Document:

SEC Consent Order

 EXHIBIT 10S 
  

UNITED STATES DISTRICT COURT 
 FOR
THE DISTRICT OF NEW JERSEY 
  
 UNITED STATES SECURITIES AND 

EXCHANGE COMMISSION, 
  
 Plaintiff, 
  
 v. 
  
 BRISTOL-MYERS SQUIBB COMPANY, 
  
 Defendant. 
  
 CONSENT OF DEFENDANT BRISTOL-MYERS SQUIBB COMPANY 
  
 1. Defendant Bristol-Myers Squibb Company (BMS, Bristol-Myers or the Company) acknowledges having been served with the Complaint of the United States
Securities and Exchange Commission (Commission) in this action, enters a general appearance, admits the Court’s jurisdiction over it and over the subject matter of this action and waives the filing of an Answer. 
  
 2. Bristol-Myers, without admitting or denying the allegations of the
Complaint, except as to personal and subject matter jurisdiction, which Bristol-Myers admits, hereby consents to the entry of the Final Judgment of Permanent Injunction and Other Relief Against Bristol-Myers (Final Judgment) in the form attached
hereto and incorporated by reference herein, which, among other things: permanently restrains and enjoins Bristol-Myers from violating Sections 17(a)(1), (a)(2) and (a)(3) of the Securities Act of 1933 (Securities Act) [15 U.S.C.
§§77q(a)(1), (a)(2) and (a)(3)]; Sections 10(b), 13(a), 13(b)(2)(A), 13(b)(2)(B) and 13(b)(5) of the Securities Exchange Act of 1934 (Exchange Act) [15 U.S.C. §§78j(b), 78m(a), 78m(b)(2)(A), 78m(b)(2)(B) and 78m(b)(5)] and Rules 10b-5, 12b-20, 13a-l, 13a-13, and 13b2-l
promulgated thereunder [17 C.F.R. §§240.10b-5, 240.12b-20, 240.13a-l, 240.13a-13 and 240.13b2-l]; orders
it to pay disgorgement of $1; orders it to pay $50,000,000 into a fund to be used for the benefit of Bristol-Myers shareholders (the Shareholder Fund); and orders it to pay a civil penalty of $100,000,000 (the Civil Penalty) pursuant to Section
20(d) of the Securities Act [15 U.S.C. §77t(d)] and Section 21(d)(3) of the Exchange Act [15 U.S.C. §78u(d)(3)]. 
  
 3. Within 7 days of entry of an order of Final Judgment in this action, Bristol-Myers agrees to deposit the $1 of disgorgement, the $100,000,000 Civil
Penalty and the $50,000,000 Shareholder Fund payment into the registry of this Court. Bristol- Myers agrees to send a photocopy of these payments to the Commission addressed to the Midwest Regional Office, Daniel R. Gregus, Assistant Regional
Director, 175 West Jackson Boulevard, Suite 900, Chicago, Illinois 60604. These monies may be distributed pursuant to the Fair Fund provisions of Section 308(a) of the Sarbanes-Oxley Act of 2002. 
  
 4. Bristol-Myers acknowledges that the Civil Penalty and the payment to the
Shareholder Fund may be distributed pursuant to the Fair Fond provisions of Section 308(a) of the Sarbanes-Oxley Act of 2002. Regardless of whether any such Fair Fund distribution is made, Bristol-Myers will not seek preferential tax treatment for
the Civil Penalty or the Shareholder Fund payment. To preserve the deterrent effect of the Civil Penalty, Bristol-Myers agrees that it shall not, in any Related Investor Action, benefit from any offset or reduction of any investor’s claim by
the amount of any Fair Fund distribution to such investor in this action that is proportionately attributable to the Civil Penalty paid by Bristol-Myers (Penalty Offset). Bristol-Myers also agrees that it shall not, in any Related Investor Action,
benefit from any offset or reduction of any investor’s claim by the amount of any distribution to such investor in this action that is proportionately attributable to the Shareholder Fund payment (Shareholder Fund Offset). If the court in any
Related Investor Action grants such an offset or reduction, Bristol-Myers agrees that it shall, within 30 days after entry of a final order granting the offset or reduction, notify the Commission’s counsel in the current action and pay the
amount of the Penalty Offset and/or Shareholder Fund Offset to the United States Treasury or to a Fair Fund, as the Commission directs. Such a payment shall not be 

  

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deemed an additional civil penalty and shall not be deemed to change the amount of the Civil Penalty imposed in this action. For purposes of this paragraph, a
“Related Investor Action” means a private damages action brought against Bristol-Myers by or on behalf of one or more investors based on substantially the same facts as alleged in the Complaint in this action. 
  
 5. Bristol-Myers agrees that it shall not seek or accept, directly or
indirectly, reimbursement or indemnification from any source, including but not limited to payment made pursuant to any insurance policy, with regard to the Civil Penalty that Bristol-Myers will pay pursuant to the Final Judgment, or with regard to
the Shareholder Fund payment, regardless of whether such amounts or any part thereof are otherwise used for the benefit of investors. Bristol-Myers further agrees that it shall not claim, assert, or apply for a tax deduction or tax credit with
regard to any federal, state, or local tax for the Civil Penalty that Bristol-Myers will pay pursuant to the Final Judgment, or for the Shareholder Fund payment, regardless of whether such amounts or any part thereof are otherwise used for the
benefit of investors. 
  
 6. Bristol-Myers has implemented certain
undertakings and agrees to implement certain additional undertakings including: 
  
 a. Limit sales of pharmaceutical products in such a way that wholesalers can work down current wholesaler inventory that exceeds
approximately one month of inventory on hand and limit future sales of all products sold to wholesalers based on expected demand or on amounts that do not exceed approximately one month of inventory on hand, without making a timely public disclosure
of any change in practice. Bristol-Myers may, however, with timely public disclosure, make sales of pharmaceutical products to wholesalers that cause wholesaler inventory levels to temporarily rise above expected demand or above approximately one
month of inventory on hand for a product or products when Bristol-Myers: increases the wholesale list price of that product; launches a new product; or, pursuant to the terms of an inventory management agreement, stocks a new wholesaler customer or
stocks an existing wholesaler’s new warehouse at the request of that wholesaler. 
  
 b. Assure that disclosures made by Bristol-Myers to its shareholders and the investment community are accurate and complete, that such
disclosures fairly present Bristol-Myers’ financial condition and results of operations, and that such disclosures are made on a timely basis, as required by applicable laws and regulations. To this end, Bristol-Myers has undertaken or will
undertake certain actions, including, but not limited to, the following: 
  
 i. implement a formal review and certification process of its annual and quarterly reports filed with the Commission; 
  
 ii. form a business risk and disclosure group which includes senior management, the Independent Advisor and Counsel to the Independent
Advisor, as described below; and 
  
 iii.
identify and implement actions to improve the effectiveness of its disclosure controls and procedures and internal controls, including plans to enhance its resources and training with respect to financial reporting and disclosure responsibilities,
and to review such actions with its Audit Committee and independent auditors. 
  
 c. Assure that internal controls are in place to prevent recurrences of the accounting that resulted in the Company having to restate its prior financial statements. To this end, Bristol-Myers has undertaken or will
undertake certain actions, including, but not limited to, the following: 
  
 i. retain an outside consultant to comprehensively study and help re-engineer Bristol-Myers’ accounting and financial reporting processes; 
  
 ii. publicly disclose any sales incentives offered to wholesalers for the purpose of inducing them to
purchase products in excess of expected demand; 
  
 iii. recognize revenue from the sale of its products to wholesalers in accordance with Generally Accepted Accounting Principles (GAAP) and, in particular, SAB 101; 
  
 iv. establish acquisition, divestiture and restructuring reserves in accordance with GAAP solely related to
quantifiable or specific categories of liabilities supporting the reserves, and not for the purpose of having the reserve amounts available to increase income in subsequent periods; 
  

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v. accrue for Medicaid and prime vendor rebates liabilities,, in accordance with GAAP, by estimating and reserving for such liabilities
at the time of sale, and establish testing procedures to assess the reasonableness of the Company’s Medicaid and prime vendor rebate accrual balances that take into account excess wholesaler inventory levels; 
  
 vi. account for product returns by estimating the amounts of
future returns and accruing such estimates in the period the products are sold; 
  
 vii. account for acquisition or licensing of patent rights in accordance with GAAP; and 
  
 viii. account for declared dividends in accordance with
GAAP. 
  
 d. Change its budget process, to ensure
that it gives appropriate weight to inputs that come from the bottom to the top, and not just those that come from
the top to the bottom, and adequately documents that process. 
  
 e. Provide an effective mechanism, such as a confidential hotline or secure post-office box, of which Bristol-Myers’ customers and third party vendors are aware and which they can use to notify Bristol-Myers of
what they reasonably believe to be evidence that Bristol-Myers’ wholesaler inventory levels do not conform to the requirements of paragraph 6.a. hereof. 
  

f. Provide an effective mechanism, such as a confidential hotline or secure post-office box, of which Bristol-Myers’ employees are
aware and which they can use to notify Bristol-Myers of what they reasonably believe to be evidence that Bristol-Myers’ wholesaler inventory levels do not conform to the requirements of paragraph 6.a. hereof, and/or that Bristol-Myers has made
material misrepresentations or omissions in its financial disclosures, books and records in violation of this Consent. 
  
 g. Bristol-Myers has made personnel changes including: 
  
 i. replacing the Chief Financial Officer, President of the Worldwide Medicines Group and Controller;

  
 ii. creating and filling a new position
entitled Assistant Controller for Financial Compliance and Control who is responsible for Sarbanes-Oxley 404 compliance efforts and monitoring implementation of enhanced financial controls; and 
  
 iii. hiring an experienced securities regulation and
disclosure lawyer who will have a significant role in all of Bristol-Myers’ disclosure responsibilities. 
  
 7. Bristol-Myers agrees to retain, at Bristol-Myers’ expense, the Honorable Frederick B. Lacey, an Independent Advisor, to conduct a review of the
implementation and effectiveness of the internal controls, financial reporting, disclosure processes and related compliance functions discussed in Paragraph 6 of this Consent, and to report directly to the Audit Committee of the Board of Directors
of Bristol-Myers (Audit Committee) and to the staff of the Commission in accordance with the following provisions: 
  
 a. Bristol-Myers agrees that the Independent Advisor’s engagement shall extend through the date that Bristol-Myers’ Form 10-K
for the year ended 2005 is filed with the Commission (the Review Period). Bristol-Myers cannot terminate the Independent Advisor’s engagement at any time but the Independent Advisor may resign at any time, provided that he gives the Commission
30 days notice of his resignation and, prior to the effective date of his resignation, prepares and submits a report to the Commission addressing the issues outlined in Paragraph 7.b. of this Consent. 
  
 b. Bristol-Myers agrees that beginning at the first
quarter-end after the Commission has filed its Complaint in this matter, and by the end of every quarter thereafter during the Review Period, the Independent Advisor will give Bristol-Myers’ Senior Management an opportunity to comment in
writing on a Report by the Independent Advisor concerning Bristol Myers’ compliance with this Consent. After receiving and considering any such comments (which shall be provided promptly to the Independent Advisor), the Independent Advisor will
provide his Report to the Audit Committee and Bristol-Myers’ Senior Management, with a copy issued to the staff
of the Commission (accompanied by any comments received by the Independent Advisor from Bristol-Myers’ Senior Management), on Bristol-Myers’ compliance with the implementation and effectiveness of Bristol-Myers’ internal controls,
financial reporting, disclosure processes and related compliance functions discussed in this Consent. The Report shall also make any additional recommendations necessary to ensure that Bristol-Myers’ internal policies and procedures result in
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that any recommendation is unreasonable, Bristol-Myers may suggest an alternative policy or procedure in writing to the Independent Advisor.
Bristol-Myers agrees that it will attempt in good faith to reach agreement with the independent Advisor as to any policy or procedure recommended by the Independent Advisor as to which there is any dispute. If an agreement between Bristol-Myers and
the Independent Advisor is not reached within 10 days of the issuance of the Independent Advisor’s Report, then the decision of the Independent Advisor will prevail Within 30 days of the issuance of the Independent Advisor’s Report,
Bristol-Myers agrees to submit an affidavit to the Commission staff stating that it has implemented any and all actions recommended or required by the Independent Advisor. 
  
 c. Bristol-Myers agrees that each Report of the Independent Advisor will be subject to the protections from
disclosure set forth in the rules of the Commission, including the protections from disclosure set forth in 5 U.S.C. § 552(b)(8) and 17 C.F.R § 200.80(b)(8), and will not constitute a record, report, statement or data compilation of the Commission under Rule 803(8) of the Federal Rules of Evidence. 
  
 d. Bristol-Myers agrees that separate and apart from his
obligation to submit Reports pursuant to Paragraph 7.b. above, if the Independent Advisor obtains any evidence that may constitute a violation of any provision of the federal securities laws, he shall promptly notify both Bristol-Myers’ Senior
Management and the Audit Committee. The Independent Advisor shall discuss with Senior Management and the Audit Committee the possible violation and Bristol Myers’ plans, if any, to address the possible violation. If, following such discussion, the Independent Advisor still believes that he has obtained evidence that constitutes a violation of the federal
securities laws, then within 30 days of notifying Senior Management and the Audit Committee, the Independent Advisor shall notify the Commission Staff of: (i) the evidence of what he believes to have been a violation of the securities laws; and (ii)
whether he believes that Bristol-Myers’ plans, if any, to address what he believes to have been a violation of the securities laws, are satisfactory. 
  
 e. Bristol-Myers agrees that the Independent Advisor shall sit as an independent member of, and advisor to, Bristol-Myers’ Senior
Management Business Risks and Disclosure Group, (or any group within Bristol-Myers that succeeds to its functions), and he may attend its meetings. Bristol-Myers will give the Independent Advisor the opportunity, at his request, to give a report on
any matter to any meeting of the Board of Directors. All such reports shall be promptly forwarded to the Commission. In addition, Bristol-Myers agrees that the Independent Advisor may attend meetings of the Board of Directors when necessary to
fulfill his obligations and responsibilities under this Consent. Bristol-Myers agrees that it will provide the Independent Advisor with appropriate staff, and complete and unfettered access to the Company’s books and records and personnel, and
me independent authority to carry out his mandate. Access by the Independent Advisor to information that Bristol-Myers considers privileged shall not constitute a waiver of such privilege. 
  
 f. Bristol-Myers agrees that if the Independent Advisor
resigns or is unable to serve the balance of the Review Period, a successor shall be chosen by Bristol-Myers. The choice of successor shall not be someone to whom the Commission staff objects. Bristol-Myers agrees that all provisions in this Consent
that apply to the Independent Advisor shall apply to any Successor Independent Advisor. 
  
 g. Bristol-Myers agrees to compensate an attorney retained by the Independent Advisor who has expertise in securities and disclosure law
and who will serve as counsel to the Independent Advisor (Counsel to the Independent Advisor) and who shall not be someone to whom the Commission staff objects. This engagement will continue for the duration of the Independent Advisor’s
engagement. In addition to his other duties, the Counsel to the Independent Advisor shall sit as an independent member of and advisor to Bristol-Myers’ Senior Management Business Risks and Disclosure Group (or any group within Bristol-Myers that succeeds to its functions). 
  
 h. Bristol-Myers agrees that if the Counsel to the Independent Advisor resigns or is unable to serve the
balance of the Review Period, a successor shall be chosen by the Independent Advisor. The choice of successor shall not be someone to whom the Commission staff objects. Bristol-Myers agrees that all provisions in this Consent that apply to the
Counsel to the Independent Advisor shall apply to any Successor Counsel to the Independent Advisor. 
  
 i. Bristol-Myers agrees to fully cooperate with the Independent Advisor and the Counsel to the Independent Advisor, including, in
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reasonably request and permitting and requiring Bristol-Myers’ employees and agents to supply such information and documents as they may
reasonably request. 
  
 j. Bristol-Myers
acknowledges that it has entered into an agreement to retain the Independent Advisor for the Review Period. Bristol-Myers has provided a copy of that agreement to the Commission. Bristol-Myers agrees that, unless the Commission grants its
permission, for the duration of the Review Period and for two years thereafter, the Independent Advisor, any firm with which the Independent Advisor is affiliated or of which he is a member, and any person engaged to assist the Independent Advisor
in performance of his duties under this Consent and the Final Judgment incorporated by reference, including the Counsel to the Independent Advisor, shall not enter into any other employment, consultant, attorney-client, auditing or other professional or financial relationship with Bristol-Myers, or any of its present or former affiliates,
directors, officers, employees or agents acting in their capacity as such. 
  
 8. Bristol-Myers agrees to waive the entry of findings of fact and conclusions of law pursuant to Rule 52 of the Federal Rules of Civil Procedure. 
  
 9. Bristol-Myers agrees to waive the right, if any, to appeal from the entry of the Final Judgment. 
  
 10. Bristol-Myers agrees that it is entering into this Consent voluntarily
and represents that no threats, offers, promises, or inducements of any kind have been made by the Commission or any member, officer, employee, agent, or representative of the Commission to induce Defendant Bristol-Myers to enter into this Consent.

  
 11. Bristol-Myers agrees that this Consent shall be
incorporated into the Final Judgment with the same force and effect as if fully set forth therein. 
  
 12. Bristol-Myers agrees not to oppose the enforcement of the Final Judgment on the ground, if any exists, that it fails to comply with Rule 65(d) of the
Federal Rules of Civil Procedure and hereby waives any objection based thereon. 
  
 13. Bristol-Myers agrees to waive service of the Final Judgment and agrees that entry of the Final Judgment by the Court and filing with the Clerk of the Court will constitute notice to Defendant Bristol-Myers of its
terms and conditions. Defendant Bristol-Myers further agrees to provide counsel for the Commission, within thirty (30) days after the Final Judgment is filed with the Clerk of the Court, with an affidavit or declaration acknowledging that Defendant
Bristol-Myers has received and read a copy of the Final Judgment. 
  
 14. Bristol-Myers agrees that consistent with 17.C.F.R. §202.5(f), this Consent resolves only the claims asserted against Defendant Bristol-Myers in this civil proceeding. Defendant Bristol-Myers acknowledges that no promise or
representation has been made by the Commission or any member, officer, employee, agent, or representative of the Commission with regard to any criminal liability that may have arisen or may arise from the facts underlying this action or immunity
from any such criminal liability. Defendant Bristol-Myers waives any claim of Double Jeopardy based upon the settlement of this proceeding, including the imposition of any remedy or civil penalty herein. Defendant Bristol-Myers further acknowledges
that the Court’s entry of a permanent injunction may have collateral consequences under federal or state law and the rules and regulations of self-regulatory organizations, licensing boards and other regulatory organizations. Such collateral
consequences include, but are not limited to, a statutory disqualification with respect to membership or participation in, or association with a member of, a self-regulatory organization. This statutory disqualification has consequences that are
separate from any sanction imposed in an administrative proceeding. 
  
 15. Bristol-Myers understands and agrees to comply with the Commission’s policy “not to permit a defendant or respondent to consent to a judgment or order that imposes a sanction while denying the allegations in the complaint or
order for proceedings.” 17 C.F.R.§202.5(e). In compliance with this policy, Defendant Bristol-Myers agrees: (i) not to take any action or to make or permit to be made any public statement denying, directly or indirectly, any allegation in
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Complaint is without factual basis; and (ii) that upon the filing of this Consent, Defendant Bristol-Myers hereby withdraws any papers filed in this action to the
extent that they deny any allegation in the Complaint. If Defendant Bristol-Myers breaches this agreement, the Commission may petition the Court to vacate the Final Judgment and restore this action to its active docket. Nothing in this paragraph
affects Defendant Bristol-Myers’ (i) testimonial obligations or (ii) right to take legal or factual positions in defense of litigation or other legal proceedings in which the Commission is not a party. 
  
 16. Bristol-Myers agrees to hereby waive any rights under the Equal Access to
Justice Act, the Small Business Regulatory Enforcement Fairness Act of 1996, or any other provision of law to pursue reimbursement of attorney’s fees or other fees, expenses or costs expended by Defendant Bristol-Myers to defend against this
action. For these purposes, Defendant Bristol-Myers agrees that it is not the prevailing party in this action since the parties have reached a good faith settlement. 
  
 17. Bristol-Myers agrees that in connection with this action or any related judicial or administrative proceeding or
investigation commenced by the Commission or to which the Commission is a party, Defendant Bristol-Myers: (i) agrees to appear and be interviewed by the Commission staff on matters about which the Commission may reasonably inquire, at such times and
places as the staff requests upon reasonable notice; (ii) will accept service by mail or facsimile transmission of notices or subpoenas issued by the Commission for documents or testimony at depositions, hearings or trials, or in connection with any
related investigation by the Commission staff; (iii) appoints its undersigned attorney as agent to receive service of such notices and subpoenas; (iv) with respect to such notices and subpoenas, waives the territorial limits on service contained
within Rule 45 of the Federal Rules of Civil Procedure and any applicable local rules, provided that the party requesting the testimony reimburses Defendant Bristol-Myers’ travel, lodging, and subsistence expenses at the then-prevailing United
States Government per diem rates; and (v) consents to personal jurisdiction over it in any United States District Court for purposes of enforcing any such subpoena. 
  
 18. Bristol-Myers agrees that the Commission may present the Final Judgment to the Court for signature and entry without
further notice. 
  
 19. Bristol-Myers agrees that
this Court shall retain jurisdiction over this matter for the purpose of enforcing the terms of the Final Judgment and this Consent. 
  

	
	Accepted by Defendant Bristol-Myers Squibb Company:
	
	 /s/ Peter R. Dolan

	
	 Subscribed and Sworn to Before me

	
	 this 5th day of May, 2004

  

											
	SEAL	 	Notary Public	 	 	 	 SANDRA LEUNG

	 	 	My Commission expires:	 	 	 	 Notary Public, State of New York

	 	 	 /s/ Sandra Leung
	 	 	 	 No. 81-4847540
 Qualified in New York County
 Commission Expires December 31, 2005

  

					
	Approved as to form:	 	 	 	 
			
	 /s/ Evan R. Chesler
	 	 	 	  
	 Evan R. Chesler
	 	 	 	 
	 Attorney for Bristol-Myers Squibb Company
	 	 	 	 Dated: May 5, 2004

  

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	Accepted by Plaintiff U.S. Securities and Exchange Commission:
	
	 /s/ Steven L. Klawans

	 Steven L. Klawans

  

					
	 Alexander T. Moore
	 	 	 	 
	 One of the Attorneys for Plaintiff
	 	 	 	 
	 175 West Jackson Blvd., Suite 900
	 	 	 	 
	 Chicago, IL 60604
	 	 	 	 Dated: May 6, 2004

  

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 7Form of Non-Qualified Stock Option Agreement

 EXHIBIT 10T 
  

Bristol-Myers Squibb Company 
  
 2002 STOCK INCENTIVE PLAN 
  
 NONQUALIFIED STOCK OPTION AGREEMENT 
  
 Bristol-Myers Squibb Company (the “Company”) has granted you an option to purchase a number of shares of the Common Stock of Bristol-Myers
Squibb Company, (the “Option”), at the specified price set forth in the above Grant Summary. The Expiration Date of the grant is set forth above. This grant is subject in all respects to the terms, definitions and provisions of the
Bristol-Myers Squibb Company 2002 Stock Incentive Plan (the “Plan”) adopted by the Company. 
  
 This Option is granted upon and subject to the following terms and conditions: 
  

	1.	Vesting Schedule. You must remain in the continuous employment of the Company or one of its subsidiaries (the “Company”) for a period of one-year following the date
of this grant before you are permitted to exercise any portion of the Option. Thereafter, except as specifically set forth below, this Option may be exercised in the following manner: (a) only to the extent of 25 percent of the number of shares to
which this Option applies on or after the first anniversary and prior to the second anniversary of the date of grant hereof; (b) only to the extent of 50 percent of the number of shares to which this Option applies on or after the second anniversary
and prior to the third anniversary of the date of grant hereof; and (c) only to the extent of 75 percent of the number of shares to which this Option applies on or after the third anniversary and prior to the fourth anniversary of the date of grant
hereof. 

  
 These provisions do not apply if you (a)
are 60 years old; (b) die while employed by the Company; (c) retire; or (d) cease to be employed by the Company (i) on or after your 65th birthday, (ii) after your 55th birthday and you have completed 10 years of service, (iii) on or after the date
the sum of your age plus years of service, when rounded up to the next highest number, equals at least 70 and you have completed ten years of service with the Company and your employment terminates for any reason other than death, resignation,
willful misconduct, or activity deemed detrimental to the interest of the Company, or (iv) for any reason other than death, resignation, willful misconduct, or activity deemed detrimental to the interest of the Company. If you terminate from the
Company under clause (d)(iii) or (d)(iv), you must sign a General Release and, where applicable, a non-solicitation and/or non-compete agreement with the Company for these provisions to be inapplicable. 
  

	2.	Option Exercise and Payment. To exercise the Option, in whole or in part, you must notify the Company’s designated broker/agent in a manner designated by the Plan
Administrator. This notification will be effective upon receipt by the Company’s designated broker/agent and must be received on or before the specified Expiration Date. If the specified Expiration Date falls on a day that is not a regular
business day at the Company’s executive office in New York City or broker/agent’s office, then the exercise notification must be received on or before the last regular business day prior to the Expiration date. 

  
 Payment must be made in the form of a wire transfer, personal check, or money
order, payable in U.S. dollars and on a U.S. bank to the order of the Company’s designated broker/agent; or by authorizing the Company’s designated broker/agent to sell the shares acquired upon the exercise of the Option and remit to the
Company a sufficient portion of the sale proceeds to pay the entire exercise price, applicable brokerage fees, and any withholding and/or taxes and applicable fees resulting from such exercise as described in Section 3 hereof; or, if not problematic
under local law, by delivery of a certificate or certificates for shares of Common Stock of the Company owned by you for at least six months having a fair market value at the date of exercise equal to the purchase price for such shares, or in a
combination of the foregoing; provided, however, that payment in shares of Common Stock of the Company will not be permitted unless at least 100 shares of Common Stock are required and delivered for such purpose. Any stock certificate or
certificates so delivered must be endorsed, or accompanied by an appropriate stock power, to the order of Bristol-Myers Squibb Company, with the signature guaranteed by a bank or trust company or by a member firm of the New York Stock Exchange. In
lieu of the physical delivery of certificate(s), you may submit certificates by attestation. 
  
 No shares will be issued pursuant to the exercise of an Option unless such issuance and such exercise shall comply with all relevant provisions of law and the requirement of any stock exchange upon which the shares
may then be listed. 
  

	3.	Withholding and Employment Taxes Upon Exercise of Option. You must pay the Company upon its demand any amount for the purpose of satisfying its liability, if any, to withhold
federal, state or local income or earnings tax or any other applicable tax or assessment (plus interest or penalties thereon, if any, caused by a delay in making such payment) incurred by reason of your exercise of options or the transfer of shares
thereupon. You may satisfy your withholding tax obligations by authorizing the Company’s designated broker/agent to sell an appropriate number of shares being issued on exercise to cover the federal, state, local and FICA taxes. If on the date
of exercise, you are an executive officer of the Company within the meaning of Section 16 of the Securities Exchange Act of 1934, you must use share withholding to satisfy the obligation to pay federal, state, local and FICA taxes to be withheld on
the exercise. 

  

	4.	Non-Transferability. This grant is not transferable other than by will or by the laws of descent and distribution. 

  

	5.	Termination of Employment. 

  
 (a) Retirement. If you terminate from the Company (i) on or after your sixty-fifth birthday, (ii) on or after your fifty-fifth
birthday and you have ten years of service with the Company, or (iii) on or after the date the sum of the your age plus years of service, when rounded 

 
up to the next highest number, equals at least 70 and you have completed ten years of service with the Company and your employment terminates for any reason
other than death, disability, resignation, willful misconduct, or activity deemed detrimental to the interest of the Company, provided you sign a general release, your termination of employment will be deemed a retirement. If you are retired from
the Company, and your Option was granted more than one year prior to your retirement, the Option will fully vest on your retirement date and you will have the remainder of the term of the grant to exercise your Option. 
  
 (b) Military or Government Service. Whether military
or government service or other bona fide leave of absence shall constitute termination of employment for the purpose of this Option shall be determined in each case by the Compensation and Management Development Committee or its successor committee
(the “Committee”) in its sole discretion. 
  
 (c) Disability. If you have been continuously employed by the Company for more than one year after the granting of this Option and you retire or otherwise cease to be so employed by reason of disability, entitling you to receive
payments under a disability pay plan of the Company, you shall be treated as though you remained in the employ of the Company until the earlier of (i) cessation of payments under the disability pay plan, (ii) death, or (iii) attainment of 65th
birthday. 
  
 (d) Death. If you die while
you are employed by the Company and you have held this Option less than a year prior to your death, the Option will lapse. If you die while you are employed by the Company and you have held this Option for more than one year prior to your death, the
Option will not lapse until the Expiration Date. If you die after you have terminated from the Company and you are not retired from the company or on disability at the time of your death, and your death occurs within the three-month post termination
exercise period, the option will lapse one year after your date of death or on the tenth anniversary of the grant date, whichever is earlier. Your personal representative or your estate may exercise your Option before they lapse. 
  
 (e) Other. If you resign from the Company and you are
not eligible to retire, any unvested Option shares will lapse on your termination date. You may exercise any vested Option shares within three months of your termination date. If your employment is terminated by the Company for reasons other than
misconduct or other conduct deemed detrimental to the interests of the Company, and you are not eligible to retire, the vesting of this Option will be accelerated provided you have been continuously employed by the Company for more than one year
following the grant date and you sign a General Release. You may also be required to sign a non-compete and/or non-solicitation agreement to receive accelerated vesting treatment. Again, you may exercise vested options within three months of your
termination date. 
  

	6.	Forfeiture in the Event of Competition and/or Solicitation or other Detrimental Acts. You acknowledge that your continued employment with the Company and the Option are
sufficient consideration for this Agreement, including, without limitation, the restrictions imposed upon you by paragraph 6. 

  
 a) By accepting this Option, you expressly agree and covenant that during the Restricted Period (as defined below), you shall not,
without the prior consent of the Company, directly or indirectly: 
  

	 	i)	own or have any financial interest in a Competitive Business (as defined below), except that nothing in this clause shall prevent you from owning one per cent or less of the
outstanding securities of any entity whose securities are traded on a U.S. national securities exchange (including NASDAQ) or an equivalent foreign exchange; 

  

	 	ii)	be actively connected with a Competitive Business by managing, operating, controlling, being an employee or consultant (or accepting an offer to be an employee or consultant) or
otherwise advising or assisting a Competitive Business; 

  

	 	iii)	take any action that might divert any opportunity from the Company or any of its affiliates, successors or assigns (the “Related Parties”) that is within the scope of the
present or future operations or business of any Related Parties; 

  

	 	iv)	employ, solicit for employment, advise or recommend to any other person that they employ or solicit for employment or form an association with any person who is employed by the
Company or who has been employed by the Company within one year of the date of the termination of your employment with the Company; 

  

	 	v)	contact, call upon or solicit any customer of the Company, or attempt to divert or take away from the Company the business of any of its customers; 

  

	 	vi)	contact, call upon or solicit any prospective customer of the Company that you became aware of or were introduced to in the course of your duties for the Company, or otherwise
divert or take away from the Company the business of any prospective customer of the Company; or 

  

	 	vii)	engage in any activity that is harmful to the interests of the Company, including, without limitation, any conduct during the term of your employment that violates the
Company’s Standards of Business Conduct and Ethics, securities trading policy and other policies. 

  
 b) Forfeiture. If the Company determines that you have violated any provisions of paragraph 6(a) above during the Restricted
Period, then you agree and covenant that: 
  

	 	i)	any portion of the Option (whether or not vested) that has not been exercised as of the date of such determination shall be immediately rescinded; 

  

	 	ii)	you shall automatically forfeit any rights you may have with respect to the Option as of the date of such determination; and 

	 	iii)	if you have exercised all or any part of the Option within the twelve-month period immediately preceding a violation of paragraph 6(a) above (or following the date of any such
violation), upon the Company’s demand, you shall immediately deliver to it a certificate or certificates for shares of the Company’s Common Stock with a fair market value (determined on the date of such demand) equal to the gain realized
by you upon such exercise. 

  

	 	iv)	The foregoing remedies set forth in paragraph 6(b) shall not be the Company’s exclusive remedies. The Company reserves all other rights and remedies available to it at law or
in equity. 

  

	 	c)	Definitions. For purposes of this paragraph 6, the following definitions shall apply: 

  

	 	i)	The Company directly advertises and solicits business from customers wherever they may be found and its business is thus worldwide in scope. Therefore, “Competitive
Business” means any person or entity that engages in any business activity that competes with the Company’s business in any way, in any geographic area in which the Company engages in business, including, without limitation, any state
in the United States in which the Company sells or offers to sell its products from time to time. 

  

	 	ii)	“Restricted Period” means the period during which you are employed by the Company and twelve months following the date that you cease to be employed by the Company
for any reason whatsoever. 

  

	 	d)	Severability. You acknowledge and agree that the period, scope and geographic areas of restriction imposed upon you by the provisions of paragraph 6 are fair and reasonable
and are reasonably required for the protection of the Company. In the event that any part of this Agreement, including, without limitation, paragraph 6, is held to be unenforceable or invalid, the remaining parts of paragraph 6 and this Agreement
shall nevertheless continue to be valid and enforceable as though the invalid portions were not a part of this Agreement. If any one of the provisions in paragraph 6 is held to be excessively broad as to period, scope and geographic areas, any such
provision shall be construed by limiting it to the extent necessary to be enforceable under applicable law. 

  

	 	e)	Extension of Restrictions Upon Violation. If you violate any provision of paragraph 6 during the twelve months following the date you cease to be employed by the Company, the
Restricted Period shall be extended for a period of twelve months from the date of your last violation. 

  

	 	f)	Injunctive Remedies. You acknowledge that the restrictions contained in this Agreement are reasonably necessary to protect the legitimate business interests of the Company,
and that any violation of any of such restrictions will result in immediate and irreparable injury to the Company for which monetary damages will not be an adequate remedy. You further acknowledge that if any such restriction is violated, the
Company will be entitled to immediate relief enjoining such violation (including, without limitation, temporary and permanent injunctions, a decree for specific performance and an equitable accounting of earnings, profits and other benefits arising
from such violation) in any court or before any judicial body having jurisdiction over such claim, without the necessity of showing any actual damage or posting any bond or furnishing any other security. You also agree that any request for such
relief by the Company shall be in addition to and without prejudice to any claim for monetary damages that the Company may elect to assert. 

  

	 	g)	Expenses of Enforcement. If you violate this Agreement, you shall pay the Company for any and all costs, fees (including, without limitation, attorneys’ fees), expenses
and disbursements of the Company in connection with the enforcement by the Company of this Agreement. 

  

	7.	Adjustments in the Event of Change in Stock. Notwithstanding anything in this Option Agreement to the contrary, if prior to the Expiration Date any changes occur in the
outstanding Common Stock of the Company by reason of stock dividends, recapitalization, mergers, consolidations, split-ups, combinations or exchanges of shares and the like, the aggregate number and class of shares under the Plan, and the number,
class and price of share subject to outstanding options or awards shall be adjusted appropriately by the Committee, whose determination shall be conclusive. 

  

	8.	Data Privacy. By entering into this agreement, you (a) authorize the Company and any agent of the Company administering the Plan or providing Plan recordkeeping services, to
disclose to the Company or any of its subsidiaries such information and data as the Company or any such subsidiary shall request in order to facilitate the grant of options and the administration of the Plan; (b) waive any data privacy rights you
may have with respect to such information; and (c) authorize the Company to store and transmit such information in electronic form. 

  

	9.	Binding Effect. All decisions or interpretations of the Board of Directors or the Committee with respect to any question arising under the Plan or under this Option Agreement
shall be binding, conclusive and final. 

  

	10.	Waiver. The waiver by the Company of any provision of this Option shall not operate as or be construed to be a subsequent waiver of the same provision or waiver or any other
provision hereof. 

	11.	Construction. This Option shall be irrevocable during the Option period and its validity and construction shall be governed by the laws of the State of New York. The terms
and conditions herein set forth are subject in all respects to the terms and conditions of the Plan, which shall be controlling. 

  

			
	 Bristol-Myers Squibb Company

		
	By	 	 
	 	 	 

  
 I understand that this option
has been granted to provide a means for me to acquire and/or expand an ownership position in Bristol-Myers Squibb Company, and it is expected that I will retain the stock I receive upon the exercise of this option consistent with the Company’s
share retention guidelines in effect at the time of exercise of this award. In accepting this grant, I hereby agree that Smith Barney, or such other vendor as the Company may choose to administer the plan, may provide the Company with any and all
account information necessary to monitor my compliance with the Company’s Share Retention Policy. 
  
 I hereby agree to the foregoing terms and conditions and accept the grant of the option subject thereto.

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