Document:

EX-10.2

 Exhibit 10.2 

Execution Version 

November 5, 2017 
 Mr. Joseph R.
Swedish 
  

	 	Re:	Executive Chairman and 

 Advisor Agreement       

 Dear Joe: 
 This letter agreement
(“Letter Agreement”) sets forth the understanding between you and Anthem, Inc. (the “Company”) regarding your service as Executive Chairman and, subsequently, as Senior Advisor to the Chief Executive Officer and
Consultant. Capitalized terms not otherwise defined in this Letter Agreement have the meaning set forth in the Offer Letter, dated February 6, 2013 (together with the Employment Agreement under Executive Agreement Plan between you and the
Company attached thereto, your “Employment Agreement”). 
 1. Continued Service 

(a) Title and Duties. 
 (i)
Executive Chairman. You hereby step down from your employment as President and Chief Executive Officer of the Company effective as of the date on which a successor Chief Executive Officer begins employment with the Company (the
“Succession Date”). You will be employed by the Company as the Executive Chairman, reporting to the Board of Directors of the Company (the “Board”), from the Succession Date until the earlier of (1) the
Company’s 2018 annual meeting of shareholders and (2) May 31, 2018 (such earlier date, the “Transition Date”). As Executive Chairman, you will perform such duties as are reasonably assigned to you by the Board from
time to time. 
 (ii) Senior Advisor and Consultant. You will be employed by the Company as the Senior Advisor to the Chief Executive
Officer and Consultant, reporting to the Chief Executive Officer, from the Transition Date until May 1, 2020 (the “Advisory Period”). As Senior Advisor to the Chief Executive Officer and Consultant, you will perform such duties
as are reasonably assigned to you by the Chief Executive Officer from time to time, which may include, but are not limited to, advising and assisting the Company in its execution of its strategic plans, pending litigation activities and governmental
affairs (including policy and legislation). You and the Company agree that, effective as of the Transition Date, you will no longer serve as an officer of the Company. 

 (b) Terms of Employment. The terms of your employment from the date hereof through the end
of the Advisory Period will continue to be governed by your Employment Agreement, except as otherwise provided herein. You agree that the changes to your position, duties, responsibilities, compensation, work location and other terms and conditions
of employment contemplated by this Letter Agreement do not constitute “Good Reason” for you to resign (as set forth in the Employment Agreement or otherwise). Following the Succession Date, you may serve on boards of directors of other
organizations, subject to your compliance with Section 4, below, and provided that such activities do not interfere with the performance of your duties to the Company. 

(c) Transition from Other Positions. You and the Company agree that, unless otherwise agreed in writing, the Company will not nominate
you as a member of the Board at the Company’s 2018 annual meeting of shareholders. You hereby resign, effective as of the Transition Date, from all positions that you hold (as director, officer, manager, member or otherwise, except as provided
in Section 1(a)) with the Company and any of the Company’s subsidiaries, affiliates, joint ventures and other related entities. 

(d) Employment at Will. Your employment with the Company remains “at-will” employment
and the employment relationship may be terminated at any time by you or the Company in accordance with the Employment Agreement. Effective as of the Transition Date, you will not be entitled to the severance benefits on a termination without Cause
or for Good Reason set forth in the Executive Agreement Plan and your Employment Agreement. If the Company terminates your employment after the Transition Date and prior to the end of the Advisory Period without Cause, the Company will continue to
pay you the compensation and benefits set forth in this Letter Agreement through the end of the Advisory Period. 
 2. Compensation Matters 

(a) Executive Chairman Compensation. During the period in which you serve as the Executive Chairman of the Company, you will continue to
be paid your base salary at its current rate and will continue to be eligible to participate in the Company’s retirement savings, health, welfare, life insurance and perquisite plans on same basis on which you are eligible to participate today.
Additionally, you will be eligible to earn (1) an annual bonus in respect of 2017, which will not be prorated, and (2) an annual bonus in respect of 2018, which will be prorated to reflect the number of days in 2018 prior to the Transition
Date. The Company will pay you such bonuses in cash (less applicable withholdings) when bonuses are generally paid to senior executives of the Company based on actual Company performance as determined by the Board (or a committee thereof);
provided that your bonuses will not be subject to negative discretion unless such discretion is applied in a manner consistent with discretion applied to bonuses paid to other senior executives of the Company. Notwithstanding the Employment
Agreement, you will not be eligible to participate in the Company’s equity incentive plans after the Succession Date. 
 (b) Advisory
Period Compensation. During the period in which you serve as Senior Advisor to the Chief Executive Officer and Consultant, you will be paid $4,500,000 per year in equal installments in accordance with the Company’s regular payroll.
Additionally, you will be eligible to participate in the Company’s (1) retirement savings, health, welfare and life insurance plans on same basis as other active senior executives and (2) perquisite (at the “chief executive
officer” level) and financial planning service plans to the extent available to active senior executives. Notwithstanding the Employment Agreement, you will not be eligible to participate in the Company’s annual bonus program after the
Transition Date. Your eligibility for continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, will begin at the end of the Advisory Period. 

  
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 (c) Treatment of Outstanding Equity Awards. 

(i) 2017 PSUs. The performance stock units granted to you in the first quarter of 2017 (the “One Anthem PSUs”) will
continue to vest from the date hereof and during the Advisory Period in accordance with their terms (disregarding any termination of your employment by the Company without Cause (as defined in the Employment Agreement) or due to your death or
disability prior to the vesting date). Subject to your execution and non-revocation at the end of the vesting period of a release of claims substantially in the form set forth in
Section 3, the Company will settle any earned One Anthem PSUs (less applicable withholdings) on the same date on which such awards held by senior executives are settled in accordance with their terms. 

(ii) Other Awards. All of your outstanding restricted stock unit, performance stock unit and stock option awards (excluding the One
Anthem PSUs as provided above) will continue to vest and be earned and, for stock options, be exercisable, in accordance with their terms during your continued employment with the Company and after the end of the Advisory Period (which, for the
avoidance of doubt, constitutes a “retirement” under the terms of such awards). For purposes of this Section 2(c)(ii), any termination of your employment by the Company without Cause prior to January 1, 2018
will be disregarded. 
 (d) Business Expenses. During the periods in which you are employed by the Company as the Executive Chairman
and as Senior Advisor to the Chief Executive Officer and Consultant, (1) the Company will reimburse any business expenses incurred by you in accordance with applicable Company policies and (2) you will have access to Company aircraft
consistent with past practice to the extent that the Company continues to provide aircraft for business travel to active senior executives; provided, in each case, that such expense or aircraft usage is reasonably required for the performance
of business activities requested or approved by the Company’s Chief Executive Officer. For the avoidance of doubt, the Company’s aircraft will not be available to you for commuting purposes. 

(e) Other Benefits. 
 (i)
From the Succession Date until the third anniversary of the end of the Advisory Period, you will be permitted to use (1) reasonable office space in the Company’s offices in Denver, Colorado and (2) the office space designated for
traveling executives in the Company’s other offices to the extent needed to discharge your responsibilities, and will be entitled to appropriate office technology. Additionally, you will be entitled to the services of your current
administrative assistant for not less than 30 hours per week (and the Company will make available to your administrative assistant a sufficient level of other services to the Company so that your assistant may remain a full-time, benefits-eligible
employee of the Company) through the end of the Advisory Period and for not less than 10 hours per week for three years thereafter. If your current administrative assistant resigns or is terminated by the Company for “cause,” the Company
will assign you a new administrative assistant with a rate of compensation comparable to that paid to your departing assistant at that time. 

  
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 (ii) For the avoidance of doubt, (A) the terms set forth in the paragraph of your Offer
Letter titled “Indemnification” will continue in accordance with its terms and (B) the Company will indemnify you for your acts and omissions occurring during your employment through the end of the Advisory Period on the same basis on
which you are indemnified on the date hereof. The Company will continue to reimburse you for reasonable fees and expenses incurred by your counsel (Vedder Price) on matters subject to indemnification and/or D&O coverage in accordance with the
Company’s policies. 
 3. General Release and Waiver of Claims 

(a) General Waiver and Release. By signing this Letter Agreement, and except as provided in Section 3(b)
below, you and any person acting through or under you hereby release, waive and forever discharge the Company, its past and present subsidiaries and its past and present affiliates, and their respective successors and assigns, and their respective
present or past officers, trustees, directors, shareholders, executives and agents of each of them (together, the “Released Parties”) from any and all claims, demands, actions, liabilities and other claims for relief and
remuneration whatsoever (including without limitation attorneys’ fees and expenses), whether known or unknown, absolute, contingent or otherwise (each, a “Claim”), arising or which could have arisen up to and including the date
hereof, arising out of or relating to your employment, or any other written or oral agreement, any change in your employment status, terms of employment, any benefits or compensation, any tortious injury, breach of contract, wrongful discharge
(including any Claim for constructive discharge), infliction of emotional distress, slander, libel or defamation of character, and any Claims arising under Title VII of the Civil Rights Act of 1964 (as amended by the Civil Rights Act of 1991), the
Americans With Disabilities Act, the Rehabilitation Act of 1973, the Equal Pay Act, the Older Workers Benefits Protection Act, the Age Discrimination in Employment Act of 1967 (“ADEA”), the Employee Retirement Income Security Act of
1974, as amended (“ERISA”), or any other foreign, federal, state or local statute, law, ordinance, regulation, rule or executive order, any tort or contract claims, and any of the claims, matters and issues which could have been
asserted by you against the Released Parties in any legal, administrative or other proceeding. 
 (b) Excluded Claims. The release of
Claims set forth in this Section 3 will not apply to Claims with respect to any obligation of the Company set forth in this Letter Agreement or (to the extent not superseded by this Letter Agreement) the Employment
Agreement, vested benefits under any benefit plan of the Company or its affiliates (including any plans subject to ERISA) or any other welfare benefits required to be provided by statute, and any claims that may not be released under applicable law
(collectively, “Excluded Claims”). 
 (c) Proceedings. You further agree, promise and covenant that, to the maximum
extent permitted by law, neither you, nor any person, organization, or other entity acting on your behalf, has filed or will file, charged or will charge, claimed or will claim, sued or will sue, or caused or will cause, or permitted or will permit
to be filed, charged or claimed, any action for damages or other relief (including injunctive, declaratory, monetary or other relief) against the Released Parties with respect to any Claims other than Excluded Claims. 

(d) Acknowledgements by You. You hereby acknowledge and confirm that you were advised by the Company in connection with your entry into
this Letter Agreement to consult with an attorney of your choice prior to signing this release and waiver of Claims, including, without limitation, with respect to the terms relating to your release and waiver of Claims arising under ADEA, and that
you have in fact consulted an attorney. You have 

  
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been given twenty-one days to review this release and waiver of Claims, and you are signing this release and waiver of Claims knowingly, voluntarily and
with full understanding of its terms and effects, and you voluntarily accept the consideration set forth in this Letter Agreement for the purpose of making full and final settlement of all Claims referred to above. You also understand that you have
seven days after the date that you execute this Letter Agreement to revoke the release and waiver of Claims in this Section 3, and that this release and waiver of Claims and any obligations that the Company has under this
Letter Agreement will not become effective if you exercise your right to revoke the release and waiver of Claims within seven days of execution. You understand that such revocation must be delivered to the Company at its headquarters, attention:
General Counsel, during such period to be effective. 
 4. Ongoing Obligations 

(a) Ongoing Obligations. You agree and acknowledge that your obligations under Sections 9 and 10 (Restrictive Covenants and
Cooperation) of the Employment Agreement under Executive Agreement Plan between you and the Company will continue in accordance with their terms (including for the 18 month “Restricted Period” following the end of the Advisory
Period to the extent set forth in such covenants). You affirm that such provisions are not unduly burdensome to you and are reasonably necessary to protect the legitimate interests of the Company. 

(b) Whistleblower Policy. You understand and agree that nothing in this Letter Agreement or the Employment Agreement limits or
interferes with your right, without notice to or authorization from the Company, to file a charge or complaint with the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration,
the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority, or any other self-regulatory organization or any other federal, state or local governmental agency or commission (each a “Governmental
Agency”), or to testify, assist or participate in any investigation, hearing or proceeding conducted by a Governmental Agency. In the event you file a charge or complaint with a Government Agency, or a Government Agency asserts a claim on
your behalf, you agree that your release of Claims in this Letter Agreement will nevertheless bar your right (if any) to any monetary or other recovery (including reinstatement), except that you do not waive: (1) your right to receive an award
from the Securities and Exchange Commission pursuant to Section 21F of the Securities Exchange Act of 1934 and (2) any other right where waiver is expressly prohibited by law. 

5. Other Terms 
 (a) Tax
Withholding. The Company may withhold from any amounts payable to you under this Letter Agreement any federal, state, local or foreign taxes that are required to be withheld pursuant to applicable law or regulation. 

(b) No Representations and Non-Admission. You acknowledge that you have not relied on any
representations or statements in determining to execute this Letter Agreement. Nothing contained in this Letter Agreement will be deemed or construed as an admission of wrongdoing or liability on the part of the Company or any of the other Released
Parties or by you. 
 (c) Entire Understanding. This Letter Agreement sets forth the entire agreement between you and the Company
regarding the transition of your employment and other service relationships with the Company and its affiliates, and supersedes any other agreements between you and the Company except as set forth herein. 

  
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 (d) Dispute Resolution; Governing Law. Any dispute or controversy arising under or
in connection with this Letter Agreement will be settled in accordance with the procedures set forth in Section 17 (other than the first sentence thereof) (Dispute Resolution) of the Employment Agreement under Executive Agreement Plan
between you and the Company. This Letter Agreement will be governed by the law of the State of Indiana applicable to contracts made and to be performed entirely within that State, without regard to its conflicts of law principles. 

(e) Severability; Counterparts. The invalidity or unenforceability of any provision of this Letter Agreement will not affect the
validity or enforceability of any other provision. If any provision of this Letter Agreement is held invalid or unenforceable in part, the remaining portion of such provision, together with all other provisions of this Letter Agreement, will remain
valid and enforceable and continue in full force and effect to the fullest extent consistent with law. This Letter Agreement may be executed in several counterparts, each of which will be deemed an original, and such counterparts will constitute one
and the same instrument. 
 (f) Section 409A of the Code. It is the parties’ intent that the payments and
benefits provided under this Letter Agreement be exempt from, or comply with, Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and this Letter Agreement will be interpreted accordingly. In this regard
each payment under this Letter Agreement will be treated as a separate payment for purposes of Section 409A of the Code. If and to the extent that any payment or benefit is determined by the Company (1) to constitute “non-qualified deferred compensation” subject to Section 409A of the Code and (2) such payment or benefit must be delayed for six months following your separation from service in order to comply
with Section 409A(a)(2)(B)(i) of the Code and not cause you to incur any additional tax under Section 409A of the Code, then the Company will delay making any such payment or providing such benefit until the expiration of such six-month period (or, if earlier, your death or a “change in control event” as such term is defined in Section 1.409A-3(i)(5) of the Code). All reimbursements
and in-kind benefits provided under this Letter Agreement will be made or provided in accordance with the requirements of Section 409A of the Code, including, where applicable, the requirement that
(i) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement, or
in-kind benefits to be provided, in any other calendar year (except that a plan providing health benefits may impose a generally applicable limit on the amount that may be reimbursed or paid); (ii) the right
to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit; and (iii) any reimbursement of an expense must be made on or before the last day of the calendar year
following the calendar year in which the expense was incurred. 
 (g) The Company will reimburse you for, or pay directly, all reasonable
legal fees (up to $55,000, on a nontax or nontax-equivalent basis) incurred by you in connection with transition planning, negotiation and execution of this Letter Agreement. Such payment will be made within thirty days following the Company’s
receipt of an invoice for such amounts. 
 [Remainder of Page Left Intentionally Blank] 

  
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 To indicate your agreement with the foregoing, please sign and return this Letter Agreement to
me. 
  

			
	Very truly yours,
	
	ANTHEM, INC.
		
	By:	 	 /s/ Lewis Hay III

		 	Name: Lewis Hay III
		 	 Title: Chair, Compensation Committee of the

          Board of Directors

 Accepted and Agreed: 

/s/ Joseph R.
Swedish                                 

Name: Joseph R. Swedish 
 Date: November 5, 2017
                           

[Signature Page to Letter Agreement]zbh-ex105_69.htm

Exhibit 10.5

CORPORATE EXECUTIVE CONFIDENTIALITY, NON-COMPETITION
AND NON-SOLICITATION AGREEMENT

 

This Corporate Executive Confidentiality, Non-Competition and Non-Solicitation Agreement (“Agreement”) is made by and between Zimmer, Inc., a corporation having its principal headquarters in Warsaw, Indiana, and ___________________ (“Employee”).

Recitals

A.For purposes of this Agreement, the term "Company" means Zimmer, Inc., Zimmer US, Inc. and/or any or each of their affiliates, parents, or direct or indirect subsidiaries (including but not limited to Biomet, Inc. and its affiliates, parents or direct or indirect subsidiaries), as well as any successor-in-interest to Zimmer, Inc., Zimmer US, Inc. and/or to any of their direct or indirect subsidiaries, affiliates, or parents.

B.Employee is employed or is being employed by Company in an executive and/or high-level managerial capacity in which Employee has or will have extensive access to trade secrets and confidential information of Company, and/or is being offered certain equity incentives.

C.Company has offered Employee employment and/or other valuable consideration, which may include without limitation such consideration as a job promotion, an increase in compensation, and/or an equity award, contingent upon Employee's entering into this Agreement.

Agreement

NOW, THEREFORE, in consideration of the foregoing recitals, the promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Company and Employee agree to be legally bound as follows:

1.Acknowledgements.  Employee acknowledges that Company is engaged in the highly competitive business of the development, manufacture, distribution, and sale of orthopedic- and musculoskeletal-related medical and surgical devices, products, and services, including but not limited to hip, knee, trauma, extremities, craniomaxillofacial, thoracic, dental rehabilitation, spine, microfixation, bone healing, bone cement, surgical, sports medicine, orthopedic diagnostic (including unique diagnostic products developed for or by Company) and/or biologics devices, products, processes and services, and that Employee serves or will serve in an executive and/or high-level managerial capacity for Company and in that capacity Employee has and/or will have access to and has and/or will gain knowledge of substantial trade secrets and confidential information of Company.

2.Non-Disclosure and Ownership of Confidential Information.  Employee acknowledges that Confidential Information is a valuable, special, and unique asset of Company, and solely the property of Company, and agrees to the following; provided, however, that this policy does not, in any manner, prevent employees from filing a complaint with, providing information to, or participating in an investigation conducted by, the Securities and Exchange 

 

 

Commission, the United States Equal Opportunity Commission or any other governmental or law enforcement agency.

(a)Confidential Information Defined.  The term “Confidential Information” includes, but is not limited to, any and all of Company’s trade secrets, confidential and proprietary information and all other information and data of Company that is not generally known to the public or other third parties who could derive economic value from its use or disclosure.  Confidential Information includes, without limitation, technical information such as product specifications, compounds, formulas, improvements, discoveries, developments, designs, inventions, techniques, new products and surgical training methods, and research and development information; confidential business methods and processes; business plans and strategies; marketing plans and strategies; non-public financial information including budgets, sales data, sales forecasts, sales quotas, and information regarding profits or losses; office optimization and logistics information; information pertaining to current and prospective customers; information pertaining to distributors and sales structures; pricing information; discount schedules; costing information; personnel information; compensation structure, schedules and plans; and information about current and prospective products or services, whether or not reduced to writing or other tangible medium of expression, including work product created by Employee in rendering services for Company.

(b)Non-Disclosure of Confidential Information.  During Employee's employment with Company and thereafter, Employee will not disclose, transfer, or use (or seek to induce others to disclose, transfer, or use) any Confidential Information for any purpose other than( i) disclosure to authorized employees and agents of Company who are bound to maintain the confidentiality of the Confidential Information; (ii) for authorized purposes during the course of Employee’s employment in furtherance of Company’s business; and/or (iii) as specifically allowed or required under applicable law.  Employee's non-disclosure obligations shall continue as long as the Confidential Information remains confidential and shall not apply to information that becomes generally known to the public through no fault or action of Employee. The Federal Defend Trade Secrets Act provides that individuals may not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made (a) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney if such disclosure is made solely for the purpose of reporting or investigating a suspected violation of law or for pursuing an anti-retaliation lawsuit; or (b) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal and the individual does not disclose the trade secret except pursuant to a court order.

(c)Protection of Confidential Information.  Employee will notify Company in writing of any circumstances which may constitute unauthorized disclosure, transfer, or use of Confidential Information.  Employee will use Employee's best efforts to protect Confidential Information from unauthorized disclosure, transfer, or use.  Employee will implement and abide by all procedures adopted by Company to prevent unauthorized disclosure, transfer, or use of Confidential Information. Notwithstanding the above requirements, nothing in this Agreement shall restrict Employee's right to make disclosures specifically allowed or required under applicable law.

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3.Ownership of Intellectual Property.

(a)Invention Defined.  The term “Invention” includes, but is not limited to ideas, programs, processes, systems, intellectual property, works of authorship, copyrightable materials, discoveries, and/or improvements which Employee discovers, invents, originates, develops, makes, authors, or conceives alone or in conjunction with others during Employee’s employment with Company and/or within six (6) months after Employee’s employment ends which relate to Company’s present or future business.  An Invention is covered by this Agreement regardless of whether (i) Employee conceived of the Invention in the scope of Employee’s employment; (ii) the Invention is patentable; or (iii) Company takes any action to commercialize or develop the Invention.

(b)Ownership of Inventions.  Inventions are solely the property of Company.  Employee agrees that by operation of law and/or the effect of this Agreement Employee does not have any rights, title, or interest in any Inventions.  Notwithstanding, Employee may be recognized as the inventor of an Invention without retaining any other rights associated therewith.

(c)Disclosure and Assignment of Inventions.  Employee hereby assigns to Company all right, title and interest Employee may have in any Inventions that are discovered, invented, originated, developed, made, authored, or conceived by Employee (whether alone or with others) during Employee’s employment with Company and/or within six (6) months after Employee’s employment ends which relate to Company’s present or future business.  Employee agrees to: (i) promptly disclose all such Inventions in writing to Company; (ii) keep complete and accurate records of all such Inventions, which records shall be Company property and shall be retained on Company premises; and (iii) execute such documents and do such other acts as may be necessary in the opinion of Company to establish and preserve Company’s property rights in all such Inventions.  This section shall not apply to any Invention for which no equipment, supplies, facility or trade secret information of Company was used and which was developed entirely on Employee’s own time, and (1) which does not relate (a) directly to the business of Company, or (b) to Company’s actual or demonstrably anticipated research or development, and (2) which does not result from any work performed by Employee for Company.

(d)Works of Authorship.  All written, graphic or recorded material and all other works of authorship fixed in a tangible medium of expression made or created by Employee, solely or jointly with others, during Employee’s employment with Company and relating to Company’s business, actual or contemplated, shall be the exclusive property of Company (collectively “Works”).  Company will have the exclusive right to copyright such Works.  Employee agrees that if any Work created while employed by Company, whether or not created at the direction of Company, is copyrightable, such Work will be a “work made for hire,” as that term is defined in the copyright laws of the United States.  If, for any reason, any copyrightable Works created by Employee are excluded from that definition, Employee hereby assigns and conveys to Company all right, title and interest (including any copyright and renewals) in such Works.

(e)Attribution and Use of Works and Inventions; Waiver of Assertion of “Moral” Rights in Inventions and Works.  Employee agrees that Company and its licensees are not 

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required to designate Employee as author, inventor or developer of any Works or Inventions when distributed or otherwise.  Employee hereby waives, and agrees not to assert, any “moral” rights in any Inventions and Works.  Employee agrees that Company and its licensees shall have sole discretion with regard to how and for what purposes any Inventions or Works are used or distributed.

(f)Employee Cooperation in Establishment of Company Proprietary Rights.  Employee will sign documents of assignment, declarations and other documents and take all other actions reasonably required by Company, at Company’s expense, to perfect and enforce any of its proprietary rights.  In the event Company is unable, for any reason whatsoever, to secure Employee’s signature to any lawful or necessary documents required to apply for, prosecute, perfect, or assign any United States or foreign application for Letters Patent, trademark, copyright registration, or other filing to protect any Invention or Work, Employee hereby irrevocably designates and appoints Company and its duly authorized officers and agents as Employee’s agent and attorney in fact, to act for and on Employee’s behalf, to execute and file any such application, registration or other filing, and to do all other lawfully permitted acts to further the prosecution, issuance or assignment of Letters Patent or other protections on such Inventions, or registrations for trademark or copyright or other protections on such Works, with the same force and effect as if executed by Employee.

4.Return of Confidential Information and Company Property.  Immediately upon termination of Employee’s employment with Company, Employee shall return to Company all of Company’s property relating to Company’s business, including without limitation all of Company’s property which is in the possession, custody, or control of Employee such as Confidential Information, documents, hard copy files, copies of documents and electronic information/files, and equipment (e.g., computers and mobile phones).

5.Obligations to Other Entities or Persons.  Employee warrants that Employee is not bound by the terms of a confidentiality agreement or any other legal obligation which would either preclude or limit Employee from disclosing or using any of Employee’s ideas, inventions, discoveries or other information or otherwise fulfilling Employee’s obligations to Company.  While employed by Company, Employee shall not disclose or use any confidential information belonging to another entity or other person.

6.Conflict of Interest and Duty of Loyalty.  During Employee’s employment with Company, Employee shall not engage, directly or indirectly, in any activity, employment or business venture, whether or not for remuneration, that (i) is competitive with Company’s business; (ii) deprives or potentially could deprive Company of any business opportunity; (iii) conflicts or potentially could conflict with Company’s business interests; or (iv) is otherwise detrimental to Company, including but not limited to preparations to engage in any of the foregoing activities.

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7.Restrictive Covenants.  Employee agrees to, and covenants to comply with, each of the following separate and divisible restrictions:

(a)Definitions.

(1)“Competing Product” is defined as any implant, device, or medical product(s), service(s), instrument(s) or supplies that is or are the same as, related to, or similar to any product, process or service that Company is researching, developing, manufacturing, distributing, selling and/or providing at the time of Employee’s separation from employment with Company (including, but not limited to, any product or service Company’s Hip, Knee, Trauma, Extremities, Craniomaxillofacial, Thoracic, Biologics, Surgical, Sports Medicine, Microfixation, Bone Healing, Bone Cement, Orthopedic Diagnostic, Spine and/or Dental division is researching, developing, manufacturing, distributing, selling and/or providing at the time of Employee's separation from employment with Company).

(2)“Competing Organization” is defined as any organization that researches, develops, manufactures, markets, distributes and/or sells one or more Competing Products.  A Competing Organization is diversified if it operates multiple, independently operating business divisions, units, lines or segments some of which do not research, develop, manufacture, market, distribute and/or sell any Competing Products.

(3)“Prohibited Capacity” is defined as (a) any same or similar capacity to that held by Employee at any time during Employee's last two (2) years of employment with Company; (b) any executive or managerial capacity; or (c) any capacity in which Employee’s knowledge of Confidential Information and/or Inventions would render Employee’s assistance to a Competing Organization a competitive advantage.

(4)“Restricted Geographic Area” is defined as all countries, territories, parishes, municipalities and states in which Company is doing business or is selling its products at the time of termination of Employee’s employment with Company, including but not limited to every parish and municipality in the state of Louisiana.  Employee acknowledges that this geographic scope is reasonable given Employee's position with Company, the international scope of Company's business; and the fact that Employee could compete with Company from anywhere Company does business.   

(5)“Restricted Period” is defined as the date Employee executes this Agreement, continuing through the eighteen (18) months after the Employee’s last day of employment with Company unless otherwise extended by Employee’s breach of this Agreement.  The running time on the Restricted Period shall be suspended during any period in which Employee is in violation of any of the restrictive covenants set forth herein, and all restrictions shall automatically be extended by the period Employee was in violation of any such restrictions.

(6)“Customer” is defined as any person or entity with respect to whom, as of the date of Employee’s separation from Company employment or at any time during the two years prior to such separation, Company sold or provided any products and/or services. 

(7)“Active Prospect” is defined as any person or entity that Company individually and specifically marketed to and/or held discussions with regarding the distribution 

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and/or sale of any of Company's products, processes or services at any time during the last six (6) months of Employee’s employment with Company.

(8)“Severance Benefit Period” is the period of time represented by the total amount of any severance benefit offered to Employee (whether or not actually paid).  By way of illustration, if Employee were offered a lump-sum severance benefit equivalent to ten (10) weeks of Employee’s final base pay upon termination of his or her employment with the Company, Employee’s Severance Benefit Period would be 10 weeks, whether or not Employee actually fulfilled all requirements of receiving, and did receive, any portion of the severance benefit.

(b)Restrictive Covenants.  During the Restricted Period, Employee agrees to be bound by each of the following independent and divisible restrictions:  

(1)Covenant Not to Compete.  

(A)Employee will not, within the Restricted Geographic Area, be employed by, work for, consult with, provide services to, or lend assistance to any Competing Organization in a Prohibited Capacity.  

(B)Employee may be employed by, work for, consult with, provide services to, or lend assistance to a Competing Organization provided that: (i) the Competing Organization’s business is diversified; (ii) the part of the Competing Organization's business with which Employee will be affiliated would not, evaluated on a stand-alone basis, be a Competing Organization; (iii) Employee’s affiliation with the Competing Organization does not involve any Competing Products; (iv) Employee provides Company a written description of Employee’s anticipated activities on behalf of the Competing Organization which includes, without limitation, an assurance satisfactory to Company that Employee’s affiliation with the Competing Organization does not constitute a Prohibited Capacity; and (v) Employee's affiliation with the Competing Organization does not constitute a competitive disadvantage to Company.

(2)Covenant Not to Solicit Customers or Active Prospects.  Employee will not, directly or indirectly, (i) provide, sell, or market; (ii) assist in the provision, selling or marketing of; or (iii) attempt to provide, sell or market any Competing Products to any of Company’s Customers or Active Prospects located in the Restricted Geographic Area.

(3)Covenant Not to Interfere With Business Relationships.  Employee will not, within the Restricted Geographic Area, urge, induce or seek to induce any of Company’s independent contractors, subcontractors, distributors, brokers, consultants, sales representatives, customers, vendors, suppliers or any other person or entity with whom Company has a business relationship at the time of Employee's separation from Company employment to terminate its or their relationship with, or representation of, Company or to cancel, withdraw, reduce, limit or in any manner modify any such person’s or entity’s business with, or representation of, Company

(4)Covenant Not to Solicit Company Employees.  Employee will not employ, solicit for employment, or advise any other person or entity to employ or solicit for employment, any individual employed by Company at the time of Employee's separation from Company 

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employment, or otherwise directly or indirectly induce or entice any such employee to leave his/her employment with Company.

(5)Covenant Not to Disparage Company.  Employee will not make or publish any disparaging or derogatory statements about Company; about Company's products, processes, or services; or about Company's past, present and future officers, directors, employees, attorneys and agents.  Disparaging or derogatory statements include, but are not limited to, negative statements regarding Company’s business or other practices; provided, however, nothing herein shall prohibit Employee from providing any information as may be compelled by law or legal process.

8.Reasonableness of Terms.  Employee acknowledges and agrees that the restrictive covenants contained in this Agreement restrict Employee from engaging in activities for a competitive purpose and are reasonably necessary to protect Company’s legitimate interests in Confidential Information, Inventions, and goodwill.  Additionally, Employee acknowledges and agrees that the restrictive covenants are reasonable in all respects, including, but not limited to, temporal duration, scope of prohibited activities and geographic area.  Employee further acknowledges and agrees that the restrictive covenants set forth in this Agreement will not pose unreasonable hardship on Employee and that Employee will have a reasonable opportunity to earn an equivalent livelihood without violating any provision of this Agreement.

9.Non-Competition Period Payments.    

(a)Eligibility and Amount.  In the event of Employee’s involuntary separation from employment with the Company for a reason that renders Employee eligible for benefits under the terms of the Company’s Severance Plan, then to the extent Employee is denied, solely because of the restrictive covenant provisions of Section 7 of this Agreement, a specific full-time or part-time employment, consulting, or other position that would otherwise be offered to Employee by a Competing Organization, and provided Employee satisfies all conditions stated herein, then upon expiration of Employee’s Severance Benefit Period, Company will make monthly payments to Employee for each month Employee remains unemployed through the end of the Restricted Period.  These monthly payments shall equal the lesser of  Employee’s monthly base pay at the time of Employee's separation from Company employment (exclusive of bonus and other extra compensation and any other employee benefits) or the monthly compensation that would have been offered to Employee by the Competing Organization.  This Section 9 will not apply if Employee leaves employment with the Company voluntarily or if Company terminates Employee’s employment for a reason or reasons that render Employee ineligible for benefits under terms of the Company’s Severance Plan.

(b)Verification of Eligibility for Non-Competition Period Payments.  To qualify for payments under this Section 9, Employee must provide Company detailed written documentation supporting eligibility for payment, including, at a minimum, (i) the name and location of the Competing Organization that would have employed Employee but for the provisions of Section 7 of this Agreement, (ii) the title, nature, and detailed job responsibilities of the employment position with the Competing Organization that Employee was denied, (iii) the date Employee was denied the employment position, and (iv) the name and contact information of a managerial employee at the Competing Organization who has sufficient authority to confirm that Employee 

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was denied this specific employment position with the Competing Organization solely because Employee is subject to the provisions of Section 7 of this Agreement (the “eligibility documentation”).  Upon receipt of the eligibility documentation, Company will determine eligibility for payment and, if eligibility is established, payments will commence as of the date of Company’s receipt of the eligibility documentation or the date Employee’s Severance Benefit Period ends, whichever is later.  

(c)Obligation to Pursue Replacement Employment and Verification of Continued Eligibility for Non-Competition Period Payments.  Employee is obligated to diligently seek and pursue replacement employment that does not violate Section 7 of this Agreement ("replacement employment") during any period in which Employee seeks and/or accepts payment from Company under this Section 9.  After eligibility for non-competition period payments is established, Employee will, on or before the 15th day of each month of eligibility for continued payments, submit to Company a written statement (i) identifying by name and address all prospective employers with whom Employee has applied or inquired about employment; (ii) identifying positions sought with each listed employer and specific actions taken in seeking each position; (iii) describing all other efforts made to obtain replacement employment; and (iv) describing any offers of employment received, including the name of the employer; the nature, title, and compensation terms of the position offered; the actual or anticipated start date if the offer has been accepted; and the reason(s) for declining if the offer was declined.  

(d)Effect of Replacement Employment on Non-Competition Period Payments.  If Employee is denied a specific employment, consulting or other such position with a Competing Organization solely because of the restrictive covenant provisions of Section 7 of this Agreement but obtains other work for compensation, and the monthly compensation (including base pay, commissions, incentive compensation, bonuses, fees and other compensation) for the replacement work is less than Employee’s monthly base pay at the time of Employee’s separation from employment with Company, Company agrees to pay Employee the difference for each such month through the end of the Restricted Period, again upon expiration of any severance benefits which Employee was offered and provided Employee satisfies all conditions stated herein, with monthly payments not to exceed the amount to which Employee is entitled under subsection (a) of this Section 9. Employee shall submit to Company payroll records and/or any other records reasonably requested by Company showing all compensation received by Employee from the replacement work as a condition of Company's payment of Non-Competition Period Payments covering any period of time when Employee performs work for compensation.  

(e)Company's Right To Provide Release of Obligations in Lieu of Non-Competition Period Payments.  Notwithstanding any of the foregoing provisions of this Section 9, Company reserves the right to release Employee from Employee’s obligations under Section 7 of this Agreement at any time during the Restricted Period, in full or in sufficient part to allow Employee to accept an opportunity that would otherwise be prohibited under this Agreement, at which time Company’s payment obligations under this Section 9 shall cease immediately and Employee shall not be entitled to any further such payments or compensation.

10.Severability, Modification of Restrictions.  The covenants and restrictions in this Agreement are separate and divisible, and to the extent any clause, portion or section of this Agreement is determined to be unenforceable or invalid for any reason, Company and Employee 

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acknowledge and agree that such unenforceability or invalidity shall not affect the enforceability or validity of the remainder of the Agreement.  If any particular covenant, provision or clause of this Agreement is determined to be unreasonable or unenforceable for any reason, including, without limitation, temporal duration, scope of prohibited activity, and/or scope of geographic area, Company and Employee acknowledge and agree that such covenant, provision or clause shall automatically be deemed reformed to have the closest effect permitted by applicable law to the original form and shall be given effect and enforced as so reformed to whatever extent would be reasonable and enforceable under applicable law.  The parties agree that any court interpreting the provisions of this Agreement shall have the authority, if necessary, to reform any such provision to make it enforceable under applicable law.

11.Remedies.  Employee acknowledges that a breach or threatened breach by Employee of this Agreement will give rise to irreparable injury to Company and that money damages will not be adequate relief for such injury.  Accordingly, Employee agrees that Company shall be entitled to obtain injunctive relief, including, but not limited to, temporary restraining orders, preliminary injunctions and/or permanent injunctions, without having to post any bond or other security, to restrain or prohibit such breach or threatened breach, in addition to any other legal remedies which may be available.  In addition to all other relief to which it shall be entitled, Company shall be entitled to cease all payments to which Employee would otherwise be entitled under Section 9 hereto; continue to enforce this Agreement; recover from Employee all payments made under Section 9 to the extent attributable to a time during which Employee was in violation of the covenants for which payment was made; and recover from Employee all litigation costs and attorneys’ fees incurred by Company in any action or proceeding relating to this Agreement in which Company prevails in any respect, including, but not limited to, any action or proceeding in which Company seeks enforcement of this Agreement or seeks relief from Employee’s violation of this Agreement.

12.Survival of Obligations.  Employee acknowledges and agrees that Employee’s obligations under this Agreement, including, without limitation, Employee’s non-disclosure and non-competition obligations, shall survive the termination of Employee’s employment with Company, whether such termination is with or without cause and whether it is voluntary or involuntary.  Employee acknowledges and agrees that nothing in this Agreement alters the at-will nature of Employee's employment and that either Company or Employee may terminate the employment relationship at any time, with or without cause or notice.  Employee further acknowledges and agrees that:  (a) Employee’s non-disclosure, non-disparagement, non-solicitation and non-competition covenants set forth in Sections 2 and 7 of this Agreement shall be construed as independent covenants and that no breach of any contractual or legal duty by Company shall be held sufficient to excuse or terminate Employee’s obligations or to preclude Company from obtaining injunctive relief or other remedies for Employee’s violation or threatened violation of such covenants, and (b) the existence of any claim or cause of action by Employee against Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to Company's enforcement of Employee's obligations under Sections 2 and 7 of this Agreement.

13.Governing Law and Choice of Forum.  This Agreement shall be construed and enforced in accordance with the laws of the State of Indiana, notwithstanding any state’s choice-of-law rules to the contrary.  The parties agree that any legal action relating to this Agreement 

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shall be commenced and maintained exclusively before the United States District Court for the Northern District of Indiana if jurisdiction permits, or otherwise before any appropriate state court located in Kosciusko County, Indiana.  The parties hereby submit to the jurisdiction of such courts and waive any right to challenge or otherwise object to personal jurisdiction or venue, in any action commenced or maintained in such courts.  Language translations aside, the English version shall govern.

14.Enforcement.  The parties agree that Zimmer, Inc., Zimmer US, Inc. and/or any or each of their affiliates, parents, or direct or indirect subsidiaries (including but not limited to Biomet, Inc. and its direct or indirect subsidiaries), as well as any successor-in-interest to Zimmer, Inc., Zimmer US, Inc. and/or to any of their direct or indirect subsidiaries, affiliates, or parents are express and intended parties to and beneficiaries to this Agreement, with full rights to enforce this Agreement independently or in conjunction with each other.

15.Successors and Assigns.  Company shall have the right to assign this Agreement, and, accordingly, this Agreement shall inure to the benefit of, and may be enforced by, any and all successors and assigns of Company, including without limitation by asset assignment, stock sale, merger, consolidation or other corporate reorganization, and shall be binding on Employee.  The services to be provided by Employee to Company are personal to Employee, and Employee shall not have the right to assign Employee’s duties under this Agreement.

16.Modification.  This Agreement may not be amended, supplemented, or modified except by a written document signed by both Employee and a duly authorized officer of Company.

17.No Waiver.  The failure of Company to insist in any one or more instances upon performance of any provision of this Agreement or to pursue its rights hereunder shall not be construed as a waiver of any such provisions or the relinquishment of any such rights.

18.Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed an original, but both of which when taken together will constitute one and the same agreement.

19.Entire Agreement.  This Agreement, including Recitals, constitutes the entire agreement of the parties with respect to the subjects specifically addressed herein, and supersedes any prior agreements, understandings, or representations, oral or written, on the subjects addressed herein.  Notwithstanding the foregoing, to the extent the employee has an existing non-competition, confidentiality, and/or non-solicitation agreement in favor of Company and has breached or violated the terms thereof, Company may continue to enforce its rights and remedies under and pursuant to such existing agreement.

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Employee’s signature below indicates that Employee has read the entire Agreement, understands what Employee is signing, and is signing the Agreement voluntarily.  Employee agrees that Company advised Employee to consult with an attorney prior to signing the Agreement.

 

 

 

“EMPLOYEE”

 

 

____________________________________

(Employee Signature)

 

Printed Name: ________________________

 

Date:

 

 

“COMPANY”

 

 

 

By:_______________________________________

 

 

Printed Name: _____________________________

 

Title: _____________________________________

 

Date: _____________________________________

 

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