Document:

exv10w1

 

Exhibit 10.1

EMPLOYMENT AGREEMENT

between

ZIMMER HOLDINGS, INC.

and

J. RAYMOND ELLIOTT

          This Employment Agreement (“Agreement”) is made and entered into by and between Zimmer
Holdings, Inc, a Delaware corporation (the “Company”), and J. Raymond Elliott (“Executive”) and is
dated this 18th day of November, 2006.

Recitals

          A. Executive currently serves as the Chairman of the Board, President and Chief Executive
Officer of the Company.

          B. Executive has notified the Company that he intends to resign from his positions as
President and Chief Executive Officer, and continue to serve as Chairman of the Board of the
Company.

          C. The Company and Executive desire to enter into an agreement embodying the terms of
Executive’s continued employment with the Company.

Agreement

          NOW, THEREFORE, in consideration of the foregoing and the mutual promises set forth in this
Agreement, and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Company and Executive agree as follows:

          1. Effective Date. This Agreement shall be effective on the date that Executive resigns from
the positions as President and Chief Executive Officer (the “Effective Date”).

          2. Term of Employment. Subject to earlier termination as provided in Section 7 of this
Agreement, the term of this Agreement shall begin on the Effective Date and shall end on November
30, 2007; provided, however, that this term may be extended by the parties mutual agreement only
for successive terms of six (6) months each (the original term plus any extensions of the term are
hereinafter referred to as the “Term”) if the Company provides written notice to so extend to the
Executive at least thirty (30) calendar days before the scheduled expiration of the Term.

          3. Position and Responsibilities. During the Term, Executive agrees to serve as Chairman of
the Board of Directors (the “Board”) of the Company. In this capacity the Executive shall preside
at all meetings of the Board and the stockholders and shall have such other duties, authorities and
responsibilities that are customary to such position

 

 

          4. Standard of Care. During the Term, Executive will not, except as noted herein, accept
full-time employment with any other business activity, whether or not such business activity is
pursued for gain, profit or other pecuniary advantage, without the express written consent of the
Company and will not take any action that deprives the Company of any business opportunities or
otherwise act in a manner that conflicts with the best interests of the Company or that is
detrimental to the business of the Company; provided, however, this Section 4 shall not be
construed as preventing Executive (a) from investing his personal assets in such form or manner as
will not require his services in the daily operations and affairs of the businesses in which such
investments are made, or (b) from participating in charitable or other not-for-profit activities as
long as such activities do not interfere with Executive’s work for the Company (or its affiliates)
or (c) participating in other part-time activities that either individually or cumulatively do not
interfere with the Executive’s work for the Company (or its affiliates).

          5. Compensation and Benefits. As remuneration for all services to be rendered by Executive
during the Term, the Company shall pay and provide to Executive the following:

     5.1. Base Salary. The Company shall pay Executive a base salary equal to Executive’s
base salary in effect immediately prior to the Effective Date (the “Base Salary”). The Base
Salary shall be paid to Executive consistent with the customary payroll practices of the
Company.

     5.2. Incentive Bonus. Executive shall not be entitled to participate during the Term
in any annual or new incentive bonus plan which the Company now has or may adopt and
implement from time to time during the Term except as otherwise provided for in currently
approved bonus programs including the integration bonus (earned award through 2006) and the
three year incentive plan (pro-rata earned award through the Term).

     5.3. Equity Compensation. Executive shall not be entitled to participate during the
Term in any equity compensation plan which the Company now has or may adopt and implement
from time to time during the Term.

     5.4. Employee Benefits. The Company shall provide to Executive employee fringe
benefits and perquisites commensurate with his position with the Company and equal to the
Executive’s fringe benefits and perquisites in effect immediately prior to the Effective
Date. Nothing contained in this Section shall obligate the Company to institute, maintain
or refrain from changing, amending or discontinuing any employee fringe benefit plan, so
long as such changes are similarly applicable to other employees generally.

          6. Reimbursement of Business Expenses. The Company shall pay or reimburse Executive for all
ordinary and necessary expenses, which Executive incurs in performing his duties under this
Agreement. Such expenses shall be paid or reimbursed to

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Executive consistent with the expense reimbursement policies of the Company in effect from
time to time and Executive agrees to abide by any such expense reimbursement policies.

          7. Termination of Employment.

     7.1. Termination Due to Death. If Executive dies during the Term, this Agreement shall
terminate on the date of Executive’s death. Upon the death of Executive, the Company’s
obligation to pay and provide Executive compensation and benefits under this Agreement shall
immediately terminate, except: (a) the Company shall pay Executive or Executive’s legal
representative that portion of his Base Salary, at the rate then in effect, which shall have
been earned through the termination date; and (b) the Company shall pay or provide Executive
or Executive’s legal representative such other payments and benefits, if any, which had
accrued hereunder before Executive’s death including but not limited to the Executive’s
Zimmer Life Insurance policy in effect immediately prior to the Effective Date. Other than
the foregoing, the Company shall have no further obligations to Executive (or Executive’s
legal representatives, including Executive’s estate, heirs, executors, administrators and
personal representatives) under this Agreement unless provided for in other company policies
and agreements with the Executive.

     7.2. Termination Due to Disability. If Executive suffers a Disability (as hereafter
defined), the Company shall have the right to terminate this Agreement and Executive’s
employment with the Company. The Company shall deliver written notice to Executive of the
Company’s termination because of Disability, pursuant to this Section 7.2, specifying in
such notice a termination date not less than seven (7) calendar days after the giving of the
notice (the “Disability Notice Period”), and this Agreement, and Executive’s employment by
the Company, shall terminate at the close of business on the last day of the Disability
Notice Period.

          Upon the termination of this Agreement because of Disability, the Company’s obligation
to pay and provide to Executive compensation and benefits under this Agreement shall
immediately terminate, except: (a) the Company shall pay Executive that portion of his Base
Salary, at the rate then in effect, which shall have been earned through the termination
date; and (b) the Company shall pay or provide Executive such other payments and benefits,
if any, which had accrued hereunder before the termination for Disability. This agreement
does not supercede and the Company remains obligated to pay Disability payments as provided
for under the current Zimmer Short and Long Term Disability Program or any new “LTD”
programs that may be put in place during the Term.

          The term “Disability” shall mean when Executive is deemed disabled in accordance with
any long-term disability insurance policy or plan of the Company in effect at the time of
the illness or injury causing the disability.

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     7.3. Termination by the Company For Cause. At any time during the Term, the Company
may terminate this Agreement and Executive’s employment with the Company for “Cause” as
provided in this Section 7.3. “Cause” shall mean the occurrence of one or more of the
following events: (a) Executive’s conviction for a felony or of any crime involving moral
turpitude; (b) Executive’s engaging in any illegal conduct or willful misconduct in the
performance of his employment duties for the Company (or its affiliates); (c) Executive’s
engaging in any fraudulent or dishonest conduct in his dealings with, or on behalf of, the
Company (or its affiliates); (d) Executive’s material violation of the Company’s business
ethics or conflict-of-interest policies, as such policies currently exist or as they may be
amended or implemented during Executive’s employment with the Company; and (e) Executive’s
misuse of alcohol or illegal drugs which interferes with the performance of Executive’s
employment duties for the Company or which compromises the reputation or goodwill of the
Company.

          Upon the occurrence of any of the events specified above, the Company may terminate
Executive’s employment for Cause by notifying Executive in writing of its decision to
terminate his employment for Cause, and Executive’s employment and this Agreement shall
terminate at the close of business on the date on which the Company gives such notice.

          Upon termination of Executive’s employment by the Company for Cause, the Company’s
obligation to pay or provide Executive compensation and benefits under this Agreement shall
terminate, except: (a) the Company shall pay Executive that portion of his Base Salary, at
the rate then in effect, which shall have been earned through the termination date; and (b)
the Company shall pay or provide Executive such other payments or benefits, if any, which
had accrued hereunder before the termination date. Other than the foregoing, the Company
shall have no further obligations to Executive under this Agreement.

     7.4. Termination By Executive. At any time during the Term, Executive may terminate
this Agreement and his employment with the Company by giving the Company written notice of
termination, specifying in such notice a termination date not less than thirty (30) calendar
days after the giving of the notice (the “Executive’s Notice Period”), and Executive’s
employment with the Company shall terminate at the close of business on the last day of
Executive’s Notice Period. Upon termination of Executive’s employment with the Company
under this Section 7.4, the Company’s obligation to pay Executive compensation and benefits
under this Agreement shall immediately terminate, except: (a) the Company shall pay
Executive that portion of his Base Salary, at the rate then in effect, which shall have been
earned through the termination date; and (b) the Company shall pay or provide Executive such
other payments and benefits, if any, which had accrued hereunder before the termination
date. Other than the foregoing, the Company shall have no further obligations to Executive
under this Agreement.

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          8. Assignment.

     8.1. Assignment by Company. The rights and obligations of the Company under this
Agreement shall inure to the benefit of and be binding upon any and all successors and
assigns of the Company, including without limitation by asset assignment, stock sale,
merger, consolidation or other corporate reorganization.

     8.2. Non-Assignment by Executive. The services to be provided by Executive to the
Company hereunder are personal to Executive, and Executive’s duties may not be assigned by
Executive.

          9. Notice. Any notice required or permitted under this Agreement shall be in writing and
either delivered personally or sent by nationally recognized overnight courier, express mail, or
certified or registered mail, postage prepaid, return receipt requested, at the following
respective address unless the party notifies the other party in writing of a change of address:

If to the Company:

Zimmer Holdings, Inc.

345 East Main Street

Warsaw, Indiana 46580

Attention: Board of Directors

If to Executive:

J. Raymond Elliott

_____________________

_____________________

          A notice delivered personally shall be deemed delivered and effective as of the date of
delivery. A notice sent by overnight courier or express mail shall be deemed delivered and
effective one (1) day after it is deposited with the postal authority or commercial carrier. A
notice sent by certified or registered mail shall be deemed delivered and effective two (2) days
after it is deposited with the postal authority.

          10. Miscellaneous.

     10.1. Entire Agreement. This Agreement supersedes any prior agreements or
understandings, oral or written, between the parties hereto, with respect to Executive’s
continued employment as Chairman through the Term, and constitutes the entire agreement of
the parties with respect thereto; provided, however, that this Agreement shall not diminish
any rights either party may have as a result of any other agreements previously or
subsequently entered into by the parties, including but not limited to any

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Retention Agreement, Change in Control Severance Agreement, and Non-Disclosure,
Non-Competition and Non-Solicitation Agreement.

     10.2. Modification. This Agreement shall not be varied, altered, modified, canceled,
changed, or in any way amended except by mutual agreement of the parties in a written
instrument approved by the Board or its compensation committee.

     10.3. Counterparts. This Agreement may be executed in one (1) or more counterparts,
each of which shall be deemed to be an original, but all of which together will constitute
one and the same Agreement.

     10.4. Tax Withholding. The Company may withhold from any compensation or benefits
payable under this Agreement all federal, state, city, or other taxes as may be required
pursuant to any law or governmental regulation or ruling and in a manner consistent with
customary practices.

     10.5. Contractual Rights to Benefits. Nothing herein contained shall require or be
deemed to require, or prohibit or be deemed to prohibit, the Company to segregate, earmark
or otherwise set aside any funds or other assets, in trust or otherwise, to provide for any
payments to be made or required hereunder.

     10.6. No Waiver. Failure to insist upon strict compliance with any of the terms,
covenants or conditions of this Agreement shall not be deemed a waiver of such term,
covenant or condition, nor shall any waiver or relinquishment of any right or power
hereunder at any one or more times be deemed a waiver or relinquishment of such right or
power at any other time or times.

     10.7. Governing Law; Choice of Forum. To the extent not preempted by federal law, the
provisions of this Agreement shall be construed and enforced in accordance with the laws of
the State of Indiana, notwithstanding any state’s choice-of-law or conflicts-of-law rules to
the contrary.

     10.8. Arbitration of Disputes. Any controversy or claim arising out of or relating to
this Agreement or the breach thereof, shall be settled by binding arbitration in the City of
Warsaw, Indiana, in accordance with the laws of the State of Indiana by three arbitrators,
one of whom shall be appointed by the Company, one by Executive and the third of whom shall
be appointed by the first two arbitrators. The arbitration shall be conducted in accordance
with the rules of the American Arbitration Association, except with respect to the selection
of arbitrators which shall be as provided in this Section. Judgment upon the award rendered
by the arbitrators may be entered in any court having jurisdiction thereof. The expenses of
arbitration, and the fees of the arbitrators, shall be paid by the party determined by the
arbitrators as the non-prevailing party. In addition, the prevailing party shall be
entitled to recover its costs, including reasonable attorneys’ fees, incurred in connection
with the arbitration, and any subsequent enforcement of any arbitration award in court.

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IN WITNESS WHEREOF, Executive and the Company have executed this Agreement, intending it to
be effective as of the Effective Date.

	 	 	 	 	 
	ZIMMER HOLDINGS, INC.
	 	 
	 
	 	 	 	 
	By:

	 	/s/ Stuart M. Essig
	 	/s/ J. Raymond Elliott
	 

	 	 
	 	 
	 

	 	Stuart M. Essig, Chairman, Compensation and
	 	J. Raymond Elliott
	 

	 	Management Development Committee	 	 
	 
	 	 	 	 
	 

	 	“Company”
	 	“Executive”

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Exhibit 4.1

LASALLE BANK NATIONAL ASSOCIATION,

TRANSFER AGENT

AND REGISTRAR

(Chicago, Illinois)

THE TERMS AND CONDITIONS OF THE RIGHTS OFFERING ARE SET FORTH IN THE COMPANY’S PROSPECTUS,
DATED                     , 2006 (THE “PROSPECTUS”), AND ARE INCORPORATED HEREIN BY REFERENCE. COPIES OF THE
PROSPECTUS ARE AVAILABLE UPON REQUEST FROM LASALLE BANK NATIONAL ASSOCIATION AS SUBSCRIPTION AGENT.

LIME ENERGY CO.

(formerly known as Electric City Corp.)

Incorporated under the laws of the State of Delaware

SUBSCRIPTION CERTIFICATE

Evidencing Non-Transferable Rights to Purchase Shares of Common Stock

Subscription Price: $1.00 per Share

VOID IF NOT EXERCISED ON OR BEFORE THE EXPIRATION DATE (AS DEFINED IN THE PROSPECTUS)

REGISTERED OWNER: [Name, Address & Number of Rights]

SPECIMEN

	 	 	 
	

	THIS CERTIFIES THAT the
registered owner whose
name is inscribed hereon
is the owner of the
number of Rights set
forth above, each of
which entitles the owner
to subscribe for and
purchase one share of
common stock, $.0001 par
value per share, of Lime
Energy Co., a Delaware
corporation, on the
terms and subject to the
conditions set forth in
the Prospectus and
instructions relating
hereto on the reverse
side hereof and in the
instructions as to the
use of this certificate
included in this
mailing. The
non-transferable Rights
(as defined in the
Prospectus) represented
by this Subscription
Certificate may be
exercised by duly
completing Section 1 on
the reverse side

	 	hereof and by returning the full payment of the
subscription price for each share of common
stock as described on the reverse side hereof.
Special delivery instructions may be specified
by completing Section 2 on the reverse side
hereof. THE RIGHTS EVIDENCED BY THIS
SUBSCRIPTION CERTIFICATE ARE NOT TRANSFERABLE
AND MAY NOT BE EXERCISED UNLESS THE REVERSE
SIDE HEREOF IS COMPLETED AND SIGNED WITH A
SIGNATURE GUARANTEE, IF APPLICABLE.
	

	 
	 	 
	Dated:

	 	 

	 	 	 
	 
	 	 
	Chief Executive Officer
	 	Chief Financial Officer, Treasurer & Secretary

 

 

DELIVERY OPTIONS FOR SUBSCRIPTION CERTIFICATE

	 	 	 
	By Mail or by Overnight Courier:
	 	By Hand:

	 	 	 
	

	LaSalle Bank National Association 

135 S. LaSalle Street, Suite 1811

Chicago, Illinois 60603

Telephone: (800) 246-5761, Menu Option 2

Facsimile: (312) 904-2079

Attention: Corporate Trust
	 	LaSalle Bank National Association

135 S. LaSalle Street, Suite 1811

Chicago, Illinois 60603

Telephone: (312) 904-5091

Facsimile: (312) 904-2079

Attention: Corporate Trust
	

Delivery to an address other than the address listed above will not constitute valid delivery. Delivery by facsimile will not constitute valid delivery.

PLEASE PRINT ALL INFORMATION CLEARLY AND LEGIBLY.

SECTION 1

IF YOU WISH TO SUBSCRIBE FOR YOUR FULL BASIC SUBSCRIPTION
PRIVILEGE OR A PORTION THEREOF:

BASIC SUBSCRIPTION PRIVILEGE:

	 	 	 	 
	I apply for

	 	 shares at $1.00 each = $	 
	 

	(no. of new shares)
	 (subscription price)
	(amount enclosed)

OVER-SUBSCRIPTION PRIVILEGE:

IF YOU HAVE SUBSCRIBED FOR YOUR BASIC SUBSCRIPTION PRIVILEGE AND
WISH TO PURCHASE ADDITIONAL SHARES PURSUANT TO THE
OVER-SUBSCRIPTION PRIVILEGE:

	 	 	 	 
	I apply for

	 	 shares at $1.00 each = $	 
	 

	(no. of new shares)
	 (subscription price)
	(amount enclosed)

	 	 	 
	Total Amount of Check Enclosed = $
	 	 
	 

	 	 

Checks or bank drafts drawn on a U.S. bank, or postal telegraphic
or express money orders should be made payable to LaSalle Bank
National Association, as Subscription Agent.

TO SUBSCRIBE: I acknowledge that I have received the Prospectus
for this offer and I hereby irrevocably subscribe for the number
of shares indicated above on the terms and conditions specified in
the Prospectus. I hereby agree that if I fail to pay for the
shares of Common Stock for which I have subscribed, Lime Energy
Co. may exercise its legal remedies against me.

 

Signature(s) of Subscriber(s)

IMPORTANT: THE SIGNATURE(S) MUST CORRESPOND IN EVERY PARTICULAR,
WITHOUT ALTERATION, WITH THE NAME(S) AS PRINTED ON THE REVERSE OF
THIS SUBSCRIPTION CERTIFICATE.

If signature is by trustee(s), executor(s), administrator(s),
guardian(s), attorney(s)-in-fact, agent(s), officer(s) of a
corporation or another acting in a fiduciary or representative
capacity, please provide the following information (please print).
See the instructions.

	 	 	 
	Name(s):
	 	 
	 

	 	 

	 	 	 
	Capacity (Full Title):
	 	 
	 

	 	 
	 
	 	 
	Taxpayer ID # or
	 	 
	Social Security #:
	 	 
	 

	 	 

SECTION 2

SPECIAL ISSUANCE OR DELIVERY INSTRUCTIONS FOR
SUBSCRIPTION RIGHTS HOLDERS:

(a) To be completed ONLY if the certificate
representing the Common Stock is to be issued in a
name other than that of the registered holder.
(See the Instructions.) DO NOT FORGET TO COMPLETE
THE GUARANTEE OF SIGNATURE(S) SECTION BELOW.

ISSUE COMMON STOCK TO:

 

(Please Print Name)

 

(Print Full Address)

 

(Social Security # or Tax ID #)

(b) To be completed ONLY if the certificate
representing the Common Stock is to be sent to an
address other than that shown on the front of this
certificate. (See the Instructions.) DO NOT FORGET
TO COMPLETE THE GUARANTEE OF SIGNATURE(S) SECTION
BELOW.

 

(Please Print Name)

 

(Print Full Address)

 

(Social Security # or Tax ID #

GUARANTEE OF SIGNATURE(S)

YOU MUST HAVE YOUR SIGNATURE GUARANTEED IF YOU
WISH TO HAVE YOUR SHARES DELIVERED TO AN ADDRESS
OTHER THAN YOUR OWN OR TO A SHAREHOLDER OTHER THAN
THE REGISTERED HOLDER.

Your signature must be guaranteed by an Eligible
Guarantor Institution, as defined in Rule 17Ad-15
of the Securities Exchange Act of 1934, as
amended. These generally include (a) a commercial
bank or trust company, (b) a member firm of a
domestic stock exchange, or (c) a credit union.

	 	 	 
	Signature:
	 	 
	 

	 	 
	 

	 	(Signature of Officer)

	 	 	 
	By:
	 	 
	 

	 	 
	 

	 	(Name of Bank or Firm)

FULL PAYMENT FOR THE SHARES MUST ACCOMPANY THIS FORM AND MUST BE MADE IN UNITED STATES DOLLARS BY
CHECK OR BANK DRAFT DRAWN UPON A UNITED STATES BANK OR POSTAL, TELEGRAPHIC OR EXPRESS MONEY ORDER
PAYABLE TO “LASALLE BANK NATIONAL ASSOCIATION, AS SUBSCRIPTION AGENT.”

STOCK CERTIFICATES FOR THE SHARES SUBSCRIBED TO PURSUANT TO THE RIGHTS OFFERING WILL BE DELIVERED
AS SOON AS PRACTICABLE AFTER THE EXPIRATION DATE. ANY REFUND IN CONNECTION WITH YOUR SUBSCRIPTION
WILL BE DELIVERED AS SOON AS PRACTICABLE THEREAFTER.

FOR INSTRUCTIONS ON THE USE OF LIME ENERGY CO. SUBSCRIPTION CERTIFICATES, CONSULT JOSEPH PELLICORE
OF LASALLE BANK NATIONAL ASSOCIATION, (312) 904-5091, OR YOUR BANK OR BROKER WITH QUESTIONS.

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