Document:

<PAGE>
                                                                    Exhibit 10.3

                           THE PHARMACIA CORPORATION

                          1996 LONG-TERM INCENTIVE PLAN

                  AMENDED AND RESTATED AS OF SEPTEMBER 24, 2001

1. PURPOSE.

         The purpose of the Pharmacia Corporation 1996 Long-Term Incentive Plan
(the "Plan") is to promote the long-term financial interests Pharmacia
Corporation (the "Company"), including their growth and performance, by
encouraging key employees of the Company and its subsidiaries to acquire an
ownership position in the Company, enhancing the ability of the Company and its
subsidiaries to attract and retain employees of outstanding ability, and
providing such employees with an interest in the Company parallel to that of the
Company's stockholders.

2. DEFINITIONS.

         Unless otherwise required by the context, the terms used in the Plan
shall have the meanings set forth below:

         "Award" shall mean an award determined in accordance with the terms of
the Plan.

         "Board" or "Board of Directors" shall mean the Board of Directors of
the Company.

         "Change in Control" shall mean:

                  (1) the acquisition by any individual, entity or group (a
         "Person"), including any "person" within the meaning of Section
         13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended
         (the "Exchange Act"), of beneficial ownership within the meaning of
         Rule 13d-3 promulgated under the Exchange Act, of 33% or more of either
         (i) the then outstanding shares of Common Stock of the Company (the
         "Outstanding Company Common Stock") or (ii) the combined voting power
         of the then outstanding
<PAGE>
         securities of the Company entitled to vote generally in the election of
         directors (the "Outstanding Company Voting Securities"); provided,
         however, that the following acquisitions of Outstanding Company Common
         Stock or Outstanding Company Voting Securities shall not constitute a
         Change in Control: (A) any acquisition by the Company, (B) any
         acquisition by an employee benefit plan (or related trust) sponsored or
         maintained by the Company or any corporation controlled by the Company,
         or (C) any acquisition by any corporation pursuant to a reorganization,
         merger or consolidation involving the Company, if, immediately after
         such reorganization, merger or consolidation, each of the conditions
         described in clauses (i), (ii) and (iii) of subsection (3) of this
         definition shall be satisfied; and provided further that, for purposes
         of clause (A), if any Person (other than the Company or any employee
         benefit plan (or related trust) sponsored or maintained by the Company
         or any corporation controlled by the Company) shall become the
         beneficial owner of 33% or more of the Outstanding Company Common Stock
         or 33% or more of the Outstanding Company Voting Securities by reason
         of any acquisition of Outstanding Company Common Stock or Outstanding
         Company Voting Securities by the Company and such Person shall, after
         such acquisition by the Company, become the beneficial owner of any
         additional shares of the Outstanding Company Common Stock or any
         additional Outstanding Voting Securities and such beneficial ownership
         is publicly announced, such additional beneficial ownership shall
         constitute a Change in Control;

                  (2) individuals who, as of the date hereof, constitute the
         Board (the "Incumbent Board") cease for any reason to constitute at
         least a majority of such Board; provided, however, that any individual
         who becomes a director of the Company subsequent to the

                                       2
<PAGE>
         date hereof whose election, or nomination for election by the Company's
         stockholders, was approved by the vote of at least three-quarters of
         the directors then comprising the Incumbent Board (either by a specific
         vote or by approval of the proxy statement of the Company in which such
         person is named as a nominee for director, without objection to such
         nomination) shall be deemed to have been a member of the Incumbent
         board; and provided further, that no individual who was initially
         elected as a director of the Company as a result of an actual or
         threatened election contest, as such terms are used in Rule 14a-11 of
         Regulation 14A promulgated under the Exchange Act, or any other actual
         or threatened solicitation of proxies or consents by or on behalf of
         any Person other than the Board shall be deemed to have been a member
         of the Incumbent Board;

                  (3) approval by the stockholders of the Company of a
         reorganization, merger or consolidation involving the Company unless,
         in any such case, immediately after such reorganization, merger or
         consolidation, (i) more than 50% of the then outstanding shares of
         common stock of the corporation resulting from such reorganization,
         merger or consolidation and more than 50% of the combined voting power
         of the then outstanding securities of such corporation entitled to vote
         generally in the election of directors is then beneficially owned,
         directly or indirectly, by all or substantially all of the individuals
         or entities who were the beneficial owners, respectively, of the
         Outstanding Company Common Stock and the Outstanding Company Voting
         Securities immediately prior to such reorganization, merger or
         consolidation and in substantially the same proportions relative to
         each other as their ownership, immediately prior to such
         reorganization, merger or consolidation, of the Outstanding Company
         Common Stock and the Outstanding Company Voting Securities, as the case
         may be, (ii) no Person (other than

                                       3
<PAGE>
         the Company, any employee benefit plan (or related trust) sponsored or
         maintained by the Company or the corporation resulting from such
         reorganization, merger or consolidation (or any corporation controlled
         by the Company), or any Person which beneficially owned, immediately
         prior to such reorganization, merger or consolidation, directly or
         indirectly, 33% or more of the Outstanding Company Common Stock or the
         Outstanding Company Voting Securities, as the case may be) beneficially
         owns, directly or indirectly, 33% or more of the then outstanding
         shares of common stock of such corporation or 33% or more of the
         combined voting power of the then outstanding securities of such
         corporation entitled to vote generally in the election of directors and
         (iii) at least a majority of the members of the board of directors of
         the corporation resulting from such reorganization, merger or
         consolidation were members of the Incumbent board at the time of the
         execution of the initial agreement or action of the Board providing for
         such reorganization, merger or consolidation; or

                  (4) (i) approval by the stockholders of the Company of a plan
         of complete liquidation or dissolution of the Company or (ii) the sale
         or other disposition of all or substantially all of the assets of the
         Company other than to a corporation with respect to which, immediately
         after such sale or other disposition, (A) more than 50% of the then
         outstanding shares of common stock thereof and more than 50% of the
         combined voting power of the then outstanding securities thereof
         entitled to vote generally in the election of directors is then
         beneficially owned, directly or indirectly, by all or substantially all
         of the individuals and entities who were the beneficial owners,
         respectively, of the Outstanding Company Common Stock and the
         Outstanding Company Voting Securities immediately prior to such sale or
         other disposition and in substantially the same

                                       4
<PAGE>
         proportions relative to each other as their ownership, immediately
         prior to such sale or other disposition, of the Outstanding Company
         Common Stock and the Outstanding Company Voting Securities, as the case
         may be, (B) no Person (other than the Company, any employee benefit
         plan (or related trust) sponsored or maintained by the Company or such
         corporation (or any corporation controlled by the Company), or any
         Person which beneficially owned, immediately prior to such sale or
         other disposition, directly or indirectly, 33% or more of the
         Outstanding Company Common Stock or the Outstanding Company Voting
         Securities, as the case may be) beneficially owns, directly or
         indirectly, 33% or more of the then outstanding shares of common stock
         thereof or 33% or more of the combined voting power of the then
         outstanding securities thereof entitled to vote generally in the
         election of directors and (C) at least a majority of the members of the
         board of directors thereof were members of the Incumbent board at the
         time of the execution of the initial agreement or action of the Board
         providing for such sale or other disposition (or were approved directly
         or indirectly by the Incumbent Board).

         "Committee" shall mean the Compensation Committee of the Board of
Directors, or its permitted delegate, consisting of two or more non-employee
directors (as defined under Rule 16b-3 of the Exchange Act) appointed by the
Board who meet the requirements of being outside directors within the meaning of
Section 162(m) of the Internal Revenue Code of 1986, as amended (the "Code").

         "Common Stock" shall mean the common stock of the Company.

         "Effective Date" shall mean November 1, 1995. The effective date of the
amended and restated Plan is June 1, 2000.

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

                                       5
<PAGE>
         "Fair Market Value" shall mean, per share of Common Stock, the average
of the highest and lowest price of the Common Stock on the New York Stock
Exchange (the "NYSE"), or such other national securities exchange as may be
designated by the Board, on the applicable date, or, if there are no sales of
Common Stock on the NYSE on such date, then the average of the highest and
lowest price of the Common Stock on the last previous day on which a sale on the
NYSE is reported; provided, that the Committee may determine that the Fair
Market Value price may be based upon the average of the highest and lowest price
of the Common Stock (or depositary receipts evidencing ownership of such Common
Stock) on stock exchanges outside the United States with respect to Awards
granted to Participants who are foreign nationals.

         "Participant" shall mean an employee of the Company or its subsidiaries
who is selected by the Committee to participate in the Plan.

3.       SHARES SUBJECT TO THE PLAN.

         Subject to adjustment as provided in Section 17, the number of shares
of Common Stock which shall be available for the grant of Awards under the Plan
shall not exceed in any calendar year commencing after the Effective Date and
before 2001, one and one-quarter percent (1.25%) of the number of shares of
Common Stock outstanding as of January 1 of such year (including treasury
shares); provided that, with respect to calendar year 1995, the maximum number
of shares of Common Stock available for the grant of Awards under the Plan was
2,000,000 shares. The maximum number of shares set forth in the preceding
sentence shall be increased with respect to any year (including years after
2000) by the number of shares available for grant in any prior years since the
effective date of the Plan which were not subject to Awards granted under the
Plan in such prior years plus any shares of Common Stock subject to any Award
that expires unexercised or that is forfeited, terminated or canceled, in whole
or in part. For the year

                                       6
<PAGE>
2001 and subsequent years, there shall be no increases in the number of shares
available for grants under the Plan pursuant to the first sentence of this
Section 3, but there shall be shares available for grants as a result of the
second sentence of this Section 3. The shares of Common Stock issued under the
Plan may be authorized and unissued shares or treasury shares, as the Company
may from time to time determine.

         Subject to adjustment as provided in Section 17, notwithstanding
anything contained herein to the contrary, in no event shall more than 595,000
shares of Common Stock be granted pursuant to stock options or stock
appreciation rights under the Plan to any Participant in any calendar year and
in no event shall the number of shares of Common Stock available for issuance
pursuant to incentive stock options (within the meaning of Section 422 of the
Code) during the term of the Plan exceed the lesser of (a) the number of shares
generally available for issuance under the Plan and (b) 59,500,000 shares. No
additional incentive stock options will be granted under the Plan on or after
June 1, 2000.

4.       ADMINISTRATION.

         (a) The Plan shall be administered by the Committee. A majority of the
Committee shall constitute a quorum, and the acts of a majority of a quorum
shall be the acts of the Committee. The Committee may by resolution delegate
authority to one or more committees consisting of one or more officers (a
"Subcommittee") to perform one or both of the following: (i) to select officers
or salaried employees (including salaried directors) of the Company or a
Subsidiary (but not of a Parent) who are to receive stock options, stock
appreciation rights, dividend equivalents, and/or other Awards that are valued
in whole or in part by reference to, or are otherwise based on, shares of Common
Stock, and (ii) to determine the number of such stock options, stock
appreciation rights or dividend equivalents, and/or other Awards that are valued
in

                                       7
<PAGE>
whole or in part by reference to, or are otherwise based on, shares of Common
Stock to be received by the selected officers or salaried employees; provided,
however, that the Committee shall by resolution set forth the maximum number of
Awards that may be made by any Subcommittee(s). Any such Subcommittee delegated
authority by the Committee may not (x) select an officer who is a current member
of such Subcommittee or a member of the Board to receive Awards as described in
(i) above, or (y) grant any Award to a Reporting Person (defined as a person
subject to the reporting requirements of Section 16(a) of the Exchange Act (or
any law, rule, regulation or other provision that may replace such statute) with
respect to shares of Common Stock) or to a "covered employee" under Section
162(m) of the Internal Revenue Code of 1986, as amended. Only the Committee
shall make all determinations regarding Awards to Reporting Persons and/or
"covered employees". To the extent permitted by law, the Committee may appoint
employees of the Company or its Subsidiaries or other third parties to act as
its agents with respect to administration of the Plan, including, but not
limited to, administration of the exercise of any Awards granted under the Plan.

         (b) Subject to the provisions of the Plan, the Committee shall have
authority to (i) approve the selection of Participants (after such consultation
with and consideration of the recommendations of management as the Committee
considers desirable), (ii) determine the type of Awards to be made to
Participants, (iii) determine the number of shares of Common Stock or share
units subject to Awards, (iv) determine the terms and conditions, not
inconsistent with the terms of the Plan, of any Award granted hereunder
(including, but not limited to, any restriction and forfeiture conditions on
such Award), (v) determine whether, to what extent and under what circumstances,
Awards may be settled in cash, (vi) to the extent appropriate, establish and
certify attainment of performance goals as required by Section 162(m) of the
Code and (vii) have the

                                       8
<PAGE>
authority to interpret the Plan, to establish, amend, and rescind any rules and
regulations relating to the Plan (which shall not be inconsistent with the terms
of the Plan), to determine the terms and provisions of any agreements entered
into hereunder, and to make all other determinations necessary or advisable for
the administration of the Plan. The Committee may adopt such forms, agreements,
methods or practices consistent with current technology for the administration
of the Plan. The Committee may correct any defect, supply any omission or
reconcile any inconsistency in the Plan or in any Award in the manner and to the
extent it shall deem desirable to carry it into effect. The determinations of
the Committee in the administration of the Plan, as described herein, shall be
final, conclusive and binding on all persons, including the Company, its
stockholders, employees and Participants granted Awards under the Plan.

         (c) No members of the Committee shall be personally liable for any
action, determination, or interpretation made in good faith with respect to the
Plan or any Award and all members of the Committee shall be fully indemnified by
the Company with respect to any such action, determination, or interpretation to
the fullest extent provided by the certificate of incorporation and by-laws of
the Company and applicable state law. The Company shall pay all expenses
incurred in the administration of the Plan.

5.       ELIGIBILITY.

         Officers and other key employees of the Company and its subsidiaries
who meet such standards as the Committee may from time to time determine are
eligible to be granted Awards under the Plan; provided that no Awards will be
granted under the Plan on or after June 1, 2000 to persons who are executive
officers of the Company.

                                       9
<PAGE>
         For purposes of the Plan, a subsidiary corporation shall be any
corporation which at the time qualifies as a subsidiary under the definition of
"subsidiary corporation" in Section 424(f) of the Code. For purposes of the
Plan, a parent corporation shall be any corporation (other than the Company) in
an unbroken chain of corporations ending with the Company if each of the
corporations other than the last corporation in the unbroken chain owns stock
possessing 50% or more of the total combined voting power of all classes of
stock in one or more of the other corporations in the chain.

6.       AWARDS.

         Awards under the Plan may consist of stock options (either incentive
stock options within the meaning of Section 422 of the Code or nonstatutory
stock options), stock appreciation rights, performance shares, restricted stock
grants, deferred Common Stock grants and other stock-based Awards. Awards of
performance shares, restricted stock units and other stock-based Awards may
provide the Participant with dividend equivalents prior to vesting of such
Awards. Awards shall be subject to the terms and conditions of the Plan and
shall be evidenced by an agreement containing such additional terms and
conditions, not inconsistent with the provisions of the Plan, as the Committee
shall deem desirable.

7.       STOCK OPTIONS.

         Stock options may be granted under the Plan in such form as the
Committee may from time to time approve pursuant to terms set forth in a stock
option agreement.

         (a) Types of Stock Options. Each stock option agreement shall state
whether or not the stock option will be treated as an incentive stock option or
a non-qualified stock option.

                                       10
<PAGE>
         (b) Option Price. The purchase price per share of the Common Stock
purchasable under a stock option shall be determined by the Committee, but,
except as determined by the Committee, will be not less than 100% of the Fair
Market Value of the Common Stock on the date of the grant of the stock option.

         (c) Option Period. The term of each stock option shall be fixed by the
Committee, but no stock option shall be exercisable after the expiration of ten
(10) years from the date the option is granted.

         (d) Exercisability. Stock options shall be exercisable at such time or
times as determined by the Committee at or subsequent to grant. Unless otherwise
determined by the Committee at or subsequent to grant, no stock option shall be
exercisable during the twelve-month period ending on the day before the first
anniversary date of the grant of the option, except upon a Change in Control.

         (e) Method of Exercise. Stock options may be exercised, in whole or in
part, by giving notice (in the form prescribed from time to time by the Company)
of exercise to the Company specifying the number of shares to be purchased. Such
notice shall be accompanied by the payment in full of the option purchase price.
Payment of the exercise price shall be made in the form approved by the
Committee and set forth in the stock option agreement and may include, but is
not limited to, payment in cash or by certified or bank check, by tender of
shares of Common Stock owned by the Participant (valued at Fair Market Value
determined as of the day immediately prior to exercise) or, at the discretion of
the Committee and upon such terms and conditions as the Committee may approve,
through cashless exercise procedures, with other consideration or through other
procedures, or by a combination of any such procedures. The

                                       11
<PAGE>
Committee may determine that previously owned shares of Common Stock be held for
a specified period of time prior to being used to exercise stock options. The
Committee may from time to time adopt such methods and procedures for exercising
outstanding stock options as are consistent with current technology and the
Company's system for administering the Plan.

         (f) Termination of Employment. Except as otherwise determined by the
Committee at or subsequent to grant, any stock options held by a Participant
upon termination of employment shall remain exercisable as follows:

                  (i) If the Participant's termination of employment is due to
         death or permanent disability (as determined by the Committee), the
         stock option (to the extent exercisable as of the date of termination)
         shall be exercisable for one (1) year following such termination of
         employment (but in no event beyond the term of the option), and shall
         thereafter terminate; and

                  (ii) If the Participant's termination of employment is for any
         other reason, the stock option (to the extent exercisable as of the
         date of termination) shall be exercisable for a period of ninety (90)
         days following such termination of employment (but in no event beyond
         the term of the option), and shall thereafter terminate.

         In the event the Committee determines that a stock option may be
exercised after the periods provided for in this paragraph (f), such longer
exercise period may not extend beyond the term of the option.

         (g) Replacement Stock Option Grants. The Committee shall have the
discretionary authority to include in any stock option agreement a provision
that entitles an optionee who is an employee of the Company or any of its
subsidiaries and who exercises a stock option, in whole

                                       12
<PAGE>
or in part, by using previously owned shares of Common Stock to be granted a
replacement stock option exercisable for the number of shares of Common Stock
used to exercise the stock option. Any such replacement option shall be subject
to the availability of sufficient shares of Common Stock under Section 3, and
shall be subject to such other terms and conditions to be determined by the
Committee consistent with this Section 7. No optionee shall have any right to
the grant of a replacement option unless such right is approved by the Committee
and included in the optionee's stock option agreement.

         (h) Effect of Exercise Upon Tandem Stock Appreciation Right. Upon
exercise of a stock option with respect to which a tandem stock appreciation
right (as described in Section 8) has been granted, the number of shares of
Common Stock with respect to which the tandem stock appreciation right shall be
exercisable shall be reduced by the number of shares with respect to which the
stock option has been exercised.

8. STOCK APPRECIATION RIGHTS. Stock appreciation rights may be granted under the
Plan in such form as the Committee may from time to time approve pursuant to
terms set forth in a stock appreciation rights agreement.

         (a) Types of Stock Appreciation Rights. Stock appreciation rights may
be granted in tandem with a related stock option (a "tandem stock appreciation
right") or may be granted unrelated to any stock option (a "freestanding stock
appreciation right"). A tandem stock appreciation right may be granted at the
time of the related stock option grant or at any time during the term of such
stock option; provided, however, that tandem stock appreciation rights related
to an incentive stock option may only be granted at the time of the grant of
such stock

                                       13
<PAGE>
option and may be exercised only when the Fair Market Value of Common Stock
subject to such incentive stock option exceeds the exercise price of such stock
option.

         (b) Purchase Price. The purchase price of a stock appreciation right
shall be determined by the Committee at or subsequent to the time of grant of
the stock appreciation right.

         (c) Payment. A stock appreciation right shall entitle the holder
thereof, upon exercise of the stock appreciation right or any portion thereof,
to receive payment of an amount determined by multiplying (i) the excess of the
Fair Market Value per share of Common Stock on the date of exercise over the per
share purchase price of the stock appreciation right, by (ii) the number of
shares of Common Stock as to which such stock appreciation right is being
exercised. Notwithstanding the foregoing, the Committee may limit in any manner
the amount payable with respect to a stock appreciation right by including such
a limit at the time of grant.

         (d) Exercise. Free standing stock appreciation rights shall be
exercisable at such time or times, and under such conditions, as shall be
determined by the Committee in its discretion at or subsequent to the time of
grant and, except as otherwise determined by the Committee at or subsequent to
grant, freestanding stock appreciation rights held by a Participant upon
termination of employment shall be exercisable on the same terms as set forth
for stock options in Section 7(f); provided, however, that no freestanding stock
appreciation right shall be exercisable after the expiration of ten (10) years
from the date the stock appreciation right is granted. A tandem stock
appreciation right shall be exercisable at such time or times and only to the
extent that the related stock option is exercisable.

                                       14
<PAGE>
         (e) Method of Exercise. Stock appreciation rights may be exercised, in
whole or in part, by giving notice (in the form prescribed from time to time by
the Company) to the Company specifying the number of shares with respect to
which the stock appreciation right is being exercised. If requested by the
Committee, the holder of a stock appreciation right shall deliver the agreement
evidencing the stock appreciation right being exercised and, with respect to a
tandem stock appreciation right, the agreement evidencing the related stock
option to the Secretary of the Company who shall endorse thereon a notation of
such exercise and return the agreement to the holder. The Committee may from
time to time adopt such procedures for exercising the stock appreciation rights
as are consistent with current technology and the Company's system for
administering the exercise of such rights.

         (f) Form of Payment. Payment of the amount determined under this
Section 8 shall be made solely in shares of Common Stock or, at the sole
discretion of the Committee, solely in cash, or in a combination of cash and
shares of Common Stock (based upon the Fair Market Value of the Common Stock as
of the date of exercise of the stock appreciation right).

         (g) Effect of Exercise of Tandem Stock Appreciation Right on Related
Stock Option. Upon exercise of a tandem stock appreciation right, the number of
shares of Common Stock covered by the related stock option shall be reduced by
the number of shares with respect to which the stock appreciation right has been
exercised.

9.       PERFORMANCE SHARES.

         Performance shares may be granted under the Plan in such form as the
Committee may from time to time approve pursuant to the terms set forth in a
performance share agreement.

                                       15
<PAGE>
         (a) Types of Performance Shares. Performance shares may be granted in
the form of actual shares of Common Stock or share units having a value equal to
an identical number of shares of Common Stock.

         (b) Performance Conditions and Duration. The performance conditions and
the length of the performance period shall be determined by the Committee, but
in no event may a performance period be less than twelve (12) months, except
upon a Change in Control.

         (c) Form of Payment. The Committee shall determine in its sole
discretion whether performance shares granted in the form of share units shall
be paid in cash, Common Stock, or a combination of cash and Common Stock (based
upon Fair Market Value of the Common Stock as of the date of exercise or the end
of the performance period, as the case may be).

         (d) Termination of Employment. Except as otherwise determined by the
Committee at or subsequent to grant, a Participant must be employed as of the
end of the relevant performance period to be entitled to receive payment with
respect to a performance share award.

10.      RESTRICTED STOCK.

         Shares of restricted stock may be issued either alone or in addition to
stock options, deferred stock or other stock-based Awards granted under the
Plan, as determined by the Committee pursuant to terms set forth in a restricted
stock agreement.

         (a) Awards of Restricted Stock. Unless such requirement is waived by
the Committee, the prospective recipient of an Award of shares of restricted
stock shall not be deemed to have any rights with respect to such Award, until
and unless such recipient shall have executed an

                                       16
<PAGE>
agreement or other instrument evidencing the Award and delivered a fully
executed copy thereof to the Company, and otherwise complied with the then
applicable terms and conditions.

         (b) Stock Certificates. Each Participant granted restricted stock under
the Plan shall be issued a stock certificate in respect of shares of restricted
stock awarded under the Plan. Such certificate shall be registered in the name
of the holder, and shall bear an appropriate legend referring to the terms,
conditions, and restrictions applicable to such Award. The Committee shall
require that the stock certificates evidencing such shares be held in custody by
the Company until the restrictions thereon shall have lapsed, and shall require,
as a condition of any restricted stock Award, that the holder shall have
delivered a stock power, endorsed in blank, relating to the stock covered by
such Award.

         (c) Restrictions and Conditions. Subject to the provisions of this
Plan, during a period set by the Committee commencing with the date of such
Award (the "restriction period"), the holder of shares of restricted stock shall
not be permitted to sell, transfer, pledge, or assign such shares of restricted
stock awarded under the Plan. Within these limits, the Committee may provide for
the lapse of such restrictions in installments where deemed appropriate. Unless
otherwise determined by the Committee at or subsequent to grant, the restriction
period shall remain in effect during the twelve-month period ending on the day
before the first anniversary date of the grant of the shares of restricted
stock, except upon a Change in Control. Subject to the provisions of the
immediately following sentence, upon termination of employment for any reason
during the restriction period, all shares still subject to restriction shall be
forfeited by the Participant and reacquired by the Company. In the event of a
Participant's retirement, permanent disability, or death, or in cases of special
circumstances, the Committee may, in its sole discretion, when it finds that a
waiver would be in the best interests of the Company, waive in

                                       17
<PAGE>
whole or in part any or all remaining restrictions with respect to such
Participant's shares of restricted stock.

         (d) Rights of Holder of Restricted Stock. Except as provided in
paragraph (c) of this Section 10, a Participant shall have, with respect to the
shares of restricted stock, all the rights of a shareholder of the Company,
including the right to vote the restricted stock, and the right to receive any
dividends. The Committee, in its sole discretion, may permit or require the
payment of dividends to be deferred and, if the Committee so determines,
reinvested in additional restricted stock or to be otherwise reinvested or
subject to restrictions.

         (e) Restricted Stock Units. Restricted stock may also be granted in the
form of restricted stock units having a value equal to an identical number of
shares of Common Stock. The Committee shall determine in its sole discretion
whether restricted stock granted in the form of units shall be paid in cash,
Common Stock or a combination of cash and Common Stock.

11.      DEFERRED AWARDS.

         The Committee shall have the discretion to grant Awards of the right to
receive Common Stock that are not to be distributed until after a specified
deferral period. Such Awards may be made either alone or in addition to other
Awards granted under the Plan. If the attainment of performance goals are
specified, the Committee shall certify attainment of such performance goals
prior to any delivery of deferred Common Stock. Prior to completion of the
deferral period, a participant may elect to further defer receipt of an Award
for a specified period or until a specified event, subject in each case to the
approval of the Committee and under such terms as are determined by the
Committee in its sole discretion. The Committee shall determine in its

                                       18
<PAGE>
sole discretion whether such deferred Awards shall be paid in cash, Common Stock
or a combination of cash and Common Stock.

12.      OTHER STOCK-BASED AWARDS.

         Other Awards of Common Stock and other Awards that are valued in whole
or in part by reference to, or are otherwise based on Common Stock, including
(without limitation) dividend equivalents and convertible debentures, may be
granted either alone or in addition to other Awards granted under the Plan. Any
Awards under this Section 12 and any Common Stock covered by any such Award may
be forfeited to the extent so provided in the Award agreement, as determined by
the Committee.

13.      CHANGE IN CONTROL.

         Upon the occurrence of a Change in Control, (i) all stock options shall
become vested and exercisable in full, (ii) all stock appreciation rights which
have not been granted in tandem with stock options shall become vested and
exercisable in full, (iii) the restrictions applicable to all shares of
restricted stock shall lapse, (iv) all restricted stock granted in the form of
share units shall be paid in shares of Common Stock, (v) all performance shares
shall be deemed to be earned in full and shall be paid in shares of Common
Stock, and all performance shares granted in the form of share units shall be
deemed to be earned in full and shall be paid in shares of Common Stock, and
(vi) all deferred Awards shall be paid in shares of Common Stock. The Committee
may, in its discretion, include such further provisions and limitations in any
agreement documenting such Awards as it may deem equitable and in the best
interest of the Company, and may make payments with respect to restricted stock
units, performance share units and deferred Awards in cash in an amount equal to
the Fair Market Value of the Award as of the Change in Control.

                                       19
<PAGE>
14.      WITHHOLDING.

         The company shall have the right to deduct from any payment to be made
pursuant to the Plan the amount of any taxes required by law to be withheld
therefrom, or to require a Participant to pay to the Company in cash such amount
required to be withheld prior to the issuance or delivery of any shares of
Common Stock or the payment of cash under the Plan. The Committee may, in its
discretion, permit a Participant to elect to satisfy such withholding obligation
by (i) delivering previously owned shares of Common Stock or (ii) having the
Company retain shares of Common Stock which would otherwise be delivered upon
exercise or payment of Awards (in an amount not exceeding the minimum applicable
tax withholding amount required to satisfy federal (including FICA), state,
local and foreign tax withholding requirements) or (iii) any combination of a
cash payment or the methods set forth in (i) and (ii) above. For purposes of (i)
and (ii) above, shares of Common Stock shall be valued at Fair Market Value
determined as of the day immediately prior to exercise or payment.

15.      NONTRANSFERABILITY.

         No Award shall be assignable or transferable by the Participant, other
than by will, by the laws of descent and distribution, or pursuant to a written
beneficiary designation, and stock options and stock appreciation rights shall
be exercisable during the Participant's lifetime only by the Participant or the
Participant's guardian or legal representative. Notwithstanding the foregoing,
the Senior Vice President of Human Resources, in his or her sole discretion, may
allow the transfer, for no consideration to the Participant, of a nonstatutory
stock option to a Participant's "Immediate Family" pursuant to the terms and
conditions approved by the Senior Vice President of Human Resources. In the
event of such permitted transfer, the transferee shall

                                       20
<PAGE>
take such nonstatutory stock option subject to the same restrictions, terms and
conditions in the stock option agreement at the time of such transfer. For
purposes of this Section 15, "Immediate Family" shall mean (i) the Participant's
children, grandchildren, spouse or common law spouse, siblings or parents, as
well as (ii) a trust in which these persons (or the Participant) have more than
fifty percent of the beneficial interest, a foundation in which these persons
(or the Participant) control the management of assets, and any other entity in
which these persons (or the Participant) own more than fifty percent of the
voting interests.

16.      NO RIGHT TO EMPLOYMENT.

         No person shall have any claim or right to be granted an Award, and the
grant of an Award shall not be constructed as giving a Participant the right to
be retained in the employ of the Company, its parent or their subsidiaries.
Further, the Company, its parent and their subsidiaries expressly reserve the
right at any time to terminate the employment of a Participant free from any
liability, or any claim under the Plan, except as provided herein or in any
Award agreement entered into hereunder.

17.      ADJUSTMENT OF AND CHANGES IN COMMON STOCK.

         In the event of any change in the outstanding shares of Common Stock
(including any increase or decrease in such shares) by reason of any stock
dividend or split, recapitalization, merger, consolidation, spin-off,
combination or exchange of shares or other similar corporate change, or any
distributions to common stockholders other than regular cash dividends, the
Committee may make such substitution or adjustment, if any, as it deems to be
equitable, as to the number or kind of shares of Common Stock or other
securities reserved for issuance pursuant to the Plan, or subject to outstanding
Awards, and to any other terms and conditions of

                                       21
<PAGE>
outstanding Awards including the stock option or stock appreciation right
purchase price or performance criteria.

18.      EMPLOYMENT BY SUBSIDIARY AND PARENT COMPANIES.

          For purposes of the Plan, a transfer of an employee to the employ of
a subsidiary of the Company (or, if provided in the grant instrument, a parent
corporation) shall not be deemed to be a termination of employment and the
employment by a subsidiary (or, if provided in the grant instrument, a parent
corporation) shall be deemed to be employment by the Company.

19.      FOREIGN EMPLOYEES.

         Without amending the Plan, the Committee may grant Awards to employees
of the Company or its subsidiaries who are foreign nationals on such terms and
conditions different from those specified in this Plan (including without
limitation granting stock options with a term longer than ten years if
appropriate to assure favorable tax treatment) as may in the judgment of the
Committee be necessary or desirable to foster and promote achievement of the
purposes of the Plan, and, in furtherance of such purposes, the Committee may
make such modifications, amendments, procedures, subplans and the like as may be
necessary or advisable to comply with provisions of laws in other countries in
which the Company or its subsidiaries operate or have employees; provided,
however, that, except as described above, any such modification, amendment,
procedure, subplan or like arrangement shall not be inconsistent with the terms
of the Plan.

20.      AMENDMENT.

                                       22
<PAGE>
         The Board of Directors may amend, suspend or terminate the Plan or any
portion thereof at any time, provided that no amendment shall be made that would
adversely affect the rights of a Participant under an Award theretofore granted,
without such Participant's written consent.

21.      GENERAL PROVISIONS.

         (a) The Committee may require each Participant purchasing or acquiring
shares pursuant to an Award under the Plan to represent to and agree with the
Company in writing that such Participant is acquiring the shares for investment
and without a view to distribution thereof.

         (b) All certificates for shares of Common Stock delivered under the
Plan pursuant to any Award shall be subject to such stock-transfer orders and
other restrictions as the Committee may deem advisable under the rules,
regulations, and other requirements of the Securities and Exchange Commission,
any stock exchange upon which the Common Stock is then listed, and any
applicable Federal, state or foreign securities law, and the Committee may cause
a legend or legends to be put on any such certificates to make appropriate
reference to such restrictions. If the Committee determines that the issuance of
shares of Common Stock hereunder is not in compliance with, or subject to an
exemption from, any applicable Federal, state or foreign securities laws, such
shares shall not be issued until such time as the Committee determines that the
issuance is permissible.

         (c) The Plan is intended to constitute an "unfunded" plan for incentive
and deferred compensation. Nothing contained herein shall give any Participant
any rights that are greater than those of a general creditor of the Company. In
its sole discretion, the Committee may authorize the creation of trusts or other
arrangements to meet the obligations created under the Plan to deliver Common
Stock or payments in lieu of or with respect to Awards hereunder,

                                       23
<PAGE>
provided, however, that the existence of such trusts or other arrangements is
consistent with the unfunded status of the Plan.

         (d) Except as otherwise provided by the Committee in the applicable
Award agreement, a Participant shall have no rights as a shareholder with
respect to any shares of Common Stock subject to stock options, stock
appreciation rights, performance share awards, restricted stock units, or
deferred awards until a certificate or certificates evidencing shares of Common
Stock shall have been issued to the Participant and, subject to Section 17, no
adjustment shall be made for dividends or distributions or other rights in
respect of any share for which the record date is prior to the date on which the
Participant shall become the holder of record thereof.

         (e) United States law shall apply to all grants under the Plan except,
in the case of an Award to a foreign national, to the extent local laws preempt
United States law.

22.      EFFECTIVE DATE; TERM OF PLAN.

         The Plan shall be effective as of November 1, 1995. Subject to earlier
termination pursuant to Section 20, the plan shall have a term of ten (10) years
from its Effective Date (November 1, 1995).

                                       24<PAGE>
                                                                    Exhibit 10.4

                              PHARMACIA CORPORATION
                            MANAGEMENT INCENTIVE PLAN

                  AMENDED AND RESTATED AS OF SEPTEMBER 24, 2001

I. GENERAL PROVISIONS

1. PURPOSES

The Pharmacia Corporation Management Incentive Plan (formerly known as the
Monsanto Management Incentive Plan of 1996) is designed to:

-     focus management on business performance that creates stockholder value,

-     encourage innovative approaches to the business of the Company,

-     reward for results,

-     encourage ownership of Monsanto common stock by management, and

-     encourage taking higher risks with an opportunity for higher reward.

This Incentive Plan shall be effective April 15, 1996 ("Effective Date"),
subject to the approval of this Incentive Plan by the stockholders of the
Company. The amended and restated Incentive Plan shall apply to awards made
under this Plan that are effective on or after June 1, 2000.

2. DEFINITIONS

Except where the context otherwise indicates, the following definitions apply:

"Associated Company" means any corporation (or partnership, joint venture, or
other enterprise), of which the Company or a Parent owns or controls, directly
or indirectly, 10% or more, but less than 50% of the outstanding shares of stock
normally entitled to vote for the election of directors (or comparable equity
participation and voting power).

"Award" means any Stock Option, Stock Appreciation Right, Restricted Share,
unrestricted Share, dividend equivalent unit, Performance Share, Deferred Award
or other award granted under this Incentive Plan.

"Board" means Board of Directors of the Company.

"Committee" means the Compensation Committee of the Board, or its permitted
delegate, consisting of two or more non-employee directors (as defined under
Rule 16b-3 of the Securities Exchange Act of 1934, as amended (the "Exchange
Act")) appointed by the Board who meet the requirements of being outside
directors within the meaning of Section 162(m) of Internal

                                       1
<PAGE>
Revenue Code of 1986, as amended.

"Company" means Pharmacia Corporation, a Delaware corporation.

"Deferred Award" means a deferred award granted in accordance with Section 9 of
Article II of this Incentive Plan.

"Eligible Participant" means any officer or other salaried employee (including a
director who is a salaried employee) of the Company, a Subsidiary, or an
Associated Company.

"Fair Market Value" shall mean, per share of common stock, the average of the
highest and lowest sales price of the common stock on the New York Stock
Exchange (the "NYSE"), or such other national securities exchange as may be
designated by the Board, on the applicable date, or, if there are no sales of
common stock on the NYSE on such date, then the average of the highest and
lowest price of the common stock on the last previous day on which a sale on the
NYSE is reported; provided, that the Committee may determine that the Fair
Market Value price may be based upon the average of the highest and lowest price
of the common stock (or depositary receipts evidencing ownership of such common
stock) on stock exchanges outside the United States with respect to Awards
granted to Participants who are foreign nationals.

"Incentive Plan" means the Pharmacia Corporation Management Incentive Plan, set
forth herein.

"Incentive Stock Option" or "Incentive Option" means an option meeting the
definition of that term as set forth in Section 3 of Article II of this
Incentive Plan.

"1984 Plan" means the Monsanto Management Incentive Plan of 1984, as amended.

"1986 Plan" means the Searle Monsanto Stock Option Plan of 1986, as amended.

"1988/I Plan" means the Monsanto Management Incentive Plan of 1988/I, as
amended.

"1988/II Plan" means the Monsanto Management Incentive Plan of 1988/II, as
amended.

"1991 Plan" means the NutraSweet/Monsanto Stock Plan of 1991, as amended.

"1994 NutraSweet/Monsanto Plan" means the NutraSweet/Monsanto Stock Plan of
1994, as amended.

"1994 Plan" means the Monsanto Management Incentive Plan of 1994, as amended.

"1994 Searle/Monsanto Plan" means the Searle/Monsanto Stock Plan of 1994, as
amended.

"Non-Qualified Stock Option" or "Non-Qualified Option" means an option referred
to in Section 4 of Article II of this Incentive Plan.

"Parent" means any corporation (other than the Company) in an unbroken chain of
corporations ending with the Company if each of the corporations other than the
last corporation in the unbroken chain owns stock possessing 50% or more of the
total combined voting power of all

                                       2
<PAGE>
classes of stock in one or more of the other corporations in the chain.

"Participant" means an Eligible Participant to whom an Award has been granted
pursuant to this Incentive Plan.

"Performance Share" means Performance Shares granted in accordance with Section
8 of Article II of this Incentive Plan.

"Reporting Person" means a person subject to the reporting requirements of
Section 16(a) of the Exchange Act (or any law, rule, regulation or other
provision that may replace such statute) with respect to Shares.

"Restricted Shares" means Shares that were made subject to restrictions in
accordance with Section 6 of Article II of this Incentive Plan.

"Shares" means shares of common stock of the Company and any shares of stock or
other securities received as a result of a Share adjustment as set forth in
Section 4 of this Article I.

"Stock Appreciation Right" means a right referred to in Section 5 of Article II
of this Incentive Plan.

"Stock Appreciation Right Fair Market Value" or "SAR Fair Market Value" shall
mean a value established by the Committee for the exercise of a Stock
Appreciation Right.

"Stock Option" or "Option" means Incentive Stock Options and/or Non-Qualified
Stock Options.

"Subsidiary" means: (i) for the purpose of an Incentive Stock Option, any
corporation (other than the Company) in an unbroken chain of corporations
beginning with the Company if, at the time of the granting of the Option, each
of the corporations other than the last corporation in the unbroken chain owns
stock possessing 50% or more of the total combined voting power of all classes
of stock in one of the other corporations in such chain; and (ii) for the
purposes of other types of Awards under this Plan, any corporation (or
partnership, joint venture, or other enterprise) of which the Company or a
Parent owns or controls, directly or indirectly, 50% or more of the outstanding
shares of stock normally entitled to vote for the election of directors (or
comparable equity participation and voting power).

"Termination of Employment" means the discontinuance of employment of a
Participant for any reason other than a Transfer. In the event a Participant is
an employee of an entity that is a Parent, Subsidiary or Associated Company and
the entity ceases to be a Parent, Subsidiary or Associated Company, the
Participant shall be deemed to incur a Termination of Employment for all
purposes under this Incentive Plan as of the date such entity ceases to be a
Parent, Subsidiary or Associated Company.

"Transfer" means a change of employment of a Participant within the group
consisting of the Company and its Parent, Subsidiaries and Associated Companies,
unless the Committee determines otherwise in the grant instrument.

                                       3
<PAGE>
3. ADMINISTRATION

(a)   This Incentive Plan shall be administered by the Committee, except to the
      extent the Committee delegates administration pursuant to this paragraph.
      The Committee may by resolution delegate authority to one or more
      committees consisting of one or more officers (a "Subcommittee") to
      perform one or both of the following: (i) to select officers or salaried
      employees (including salaried directors) of the Company or a Subsidiary
      (but not of a Parent) who are to receive Stock Options, Stock Appreciation
      Rights, Dividend Equivalents, and/or other Awards that are valued in whole
      or in part by reference to, or are otherwise based on, Shares, and (ii) to
      determine the number of such Stock Options, Stock Appreciation Rights or
      Dividend Equivalents to be received by the selected officers or salaried
      employees; provided, however, that the Committee shall by resolution set
      forth the maximum number of Awards that may be made by any
      Subcommittee(s). Any such Subcommittee delegated authority by the
      Committee may not (x) select an officer who is a current member of such
      Subcommittee or a member of the Board to receive Awards as described in
      (i) above, or (y) grant any Award to a Reporting Person or to a "covered
      employee" under Section 162(m) of the Internal Revenue Code of 1986, as
      amended. Only the Committee shall make all determinations regarding Awards
      to Reporting Persons and/or "covered employees". Subject to applicable
      law, the Committee may also appoint employees of the Company or its
      Subsidiaries or third parties to act as its agents with respect to the
      administration of the Plan, including, but not limited to, the
      administration of the exercise of Awards granted under the Plan.

(b)   The Committee shall have the authority to interpret this Incentive Plan,
      to select the persons who are to receive Awards, and to act in all matters
      pertaining to the granting of Awards under this Incentive Plan including,
      without limitation, the timing, pricing, amount and terms of any Award and
      the amendment thereof consistent with the provisions of this Incentive
      Plan. No Eligible Participant shall have any right to be considered for or
      to receive any Awards. All acts and decisions of the Committee with
      respect to any questions arising in connection with the administration and
      interpretation of this Incentive Plan, including the severability of any
      and all of the provisions thereof, shall be conclusive, final and binding
      upon all Eligible Participants.

(c)   The Committee may adopt and amend from time to time rules and regulations
      of general application for the administration of this Incentive Plan,
      including, but not limited to, any forms, agreements, communications or
      practices deemed advisable by the Committee for use in administering the
      Plan pursuant to the most current technology.

(d)   Without limiting the foregoing Sections 3(a), (b) and (c) of this Article
      I (and notwithstanding any other provisions of this Incentive Plan), the
      Committee is authorized to take such action as it determines to be
      necessary or advisable, and fair and equitable to Participants, with
      respect to Awards in the event of: a merger of the Company with,
      consolidation of the Company into, or the acquisition of the Company by,
      another corporation; a sale or transfer of all or substantially all of the
      assets of the Company to

                                       4
<PAGE>
      another corporation or any other person or entity; a separation from the
      Company, including any spin-off or other distribution to stockholders
      other than an ordinary cash dividend; a tender or exchange offer for
      Shares made by any corporation, person or entity (other than the Company);
      or other reorganization in which the Company will not survive as an
      independent, publicly-owned corporation. Such action may include (but
      shall not be limited to) establishing, amending or waiving the forms,
      terms, conditions and duration of Stock Options, Stock Appreciation
      Rights, Awards of Restricted Shares, Performance Shares, Deferred Awards
      and other Awards so as to provide for earlier, later, extended or
      additional times for exercise or payments, differing methods for
      calculating payments, alternate forms and amounts of payment, accelerated
      release of restrictions or other modifications. The Committee may take
      such actions pursuant to this Section 3(d) by adopting rules and
      regulations of general applicability to all Participants or to certain
      categories of Participants, by including, amending or waiving terms and
      conditions in Awards (including, without limitation, agreements with
      respect to Restricted Shares), or by taking action with respect to
      individual Participants. The Committee may take such actions as part of
      the Awards, or before or after the public announcement of any such merger,
      consolidation, acquisition, sale or transfer of assets, separation, tender
      or exchange offer or other reorganization.

4. SHARE ADJUSTMENTS

In the event that at any time or from time to time a stock dividend, stock
split, recapitalization, merger, consolidation, or other change in
capitalization, or a sale by the Company of all or part of its assets, or a
separation from the Company, including any spin-off or other distribution to
stockholders other than an ordinary cash dividend, results in (a) the
outstanding Shares, or any securities exchanged therefor or received in their
place, being exchanged for a different number or class of shares of stock or
other securities of the Company, or for shares of stock or other securities of
any other corporation; or (b) new, different or additional shares or other
securities of the Company or of any other corporation being received by the
holders of outstanding Shares, then:

      (i)   the total number of Shares authorized for Awards under this
            Incentive Plan;

      (ii)  the number and class of Shares (A) that may be subject to Stock
            Options, Stock Appreciation Rights and other Awards, (B) which have
            not been issued or transferred under outstanding Stock Options,
            Stock Appreciation Rights or other Awards, and (C) which have been
            awarded but are undelivered under this Incentive Plan; and

      (iii) the purchase price to be paid per Share under outstanding Stock
            Options and the number of Shares to be transferred in settlement of
            outstanding Stock Appreciation Rights and other Awards;

shall in each case be appropriately adjusted by the Committee in its discretion;
provided, however, that all adjustments made as the result of the foregoing in
respect of each Stock Option which is granted as an Incentive Stock Option shall
be made so that such Stock Option shall

                                       5
<PAGE>
continue to be an Incentive Stock Option as defined in Section 422 of the
Internal Revenue Code of 1986, as may be amended from time to time.

5. SHARES AUTHORIZED

The total number of Shares for which awards may be granted under this Incentive
Plan shall not exceed 87,605,305 Shares. Notwithstanding the foregoing, the
total number of Shares that shall be available for Awards of Restricted or
unrestricted Shares (which shall include stock distributions pursuant to
Performance Shares, Deferred Awards and other stock-based awards as described in
Section 10 of Article II) shall be 1/2 of 1% of the total number of Shares
outstanding. The limitations in this Section 5 are subject to the adjustments
provided for in Section 4 of this Article I; the provisions of Section 1(b) of
Article II of this Incentive Plan; and the provisions of Section 3(d) of Article
III of this Incentive Plan.

The total number of Shares for which Awards may be granted under this Incentive
Plan to any one Eligible Participant shall not exceed in any three-year period
15% of the total number of Shares for which Awards may be made under this
Incentive Plan, subject to the adjustments provided for in Section 4 of this
Article I.

II. AWARDS

1. SHARES USED FOR AWARDS

(a)   The Shares for which Options may be granted under this Option Plan may be
      authorized but unissued Shares, or treasury Shares, or both.

(b)   In the event that any unexercised Stock Option granted hereunder lapses or
      ceases to be exercisable for any reason other than a surrender of the
      Option pursuant to Section l(c) of this Article II or the exercise of a
      Stock Appreciation Right under Section 5 of this Article II, the Shares
      subject to such Option shall again be available for Option grants under
      this Option Plan without again being charged against the authorized Shares
      set forth in Section 5 of Article I. Any amendment of any Option or Stock
      Appreciation Right by the Committee pursuant to Article I, Section 3 of
      this Incentive Plan shall not be considered the grant of a new Option for
      the purpose of Section 5 of Article I.

(c)   In the event of death or total and permanent disability as determined by
      the Committee, the Committee may, with the consent of the Participant, his
      legal representative, or in the event of death, a beneficiary designated
      in writing by the Participant during his lifetime, authorize payment, in
      cash or in Shares, or partly in cash and partly in Shares, as the
      Committee may direct, of an amount equal to the difference at the time
      between the Fair Market Value of the Shares subject to an Option and the
      Option price in consideration of the surrender of the Option. In such an
      event the Shares subject to the Option so surrendered shall be charged
      against the limitations set forth in Section 5 of Article I.

(d)   In the event that any Award or installment thereof ceases to be payable
      for any reason, the Shares subject to such Award shall again be available
      for Award without again being charged against the limitations on the
      number of Shares set forth in Section 5 of Article I.

                                       6
<PAGE>
2. INCIDENTS OF OPTIONS AND STOCK APPRECIATION RIGHTS

(a)   An Award of Stock Options or Stock Appreciation Rights may be made at such
      time or times determined by the Committee following the Effective Date to
      any Eligible Participant, except that Incentive Options may not be awarded
      to employees of Associated Companies. Each Stock Option and Stock
      Appreciation Right shall be granted subject to such terms and conditions,
      if any, not inconsistent with this Incentive Plan, as shall be determined
      by the Committee, including any provisions as to continued employment as
      consideration for the grant or exercise of such Option or Stock
      Appreciation Right, provisions as to performance conditions and any
      provisions which may be advisable to comply with applicable laws,
      regulations or rulings of any governmental authority.

(b)   The Committee shall have the discretionary authority to include in any
      stock option agreement a provision that entitles an optionee who is an
      Eligible Participant and who exercises a Stock Option, in whole or in
      part, by using previously owned Shares to be granted a replacement Stock
      Option exercisable for the number of Shares used to exercise the Stock
      Option. Any such replacement Stock Option shall be subject to the
      availability of sufficient Shares under Section 5 and shall be subject to
      such other terms and conditions to be determined by the Committee
      consistent with the terms of the Plan. No Participant shall have any right
      to the grant of a replacement Stock Option unless such right is approved
      by the Committee and included in the Participant's stock option agreement.

(c)   A Stock Option and any Stock Appreciation Right granted in connection with
      a Stock Option shall not be transferable by the Participant other than by
      will, by the laws of descent and distribution, or pursuant to a written
      beneficiary designation and shall be exercisable during the lifetime of
      the Participant only by him or her or by his or her guardian or legal
      representative. Notwithstanding the foregoing, the Senior Vice President
      of Human Resources of the Company, in his or her sole discretion, may
      allow the transfer, for no consideration to the Participant, of a
      Non-Qualified Stock Option to a Participant's "Immediate Family," pursuant
      to the terms and conditions approved by the Senior Vice President of Human
      Resources. In the event of such permitted transfer, the transferee shall
      take such Non-Qualified Option subject to the same restrictions, terms and
      conditions in the stock option agreement at the time of such transfer. For
      purposes of this subsection, "Immediate Family" shall mean (i) the
      Participant's children, grandchildren, spouse or common law spouse,
      siblings or parents, as well as (ii) a trust in which these persons (or
      the Participant) have more than fifty percent of the beneficial interest,
      a foundation in which these persons (or the Participant) control the
      management of assets, and any other entity in which these persons (or the
      Participant) own more than fifty percent of the voting interests.

(d)   Shares purchased upon exercise of a Stock Option shall be paid for in such
      amounts, at such times and upon such terms as shall be determined by the
      Committee and specified in the grant of the Option. Without limiting the
      foregoing, the Committee may establish payment terms for the exercise of
      Stock Options which permit the Participant to deliver

                                       7
<PAGE>
      Shares (or other evidence of ownership of Shares satisfactory to the
      Company), including, at the Committee's option, Restricted Shares, with a
      Fair Market Value equal to the Option price as payment. In addition, the
      Committee may establish from time to time such methods of exercising an
      Option or other right under the Plan as are consistent with current
      technology.

(e)   The Option price per share shall be established by the grant and shall not
      be decreased thereafter except pursuant to Section 4 of Article I of this
      Incentive Plan.

(f)   The Committee, in its discretion, may provide for the escalation of the
      Option price per Share over all or part of the term of the Option.

(g)   The Committee, in its discretion, may offer Participants the opportunity
      to elect to receive an Option grant in lieu of a salary increase or a
      bonus or may offer Participants the opportunity to purchase Options for
      cash or such other consideration as the Committee in its discretion
      determines.

3. INCENTIVE OPTIONS

An Incentive Option shall be an "Incentive Stock Option" as that term is defined
in Section 422 of the Internal Revenue Code of 1986, as may be amended from time
to time, as in effect at the time of the grant of any such Option, or any
statutory provision that may be enacted to replace such Section. Each provision
of this Incentive Plan and of each Incentive Stock Option granted hereunder
shall be construed so that each such Option shall be an Incentive Stock Option,
and any provision thereof that cannot be so construed shall be disregarded.
Incentive Stock Options shall be granted only to purchase unrestricted Shares
and only to Eligible Participants, each of whom may be granted one or more such
Options at such time or times determined by the Committee following the
Effective Date until April 14, 2006, subject to the following conditions:

(a)   The Option price per Share shall be set by the grant but shall not be less
      than 100% of the Fair Market Value at the time of the grant.

(b)   The Option and its related Stock Appreciation Right, if any, may be
      exercised in full or in part from time to time within ten (10) years from
      the date of the grant, or such shorter period as may be specified by the
      Committee in the grant, provided that in any event each shall lapse and
      cease to be exercisable upon, or within such period following, Termination
      of Employment as shall have been determined by the Committee and as
      specified in the Option or Stock Appreciation Right. The Committee may
      establish such terms for exercise of Options and Stock Appreciation Rights
      after Termination of Employment as it deems appropriate. Unless the
      Committee determines otherwise, such period following Termination of
      Employment shall not exceed twelve months unless employment shall have
      terminated:

            (i)   as a result of retirement as defined by the Committee or total
                  and permanent disability as determined by the Committee, in
                  which event such period shall not exceed--

                                      8
<PAGE>
                  (A)   in the case of an Option, the original term of the
                        Option; and

                  (B)   in the case of a Stock Appreciation Right, one year
                        after such retirement or disability or after resignation
                        as an officer or director of the Company, whichever
                        shall last occur (unless earlier terminated pursuant to
                        Section 5(b) of this Article II);

          or

            (ii)  as a result of death, or death shall have occurred following
                  Termination of Employment and while the Option or Stock
                  Appreciation Right was still exercisable; and

      provided, further, that such period following Termination of Employment
      shall in no event extend the original exercise period of the Option or
      related Stock Appreciation Right.

(c)   The aggregate Fair Market Value (determined at the time the Option is
      granted) of the Shares with respect to which Incentive Stock Options are
      first exercisable during any calendar year by any Eligible Participant
      shall not exceed $100,000; however, if the Fair Market Value of Incentive
      Stock Option Shares (at date of grant) exceeds $100,000 in the calendar
      year in which Incentive Stock Options are first exercisable, Shares with a
      Fair Market Value at date of grant exceeding $100,000 shall not be deemed
      to be Incentive Stock Options.

(d)   Incentive Stock Options shall be granted only to an Eligible Participant
      who, at the time the Option is granted, does not own stock possessing more
      than 10% of the total combined voting power of all classes of stock of the
      Company.

(e)   Any other terms and conditions which the Committee determines, upon advice
      of counsel, should be imposed for the Option to qualify as an Incentive
      Stock Option and any other terms and conditions not inconsistent with this
      Incentive Plan as determined by the Committee; including provisions making
      the Shares subject to such Option Restricted Shares or provisions making
      vesting or the ability to exercise subject to performance conditions.

4. NON-QUALIFIED OPTIONS

One or more Options may be granted as Non-Qualified Options to purchase
unrestricted Shares or Restricted Shares to an Eligible Participant at such time
or times determined by the Committee, following the Effective Date, subject to
the following terms and conditions:

(a)   The Option price per Share shall be established by the grant but shall not
      be less than 100% of the Fair Market Value at the time of the grant (or
      such later date as the Committee shall determine to be the grant date).

(b)   The Option and its related Stock Appreciation Right, if any, may be
      exercised in full or in

                                       9
<PAGE>
      part from time to time within ten (10) years from the date of the grant,
      or such shorter period as may be specified by the Committee in the grant,
      provided that in any event each shall lapse and cease to be exercisable
      upon, or within such period following Termination of Employment as shall
      have been determined by the Committee and as specified in the Option or
      Stock Appreciation Right. The Committee may establish such terms for
      exercise of Options and Stock Appreciation Rights after Termination of
      Employment as it deems appropriate. Unless the Committee determines
      otherwise, that such period following Termination of Employment shall not
      exceed twelve months unless employment shall have terminated:

            (i)   as a result of retirement as defined by the Committee or total
                  and permanent disability as determined by the Committee, in
                  which event such period shall not exceed--

            (ii)  in the case of an Option, the original term of the Option; and

            (iii) in the case of a Stock Appreciation Right, one year after such
                  retirement or disability or after resignation as an officer or
                  director of the Company, whichever shall last occur (unless
                  earlier terminated pursuant to Section 5(b) of this Article
                  II); or

            (iv)  as a result of death, or death shall have occurred following
                  Termination of Employment and while the Option or Stock
                  Appreciation Right was still exercisable; and

            provided, further, that such period following Termination of
            Employment shall in no event extend the original exercise period of
            the Option or related Stock Appreciation Right, if any.

(c)   The Option grant may include any other terms and conditions not
      inconsistent with this Incentive Plan as determined by the Committee,
      including provisions making the Shares subject to such Option Restricted
      Shares or provisions making vesting or the ability to exercise subject to
      the satisfaction of performance conditions.

5. STOCK APPRECIATION RIGHTS

A Stock Appreciation Right may be granted to an Eligible Participant in
connection with (and only in connection with) an Incentive Stock Option or a
Non-Qualified Option granted under this Incentive Plan, or under any other
incentive plan of the Company or its Subsidiaries which was approved by the
stockholders, subject to the following terms and conditions:

(a)   Such Stock Appreciation Right shall entitle a holder of an Option within
      the period specified for the exercise of the Option in the related Option
      grant to surrender the unexercised Option (or a portion thereof) and to
      receive in exchange therefor a payment in cash or Shares having an
      aggregate value equal to the product of (i) the amount by which (A) the
      SAR Fair Market Value of each Share exceeds (B) the Option price per
      Share, times (ii) the number of Shares under the Option, or portion
      thereof, which is

                                       10
<PAGE>
      surrendered.

(b)   Except as expressly provided herein, each Stock Appreciation Right granted
      hereunder shall be subject to the same terms and conditions as the related
      Option. It shall be exercisable only to the extent such Option is
      exercisable and shall terminate or lapse and cease to be exercisable when
      the related Option terminates or lapses. The Committee may grant Stock
      Appreciation Rights concurrently with grants of Options or in connection
      with previously granted Options under this Incentive Plan, or under any
      other incentive plan of the Company or its Subsidiaries which was approved
      by the stockholders, which are unexercised and have not terminated or
      lapsed. With respect to Stock Appreciation Rights granted in connection
      with such previously granted Options, the Committee shall provide that
      such Stock Appreciation Rights shall not be exercisable until the holder
      completes six (6) months (or such longer period as the Committee shall
      determine) of service with the Company, a Subsidiary, or an Associated
      Company immediately following the date of the grant of such Stock
      Appreciation Rights.

(c)   The Committee shall have sole discretion to determine in each case whether
      the payment will be in the form of all cash, all Shares (which may, at the
      Committee's discretion, be Restricted Shares), or any combination thereof.
      If payment is to be made in Shares, the number of Shares shall be
      determined as follows: the amount payable in Shares shall be divided by
      the SAR Fair Market Value of Shares.

(d)   Upon exercise of a Stock Appreciation Right, the number of Shares subject
      to exercise under the related Option shall automatically be reduced by the
      number of Shares represented by the Option or portion thereof which is
      surrendered. To the extent that a Stock Appreciation Right shall be
      exercised, any Shares transferred upon such exercise shall not be charged
      against the maximum limitations upon the grant of Options set forth in
      this Incentive Plan under which such Option shall have been granted but
      the Option in connection with which a Stock Appreciation Right shall have
      been granted shall be deemed to have been exercised for the purpose of
      such maximum limitations.

(e)   The Committee shall have sole discretion as to the timing of any payment
      made in cash, Shares, or a combination thereof upon exercise of Stock
      Appreciation Rights hereunder, whether in a lump sum, in annual
      installments or otherwise deferred and the Committee shall have sole
      discretion to determine whether such payments may bear amounts equivalent
      to interest or cash dividends.

(f)   For purposes of this paragraph 5(f) of Article II:

      (i)   "Unrelated Party" means any party or group of parties acting
            together other than (A) the Company, its directors and officers, or
            (B) any nominee holder for any stock exchange;

      (ii)  "Offer" means any tender or exchange offer made by an Unrelated
            Party for the Shares and shall be deemed to occur upon the first
            purchase or exchange of such Shares;

                                       11
<PAGE>
      (iii) "Change of Control" means

            (A) the acquisition by any individual, entity or group (a "Person"),
            including any "person" within the meaning of Section 13(d)(3) or
            14(d)(2) of the Exchange Act, of beneficial ownership within the
            meaning of Rule 13d-3 promulgated under the Exchange Act, of 33% or
            more of either (1) the then outstanding shares of Common Stock of
            the Company (the "Outstanding Company Common Stock") or (2) the
            combined voting power of the then outstanding securities of the
            Company entitled to vote generally in the election of directors (the
            "Outstanding Company Voting Securities"); provided, however, that
            the following acquisitions of Outstanding Company Common Stock or
            Outstanding Company Voting Securities shall not constitute a Change
            in Control: (a) any acquisition by the Company, (b) any acquisition
            by an employee benefit plan (or related trust) sponsored or
            maintained by the Company or any corporation controlled by the
            Company, or (c) any acquisition by any corporation pursuant to a
            reorganization, merger or consolidation involving the Company, if,
            immediately after such reorganization, merger or consolidation, each
            of the conditions described in clauses (1), (2) and (3) of
            subsection (f)(C) of this Section shall be satisfied; and provided
            further that, for purposes of clause (a), if any Person (other than
            the Company or any employee benefit plan (or related trust)
            sponsored or maintained by the Company or any corporation controlled
            by the Company) shall become the beneficial owner of 33% or more of
            the Outstanding Company Common Stock or 33% or more of the
            Outstanding Company Voting Securities by reason of any acquisition
            of Outstanding Company Common Stock or Outstanding Company Voting
            Securities by the Company and such Person shall, after such
            acquisition by the Company, become the beneficial owner of any
            additional shares of the Outstanding Company Common Stock or any
            additional Outstanding Voting Securities and such beneficial
            ownership is publicly announced, such additional beneficial
            ownership shall constitute a Change in Control;

            (B) individuals who, as of the date hereof, constitute the Board
            (the "Incumbent Board") cease for any reason to constitute at least
            a majority of such Board; provided, however, that any individual who
            becomes a director of the Company subsequent to the date hereof
            whose election, or nomination for election by the Company's
            stockholders, was approved by the vote of at least three-quarters of
            the directors then comprising the Incumbent Board (either by a
            specific vote or by approval of the proxy statement of the Company
            in which such person is named as a nominee for director, without
            objection to such nomination) shall be deemed to have been a member
            of the Incumbent Board; and provided further, that no individual who
            was initially elected as a director of the Company as a result of an
            actual or threatened election contest, as such terms are used in
            Rule 14a-11 of Regulation 14A promulgated under the Exchange Act, or
            any other actual or threatened solicitation of proxies or consents
            by or on behalf of any Person other than the Board shall be deemed
            to have been a member of the Incumbent Board;

            (C) approval by the stockholders of the Company of a reorganization,
            merger or

                                       12
<PAGE>
            consolidation involving the Company unless, in any such case,
            immediately after such reorganization, merger or consolidation, (1)
            more than 50% of the then outstanding shares of common stock of the
            corporation resulting from such reorganization, merger or
            consolidation and more than 50% of the combined voting power of the
            then outstanding securities of such corporation entitled to vote
            generally in the election of directors is then beneficially owned,
            directly or indirectly, by all or substantially all of the
            individuals or entities who were the beneficial owners,
            respectively, of the Outstanding Company Common Stock and the
            Outstanding Company Voting Securities immediately prior to such
            reorganization, merger or consolidation and in substantially the
            same proportions relative to each other as their ownership,
            immediately prior to such reorganization, merger or consolidation,
            of the Outstanding Company Common Stock and the Outstanding Company
            Voting Securities, as the case may be, (2) no Person (other than the
            Company, any employee benefit plan (or related trust) sponsored or
            maintained by the Company or the corporation resulting from such
            reorganization, merger or consolidation (or any corporation
            controlled by the Company), or any Person which beneficially owned,
            immediately prior to such reorganization, merger or consolidation,
            directly or indirectly, 33% or more of the Outstanding Company
            Common Stock or the Outstanding Company Voting Securities, as the
            case may be) beneficially owns, directly or indirectly, 33% or more
            of the then outstanding shares of common stock of such corporation
            or 33% or more of the combined voting power of the then outstanding
            securities of such corporation entitled to vote generally in the
            election of directors and (3) at least a majority of the members of
            the board of directors of the corporation resulting from such
            reorganization, merger or consolidation were members of the
            Incumbent Board at the time of the execution of the initial
            agreement or action of the Board providing for such reorganization,
            merger or consolidation; or

            (D) (1) approval by the stockholders of the Company of a plan of
            complete liquidation or dissolution of the Company or (2) the sale
            or other disposition of all or substantially all of the assets of
            the Company other than to a corporation with respect to which,
            immediately after such sale or other disposition, (a) more than 50%
            of the then outstanding shares of common stock thereof and more than
            50% of the combined voting power of the then outstanding securities
            thereof entitled to vote generally in the election of directors is
            then beneficially owned, directly or indirectly, by all or
            substantially all of the individuals and entities who were the
            beneficial owners, respectively, of the Outstanding Company Common
            Stock and the Outstanding Company Voting Securities immediately
            prior to such sale or other disposition and in substantially the
            same proportions relative to each other as their ownership,
            immediately prior to such sale or other disposition, of the
            Outstanding Company Common Stock and the Outstanding Company Voting
            Securities, as the case may be, (b) no Person (other than the
            Company, any employee benefit plan (or related trust) sponsored or
            maintained by the Company or such corporation (or any corporation
            controlled by the Company), or any Person which beneficially owned,
            immediately prior to such sale or other disposition, directly or
            indirectly, 33% or more of the Outstanding Company

                                       13
<PAGE>
            Common Stock or the Outstanding Company Voting Securities, as the
            case may be) beneficially owns, directly or indirectly, 33% or more
            of the then outstanding shares of common stock thereof or 33% or
            more of the combined voting power of the then outstanding securities
            thereof entitled to vote generally in the election of directors and
            (c) at least a majority of the members of the board of directors
            thereof were members of the Incumbent Board at the time of the
            execution of the initial agreement or action of the Board providing
            for such sale or other disposition (or were approved directly or
            indirectly by the Incumbent Board).

      (iv)  "Change of Control Market Value"of the Shares means the higher of--

            (A) the value for which such Shares may be exchanged or offered
            under any Offer pursuant to which Shares are actually exchanged or
            purchased; or

            (B) the Fair Market Value of such Shares on the date of exercise of
            a Stock Appreciation Right.

      Notwithstanding the foregoing provisions of this Section 5 of Article II
      and without limiting the provisions of Section 3 of Article I of this
      Incentive Plan, in the event of an Offer or Change of Control, a
      Participant holding an unexercised Stock Appreciation Right may exercise
      such Stock Appreciation Right and elect to be paid solely in cash in an
      amount equal to the difference between the Option price and the Change of
      Control Market Value of the Shares, unless within five (5) business days
      after receipt of notification of such election by the Secretary of the
      Company, the Committee acts to disapprove the cash election. Unless it
      acts to disapprove, the Committee's consent shall be deemed to be given at
      the close of business on the fifth business day after the Secretary's
      receipt of notification of such election and payment shall be made as soon
      as practicable after expiration of such five (5) business day period. The
      election provided herein shall apply only: (x) during the thirty (30) day
      period following the first exchange or purchase of Shares pursuant to an
      Offer; or (y) during the thirty (30) day period following the date on
      which sufficient Shares are acquired to constitute a Change of Control.

(g) For purposes of this paragraph 5(g) of Article II:

      (i)   "Unrelated Party" means any party or group of parties acting
            together other than (A) the Company, its directors and officers, or
            (B) any nominee holder for any stock exchange;

      (ii)  "Alternate Change of Control" means any acquisition, beneficially or
            otherwise, by any Unrelated Party of a percentage of the combined
            voting power of the common and preferred stock of the Company
            specified by the Committee (but not less than 10%) and shall be
            deemed to occur upon the date that the Unrelated Party attains
            control of said percentage of the combined voting power;

      (iii) "Change of Control Termination of Employment" means the termination
            of employment of a Participant by the Company, the Subsidiaries or
            the Associated

                                       14
<PAGE>
            Companies without cause (as defined by the Committee) or by the
            Participant for good reason (as defined by the Committee) within a
            period of time specified by the Committee following an Alternate
            Change of Control;

      (iv)  "Alternate Change of Control Market Value" of the Shares means the
            Fair Market Value of such Shares on the date of exercise of a Stock
            Appreciation Right.

      Notwithstanding the foregoing provisions of this Section 5 of Article II
      and without limiting the provisions of Section 3 of Article I of this
      Incentive Plan, in the event of an Alternate Change of Control and a
      Change of Control Termination of Employment, a Participant holding an
      unexercised Stock Appreciation Right who is selected by the Committee may
      exercise such Stock Appreciation Right and elect to be paid solely in cash
      in an amount equal to the difference between the Option price and the
      Alternate Change of Control Market Value of the Shares, unless within five
      (5) business days after receipt of notification of such election by the
      Secretary of the Company, the Committee acts to disapprove the cash
      election. Unless it acts to disapprove, the Committee's consent shall be
      deemed to be given at the close of business on the fifth business day
      after the Secretary's receipt of notification of such election and payment
      shall be made as soon as practicable after expiration of such five (5)
      business day period. The election provided herein shall apply only during
      the thirty (30) day period following a Change of Control Termination of
      Employment.

6. BONUS SHARES AND RESTRICTED SHARES

(a)   An Award of Shares or Restricted Shares may be made at such time or times
      determined by the Committee following the Effective Date to any person who
      is an Eligible Participant. The Committee shall have full discretion to
      determine the terms and conditions of payment of any Award, including
      without limitation, what part of such Award shall be paid in unrestricted
      Shares or Restricted Shares, the time or times of payment of any Award,
      and the time or times of the lapse of the restrictions on Restricted
      Shares.

(b)   For the purpose of determining the number of Shares to be used in payment
      of an Award, the amount of the Award payable in Shares shall be divided by
      the Fair Market Value of the Shares on the date of the determination of
      the amount of the Award by the Committee, or if the Committee so directs,
      the date immediately preceding the date the Award is paid.

(c)   The portion of an Award payable in Restricted Shares shall be paid at the
      time of the Award either by book-entry registration or by delivering to
      the Participant, or a custodian or escrow designated by the Committee and
      the Participant, a certificate or certificates for such Restricted Shares,
      registered in the name of such Participant. The Participant shall have all
      of the rights of a stockholder with respect to such Shares, subject to
      such terms and conditions, including withholding of dividends, forfeitures
      or resale to the Company, if any, as may be determined by the Committee.
      The Committee and the Participant may designate the Company or one or more
      of its employees to act as custodian or escrow for

                                       15
<PAGE>
      the certificates.

(d)   Restricted Shares shall be subject to such terms and conditions, including
      forfeiture, if any, and to such restrictions against sale, transfer or
      other disposition as may be determined by the Committee at the time a
      Non-Qualified Option for the purchase of Restricted Shares is granted, at
      the time a Stock Appreciation Right to be settled with Restricted Shares
      is granted or at the time of making a bonus award of Restricted Shares.
      Any new or additional or different Shares or other securities resulting
      from any adjustment of such Shares of the type described in Section 4 of
      Article I shall be subject to the same terms, conditions, and restrictions
      as the Restricted Shares prior to such adjustment. The Committee may, in
      its discretion, remove, modify or accelerate the release of restrictions
      on any Restricted Shares in the event of hardship or disability of the
      Participant while employed, in the event that the Participant ceases to be
      an employee of the Company, a Subsidiary or Associated Company, as the
      result of death or otherwise, in the event of a relocation of a
      Participant to another country or for such other reasons as the Committee
      may deem appropriate. In the event of the death of a Participant following
      the transfer of Restricted Shares to him, the legal representative of the
      Participant, the beneficiary designated in writing by the Participant
      during his lifetime, or the person receiving such Shares under his will or
      under the laws of descent and distribution shall take such Shares subject
      to the same restrictions, conditions and provisions in effect at the time
      of his death, to the extent applicable.

7. DIVIDENDS, DIVIDEND EQUIVALENTS AND INTEREST EQUIVALENTS

(a)   No cash dividends shall be paid on Shares which have been awarded but not
      registered or delivered. The Committee may provide, however, that a
      Participant to whom an Option has been awarded which is exercisable in
      whole or in part at a future time for Shares or a Participant who has been
      awarded Shares payable in whole or in part at a future time, shall be
      entitled to receive an amount per Share, equal in value to the cash
      dividends, if any, paid per Share on issued and outstanding Shares, as of
      the dividend record dates occurring during the period between the date of
      the award and the time each such Share is delivered. Such amounts (herein
      called "dividend equivalents") may, in the discretion of the Committee,
      be:

            (i)   paid in cash or Shares either from time to time prior to or at
                  the time of the delivery of such Shares or upon expiration of
                  the Option if it shall not have been fully exercised (except
                  that payment of the dividend equivalents on Incentive Options
                  may not be made prior to exercise); or

            (ii)  converted into contingently credited Shares (with respect to
                  which dividend equivalents shall accrue) in such manner, at
                  such value, and deliverable at such time or times, as may be
                  determined by the Committee.

            Such Shares (whether delivered or contingently credited) shall be
            charged against the limitations set forth in Section 5 of Article I.

                                       16
<PAGE>
(b)   The Committee, in its discretion, may authorize payment of interest
      equivalents on any portion of any Award payable at a future time in cash,
      and interest equivalents on dividend equivalents which are payable in cash
      at a future time.

(c)   The Committee, in its discretion, may provide that dividends paid on
      restricted Shares shall, during the applicable restricted period, be held
      by the Company to be paid upon the lapse of restrictions or to be
      forfeited upon forfeiture of the Shares.

8. PERFORMANCE SHARES.

Performance Shares may be granted under the Incentive Plan in such form as the
Committee may from time to time approve pursuant to the terms set forth in a
performance share agreement.

(a)   Performance Shares may be granted in the form of actual Shares or Share
      units having a value equal to an identical number of Shares.

(b)   The performance conditions and the length of the performance period shall
      be determined by the Committee, but in no event may a performance period
      be less than 12 months, except upon a change in control of the Company.

(c)   The Committee shall determine in its sole discretion whether Performance
      Shares granted in the form of Share units shall be paid in cash, Shares,
      or a combination of cash and Shares (based upon Fair Market Value of the
      Shares as of the date of exercise or the end of the performance period, as
      the case may be).

(d)   Except as otherwise determined by the Committee at or subsequent to grant,
      a Participant must be employed as of the end of the relevant performance
      period to be entitled to receive payment with respect to a Performance
      Share Award.

9. DEFERRED AWARDS

The Committee shall have the discretion to grant Awards of the right to receive
Shares that are not to be distributed until after a specified deferral period.
Such Awards may be made either alone or in addition to other Awards granted
under the Incentive Plan. If the attainment of performance goals are specified,
the Committee shall certify attainment of such performance goals prior to any
delivery of deferred Shares. Prior to completion of the deferral period, a
Participant may elect to further defer receipt of an Award for a specified
period or until a specified event, subject in each case to the approval of the
Committee and under such terms as are determined by the Committee in its sole
discretion. The Committee shall determine in its sole discretion whether such
Deferred Awards shall be paid in cash, Shares or a combination of cash and
Shares.

10. OTHER STOCK-BASED AWARDS

The Committee may grant other Awards of Shares and Awards that are valued in
whole or in part by reference to, or are otherwise based on, Shares, including
(without limitation) dividend equivalents and convertible debentures, either
alone or in addition to other Awards granted under

                                       17
<PAGE>
the Plan. Any Awards under this Section 10 and any Shares covered by any such
Award may be forfeited to the extent so provided in the Award agreement, as
determined by the Committee.

III. MISCELLANEOUS PROVISIONS

      1.    No Award shall be transferable except as provided for herein. If any
            Participant makes such a transfer in violation hereof, any
            obligation of the Company with respect to such Award shall forthwith
            terminate.

      2.    Nothing in this Incentive Plan or any booklet or other document
            describing or referring to this Incentive Plan shall be deemed to
            confer on any employee or Participant the right to continue in the
            employ of his employer or affect the right of his employer to
            terminate the employment of any such person with or without cause.

      3.    Nothing contained herein shall require the Company to segregate any
            monies from its general funds, or to create any trusts, or to make
            any special deposits for any immediate or deferred amounts payable
            to any Participant.

      4.    This Incentive Plan and all actions taken hereunder shall be
            governed by the laws of the State of Delaware.

      5.    The Company may make such provisions and take such steps as it may
            deem necessary or appropriate for the withholding of any taxes which
            the Company is required by any law or regulation of any governmental
            authority, whether federal, state or local, domestic or foreign, to
            withhold in connection with any Stock Option or the exercise
            thereof, any Stock Appreciation Right or the exercise thereof, or
            the payment of any other Award, including, but not limited to, the
            withholding of cash or Shares which would be paid or delivered
            pursuant to such exercise or award or another exercise or award
            under this Incentive Plan until the Participant reimburses the
            Company for the amount the Company is required to withhold with
            respect to such taxes, or canceling any portion of such award or
            another award under this Incentive Plan in an amount sufficient to
            reimburse itself for the amount it is required to so withhold, or
            selling any property contingently credited by the Company for the
            purpose of paying such award or another award under this Incentive
            Plan, in order to withhold or reimburse itself for the amount it is
            required to so withhold. The Committee may permit a Participant (or
            any beneficiary or other person authorized to act) to elect to pay a
            portion or all of any amounts required to be withheld to satisfy
            federal, state, local or foreign tax obligations by directing the
            Company to withhold a number of whole Shares which would otherwise
            be distributed and which have a fair market value sufficient to
            cover the amount of such required withholding taxes (in an amount
            not exceeding the minimum applicable tax withholding amount required
            to satisfy federal (including FICA), state, local and foreign tax
            withholding requirements).

      6.    The Committee may grant Stock Options to Eligible Participants who
            are foreign

                                       18
<PAGE>
            nationals or who are employed by the Company, a Subsidiary, or an
            Associated Company outside of the United States of America. In order
            to facilitate the granting of Stock Options, the Committee may
            provide for special terms and conditions for grants to employees who
            are foreign nationals or who are employed by the Company, a Parent,
            a Subsidiary, or an Associated Company outside of the United States
            of America, as the Committee may consider necessary or appropriate
            to accommodate differences in local law, tax policy or custom in
            other countries in which the Company, a Parent, a Subsidiary, or an
            Associated Company operates or has employees. Such special terms may
            include, without limitation, granting Stock Options with a term
            longer than ten years if appropriate to assure favorable tax
            treatment. The Committee may also provide for such substitutes for
            the Stock Options for employees who are foreign nationals or who are
            employed by the Company, a Parent, a Subsidiary, or an Associated
            Company outside of the United States of America as may be deemed
            necessary or appropriate by the Committee.

            Available Information: Each Malaysian Participant may request copies
            of the Company's most recent audited financial statements available.

      7.    Notwithstanding any other provision of this Incentive Plan, for
            purposes of any Award that is outstanding as of the date that the
            Company spins off the Company's chemical businesses into a new
            publicly traded company ("Chemicals") and is held by a Participant
            who in connection with such spinoff becomes an employee of Chemicals
            (or a subsidiary or associated company of Chemicals) rather than an
            employee of the Company (or a Subsidiary or Associated Company of
            the Company), such change of employment shall not constitute a
            Termination of Employment. With respect to any such Award held by
            such a Participant, Termination of Employment shall mean such
            Participant's termination of employment with Chemicals other than a
            Transfer, with Transfer defined as a change of employment of a
            Participant within the group consisting of Chemicals and its
            subsidiaries, or, if the Committee so determines, a change of
            employment of a Participant within the group consisting of
            Chemicals, its subsidiaries, and its associated companies. For
            purposes of this section, a subsidiary of Chemicals means any
            corporation (or partnership, joint venture, or other enterprise) of
            which Chemicals owns or controls, directly or indirectly, 50% or
            more of the outstanding shares of stock normally entitled to vote
            for the election of directors (or comparable equity participation
            and voting power) and an associated company of Chemicals means any
            corporation (or partnership, joint venture, or other enterprise), of
            which Chemicals owns or controls, directly or indirectly, 10% or
            more, but less than 50% of the outstanding shares of stock normally
            entitled to vote for the election of directors (or comparable equity
            participation and voting power).

IV. AMENDMENTS

      1.    The Board, upon recommendation of the Committee but not otherwise,
            may from

                                       19
<PAGE>
            time to time amend or modify this Incentive Plan, including, but not
            limited to, an amendment which would authorize the Committee to make
            Awards payable in other securities or other forms of property of a
            kind to be determined by the Committee, and such other amendments as
            may be necessary or desirable to implement such Awards, or
            discontinue this Incentive Plan or any provision thereof, provided
            that no amendments or modifications to this Incentive Plan shall,
            without the prior approval of the stockholders normally entitled to
            vote for the election of directors of the Company:

            (a)   permit the Company to decrease the Option price on any
                  outstanding Option;

            (b)   permit any change which would require the approval of
                  stockholders under Section 16 of the Exchange Act or the rules
                  thereunder or under Section 422 of the Internal Revenue Code
                  of 1986, or the rules thereunder (or any law, rule, regulation
                  or other provision that may replace such statutes or rules);
                  or

            (c)   change any of the provisions of this Article IV.

      2.    No amendment to or discontinuance of this Incentive Plan or any
            provision thereof by the Board or the stockholders of the Company
            shall, without the written consent of the Participant, adversely
            affect any Stock Option or Stock Appreciation Right theretofore
            granted or bonus commitment or bonus award theretofore made to such
            Participant under this Incentive Plan.

V. INTERPRETATION

      1.    This Incentive Plan is not intended to and shall not affect any
            option or stock appreciation right grant or bonus commitment or
            award under the 1984 Plan, the 1986 Plan, the 1988/I Plan, the
            1988/II Plan, the 1991 Plan, the 1994 Plan, the 1994 Searle/Monsanto
            Plan, or the 1994 NutraSweet/Monsanto Plan (or any other incentive
            plan of the Company, its Subsidiaries, and Associated Companies). No
            stock options or stock appreciation rights or Awards of Restricted
            or unrestricted Shares shall be granted under the 1994 Plan, the
            1994 Searle/Monsanto Plan, or the 1994 NutraSweet/Monsanto Plan
            after April 14, 1996.

      2.    This Incentive Plan is not intended to and shall not preclude the
            establishment or operation by the Company or any Subsidiary of (a)
            any thrift, savings and investment, achievement award, stock
            purchase, employee recognition or other benefit plan or arrangement
            for any group of employees, or (b) any other incentive or bonus plan
            or arrangement for any employees (hereinafter "Other Plan"), and any
            such Other Plan may be authorized and payments made thereunder
            independently of this Incentive Plan; provided, however, that no
            such Other Plan shall provide for the granting of options or stock
            appreciation rights to purchase or receive the appreciation on the
            shares of any class of stock of the

                                       20
<PAGE>
            Company, or the making of bonus commitments or bonus awards payable
            in any class of stock of the Company, which in either form or
            substance are comparable to those authorized under this Incentive
            Plan, unless (i) such Other Plan is established or operated in
            connection with the assumption by the Company or a Subsidiary of the
            plans, options, stock appreciation rights, bonus commitments or
            bonus awards of another corporation, or the substitution of an Other
            Plan or options, stock appreciation rights, bonus commitments or
            bonus awards under such Other Plan in lieu of the plans, options,
            stock appreciation rights, bonus commitments or bonus awards of such
            other corporation, arising out of a merger or consolidation with, or
            the acquisition of assets or stock of, such other corporation, or
            other transaction described in Section 424(a) of the Internal
            Revenue Code of 1986, as may be amended from time to time, as in
            effect at the time, or (ii) such Other Plan provides for grants of
            options, stock appreciation rights, bonus commitments or bonus
            awards to employees substantially all of whom are not Participants.

                                       21

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}]]