Document:

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                                                                   EXHIBIT 10.22

                               GUIDANT CORPORATION

                       AMENDED ECONOMIC VALUE ADDED (EVA)

                                  AND MILESTONE

                                   BONUS PLAN

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                                    ARTICLE I

                        STATEMENT OF PURPOSE AND SUMMARY

The purpose of the Plan is to provide a system of bonus compensation for the
employees of Guidant Corporation and subsidiaries that will promote the
maximization of shareholder value over the long term by linking performance
incentives to increases in shareholder value and other objectives. The Plan ties
bonus compensation to changes in the economic value added or achievement of
other milestones, and thereby rewards employees for long-term, sustained
improvement in shareholder value.

                                   ARTICLE II

                          DEFINITIONS OF CERTAIN TERMS

Unless the context requires a different meaning, the following terms shall have
the following meanings:

2.1      "Company" means Guidant Corporation and its subsidiaries.

2.2      "Committee" means the Compensation Committee, the members of which
         shall be selected by the Board of Directors from among its members.

2.3      "Declared Bonus" means the Declared EVA Bonus, as defined in Article
         IV, or Declared Milestone Bonus, as defined in Article V.

2.4      "Disability" means the time at which a Participant becomes eligible for
         a payment under a company-sponsored extended disability plan, assuming
         eligibility to participate in that plan.

2.5      "Milestone" means any financial or non-financial performance measure
         designated by the Committee to determine the bonus for a Participant
         under the Plan.

2.6      "Participant" means any employee of the Company designated by the
         Committee as a participant in the Plan with respect to any Plan Year.

2.7      "Plan" means this Guidant Corporation Economic Value Added (EVA) and
         Milestone Bonus Plan.

2.8      "Plan Year" means the applicable calendar year.

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2.9      "Retirement" means the cessation of employment on or after the earlier
         of (i) attainment of age sixty-five (65), or (ii) the date on which the
         sum of the Participant's age plus Years of Service (as defined in The
         Guidant Employee Savings and Stock Ownership Plan) equals eighty (80)
         or as the Committee may, in its discretion, determine.

                                   ARTICLE III

                        DEFINITION AND COMPONENTS OF EVA

The following terms set forth the calculation of economic value added ("EVA")
and the components of calculating EVA. EVA is calculated on a monthly basis. The
aggregate of the monthly EVA amounts during a Plan Year is used in determining
the bonuses earned by Participants under the Plan, as set forth in Article IV.

3.1      "EVA" means the excess Net Income that remains after subtracting the
         Capital Charge.

3.2      "Net Income" means the after tax operating earnings of the Company for
         the Plan Year.

3.3      "Capital Charge" means the deemed opportunity cost of employing Capital
         for the Company. The Capital Charge is calculated by multiplying
         Capital employed times the Cost of Capital.

3.4      "Capital" means certain assets employed in the operations of the
         Company. These assets include receivables and inventories net of
         allowances, intangible assets, and property, plant and equipment net of
         accumulated depreciation.

3.5      "Cost of Capital" is the percentage calculated from the weighted
         average Cost of Debt and Cost of Equity; however, the Committee may, in
         its sole discretion, elect to use the Company's target Cost of Capital.
         Cost of Capital for each Plan Year is determined by reference to the
         percentage calculated at the end of October of the prior Plan Year.

3.6      "Cost of Debt" is the marginal long-term borrowing rate of the Company
         times (one minus the tax rate).

3.7      "Cost of Equity" is the risk-free rate plus (beta times the market risk
         premium).

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                                   ARTICLE IV

                   DEFINITION AND COMPUTATION OF THE EVA BONUS

The Committee may elect to set bonuses for a Plan Year under the Plan based on
the actual "EVA Improvement" for the Plan Year. The result produced is referred
to as the "Bonus Multiple," which is multiplied by the Participant's "Target EVA
Bonus" amount established for the year to produce the actual bonus earned. The
actual bonus amount, referred to as the "Declared EVA Bonus," is paid out in the
manner provided below in Article VI.

4.1      Target EVA Bonus. The Target EVA Bonus Awards will be determined
         according to a schedule determined by the Committee that associates job
         responsibilities with a specified dollar amount of Target EVA Bonus. If
         a Participant moves from one Target EVA Bonus to another during a Plan
         Year by virtue of a change in job responsibilities, he or she will
         receive an award that is pro-rated according to time. The Target EVA
         Bonus will be based on the currency in which the highest portion of
         base pay is regularly paid.

4.2      Declared EVA Bonus. A Declared EVA Bonus is the Target EVA Bonus times
         the Bonus Multiple.

4.3      Bonus Multiple. The Bonus Multiple is a percentage of EVA Improvement
         compared to Target Improvement as defined by a scale determined by the
         Committee.

4.4      EVA Improvement. The EVA Improvement is the actual EVA for the Plan
         Year minus the actual EVA for the prior Plan Year.

4.5      Targeted Improvement. The Targeted Improvement is the improvement in
         EVA for the Plan Year over the prior Plan Year as periodically set by
         the Committee and is used to assure that a minimum level of improvement
         is achieved from year to year in order to earn target awards.

4.6      Leverage Factor. The Leverage Factor determines the rate of change in
         bonuses as EVA Improvement surpasses or falls short of the Targeted
         Improvement, determined by the Committee from an evaluation of the long
         term performance variability for Guidant and peer companies.

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                                    ARTICLE V

                                MILESTONE BONUSES

In addition to, or instead of, setting bonuses for a Plan Year under the Plan
based on EVA Improvement, the Committee may determine other Milestones.
Milestones may be measured in terms of an absolute measure or relative to a
designated peer group or index of comparable companies. The Milestone may be
tied to performance of the Company or any subsidiary, division or business unit,
or any combination thereof. For any Milestone-based bonus, the Committee will
set a "Target Milestone Bonus" for the Plan Year. The actual bonus amount,
referred to as the "Declared Milestone Bonus," is paid out in the manner
provided below in Article VI.

5.1      Target Milestone Bonus. The Target Milestone Bonus will be determined
         according to a schedule determined by the Committee that associates
         levels of Milestone achievement with a specific dollar amount of Target
         Milestone Bonus. If a Participant has a change in job responsibilities
         during a Plan Year, the Committee has the discretion to change the
         Participant's Milestone or Target Milestone Bonus and may calculate the
         Declared Milestone Bonus based on pro-rated achievement of the
         different Milestones in effect during the Plan Year.

5.2      Declared Milestone Bonus. A Declared Milestone Bonus is determined in
         accordance with the schedule of Target Milestone Bonuses approved by
         the Committee, which may provide for a partial bonus payment for
         partial achievement of a Milestone and additional bonus payments if a
         Milestone is exceeded.

                                   ARTICLE VI

                               PLAN ADMINISTRATION

6.1      Time of Payment. Payment of the Declared Bonus will be made before
         March 1 of the year following the Plan Year. Payments under any
         deferred compensation plan will be eligible for deferral as may be
         allowed by such plan.

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6.2      Certification of Results. Before any amount is paid under the Plan, the
         Committee shall certify the calculation of EVA and other Milestones for
         the Plan Year and the satisfaction of all other material terms of the
         calculation of the Declared Bonus.

6.3      New Hires, Promotions. New hires or individuals promoted who are first
         selected for participation by the Committee effective on a date other
         than January 1 will participate on a pro-rata basis in their first year
         of participation, based on the Declared Bonus determined for the Plan
         Year, pro-rated for that period of the year during which the
         Participant was selected for participation in the Plan.

6.4      Termination of Employment. If a Participant ceases employment with the
         Company before the end of a Plan Year (or later, as may be determined
         by the Committee) for reasons other than Retirement, Disability or
         death, the Participant shall receive no bonus for that Plan Year.

6.5      Retirement, Disability or Death. If a Participant ceases employment
         with the Company because of Retirement, Disability or death, the
         Participant or personal representative, as the case may be, shall
         receive full payment of his or her bonus based on the Declared Bonus
         determined for the Plan Year but pro-rated for that period of the year
         during which the Participant was an active employee of the Company.

                                   ARTICLE VII

                                   LIMITATIONS

7.1      No Continued Employment. Neither the establishment of the Plan nor the
         grant of an award hereunder shall be deemed to constitute an express or
         implied contract of employment of any Participant for any period of
         time or in any way abridge the rights of the Company to determine the
         terms and conditions of employment or to terminate the employment of
         any employee with or without notice or cause at any time.

7.2      No Vested Rights. Except as expressly provided herein, no employee or
         other person shall have any claim of right (legal, equitable, or
         otherwise) to any award, allocation, or distribution or any right,
         title, or vested interest in any bonus amounts prior to payment and no
         officer or employee of

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         the Company or any other person shall have any authority to make
         representations or agreements to the contrary. No interest conferred
         herein to a Participant shall be assignable or subject to claim by a
         Participant's creditors.

7.3      Non-alienation. Except as provided in Subsection 6.1, no Participant or
         other person shall have any right or power, by draft, assignment, or
         otherwise, to mortgage, pledge or otherwise encumber in advance any
         payment under the plan, and every attempted draft, assignment, or other
         disposition thereof shall be absolutely void.

                                  ARTICLE VIII

                               COMMITTEE AUTHORITY

8.1      Authority to Interpret and Administer. Except as otherwise expressly
         provided herein, full power and authority to interpret and administer
         this Plan shall be vested in the Committee. The Committee may from time
         to time make such decisions and adopt such rules and regulations for
         implementing the Plan as it deems appropriate for any Participant under
         the Plan. Any decision taken by the Committee arising out of or in
         connection with the construction, administration, interpretation and
         effect of the Plan shall be final, conclusive and binding upon all
         Participants and any person claiming under or through Participants. The
         Committee may, to the extent it deems appropriate, make adjustments to
         the calculation of EVA or other Milestone to exclude the effect of
         acquisitions or divestitures, or other unusual or unanticipated charges
         or credits.

8.2      Committee Discretion to Revise Rates and Amounts. The Committee may, in
         its sole discretion, revise the various rates, amounts and percentages
         provided in the Plan from time to time (including, without limitation,
         with respect to each of the foregoing defined terms), provided that the
         methods and assumptions used in making such determinations shall be
         established and applied by the Committee on the basis of reasonable,
         objective criteria that are applied in a uniform manner from Plan Year
         to Plan Year.

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8.3      Financial and Accounting Terms. Except as otherwise provided, financial
         and accounting terms, including terms defined herein, shall be
         determined by the Committee in accordance with generally accepted
         accounting principles and as derived from the audited consolidated
         financial statements of the Company, prepared in the ordinary course of
         business.

                                   ARTICLE IX

                               GENERAL PROVISIONS

9.1      Withholding of Taxes. The Company shall have the right to withhold the
         amount of taxes which in the sole determination of the Company are
         required to be withheld under law with respect to any amount due or
         payable under the Plan.

9.2      Expenses. All expenses and costs in connection with the adoption and
         administration of the Plan shall be borne by the Company.

9.3      No Prior Right or Offer, No Right to Employment. Except and until
         expressly granted pursuant to the Plan, nothing in the Plan shall be
         deemed to give any employee any contractual or other right to
         participate in the benefits of the Plan. No award to any such
         Participant in any Plan Year shall be deemed to create a right to
         receive any award or to participate in the benefits of the Plan in any
         subsequent Plan Year.

9.4      Rights Personal to Employee. Any rights provided to an employee under
         the Plan shall be personal to such employee, shall not be transferable,
         except by will or pursuant to the laws of descent or distribution, and
         shall be exercisable during his or her lifetime, only by such employee,
         or a court-appointed guardian for the employee.

9.5      Non-Allocation of Award. In the event of a suspension of the Plan in
         any Plan Year, as described in Section 9.7, no awards under the Plan
         for the Plan Year during which such suspension occurs shall affect the
         calculation of awards for any subsequent period in which the Plan is
         continued.

9.6      Notices. Any notice to be given to the Company or Committee pursuant to
         the provisions of the Plan shall be in writing and directed to
         Secretary, Guidant Corporation, P.O. Box 44906, Indianapolis, IN 46244.

<PAGE>

9.7      Amendment and Termination. This Plan may be amended, suspended or
         terminated at any time at the discretion of the Board of Directors of
         Guidant Corporation, and may, except for this Section 9.7, be amended
         at any time by the Committee.

9.8      Governing Law. This Plan shall be governed by and construed in
         accordance with the provisions of the laws of the State of Indiana.<PAGE>

                                                                   EXHIBIT 10.27

                    THE GUIDANT EXECUTIVE DEFERRED BONUS PLAN

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                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                     Page
                                                                     ----
<S>                                                                  <C>
Section 1. Restatement of the Plan                                     1

Section 2. Definitions                                                 1

Section 3. Participation                                               4
3.1        Bonuses                                                     4
3.2        Company Awards                                              4
3.3        Prior Plan Amounts                                          5

Section 4. Individual Account                                          5

Section 5. Accrual of Company Credit                                   5

Section 6. Payment                                                     6
6.1        Payment Options                                             6
6.2        Payment Upon Death                                          7
6.3        Resignation or Dismissal                                    8
6.4        Payment on Unforeseeable Emergency                          8
6.5        Cash Payments                                               9

Section 7. Prohibition Against Transfer                                9

Section 8. Participant's Rights Unsecured                              9
8.1        Unsecured General Creditor                                  9
8.2        Trust Fund                                                  9

Section 9. Administration                                             10
9.1.       Committee                                                  10
9.2.       Powers of the Committee                                    10
9.3.       Finality of Committee Determinations                       11
9.4.       Claims Procedures                                          11
9.5.       Withholding                                                11
9.6.       Incapacity                                                 12
9.7.       Legal Holidays                                             12

Section 10.          No Employment Rights                             12

Section 11.          Amendment, Suspension, Termination               12

Section 12.          Applicable Law                                   13

Section 13.          Effective Date                                   13
</Table>

                                      -i-

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                    THE GUIDANT EXECUTIVE DEFERRED BONUS PLAN

SECTION 1.  RESTATEMENT OF THE PLAN.

         Guidant established for the benefit of Participants an unfunded plan of
voluntarily deferred compensation known as "The Guidant Executive Deferred
Compensation Plan," which was originally effective September 25, 1995. The Plan
is hereby amended and restated in its entirety, effective as of January 1, 1999,
and is renamed, effective January 1, 2000, "The Guidant Executive Deferred Bonus
Plan." The Plan is maintained primarily for the purpose of providing deferred
compensation for a select group of management or highly compensated employees.

SECTION 2.  DEFINITIONS.

         When used in the Plan, the following terms shall have the definitions
set forth in this Section 2:

         2.1. Account. The term "Account" means the bookkeeping account
established for a Participant pursuant to Section 4.

         2.2. Beneficiary. The term "Beneficiary" means the beneficiary or
beneficiaries (including any contingent beneficiary or beneficiaries) designated
pursuant to Subsection 6.2.

         2.3. Board of Directors. The term "Board of Directors" means the Board
of Directors of the Company.

         2.4. Bonus. The term "Bonus" means a payment to which an Eligible
Employee is entitled pursuant to an incentive compensation plan of Guidant,
including the Economic Value Added (EVA) Incentive Pay Plan, or any similar
incentive compensation plan as may be designated by the Committee from time to
time.

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<PAGE>

         2.5. Bonus Year. The term "Bonus Year" means each calendar year after
1995 in which a Bonus deferred under the Plan is earned by a Participant.

         2.6. Committee. The term "Committee" means the committee designated in
Subsection 9.1 to administer the Plan.

         2.7. Company. The term "Company" means Guidant Corporation.

         2.8. Company Contribution. The term "Company Contribution" means any
additional amount that Guidant has awarded to a Participant under Subsection
3.2.

         2.9 . Company Credit. The term "Company Credit" means, with respect to
a calendar quarter, an amount computed and credited to Participants' Accounts
pursuant to Section 5 at a rate that is two percent (2%) above the "bank prime
loan" rate reported in the Federal Reserve Statistical Release (Report H.15) for
the first business day of the quarter.

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

         2.11. Eligible Employee. The term "Eligible Employee" means a
management or highly compensated employee of the Company who is designated by
the Committee as eligible to defer under the Plan any Bonus earned in the
following Bonus Year.

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<PAGE>

         2.12. Guidant. The term "Guidant" means the Company and its
subsidiaries and affiliates that adopt the Plan.

         2.13. Participant. The term "Participant" means an Eligible Employee
who has elected to defer all or part of a Bonus pursuant to the Plan in
accordance with Subsection 3.1, or an Eligible Employee who has amounts credited
to his Account under Subsection 3.2 or 3.3.

         2.14. Plan. The term "Plan" means "The Guidant Executive Deferred Bonus
Plan" as set forth in this instrument, as it may be amended from time to time.

         2.15. Points. A Participant shall be deemed to have accumulated one
Point for every year of his age and for each Year of Service credited to him.

         2.16 Retirement. The term "Retirement" means the Participant's
termination of employment with Guidant, but only if that termination occurs on
or after the date when the Participant has (1) attained age 65, (2) attained age
55 and accumulated ten (10) Years of Service, or (3) if the Participant is
entitled to receive Transition Benefits, accumulated 80 Points.

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

         2.18. Year of Service. The term "Year of Service" means 365 days of
"Service," as defined in section 1.01(23) of The Guidant Employee Savings and
Stock Ownership Plan.

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<PAGE>

SECTION 3.  PARTICIPATION.

                  3.1. Bonuses. Prior to the beginning of each Bonus Year, the
Committee shall select those Eligible Employees who may elect to defer Bonuses
pursuant to the Plan. Upon selection by the Committee and before the beginning
of the applicable Bonus Year, an Eligible Employee may defer the receipt of a
Bonus pursuant to the Plan by filing a written election with the Committee (or
its designee), in a form satisfactory to the Committee, that does the following:

                  (a) defers payment of a designated amount (of One Thousand
         Dollars ($1,000) or more) or a percentage of the Bonus (in any
         increment of five (5) percent), if any, to be earned in the Bonus Year,
         and

                  (b) specifies the payment option selected by the Participant
         pursuant to Subsection 6.1.

                  The amount deferred may not exceed the amount of the Bonus.

                  Except as provided in Subsections 6.1 and 6.3, any election
made pursuant to this Section 3 (including any election made pursuant to
Paragraphs (a) and (b) above) with respect to a Bonus Year shall be irrevocable
when made.

                  Selection of an Eligible Employee for deferral of a Bonus
during one Bonus Year does not confer upon the Eligible Employee a right to
defer Bonuses for subsequent Bonus Years. The Eligible Employees who shall be
permitted to defer Bonuses pursuant to the Plan shall be selected annually by
the Committee.

                  3.2. Company Awards. In its sole discretion, Guidant may award
an additional amount to any Participant at any time. Any such award shall be
specified in a written notice to the Participant. Any amount awarded under this
subsection shall be treated the same as any other amounts held under this Plan.
The Participant shall specify the payment option with respect to the awarded
amount pursuant to Subsection 6.1 promptly upon receipt of notice of the amount
awarded.

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<PAGE>

         3.3 Prior Plan Amounts. Compensation previously deferred by a
Participant (and interest credited on those amounts) under The Lilly Deferred
Compensation Plan shall be credited to the Participant's Account as of December
31, 1995, and credited with the Company Credit for periods after that date.
Amounts credited under this Subsection shall be treated the same as any other
amounts held under this Plan. A Participant credited with an amount under this
Subsection shall specify the payment option with respect to that amount pursuant
to Subsection 6.1 within 30 days of the date specified in the preceding
sentence.

SECTION 4.  INDIVIDUAL ACCOUNT.

         The Committee shall maintain a bookkeeping account in the name of each
Participant. In the year following each Bonus Year, each Participant's Account
shall be credited with the amount that the Participant has elected to defer
under Subsection 3.1, as of the date on which the deferred amount is reported to
the Committee's designated recordkeeper. Each Participant shall be given an
annual statement, as of December 31 of each year, showing for that year (a) the
amount of Bonus deferred, (b) the amount of the Company Credit to the
Participant's Account, (c) any other amounts credited to the Participant's
Account, and (d) the total amount of the Participant's Account as of the end of
the year.

SECTION 5.  ACCRUAL OF COMPANY CREDIT.

         The Treasurer of the Company shall determine the applicable rate of
Company Credit as of the first business day of each quarter of each calendar
year. This rate shall be effective for that calendar quarter and is defined as
two percent (2%) above the "bank prime loan" rate as reported in the Federal
Reserve Statistical Release (Report H.15) for the applicable date. Prior to
October 1, 1999, the Company Credit shall be calculated on the basis of a
365/366-day year

                                      -5-
<PAGE>

and shall be credited daily to the Participant's Account and
compounded quarterly. Effective October 1, 1999, the Company Credit shall be
calculated on the basis of a 365/366 day year and shall accrue and compound
daily on the daily balance of the Participant's Account. The daily balance of
the Participant's Account shall reflect additions and withdrawals as of the
effective date of each transaction.

SECTION 6.  PAYMENT.

                  6.1 Payment Options. A Participant shall elect a payment
option from the payment options described below. The payment options from which
the Participant may choose are the following:

                  (a) a lump sum payable in January of the second calendar year
         following the calendar year in which the Participant's employment
         terminates by reason of Retirement or Disability;

                  (b) annual installments over a period of two to ten years (as
         specified by the Participant) commencing in January of the second
         calendar year following the calendar year in which the Participant's
         employment terminates by reason of Retirement or Disability; or

                  (c) a lump sum payable in January of the calendar year
         irrevocably designated by the Participant at the time he files his
         written election under Subsection 3.1, provided that such calendar year
         is no earlier than the second calendar year after the year in which the
         Bonus was determined.

                  Guidant shall pay the aggregate amounts deferred, together
with a proportionate part of the aggregate Company Credit accrued to the date
(or dates) of payment, in accordance with the payment option elected. If a
payment option described in Paragraph (a) or (c) above has been elected, the
amount of the lump

                                      -6-
<PAGE>

sum shall be equal to the amount credited to the Participant's Account as of the
date of the payment (including any Company Credit allocated to the Participant's
Account). If the payment option described in Paragraph (b) above has been
elected, the amount of each installment shall be equal to the amount credited to
the Participant's Account as of the date of the installment payment (including
any Company Credit allocated to the Participant's Account) divided by the number
of installment payments that have not yet been made. If the Participant fails to
elect a payment option, the amount credited to the Participant's Account shall
be distributed in a lump sum in accordance with the payment option described in
Paragraph (a) above. Notwithstanding the foregoing, if the amount credited to
the Participant's Account is less than $25,000 at any time following the year in
which the Participant's employment terminates by reason of Retirement or
Disability, the Committee shall pay out the amount credited to the Participant's
Account in a lump sum.

         6.2 Payment Upon Death. Within a reasonable period of time following a
Participant's death, the balance, if any, credited to the Participant's Account
shall be paid in a lump sum to the Participant's Beneficiary. For purposes of
this Subsection 6.2, the balance credited to the Participant's Account shall be
determined as of the date of payment. A Participant may designate his
Beneficiary, in writing, in a form acceptable to the Committee, and filed with
the Committee (or its designee) before the Participant's death. A Participant
may, before the Participant's death, revoke a prior designation of Beneficiary
and may also designate a new Beneficiary without the consent of the previously
designated Beneficiary, provided that the revocation and new designation (if
any) are in writing, in a form acceptable to the Committee, and filed with the
Committee (or its designee) before the Participant's death. If the Participant
does not designate a Beneficiary, or if no designated Beneficiary survives the
Participant, any amount

                                      -7-
<PAGE>

not distributed to the Participant during the Participant's life shall be paid
to the Participant's estate in a lump sum in accordance with this Subsection
6.2.

                  6.3. Resignation or Dismissal. Within a reasonable time
following termination of a Participant's employment by resignation or dismissal,
the balance in the Participant's Account shall be paid in a lump sum to the
Participant. For purposes of this Subsection 6.3, the balance in the
Participant's Account shall be determined as of the date of payment (and shall
include any Company Credit allocated to the Participant's Account).

                  6.4. Payment on Unforeseeable Emergency. The Committee may, in
its sole discretion, direct payment to a Participant of all or of any portion of
the Participant's Account balance, notwithstanding an election under Subsection
6.1, at any time that the Committee determines that the Participant has an
unforeseeable emergency and then only to the extent reasonably necessary to meet
the emergency. For purposes of this rule, "unforeseeable emergency" means severe
financial hardship to the Participant resulting from a sudden and unexpected
illness or accident of the Participant or of a dependent of the Participant,
loss of the Participant's property due to casualty, or other similar
extraordinary and unforeseeable circumstances arising as a result of events
beyond the control of the Participant. The circumstances that will constitute an
unforeseeable emergency will depend upon the facts of each case, but in any
case, payment may not be made to the extent that the hardship is or may be
relieved by any of the following:

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

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

                  (c) By cessation of deferrals under the Plan.

                                      -8-
<PAGE>

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

         In the event that the Committee approves a payment pursuant to this
Section, the Participant will not be permitted to defer any portion of the Bonus
earned with respect to the Bonus Year in which the withdrawal occurred.

         6.5 Cash Payments. All payments under the Plan shall be made in cash.

SECTION 7.  PROHIBITION AGAINST TRANSFER.

         The right of a Participant to receive payments under the Plan may not
be transferred except by will or applicable laws of descent and distribution. A
Participant may not assign, sell, pledge, or otherwise transfer any amount to
which he is entitled under the Plan prior to payment of that amount to the
Participant.

SECTION 8.  PARTICIPANT'S RIGHTS UNSECURED.

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

         8.2. Trust Fund. Guidant shall be responsible for the payment of
benefits provided under the Plan. At its discretion, Guidant may establish one
or more trusts, with such trustees as the Board of Directors may approve, for
the

                                      -9-
<PAGE>

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

SECTION 9.  ADMINISTRATION.

                  9.1. Committee. The Plan shall be administered by the
Management Development and Compensation Committee of the Board of Directors, the
members of which shall be selected by the Board of Directors from among its
members. No member of the Committee may be a salaried employee of the Company.

                  9.2. Powers of the Committee. The Committee's powers shall
include, but not be limited to, the power to do the following:

                  (i) select Eligible Employees for participation in the Plan;

                  (ii) interpret, with discretionary authority, the terms and
         provisions of the Plan and determine, with discretionary authority, any
         and all questions arising under the Plan, including, without
         limitation, the right to remedy possible ambiguities, inconsistencies,
         or omissions by a general rule or particular decision;

                  (iii) adopt rules consistent with the terms of the Plan;

                  (iv) appoint persons to carry out administrative and
         recordkeeping requirements; and

                                      -10-
<PAGE>

                  (v) limit the deferrals of executive officers to assure that
         Guidant has sufficient funds to cover taxes, benefit payments, and
         other necessary or appropriate deductions.

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

                  9.4. Claims Procedures. Any person making a claim for benefits
under the Plan shall submit the claim in writing to the Committee. If the
Committee denies the claim in whole or in part, it shall issue to the claimant a
written notice explaining the reason for the denial (with specific reference to
the Plan provision(s) on which it is based) and identifying any additional
information or documentation that might enable the claimant to perfect the
claim. The claimant may, within 60 days of receiving a written notice of denial,
submit a written request for reconsideration to the Committee, together with a
written explanation of the basis of the request. The Committee shall consider
any such request and shall provide the claimant with a written decision together
with a written explanation of the reason(s) for the decision (with reference to
the specific Plan provision(s) on which the decision is based). All
interpretations, determinations, and decisions of the Committee in respect of
any claim shall be final and conclusive.

                  9.5. Withholding. The Company shall have the right to deduct
from all payments under the Plan any taxes required by law to be withheld from
such payments. The recipients of those payments shall bear responsibility for
all taxes on amounts paid under the Plan to the extent that taxes are not
withheld from those amounts, irrespective of whether withholding is required.

                                      -11-
<PAGE>

         9.6. Incapacity. If the Committee determines that any person entitled
to benefits under the Plan is unable to care for his or her affairs because of
illness or accident, then any payment due may be paid for the benefit of that
person to the person's spouse, parent, brother, sister, or other party deemed by
the Committee to have incurred expenses for that person unless a duly qualified
guardian or other legal representative has been appointed, in which case,
payment shall be made to that guardian or legal representative.

         9.7. Legal Holidays. If any day on (or on or before) which action under
the Plan must be taken falls on a Saturday, Sunday, or legal holiday, that
action may be taken on (or on or before) the next succeeding day that is not a
Saturday, Sunday, or legal holiday; provided that this Subsection 9.7 shall not
permit any action that must be taken in one calendar year to be taken in any
subsequent calendar year.

SECTION 10.  NO EMPLOYMENT RIGHTS.

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

SECTION 11.  AMENDMENT, SUSPENSION, AND TERMINATION.

         The Board of Directors shall have the right to amend, suspend, or
terminate the Plan at any time. The Committee shall also have the right to amend
the Plan, except for Subsection 9.1 and this Section 11. However, no amendment
of the Plan shall adversely affect the rights of any Participant or Beneficiary
to any amount credited to his or her Account at the time of the amendment, but
this shall not prevent the Company from modifying payment options under
Subsection 6.1.

                                      -12-
<PAGE>

SECTION 12.  APPLICABLE LAW.

         The Plan shall be governed by, and construed in accordance with the
laws of the State of Indiana, except to the extent that those laws are preempted
by federal law.

SECTION 13.  EFFECTIVE DATE.

         This restated Plan is effective as of January 1, 1999.

                                      -13-
<PAGE>

                         FIRST AMENDMENT TO THE GUIDANT
                          EXECUTIVE DEFERRED BONUS PLAN
                      (RESTATED EFFECTIVE JANUARY 1, 1999)

         This First Amendment to The Guidant Executive Deferred Bonus Plan
(Restated Effective January 1, 1999) has been duly adopted by Guidant
Corporation effective as of January 1, 2003.

                                    RECITALS

         A. Guido Neels became an Eligible Employee on January 1, 2003, when he
became Group Chairman, Office of the President. Under the terms of the Plan then
in effect, however, an Eligible Employee must be designated as such by the
Compensation Committee prior to the beginning of a Bonus Year to be able to
elect pursuant to the Plan to defer the receipt of all or any portion of a Bonus
for that Bonus Year. Accordingly, because Mr. Neels first became an Eligible
Employee on January 1, 2003, the terms of the Plan then in effect did not permit
him to elect to defer a portion of his Bonus for 2003.

         B. The Committee determined that Mr. Neels should be given an
opportunity to elect to make a deferral election under the Plan for any Bonus he
may earn in 2003, provided that Mr. Neels made such an election within 45 days
of the date on which he first became an Eligible Employee. A resolution to that
effect, effectively amending the Plan as of January 1, 2003, was duly adopted by
the Committee.

         C. This Amendment reflects and memorializes the change to the Plan
effected by the Committee's resolution.

                                    AMENDMENT

         Effective January 1, 2003, the following new Section 3.4 is added to
the Plan, to read as follows:

                                      -14-
<PAGE>

Section 3.4. 2003 Bonus Deferral Election for Guido Neels. Notwithstanding any
other provision of the Plan, within 45 days of January 1, 2003, the date on
which he first became an Eligible Employee, Guido Neels may make a written
election, in a form satisfactory to the Committee, to defer payment of a
designated amount (of One Thousand Dollars ( $1,000) or more) or a percentage
(in any increment of five (5) percent) of the Bonus, if any, to be earned by him
in the 2003 Bonus Year. The election will otherwise be subject to the rules
described in Section 3.1.

                                      -15-

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