Document:

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                                                                   Exhibit 10.4

                        TAX SHARING AGREEMENT dated as of [DATE], between
                  Bristol-Myers Squibb Company, a Delaware corporation ("BMS"),
                  and Zimmer Holdings, Inc., a Delaware corporation ("Zimmer",
                  collectively, the "Companies").

            WHEREAS, as of the date hereof, BMS is the common parent of an
affiliated group of domestic corporations, including Zimmer and its direct and
indirect subsidiaries, which has elected to file consolidated federal income tax
returns;

            WHEREAS, pursuant to an Amended and Restated Business Transfer
Agreement dated as of December 29, 2000, Bristol-Myers Squibb K.K., a Japanese
kabushiki kaisha and a wholly-owned subsidiary of BMS ("BMS KK"), transferred to
Zimmer K.K., a Japanese kabushiki kaisha and a wholly-owned subsidiary of BMS KK
("Zimmer KK"), certain assets relating to the Japanese portion of the Zimmer
Business in exchange for 2.9 billion Yen, subject to adjustment, and the
assumption of certain liabilities, all in accordance with the Amended and
Restated Business Transfer Agreement (the "Japan Restructuring");

            WHEREAS, the Board of Directors of BMS KK has determined to
distribute its shares of Zimmer KK to BMS (the "Japan Distribution");

            WHEREAS, the Board of Directors of Bristol-Myers Squibb Holdings
Limited, a United Kingdom private limited company and a wholly-owned subsidiary
of BMS ("BMS Holdings UK"), has determined to distribute the stock of Zimmer
Limited, a United Kingdom private limited company ("Zimmer Limited") and a
wholly-owned subsidiary of BMS UK, to BMS (the "UK Distribution");

            WHEREAS, the Board of Directors of BMS has determined to contribute
all the outstanding shares of common stock of Zimmer KK, Zimmer Limited and
Zimmer, Inc., a Delaware corporation and a direct wholly-owned subsidiary of
BMS, and certain other stock and/or assets in exchange for all the outstanding
shares of common stock of Zimmer and the assumption by Zimmer of certain
liabilities of BMS (the "Contribution");

            WHEREAS, the Board of Directors of BMS has determined to distribute
(the "Distribution") all the outstanding shares of common stock of Zimmer to the
BMS shareholders of record as of a date to be determined and, as a result of the
Distribution, Zimmer and its subsidiaries will not be included in the
consolidated federal income tax return of BMS for the portion of the taxable
year following the Distribution or in future taxable years;

            WHEREAS, the Companies have entered into a contribution and
distribution agreement (the "Contribution and Distribution Agreement") to, among
other things, allocate and assign responsibility for certain liabilities of the
Companies in connection with and after the Contribution and Distribution (the
"US Transactions");

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                                                                               2

            WHEREAS, the Companies intend that the Japan Restructuring and the
Contribution qualify as tax-free transfers under Sections 351 and 368(a)(1)(D)
of the Internal Revenue Code of 1986, as amended (the "Code"), and that the
Japan Distribution, the UK Distribution, and the Distribution qualify as a
tax-free spin-offs under Sections 355 and 368(a)(1)(D) of the Code;

            WHEREAS, BMS submitted a private letter ruling request to the United
States Internal Revenue Service ("IRS") to the effect that, for United States
federal income tax purposes, no gain or loss will be recognized by BMS or Zimmer
from the US Transactions or by the holders of BMS common stock upon receipt of
Zimmer shares in the Distribution (the initial submission dated February 22,
2001 and all supplements thereto collectively referred to herein as the "Ruling
Request"); and

            WHEREAS, the Companies desire to allocate the tax responsibilities,
liabilities and benefits of transactions which occurred on or prior to the date
on which the Distribution occurs (the "Distribution Date"), and transactions
which may occur after the Distribution Date, and to provide for certain other
Tax (as hereafter defined) matters;

            NOW, THEREFORE, in consideration of the mutual covenants and
agreements contained herein, the Companies (each on behalf of itself, each of
its subsidiaries as of the Distribution Date, and its future subsidiaries)
hereby agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

            The following terms shall have the following meanings (such meanings
to apply equally to both the singular and the plural forms of the terms
defined). All section references are to this Agreement unless otherwise stated.

            "936 RETURN" means any IRS Form 5735 (or any successor form) and
any IRS Form 1120 (or any successor form) required to be filed with respect
to Zimmer Caribe.

            "AFFILIATED GROUP" means an affiliated group of corporations within
the meaning of Code Section 1504(a) for the taxable period in question.

            "BMS AFFILIATED GROUP" means the Affiliated Group of which BMS or
any successor of BMS is the common parent.

            "BMS GROUP" means (i) the corporations that are members of the BMS
Affiliated Group and (ii) the corporations that would be members of the BMS
Affiliated Group but for the fact they are not includible corporations under
Code Section 1504(b).

            "CHANGE IN ZIMMER STOCK OWNERSHIP" means any change in the
ownership, in terms of either value or voting power, of any class of stock of
Zimmer or of options or other securities or interests exchangeable for or
convertible into any class of stock of Zimmer, including, without limitation, a
change resulting from issuance of any class of stock of Zimmer in connection
with a public offering, private placement, stock or

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asset acquisition, merger, option grant or capital contribution, or any change
in ownership required to be reported on Schedule 13D or 13G (or successor
schedules thereto) or issuance of employee stock options or issuance of stock
pursuant to the exercise of employee stock options. This definition and its
application are intended to monitor compliance with Section 355(e) of the Code
following the Distribution and shall be interpreted accordingly. Any
clarification of or change in the Treasury Regulations promulgated under Section
355(e) of the Code shall be incorporated in this definition and its
interpretation.

            "CODE" is defined in the recitals to this Agreement.

            "CONTRIBUTION" is defined in the recitals to this Agreement.

            "CONTRIBUTION AND DISTRIBUTION AGREEMENT" is defined in the recitals
to this Agreement.

            "COMBINED STATE INCOME TAXES" means any State Income Taxes with
respect to which BMS currently files, or has filed, Tax Returns on a combined,
consolidated or unitary basis.

            "DISTRIBUTION" is defined in the recitals to this Agreement.

            "DISTRIBUTION DATE" is defined in the recitals to this Agreement.

            "FINAL DETERMINATION" means the final resolution of liability for
any Tax for any taxable period by or as a result of: (i) a final and
unappealable decision, judgment, decree or other order by any court of competent
jurisdiction; (ii) a final settlement with the IRS, a closing agreement or
accepted offer in compromise under Code Sections 7121 or 7122, or a comparable
agreement under the laws of other jurisdictions, which resolves the entire Tax
liability for any taxable period; (iii) any allowance of a refund or credit in
respect of an overpayment of Tax, but only after the expiration of all periods
during which such refund may be recovered by the jurisdiction imposing the Tax;
or (iv) any other final disposition, including by reason of the expiration of
the applicable statute of limitations.

            "FOREIGN TAXES" means any Taxes imposed by a Taxing Authority
(including Puerto Rico or any of its localities) other than the United States or
any of its states or localities.

            "FORM 5471" is defined in Section 2.02(c).

            "GROUP" means either the BMS Group or the Zimmer Group, as the case
may be.

            "INDEMNIFYING PARTY" is defined in Section 6.01(a).

            "INDEMNITEE" is defined in Section 6.01(a).

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            "INDEMNITY ISSUE" is defined in Section 6.01(a).

            "IRS" is defined in the recitals to this Agreement.

            "JAPAN DISTRIBUTION" is defined in the recitals to this Agreement.

            "JAPAN RESTRUCTURING" is defined in the recitals to this Agreement.

            "OPTIONS" means any options or stock appreciation rights relating to
BMS or Zimmer stock that are outstanding immediately after the Distribution.

            "POST-DISTRIBUTION PERIOD" means any taxable period ending after the
Distribution Date (in the case of a Straddle Period including only the portion
of such taxable period beginning on the day after the Distribution Date).
Accordingly, for the avoidance of doubt, the Distribution Date shall never be
included in any Post-Distribution Period.

            "PRE-DISTRIBUTION PERIOD" means any taxable period beginning on or
before the Distribution Date (in the case of a Straddle Period including only
the portion of such taxable period ending on the Distribution Date).
Accordingly, for the avoidance of doubt, the Distribution Date shall, in all
cases, be included in the Pre-Distribution Period.

            "PRELIMINARY TRANSACTIONS" means transactions by members of the BMS
Group to prepare for the Contribution and Distribution, other than the Japan
Restructuring, the Japan Distribution, and the UK Distribution.

            "RULING REQUEST" is defined in the recitals to this Agreement.

            "SECOND ANNIVERSARY PERIOD" means the period beginning on the date
of this Agreement and ending on the second anniversary of the Distribution Date.

            "STATE INCOME TAXES" means any United States state or local Taxes
determined by reference to income, net worth, gross receipts or capital, or any
such Taxes imposed (including franchise or similar Taxes) in lieu of income
Taxes.

            "STRADDLE PERIOD" means any taxable period that begins on or before
and ends after the Distribution Date.

            "TAX CONTROVERSY" is defined in Section 6.01(a).

            "TAXES" means all forms of taxation or duties imposed, or required
to be collected or withheld, including charges, together with any related
interest, penalties or other additional amounts.

            "TAXING AUTHORITY" means any governmental authority imposing Taxes.

            "TAX OPINION" means the opinion of Cravath, Swaine & Moore
concerning the United States federal income tax treatment of the Japan
Restructuring, the Japan Distribution and the UK Distribution.

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            "TAX RETURN" means any return, filing, report, questionnaire,
information statement or other document required to be filed, including amended
returns that may be filed, for any taxable period with any Taxing Authority
(whether or not a payment is required to be made with respect to such filing).

            "TAX RULING" means a private letter ruling received in response to
the Ruling Request.

            "THIRD ANNIVERSARY PERIOD" means the period beginning on the date of
this Agreement and ending on the third anniversary of the Distribution Date.

            "TRANSACTIONS" means the Contribution, the Distribution, the Japan
Restructuring, the Japan Distribution, the UK Distribution and the Preliminary
Transactions.

            "TRANSACTION TAXES" means Taxes of, or indemnification for Taxes by,
any member of the BMS Group (as in existence prior to the Distribution)
resulting from, or arising in connection with, (a) the failure of (i) the
Contribution or the Japan Restructuring to be tax-free to such member under Code
Sections 351 and 368(a)(1)(D), or (ii) the Distribution, the Japan Distribution
or the UK Distribution to be tax-free to such member, or its shareholders, under
Code Sections 355 and 368(a)(1)(D) (including, without limitation, by reason of
the application of Code Sections 355(d) or (e)) or (b) the failure of any of the
Transactions to be tax-free under comparable provisions of federal, state, local
or foreign law.

            "TREASURY REGULATION" means the regulations promulgated from time to
time under the Code as in effect for the relevant taxable period.

            "UK DISTRIBUTION" is defined in the recitals to this Agreement.

            "US TRANSACTIONS" is defined in the recitals to this Agreement.

            "ZIMMER AFFILIATED GROUP" means the Affiliated Group of which Zimmer
or any successor of Zimmer is the common parent.

            "ZIMMER BUSINESS" is defined in the Ruling Request.

            "ZIMMER CARIBE" means Zimmer Caribe, Inc., a Delaware corporation
and a member of the Zimmer Group.

            "ZIMMER CUMULATIVE OWNERSHIP CHANGE" is defined in Section 5.02.

            "ZIMMER CUMULATIVE OWNERSHIP CHANGE BY VALUE" is defined in Section
5.01(a).

            "ZIMMER CUMULATIVE OWNERSHIP CHANGE BY VOTE" is defined in Section
5.01(b).

            "ZIMMER GROUP" means (i) the corporations that are members of the
Zimmer Affiliated Group and (ii) the corporations that would be members of the
Zimmer

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Affiliated Group but for the fact they are not includible corporations
under Code Section 1504(b).

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                                   ARTICLE II

                      PREPARATION AND FILING OF TAX RETURNS

            SECTION 2.01. TAX RETURNS FOR TAXABLE PERIODS ENDING ON OR BEFORE
THE DISTRIBUTION DATE. (a) BMS shall prepare and file all federal income Tax
Returns, all Combined State Income Tax Returns and all Foreign Tax Returns of
each member of the BMS Group for any taxable period that ends on or before the
Distribution Date. Zimmer hereby irrevocably designates, and agrees to cause
each of its affiliates to designate, BMS as its agent to take any and all
actions necessary or incidental to the preparation and filing by BMS of any Tax
Return described in this Section 2.01.

            (b) Zimmer shall prepare and file all Tax Returns (other than Tax
Returns described in Section 2.01(a)) of each member of the Zimmer Group for any
taxable period that ends on or before the Distribution Date.

            SECTION 2.02. TAX RETURNS FOR STRADDLE PERIODS. (a) Except as
provided in Sections 2.02(b), (c) and (d), Zimmer shall prepare and file all
Tax Returns of each member of the Zimmer Group for all Straddle Periods.

            (b) In the case of any Straddle Period for State Income Taxes,
Zimmer shall prepare all Tax Returns of each member of the Zimmer Group on a
basis consistent with past practice, and shall present such Tax Returns to BMS
for review at least 30 days before the date on which such Tax Returns are
required to be filed. Zimmer shall not file such Tax Returns without the written
consent of BMS, which shall not be unreasonably withheld. Promptly upon
receiving the written consent of BMS, Zimmer shall file, or cause to be filed,
such Tax Returns.

            (c) In the case of any IRS Form 5471 (or any successor form) (a
"Form 5471") relating to the calendar year (or any portion thereof) in which
the Distribution occurs, that is required to be filed with respect to any
member of the Zimmer Group, Zimmer shall prepare such Form 5471 on a basis
consistent with past practice, and shall present such Form 5471 to BMS for
review at least 30 days before the date on which such Form 5471 is required
to be filed. Zimmer shall not file such Form 5471 without the written consent
of BMS, which shall not be unreasonably withheld. BMS shall, and promptly
upon receiving the written consent of BMS, Zimmer shall, file or cause to be
filed, such Form 5471, in each case in a consistent manner.

            (d) In the case of any 936 Return required to be filed for a
Straddle Period, BMS shall prepare such 936 Return on a basis consistent with
past practice, and shall present such 936 Return to Zimmer for review at
least 30 days before the date on which such 936 Return is required to be
filed. BMS shall consider in good faith any suggestions or comments made by
Zimmer after such review. On or before the date on which such 936 Return is
required to be filed, Zimmer shall file or cause to be filed such 936 Return.
BMS shall be entitled to charge, and Zimmer shall be required to pay, a
reasonable fee for services provided by BMS to Zimmer pursuant to this
Section 2.02(d).

            SECTION 2.03. TAX RETURNS FOR TAXABLE PERIODS ENDING AFTER THE
DISTRIBUTION DATE (OTHER THAN STRADDLE PERIODS). In the case of any Tax Return
for any taxable period ending after the Distribution Date (other than a Straddle
Period), such Tax Returns shall be prepared and filed by BMS if they relate to
any member of the BMS Group and by Zimmer if they relate to any member of the
Zimmer Group.

            SECTION 2.04. MANNER OF TAX RETURN PREPARATION. (a) Unless otherwise

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required by a Final Determination, the Companies shall file all Tax Returns, and
take all other actions, in a manner consistent with the Ruling Request and any
Tax Ruling.

            (b) Zimmer and BMS shall execute and file such consents, elections
and other documents as may be required or appropriate for the proper filing of
each Straddle Period Tax Return.

                                   ARTICLE III

                                PAYMENT OF TAXES

            SECTION 3.01. (a) PRE-DISTRIBUTION PERIOD TAXES. Except as otherwise
provided in Sections 3.02 and 3.03, BMS shall be liable for, shall indemnify
each member of the Zimmer Group against, and shall be entitled to retain all
refunds of, all federal income Taxes, Combined State Income Taxes and Foreign
Taxes of each member of the BMS Group for all Pre-Distribution Periods.

            (b) Except as otherwise provided in Sections 3.02 and 3.03, Zimmer
shall be liable for, shall indemnify each member of the BMS Group against, and
shall be entitled to retain all refunds of, all Taxes (other than Taxes
described in section 3.01(a)) of each member of the Zimmer Group for all
Pre-Distribution Periods.

            (c) POST-DISTRIBUTION PERIOD TAXES. Except as otherwise provided in
Sections 3.02 and 3.03, Zimmer shall be liable for, shall indemnify each member
of the BMS Group against, and shall be entitled to retain all refunds of, all
Taxes of each member of the Zimmer Group for all Post-Distribution Periods.

            (d) APPORTIONMENT OF STRADDLE PERIOD TAXES. Straddle Period income
Taxes shall be apportioned between the Pre-Distribution Period and the
Post-Distribution Period on a closing of the books basis.

            SECTION 3.02.  TRANSACTION TAXES.

            (a) ZIMMER GROUP LIABILITY FOR CERTAIN TRANSACTION TAXES. Each
member of the Zimmer Group shall be jointly and severably liable for, and shall
indemnify each member of the BMS Group against, any Transaction Taxes that are
primarily attributable to:

            (i) any inaccurate statement or representation of fact or intent (or
      omission to state a material fact) in the Ruling Request or Section 4.01
      that relates to the Zimmer Group; or

            (ii) any inaccurate statement or representation of fact or intent
      (or omission to state a material fact) that relates to the Zimmer Group in
      a letter or certificate that forms the basis for the Tax Opinion; or

            (iii) any action or omission by the Zimmer Group after the date of
      the Distribution inconsistent with the covenants set forth in Section
      4.02.

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             (b) BMS GROUP LIABILITY FOR REMAINING TRANSACTION TAXES. BMS shall
be liable for, and shall indemnify each member of the Zimmer Group against, any
Transaction Taxes not allocated to the Zimmer Group under Section 3.02(a).

            SECTION 3.03. COMPENSATION DEDUCTIONS. (a) Each of BMS and Zimmer,
respectively, shall be responsible for timely filing with any relevant Taxing
Authorities all required Tax Returns with respect to grants or exercises of
Options on its stock (or grants or vesting of restricted stock issued by it).
BMS (or the appropriate member of the BMS Group) shall claim all Tax deductions
arising by reason of exercises of Options on, or receipt or vesting of
restricted shares of, BMS stock. Zimmer (or the appropriate member of the Zimmer
Group) shall claim all Tax deductions arising by reason of exercises of Options
on, or receipt or vesting of restricted shares of, Zimmer stock.

            (b) If, pursuant to a Final Determination, all or any part of a Tax
deduction claimed pursuant to Section 3.03(a) is disallowed to the Group
claiming such deduction, then, to the extent such deduction may be allowable to
a member of the other Group, such member shall promptly claim such deduction and
shall promptly pay to the Group whose Tax deduction was disallowed the amount of
any Tax benefit realized by such member or its Group as a result of claiming
such deduction.

                                   ARTICLE IV

         REPRESENTATIONS AND COVENANTS WITH RESPECT TO THE DISTRIBUTION

            SECTION 4.01. REPRESENTATIONS. (a) Zimmer represents that, as of the
date of this Agreement, it knows of no fact that may cause the Contribution or
the Japan Restructuring to fail to qualify as a tax-free transfer under Section
351 and 368(a)(1)(D) of the Code, or the Distribution, the Japan Distribution or
the UK Distribution to fail to qualify as a tax-free spin-off under Sections 355
and 368 (a)(1)(D) of the Code.

            (b) Zimmer represents that, as of the date of this Agreement, there
is no plan or intention to:

            (i) liquidate any of the members of the Zimmer Group or merge or
      consolidate any of such corporations with any other person subsequent to
      the Distribution;

            (ii) sell or dispose of the assets of any member of the Zimmer Group
      subsequent to the Distribution, except in the ordinary course of business;

            (iii) take any action inconsistent with the Ruling Request, the Tax
      Opinion or any Tax Ruling;

            (iv) purchase stock of Zimmer, other than in accordance with the
      requirements of Revenue Procedure 96-30 and in conformity with the Ruling
      Request and any Tax Ruling; or

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            (v) enter into any negotiations, discussions, agreements or
      arrangements with respect to any proposed Change in Zimmer Stock Ownership
      after which the Zimmer Cumulative Ownership Change would exceed 10
      percent.

            (c) Zimmer represents that it is not aware of any plan or intention
by shareholders of BMS to sell, exchange, transfer, or otherwise dispose of any
of their stock or securities in BMS or Zimmer subsequent to the Distribution.

            SECTION 4.02. COVENANTS. (a) Zimmer agrees that it will not take,
and will not permit any member of the Zimmer Group to take, any action that will
cause the Contribution or the Japan Restructuring to fail to qualify as a
tax-free transfer under Sections 351 and 368(a)(1)(D) of the Code, or the
Distribution, the Japan Distribution or the UK Distribution to fail to qualify
as a tax-free spin-off under Code Sections 355 and 368(a)(1)(D).

            (b) Zimmer agrees that:

            (i) No member of the Zimmer Group shall purchase stock of Zimmer,
      other than in accordance with the requirements of Revenue Procedure 96-30
      and in conformity with the Ruling Request, the Tax Opinion and any Tax
      Ruling;

            (ii) On or after the Distribution Date, Zimmer shall not, nor shall
      it permit any member of the Zimmer Group to, make or change any tax
      election, change any accounting method, amend any Tax Return or take any
      position on any Tax Return, take any action, omit to take any action or
      enter into any transaction that results in an increased tax liability or
      reduction of any Tax attribute of BMS with respect to any Pre-Distribution
      Period;

            (iii) During the Second Anniversary Period:

                  (A) No member of the Zimmer Group shall liquidate, merge or
            consolidate with any other person;

                  (B) Zimmer shall not sell, exchange, distribute or otherwise
            dispose of the assets of any member of the Zimmer Group, except in
            the ordinary course of business;

                  (C) Zimmer shall continue the active conduct of its historic
            United States business (i.e. the manufacture and marketing of
            reconstructive implants, fracture management products and orthopedic
            surgical products in the United States); and

                  (D) Zimmer shall not consummate any proposed Change in Zimmer
            Stock Ownership after which the Zimmer Cumulative Ownership Change
            will exceed 10%. Notwithstanding the foregoing, if a proposed Change
            in Zimmer Stock Ownership is a result of negotiations, discussions,
            agreements or arrangements that occurred at any time before, or
            during the six-month period immediately following, the Distribution,

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            then the preceding sentence shall apply to that proposed Change in
            Zimmer Stock Ownership during the Third Anniversary Period; and

            (iv) Within 30 days after entering into an agreement or adopting a
      plan to consummate any Change in Zimmer Stock Ownership, Zimmer will
      notify BMS of such agreement or plan and provide BMS with complete details
      as to how the proposed Change in Zimmer Stock Ownership will affect the
      Zimmer Cumulative Ownership Change.

            (c) EXCEPTIONS. Notwithstanding the foregoing, Zimmer and the
members of the Zimmer Group shall be permitted to take an action inconsistent
with the provisions of Section 4.02(b)(iii), if, prior to taking such action,
Zimmer:

            (i) Provides notification to BMS of its plans with respect to such
      action, and promptly responds to any inquiries by BMS following such
      notification; and

            (ii) obtains and provides to BMS either:

                  (A) a ruling from the IRS to the effect that such action shall
            not cause any of the Transactions to be taxable to BMS or its
            shareholders; or

                  (B) an opinion, in form and substance acceptable to BMS in its
            sole discretion, of Cravath, Swaine & Moore (or of other independent
            counsel that is nationally recognized as being expert in federal Tax
            matters and is acceptable to BMS in its sole discretion) to the
            effect that such action shall not cause any of the Transactions to
            be taxable to BMS or its shareholders.

                                    ARTICLE V

                CALCULATION OF ZIMMER CUMULATIVE OWNERSHIP CHANGE

            SECTION 5.01. (a) ZIMMER CUMULATIVE OWNERSHIP CHANGE BY VALUE.
"Zimmer Cumulative Ownership Change by Value" means the total percentage change
in Zimmer stock ownership in terms of value immediately after a proposed Change
in Zimmer Stock Ownership and shall be calculated by multiplying (a) 100 by (b)
a fraction (i) the numerator of which is the sum of (A) the total value of the
shares of Zimmer stock proposed to be issued, or for which there is a change in
ownership, in the proposed Change in Zimmer Stock Ownership, (B) the total value
of the shares of Zimmer stock issued, or for which there has been a change in
ownership, in all prior Changes in Zimmer Stock Ownership, and (C) the value of
the number of shares of Zimmer stock determined by BMS and Zimmer on or prior to
the Distribution Date, and (ii) the denominator of which is the total value of
the shares of Zimmer stock that would be outstanding after the proposed Change
in Zimmer Stock Ownership.

            (b) ZIMMER CUMULATIVE OWNERSHIP CHANGE BY VOTE. "Zimmer Cumulative
Ownership Change by Vote" means the total percentage change in Zimmer

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stock ownership in terms of voting power immediately after a proposed Change in
Zimmer Stock Ownership and shall be calculated by multiplying (a) 100 by (b) a
fraction (i) the numerator of which is the sum of (A) the total voting power of
the shares of Zimmer stock proposed to be issued, or for which there is a change
in ownership, in the proposed Change in Zimmer stock Ownership, (B) the total
voting power of the shares of Zimmer Stock issued, or for which there has been a
change in ownership, in all prior Changes in Zimmer Stock Ownership, and (C) the
voting power of the number of shares of Zimmer stock determined by BMS and
Zimmer on or prior to the Distribution Date, and (ii) the denominator of which
is the total voting power of the shares of Zimmer stock that would be
outstanding after the proposed Change in Zimmer Stock Ownership.

            (c) CALCULATION. In calculating the value or voting power of shares
of Zimmer stock (i) to be issued or issued or for which there is or has been a
change in ownership in either a proposed or prior Change in Zimmer Stock
Ownership, or (ii) that would be outstanding after a proposed Change in Zimmer
Stock Ownership, any options or other securities exchangeable for or convertible
into any class of stock of Zimmer shall be treated as exercised, exchanged or
converted, as the case may be, where such treatment would increase the resulting
Zimmer Cumulative Ownership Change.

            SECTION 5.02. ZIMMER CUMULATIVE OWNERSHIP CHANGE. The "Zimmer
Cumulative Ownership Change" shall equal the greater of the Zimmer Cumulative
Ownership Change by Value and the Zimmer Cumulative Ownership Change by Vote.

                                   ARTICLE VI

            TAX PROCEEDINGS; COOPERATION AND EXCHANGE OF INFORMATION

            SECTION 6.01. TAX PROCEEDINGS. (a) NOTIFICATION. Within 15 days
after a party (the "Indemnitee") becomes aware of the existence of a Tax issue
(an "Indemnity Issue") that may give rise to an indemnification claim under
Article III of this Agreement (a "Tax Controversy"), by it against the other
party (the "Indemnifying Party"), the Indemnitee shall promptly notify the
Indemnifying Party of the Indemnity Issue, and thereafter shall promptly forward
to the Indemnifying Party copies of notices and communications with a Taxing
Authority relating to such Tax Controversy (e.g., any IRS revenue agent's
reports or similar reports, notices of proposed adjustment, or notices of
deficiency).

            (b) CONTROL OF TAX PROCEEDINGS. Except as provided in Section
6.01(c), the Indemnifying Party may elect to control, and may elect to have sole
discretion in handling, settling or contesting any audit inquiry, information
request, audit proceeding, suit, contest or any other action with respect to a
Tax Controversy for which it would be required to indemnify the other party if
it acknowledges in writing that it has sole liability for any Taxes that might
arise in such proceeding. The Indemnifying Party shall not settle any Tax
proceeding with respect to a Tax Controversy on a basis that would materially
adversely affect the Indemnitee without obtaining the Indemnitee's written
consent, which consent shall not be unreasonably withheld. The Indemnitee shall
not settle any Tax Controversy without obtaining the Indemnifying Party's
written consent, which shall not be unreasonably withheld. Any out-of-pocket

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costs incurred in handling, settling or contesting a Tax controversy shall be
borne by the Indemnifying Party.

            (c) CONTROL OF TRANSACTION TAX PROCEEDINGS. BMS and Zimmer shall
jointly control, and shall each have the right to participate in all activities
and strategic decisions with respect to, any Tax proceedings relating to
Transaction Taxes. BMS may assume sole control of a Transaction Tax proceeding
if it acknowledges in writing that it has sole liability for any Transaction
Taxes that might arise in such proceeding.

            SECTION 6.02. INDEMNIFICATION PAYMENTS. (a) If an Indemnitee has a
claim for an indemnification payment from an Indemnifying Party under this
Agreement, the Indemnitee shall promptly provide to the Indemnifying Party
notice of such claim, including a description of such claim and a detailed
calculation of the amount of the indemnification payment that is claimed. The
Indemnifying Party shall make the claimed payment to the Indemnitee within 20
business days after receiving such notice, unless the Indemnifying Party
reasonably disputes the amount of, or its liability for, such payment. All
disputes regarding the amounts of, or liability for, any such claimed payment
shall be resolved pursuant to the procedures set forth in the Contribution and
Distribution Agreement. Interest shall accrue with respect to any
indemnification payment (including any disputed payment that is ultimately
required to be made) not made within the period provided for payment, at the
underpayment rate in effect under the Code at such time.

            (b) TREATMENT OF PAYMENTS. The amount of all indemnification
obligations under this Agreement shall be calculated on an after-Tax basis. Any
payments made to one party by another party which this Agreement shall be
treated for all Tax purposes as nontaxable payments (dividends or capital
contributions, as the case may be) made immediately prior to the Distribution,
unless, and then only to the extent, otherwise required by a Final
Determination.

            SECTION 6.03. COOPERATION AND EXCHANGE OF INFORMATION. (a) Each
member of the BMS Group and the Zimmer Group shall cooperate fully with all
reasonable requests from the other party in connection with the preparation and
filing of Tax Returns, claims for refund, and Tax proceedings concerning issues
or other matters covered by this Agreement. Such cooperation shall include,
without limitation:

            (i) the retention until the expiration of the applicable statute of
      limitations, and the provision upon request, of Tax Returns, books,
      records (including information regarding ownership and Tax basis of
      property), documentation and other information relating to the Tax
      Returns, including accompanying schedules, related work papers, and
      documents relating to rulings or other determinations by Taxing
      Authorities;

            (ii) the execution of any document that may be necessary or
      reasonably helpful in connection with any Tax proceeding, or the filing of
      a Tax Return or refund claim by a member of the BMS or Zimmer Group,
      including certification, to the best of a party's knowledge, of the
      accuracy and completeness of the information it has supplied; and

<PAGE>
                                                                              14

            (iii) the use of the parties' best efforts to obtain any
      documentation that may be necessary or reasonably helpful in connection
      with any of the foregoing.

      Each party shall make its employees and facilities available on a
      reasonable and mutually convenient basis in connection with the foregoing
      matters.

            (b) If a party fails to comply with any of its obligations set forth
in Section 6.03(a) of this Agreement upon reasonable request and notice by the
other party, and such failure results in the imposition of additional Taxes, the
nonperforming party shall be liable in full for such additional Taxes.

             SECTION 6.04. RETENTION OF INFORMATION. A party intending to
dispose of documentation of BMS or Zimmer or any member of its respective Group,
including without limitation, books, records, Tax Returns and all supporting
schedules and information relating thereto (after the expiration of the
applicable statute of limitations), shall provide written notice to the other
party describing the documentation to be destroyed or disposed of 60 days prior
to taking such action. The other party may arrange to take delivery of the
documentation described in the notice at its expense during the succeeding
60-day period.

                                   ARTICLE VII

                            MISCELLANEOUS PROVISIONS

            SECTION 7.01. NOTICE. Any payment, notice or communication required
or permitted to be given under this Agreement shall be in writing (including
facsimile) and mailed, faxed or delivered to the parties at the following
addresses (or at such other address as one party may specify by notice to the
other party):

            If to BMS to:

                  Bristol-Myers Squibb Company
                  345 Park Avenue
                  New York, NY 10154-0037
                  Attention: Eileen S. Silvers, Esq., Vice President, Taxes

                  Bristol-Myers Squibb Company
                  345 Park Avenue
                  New York, NY 10154-0037
                  Attention: General Counsel

            If to Zimmer:

                  Zimmer Holdings, Inc.
                  345 East Main Street
                  Warsaw, IN 46580
                  Attention: General Counsel

<PAGE>
                                                                              15

Notification of a change of address shall be given by either party to the other
as provided in this Section 7.01. All such notices and communications shall be
effective (i) when received, if mailed or delivered, or (ii) when confirmed by
fax answerback, if faxed.

            SECTION 7.02. GOVERNING LAW. This Agreement shall be governed by the
laws applicable to contracts entered into and to be performed within the State
of New York by residents thereof.

            SECTION 7.03. JURISDICTION. Each party agrees to submit itself
exclusively to the personal jurisdiction of any New York court in the event any
dispute arises out of this Agreement or any of the transactions contemplated by
this Agreement and agrees that it will not attempt to deny or defeat such
personal jurisdiction or venue by motion or other request for leave from any
such New York court. Each party further agrees that service of any process,
summons, notice or document by U.S. registered mail to such party's respective
address set forth above shall be effective service of process for any action,
suit or proceeding in New York with respect to any matters to which it has
submitted to jurisdiction in this Section 7.03.

            SECTION 7.04. WAIVER OF JURY TRIAL. Each party waives, to the
fullest extent permitted by applicable law, any right it may have to a trial by
jury in respect of any dispute arising out of this Agreement.

            SECTION 7.05. ENTIRE AGREEMENT. This Agreement embodies the entire
understanding between the parties relating to its subject matter and supersedes
and terminates all prior agreements and understandings among the parties with
respect to such matters. No promises, covenants or representations of any kind,
other than those expressly stated herein, have been made to induce any party to
enter into this Agreement. This Agreement shall not be modified or terminated
except by a writing duly signed by each of the parties hereto, and no waiver of
any provisions of this Agreement shall be effective unless in a writing duly
signed by the party sought to be bound. If, and to the extent, the provisions of
this Agreement conflict with the Contribution and Distribution Agreement, or any
other agreement entered into in connection with the Transactions, the provisions
of this Agreement shall control.

            SECTION 7.06. ASSIGNMENT; BINDING EFFECT. Neither this Agreement nor
any of the rights, interests or obligations under this Agreement shall be
assigned, in whole or in part, by operation of law or otherwise by any of the
parties without the prior written consent of the other party; provided, however,
that no such consent shall be required in the event of a merger, consolidation
or sale of either BMS or Zimmer. Subject to the preceding sentence, this
Agreement shall be binding on, and shall inure to the benefit of, and be
enforceable by, the parties hereto and their respective successors and assigns.

            SECTION 7.07. COUNTERPARTS. This Agreement may be executed in two or
more counterparts, each of which shall be deemed to be an original, but all of
which together shall constitute one and the same.

            SECTION 7.08. SEVERABILITY. If any provision of this Agreement or
the application of any such provision to any person or circumstances shall be

<PAGE>
                                                                              16

held invalid, illegal or unenforceable in any respect by a court of competent
jurisdiction, such invalidity, illegality or unenforceability shall not affect
any other provision hereof.

            SECTION 7.09. HEADINGS. Headings of sections in this Agreement are
inserted for convenience of reference only and are not intended to be a part of
or to affect the meaning or interpretation of this Agreement.

            SECTION 7.10. SURVIVAL. Notwithstanding anything in this Agreement
to the contrary, the provisions of this Agreement shall survive for the full
period of all applicable statutes of limitations (giving effect to any waiver,
mitigation or extension thereof).

            IN WITNESS WHEREOF, each of the parties has caused this Agreement to
be executed by its respective duly authorized officer as of the date first set
forth above.

                                    Bristol-Myers Squibb Company

                                    by
                                      ----------------------------
                                    Name:
                                    Title:

                                    Zimmer Holdings, Inc.

                                    by
                                      ----------------------------
                                    Name:
                                    Title:<PAGE>

                                                                    Exhibit 10.6

                              ZIMMER HOLDINGS, INC.
                            2001 STOCK INCENTIVE PLAN

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

      2. DEFINITIONS: For purposes of this Plan:

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

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

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

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

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

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

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

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

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

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

<PAGE>

resignation, willful misconduct or activity deemed detrimental to the
interests of the Company) where, on termination, the employee's age plus
years of service (rounded up to the next higher whole number) equals at least
70 and the employee has completed 10 years of service with the Company,
provided the optionee executes a general release agreement and, where
applicable, a non-solicitation and/or non-compete agreement with the Company.
For purposes of this Plan, service with Bristol-Myers Squibb and its
subsidiaries and affiliates before the Effective Date shall be included as
service with the Company.

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

      3. AMOUNT OF STOCK: (a) ANNUAL LIMITATION. With respect to each calendar
year, the amount of stock which may be made subject to grants of options and
awards under the Plan shall not exceed an amount equal to 1.9% of the
outstanding shares of the Common Stock on January 1 of such year (or, in the
case of the 2001 year, on the effective date of the Plan) plus (i) in any
year the number of shares equal to the amount of shares that were available
for options and awards under the Plan in the prior year but were not made
subject to an option or award in such prior year, (ii) the number of shares
that were subject to options or awards granted hereunder that terminated,
expired or were cancelled, forfeited, exchanged or surrendered in the prior
year without being exercised, (iii) the number of shares participants
tendered in the prior year to pay the purchase price of options in accordance
with Section 7(b)(5), and (iv) the number of shares the Company retained or
caused participants to surrender in the prior year to satisfy Withholding Tax
requirements in accordance with Section 12. Options and awards granted under
Sections 6 and 19 shall not be considered in applying this limitation, to the
extent provided in Sections 6 and 19.

(b) INDIVIDUAL PARTICIPANT LIMITATION. No individual may be granted options or
awards under Section 7, 8 or 9, in the aggregate, in respect of more than
2,000,000 shares of the Common Stock over the life of the Plan. Options and
awards granted under Sections 6 and 19 shall not be included in applying this
limitation, to the extent provided in Sections 6 and 19.

(c) PERFORMANCE UNIT, PERFORMANCE SHARE AND RESTRICTED STOCK AWARDS LIMITATION.
The aggregate number of shares issued under performance units and performance
share awards made pursuant to Section 8 and restricted stock awards made
pursuant to Section 9 may not exceed 25% of the available shares over the life
of the Plan.

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

(e) ADJUSTMENT. The limitations under Section 3(a), (b), (c) and (d) are subject
to adjustment in number and kind pursuant to Section 11.

(f) TREASURY OR MARKET PURCHASED SHARES. Common Stock issued hereunder may be
authorized and reissued shares or issued shares acquired by the Company on the
market or otherwise.

                                       2
<PAGE>

      4. ADMINISTRATION: The Plan shall be administered under the supervision
of the Board of Directors of the Issuer, which may exercise its powers, to
the extent herein provided, through the agency of a Compensation and
Management Development Committee (the "Committee"), which shall be appointed
by the Board of Directors of the Issuer. The Committee shall consist of not
less than three (3) members of the Board who are intended to meet the
definition of "outside director" under the provisions of Section 162(m) of
the Code and the definition of "non-employee directors" under the provisions
of the Exchange Act or rules or regulations promulgated thereunder. To the
extent that the Board of Directors administers the Plan, references to the
Committee shall mean the Board of Directors.

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

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

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

      6. GRANTS AS OF EFFECTIVE DATE:

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

                                       3
<PAGE>

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

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

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

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

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

            (1) NUMBER OF SHARES SUBJECT TO AN OPTION. The Stock Option
      Agreement shall specify the number of shares of Common Stock subject to
      the Agreement. If the option is an Associated Option, the number of shares
      of Common Stock subject to such Associated Option shall initially be equal
      to the number of performance units or performance shares subject to the
      award, but one share of Common Stock shall be canceled for each
      performance unit or performance share paid out under the award.

                                       4
<PAGE>

            (2) OPTION PRICE. The purchase price per share of Common Stock
      purchasable under an option will be determined by the Committee but will
      be not less than the Fair Market Value of a share of Common Stock on the
      date of the grant of the option, except as provided in Section 6, 18 or
      19.

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

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

            (5) EXERCISE OF OPTION. An option may be exercised in whole or in
      part from time to time during the option period (or, if determined by the
      Committee, in specified installments during the option period) by giving
      written notice of exercise to the Company specifying the number of shares
      to be purchased. Such written notice must be accompanied by payment in
      full of the purchase price and Withholding Taxes (as defined in Section 12
      hereof), unless an election to defer receipt of shares is made under
      Section 14, due either (i) by certified or bank check, (ii) by payment
      through a broker in accordance with procedures permitted by Regulation T
      of the Federal Reserve Board, (iii) in shares of Common Stock owned by the
      optionee having a Fair Market Value at the date of exercise equal to such
      purchase price, provided that payment in shares of Common Stock will not
      be permitted unless at least 100 shares of Common Stock are required and
      delivered for such purpose, (iv) in any combination of the foregoing, or
      (v) by any other method that the Committee approves. At its discretion,
      the Committee may modify or suspend any method for the exercise of stock
      options, including any of the methods specified in the previous sentence.
      Delivery of shares for exercising an option shall be made either through
      the physical delivery of shares or through an appropriate certification or
      attestation of valid ownership. Shares of Common Stock used to exercise an
      option shall have been held by the optionee for the requisite period of
      time to avoid adverse accounting consequences to the Company with respect
      to the option. No shares shall be issued until full payment therefor has
      been made. An optionee shall have the rights of a stockholder only with
      respect to shares of stock that have been recorded on the Company's books
      on behalf of the optionee or for which certificates have been issued to
      the optionee.

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

                                       5
<PAGE>

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

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

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

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

            (9) DEATH OF OPTIONEE. Except as otherwise provided in subsection
      (13), in the event of the optionee's death (i) while in the employ of the
      Company, (ii) while Disabled as described in subsection (8) or (iii) after
      cessation of employment due to Retirement, the option shall be fully
      exercisable by the executors, administrators, legatees or distributees of
      the optionee's estate, as the case may be, at any time following such
      death. In the event of the optionee's death after cessation of employment
      for any reason other than Disability or Retirement, the option shall be
      exercisable by the executors, administrators, legatees or distributees of
      the optionee's estate, as the case may be, at any time during the twelve
      month period following such death. Notwithstanding the foregoing, unless
      the Committee determines otherwise, in no event shall an option be
      exercisable unless the optionee shall have been continuously employed by
      the Company for a period of at least one year after the option grant, and
      no option shall be exercisable after the expiration of the option period
      set forth in the Stock Option Agreement. In the

                                       6
<PAGE>

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

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

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

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

                  (B) A stock appreciation right shall entitle the optionee (or
            any person entitled to act under the provisions of subsection (9)
            hereof) to surrender unexercised the option in which the stock
            appreciation right is included (or any portion of such option) to
            the Company and to receive from the Company in exchange therefor
            that number of shares having an aggregate value equal to (or, in the
            discretion of the Committee, less than) the excess of the value of
            one share (provided such value does not exceed such multiple of the
            option price per share as may be specified by the Committee) over
            the option price per share specified in such option times the number
            of shares called for by the option, or portion thereof, which is so
            surrendered. The Committee shall be entitled to cause the Company to
            settle its obligation, arising out of the exercise of a stock
            appreciation right, by the payment of cash equal to the aggregate
            value of the shares the Company would otherwise be obligated to
            deliver or partly by the payment of cash and partly by the delivery
            of shares. Any such election shall be made within 30 business days
            after the receipt by the Committee of written notice of the exercise
            of the stock appreciation right. The value of a share for this
            purpose

                                       7
<PAGE>

            shall be the Fair Market Value thereof on the last business day
            preceding the date of the election to exercise the stock
            appreciation right;

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

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

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

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

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

      8. LONG-TERM PERFORMANCE AWARDS: Awards under the Plan shall consist of
the conditional grant to the participants of a specified number of performance
units or performance shares. The conditional grant of a performance unit to a
participant will entitle the participant to receive a specified dollar value,
variable under conditions specified in the award, if the

                                       8
<PAGE>

performance objectives specified in the award are achieved and the other terms
and conditions thereof are satisfied. The conditional grant of a performance
share to a participant will entitle the participant to receive a specified
number of shares of Common Stock, or the equivalent cash value, if the
objectives specified in the award are achieved and the other terms and
conditions thereof are satisfied. Each award will be subject to the following
terms and conditions:

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

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

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

            (2) NUMBER AND VALUE OF PERFORMANCE SHARES. The Performance Share
      Agreement shall specify the number of performance shares conditionally
      granted to the participant. If the award has been made in conjunction with
      the grant of an Associated Option, the number of performance shares
      granted shall initially be equal to the number of shares which the
      participant is granted the right to purchase pursuant to the Associated

                                       9
<PAGE>

      Option, but one performance share shall be canceled for each share of the
      Company's Common Stock purchased upon exercise of the Associated Option or
      for each stock appreciation right included in such option that has been
      exercised. The Performance Share Agreement shall specify that each
      Performance Share will have a value equal to one (1) share of Common
      Stock.

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

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

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

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

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

            (6) DETERMINATION AND PAYMENT OF PERFORMANCE UNITS OR PERFORMANCE
      SHARES EARNED. As soon as practicable after the end of an award period,
      the Committee shall determine the extent to which awards have been earned
      on the basis of the Company's actual performance in relation to the
      established performance objectives as set forth in the Performance Unit
      Agreement or Performance Share Agreement and certify these results in
      writing. The Performance Unit Agreement or Performance Share Agreement
      shall specify that as soon as practicable after the end of each award
      period, the Committee shall determine whether the conditions of Sections
      8(b)(4) and 8(b)(5) hereof have been met and, if so, shall ascertain the
      amount payable or shares which should be distributed to the participant in
      respect of the performance units or performance shares. As promptly as
      practicable after it has determined that an amount is payable or should be
      distributed in respect of an award, the Committee shall cause the Current
      Portion of such award to be paid or distributed to the participant or the
      participant's beneficiaries, as the case may be,

                                       10
<PAGE>

      in the Committee's discretion, either entirely in cash, entirely in Common
      Stock or partially in cash and partially in Common Stock. The Deferred
      Portion of an award shall be contingently credited and payable to the
      participant over a deferred period and shall be credited with interest,
      rate of return, or other valuation as determined by the Committee. The
      Committee, in its discretion, shall determine the conditions upon, and
      method of, payment of such Deferred Portions and whether such payment will
      be made entirely in cash, entirely in Common Stock or partially in cash
      and partially in Common Stock.

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

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

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

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

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

            (8) RETIREMENT AND TERMINATION OF EMPLOYMENT OTHER THAN BY DEATH OR
      DISABILITY. In the event of the Retirement prior to the end of an award
      period of a participant who has satisfied the one year employment
      requirement of Section 8(b)(4) with respect to an award prior to
      Retirement, or as otherwise determined by the Committee, the participant,
      or his estate, shall be entitled to a payment of such award at the end of
      the award period, pursuant to the terms of the Plan and the participant's
      Performance Unit Agreement or Performance Share Agreement, provided,
      however, that the participant shall be deemed to have earned that
      proportion (to the nearest whole unit or share) of the value of the
      performance units or performance shares granted to the

                                       11
<PAGE>

      participant under such award as the number of months of the award period
      which have elapsed since the first day of the calendar year in which the
      award was made to the end of the month in which the participant's
      Retirement occurs, bears to the total number of months in the award
      period, subject to the attainment of performance objectives associated
      with the award as certified by the Committee. The participant's right to
      receive any remaining performance units or performance shares shall be
      canceled and forfeited.

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

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

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

                                       12
<PAGE>

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

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

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

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

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

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

                                       13
<PAGE>

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

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

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

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

            (1) NUMBER OF SHARES SUBJECT TO AN AWARD: The Restricted Stock
      Agreement shall specify the number of shares of Common Stock subject to
      the Award.

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

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

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

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

            The Committee shall establish the specific targets for the selected
      criteria. These targets may be set at a specific level or may be expressed
      as relative to the comparable measure at comparison companies or a defined
      index. These targets may be based upon

                                       14
<PAGE>

      the total Company, one or more business units of the Company or a defined
      business unit which the executive has responsibility for or influence
      over.

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

      (c) TERMS AND CONDITIONS OF RESTRICTIONS AND FORFEITURES: The shares of
Common Stock awarded pursuant to the Plan shall be subject to the following
restrictions and conditions:

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

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

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

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

            (5) Upon termination of employment for any reason during the
      Restriction Period, subject to the provisions of paragraph (3) above or in
      the event that the participant fails promptly to pay or make satisfactory
      arrangements as to the withholding taxes as provided in the following
      paragraph, all shares still subject to restriction shall be forfeited by
      the participant and will be deemed to be reacquired by the Company.

                                       15
<PAGE>

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

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

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

      10. DETERMINATION OF BREACH OF CONDITIONS: The determination of the
Committee as to whether an event has occurred resulting in a forfeiture or a
termination or reduction of the Company's obligations in accordance with the
provisions of the Plan shall be conclusive.

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

      12. TAXES:

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

      (b) Notwithstanding the foregoing, if the stock options have been
transferred, the optionee shall provide the Company with funds sufficient to pay
such Withholding Tax. If such optionee does not satisfy the optionee's tax
payment obligation and the stock options have been transferred, the transferee
may provide the funds sufficient to enable the Company to pay such

                                       16
<PAGE>

taxes. However, if the stock options have been transferred, the Company shall
have no right to retain or sell without notice, or to demand surrender from the
transferee of, shares of Common Stock in order to pay such Withholding Tax.

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

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

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

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

      The following definitions shall apply for purposes of the Plan:

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

            (1) The date any person (as defined in Section 13(d)(3) of the
      Exchange Act) shall have become the direct or indirect beneficial owner of
      twenty percent (20%) or more of the then outstanding common shares of the
      Issuer;

            (2) The date the shareholders of the Issuer approve a merger or
      consolidation of the Issuer with any other corporation other than (i) a
      merger or consolidation which would result in the voting securities of the
      Issuer outstanding immediately prior thereto continuing to represent at
      least 75% of the combined voting power of the voting securities of the
      Issuer or the surviving entity outstanding immediately after such merger
      or consolidation, or (ii) a merger or consolidation effected to implement
      a recapitalization

                                       17
<PAGE>

      of the Issuer in which no Person acquires more than 50% of the combined
      voting power of the Issuer's then outstanding securities;

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

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

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

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

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

      14. DEFERRAL ELECTION: Notwithstanding the provisions of Section 12, any
optionee or participant may elect, with the concurrence of the Committee and
consistent with any rules and regulations established by the Committee, to defer
the delivery of the proceeds of the exercise of any stock option not transferred
under the provisions of Section 7(b)(6) or stock appreciation rights.

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

      (b) STOCK OPTION DEFERRAL: The deferral of the proceeds of stock options
may be elected by an optionee subject to the Regulations established by the
Committee. The proceeds from such an exercise shall be credited to the
optionee's deferred stock option account as the number of deferred share units
equivalent in value to those proceeds. Deferred share units shall be valued at
the Fair Market Value on the date of exercise. Subsequent to exercise, the
deferred

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<PAGE>

share units shall be valued at the Fair Market Value of Common Stock. Deferred
share units shall accrue dividends at the rate paid upon the Common Stock, which
shall be credited in the form of additional deferred share units. Deferred share
units shall be distributed in shares of Common Stock upon the termination of
employment of the participant or at such other date as may be approved by the
Committee over a period of no more than ten (10) years.

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

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

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

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

                                       19
<PAGE>

      16. MISCELLANEOUS:

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

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

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

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

      (e) Notwithstanding anything to the contrary in the Plan, neither the
Board nor the Committee shall have any authority to take any action under the
Plan where such action would adversely affect the Company's ability to account
for any business combination as a "pooling of interests."

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

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

      19. GRANTS IN CONNECTION WITH CORPORATE TRANSACTIONS AND OTHERWISE:
Nothing contained in this Plan shall be construed to (i) limit the right of the
Committee to make grants

                                       20
<PAGE>

under this Plan in connection with the acquisition, by purchase, lease, merger,
consolidation or otherwise, of the business or assets of any corporation, firm
or association, including grants to employees thereof who become employees of
the Company, or for other proper corporate purposes, or (ii) limit the right of
the Company to grant options or make other awards outside of this Plan. Without
limiting the foregoing, the Committee may make a grant to an employee of another
corporation who becomes an employee of the Company by reason of a corporate
merger, consolidation, acquisition of stock or property, reorganization or
liquidation involving the Company in substitution for an option or award granted
by such corporation. The terms and conditions of the substitute grants may vary
from the terms and conditions required by the Plan and from those of the
substituted stock incentives. The Committee shall prescribe the provisions of
the substitute grants. Any options or awards that are converted into Company
options or awards as a result of a merger or acquisition will not count
against the limitations provided under Section 3.

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

                                       21

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