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Exhibit 4.1    
  

 
  CENTERPULSE LTD.
  AMENDED AND RESTATED 1997 MANAGEMENT STOCK OPTION PLAN    
    

 
  INTRODUCTION    
  

 
  General Information    
  

        Under the corporate name of Centerpulse Ltd. there exists a Corporation pursuant to Art. 620 et seq. of the Swiss Code of Obligations with unlimited duration and
domicile in Zurich, Switzerland. 

 
 

THE AMENDED AND RESTATED CENTERPULSE 1997 MANAGEMENT STOCK OPTION PLAN    
  

 
  Purpose    
  

        The purpose of the Amended and Restated Centerpulse1997 Management Stock Option Plan ("Plan") is to provide selected executives and key employees of the Company
with an opportunity to obtain stock options of shares, and thus to retain and motivate executive and other key employees of the Company on a world wide basis. The terms applicable to employees in each
country may vary where necessary or appropriate because of local laws. Any variation shall be made by a country specific appendix, approved by the proper officer of the Company and attached to this
Plan. 

        The
Option grant, the number of shares subject to the Option, the date of the grant are voluntary and within the sole discretion of the Committee. 

 
 

ARTICLE 1
  Effective Period    
  

        The Plan is effective as of July 14, 1997, as approved by the shareholder of the Company. No Option will be granted under the Plan after July 13,
2007. 

 
 

ARTICLE 2
  Definitions    
  

        The following terms shall have the meaning described below when used in the Plan: 

	"ADS"	 	An American Depository Share ("ADS") of the Company, which represents 1/10th of a share of Common Stock.
	

"Board"	
 	

shall mean the board of directors of Centerpulse Ltd.
	

"Committee"	
 	

shall mean the committee appointed by the Board to administer the Plan pursuant to Article 3.
	

"Common Stock"	
 	

shall mean registered shares of Centerpulse Ltd. at par value of CHF 30.
	

"Company"	
 	

shall mean Centerpulse Ltd. and its subsidiaries or any successor in ownership of all or substantially all of its assets.
	

"Exercise Period"	
 	

shall mean the period during which an Option can be exercised.
	

"Exercise Price"	
 	

shall mean the price at which Shares may be purchased by exercising Options.
	
 	
 	

 

1

 

	

"Fair Market Value of Common Stock"	
 	

shall mean the average closing price of the Common Stock on the Swiss Stock Exchange over the 10 trading days preceding the grant of an option except, that the Fair Market Value on the day of the first grant under the Plan in 1997 shall be determined
by the Company's underwriters.
	

"Fair Market Value of an ADS"	
 	

shall mean the average closing price of the ADS on the principal securities exchange on which the ADS is listed over the 10 trading days preceding the grant of an option, except that the Fair Market Value on the day of the first grant under the Plan
in 1997 shall be determined by the Company's underwriters. If the ADS is not listed, the Fair Market Value shall be determined in the best judgment of the official of the Company charged with administering the Plan at the time.
	

"Methods of Exercise"	
 	

shall mean any of the methods for exercising Options prescribed under Article 12.
	

"Option(s)"	
 	

shall mean an option(s) to purchase Common Stock or ADS's pursuant to this Plan.
	

"Option Agreement(s)"	
 	

shall refer to the agreements to be entered into between the Company and an Optionee (see Appendices 1 and 2 ).
	

"Optionee"/"Participant"	
 	

shall mean an eligible employee to whom Options are granted.
	

"Plan"	
 	

shall mean this Plan.
	

"Shares"	
 	

shall mean both registered shares of the Common Stock of the Company and ADSs.
	

"Stock Option Administrator"	
 	

shall mean the persons appointed by the Committee who are responsible for administration under the Plan.
	

"Subsidiary"	
 	

shall mean any foreign or domestic corporation owned, in whole by the Company or in which the Company has a controlling interest of more than 51% voting rights and capital.
	

"Vesting Period"	
 	

shall mean the period during which an Option cannot be exercised.

 
 

ARTICLE 3
  Administration    
  

        Except
as otherwise provided in the Plan, the Committee administers the Plan and has full power to construe and interpret the Plan, establish and amend rules and regulations for
its administration, and perform all other acts relating to the Plan, including the delegation of administrative responsibilities that it believes reasonable and proper. 

        The
Board shall appoint not less than three people to the Committee. 

        The
members of the Committee serve at the request of the Board, which has the power, at any time and from time to time, to remove members from the Committee and add members thereto.
Vacancies on the Committee, however caused, are filled by the Board. 

        The
Committee shall appoint a Stock Option Administrator. 

        The
Stock Option Administrator may adapt the application of the Plan provisions where necessary to ensure compliance with legal and tax requirements of the individual countries in which
the Plan is in force. 

2

 

        All
decisions of the Committee shall be made by a majority of its members and shall be final, conclusive and binding hereunder. 

 
 

ARTICLE 4
  Shares subject to the Plan    
  

        The maximum number of shares par value CHF 30 per share, of the Company which may be issued under the Plan world wide shall be 200,000 which in the USA and Canada
is equivalent to 2,000,000 ADS. 

 
 

ARTICLE 5
  Eligibility    
  

        Executive and other key employees of the Company are eligible to participate. 

        The
individuals who shall be eligible to receive Options shall be those executives or key employees as the Committee shall determine from time to time. 

 
 

ARTICLE 6
  Stock Options    
  

        The Committee shall, after consultation with and consideration of the recommendations of the chief executive officer or his designee, select from eligible
employees those to be granted Options, the number of Shares subject to each Option and the grant date of each Option. 

        The
Committee may also delegate to the chief executive officer the power to select and grant Options to eligible employees, subject to the limitations of the Plan. 

 
 

ARTICLE 7
  Option Agreements    
  

        The granting of Options shall be evidenced by an Option Agreement to be entered into by an Optionee and the Company (see Appendices 1 and 2). 

 
 

ARTICLE 8
  Option Price    
  

        The Options are granted to the employees at no cost. 

 
 

ARTICLE 9
  Vesting Period    
  

        Each Option shall vest as to 25% of the Shares subject to the Option one year after the date of grant, except as to the first grant made in 1997 hereunder which
shall vest six months after the date of grant. Each Option shall vest as to an additional 25% of the Shares subject to the Option on each succeeding 12 month anniversary of the vesting of the first
25%. After the third anniversary of the vesting of the first 25% each Option shall be exercisable in full. 

        Once
vested the Option may be exercised at any time within the Option Term. 

 
 

ARTICLE 10
  Exercise Price    
  

        The price at which Shares may be purchased upon exercise of a particular Option shall not be less than 100% of the Fair Market Value of each Share on the date of
grant or the par value per Share (or 1/10th thereof in the case of an ADS), if greater. 

3

 

 
 

ARTICLE 11
  Option Term    
  

        The Option term from the date the Option is granted as evidenced in the Stock Option Agreement shall be five years. 

        Options
which are not exercised expire without any compensation. 

 
 

ARTICLE 12
  Exercise of Options    
  

        An Option shall be exercised by (a) the payment of cash or its equivalent, (b) transfer of Shares, valued at fair market value on the date of
exercise or (c) through any other form acceptable to the Company. 

        No
Shares shall be delivered pursuant to any exercise of Options until payment in full at the Exercise Price thereof is received by the Company. 

        When
exercising the Option the Optionee must comply with the Policy on Insider Trading. 

        No
employee shall have voting or other rights with respect to Shares prior to his purchase of them hereunder. 

 
 

ARTICLE 13
  Adjustment in the Event of Recapitalization of the Company or Extraordinary Dividends    
  

        In the event that the Company shall decide upon any stock dividend, extraordinary cash dividend, recapitalization, reorganisation, merger, consolidation,
split-up, spin-off, combination, exchange of shares, warrants or rights offering to purchase Common Stock at a price substantially below fair market value, or other similar corporate event affects the
Common Stock such that an adjustment is required in order to preserve the benefits or potential benefits intended to be made available under this Plan, then the Board shall, in its sole discretion,
and in such manner as it may deem equitable, adjust any or all of the number and kind of Shares which thereafter may be optioned and sold under the Plan, the number and kind of Shares subject to
outstanding Options and the Exercise Price with respect to any of the foregoing and/or, if deemed appropriate, make provision for a cash payment to a Participant or a person who has an outstanding
Option provided, however, that the number of Shares subject to any Option shall always be a whole number. 

 
 

ARTICLE 14
  Restrictions on Options    
  

        Options granted under the Plan may not be transferred except by will or under the laws of descent and distribution. Options shall only be exercised during the
Optionee's lifetime by the Optionee. No Option may be exercised which will violate a law. An Optionee shall not dispose of Shares in violation of any securities law. 

 
 

ARTICLE 15
  Death, Retirement, Disability and Termination of Employment    
  

	•
	Upon
termination of employment as a result of retirement on or after attainment of retirement age pursuant to the law or to a retirement plan or to a
retirement agreement of the Company, all granted and unvested Options will immediately vest on the retirement date. The Optionee may notwithstanding any other provisions exercise Options until 36
months after Optionee's retirement date. The Option shall expire 36 months after the Optionee's retirement date if it occurs prior to the expiration date of the term. 

4

 

	•
	Upon
termination of employment, as a result of disability, all granted and unvested Options will immediately vest on the termination date. The Optionee may
notwithstanding any other provisions exercise Options until 36 months after Optionee's termination of employment. Disability means inability to engage in any substantial gainful activity by reason of
a medically determinable physical or mental impairment which constitutes a permanent and total disability. The Option shall expire 36 months after the termination of employment if it occurs prior to
the expiration date of the term.

	•
	Upon
the death of the Optionee, all granted and unvested Options will immediately vest. The Option shall expire 12 months after the Optionee's death if it
occurs prior to the expiration of the term.

	•
	If
an Optionee is being transferred to a distributor or another partner company by initiative of the Company, the conditions as defined in the Agreement
shall remain in force and not be subject to any change.

	•
	If
a subsidiary of the Company is being divested, any non-vested Options of its affected Optionees shall vest immediately and have an exercise period of 9
months.

	•
	Upon
termination of employment by the Company in the course of a restructuring or downsizing, any non-vested Options of its affected Optionees shall vest
immediately and have an exercise period of 9 months.

	•
	Except
as otherwise provided herein, the Option shall expire 30 days after the Optionee's severance of employment if it occurs prior to the expiration of the
term. 

 
 

ARTICLE 16
  Forfeiture of Options    
  

        If the employment is terminated for cause, the Optionee's Options shall be forfeited. 

 
 

ARTICLE 17
  Transfer / Leave of Absence    
  

        A transfer of an employee within the Company, and a leave of absence, duly authorized in writing by the Company, for military service or sickness, or for any
other purpose approved by the Company, provided the employee's right to reemployment is guaranteed either by a statute or by contract, shall not be deemed a termination of employment. If employment is
terminated prior to the employee's return to work, then the provisions of Article 15 are applicable. 

        In
case of negative tax consequences on a transfer of an Optionee from within the Company to another tax jurisdiction, the Committee may in its discretion accelerate the time when any
particular Option held by said Optionee may be exercised. 

 
 

ARTICLE 18
  No Right of Continued Employment    
  

        Neither the establishment of the Plan, nor the granting of Options, nor the payment of any benefits nor any action of the Company or of the Board or of the
Committee shall be held or construed to confer upon any person any legal right to be continued in the employ of the Company, each of which expressly reserves the right to discharge any employee
whenever the interest of any such Company in its sole discretion may so require without liability to such Company, the Board or the Committee except as to any rights which may be expressly conferred
upon such employee under the Plan. 

5

 

 
 

ARTICLE 19
  Expiration of Option    
  

        If an Option granted under the Plan expires or terminates for any reason, the Shares allocated to such Option shall be available for allocation to other Options. 

 
 

ARTICLE 20
  Amendment and Termination    
  

        The Board may amend, suspend or discontinue the Plan, provided, however, that the Board may not, without the prior approval of the stockholders of the Company,
make any amendment for which stockholder approval is necessary. 

        Amendment,
suspension or discontinuance of the Plan shall be communicated by the Board to all Optionees. No amendment, suspension or discontinuance shall effect an outstanding Option. 

 
 

ARTICLE 21
  Change in Control and Liquidation of the Company    
  

        In the case of the liquidation of the Company or change in control of the Company, the terms of outstanding Options are adjusted by the Committee, if it deems
this reasonable and proper. The outstanding Options may be exercised during the whole term of the Option. 

 
 

ARTICLE 22
  Indemnification    
  

        The Plan provides that, in addition to other rights of indemnification the members of the Board, or of the Committee, or of the Stock Option Administrator or
other appointed person may have, they shall be indemnified by the Company against all costs and expenses reasonably incurred by them in connection with any action, suit or proceeding to which they or
any of them may be party by reason of any action taken or failure to act under or in connection with the Plan or any Options granted thereunder, and against all amounts paid by them in settlement
thereof (provided such settlement is approved by independent legal counsel selected by the Company) or paid by them in satisfaction of a judgement in any such action, suit or proceeding, except a
judgement based upon a finding of bad
faith, provided that upon the institution of any such action, suit or proceeding, a Committee or Board member shall, in writing, give the Company notice thereof and an opportunity, at its own expense,
to handle and defend the same before such Committee or Board member undertakes to handle and defend it on such member's own behalf. 

 
 

ARTICLE 23
  Applicable Law and Choice of Jurisdiction    
  

        This Plan shall be governed by the laws of Switzerland. 

 
 

ARTICLE 24
  Approval    
  

        The Plan, as amended, has been approved by the Board of Directors at its meeting of October 22, 2002, and shall become effective on October 22,
2002. 

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QuickLinks

Exhibit 4.1

CENTERPULSE LTD. AMENDED AND RESTATED 1997 MANAGEMENT STOCK OPTION PLAN

INTRODUCTION

General Information

THE AMENDED AND RESTATED CENTERPULSE 1997 MANAGEMENT STOCK OPTION PLAN

Purpose

ARTICLE 1 Effective Period

ARTICLE 2 Definitions

ARTICLE 3 Administration

ARTICLE 4 Shares subject to the Plan

ARTICLE 5 Eligibility

ARTICLE 6 Stock Options

ARTICLE 7 Option Agreements

ARTICLE 8 Option Price

ARTICLE 9 Vesting Period

ARTICLE 10 Exercise Price

ARTICLE 11 Option Term

ARTICLE 12 Exercise of Options

ARTICLE 13 Adjustment in the Event of Recapitalization of the Company or Extraordinary Dividends

ARTICLE 14 Restrictions on Options

ARTICLE 15 Death, Retirement, Disability and Termination of Employment

ARTICLE 16 Forfeiture of Options

ARTICLE 17 Transfer / Leave of Absence

ARTICLE 18 No Right of Continued Employment

ARTICLE 19 Expiration of Option

ARTICLE 20 Amendment and Termination

ARTICLE 21 Change in Control and Liquidation of the Company

ARTICLE 22 Indemnification

ARTICLE 23 Applicable Law and Choice of Jurisdiction

ARTICLE 24 ApprovalQuickLinks
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Exhibit 4.2    
  

 
 

CENTERPULSE LTD.    
    
    AMENDED AND RESTATED CENTERPULSE 2001 STOCK OPTION PLAN    
    

 
 

ARTICLE 1
  Purpose    
  

The
purpose of the Amended and Restated Centerpulse 2001 Stock Option Plan ("the Plan") is 

	a)
	to
align the interests of the executives and key employees with those of the shareholders of the Company;

	b)
	to
provide selected executives, members of the Board and key employees with an opportunity to participate in ownership of the Company;

	c)
	to
reward contributions to the long-term performance of the Company as reflected in the share price;

	d)
	enable
the Company and its Subsidiaries to attract, retain and motivate highly qualified employees. 

The
terms of the Plan applicable in each country may vary where necessary or appropriate because of local laws or practice. Any such variation shall be documented in a country-specific Appendix,
approved by the proper officer of the Company and attached to the Plan. 

The
decision to award grants and the setting of the terms of each grant are voluntary on the part of the Company and within the sole discretion of the Committee. 

 
 

ARTICLE 2
  Effective Period of the Plan    
  

The
Plan is effective as of January 1, 2001, as approved by the Board. No grant will be made under the Plan after December 31, 2010. The Plan shall remain in effect until all Options
granted under the Plan have been satisfied or expired. 

 
 

ARTICLE 3
  Definitions    
  

The
following terms shall have the meaning described below when used in the Plan: 

	"ADS"	 	shall mean an American Depository Share (ADS) of the Company, which represents 1/10th of a Share. The ADS are traded on the New York Stock Exchange.
	

"Agreement(s)"	
 	

shall refer to the Stock Option Agreement(s) to be entered into between the Company and a Participant specifying the terms of Awards made under the Plan.
	

"Award"	
 	

shall mean the grant of an Option under the Plan.
	

"Board"	
 	

shall mean the Board of Directors of the Company.
	

"Cause"	
 	

shall mean a Participant's willful misconduct or dishonesty, which is directly and materially harmful to the business or reputation of the Company or any Subsidiary.
	

"Change in Control"	
 	

shall mean a fundamental change in the ownership structure of the Company. This is defined in Article 14.
	

"Committee"	
 	

shall mean the committee appointed by the Board to administer the Plan pursuant to Article 4.
	

"Company"	
 	

shall mean Centerpulse Ltd.
	
 	
 	

 

 

	

"Disability"	
 	

shall mean the inability of an individual to engage in any substantial gainful activity by reason of a physical or mental impairment, which constitutes a permanent and total disability.
	

 	
 	

Procedures for determining disability are defined under the provisions of the Company's long-term disability insurance policies.
	

"Exercise Period"	
 	

shall mean the period during which a Participant may exercise Options.
	

"Exercise Price"	
 	

shall mean the price at which Shares or ADSs may be purchased by exercising Options.
	

"Methods of Exercise"	
 	

shall mean any of the methods for exercising Options prescribed under Article 9.4.
	

"Option"	
 	

shall mean a right to purchase Shares or ADSs under the terms of the Plan.
	

"Optionee" / "Participant"	
 	

shall mean an eligible person to whom an Award is made and who has accepted the Award by signing the Agreement.
	

"Plan"	
 	

shall mean this Plan document and Appendices, as amended from time to time.
	

"Shares"	
 	

shall mean registered shares of the Company. The Shares are traded on the Swiss Stock Exchange in Zurich, Switzerland.
	

"Plan

Administrator"	
 	

shall mean the person(s) appointed by the Committee who are responsible for administration of the Plan.
	

"Subsidiary"	
 	

shall mean any foreign or domestic corporation owned, in whole by the Company or in which the Company has a controlling interest of more than 50% voting rights and capital.
	

"Option Term"	
 	

shall mean the duration of an Option.
	

"Vesting Period"	
 	

shall mean the period during which an Option cannot be exercised.

 
 

ARTICLE 4
  Administration    
  

Except
as otherwise provided in the Plan, the Committee administers the Plan and has full power to construe and interpret the Plan, establish and amend rules and regulations for its administration,
and perform all other acts relating to the Plan, including the delegation of administrative responsibilities that it believes reasonable and proper. 

The
Committee has authority to amend the terms of any Option issued without the necessity of obtaining approval of the shareholders. 

In
particular, the Committee shall have the authority to 

	a)
	select
the eligible persons to whom Awards shall be granted.

	b)
	determine
whether and to what extent Awards are to be granted.

	c)
	determine
the number of Shares or ADS to be subject to each Award. 

2

 
	d)
	determine
the terms and conditions, not inconsistent with the terms of the Plan, of any Award and to amend such terms and conditions. 

The
Board shall appoint not less than three people to the Committee. 

The
members of the Committee serve at the request of the Board, which has the power, at any time and from time to time, to remove members from the Committee and add members thereto. 

The
Committee shall appoint a Plan Administrator to carry out the daily administration of the Plan. The Plan Administrator may adapt the application of the Plan provisions where necessary to ensure
compliance with legal and tax requirements of the individual countries in which the plan is in force. 

All
decisions of the Committee shall be made by a majority of its members and shall be final, conclusive and binding. 

 
 

ARTICLE 5
  Indemnification    
  

In
addition to other rights of indemnification the members of the Board, or of the Committee, or of the Plan Administrator or other appointed person may have, they shall be indemnified by the Company
against all costs and expenses reasonably incurred by them in connection with any action, suit or proceeding to which they or any of them may be party by reason of any action taken or failure to act
under or in connection with the Plan or any Awards granted thereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel
selected by the Company) or paid by them in satisfaction of a judgment in any such action, suit or
proceeding, except a judgment based upon a finding of bad faith, provided that upon the institution of any such action, suit or proceeding, a Committee or Board member or Plan Administrator or other
appointed person shall, in writing, give the Company notice thereof and an opportunity, at its own expense, to handle and defend the same before such Committee or Board member or Plan Administrator or
other appointed person undertakes to handle and defend it on such person's own behalf. 

 
 

ARTICLE 6
  Shares Available for the Plan    
  

The
maximum number of Shares which may be used under the Plan worldwide shall not exceed 145'000 (equivalent to 1'450'000 ADS), subject to adjustment under Article 12, Adjustment in the Event
of a Change in the Financial Structure of the Company. 

The
Shares related to any unexercised or undistributed portion of any terminated, expired, exchanged or forfeited Option or any Option settled in cash in lieu of Shares or ADS shall be available for
further Awards. 

 
 

ARTICLE 7
  Eligibility    
  

Individuals
eligible to participate in the Plan are: 

	•
	Members
of the Board.

	•
	Executives
of the Company and its Subsidiaries.

	•
	Selected
key employees of the Company and its Subsidiaries. 

3

 

The
individuals who shall receive Awards shall be determined by the Committee in consultation with the Chief Executive Officer of the Company. 

The
Committee may also delegate to the Company's Chief Executive Officer the power to select eligible persons and grant Awards, including Awards to new employees upon hire, subject to the limitations
of the Plan. 

The
grant of an Award does not give any rights to receive such Awards in the future. 

 
 

ARTICLE 8
  General Terms of Awards    
  

	8.1
	 Awards

For
U.S. purposes, Awards under the Plan consist of non-qualified Options. 

	8.2
	 Agreement

Each
Award shall be evidenced by an Agreement entered into by a Participant and the Company setting forth the terms and conditions as determined by the Committee which shall apply to such Award, in
addition to the terms and conditions specified in the Plan. 

By
signing the Agreement, the Participant grants the Company the power of attorney to register the Shares, which the Participant might acquire by exercising the Options, in the share register pursuant
to Article 10. 

	8.3
	 Option Term

The
Option Term shall not be more than ten years from the date the Option is granted. 

	8.4
	 Vesting Period

The
Options granted shall be subject to a Vesting Period as defined in the Agreement. During the Vesting Period Options may not be exercised and are subject to forfeiture rules pursuant to
Article 11. 

After
the end of the Vesting Period the Participant has the right to exercise the Options during the Exercise Period. The Exercise Period can be shortened based on the provisions of Article 11. 

	8.5
	 Expiration

At
the end of the Option Term all unexercised Options expire without any compensation. 

No
Option may be exercised by any person after the expiration of the Option Term. 

	8.6
	 Limitation on Grants

No
Participant may receive Options who owns or has options to own 5% or more of the combined voting power or value of the Shares. 

	8.7
	 Transferability

The
Options granted under the Plan are not transferable. During the whole Option Term the Participant may neither sell, donate or otherwise transfer the Options. 

During
the lifetime of the Participant, Options may be exercised only by the Participant. 

4

 
	8.8
	 Cost to Participant

The
Awards to the Participants under the Plan are granted free of charge. 

	8.9
	 Tax and Social Security Contributions

Each
Participant, who receives Options and acquires Shares under the Plan is responsible for the proper tax declarations and filings according to applicable law. 

The
Company shall have the right to withhold from a Participant's salary upon any Award payment or exercise under the Plan an amount sufficient to cover withholding taxes or other charges related to
the transaction as required by local legislation. 

The
Company shall have the right to require the Participant to pay the Company a cash amount necessary to cover any required withholding taxes or other charges. 

With
approval of the Committee, payment may be made in the form of unrestricted Shares or ADS already owned by the Participant. 

With
approval of the Committee, payment may also be made through a reduction of the number of Shares or ADS delivered to the Participant upon exercise of the Options. 

The
value of the Shares or ADS offered in payment is the fair market value quoted on the respective stock exchange at the time the Option is exercised. 

	8.10
	 Legal Restrictions and Insider Trading

A
Participant shall not dispose of Shares or ADS in violation of any applicable securities law. 

The
sale of Shares or ADS obtained under the Plan is subject to the terms of the Company Insider Trading Policy. Subject to the foregoing, vested Options may be exercised at any time. 

	8.11
	 No Rights as Shareholder

No
Optionee will have voting or other rights with respect to Shares or ADS subject to Option prior to purchase of such Shares or ADS. 

	8.12
	 No Right of Continued Employment

Neither
the establishment of the Plan, nor the granting of Options, nor the payment of any benefits nor any action of the Company or any Subsidiary, the Board or the Committee relating to the Plan or
to benefits shall be held or construed to confer upon any Participant any legal right to continue in the employment of the Company or any Subsidiary, or affect any right which the Company or any
Subsidiary may have to terminate the employment of the Participant with or without cause, except as to any rights which may be expressly conferred upon such employee under the Plan and under his
employment contract. 

	8.13
	 Other Benefit and Compensation Programs

Payments
and other benefits received by a Participant under the Plan shall not be deemed a part of a Participant's regular, recurring compensation for purposes of termination, indemnity or severance
pay and shall not be included in or have any effect on the determination of benefits under any other employee benefit plan unless expressly so provided by such other plan or required by local
legislation. 

5

 
 
 

ARTICLE 9
  Grant and Exercise of Options    
  

	9.1
	 Exercise Price

The
Exercise Price per Share or ADS to be purchased under an Option shall be determined by the Committee at the time of the Award and documented in the Agreement. 

	9.2
	 Period of Exercise of Options

Options
shall be exercisable at such time or times and subject to such conditions as shall be determined by the Committee. 

The
Option Term and the Vesting Period for the Option will be documented in the Agreement. 

The
Committee may waive or amend such vesting requirements or modify the Option Term at any time at or after grant in whole or in part, based on such factors as the Committee shall determine at its
sole discretion. 

	9.3
	 Limitation on Amounts Subject to Exercise

Vested
Options may be exercised in whole or in part during the Option Term. 

The
number of ADS, which may be purchased under an Option, must be a multiple of ten (or the remaining Shares covered by an Option if less than ten). 

	9.4
	 Method of Exercise

The
Committee shall have authority to establish procedures under all methods, including the designation of a brokerage firm or firms through which exercises may be effected. 

Options
may be exercised according to the conditions specified in the Agreement by giving written notice of exercise to the Company to the address and in the form determined by the Committee. 

	9.5
	 Method of Payment

No
Shares or ADS shall be issued until full payment has been made. 

Notice
of exercise shall be accompanied by payment in full of the Exercise Price. Acceptable forms of payment (check, bank transfer, etc.) will be determined by the Company. 

With
approval of the Committee, payment may also be made in the form of unrestricted Shares or ADS already owned by the Participant. 

With
approval of the Committee, payment may also be made through a reduction of the number of Shares or ADS delivered to the Participant upon exercise of the Options. 

The
value of the Shares or ADS offered in payment is the fair market value of the Share quoted on the respective stock exchange at the time the exercise transaction is completed. 

 
 

ARTICLE 10
  Entry into the Share Register    
  

The
acquisition of Shares by way of exercising the Options will be entered into the share register, pursuant to the articles of incorporation of the Company. The Shares shall only be entered into the
share register after receipt of the full payment as per Article 9.5. 

6

 
 
 

ARTICLE 11
  Termination of Employment    
  

	11.1
	 Applicability

Except
as otherwise set forth in the Plan or as otherwise determined by the Committee or provided by the Committee in an applicable Agreement, in case of termination of employment with the Company the
provisions indicated below shall apply. The Committee, at its discretion, may amend the conditions of an Award upon termination of employment. 

	11.2
	 Retirement

Upon
termination of employment with the Company, as a result of retirement on or after attainment of retirement age pursuant to the applicable law or to a retirement plan or to a retirement agreement
of the Company, the conditions as defined in the Agreement shall remain in force and not be subject to any change. 

	11.3
	 Disability

Upon
termination of employment with the Company as a result of Disability, the conditions as defined in the Agreement shall remain in force and not be subject to any change. 

	11.4
	 Death

If
a Participant's employment with the Company terminates by reason of death, any exercisable Option held by such Participant may be exercised by the legal representative of the estate or the
inheritors of the Participant within 12 months of the date of death or until the expiration of the Option Term, whichever period is shorter. For non-vested Options the Committee may
allow an accelerated vesting. The inheritors shall produce written legal proof of their entitlement to the inheritance. 

	11.5
	 Transfer of Employees

If
a Participant is being transferred to a distributor or another partner company by initiative of the Company, the conditions as defined in the Agreement shall remain in force and not be subject to
any change.

	11.6
	 Divestments

If
a subsidiary of the Company is being divested, any non-vested Options of its affected Participants shall vest immediately and have an exercise period of
12 months.

	11.7
	 Restructuring

Upon
termination of employment by the Company in the course of a restructuring or downsizing, any non-vested Options of its affected Participants shall vest immediately and have an
exercise period of 12 months.

	11.8
	 Reasons Other than Retirement, Disability, or Death

If
a Participant's employment with the Company terminates for any reason other than retirement, Disability or death, non-vested Options shall lapse without any right of compensation on the
date of termination. 

Options
which are exercisable on the date of termination may be exercised according to the conditions below: 

7

 
	a)
	 Termination Without Cause

If
the Participant voluntarily terminates or is involuntarily terminated by the Company without Cause, the Participant may exercise Options which are exercisable on the date of termination within
90 days from the date of termination or, if earlier, until the expiration of the Option Term. 

	b)
	 Termination of Cause

If
the employment is terminated for Cause, the Participant may exercise Options which are exercisable on the date of termination within 7 days from the date of termination or, if earlier, until
the expiration of the Option Term. 

	11.9
	 Transfer / Leave of Absence

A
transfer of a Participant within the Company or a leave of absence, duly authorized in writing by the Company, for military service or sickness, or for any other purpose approved by the Company,
shall not be deemed a termination of employment. If employment is terminated prior to the Participant's return, then the above provisions of Article 11 are applicable. 

 
 

ARTICLE 12
  Adjustment in the Event of a Change in the Financial Structure of the Company    
  

In
the event that the Company shall decide upon any stock dividend, extraordinary cash dividend, recapitalization, reorganization, merger, consolidation, split-up, spin-off,
combination, exchange of shares, warrants or rights offering to purchase Shares at a price substantially below fair market value, or other similar corporate event affects the Share such that an
adjustment is required in order to preserve the benefits or potential benefits intended to be made available under the Plan, then the Committee shall, in its sole discretion, and in such manner as it
may deem equitable, adjust any or all of the number and kind of Shares subject to the Plan, the number and kind of Shares subject to outstanding Options and the Exercise Price with respect to any of
the foregoing and/or, if deemed appropriate, make provision for a cash payment to a Participant or a person who has an outstanding Option. 

 
 

ARTICLE 13
  Amendment and Termination of the Plan    
  

The
Board may amend, suspend or discontinue the Plan at any time at its discretion. 

Amendment,
suspension or discontinuance of the Plan shall be communicated by the Board to all Participants. 

No
such action shall materially adversely effect any right acquired by a Participant under an Award granted before the date of amendment, suspension, or discontinuation, unless otherwise agreed by the
Participant or required as a matter of law. 

Any
adjustment for changes in capital structure under Article 12 is not considered to adversely affect any rights of a Participant under an Award. 

8

 

 
 

ARTICLE 14
  Change in Control or Liquidation of the Company    
  

In
the case of a Change in Control, the conditions of outstanding Options may be adjusted by the Committee, as it deems appropriate in its sole discretion without the consent or approval of any
Optionee. 

Change
of Control generally means but is not limited to: 

	a)
	the
sale or lease or other transfer of all or substantially all of the assets of the Company,

	b)
	the
approval by the shareholders of any plan for the liquidation or dissolution of the Company,

	c)
	approval
by the shareholders of a merger or consolidation of the Company with or into any other corporation or the transfer of more than 50% of the then outstanding Shares of the
Company. 

 
 

ARTICLE 15
  Termination of Prior Plans    
  

Effective
upon approval of this Plan by the Board, no further share-related Awards will be made under existing prior plans. All Awards granted under the prior Plans shall continue in accordance with
the conditions of those plans. 

 
 

ARTICLE 16
  Applicable Law and Choice of Jurisdiction    
  

The
Plan and any related document shall be governed by and construed in accordance with the laws of Switzerland. Any disputes arising under or in connection with the Plan shall be resolved by the
courts of Winterthur, Switzerland. 

 
 

ARTICLE 17
  Approval    
  

The
Participant accepts the Options granted and the terms of the Plan including all appendices by signing the Agreement. 

The
Plan has been approved by the Board at its meeting of November 29, 2000, as amended on August 23, 2001 and on October 22, 2002, and shall become effective as amended on
October 22, 2002. 

9

QuickLinks

Exhibit 4.2

CENTERPULSE LTD. AMENDED AND RESTATED CENTERPULSE 2001 STOCK OPTION PLAN

ARTICLE 1 Purpose

ARTICLE 2 Effective Period of the Plan

ARTICLE 3 Definitions

ARTICLE 4 Administration

ARTICLE 5 Indemnification

ARTICLE 6 Shares Available for the Plan

ARTICLE 7 Eligibility

ARTICLE 8 General Terms of Awards

ARTICLE 9 Grant and Exercise of Options

ARTICLE 10 Entry into the Share Register

ARTICLE 11 Termination of Employment

ARTICLE 12 Adjustment in the Event of a Change in the Financial Structure of the Company

ARTICLE 13 Amendment and Termination of the Plan

ARTICLE 14 Change in Control or Liquidation of the Company

ARTICLE 15 Termination of Prior Plans

ARTICLE 16 Applicable Law and Choice of Jurisdiction

ARTICLE 17 Approval

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