisions of the Plan and the Agreement that affect such
participant or such other person shall have been complied with. Nothing
contained in the Plan or in any Agreement shall require the Company to segregate
or earmark any cash or other property. Neither the adoption of the Plan nor its
operation shall in any way affect the rights and powers of the Company or any of
its Subsidiaries or Affiliates to dismiss and/or discharge any Employee at any
time.

      15. Conditions: The Company shall not be required to issue or deliver any
certificate or certificates for shares of Common Stock purchased upon the
exercise of any option granted under the Plan prior to (i) the admission of such
shares to listing on any stock exchange on which the stock may then be listed,
(ii) the completion of any registration or other qualification of such shares
under any state or federal law or rulings or regulations of any governmental
regulatory body, (iii) the obtaining of any consent or approval or other
clearance from any governmental agency, which the Company shall, in its sole
discretion, determine to be necessary or advisable, and (iv) the payment to the
Company, upon its demand, of any amount requested by the Company for the purpose
of satisfying its liability, if any, to withhold federal, state or local income
or earnings tax or any other applicable tax or assessment (plus interest or
penalties thereon, if any caused by a delay in making such payment) incurred by
reason of the exercise of any option granted under the Plan or the transfer of
shares thereupon.

      16. Term of the Plan: The Plan shall become effective as of August 6, 2001
by action of the Board of Directors. The Plan shall terminate on the date that
is five years after the effective date of the Plan, or at such earlier date as
may be determined by the Board of Directors. Termination of the Plan, however,
shall not affect the rights of optionees under options theretofore granted to
them, and all unexpired options shall continue in force and operation after
termination of the Plan except as they may lapse or be terminated by their own
terms and conditions.

      17. Grants in Connection with Corporate Transactions and Otherwise:
Nothing contained in this Plan shall be construed to (i) limit the right of the
Committee to make grants under this Plan in connection with the acquisition, by
purchase, lease, merger, consolidation or otherwise, of the business or assets
of any corporation, firm or association, including grants to employees thereof
who become employees of the Company, or for other proper corporate purposes, or
(ii) limit the right of the Company to grant options or make other awards
outside of this Plan. Without limiting the foregoing, the Committee may make a
grant to an employee of another corporation who becomes an employee of the
Company by reason of a corporate merger, consolidation, acquisition of stock or
property, reorganization or liquidation involving the Company in substitution
for an option or award granted by such corporation. The terms and conditions of
the substitute grants may vary from the terms and conditions required by the
Plan and from those of the substituted stock incentives. The Committee shall
prescribe the provisions of the substitute grants. Any options that are
converted into Company options as a result of a merger or acquisition will not
count against the limitations provided under Section 3.

      18. Governing Law: This Plan, and the validity and construction of any
options granted hereunder, shall be governed by the laws of the State of
Indiana.

                                       9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00027-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00027-of-00352.parquet"}]]