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                                                                   EXHIBIT 10.20

                       CHANGE IN CONTROL SEVERANCE AGREEMENT

         THIS AGREEMENT, dated as of March 1, 2002, is made by and between
ZIMMER HOLDINGS, INC., a Delaware corporation (the "Company"), and Sheryl L.
Conley (the "Executive"). The capitalized words and terms used throughout this
Agreement are defined in Article XIII.

                                    RECITALS

         A.       The Company considers it essential to the best interests of
its shareholders to foster the continuous employment of key management
personnel.

         B.       The Board recognizes that, as is the case with many
publicly held corporations, the possibility of a Change in Control exists and
that such a possibility, and the uncertainty and questions that it may raise
among management, may result in the departure or distraction of management
personnel to the detriment of the Company and its shareholders.

         C.       The Board has determined that appropriate steps should be
taken to reinforce and encourage the continued attention and dedication of
members of the Company's management, including the Executive, to their assigned
duties without distraction in the face of potentially disturbing circumstances
arising from the possibility of a Change in Control.

         D.       The parties intend that no amount or benefit will be
payable under this Agreement unless a termination of the Executive's employment
with the Company occurs following a Change in Control or is deemed to have
occurred following a Change in Control as provided in this Agreement.

                                    AGREEMENT

         In consideration of the premises and the mutual covenants and
agreements set forth below, the Company and the Executive agree as follows:

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                                   ARTICLE I

                              TERM OF AGREEMENT

         Term of Agreement This Agreement will commence on the date stated above
and will continue in effect through December 31, 2003. Beginning on January 1,
2004, and each subsequent January 1, the term of this Agreement will
automatically be extended for one additional year, unless either party gives the
other party notice not to extend this Agreement at least 30 days before the
extension would otherwise become effective or unless a Change in Control occurs.
If a Change in Control occurs during the term of this Agreement, this Agreement
will continue in effect for a period of 24 months from the end of the month in
which the Change in Control occurs. Notwithstanding the foregoing provisions of
this Article, this Agreement will terminate on the Executive's Retirement Date.

                                   ARTICLE II

                   COMPENSATION OTHER THAN SEVERANCE PAYMENTS

         SECTION 2.01. Disability Benefits. Following a Change in Control and
during the term of this Agreement, during any period that the Executive fails to
perform the Executive's full-time duties with the Company as a result of
Disability, the Executive will receive short-term and long-term disability
benefits no less favorable than those provided under the terms of the Company's
short-term and long-term disability plans as in effect immediately prior to the
Change in Control, together with all other compensation and benefits payable to
the Executive pursuant to the terms of any compensation or benefit plan,
program, or arrangement maintained by the Company during the period of
Disability.

         SECTION 2.02. Compensation Previously Earned. If the Executive's
employment is terminated for any reason following a Change in Control and during
the term of

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this Agreement, the Company will pay the Executive's salary accrued through the
Date of Termination, at the rate in effect at the time the Notice of Termination
is given, together with all other compensation and benefits payable to the
Executive through the Date of Termination (including, without limitation, any
incentive compensation amounts owed the Executive for a completed calendar year
to the extent not yet paid) under the terms of any compensation or benefit plan,
program, or arrangement maintained by the Company during that period.

         SECTION 2.03. Normal Post-Termination Compensation and Benefits. Except
as provided in Section 3.01, if the Executive's employment is terminated for any
reason following a Change in Control and during the term of this Agreement, the
Company will pay the Executive the normal post-termination compensation and
benefits payable to the Executive under the terms of the Company's retirement,
insurance, and other compensation or benefit plans, programs, and arrangements,
as in effect immediately prior to the Change in Control. This provision does not
restrict the Company's right to amend, modify, or terminate any plan, program,
or arrangement prior to a Change in Control.

         SECTION 2.04. No Duplication. Notwithstanding any other provision of
this Agreement to the contrary, the Executive will not be entitled to duplicate
benefits or compensation under this Agreement and the terms of any other plan,
program, or arrangement maintained by the Company or any affiliate.

                                  ARTICLE III

                               SEVERANCE PAYMENTS

         SECTION 3.01. Payment Triggers.

         (a)      In lieu of any other severance compensation or
benefits to which the Executive may otherwise be entitled under any plan,
program, policy, or arrangement of the

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Company (and which the Executive hereby expressly waives), the Company will pay
the Executive the Severance Payments described in Section 3.02 upon termination
of the Executive's employment following a Change in Control and during the term
of this Agreement, in addition to the payments and benefits described in Article
II, unless the termination is (1) by the Company for Cause, (2) by reason of the
Executive's death, or (3) by the Executive without Good Reason.

         (b)      For purposes of this Section 3.01, the Executive's
employment will be deemed to have been terminated following a Change in Control
by the Company without Cause or by the Executive with Good Reason if (1) the
Executive's employment is terminated without Cause prior to a Change in Control
at the direction of a Person who has entered into an agreement with the Company,
the consummation of which will constitute a Change in Control; or (2) the
Executive terminates his employment with Good Reason prior to a Change in
Control (determined by treating a Potential Change in Control as a Change in
Control in applying the definition of Good Reason), if the circumstance or event
that constitutes Good Reason occurs at the direction of such a Person.

         (c)      The Severance Payments described in this Article III are
subject to the conditions stated in Article VI.

         SECTION 3.02. Severance Payments. The following are the Severance
Payments referenced in Section 3.01:

         (a)      Lump Sum Severance Payment. In lieu of any further salary
payments to the Executive for periods after the Date of Termination, and in lieu
of any severance benefits otherwise payable to the Executive, the Company will
pay to the Executive a lump sum severance payment, in cash, equal to twelve (or,
if less, the number of months, including fractions, from the Date of Termination
until the Executive reaches his Retirement Date), times

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the sum of (1) the higher of the Executive's monthly base salary in effect
immediately prior to the event or circumstance upon which the Notice of
Termination is based or in effect immediately prior to the Change in Control,
and (2) one-twelfth the amount of the Executive's target annual bonus
entitlement under the Incentive Plan (or any other bonus plan of the Company
then in effect) as in effect immediately prior to the event or circumstance
giving rise to the Notice of Termination. If the Board determines that it is not
workable to determine the amount that the Executive's target bonus would have
been for the year in which the Notice of Termination was given, then, for
purposes of this paragraph (a), the Executive's target annual bonus entitlement
will be the amount of the largest aggregate annual bonus paid to the Executive
with respect to the three years immediately prior to the year in which the
Notice of Termination was given.

         (b)      Incentive Compensation. Notwithstanding any provision of
the Incentive Plan or any other compensation or incentive plans of the Company,
the Company will pay to the Executive a lump sum amount, in cash, equal to the
sum of (1) any incentive compensation that has been allocated or awarded to the
Executive for a completed calendar year or other measuring period preceding the
Date of Termination ( to the extent not payable pursuant to Section 2.02), and
(2) a pro rata portion (based on elapsed time) to the Date of Termination of the
aggregate value of all contingent incentive compensation awards to the Executive
for the current calendar year or other measuring period under the Incentive
Plan, the Award Plan, or any other compensation or incentive plans of the
Company, calculated as to each such plan using the Executive's annual target
percentage under that plan for that year or other measuring period and as if all
conditions for receiving that target award had been met.

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         (c)      Options and Restricted Shares. All outstanding Options
will become immediately vested and exercisable (to the extent not yet vested and
exercisable as of the Date of Termination). To the extent not otherwise provided
under the written agreement evidencing the grant of any restricted Shares to the
Executive, all outstanding Shares that have been granted to the Executive
subject to restrictions that, as of the Date of Termination, have not yet lapsed
will lapse automatically upon the Date of Termination, and the Executive will
own those Shares free and clear of all such restrictions.

         (d)      Additional Pension Benefit. In addition to the retirement
benefits to which the Executive is entitled under the Retirement Plan and BEP,
or any successors to those plans, the Company will pay the Executive an
additional amount under the BEP (or a successor plan) equal to the excess of (1)
over (2), where (1) is the retirement pension (determined as a straight life
annuity commencing on the Executive's Retirement Date) that the Executive would
have accrued under the terms of the Retirement Plan and BEP (without regard to
any amendment to the Retirement Plan or BEP that is made subsequent to a Change
in Control and on or prior to the Date of Termination and that adversely affects
in any manner the computation of the Executive's retirement benefits),
determined as if the Executive (a) were fully vested under the Retirement Plan
and the BEP, and (b) had accumulated (after the Date of Termination) 12
additional months of age and service credit under the Retirement Plan and the
BEP at the higher of (i) the Executive's highest annual rate of compensation (as
compensation is defined for purposes of the BEP) in effect during the three
years immediately preceding the Date of Termination, or (ii) the sum of the
Executive's annual salary and target annual bonus in effect immediately prior to
the Change in Control (but in no event will the Executive be deemed to have
accumulated additional service credit in excess of the maximum permitted
pursuant to the Retirement Plan and BEP);

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and (2) is the retirement pension (determined as a straight life annuity
commencing on the Executive's Retirement Date) that the Executive had then
accrued pursuant to the respective provisions of the Retirement Plan and BEP.
This additional amount will be paid in the form and at the time or times that
the relevant benefits are payable to the Executive under the BEP or any
successor plan; provided, however, that if the transaction constituting the
Change in Control has not been approved by the Board prior to its consummation,
the actuarial equivalent of the additional benefits under this Section 3.02(d)
will be paid in a cash lump sum. The Executive understands and acknowledges that
the additional retirement benefit described in this Section 3.02(d) is payable
entirely under the BEP, a nonqualified plan, and will not be subject to any
special tax treatment applicable to benefits under the Retirement Plan and other
tax-qualified plans.

         (e)      Welfare Benefits. Except as otherwise provided in this
Section 3.02(e), for a 12-month period after the Date of Termination, the
Company will arrange to provide the Executive with life insurance benefits
substantially similar to those that the Executive is receiving from the Company
immediately prior to the Notice of Termination (without giving effect to any
reduction in those benefits subsequent to a Change in Control). Life insurance
benefits otherwise receivable by the Executive pursuant to the preceding
sentence will be reduced to the extent comparable benefits are actually received
by or made available to the Executive without greater cost to him than as
provided by the Company during the 12-month period following the Executive's
termination of employment (and the Executive will report to the Company any such
benefits actually received by or made available to the Executive). If, as of the
Date of Termination, the Company reasonably determines that the continued life
insurance coverage required by this Section 3.02(e) is not available from the
Company's group insurance

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carrier, cannot be procured from another carrier, and cannot be provided on a
self-insured basis without adverse tax consequences to the Executive or his
death beneficiary, then, in lieu of continued life insurance coverage, the
Company will pay the Executive a lump sum payment, in cash, equal to 12 times
the full monthly premium payable to the Company's group insurance carrier for
comparable coverage for an executive employee under the Company's group life
insurance plan then in effect.

         The Company will offer the Executive and any eligible family members
the opportunity to elect to continue medical and dental coverage pursuant to the
continuation coverage requirements of the Consolidated Omnibus Budget
Reconciliation Act of 1985, as amended ("COBRA"). The Executive will be
responsible for paying the required monthly premium for that coverage, but the
Company will pay the Executive a lump sum cash stipend equal to 12 times the
monthly premium then charged to qualified beneficiaries for full family COBRA
continuation coverage under the Company's medical and dental plans, which the
Executive may choose to use for the payment of COBRA premiums. The Company will
pay the stipend to the Executive whether or not the Executive or anyone in his
family elects COBRA continuation coverage, whether or not the Executive
continues COBRA coverage for a full 12 months, and whether or not the Executive
receives health coverage form another employer while the Executive is receiving
COBRA continuation coverage.

         (f)      Matching Contributions. In addition to the vested amounts,
if any, to which the Executive is entitled under the Savings Plan as of the Date
of Termination, the Company will pay the Executive a lump sum amount equal to
the value of the unvested portion, if any, of the employer matching
contributions (and attributable earnings) credited to the Executive under the
Savings Plan.

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         (g)      Outplacement Services. The Company will provide the
Executive with reasonable outplacement services consistent with past practices
of the Company prior to the Change in Control or, if no past practice has been
established prior to the Change in Control, consistent with the prevailing
practice in the medical device manufacturing industry.

         SECTION 3.03. Limitation on Severance Payments.

         (a)      Notwithstanding anything contained in this Agreement to
the contrary, in the event that any Severance Payments paid or payable to the
Executive or for his benefit pursuant to the terms of this Agreement or
otherwise in connection with a Change in Control ("Total Payments") would be
subject to an Excise Tax, then the value of the Total Payments will be reduced
to the extent necessary so that, within the meaning of Code section
280G(b)(2)(A)(ii), the aggregate present value of the payments in the nature of
compensation to (or for the benefit of) the Executive that are contingent on a
Change in Control (with a Change in Control for this purpose being defined in
terms of a "change" described in Code section 280G(b)(2)(A)(i) or (ii)), do not
exceed 2.999 multiplied by the Base Amount. For this purpose, cash Severance
Payments will be reduced first (if necessary, to zero), and all other, non-cash
Severance Payments will be reduced next (if necessary, to zero). For purposes of
the limitation described in the preceding sentence, the following will not be
taken into account: (1) any portion of the Total Payments the receipt or
enjoyment of which the Executive effectively waived in writing prior to the Date
of Termination, and (2) any portion of the Total Payments that, in the opinion
of the Accounting Firm, does not constitute a "parachute payment" within the
meaning of Code section 280G(b)(2).

         (b)      For purposes of this Section 3.03, the determination of
whether any portion of the Total Payments would be subject to an Excise Tax will
be made by an Accounting Firm selected by the Company and reasonably acceptable
to the Executive. For purposes of that

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determination, the value of any non-cash benefit or any deferred payment or
benefit included in the Total Payments will be determined by the Accounting Firm
in accordance with the principles of Code sections 280G(d)(3) and (4).

         SECTION 3.04. Time of Payment. Except as otherwise expressly provided
in Section 3.02, payments provided for in that Section will be made as follows:

         (a)      No later than the fifth business day following the Date of
Termination, the Company will pay to the Executive an estimate, as determined by
the Company in good faith, of 90% of the minimum amount of the payments under
Section 3.02 to which the Executive is clearly entitled.

         (b)      The Company will pay to the Executive the remainder of the
payments due him under Section 3.02 (together with interest at the rate provided
in Code section 1274(b)(2)(B)) not later than the 30th business day after the
Date of Termination.

         (c)      At the time that payment is made under Section 3.04(b),
the Company will provide the Executive with a written statement setting forth
the manner in which all of the payments to him under this Agreement were
calculated and the basis for the calculations including, without limitation, any
opinions or other advice the Company received from auditors or consultants
(other than legal counsel) with respect to the calculations (and any such
opinions or advice that are in writing will be attached to the statement).

         SECTION 3.05. Attorneys Fees and Expenses. If the Executive finally
prevails with respect to any good faith dispute between the Executive and the
Company regarding the interpretation, terms, validity, or enforcement of this
Agreement (including any dispute as to the amount of any payment due under this
Agreement), the Company will pay or reimburse the Executive for all reasonable
attorneys fees and expenses incurred by the Executive in connection

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with that dispute. In addition, the Company will pay the reasonable legal fees
and expenses incurred by the Executive in connection with any tax audit or
proceeding to the extent attributable to the application of Code section 4999 to
any payment or benefit provided under this Agreement and including, but not
limited to, auditors' fees incurred in connection with the audit or proceeding.
Payment of fees and expenses due under this Section will be made to the
Executive within 15 business days after delivery of the Executive's written
request for payment, accompanied by such evidence of fees and expenses incurred
as the Company reasonably may require. With respect to fees and expenses
incurred in connection with a good faith dispute, the Executive may not submit a
request for payment or reimbursement until the dispute has been finally resolved
(either by agreement or by an order or judgment that is not subject to appeal or
with respect to which all appeals have been exhausted or waived).

                                   ARTICLE IV

                            TERMINATION OF EMPLOYMENT

         SECTION 4.01. Notice of Termination. After a Change in Control and
during the term of this Agreement, any purported termination of the Executive's
employment (other than by reason of death) will be communicated by a written
Notice of Termination from one party to the other party in accordance with
Article VIII. The Notice of Termination will indicate the specific termination
provision in this Agreement relied upon and will set forth in reasonable detail
the facts and circumstances claimed to provide a basis for termination of the
Executive's employment under the cited provision.

         SECTION 4.02. Date of Termination. Except as otherwise provided in
Section 4.01, with respect to any purported termination of the Executive's
employment after a Change in Control and during the term of this Agreement, the
term "Date of Termination" will

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have the meaning set forth in this Section. If the Executive's employment is
terminated for Disability, Date of Termination means thirty (30) days after
Notice of Termination is given, provided that the Executive does not return to
the full-time performance of the Executive's duties during that 30 day period.
If the Executive's employment is terminated for any other reason, Date of
Termination means the date specified in the Notice of Termination, which, in the
case of a termination by the Company, cannot be less than 30 days (except in the
case of a termination for Cause) and, in the case of a termination by the
Executive, cannot be less than 15 days nor more than 60 days from the date on
which the Notice of Termination is given.

                                    ARTICLE V

                                  NO MITIGATION

         The Company agrees that, if the Executive's employment by the Company
is terminated during the term of this Agreement, the Executive is not required
to seek other employment or to attempt in any way to reduce any amounts payable
to the Executive by the Company pursuant to Article III. Further, the amount of
any payment or benefit provided for in Article III (other than Section 3.02(e))
will not be reduced by any compensation earned by the Executive as the result of
employment by another employer, by retirement benefits, by offset against any
amount claimed to be owed by the Executive to the Company, or otherwise.

                                   ARTICLE VI

                            THE EXECUTIVE'S COVENANTS

         SECTION 6.01. Noncompetition Agreement. In consideration for this
Agreement, the Executive will execute, concurrent with the execution of this
Agreement, a noncompetition agreement in the form attached to this Agreement as
Exhibit A.

         SECTION 6.02. Potential Change in Control. The Executive agrees that,
subject

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to the terms and conditions of this Agreement, in the event of a Potential
Change in Control during the term of this Agreement, the Executive will remain
employed by the Company until the earliest of (a) a date that is six months from
the date of the Potential Change of Control, (b) the date of a Change in
Control, (c) the date on which the Executive terminates employment for Good
Reason (determined by treating the Potential Change in Control as a Change in
Control in applying the definition of Good Reason) or by reason of death, or (d)
the date the Company terminates the Executive's employment for any reason.

         SECTION 6.03. General Release. The Executive agrees that,
notwithstanding any other provision of this Agreement, the Executive will not be
eligible for any Severance Payments under this Agreement unless the Executive
timely signs, and does not timely revoke, a General Release in substantially the
form attached to this Agreement as Exhibit B. The Executive will be given 21
days to consider the terms of the General Release. The General Release will not
become effective until seven days following the date the General Release is
executed. If the Executive does not return the executed General Release to the
Company by the end of the 21 day period, that failure will be deemed a refusal
to sign, and the Executive will not be entitled to receive any Severance
Payments under this Agreement. In certain circumstances, the 21 day period to
consider the General Release may be extended to a 45 day period. The Executive
will be advised in writing if the 45 day period is applicable. In the absence of
such notice, the 21 day period applies.

                                   ARTICLE VII

                          SUCCESSORS; BINDING AGREEMENT

         SECTION 7.01. Obligation of Successors. In addition to any obligations
imposed by law upon any successor to the Company, the Company will require any
successor

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(whether direct or indirect, by purchase, merger, consolidation, or otherwise)
to all or substantially all of the business and/or assets of the Company to
expressly assume and agree to perform this Agreement in the same manner and to
the same extent that the Company would be required to perform it if no
succession had occurred. Failure of the Company to obtain such an assumption and
agreement prior to the effectiveness of any such succession will be a breach of
this Agreement and will entitle the Executive to compensation from the Company
in the same amount and on the same terms as the Executive would be entitled to
under this Agreement if the Executive were to terminate employment for Good
Reason after a Change in Control, except that, for purposes of implementing the
foregoing, the date on which the succession becomes effective will be deemed the
Date of Termination.

         SECTION 7.02. Enforcement Rights of Others. This Agreement will inure
to the benefit of and be enforceable by the Executive's personal or legal
representatives, executors, administrators, successors, heirs, distributees,
devisees, and legatees. If the Executive dies while any amount is still payable
to the Executive under this Agreement, (other than amounts that, by their terms,
terminate upon the Executive's death), then, unless otherwise provided in this
Agreement, all such amounts will be paid in accordance with the terms of this
Agreement to the executors, personal representatives, or administrators of the
Executive's estate.

                                  ARTICLE VIII

                                     NOTICES

         For the purpose of this Agreement, notices and all other communications
provided for in the Agreement will be in writing and will be deemed to have been
duly given when delivered or mailed by United States registered mail, return
receipt requested, postage prepaid, addressed to the respective addresses set
forth below, or to such other address as either party may

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furnish to the other in writing in accordance with this Article VIII, except
that notice of change of address will be effective only upon actual receipt:

         To the Company:

                  Zimmer Holdings, Inc.
                  345 East Main Street
                  Post Office Box 708
                  Warsaw, Indiana 46581-0708

                  To the Executive:

                  Sheryl Conley
                  807 Chapman Lake Drive
                  Warsaw, IN 46580

                                   ARTICLE IX

                                  MISCELLANEOUS

         This Agreement will not be construed as creating an express or implied
contract of employment and, except as otherwise agreed in writing between the
Executive and the Company, the Executive will not have any right to be retained
in the employ of the Company. No provision of this Agreement may be modified,
waived, or discharged unless the waiver, modification, or discharge is agreed to
in writing and signed by the Executive and an officer of the Company
specifically designated by the Board. No waiver by either party at any time of
any breach by the other party of, or compliance with, any condition or provision
of this Agreement to be performed by the other party will be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any other time.
Neither party has made any agreements or representations, oral or otherwise,
express or implied, with respect to the subject matter of this Agreement that
are not expressly set forth in this Agreement. The validity, interpretation,
construction, and performance of this Agreement will be governed by the laws of
the State of Indiana. All references to sections of the Exchange Act or the Code
will be deemed also to refer

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to any successor provisions to those sections. Any payments provided for under
this Agreement will be paid net of any applicable withholding required under
federal, state, or local law and any additional withholding to which the
Executive has agreed. The obligations of the Company and the Executive under
Articles III, IV, and VI will survive the expiration of the term of this
Agreement.

                                    ARTICLE X

                                    VALIDITY

         The invalidity or unenforceability of any provision or this Agreement
will not affect the validity or enforceability of any other provision of this
Agreement, which will remain in full force and effect.

                                   ARTICLE XI

                                  COUNTERPARTS

         This Agreement may be executed in several counterparts, each of which
will be deemed to be an original but all of which together will constitute one
and the same instrument.

                                   ARTICLE XII

                       SETTLEMENT OF DISPUTES; ARBITRATION

         All claims by the Executive for benefits under this Agreement must be
in writing and will be directed to and determined by the Board. Any denial by
the Board of a claim for benefits under this Agreement will be delivered to the
Executive in writing and will set forth the specific reasons for the denial and
the specific provisions of this Agreement relied upon. The Board will afford a
reasonable opportunity to the Executive for a review of the decision denying a
claim and will further allow the Executive to appeal to the Board a decision of
the Board within 60 days after notification by the Board that the Executive's
claim has been denied. Any further

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dispute or controversy arising under or in connection with this Agreement will
be settled exclusively by arbitration in Warsaw, Indiana in accordance with the
rules of the American Arbitration Association then in effect. Judgment may be
entered on the arbitrator's award in any court having jurisdiction. Each party
will bear its own expenses in the arbitration for attorneys' fees, for its
witnesses, and for other expenses of presenting its case. Other arbitration
costs, including arbitrators' fees, administrative fees, and fees for records or
transcripts, will be borne equally by the parties. Notwithstanding anything in
this Article to the contrary, if the Executive prevails with respect to any
dispute submitted to arbitration under this Article, the Company will reimburse
or pay all reasonable legal fees and expenses that the Executive incurred in
connection with that dispute as required by Section 3.05.

                                  ARTICLE XIII

                                   DEFINITIONS

         For purposes of this Agreement, the following terms will have the
meanings indicated below:

         (a)      "Accounting Firm" means an accounting firm that is
designated as one of the five largest accounting firms in the United States
(which may include the Company's independent auditors).

         (b)      "Award Plan" means the Zimmer Holdings, Inc. Stock Incentive
Plan.

         (c)      "Base Amount" has the meaning stated in Code section
280G(b)(3).

         (d)      "Beneficial Owner" has the meaning stated in Rule 13d-3 under
the Exchange Act.

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         (e)      "BEP" means the Benefit Equalization Plan of Zimmer Holdings,
Inc. and Its Subsidiary or Affiliated Corporations Participating in the Zimmer
Holdings, Inc. Retirement Income Plan or the Zimmer Puerto Rico Retirement
Income Plan.

         (f)      "Board" means the Board of Directors of the Company.

         (g)      "Cause" for termination by the Company of the Executive's
employment, after any Change in Control, means (1) the willful and continued
failure by the Executive to substantially perform the Executive's duties with
the Company (other than any such failure resulting from the Executive's
incapacity due to physical or mental illness or any such actual or anticipated
failure after the issuance of a Notice of Termination for Good Reason by the
Executive pursuant to Section 4.01) for a period of at least 30 consecutive days
after a written demand for substantial performance is delivered to the Executive
by the Board, which demand specifically identifies the manner in which the Board
believes that the Executive has not substantially performed the Executive's
duties; (2) the Executive willfully engages in conduct that is demonstrably and
materially injurious to the Company or its subsidiaries, monetarily or
otherwise; or (3) the Executive is convicted of, or has entered a plea of no
contest to, a felony. For purposes of clauses (1) and (2) of this definition, no
act, or failure to act, on the Executive's part will be deemed "willful" unless
it is done, or omitted to be done, by the Executive not in good faith and
without reasonable belief that the Executive's act, or failure to act, was in
the best interest of the Company.

         (h)      A "Change in Control" will be deemed to have occurred if any
of the following events occur:

         (1) any Person is or becomes the Beneficial Owner, directly or
indirectly, of securities of the Company (not including in the securities
beneficially owned by that Person any

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                                                                              19

securities acquired directly from the Company or its affiliates) representing
20% or more of the combined voting power of the Company's then outstanding
securities; or

         (2) during any period of two consecutive years (not including any

         period prior to the execution of this Agreement), individuals who at
         the beginning of the period constitute the Board and any new director
         (other than a director designated by a Person who has entered into an
         agreement with the Company to effect a transaction described in
         clause (1), (3) or (4) of this paragraph whose election by the Board
         or nomination for election by the Company's stockholders was approved
         by a vote of at least two-thirds (2/3) of the directors then still in
         office who either were directors at the beginning of the period or
         whose election or nomination for election was previously approved),
         cease for any reason to constitute a majority of the Board; or

         (3) the shareholders of the Company approve a merger or consolidation
         of the Company with any other corporation, other than (A) a merger or
         consolidation that would result in the voting securities of the
         Company outstanding immediately prior to the merger or consolidation
         continuing to represent (either by remaining outstanding or by being
         converted into voting securities of the surviving entity), in
         combination with the ownership of any trustee or other fiduciary
         holding securities under an employee benefit plan of the Company, at
         least 75% of the combined voting power of the voting securities of
         the Company or the surviving entity outstanding immediately after the
         merger or consolidation; or (B) a merger or consolidation effected to
         implement a recapitalization of the Company (or similar transaction)
         in which no Person acquires more than 50% of the combined voting
         power of the Company's then outstanding securities; or

        (4) the shareholders of the Company approve a plan of complete
        liquidation of the

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                                                                              20

         Company or an agreement for the sale or disposition by the Company of
         all or substantially all the Company's assets.

Notwithstanding the foregoing, a Change in Control will not include any event,
circumstance, or transaction occurring during the six-month period following a
Potential Change in Control that results from the action of any entity or group
that includes, is affiliated with, or is wholly or partly controlled by the
Executive; provided, further, that such an action will not be taken into account
for this purpose if it occurs within a six-month period following a Potential
Change in Control resulting from the action of any entity or group that does not
include the Executive.

         (i)      "COBRA" means the continuation coverage provisions of the
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.

         (j)      "Code" means the Internal Revenue Code of 1986, as amended
from time to time, and interpretative rules and regulations.

         (k)      "Company" means Zimmer Holdings, Inc., a Delaware
corporation, and any successor to its business and/or assets that assumes and
agrees to perform this Agreement by operation of law, or otherwise (except in
determining, under Section XIII(h), whether or not any Change in Control of the
Company has occurred in connection with the succession).

         (l)      "Company Shares" means shares of common stock of the
Company or any equity securities into which those shares have been converted.

         (m)      "Date of Termination" has the meaning stated in Section 4.02.

         (n)      "Disability" has the meaning stated in the Company's
short-term or long-term disability plan, as applicable, as in effect immediately
prior to a Change in Control.

         (o)      "Exchange Act" means the Securities Exchange Act of 1934,
as amended from time to time, and interpretive rules and regulations.

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                                                                              21

         (p)      "Excise Tax" means any excise tax imposed under Code Section
4999.

         (q)      "Executive" means the individual named in the first paragraph
of this Agreement.

         (r)      "General Release" has the meaning stated in Section 6.03.

         (s)      "Good Reason" for termination by the Executive of the
Executive's employment means the occurrence (without the Executive's express
written consent) of any one of the following acts by the Company, or failures by
the Company to act, unless, in the case of any act or failure to act described
in paragraph (1), (4), (5), (6), or (7) below, the act or failure to act is
corrected prior to the Date of Termination specified in the Executive's Notice
of Termination:

                  (1) the assignment to the Executive of any duties inconsistent
         with the Executive's status as an executive officer of the Company or a
         substantial adverse alteration in the nature or status of the
         Executive's responsibilities from those in effect immediately prior to
         a Change in Control;

         (2) a reduction by the Company in the Executive's annual base salary

         as in effect on the date of this Agreement or as the same may be
         increased from time to time, or the level of the Executive's
         entitlement under the Incentive Plan as in effect on the date of this
         Agreement or as the same may be increased from time to time;

         (3) the Company's requiring the Executive to be based more than 50
         miles from the Company's offices at which the Executive is based
         immediately prior to a Change in Control (except for required travel
         on the Company's business to an extent substantially consistent with
         the Executive's business travel obligations immediately prior to the
         Change in Control), or, in the event the Executive consents to any
         such relocation of his

<PAGE>

                                                                              22

         offices, the Company's failure to provide the Executive with all of the
         benefits of the Company's relocation policy as in operation immediately
         prior to the Change in Control;

         (4) the Company's failure, without the Executive's consent, to pay to
         the Executive any portion of the Executive's current compensation
         (which means, for purposes of this paragraph (4), the Executive's
         annual base salary as in effect on the date of this Agreement, or as
         it may be increased from time to time, and the awards earned pursuant
         to the Incentive Plan) or to pay to the Executive any portion of an
         installment of deferred compensation under any deferred compensation
         program of the Company, within seven days of the date the
         compensation is due;

         (5) the Company's failure to continue in effect any compensation plan
         in which the Executive participates immediately prior to a Change in
         Control, which plan is material to the Executive's total
         compensation, including, but not limited to, the Incentive Plan and
         the Award Plan or any substitute plans adopted prior to the Change in
         Control, unless an equitable arrangement (embodied in an ongoing
         substitute or alternative plan) has been made with respect to that
         plan, or the Company's failure to continue the Executive's
         participation in such a plan (or in a substitute or alternative plan)
         on a basis not materially less favorable, both in terms of the amount
         of benefits provided and the level of the Executive's participation
         relative to other participants, as existed at the time of the Change
         in Control;

         (6) the Company's failure to continue to provide the Executive with
         benefits substantially similar to those enjoyed by the Executive
         under any of the Company's pension (including, without limitation,
         the Company's Retirement Plan, the BEP, and the Company's Savings and
         Investment Program, including the Company's Benefit

<PAGE>

                                                                              23

         Equalization Plan for the Savings and Investment Program), life
         insurance, medical, health and accident, or disability plans in which
         the Executive was participating at the time of the Change in Control;
         the taking of any action by the Company that would directly or
         indirectly materially reduce any of those benefits or deprive the
         Executive of any material fringe benefit enjoyed by the Executive at
         the time of a Change in Control; or the Company's failure to provide
         the Executive with the number of paid vacation days to which the
         Executive is entitled on the basis of years of service with the Company
         in accordance with the Company's normal vacation policy in effect at
         the time of the Change in Control; or

         (7) any purported termination of the Executive's employment that is
         not effected pursuant to a Notice of Termination satisfying the
         requirements of Section 4.01; for purposes of this Agreement, no such
         purported termination will be effective.

         The Executive's right to terminate the Executive's employment for Good
Reason will not be affected by the Executive's incapacity due to physical or
mental illness. The Executive's continued employment will not constitute
consent to, or a waiver of rights with respect to, any act or failure to act
that constitutes Good Reason.

         Notwithstanding the foregoing, the occurrence of an event that would
otherwise constitute Good Reason will cease to be an event constituting Good
Reason if the Executive does not timely provide a Notice of Termination to the
Company within 120 days of the date on which the Executive first becomes aware
(or reasonably should have become aware) of the occurrence of that event.

         (t)      "Incentive Plan" means the Company's Executive Performance
Incentive Plan.

         (u)      "Notice of Termination" has the meaning stated in Section
4.01.

<PAGE>

                                                                              24

         (v)      "Options" means options for Shares granted to the Executive
under the Award Plan.

         (w)      "Person" has the meaning stated in section 3(a)(9) of the
Exchange Act, as modified and used in sections 13(d) and 14(d) of the Exchange
Act; however, a Person will not include (1) the Company or any of its
subsidiaries, (2) a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or any of its subsidiaries, (3) an
underwriter temporarily holding securities pursuant to an offering of those
securities, or (4) a corporation owned, directly or indirectly, by the
stockholders of the Company in substantially the same proportions as their
ownership of stock of the Company.

         (x)      "Potential Change in Control" will be deemed to have
occurred if any one of the following events occurs:

                  (1) the Company enters into an agreement, the consummation of
         which would result in the occurrence of a Change in Control;

                  (2) the Company or any Person publicly announces an intention
         to take or to consider taking actions that, if consummated, would
         constitute a Change in Control;

                  (3) any Person who is or becomes the Beneficial Owner,
         directly or indirectly, of securities of the Company representing 10%
         or more of the combined voting power of the Company's then outstanding
         securities, increases that Person's beneficial ownership of those
         securities by 5% or more over the percentage so owned by that Person on
         the date of this Agreement; or

                  (4) the Board adopts a resolution to the effect that, for
         purposes of this Agreement, a Potential Change in Control has occurred.

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                                                                              25

         (y)      "Retirement Date" means the later of (1) the
Executive's normal retirement date under the Retirement Plan and (2) another
date for retirement by the Executive that has been approved by the Board at any
time prior to a Change in Control.

         (z)      "Retirement Plan" means the Zimmer Holdings, Inc. Retirement
Income Plan.

         (aa)     "Savings Plan" means the Zimmer Holdings, Inc. Savings and
Investment Program, which, for purposes of this Agreement, will be deemed to
include the Benefit Equalization Plan of Zimmer Holdings, Inc. and Its
Subsidiary or Affiliated Corporations Participating in the Zimmer Holdings, Inc.
Savings and Investment Program.

         (bb)     "Severance Payments" means the payments described in Section
3.02.

         (cc)     "Shares" means shares of the common stock, $0.10 par value, of
the Company.

         (dd)     "Total Payments" has the meaning stated in Section 3.03(a)

         EXECUTIVE                          ZIMMER HOLDINGS, INC.

/s/ Sheryl L. Conley                        By:    /s/ David Dvoark
----------------------------                       -----------------------------
Sheryl L. Conley                                   David Dvorak
                                                   _____________________________
                                                   General Counsel