Document:

<PAGE>   1
                                                                    Exhibit 10.3

                                                                            OCIP

PHARMACIA

2000 Operations Committee Incentive Plan

November 2000
<PAGE>   2
2000 OPERATIONS COMMITTEE INCENTIVE PLAN (OCIP) DOCUMENT

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PLAN OBJECTIVE
The Operations Committee Incentive Plan (alternatively referred to as the OCIP,
or the Plan) is designed to encourage specific results-oriented actions on the
part of members of the Company's Operations Committee (OC). The Plan closely
aligns financial rewards with the achievement of specific objectives linked to
business results, unit/functional and individual performance, and the
participant's demonstrated commitment to the Company's Best-Managed Behaviors.
The higher the level of achievement, the greater the financial reward to
participants.

ELIGIBILITY
Eligible employees (participants) in the OCIP include all Pharma members of the
OC. Ag members of the OC will be covered under their unit's respective annual
incentive program.

TARGET AWARDS
Each OCIP participant will have a target incentive percent established at the
start of the year (or effective date of hire or transfer if one becomes a
participant after the start of the year). Each individual's target incentive
percent is established by their senior management, including the Chief Executive
Officer. The Compensation Committee of the Board of Directors of Pharmacia
Corporation approves the target incentive percent for all Elected Officers. The
target is set based on a number of factors, including, but not limited to:

-        Market competitiveness of the position,

-        Job level,

-        Base salary level,

-        Past individual performance, and

-        Expected contribution to future company performance and business
         impact.

PLAN DESIGN
The OCIP contains specific measures related to Company results, Business
Unit/Function (BU/F) and Personal results, and Best-Managed Behaviors. These
measures are formally defined below.

TOTAL PHARMA SALES GROWTH is defined as the percent increase of 2000 Total
Pharma Net Sales over 1999 Net Sales. Total Pharma sales include Pharmaceutical
and Global Specialty Operations only, and exclude the Ag portion of Pharmacia
Corporation's business. For incentive determination purposes, sales figures may
be restated -- following standard accounting practices -- to reflect unusual
and/or non-recurring items such as acquisitions, divestitures, extraordinary
accounting rule changes, etc.

TOTAL COMPANY EPS is defined as Net Annual Earnings for the entire Pharmacia
Corporation (including the Ag business) -- as adjusted for certain special items
such as restructuring costs, extraordinary accounting rule changes, etc. --
divided by the average annual number of common shares outstanding.

BU/F MEASURES will be based on each participant's achievement versus his/her
PERSONAL OBJECTIVES for 2000. This component of the Plan also has a qualifier
linked to CAPITAL CHARGES for the participant's designated business group. More
detail on this qualifier will be covered later in the document.

BEST-MANAGED BEHAVIORS will be measured based on an overall assessment made at
year-end by senior management (including the CEO) of the participant's
demonstrated commitment to these important management principles of the Company.
<PAGE>   3
WEIGHTING OF INCENTIVE COMPONENTS
The weighting of incentive components will vary based on the participant's
designated business group.

                       INCENTIVE COMPONENT MIX / WEIGHTING

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
                    TOTAL
                    PHARMA     TOTAL
                    SALES     COMPANY        BU/F MEASURES &          BEST-MANAGED
                    GROWTH      EPS        PERSONAL OBJECTIVES         BEHAVIORS      TOTAL
-------------------------------------------------------------------------------------------
<S>                 <C>       <C>        <C>                          <C>             <C>

PHARMA MARKET
REGION HEADS,         15%       15%                 40%                    30%         100%
GBM GVPS,
GSO HEAD

-------------------------------------------------------------------------------------------

ALL OTHER
PARTICIPANTS          25%       25%                 20%                    30%         100%

-------------------------------------------------------------------------------------------

                                             CAPITAL CHARGE
                                                QUALIFIER:
                                           The BU/F payout is
                                         funded at attained % of
                                         target if 2000 Earnings
                                          Before Taxes Minus 9%
                                          Interest on Operating
                                         Capital Base is equal to
                                            or greater than the
                                          comparable figure for
                                          1999. If less than 1999,
                                           funding for the BU/F
                                            component is zero.
-------------------------------------------------------------------------------------------
</TABLE>

DETERMINING INCENTIVE PAYOUTS
Achievement relative to the performance goals established for each component
determines the extent to which a participant receives an annual incentive award.
The Compensation Committee of the Board of Directors approves the final
incentive payments for all Elected Officers.

COMPANY COMPONENTS
For TOTAL PHARMA SALES GROWTH and TOTAL COMPANY EPS, performance is measured
relative to the established targets for each component. A combined
performance/payout table will be used to determine the Plan's overall incentive
funding factor for these two components. This table, which shows the incentive
funding factor for various combinations of sales growth and EPS performance, is
provided in the back of this document.

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                                        2
<PAGE>   4
BUSINESS UNIT/FUNCTION (BU/F) MEASURES & PERSONAL OBJECTIVES
This component will be based on the participant's performance versus his/her
personal objectives established for 2000. Performance against these objectives
will be assessed at year-end by the participant's senior management (including
the CEO), and an appropriate payout percent for this component will be
determined based on this assessment. Payouts under this component may range from
0% to 200% for any individual participant.

The payout for this component of the Plan will only be funded if the CAPITAL
CHARGE QUALIFIER for the participant's designated business group is met. To
qualify for the BU/F payout, the 2000 Capital Charge Qualifier of the
participant's business group must meet or exceed the comparable figure from
1999. For purposes of this qualifier, the following points will apply:

-        The designated business groups for purposes of applying this payout
         qualifier are as follows:

<TABLE>
<CAPTION>
                      PARTICIPANTS                 DESIGNATED BUSINESS GROUP
                      ------------                 -------------------------
<S>                                               <C>
              GCO, GBM and R&D Presidents,          Total Pharma (Rx + GSO)
              Global Supply SVP and Chief
              Scientific Officer

              Pharma Market Region Heads and           Pharma (Rx only)
              GBM Group Vice Presidents

              Global Specialty Operations         Global Specialty Operations

              All Other Participants                     Total Company
</TABLE>

-        Capital Charge Qualifier = Earnings Before Taxes minus 9% Interest on
         Operating Capital Base.

-        Operating Capital Base for all participants includes: Inventory;
         Accounts Receivable; Net Property, Plant and Equipment; Net Intangibles
         from Investments after January 1, 1999; and the Net Book Value of the
         Company's Biotech Investment.

BEST-MANAGED BEHAVIORS
This component will be measured based on an overall assessment made at year-end
by senior management (including the CEO) of the participant's demonstrated
commitment to the Company's five Best-Managed Behaviors. These behaviors
include:

-         Shared Accountability and Transparency
-         Participative Management
-         Continuous Improvement
-         Listening and Learning
-         Coaching and Developing Others

The payout for this component may range from 0% to 200% of target for any
individual participant.

OCIP PAYMENT
At the end of the Plan year, after all results have been finalized for each
component, the actual incentive payment for each participant will be determined.
If the participant is an Elected Officer, the final incentive payment must be
approved by the Compensation Committee of the Board of Directors. Final awards
are expected to be issued in March 2001.

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                                       3
<PAGE>   5
If a participant has an outstanding debt to the Company at the time an annual
incentive payment would otherwise be made, the Company may apply the incentive
payment to satisfy the debt. If a participant is found to have violated the
Company's Business Ethics Policy, the Company may withhold, within the
discretion of the Chief Compliance Officer, all or part of the participant's
incentive payment.

GENERAL PLAN PROVISIONS

TARGET INCENTIVE PERCENTS
Target incentive percents are generally established at the start of the year for
all participants, or on the effective date of new hire or transfer for
participants who become eligible for the OCIP after the start of the Plan year.
This target usually remains fixed for the entire Plan year. In those
circumstances where a participant's target incentive percent changes during the
Plan year, the target in effect at the end of the Plan year will apply for
determining the participant's total OCIP award (i.e., target incentive percents
will not be prorated).

ELIGIBLE EARNINGS
Final actual incentive percents will be applied to eligible earnings to
determine final payout amounts. Eligible earnings are defined as the
participant's annual base salary as of December 31, 2000, plus any lump sum
merit increases earned during the year. Eligible earnings will be adjusted to
reflect:

-        Short term disability periods in excess of 90 days.

-        Any period on long term disability.

-        Any period on unpaid leave of absence.

PARTIAL YEAR ELIGIBILITY
For the 2000 plan year, all OCIP participants will be considered participants
for the entire plan year, regardless of when they became an OCIP member. In most
cases, participants must be employed as of December 31, 2000, to be eligible for
a payout from the 2000 OCIP.

NEW HIRES -- New employees who meet the eligibility requirements of the OCIP
will be eligible to receive a prorated incentive based on the time they were
eligible for the Plan. Participants must be employed by the Company on December
31, 2000, to be eligible for a prorated incentive in the 2000 OCIP.

TRANSFERS -- For employees who transfer from one job or employee status to
another, eligibility will depend on their award eligibility before and after the
transfer.

-   If an employee transfers from a position that is not eligible to participate
    in the OCIP to one that is eligible, he/she will be considered a participant
    in the OCIP for the full year. The employee will not be eligible for a
    prorated award from the plan he/she was previously participating in.

-   If an employee transfers from one OCIP-eligible position to another, the
    total OCIP award will be based on the eligible earnings, performance
    measures and annual incentive target in effect on December 31, 2000.

-   If an employee transfers from an OCIP-eligible position to one that is not
    eligible, he/she will cease participating in the OCIP as of the date of
    transfer. The participant's OCIP award will be prorated based on the time
    they were eligible for the Plan. Awards will be calculated using the
    eligible earnings, performance measures and incentive target in effect on
    the date of transfer. The employee must be employed by the Company on
    December 31, 2000, to qualify for a partial year OCIP payment. For the time
    period following OCIP eligibility, the terms and conditions of the plan
    he/she transfers to will apply.

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                                       4
<PAGE>   6
TERMINATIONS -- Participants who terminate employment prior to the last day of
the incentive period (December 31, 2000) will not be eligible for any OCIP
payment for that year unless it is contractually stated in a separation
agreement, except for the following circumstances:

-        Participants who die or who retire under a Company-sponsored retirement
         program during the Plan year will be eligible for a prorated award. The
         award will be calculated from the date when they became eligible for
         the 2000 OCIP to the date of death or retirement. In the case of the
         death of a participant, any OCIP award payable to the participant shall
         be paid to his/her beneficiary in a single payment at the same time as
         all other incentive awards are distributed. For this purpose, the Plan
         will use the beneficiary named under the Company-sponsored life
         insurance plan. If no life insurance beneficiary is designated, the
         beneficiary will be the decedent's estate.

-        Participants who leave the Company under a Company-sponsored disability
         program, separation program or other program approved by the Management
         Committee, will be eligible for a prorated OCIP award. The award will
         be calculated from the date when they became eligible for the 2000 OCIP
         to the effective date of separation.

Awards for terminees who are eligible for a prorated payment under the above
circumstances will be calculated using the eligible earnings, performance
measures and incentive target in effect on the date of termination.

LEAVE OF ABSENCE -- Participants who are not actively employed for the entire
incentive period because they were on an approved leave of absence, but who are
still employed on December 31, 2000, will be eligible to receive a prorated
incentive payment for the period he/she was actively working, as well as short
term absences and the first 90 days of disability leave.

TAX CONSIDERATIONS, WITHHOLDING AND SAVINGS PLAN CONTRIBUTIONS
Incentive payments under the Plan will be treated as taxable income for the year
in which the participant receives the award. The Company will withhold
appropriate amounts from all payments to satisfy all federal, state and local
tax withholding requirements. Additionally, for employees who participate in the
Company's savings plan, contributions to the savings plan will be deducted out
of the participant's OCIP payment in an amount equal to the employee's current
standard contribution percentage. This same principle also applies to eligible
participants who have made prior elections to defer all or a portion of their
annual incentive payment into the Company's Savings+Plus deferred compensation
program.

NO RIGHTS TO EMPLOYMENT
Nothing in this Plan, and no action taken pursuant to the Plan, shall confer
upon any participant the right to continue in the employ of the Company, or
affect the right of the Company to terminate any participant's employment at any
time and for any or no reason.

PLAN ADMINISTRATION
The general design of the Plan shall be approved and sponsored by the
Compensation Committee of the Board of Directors of the Company. Global Human
Resources shall have accountability to implement all administrative aspects of
the Plan. All payments made under this Plan to Elected Officers of the Company
are subject to review and approval by the Compensation Committee. The Chief
Executive Officer (CEO) of the Company shall have the full power and authority
to interpret the Plan, make factual determinations, and to prescribe, amend and
rescind any rules, forms or procedures as deemed necessary or appropriate for
the proper administration of the Plan. Any determinations, decisions, actions or
interpretations to be made under the Plan by the CEO, including determinations
as to issues on which the Plan Document is silent, shall be made in his sole
discretion, not in any fiduciary capacity and need not be uniformly applied to
similarly situated individuals. All determinations made by the CEO shall be
final, conclusive and binding on the Company, all participants, and any other
persons having or claiming an interest under the Plan.

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                                       5
<PAGE>   7
AMENDMENT AND TERMINATION OF THE PLAN
The Company reserves the right to amend or terminate the Plan at anytime by
action of the CEO, and in the case of Elected Officers, by action of the
Compensation Committee. This right includes, but is not limited to, the
modification of eligibility for participation, incentive measures, performance
targets and/or performance results. This right also includes the modification of
the terms of the Plan as may be necessary or desirable to comply with the laws
or local customs of countries in which the Company operates or has employees.

The Company's obligation to pay compensation as herein provided is subject to
any applicable orders, rules or regulations of any government agency or office
having authority to regulate the payment of wages, salaries, and other forms of
compensation.

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                                       6
<PAGE>   8
                    2000 OPERATIONS COMMITTEE INCENTIVE PLAN
                           PERFORMANCE/PAYOUT TABLE *

                        TOTAL COMPANY EARNINGS PER SHARE

<TABLE>
<CAPTION>
EPS Growth over 1999>              22%       26%       31%       35%       40%       44%       49%                           53%+
                        <$1.35    $1.35     $1.40     $1.45     $1.50     $1.55     $1.60     $1.65                   > or = $1.70
Total Pharma
Sales Growth            -----------------------------------------------------------------------------------------------------------
<S>                     <C>       <C>       <C>       <C>       <C>       <C>       <C>       <C>     <C>
> or = 18.0%            100.0%    125.0%    135.0%    142.5%    150.0%    162.5%    175.0%    187.5%                        200.0%
                        -----------------------------------------------------------------------------------------------------------
      17.0%              94.0%    119.0%    129.0%    136.5%    144.0%    156.5%    169.0%    181.5%                        194.0%
                        -----------------------------------------------------------------------------------------------------------
      16.0%              88.0%    113.0%    123.0%    130.5%    138.0%    150.5%    163.0%    175.5%                        188.0%
                        -----------------------------------------------------------------------------------------------------------
      15.0%              82.0%    107.0%    117.0%    124.5%    132.0%    144.5%    157.0%    169.5%                        182.0%
                        -----------------------------------------------------------------------------------------------------------
      14.0%              75.0%    100.0%    110.0%    117.5%    125.0%    137.5%    150.0%    162.5%                        175.0%
                        -----------------------------------------------------------------------------------------------------------
      13.0%              69.0%     94.0%    104.0%    111.5%    119.0%    131.5%    144.0%    156.5%                        169.0%
                        -----------------------------------------------------------------------------------------------------------
      12.0%              63.0%     88.0%     98.0%    105.5%    113.0%    125.5%    138.0%    150.5%                        163.0%
                        -----------------------------------------------------------------------------------------------------------
      11.0%              57.0%     82.0%     92.0%     99.5%    107.0%    119.5%    132.0%    144.5%                        157.0%
                        -----------------------------------------------------------------------------------------------------------
      10.0%              50.0%     75.0%     85.0%     92.5%    100.0%    112.5%    125.0%    137.5%                        150.0%
                        -----------------------------------------------------------------------------------------------------------
       9.0%              46.0%     71.0%     81.0%     88.5%     96.0%    108.5%    121.0%    133.5%                        146.0%
                        -----------------------------------------------------------------------------------------------------------
       8.0%              42.0%     67.0%     77.0%     84.5%     92.0%    104.5%    117.0%    129.5%                        142.0%
                        ----------------------------------------------------------------------------------------------------------
       7.0%              38.0%     63.0%     73.0%     80.5%     88.0%    100.5%    113.0%    125.5%                        138.0%
                        -----------------------------------------------------------------------------------------------------------
       6.0%              34.0%     59.0%     69.0%     76.5%     84.0%     96.5%    109.0%    121.5%                        134.0%
                        -----------------------------------------------------------------------------------------------------------
       5.0%              30.0%     55.0%     65.0%     72.5%     80.0%     92.5%    105.0%    117.5%                        130.0%
                        -----------------------------------------------------------------------------------------------------------
       4.0%              25.0%     50.0%     60.0%     67.5%     75.0%     87.5%    100.0%    112.5%                        125.0%
                        -----------------------------------------------------------------------------------------------------------
      <4.0%               0.0%     25.0%     35.0%     42.5%     50.0%     62.5%     75.0%     87.5%                        100.0%
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

* Notes:  1) Figures shown in table are stated as "% of target payout"
          2) Payout funding percentage is prorated for incremental performance
             between the indicated performance/payout levels
          3) Final payout funding percentage will be adjusted to reflect the
             respective weighting of sales growth and EPS incentive components
             of each participant

--------------------------------------------------------------------------------
                                       7<PAGE>   1
                                                                    Exhibit 10.4

                                                                            OCIP

PHARMACIA

2000 Operations Committee Incentive Plan
<PAGE>   2
2000 OPERATIONS COMMITTEE INCENTIVE PLAN OVERVIEW

         The 2000 Operations Committee Incentive Plan is summarized on
         the first three pages. Specific details on the Plan and how
         actual payouts are determined are provided in the Plan
         Document that follows this overview.

--------------------------------------------------------------------------------

PLAN OBJECTIVE
The Operations Committee Incentive Plan (alternatively referred to as the OCIP,
or the Plan) is designed to encourage specific results-oriented actions on the
part of members of the Operations Committee (OC) of Pharmacia Corporation, and
to recognize and reward positive results. The Plan closely aligns financial
rewards with the achievement of specific objectives linked to business results,
unit/functional and individual performance, and the participant's demonstrated
commitment to leadership. The higher the level of the achievement, the greater
the financial reward to participants.

KEY FEATURES
There are six key elements (identified in BOLD ITALICS below) that determine
OCIP payouts:

-        A TARGET INCENTIVE PERCENT is set at the beginning of the year (or
         effective date of hire or transfer if one becomes a participant after
         the start of the year) and is expressed as a percentage of a
         participant's eligible earnings. The target depends on a number of
         factors -- including market competitiveness, as well as a participant's
         position level, salary level, past individual performance and expected
         future contributions to the organization.

-        Two Company performance measures -- SALES GROWTH and EARNINGS PER SHARE
         -- represent a significant portion of the Plan's total payout
         opportunity. Such a strong focus on these two measures underscores
         their importance to our success in creating shareholder value, in
         addition to generating more global consistency and teamwork across the
         Company.

-        BUSINESS UNIT/FUNCTION (BU/F) MEASURES & PERSONAL OBJECTIVES provide
         opportunity for participants to earn incentives based on the
         performance of their unit/function, as determined from pre-established
         personal objectives. Funding for this component is contingent on
         meeting the participant's applicable CAPITAL CHARGE QUALIFIER.

-        A component linked to LEADERSHIP COMMITMENTS accounts for the remainder
         of the Plan's payout.

The maximum payout to any individual under the Plan is 200 percent of targeted
payout. Payout for the 2000 Plan is expected to occur in March 2001.

2000 PERFORMANCE MEASURES

COMPANY PERFORMANCE MEASURES

-        TOTAL PHARMA SALES GROWTH - For incentive determination purposes, Sales
         Growth will be based on Total Pharma (i.e., pharmaceutical and Global
         Specialty Operations) performance. The target payout for this measure
         will be made if 10% Sales Growth is achieved, with the maximum payout
         awarded at 18% growth.

--------------------------------------------------------------------------------
                                       1
<PAGE>   3
-        TOTAL COMPANY EARNINGS PER SHARE (EPS) - The target payout for this
         measure will be made if $1.50 EPS is achieved. The maximum payout will
         be awarded if $1.70 EPS is attained.

BU/F MEASURES AND LEADERSHIP COMMITMENTS

-        BU/F MEASURES are based on each participant's PERSONAL OBJECTIVES
         established for 2000. The payout for this component will only be made
         if the participant's applicable CAPITAL CHARGE QUALIFIER is met.
         Additional details on this qualifier are provided later in the Plan
         Document.

-        LEADERSHIP COMMITMENTS are based on 360-degree management behaviors
         assessment, in addition to an overall general assessment made by the
         participant's senior management (including the CEO). A key basis for
         making this assessment will be the participant's demonstrated
         performance against the company's five Best Managed Behaviors.

The target payout mix between components will vary based on the participant's
designated business group. Refer to the overview below for the applicable payout
mix of each participant.

<TABLE>
--------------------------------------------------------------------------------------
                 TOTAL
                 PHARMA     TOTAL
                 SALES     COMPANY      BU/F MEASURES &           LEADERSHIP
                 GROWTH      EPS      PERSONAL OBJECTIVES         COMMITMENTS    TOTAL
--------------------------------------------------------------------------------------
<S>              <C>       <C>        <C>                         <C>            <C>
PHARMA MARKET
REGION HEADS,
GBM GVPS,          15%       15%               40%                    30%        100%
GSO HEAD

--------------------------------------------------------------------------------------
ALL OTHER
PARTICIPANTS       25%       25%               20%                    30%        100%
--------------------------------------------------------------------------------------

                                          [Arrow Graphic]
                                          CAPITAL CHARGE
                                            QUALIFIER:
                                        The BU/F payout is
                                      funded at attained % of
                                      target if 2000 Earnings
                                       Before Taxes Minus 9%
                                       Interest on Operating
                                       Capital Base is equal
                                        to or greater than
                                       comparable figure for
                                      1999. If less than 1999,
                                        funding for the BU/F
                                         component is zero.
--------------------------------------------------------------------------------------
</TABLE>

--------------------------------------------------------------------------------
                                       2
<PAGE>   4
PURPOSE OF THE PLAN DOCUMENT

The purpose of the Plan Document that follows is to provide eligible
participants with an understanding of the key design features of the 2000
Operations Committee Incentive Plan (OCIP).

In the pages that follow, participants will learn the specifics about:

-        Plan measures and weighting,

-        Performance objectives,

-        Performance determination,

-        Final payout determination,

-        Definitions and terminology, and

-        Plan administration.

--------------------------------------------------------------------------------
                                       3
<PAGE>   5
2000 OPERATIONS COMMITTEE INCENTIVE PLAN (OCIP) DOCUMENT

--------------------------------------------------------------------------------

ELIGIBILITY
Eligible employees (participants) in the OCIP include all Operations Committee
(OC) members (excluding Ag) of Pharmacia Corporation.

TARGET AWARDS
Each OCIP participant will have a target incentive percent established at the
start of the year (or effective date of hire or transfer if one becomes a
participant after the start of the year). Each individual's target incentive
percent is established by their senior management, including the Chief Executive
Officer. The Compensation Committee of the Board of Directors of Pharmacia
Corporation approves the target incentive percent for all Elected Officers. The
target is set based on a number of factors, including, but not limited to:

-        Market competitiveness of the position,

-        Job level,

-        Base salary level,

-        Past individual performance, and

-        Expected contribution to future company performance and business
         impact.

The methodology for determining final incentive awards is covered later in the
Plan Document.

PLAN DESIGN
The OCIP contains specific measures related to Company results, Business
Unit/Function (BU/F) and Personal results, and Leadership Commitments. Company
performance accounts for a significant portion of the incentive target of each
participant, while BU/F & Personal Objectives and Leadership Commitments account
for the remaining portion of the incentive target.

For incentive determination purposes, Company performance is measured by year to
year Sales Growth and Earnings Per Share (EPS). These measures are formally
defined below.

SALES GROWTH is defined as the percent increase of 2000 Total Pharma Net Sales
over 1999 Total Pharma Net Sales. Total Pharma Net Sales include pharmaceutical
and Global Specialty Operations sales only. For incentive determination
purposes, sales figures may be restated -- following standard accounting
practices -- to reflect unusual and/or non-recurring items such as large sales,
divestitures, etc.

EPS is defined as Net Annual Earnings for the entire Pharmacia Corporation
(including Ag) -- as adjusted for certain special items such as restructuring
costs -- divided by the average annual number of Pharmacia Corporation common
shares outstanding.

BU/F MEASURES will be based on each participant's achievement versus his/her
PERSONAL OBJECTIVES for 2000. This component of the Plan also has a qualifier
linked to CAPITAL CHARGES for the participant's designated business group. More
detail on this qualifier will be covered later in the document.

--------------------------------------------------------------------------------
                                       4
<PAGE>   6
LEADERSHIP COMMITMENTS will be measured based on the results of 360-degree
management behaviors assessment, in addition to an overall assessment of
leadership performance to be made at year-end by the participant's senior
management (including the CEO).

WEIGHTING OF INCENTIVE COMPONENTS
The weighting of incentive components for all OCIP participants is as follows:

<TABLE>
<CAPTION>
 -------------------------------------------------------------------------
                  TOTAL
                  PHARMA     TOTAL
                  SALES     COMPANY      BU/F MEASURES &      LEADERSHIP
                  GROWTH      EPS      PERSONAL OBJECTIVES    COMMITMENTS
 -------------------------------------------------------------------------
<S>               <C>       <C>        <C>                    <C>

 PHARMA MARKET
 REGION HEADS,     15%        15%              40%                30%
 GBM GVPS,
 GSO HEAD

 -------------------------------------------------------------------------

 ALL OTHER
 PHARMA            25%        25%              20%                30%
 PARTICIPANTS

 -------------------------------------------------------------------------
</TABLE>

DETERMINING INCENTIVE PAYOUTS
Achievement relative to the performance goals established for each component
determines the extent to which a participant receives an annual incentive award.
The Compensation Committee of the Board of Directors approves final incentive
payments for all Elected Officers.

COMPANY COMPONENTS
For TOTAL PHARMA SALES GROWTH and TOTAL COMPANY EPS, performance is measured
relative to the established targets for each component. The payout curves for
these components are illustrated on the next two pages.

--------------------------------------------------------------------------------
                                       5
<PAGE>   7
                       2000 TOTAL PHARMA SALES GROWTH(1)

                          [LINE GRAPH OF SALES GROWTH]

(1) See Appendix I for table showing payout factor for incremental levels of
Sales Growth performance

                     2000 TOTAL COMPANY EPS PAYOUT CURVE(2)

                        [LINE GRAPH OF EPS PAYOUT CURVE]

(2) See Appendix II for table showing payout factor for incremental levels of
EPS performance

--------------------------------------------------------------------------------
                                       6
<PAGE>   8
Some additional points to note regarding the Sales Growth and EPS components:

-        The maximum payout is 200% of target payout for each component.

-        Payouts will be prorated for incremental performance between the
         indicated performance/payout levels in Appendices I and II.

BUSINESS UNIT/FUNCTION (BU/F) MEASURES & PERSONAL OBJECTIVES
This component will be based on the participant's performance versus his/her
Personal Objectives established for 2000. Performance against these objectives
will be assessed at year-end by the participant's senior management (including
the Chief Executive Officer), and an appropriate payout percent for this
component will be determined based on this assessment. Similar to the Sales
Growth and EPS components, payouts under the BU/F MEASURES & PERSONAL OBJECTIVES
component may range from 0% to 200% for any individual participant.

The payout for this component of the Plan will only be funded if the CAPITAL
CHARGE QUALIFIER for the participant's designated business group is met. To
qualify for the BU/F payout, the 2000 Capital Charge Qualifier of the
participant's business group must meet or exceed the comparable figure in 1999.
For purposes of this qualifier, the following points will apply:

-        The designated business groups for purposes of applying this payout
         qualifier are as follows:

<TABLE>
<CAPTION>
                   PARTICIPANTS                  DESIGNATED BUSINESS GROUP
                   ------------                  -------------------------
<S>                                            <C>
            GCO, GBM and R&D Presidents,         Total Pharma (Rx + GSO)
            Global Supply SVP and Chief
            Scientific Officer

            Pharma Market Region Heads and          Pharma (Rx only)
            GBM Group Vice Presidents

            Global Specialty Operations        Global Specialty Operations

            All Other Participants                   Total Company
</TABLE>

-        Capital Charge Qualifier = Earnings Before Taxes minus 9% Interest on
         Operating Capital Base.

-        Operating Capital Base for all participants includes: Inventory;
         Accounts Receivable; Net Property, Plant and Equipment; Net Intangibles
         from Investments after January 1, 1999; and the Net Book Value of the
         Company's Biotech Investment.

LEADERSHIP COMMITMENTS
This component will be based on the results of 360-degree management behaviors
assessment, as well as an overall general assessment made by the participant's
senior management (including the CEO). A key basis for making this assessment
will be the participant's demonstrated performance against the company's five
Best Managed Behaviors. The participant's final payout percent will be
determined relative to their targeted payout level based on the collective
results of these two elements. The payout for this component may range from 0%
to 200% for any individual participant.

--------------------------------------------------------------------------------
                                       7
<PAGE>   9
OCIP PAYMENT
At the end of the Plan year, after all results have been finalized (including
Company, BU/F & Personal Objectives, and Leadership Commitments), the actual
incentive payment will be determined. If the participant is an Elected Officer,
the final incentive payment must be approved by the Compensation Committee of
the Board of Directors. Final awards are expected to be issued in March 2001.

If a participant has an outstanding debt to the Company at the time an annual
incentive payment would otherwise be made, the Company may apply the incentive
payment to satisfy the debt. If a participant is found to have violated the
Company's Business Ethics Policy, the Company may withhold, within the
discretion of the Chief Compliance Officer, all or part of the participant's
incentive payment.

GENERAL PLAN PROVISIONS

TARGET INCENTIVE PERCENTS
Target incentive percents are generally established at the start of the year for
all participants, or on the effective date of new hire or transfer for
participants who become eligible for the OCIP after the start of the Plan year.
This target usually remains fixed for the entire Plan year. In those
circumstances where a participant's target incentive percent changes during the
Plan year, the target in effect on December 31, 2000 will apply for determining
the participant's total OCIP award (i.e., target incentive percents will not be
prorated).

ELIGIBLE EARNINGS
Final actual incentive percents will be applied to eligible earnings to
determine final payout amounts. Eligible earnings are defined as the
participant's annual base salary as of December 31, 2000, plus any lump sum
merit increases earned during the year. Eligible earnings will be adjusted to
reflect:

-        Short term disability periods in excess of 90 days.

-        Any period on long term disability.

-        Any period on unpaid leave of absence.

PARTIAL YEAR ELIGIBILITY
For the 2000 plan year, all OCIP participants will be considered participants
for the entire plan year, regardless of when they became an OCIP member. In most
cases, participants must be employed as of December 31, 2000, to be eligible for
a payout from the 2000 OCIP.

NEW HIRES -- New employees who meet the eligibility requirements of the OCIP
will be eligible to receive a prorated incentive based on the time they were
eligible for the Plan. To be eligible for a prorated incentive in the 2000 OCIP,
both of the following criteria must be met:

-        New employees must begin their employment prior to November 1, 2000.

-        Participants must be employed by the Company on December 31, 2000.

TRANSFERS -- For employees who transfer from one job or employee status to
another, eligibility will depend on their award eligibility before and after the
transfer.

-        If an employee transfers from a position that is not eligible to
         participate in the OCIP to one that is eligible, he/she will be
         considered a participant in the OCIP for the full year. The employee
         will not be eligible for a prorated award from the plan he/she was
         previously participating in.

--------------------------------------------------------------------------------
                                       8
<PAGE>   10
-        If an employee transfers from one OCIP-eligible position to another,
         the total OCIP award will be based on the eligible earnings,
         performance measures and annual incentive target in effect on December
         31, 2000.

-        If an employee transfers from an OCIP-eligible position to one that is
         not eligible, he/she will cease participating in the OCIP as of the
         date of transfer. The participant's OCIP award will be prorated based
         on the time they were eligible for the Plan. Awards will be calculated
         using the eligible earnings, performance measures and incentive target
         in effect on the date of transfer. The employee must be employed by the
         Company on December 31, 2000 to qualify for a partial year OCIP
         payment. For the time period following OCIP eligibility, the terms and
         conditions of the plan he/she transfers to will apply.

TERMINATIONS -- Participants who terminate employment prior to the last day of
the incentive period (December 31, 2000) will not be eligible for any OCIP
payment for that year unless it is contractually stated in a separation
agreement, except for the following circumstances:

-        Participants who die or who retire under a Company-sponsored retirement
         program during the Plan year will be eligible for a prorated award. The
         award will be calculated from the date when they became eligible for
         the 2000 OCIP to the date of death or retirement. In the case of the
         death of a participant, any OCIP award payable to the participant shall
         be paid to his/her beneficiary in a single payment at the same time as
         all other incentive awards are distributed. For this purpose, the Plan
         will use the beneficiary named under the Company-sponsored life
         insurance plan. If no life insurance beneficiary is designated, the
         beneficiary will be the decedent's estate.

-        Participants who leave the Company under a Company-sponsored disability
         program, separation program or other program approved by the Management
         Committee, will be eligible for a prorated OCIP award. The award will
         be calculated from the date when they became eligible for the 2000 OCIP
         to the effective date of separation.

Awards for terminees who are eligible for a prorated payment under the above
circumstances will be calculated using the eligible earnings, performance
measures and incentive target in effect on the date of termination.

LEAVE OF ABSENCE -- Participants who are not actively employed for the entire
incentive period because they were on an approved leave of absence, but who are
still employed on December 31, 2000, will be eligible to receive a prorated
incentive payment for the period he/she was actively working, as well as short
term absences and the first 90 days of disability leave.

TAX CONSIDERATIONS, WITHHOLDING AND SAVINGS PLAN CONTRIBUTIONS
Incentive payments under the Plan will be treated as taxable income for the year
in which the participant receives the award. The Company will withhold
appropriate amounts from all payments to satisfy all federal, state and local
tax withholding requirements. Additionally, for employees who participate in the
Company's savings plan, contributions to the savings plan will be deducted out
of the participant's OCIP payment in an amount equal to the employee's current
standard contribution percentage. This same principle also applies to eligible
participants who have made prior elections to defer all or a portion of their
annual incentive payment into the Company's Savings+Plus deferred compensation
program.

--------------------------------------------------------------------------------
                                       9
<PAGE>   11
NO RIGHTS TO EMPLOYMENT
Nothing in this Plan, and no action taken pursuant to the Plan, shall confer
upon any participant the right to continue in the employ of the Company, or
affect the right of the Company to terminate any participant's employment at any
time and for any or no reason.

PLAN ADMINISTRATION
The general design of the Plan shall be approved and sponsored by the
Compensation Committee of the Board of Directors of the Company. Global Human
Resources shall have accountability to implement all administrative aspects of
the Plan. All payments made under this Plan to Elected Officers of the Company
are subject to review and approval by the Compensation Committee. The Chief
Executive Officer (CEO) of the Company shall have the full power and authority
to interpret the Plan, make factual determinations, and to prescribe, amend and
rescind any rules, forms or procedures as deemed necessary or appropriate for
the proper administration of the Plan. Any determinations, decisions, actions or
interpretations to be made under the Plan by the CEO, including determinations
as to issues on which the Plan Document is silent, shall be made in his sole
discretion, not in any fiduciary capacity and need not be uniformly applied to
similarly situated individuals. All determinations made by the CEO shall be
final, conclusive and binding on the Company, all participants, and any other
persons having or claiming an interest under the Plan.

AMENDMENT AND TERMINATION OF THE PLAN
The Company reserves the right to amend or terminate the Plan at anytime by
action of the CEO, and in the case of Elected Officers, by action of the
Compensation Committee. This right includes, but is not limited to, the
modification of eligibility for participation, incentive measures, performance
targets and/or performance results. This right also includes the modification of
the terms of the Plan as may be necessary or desirable to comply with the laws
or local customs of countries in which the Company operates or has employees.

The Company's obligation to pay compensation as herein provided is subject to
any applicable orders, rules or regulations of any government agency or office
having authority to regulate the payment of wages, salaries, and other forms of
compensation.

--------------------------------------------------------------------------------
                                       10
<PAGE>   12
APPENDIX I
2000 TOTAL PHARMA SALES GROWTH PAYOUT CURVE -- TABLE*

<TABLE>
<CAPTION>
                       -------------------------------
                       SALES GROWTH      PAYOUT FACTOR
                       -------------------------------
<S>                                      <C>
                         < 4.0%                0%
                       -------------------------------
                           4.0%               50%
                       -------------------------------
                           4.5%               55%
                       -------------------------------
                           5.0%               60%
                       -------------------------------
                           5.5%               64%
                       -------------------------------
                           6.0%               68%
                       -------------------------------
                           6.5%               72%
                       -------------------------------
                           7.0%               76%
                       -------------------------------
                           7.5%               80%
                       -------------------------------
                           8.0%               84%
                       -------------------------------
                           8.5%               88%
                       -------------------------------
                           9.0%               92%
                       -------------------------------
                           9.5%               96%
                       -------------------------------
                           10.0%              100%
                       -------------------------------
                           10.5%              107%
                       -------------------------------
                           11.0%              114%
                       -------------------------------
                           11.5%              120%
                       -------------------------------
                           12.0%              126%
                       -------------------------------
                           12.5%              132%
                       -------------------------------
                           13.0%              138%
                       -------------------------------
                           13.5%              144%
                       -------------------------------
                           14.0%              150%
                       -------------------------------
                           14.5%              157%
                       -------------------------------
                           15.0%              164%
                       -------------------------------
                           15.5%              170%
                       -------------------------------
                           16.0%              176%
                       -------------------------------
                           16.5%              182%
                       -------------------------------
                           17.0%              188%
                       -------------------------------
                           17.5%              194%
                       -------------------------------
                           18.0%              200%
                       -------------------------------
                          >18.0%              200%
                       -------------------------------
</TABLE>

* Payouts are prorated for incremental performance between the indicated
  performance/payout levels.

--------------------------------------------------------------------------------
                                       11
<PAGE>   13
APPENDIX II
2000 TOTAL COMPANY EPS PAYOUT CURVE -- TABLE*

<TABLE>
<CAPTION>
                       ------------------------
                         EPS      PAYOUT FACTOR
                       ------------------------
<S>                               <C>
                       <$1.35           0%
                       ------------------------
                        $1.35          50%
                       ------------------------
                        $1.36          54%
                       ------------------------
                        $1.37          58%
                       ------------------------
                        $1.38          62%
                       ------------------------
                        $1.39          66%
                       ------------------------
                        $1.40          70%
                       ------------------------
                        $1.41          73%
                       ------------------------
                        $1.42          76%
                       ------------------------
                        $1.43          79%
                       ------------------------
                        $1.44          82%
                       ------------------------
                        $1.45          85%
                       ------------------------
                        $1.46          88%
                       ------------------------
                        $1.47          91%
                       ------------------------
                        $1.48          94%
                       ------------------------
                        $1.49          97%
                       ------------------------
                        $1.50         100%
                       ------------------------
                        $1.51         105%
                       ------------------------
                        $1.52         110%
                       ------------------------
                        $1.53         115%
                       ------------------------
                        $1.54         120%
                       ------------------------
                        $1.55         125%
                       ------------------------
                        $1.56         130%
                       ------------------------
                        $1.57         135%
                       ------------------------
                        $1.58         140%
                       ------------------------
                        $1.59         145%
                       ------------------------
                        $1.60         150%
                       ------------------------
                        $1.61         155%
                       ------------------------
                        $1.62         160%
                       ------------------------
                        $1.63         165%
                       ------------------------
                        $1.64         170%
                       ------------------------
                        $1.65         175%
                       ------------------------
                        $1.66         180%
                       ------------------------
                        $1.67         185%
                       ------------------------
                        $1.68         190%
                       ------------------------
                        $1.69         195%
                       ------------------------
                        $1.70         200%
                       ------------------------
                       >$1.70         200%
                       ------------------------
</TABLE>

* Payouts are prorated for incremental performance between the indicated
  performance/payout levels.

--------------------------------------------------------------------------------
                                       12

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