Document:

exv10w2

Exhibit 10.2

Zimmer Holdings, Inc.

2009 STOCK INCENTIVE PLAN

NONQUALIFIED STOCK OPTION GRANTED TO

OPTIONEE:

STOCK AWARD SHARES:

EXERCISE PRICE PER SHARE:

AWARD DATE:

 

ZIMMER HOLDINGS, INC.

2009 STOCK INCENTIVE PLAN

NONQUALIFIED STOCK OPTION GRANT FOR NON-U.S. EMPLOYEES

     Zimmer Holdings, Inc. (the “Company”) hereby grants pursuant to the terms of the heretofore
designated stock option plan (the “Plan”) to the heretofore named employee (the “Optionee”), not as
or in lieu of any salary or other compensation for her/his services, and upon the terms and
conditions set forth below, the option to purchase the number of fully paid and non-assessable
shares of the common stock of Zimmer Holdings, Inc., par value $.01 per share (“Common Stock”),
heretofore set forth (this “Option”) on or before the expiration of ten years from the date hereof
(the “Expiration Date”) at the aforementioned exercise price per share. The Board of Directors of
the Company (the “Board”) has authorized the Compensation and Management Development Committee of
the Board (the “Committee”) to administer the Plan.

     This Option is granted upon and subject to the following terms and conditions:

     1. No Option may be exercised hereunder for the purchase of shares unless the Optionee shall
have remained in the continuous employ of the Company or of one of its subsidiaries for one year
following the date hereof. Thereafter, provided that the Optionee shall at the time of such
exercise, except as specifically set forth herein to the contrary, have been in the employ of the
Company or of one of its subsidiaries, this Option may from time to time prior to the Expiration
Date be exercised in the manner hereinafter set forth, and this Option may be exercised (i) only to
the extent of 25 percent of the number of shares to which this Option applies on or after the first
anniversary and prior to the second anniversary of the date of grant hereof, (ii) only to the
extent of 50 percent of the number of shares to which this Option applies on or after the second
anniversary and prior to the third anniversary of the date of grant hereof, (iii) only to the
extent of 75 percent of the number of shares to which this Option applies on or after the third
anniversary and prior to the fourth anniversary of the date of grant hereof; and (iv) in its
entirety on or after the fourth anniversary of the date of grant hereof.

     2. This Option hereby granted may be exercised, in whole or in part in accordance with the
vesting schedule set forth in Section 1 above, by the delivery of an exercise notice to the Company
or the Company’s designated agent. The exercise notice will be effective upon receipt by the
appropriate person at the Company or the Company’s agent and upon payment of the exercise price,
any fees and any other amounts due to cover Tax-Related Items as defined and described in Section 8
herein. Such exercise notice (which, in the Company’s discretion, may be, or may be required to
be, given by electronic, telefax or other specified means) shall specify the number of shares with
respect to which this Option is being exercised and such other representations and agreements as
may be required by the Company. In the event the specified Expiration Date falls on a day which is
not a regular business day at the Company’s executive office in Warsaw, Indiana, U.S.A., then such
written notification must be received on or before the last regular business day prior to such
Expiration Date. Payment is to be made by certified personal check, or bank draft, by payment
through a broker in accordance with procedures permitted by Regulation T of the
Federal Reserve Board, in shares of Common Stock owned by the Optionee having a fair market
value at the date of exercise equal to the purchase price for such shares, in any combination of
the foregoing or by any other method that the Committee approves; provided, however, that payment
in shares of Common Stock will not be permitted unless at least 100 shares of Common Stock are
required and delivered for such purpose. Delivery of shares for exercising an option shall be made
either through the physical delivery of shares or through an appropriate certification or
attestation of valid ownership. No shares shall be issued until full payment for such shares has
been made. At its discretion, the Committee may modify or suspend any method for the exercise of
this Option. The Optionee shall have the rights of a stockholder only with respect to shares of
stock that have been recorded on the Company’s books on behalf of the Optionee or for which
certificates have been issued to her/him.

 

 

     3. The Company shall not be required to issue or deliver any certificate or certificates for
shares of its Common Stock purchased upon the exercise of any part of this Option prior to (i) the
admission of such shares to listing on any stock exchange on which the stock may then be listed,
(ii) the completion of any registration or other qualification of such shares under any state or
federal law or rulings or regulations of any governmental regulatory body, (iii) the obtaining of
any consent or approval or other clearance from any governmental agency, which the Company shall,
in its sole discretion, determine to be necessary or advisable, and (iv) the payment to the
Company, upon its demand, of any amount requested by the Company for the purpose of satisfying the
Optionee’s obligations under Section 8 herein.

     4. This Option is not transferable by the Optionee otherwise than by will or by the laws of
descent and distribution, and may be exercised, during the lifetime of the Optionee, only by
her/him; provided that the Board may permit further transferability, on a general or specific
basis, and may impose conditions and limitations on any permitted transferability.

     5. Notwithstanding any other provision hereof:

          (a) If the Optionee shall retire or cease to be employed by the Company or any of its
subsidiaries for any reason (other than death) after the Optionee shall have been continuously so
employed for one year from the aforementioned date of grant, the Optionee may exercise this Option
only to the extent that the Optionee was otherwise entitled to exercise it at the time of such
retirement or cessation of employment with the Company or any of its subsidiaries, but in no event
after (i) the date that is ten years next succeeding the date this Option was granted, in the case
of retirement or cessation of employment with the Company or any of its subsidiaries on or after
the Optionee’s 65th birthday, or on or after the Optionee’s 55th birthday after having completed
ten years of service with the Company or any of its subsidiaries, or on or after the date the sum
of the Optionee’s attained age (expressed as a whole number) plus completed years of service
(expressed as a whole number) plus one (1) equals at least 70 and the Optionee has completed ten
years of service with the Company or any of its subsidiaries and the Optionee’s employment
terminates for any reason other than death, resignation, willful misconduct, or activity deemed
detrimental to the interest of the Company and, where applicable, the Optionee has executed a
general release, a covenant not to compete and/or a covenant not to solicit as required by the
Company, or (ii) the date that is three months next succeeding retirement or cessation of
employment, in the case of any other retirement or cessation of employment with the Company or any
of its subsidiaries.

          (b) Whether military or government service or other bona fide leave of absence shall
constitute termination of employment for the purpose of this Option shall be determined in each
case by the Committee in its sole discretion.

          (c) Except as provided in Section 4, in the event of the death of the Optionee while in the
employ of the Company or of any of its subsidiaries or within whichever period after retirement or
cessation of employment of the Optionee specified in subparagraph (a) is applicable, and after
he/she shall have been continuously so employed for one year after the granting of her/his Option,
this Option theretofore granted to her/him shall be exercisable by the executors, administrators,
legatees or distributees of her/his estate, as the case may be, only to the extent that the
Optionee would have been entitled to exercise it if the Optionee were then living, subject to
subparagraph (d) herein, but in the case of the death of any Optionee after retirement or cessation
of employment in no event after the later of (i) the date twelve months next succeeding such death
and (ii) the last day of the period after retirement or other cessation of employment of the
Optionee specified in subparagraphs (a)(i) or (a)(ii) and provided, in any case, not after the
Expiration Date.

          In the event this Option is exercised by the executors, administrators, legatees or
distributees of the estate of the Optionee, the Company shall be under no obligation to issue stock
hereunder unless and until the Company is satisfied that the person or persons exercising this
Option are the duly appointed legal representatives of the Optionee’s estate or the proper legatees
or distributees thereof.

          (d) The provisions of Section 1 hereof restricting the percentage of shares of an Option
grant which can be exercised prior to the fourth anniversary of the date of such grant shall not
apply if (i) the Optionee has reached age 60; (ii) the Optionee dies while in the employ of the
Company or any of its subsidiaries; (iii) the Optionee shall have retired or ceased to be employed
by the Company or any of its subsidiaries (1) on or after the Optionee’s 65th birthday, or (2) on
or after the Optionee’s 55th birthday after having completed ten years of service with the Company
or any of its subsidiaries, or (3) on or after the date the sum of the Optionee’s attained age
(expressed as a whole number) plus completed years of service (expressed as a whole number) plus
one (1) equals at least 70 and the Optionee has completed ten years of service with the Company or
any of its subsidiaries and the Optionee’s employment terminates for any reason other than death,
resignation, willful misconduct, or activity deemed detrimental to the interest of the Company and,
where applicable, the Optionee has executed a general release, a non-solicitation and/or
non-compete agreement with the Company as required by the Company; or (iv) the Optionee’s
employment terminates for any reason other than death, resignation, willful misconduct, or
activity deemed detrimental to the interest of the Company provided the Optionee executes a general
release and, where applicable, a non-solicitation and/or non-compete agreement with the Company as
required by the Company. For the purposes of this Option, service with Bristol-Myers Squibb
Company and its subsidiaries and affiliates before the effective date of the Plan shall be included
as service with the Company; provided that the Optionee was employed by Bristol-Myers Squibb
Company on August 5, 2001 and has been continuously employed by the Company or a subsidiary of the
Company since August 6, 2001.

     6. Under certain circumstances, if the Optionee’s employment with the Company or one of its
subsidiaries terminates during the three year period following a change in control of the Company,
this Option may become fully vested and exercisable. Please refer to the Plan for more
information.

     7. If prior to the Expiration Date changes occur in the outstanding Common Stock by reason of
stock dividends, recapitalization, mergers, consolidations, stock splits, combinations or exchanges
of shares and the like, the exercise price per

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share and the number and class of shares subject to
this Option shall be appropriately adjusted by the Committee, whose determination shall be
conclusive. If as a result of any adjustment under this paragraph any Optionee should become
entitled to a fractional share of stock, the Optionee shall have the right to purchase only the
adjusted number of full shares and no payment or other adjustment will be made with respect to the
fractional share so disregarded.

     8. Regardless of any action the Company or the Optionee’s employer (the “Employer”) takes
with respect to any or all income tax, social insurance contributions, payroll tax or other
tax-related items related to the Optionee’s participation in the Plan and legally applicable to the
Optionee or deemed by the Company or the Employer to be an appropriate charge to the Optionee even
if technically due by the Company or Employer (“Tax-Related Items”), the Optionee acknowledges that
the ultimate liability for all Tax-Related Items legally due by the Optionee is and remains the
Optionee’s responsibility and may exceed the amount actually withheld by the Company or Employer.
The Optionee further acknowledges that the Company and/or the Employer (1) make no representations
or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of
the Option, including, but not limited to, the grant, vesting or exercise of the Option, the
subsequent sale of shares of Common Stock acquired pursuant to such exercise and the receipt of any
dividends; and (2) do not commit to, and are under no obligation to, structure the terms of the
grant or any aspect of the Option to reduce or eliminate the Optionee’s liability for Tax-Related
Items or achieve any particular result. Further, if the Optionee has become subject to tax in more
than one jurisdiction between the date of grant and the date of any relevant taxable event, the
Optionee acknowledges that the Company or the Employer (or former employer, as applicable) may be
required to withhold or account for Tax-Related Items in more than one jurisdiction.

     Prior to the relevant taxable event or tax withholding event, as applicable, the Optionee
shall pay or make adequate arrangements satisfactory to the Company and/or the Employer to satisfy
all Tax-Related Items. In this regard, the Optionee authorizes the Company and/or the Employer, or
their respective agents, at their discretion, to satisfy the obligations with regard to all
Tax-Related Items legally payable by the Optionee by one or a combination of the following:

     (a) withholding from the Optionee’s wages or other cash compensation paid to the Optionee
by the Company and/or the Employer, within legal limits; or

     (b) withholding from the proceeds of the sale of shares of Common Stock acquired upon
exercise of the Option either through a voluntary sale or through a mandatory sale arranged by the
Company (on the Optionee’s behalf and at the Optionee’s direction pursuant to this authorization);
or

     (c) withholding in shares of Common Stock to be issued upon exercise of the Option.

     To avoid negative accounting treatment, the Company may withhold or account for
Tax-Related Items by considering applicable minimum statutory withholding amounts or other
applicable withholding rates and the Optionee agrees that the amount withheld may exceed the
Optionee’s actual liability. If the obligation for Tax-Related Items is satisfied by withholding
in shares of Common Stock for tax purposes, the Optionee is deemed to have been issued the full
number of shares of Common Stock subject to the exercised Option, notwithstanding that a number of
the shares of Common Stock are held back solely for the purpose of paying the Tax-Related Items due
as a result of any aspect of the Optionee’s participation in the Plan.

     Finally, the Optionee shall pay to the Company or the Employer any amount of Tax-Related
Items that the Company or the Employer may be required to withhold or account for as a result of
the Optionee’s participation in the Plan or the Optionee’s purchase of shares of Common Stock that
cannot be satisfied by the means previously described. The Company may refuse to honor the
exercise and refuse to issue or deliver the shares of Common Stock if the Optionee fails to comply
with the Optionee’s obligations in connection with the Tax-Related Items.

     9. In accepting the Option grant, the Optionee acknowledges, understands and agrees
that:

     (a) the Plan is established voluntarily by the Company, it is discretionary in nature,
and it may be modified, amended, suspended or terminated by the Company at any time;

     (b) the grant of the Option is voluntary and occasional and does not create any
contractual or other right to receive future grants of options, or benefits in lieu of options,
even if options have been granted repeatedly in the past;

     (c) all decisions with respect to future option grants, if any, will be at the sole
discretion of the Company;

     (d) the Optionee’s participation in the Plan shall not create a right to further
employment with the Employer and shall not interfere with the ability of the Employer to terminate
the Optionee’s employment relationship at any time;

     (e) the Optionee is voluntarily participating in the Plan;

     (f) the Option and the shares of Common Stock subject to the Option are an extraordinary
item that does not constitute compensation of any kind for services of any kind rendered to the
Company or any subsidiaries, and which is outside the scope of the Optionee’s employment contract,
if any;

     (g) the Option and the shares of Common Stock are not part of normal or expected
compensation or salary for any purposes, including, but not limited to, calculating any severance,
resignation, termination, redundancy, dismissal, end of service payments, bonuses, long-service
awards, pension or retirement or welfare benefits or similar payments and in no event should be
considered as compensation for, or relating in any way to, past services for the Company or any
subsidiary;

     (h) the Options and the shares of Common Stock are not intended to replace any
pension rights or compensation;

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     (i) the Option grant and the Optionee’s participation in the Plan will not be
interpreted to form an employment contract or relationship with the Company or any subsidiary;

     (j) the future value of the underlying shares of Common Stock is unknown and cannot be
predicted with certainty;

     (k) if the Optionee exercises the Option and acquires shares of Common Stock, the
value of such shares of Common Stock may increase or decrease in value, even below the exercise
price;

     (l) no claim or entitlement to compensation or damages arises from the termination of the
Option or diminution in value of this Option or shares of Common Stock purchased through exercise
of this Option resulting from termination of the Optionee’s active employment with the Company or a
subsidiary (for any reason whatsoever and whether or not in breach of local labor laws) and in
consideration of the grant of Options to which the Optionee is not otherwise entitled, the Optionee
irrevocably agrees never to institute any claim against the Company or the Employer, waives his or
her ability, if any, to bring such claim, and releases the Company and the Employer from any such
claim; if, notwithstanding the foregoing, any such claim is allowed by a court of competent
jurisdiction, then, by participating in the Plan, the Optionee shall be deemed irrevocably to have
agreed not to pursue such claim and agreed to execute any and all documents necessary to request
dismissal or withdrawal of such claims; and

     (m) in the event of termination of the Optionee’s employment as described in Section 5
(whether or not in breach of local labor laws), the Optionee’s right to receive or vest in the
Option under the Plan, if any, will terminate effective as of the date that the Optionee is no
longer actively employed; furthermore, in the event of termination of the Optionee’s employment
(whether or not in breach of local labor laws), the Optionee’s right to exercise the Option after
termination of the Optionee’s employment, if any, will be measured by the date of termination of
the Optionee’s active employment; the Committee shall have the exclusive discretion to determine
when the Optionee is no longer actively employed for purposes of the Optionee’s Option grant.

     10. The Company is not providing any tax, legal or financial advice, nor is the Company
making any recommendations regarding the Optionee’s participation in the Plan, or the Optionee’s
acquisition or sale of the underlying shares of Common Stock. The Optionee is hereby advised to
consult with the Optionee’s own personal tax, legal and financial advisors regarding the Optionee’s
participation in the Plan before taking any action related to the Plan.

     11. The Optionee hereby explicitly and unambiguously consents to the collection, use and
transfer, in electronic or other form, of the Optionee’s personal data as described in this
agreement and any other Option grant materials by and among, as applicable, the Employer, the
Company and its subsidiaries for the exclusive purpose of implementing, administering and managing
the Optionee’s participation in the Plan.

     The Optionee understands that the Company and the Employer may hold certain personal
information about the Optionee, including, but not limited to, the Optionee’s name, home address
and telephone number, date of birth, or other identification number, salary, nationality, job
title, any shares of stock or directorships held in the Company, details of all Options or any
other entitlement to shares of stock awarded, canceled, exercised, vested, unvested or outstanding
in the Optionee’s favor, for the exclusive purpose of implementing, administering and managing the
Plan (“Data”).

     The Optionee understands that Data will be transferred to BNY Mellon or such other stock
plan service provider as may be selected by the Company in the future, which is assisting the
Company with the implementation, administration and management of the Plan. The Optionee
understands that the recipients of the Data may be located in the United States or elsewhere, and
that the recipients’ country (e.g., the United States) may have different data privacy laws and
protections than the Optionee’s country. The Optionee understands that the Optionee may request a
list with the names and addresses of any potential recipients of the Data by contacting the
Optionee’s local human resources representative. The Optionee authorizes the Company, BNY Mellon
and any other possible recipients which may assist the Company (presently or in the future) with
implementing, administering and managing the Plan to receive, possess, use, retain and transfer the
Data, in electronic or other form, for the sole purpose of implementing, administering and managing
the Optionee’s participation in the Plan. The
Optionee understands that Data will be held only as long as is necessary to implement,
administer and manage the Optionee’s participation in the Plan. The Optionee understands that
he/she may, at any time, view Data, request additional information about the storage and processing
of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any
case without cost, by contacting in writing the Optionee’s local human resources representative.
The Optionee understands, however, that refusing or withdrawing his/her consent may affect the
Optionee’s ability to participate in the Plan. For more information on the consequences of the
Optionee’s refusal to consent or withdrawal of consent, the Optionee understands that he/she may
contact his/her local human resources representative.

     12. Until the Optionee is advised otherwise by the Committee, all notices and other
correspondence with respect to this Option will be effective upon receipt at the following address:

Compensation and Management Development Committee of the Board of Directors of Zimmer Holdings, Inc.

Zimmer Holdings, Inc.

345 East Main Street

Post Office Box 708

Warsaw, Indiana 46581-0708

U.S.A.

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     13. Except as explicitly provided in this agreement, this agreement will not confer any
rights upon the Optionee, including any right with respect to continuation of employment by the
Company or any of its subsidiaries or any right to future awards under the Plan. In no event shall
the value, at any time, of this agreement, the Common Stock covered by this agreement or any other
benefit provided under this agreement be included as compensation or earnings for purposes of any
other compensation, retirement, or benefit plan offered to employees of the Company or its
subsidiaries unless otherwise specifically provided for in such plan.

     14. As a condition of receiving the Option, the Optionee has entered into a non-solicitation
and/or non-competition agreement with the Company. The Company may, at its discretion, require
execution of a restated non-disclosure, non-solicitation and/or non-competition agreement as a
condition of receiving the Option. Should the Optionee decline to sign such a restated agreement
as required by the Company and, therefore, forego receiving the Option, the Optionee’s most
recently signed non-disclosure, non-solicitation and/or non-competition agreement shall remain in
full force and effect. The Optionee understands and agrees that if he or she violates any
provision of any such agreement that remains in effect at the time of the violation, the Committee
may require the Optionee to forfeit his or her right to any unexercised portion of the Option, even
if vested, and, to the extent any portion of the Option has previously been exercised, the
Committee may require the Optionee to return to the Company any shares of Common Stock received by
the Optionee upon such exercise or any cash proceeds received by the Optionee upon the sale of any
such shares.

     15. The Company may, in its sole discretion, decide to deliver any documents related to
current or future participation in the Plan by electronic means. The Optionee hereby consents to
receive such documents by electronic delivery and agrees to participate in the Plan through an
on-line or electronic system established and maintained by the Company or a third party designated
by the Company.

     16. The Company reserves the right to impose other requirements on the Optionee’s
participation in the Plan, on the Option and on any shares of Common Stock acquired under the Plan,
to the extent the Company determines it is necessary or advisable in order to comply with local law
or facilitate the administration of the Plan, and to require the Optionee to sign any additional
agreements or undertakings that may be necessary to accomplish the foregoing.

     17. Notwithstanding any other provisions of this agreement, the Optionee understands that the
Company will not be obligated to issue any Common Stock pursuant to the exercise of the Options if
the issuance of such Common Stock shall constitute a violation by the Optionee or the Company of
any provision of law or regulation of any governmental authority. Any determination by the Company
in this regard shall be final, binding and conclusive.

     18. The Optionee’s Options shall be subject to any special provisions set forth in the
Addendum to this agreement for the Optionee’s country, if any. If the Optionee relocates to one of
the countries included in the Addendum during the life of the Option, the special provisions for
such country shall apply to the Optionee, to the extent the Company determines that the application
of such provisions is necessary or advisable in order to comply with local law or facilitate the
administration of the Plan. The Addendum, if any, constitutes part of this agreement.

     19. The Board and the Committee shall have full authority and discretion, subject only to the
express terms of the Plan, to decide all matters relating to the administration and interpretation
of the Plan and this agreement and all such Board and Committee determinations shall be final,
conclusive, and binding upon the Optionee and all interested parties. The terms and conditions set
forth in this agreement are subject in all respects to the terms and conditions of the Plan, as
amended from time to time, which shall be controlling. This agreement contains the entire
understanding of the parties and may not be modified or amended except in writing duly signed by
the parties. The waiver of, or failure to enforce, any provision of this agreement or the Plan by
the Company will not constitute a waiver by the Company of the same provision or right at any other
time or a waiver of any other provision or right. The various provisions of this agreement are
severable and any determination of invalidity or
unenforceability of any provision shall have no effect on the remaining provisions. This
agreement will be binding upon and inure to the benefit of the successors, assigns, and heirs of
the respective parties. The validity and construction of this agreement shall be governed by the
laws of the State of Indiana, excluding any conflicts or choice of law rule or principle that might
otherwise refer construction or interpretation of this agreement to the substantive law of another
jurisdiction. If the Optionee has received this or any other document related to the Plan
translated into a language other than English, and if the meaning of the translated version is
different than the English version, the English version will control.

	 	 	 	 	 	 	 

	 	 	ZIMMER HOLDINGS, INC.
	 
	 	 	 	 	 	 
	 

	 	By
	 	
 
 Chad
F. Phipps	 	 
	 

	 	 	 	Senior Vice President,	 	 
	 

	 	 	 	General Counsel & Secretary	 	 

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Addendum

ZIMMER HOLDINGS, INC.

SPECIAL PROVISIONS FOR OPTIONS IN CERTAIN COUNTRIES

This Addendum includes additional country-specific terms that apply to residents in countries
listed below. This Addendum is part of the agreement. Unless otherwise provided below,
capitalized terms used but not defined herein shall have the same meanings assigned to them in the
Plan and the agreement.

This Addendum also includes information of which the Optionee should be aware with respect to his
or her participation in the Plan. The information is based on the securities, exchange control and
other laws in effect in the respective countries as of March 2011. Such laws are often complex and
change frequently. As a result, the Company strongly recommends that the Optionee does not rely on
the information noted herein as the only source of information relating to the consequences of his
or her participation in the Plan because the information may be out of date at the time the
Optionee exercises the Option or sell shares of Common Stock acquired under the Plan.

In addition, the information is general in nature and may not apply to the Optionee’s particular
situation, and the Company is not in a position to assure the Optionee of any particular result.
Accordingly, the Optionee is advised to seek appropriate professional advice as to how the relevant
laws in his or her country may apply to his or her situation.

Note that if the Optionee is a citizen or resident of a country other than the country in which he
or she is working, or transfers employment after the Option is granted to him or her, or is
considered a resident of another country for local law purposes, the information contained in this
Addendum may not be applicable to the Optionee, and the Company shall, in its discretion, determine
to what extent the terms and conditions or notifications contained herein shall be applicable to
the Optionee.

Austria

Consumer Protection Information. If the provisions of the Austrian Consumer Protection Act are
applicable to the agreement and the Plan, the Optionee may be entitled to revoke his/her acceptance
of the agreement under the conditions listed below:

          (i) If the Optionee accepts the Option outside the business premises of the Company, he/she
may be entitled to revoke his/her acceptance of the agreement, provided the revocation is made
within one week after he/she accepts the agreement.

          (ii) The revocation must be in written form to be valid. It is sufficient if the Optionee
returns the agreement to the Company or the Company’s representative with language which can be
understood as the Optionee’s refusal to conclude or honor the agreement, provided the revocation is
sent within the period set forth above.

Belgium

Tax Information. Options granted to the Optionee must be accepted within 60 days of the offer date
(i.e., the date of Optionee’s offer letter). If the Optionee does not accept the Option, it will
be cancelled. If accepted, an undertaking not to exercise any portion of the Option prior to
January 1, 2015 must be executed and returned to the Employer.

Brazil

Compliance with Laws. By accepting the Option, the Optionee agrees that he or she will comply with
Brazilian law when he or she exercises the Option or sells shares of Common Stock. The Optionee
also

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agrees to report and pay any and all taxes associated with the exercise of the Option, the
sale of the shares of Common Stock acquired pursuant to the Plan and the receipt of any dividends.

Canada

Form of Payment. If the Optionee is a resident of Canada, he/she is prohibited from surrendering
certificates for shares of Common Stock that he/she already owns or from attesting to the ownership
of Common Stock to pay the Exercise Price or any Tax-Related Items in connection with the Option.

Data Privacy Consent. This provision supplements Section 11 of the agreement:

The Optionee hereby authorizes the Company and the Company’s representatives to discuss with and
obtain all relevant information from all personnel, professional or not, involved in the
administration and operation of the Plan. The Optionee further authorizes the Company and any
subsidiaries and the administrator of the Plan to disclose and discuss the Plan with their
advisors. The Optionee further authorizes the Company or any subsidiaries to record such
information and to keep such information in the Optionee’s employee file.

Labor Law Information. This provision replaces Section 9(m) of the agreement.

In the event of the Optionee’s Termination of Employment (whether or not in breach of local labor
laws), his or her right to receive the Option and vest under the Plan, if any, will terminate
effective as of the date that is the earlier of: (1) the date the Optionee receives notice of
Termination of Employment from the Company or the Employer, or (2) the date the Optionee is no
longer actively employed by the Company or the Employer regardless of any notice period or period
of pay in lieu of such notice required under local law (including, but not limited to, statutory
law, regulatory law and/or common law). The Optionee’s right, if any, to exercise the Option after
Termination of Employment will be measured by the date of termination of his/her active employment
and will not be extended by any notice period mandated under local law; the Committee shall have
the exclusive discretion to determine when the Optionee is no longer employed for purposes of the
Option.

Securities Law Information. The Optionee acknowledges and agrees that he/she will only sell shares
of Common Stock acquired through participation in the Plan outside of Canada through the facilities
of a stock exchange on which the Common Stock is listed. Currently, the shares of Common Stock are
listed on the New York Stock Exchange.

Termination of Employment. This provision replaces Section 9(k) of the agreement:

In the event of the Optionee’s termination of employment for any reason (whether or not in breach
of local labor laws), the Optionee’s right to vest in the Option will terminate effective as of the
date that is the earlier of (1) the date the Optionee receives notice of termination of employment
from the Employer or (2) the date the Optionee is no longer actively providing service, regardless
of any notice period or period of pay in lieu of such notice required under applicable laws
(including, but not limited to statutory law, regulatory law and/or common law); the Company shall
have the exclusive discretion to determine when the Optionee is no longer actively employed for
purposes of the Option.

(Quebec Only) Language Acknowledgment

The parties acknowledge that it is their express wish that this agreement, including this Addendum,
as well as all documents, notices and legal proceedings entered into, given or instituted pursuant
hereto or relating directly or indirectly hereto, be provided to them in English.

Consentement relatif à la langue utilisée. Les parties reconnaissent avoir expressément souhaité
que la convention («Agreement») ainsi que cette Annexe, ainsi que tous les documents, avis et
procédures judiciares, éxécutés, donnés ou intentés en vertu de, ou liés directement ou
indirectement à la présente convention, soient rédigés en langue anglaise.

7

 

China

Cashless Exercise Restriction. Due to exchange control laws in China, the Optionee will be
required to exercise the his/her Option using the cashless sell-all exercise method whereby all
shares of Common Stock subject to the exercised Option will be sold immediately upon exercise and
the proceeds of sale, less the exercise price, any Tax-Related Items and broker’s fees or
commissions, will be remitted to the Optionee in accordance with any applicable exchange control
laws and regulations. The Optionee will not be permitted to hold shares of Common Stock after
exercise. The Company reserves the right to provide additional methods of exercise to the Optionee
depending on the development of local law.

Exchange Control Information. The Optionee understands and agrees that, due to exchange control
laws in China, if the Optionee is a PRC citizen he/she will be required to immediately repatriate
to China the cash proceeds from the cashless exercise of the Option. The Optionee further
understands that, under local law, such repatriation of the cash proceeds may need to be
effectuated through a special exchange control account established by the Company or its
subsidiaries, and the Optionee hereby consents and agrees that the proceeds from the sale of Common
Stock acquired under the Plan may be transferred to such special account prior to being delivered
to him/her. The Optionee further agrees to comply with any other requirements that may be imposed
by the Company in the future to facilitate compliance with exchange control requirements in China.

Due to fluctuations in the Common Stock trading price and/or the US dollar/PRC exchange rate
between the exercise/sale date and (if later) when the sale proceeds can be converted into local
currency, the sale proceeds that the Optionee receives may be more or less than the market value of
the Common Stock on the exercise/sale date. The Optionee understands and agrees that the Company
is not responsible for the amount of any loss he or she may incur and that the Company assumes no
liability for any fluctuations in the Common Stock price and/or the US dollar/PRC exchange rate.

If the Optionee is not a PRC citizen, the above requirements will not apply to the Optionee.

Czech Republic

There are no country-specific provisions.

EU Member States

Labor Laws. This provision supplements Section 5 of the agreement.

Notwithstanding the foregoing, if the EU Employment Equality Directive has been implemented in the
Optionee’s country of employment or residence and if the Company receives a legal opinion that
there has been a legal judgment and/or legal development in the Optionee’s jurisdiction that likely
would result in the favorable treatment that applies to the Option under the Plan being deemed
unlawful and/or
discriminatory, the provision regarding termination of employment due to retirement shall not be
applicable to the Optionee.

Finland

There are no country-specific provisions.

Germany

There are no country-specific provisions.

8

 

India

Cashless Sell-To-Cover Exercise Prohibited. Due to the exchange controls in India, the Optionee
must either exercise his/her Option using cash to pay the exercise price or by using the cashless
sell-all method of exercise. The Optionee may not exercise the Optionee’s Option using the
cashless sell-to-cover method of exercise, whereby he/she sells only enough Common Stock to cover
the exercise price. The Company reserves the right to provide additional methods of exercise to
the Optionee depending on the development of local law.

Ireland

Director Notification Requirement. If the Optionee is a director, shadow director, or secretary of
an Irish subsidiary, the Optionee is subject to certain notification requirements under the
Companies Act, 1990. Among these requirements is an obligation to notify the Irish subsidiary in
writing when the Optionee receives an interest (e.g., Option, shares of Common Stock) in the
Company and the number and class of shares or rights to which the interest relates. In addition,
the Optionee must notify the Irish subsidiary when he/she sells shares acquired under the Plan.
This disclosure requirement also applies to any rights or shares acquired by the Optionee’s spouse
or child(ren) (under the age of 18).

Israel

Cashless Exercise Restriction. The Optionee will be required to exercise the his/her Option using
the cashless sell-all exercise method whereby all shares of Common Stock subject to the exercised
Option will be sold immediately upon exercise and the proceeds of sale, less the exercise price,
any Tax-Related Items and broker’s fees or commissions, will be remitted to the Optionee in
accordance with any applicable exchange control laws and regulations. The Optionee will not be
permitted to hold shares of Common Stock after exercise. The Company reserves the right to provide
additional methods of exercise to the Optionee depending on the development of local law.

Italy

Cashless Exercise Restriction. The Optionee will be required to exercise the his/her Option using
the cashless sell-all exercise method whereby all shares of Common Stock subject to the exercised
Option will be sold immediately upon exercise and the proceeds of sale, less the exercise price,
any Tax-Related Items and broker’s fees or commissions, will be remitted to the Optionee in
accordance with any applicable exchange control laws and regulations. The Optionee will not be
permitted to hold shares of Common Stock after exercise. The Company reserves the right to provide
additional methods of exercise to the Optionee depending on the development of local law.

Terms of Grant. By accepting this Option, the Optionee acknowledges that he/she has received a
copy of the Plan, reviewed the Plan, the agreement and this Addendum in their entirety and fully
understand and accept all provisions of the Plan, the agreement and this Addendum.

In addition, the Optionee further acknowledges that he/she has read and specifically and expressly
approve the following Sections of the agreement and this Addendum: Section 8; Section 9; Section
10; Section 11; Section 13; Section 15; Section 16, Section 17 and Section 18.

Data Privacy Notice. This section replaces Section 11 of the agreement.

The Optionee understands that the Company and the Employer are the privacy representatives of the
Company in Italy and may hold certain personal information about the Optionee, including, but not
limited to, the Optionee’s name, home address and telephone number, date of birth, social insurance
or other identification number, salary, nationality, job title, any shares of Common Stock or
directorships held in the Company or any subsidiaries, details of all Options or any other
entitlement to Common Stock awarded, canceled, vested, unvested, exercised or outstanding in the
Optionee’s favor, and that the Company and

9

 

the Employer will process said data and other data
lawfully received from third parties (“Personal Data”) for the exclusive purpose of managing and
administering the Plan and complying with applicable laws, regulations and Community legislation.
The Optionee also understands that providing the Company with Personal Data is mandatory for
compliance with laws and is necessary for the performance of the Plan and that the Optionee’s
denial to provide Personal Data would make it impossible for the Company to perform its contractual
obligations and may effect the Optionee’s ability to participate in the Plan. The Optionee
understands that Personal Data will not be publicized, but it may be accessible by the Employer as
the privacy representative of the Company and within the Employer’s organization by its internal
and external personnel in charge of processing, and by BNY Mellon or any other data processor
appointed by the Company. The updated list of processors and of the subjects to which Data are
communicated will remain available upon request from the Employer. Furthermore, Personal Data may
be transferred to banks, other financial institutions or brokers involved in the management and
administration of the Plan. The Optionee understands that Personal Data may also be transferred to
the independent registered public accounting firm engaged by the Company, and also to the
legitimate addressees under applicable laws. The Optionee further understands that the Company and
its subsidiaries will transfer Personal Data amongst themselves as necessary for the purpose of
implementation, administration and management of the Optionee’s participation in the Plan, and that
the Company and its subsidiaries may each further transfer Personal Data to third parties assisting
the Company in the implementation, administration and management of the Plan, including any
requisite transfer of Personal Data to BNY Mellon or other third party with whom you may elect to
deposit any shares of Common Stock acquired under the Plan or any proceeds from the sale of such
Common Stock. Such recipients may receive, possess, use, retain and transfer Personal Data in
electronic or other form, for the purposes of implementing, administering and managing the
Optionee’s participation in the Plan. The Optionee understands that these recipients may be acting
as controllers, processors or persons in charge of processing, as the case may be, according to
applicable privacy laws, and that they may be located in or outside the European Economic Area,
such as in the United States or elsewhere, in countries that do not provide an adequate level of
data protection as intended under Italian privacy law.

Should the Company exercise its discretion in suspending all necessary legal obligations connected
with the management and administration of the Plan, it will delete Personal Data as soon as it has
accomplished all the necessary legal obligations connected with the management and administration
of the Plan.

The Optionee understands that Personal Data processing related to the purposes specified above
shall take place under automated or non-automated conditions, anonymously when possible, that
comply with the purposes for which Personal Data is collected and with confidentiality and security
provisions as set forth by applicable laws and regulations, with specific reference to Legislative
Decree no. 196/2003.

The processing activity, including the communication and transfer of Personal Data abroad,
including outside of the European Economic Area, as specified herein and pursuant to applicable
laws and
regulations, does not require the Optionee’s consent thereto as the processing is necessary to the
performance of law and contractual obligations related to implementation, administration and
management of the Plan. The Optionee understands that, pursuant to section 7 of the Legislative
Decree no. 196/2003, the Optionee has the right at any moment to, including, but not limited to,
obtain confirmation that Personal Data exists or not, access, verify its contents, origin and
accuracy, delete, update, integrate, correct, blocked or stop, for legitimate reason, the Personal
Data processing. To exercise privacy rights, the Optionee should contact the Employer.
Furthermore, the Optionee is aware that Personal Data will not be used for direct marketing
purposes. In addition, Personal Data provided can be reviewed and questions or complaints can be
addressed by contacting the Optionee’s human resources department.

Japan

There are no country-specific provisions.

10

 

Korea

There are no country-specific provisions.

Malaysia

Insider Trading Notification. The Optionee should be aware of the Malaysian insider-trading rules,
which may impact his or her acquisition or disposal of Common Stock or Options under the Plan.
Under the Malaysian insider-trading rules, the Optionee is prohibited from acquiring or selling
Common Stock or rights to Common Stock (e.g., an Option) when in possession of information which is
not generally available and which he/she knows or should know will have a material effect on the
price of Common Stock once such information is generally available.

Director Notification Obligation. If the Optionee is a director of the Company’s Malaysian
subsidiary, he/she is subject to certain notification requirements under the Malaysian Companies
Act. Among these requirements is an obligation to notify the Malaysian subsidiary in writing when
he/she receives or dispose of an interest (e.g., an Option or Common Stock) in the Company or any
related company. Such notifications must be made within 14 days of receiving or disposing of any
interest in the Company or any related company.

Mexico

Acknowledgement of the Agreement. By accepting the Option, the Optionee acknowledges that he or
she has received a copy of the Plan and the agreement, including this Addendum, which he or she has
reviewed. The Optionee further acknowledges that he or she accepts all the provisions of the Plan
and the agreement, including this Addendum. The Optionee also acknowledges that he or she has read
and specifically and expressly approves the terms and conditions set forth in the “Nature of Award”
section of the agreement, which clearly provide as follows:

	(1)	 	The Optionee’s participation in the Plan does not constitute an acquired right;
	 
	(2)	 	The Plan and the Optionee’s participation in it are offered by the Company on a wholly
discretionary basis;
	 
	(3)	 	The Optionee’s participation in the Plan is voluntary; and

	(4)	 	The Company and its subsidiaries are not responsible for any decrease in the value of any
shares of Common Stock acquired at exercise of the Option.

Labor Law Acknowledgement and Policy Statement. By accepting the Option, the Optionee acknowledges
that Zimmer Holdings, Inc., with registered offices at 345 East Main Street, Warsaw, Indiana,
46580, United States of America, is solely responsible for the administration of the Plan. The
Optionee further acknowledges that his or her participation in the Plan, the grant of Options and
any acquisition of shares of Common Stock under the Plan do not constitute an employment
relationship between the Optionee and Zimmer Holdings, Inc. because the Optionee is participating
in the Plan on a wholly commercial basis and his or her sole employer is Representaciones Zimmer
Inc., S. de R.L. de C.V. (“Zimmer-Mexico”). Based on the foregoing, the Optionee expressly
acknowledges that the Plan and the benefits that he or she may derive from participation in the
Plan do not establish any rights between the Optionee and his or her Employer, Zimmer-Mexico, and
do not form part of the employment conditions and/or benefits provided by Zimmer-Mexico, and any
modification of the Plan or its termination shall not constitute a change or impairment of the
terms and conditions of the Optionee’s employment.
The Optionee further understands that his or her participation in the Plan is the result of a
unilateral and discretionary decision of Zimmer Holdings, Inc., therefore, Zimmer Holdings, Inc.
reserves the absolute right to amend and/or discontinue the Optionee’s participation in the Plan at
any time, without any liability to the Optionee.

11

 

Finally, the Optionee hereby declares that he or she does not reserve to him- or herself any action
or right to bring any claim against Zimmer Holdings, Inc. for any compensation or damages regarding
any provision of the Plan or the benefits derived under the Plan, and that he or she therefore
grants a full and broad release to Zimmer Holdings, Inc., its subsidiaries, affiliates, branches,
representation offices, shareholders, officers, agents and legal representatives, with respect to
any claim that may arise.

Spanish Translation

Reconocimiento del Contrato. Al aceptar la Opción, la Persona a Quien se Hace el Otorgamiento

reconoce que ha recibido una copia del Plan y del contrato, incluyendo este Apéndice, mismos que ha
revisado. La Persona a Quien se Hace el Otorgamiento reconoce, además, que acepta todas las
disposiciones del Plan, y del contrato, incluyendo este Apéndice. La Persona a Quien se Hace el
Otorgamiento también reconoce que ha leído y aprueba de forma expresa los términos y condiciones
establecidos en la sección del contrato intitulada “Naturaleza del Otorgamiento”, que claramente
dispone lo siguiente:

	(1)	 	La participación de la Persona a Quien se Hace el Otorgamiento en el Plan no constituye un
derecho adquirido;

	(2)	 	El Plan y la participación de la Persona a Quien se Hace el Otorgamiento en el Plan son
ofrecidos por la Compañía de forma totalmente discrecional;

(3) La participación de la Persona a Quien se Hace el Otorgamiento en el Plan es voluntaria; y

(4) La Compañía y sus subsidiarias no son responsables por cualquier disminución en el valor de las
Acciones adquiridas al momento de tener derecho conforme a la Opción.

Reconocimiento de Ley Laboral y Declaración de la Política. Al aceptar el Otorgamiento de la
Opciónes, la Persona a Quien se Hace el Otorgamiento reconoce que Zimmer Holdings, Inc., con
oficinas registradas en 345 East Main Street, Warsaw, Indiana, 46580, Estados Unidos de América, es
únicamente responsable de la administración del Plan. La Persona a Quien se Hace el Otorgamiento
además reconoce que su participación en el Plan, la concesión de Opciónes y cualquier adquisición
de acciones de conformidad con el Plan no constituyen una relación de trabajo entre la Persona a
Quien se Hace el Otorgamiento y Zimmer Holdings,, Inc., ya que la Persona a Quien se Hace el
Otorgamiento está participando en el Plan sobre una base totalmente comercial y su único patrón es
Representaciones
Zimmer Inc., S. de R.L. de C.V. (“Zimmer-México”). Derivado de lo anterior, la Persona a Quien se
Hace el Otorgamiento expresamente reconoce que el Plan y los beneficios que pueden derivarle de la
participación en el Plan no establecen ningún derecho entre la Persona a Quien se Hace el
Otorgamiento y su Patrón, Zimmer-México, y no forman parte de las condiciones de trabajo y/o
prestaciones otorgadas por Zimmer-México, y cualquier modificación al Plan o su terminación no
constituirá un cambio o perjuicio de los términos y condiciones de trabajo de la Persona a Quien se
Hace el Otorgamiento.
La Persona a Quien se Hace el Otorgamiento además entiende que su participación en el Plan es
resultado de una decisión unilateral y discrecional de Zimmer Holdings. Inc., por lo tanto Zimmer
Holdings, Inc. se reserva el derecho absoluto de modificar el Plan y/o discontinuar la
participación de la Persona a Quien se Hace el Otorgamiento en el Plan en cualquier momento, sin
responsabilidad alguna para con la Persona a Quien se Hace el Otorgamiento.

Finalmente, La Persona a Quien se Hace el Otorgamiento declara que no se reserva acción o derecho
alguno para presentar una reclamación o demanda en contra de Zimmer Holdings., Inc. por cualquier
compensación o daño o perjuicio en relación con cualquier disposición del Plan o los beneficios
derivados del Plan y, por lo tanto, otorga un amplio y total finiquito a Zimmer Holdings, Inc., sus
subsidiarias, afiliadas, sucursales, oficinas de representación, accionistas, directores,
funcionarios, agentes y representantes con respecto a cualquier reclamación o demanda que pudiera
surgir.

12

 

Netherlands

Insider-Trading Notification. The Optionee should be aware of the Dutch insider-trading rules,
which may impact the sale of Common Stock acquired at exercise of the Option. In particular, the
Optionee may be prohibited from effectuating certain transactions involving Common Stock if he/she
has inside information about the Company.

Under Article 5:56 of the Dutch Financial Supervision Act, anyone who has “insider information”
related to an issuing company is prohibited from effectuating a transaction in securities in or
from the Netherlands. “Inside information” is defined as knowledge of specific information
concerning the issuing company to which the securities relate or the trade in securities issued by
such company, which has not been made public and which, if published, would reasonably be expected
to affect the share price, regardless of the development of the price. The insider could be any
employee in the Netherlands who has inside information as described herein.

Given the broad scope of the definition of inside information, certain employees working in the
Netherlands may have inside information and, thus, would be prohibited from effectuating a
transaction in securities in the Netherlands at a time when they have such inside information.

By accepting the Option and the underlying shares of Common Stock, the Optionee acknowledges having
read and understood the notification above and acknowledge that it is the Optionee’s responsibility
to comply with the Dutch insider trading rules, as discussed herein.

If the Optionee is uncertain whether the insider-trading rules apply to him or her, he/she should
consult his or her personal legal advisor.

New Zealand

Securities Law Information. This Option is granted in reliance upon the exemptions available under
the Securities Act (Overseas Employee Share Purchase Schemes) Exemption Notice 2002. Accordingly,
the Optionee is hereby notified that the following documents are available for his/her review on
the Company intranet site or are available upon request to his/her local human resources
representative: (1) a description of the Plan and its Terms and Conditions, and (2) the most recent
annual report and quarterly reports of the Company.

In addition, the Form S-8 registration statement filed with the Securities and Exchange Commission
under the Securities Act 1933 of the United States (together with the documents incorporated by
reference) is available upon oral or written request, or online at
http://investor.zimmer.com/edgar.cfm. Please direct any requests to the Optionee’s local
human resources representative. The documents incorporated by reference in the Form S-8
registration statement currently include the Plan. The Optionee also may make a separate request
(unrelated to the Form S-8) for a copy of the Plan at any time.

The documents incorporated by reference into the Form S-8 are updated periodically. At the time of
the Optionee’s request, the Company will provide him/her with the most recent documents
incorporated by reference into the Form S-8.

Portugal

Language Consent. The Optionee hereby expressly declares that he or she has full knowledge of the
English language and has read, understood and fully accepted and agreed with the terms and
conditions established in the Plan and the agreement.

Conhecimento da Lingua. Você expressamente declara ter pleno conhecimento do idioma inglês e ter
lido, entendido e totalmente aceito e concordou com os termos e condições estabelecidas no plano e
no acordo.

13

 

Puerto Rico

There are no country-specific provisions.

Singapore

Securities Law Information. This Option grant is being made in reliance of section
273(1)(f) of the Securities and Futures Act (Chap. 289) (“SFA”) for which it is exempt from the
prospectus and registration requirements under the SFA. The Plan has not been lodged or registered
as a prospectus with the Monetary Authority of Singapore. The Optionee should note that the Option
is subject to section 257 of the SFA and the Optionee will not be able to make (i) any subsequent
sale of the shares of Common Stock in Singapore or (ii) any offer of such subsequent sale of the
shares of Common Stock subject to the Option in Singapore, unless such sale or offer in is made
pursuant to the exemptions under Part XIII Division (1) Subdivision (4) (other than section 280) of
the SFA (Chapter 289, 2006 Ed.).

Director Notification Obligation. If the Optionee is a director, associate director or shadow
director of the Company’s Singapore subsidiary, he/she is subject to certain notification
requirements under the Singapore Companies Act. Among these requirements is an obligation to
notify the Company’s Singapore subsidiary in writing when the Optionee receives an interest (e.g.,
an Option or Common Stock) in the Company or any subsidiary. In addition, the Optionee must notify
the Company’s Singapore subsidiary when he/she sells shares of Common Stock or shares of any
subsidiary (including when the Optionee sells Common Stock acquired at exercise of the Option).
These notifications must be made within two days of acquiring or disposing of any interest in the
Company or any subsidiary. In addition, a notification of the Optionee’s interests in the Company
or any subsidiary must be made within two days of becoming a director.

Insider Trading Notification. The Optionee should be aware of the Singapore insider
trading rules, which may impact the acquisition or disposal of shares or rights to shares of Common
Stock under the Plan. Under the Singapore insider trading rules, the Optionee is
prohibited from selling shares of Common Stock when he or she is in possession of information which
is not generally available and which
he or she know or should know will have a material effect on the price of Common Stock once such
information is generally available.

South Africa

Withholding Taxes. By accepting the Option, the Optionee agrees to notify the Company and his/her
Employer of the amount of any gain realized upon exercise of the Option. If the Optionee fails to
advise the Company and his/her Employer of the gain realized upon exercise of the Option, the
Optionee may be liable for a fine. The Optionee will be responsible for paying any difference
between the actual tax liability and the amount withheld.

Spain

Nature of Grant. This provision supplements Section 9 of the agreement:

By accepting the Option, the Optionee consents to participation in the Plan and acknowledges that
he/she has received a copy of the Plan.

The Optionee understands that the Company has unilaterally, gratuitously, and in its sole
discretion decided to grant Options under the Plan to individuals who may be employees of the
Company or its subsidiaries throughout the world. The decision is a limited decision that is
entered into upon the express assumption and condition that any grant will not bind the Company or
any subsidiary, other than to the extent set forth in the agreement. Consequently, the Optionee
understands that the Option is offered on the assumption and condition that the Option and any
Common Stock acquired under the Plan are not part of any employment contract (either with the
Company or any subsidiary), and shall not be considered

14

 

a mandatory benefit, salary for any
purposes (including severance compensation), or any other right whatsoever. In addition, the
Optionee understands that this offer would not be made but for the assumptions and conditions
referred to above; thus, the Optionee acknowledges and freely accepts that, should any or all of
the assumptions be mistaken or should any of the conditions not be met for any reason, then any
grant of or right to the Option shall be null and void.

Further, the vesting of the Options is expressly conditioned on the Optionee’s continued and active
rendering of service such that if the Optionee’s employment terminates for any reason whatsoever,
the Optionee’s Options may cease vesting immediately, in whole or in part, effective the date of
the Optionee’s termination of employment (unless otherwise specifically provided in Section 5 of
the agreement). This will be the case, for example, even if (1) the Optionee is considered to be
unfairly dismissed without good cause; (2) the Optionee is dismissed for disciplinary or objective
reasons or due to a collective dismissal; (3) the Optionee terminates service due to a change of
work location, duties or any other employment or contractual condition; (4) the Optionee terminates
service due to the Company’s or any of its subsidiaries’ unilateral breach of contract; or (5) the
Optionee’s employment terminates for any other reason whatsoever. Consequently, upon termination
of the Optionee’s employment for any of the above reasons, the Optionee may automatically lose any
rights to Options granted to him/her that were unvested or exercised on the date of the Optionee’s
termination of employment, as described in the Plan.

The Optionee acknowledges that he/she has read and specifically accepts the conditions referred to
in Section 7(b)(7) of the Plan and Section 5 of the agreement.

Securities Law Information. The Option and the Common Stock described in the agreement and this
Addendum do not qualify under Spanish regulations as securities. No “offer of securities to the
public,” as defined under Spanish law, has taken place or will take place in the Spanish territory.
The agreement (including this Addendum) has not been nor will it be registered with the Comisión
Nacional del Mercado de Valores, and does not constitute a public offering prospectus.

Sweden

There are no country-specific provisions.

Switzerland

Securities Law Information. The grant is considered a private offering in Switzerland and is
therefore not subject to registration in Switzerland.

Taiwan

There are no country-specific provisions.

Thailand

There are no country-specific provisions.

Turkey

There are no country-specific provisions.

15

 

United Kingdom

Responsibility for Taxes. This provision supplements Section 8 of the agreement:

The Optionee agrees that, if he/she does not pay or the Employer or the Company does not withhold
from him or her the full amount of Tax-Related Items that he/she owes at exercise of the Option, or
the release or assignment of the Option for consideration, or the receipt of any other benefit in
connection with the Option (the “Taxable Event”) within 90 days after the Taxable Event, or such
other period specified in Section 222(1)(c) of the U.K. Income Tax (Earnings and Pensions) Act
2003, then the amount of income tax that should have been withheld shall constitute a loan owed by
the Optionee to the Employer, effective 90 days after the Taxable Event. The Optionee agrees that
the loan will bear interest at Her Majesty’s Revenue & Customs’ (“HMRC”) official rate and will be
immediately due and repayable by the Optionee, and the Company and/or the Employer may recover it
at any time thereafter by withholding the funds from salary, bonus or any other funds due to the
Optionee by the Employer, by withholding in shares of Common Stock issued upon exercise of the
Option or from the cash proceeds from the sale of Common Stock or by demanding cash or a cheque
from the Optionee. The Optionee also authorizes the Company to delay the issuance of any shares of
Common Stock unless and until the loan is repaid in full.

Notwithstanding the foregoing, if the Optionee is an officer or executive director (as within the
meaning of Section 13(k) of the U.S. Securities and Exchange Act of 1934, as amended), the terms of
the immediately foregoing provision will not apply. In the event that the Optionee is an officer
or executive director and income tax that is due is not collected from or paid by the Optionee
within 90 days of the Taxable Event, the amount of any uncollected income tax may constitute a
benefit to the Optionee on which additional income tax and national insurance contributions may be
payable. The Optionee will be responsible for reporting and paying any income tax and national
insurance contributions due on this additional benefit directly to the HMRC under the
self-assessment regime. The Optionee acknowledges that the Company or the Employer may recover any
such additional income tax and national insurance contributions at any time thereafter by any of
the means referred to in Section 8 of the agreement.

16exv10w3

Exhibit 10.3

Zimmer Holdings, Inc.

2009 STOCK INCENTIVE PLAN

PERFORMANCE-BASED RESTRICTED STOCK UNIT AWARD

GRANTED TO

AWARD RECIPIENT:

TARGET NUMBER OF RESTRICTED STOCK UNITS:

MAXIMUM NUMBER OF RESTRICTED STOCK UNITS:

AWARD DATE:

 

ZIMMER HOLDINGS, INC.

2009 STOCK INCENTIVE PLAN

PERFORMANCE-BASED

RESTRICTED STOCK UNIT AWARD

     1. RSU AWARD 

     Under the terms of the Zimmer Holdings, Inc. 2009 Stock Incentive Plan (the “Plan”), the
Compensation and Management Development Committee of the Board of Directors of Zimmer Holdings,
Inc. (the “Committee”) has granted to the Award Recipient on the Award Date an award of
performance-based restricted stock units (“RSUs”) over Zimmer Holdings, Inc. Common Stock, par
value $0.01 per share (“Common Stock”), as designated herein subject to the terms, conditions,
and restrictions set forth in this agreement (this “RSU Award”). The purposes of this RSU Award
are to motivate and retain the Award Recipient as an employee of Zimmer Holdings, Inc. (the
“Company”) or a subsidiary of the Company, to encourage the Award Recipient to continue to give
best efforts for the Company’s future success, and to further the opportunity for stock
ownership by the Award Recipient in order to increase the Award Recipient’s proprietary interest
in the Company. Each RSU represents an unfunded, unsecured promise by the Company to deliver
one share of Common Stock, subject to certain performance-based and time-based vesting
requirements and the other restrictions, terms and conditions contained in this agreement.
Except as may be required by law, the Award Recipient is not required to make any payment (other
than payments for taxes pursuant to Section 7 hereof) or provide any consideration other than
the rendering of future services to the Company or a subsidiary of the Company.

     2. GENERAL

     (a) No RSUs shall be earned unless and until the Committee shall have determined the
extent to which the performance criteria set forth in Annex A hereto have been met with respect to
the Performance Period.

     (b) The grant of RSUs does not entitle the Award Recipient to any rights of a holder of Common
Stock, including dividends or voting rights. The rights of the Award Recipient with respect to an
RSU shall remain forfeitable at all times prior to the lapse of the Restriction Period for that
RSU.

     (c) Neither the RSUs nor any interest therein may be sold, assigned, transferred, pledged,
hypothecated or otherwise disposed of, except by will or the laws of descent and distribution, and
any such purported sale, assignment, transfer, pledge, hypothecation or other disposition
shall be void and unenforceable against the Company.

 

 

     3. PERFORMANCE AND TIME-BASED VESTING 

     Except as otherwise provided in this Section 3 and Section 4 below, an RSU granted in this RSU
Award shall be subject to the restrictions and conditions set forth herein during the period from
the Award Date until such RSU becomes vested and nonforfeitable (the “Restriction
Period”).

     (a) As soon as practicable following the availability of audited results of the Company for
fiscal year 20__ (the “Performance Period”), the Committee shall determine
whether and the extent to which the performance criteria in Annex A have been satisfied and the
number of RSUs earned (the “Earned RSUs”). The date on which the Committee makes its determination
is hereinafter referred to as the “Determination Date”.

     (b) Except as otherwise set forth in Section 4 below, one third of the Earned RSUs granted in
this RSU Award shall become vested and nonforfeitable on the second anniversary of the Award Date
provided the Award Recipient has been continuously employed by the Company or a subsidiary of the
Company since the Award Date; an additional third of the Earned RSUs granted in this RSU Award
shall become vested and nonforfeitable on the third anniversary of the Award Date provided the
Award Recipient has been continuously employed by the Company or a subsidiary of the Company since
the Award Date; and the final third of the Earned RSUs granted in this RSU Award shall become
vested and nonforfeitable on the fourth anniversary of the Award Date provided the Award Recipient
has been continuously employed by the Company or a subsidiary of the Company since the Award Date.

     4. RESTRICTIONS AND FORFEITURES

     (a) Except as set forth below, if the Award Recipient terminates employment with the Company
or a subsidiary for any reason other than retirement or death before all of the Earned RSUs have
become vested, the Earned RSUs that are not already vested as of the termination date shall be
forfeited. If after the Award Recipient has been continuously employed for one year or more from
the Award Date, the Award Recipient terminates employment with the Company or a subsidiary on
account of retirement or death, the restrictions with respect to all unvested Earned RSUs granted
in this RSU Award shall be waived and the Earned RSUs will be deemed fully vested. In the event of
the termination of an Award Recipient’s employment by the Company, other than for cause, retirement
or death, after the Award Recipient has been continuously employed for one year or more from the
Award Date, a pro rata portion of the Earned RSUs granted in this RSU Award shall be deemed vested
as shown in Annex B to this agreement. Such pro rata portion shall include the portion, if any, of
this RSU Award already vested under the terms of this agreement. “Retirement” shall mean the Award
Recipient’s termination of employment with the Company or a subsidiary on or after (i) the Award
Recipient’s 65th birthday, (ii) the Award Recipient’s 55th birthday after having completed ten
years of service with the Company or any of its subsidiaries, or (iii) the date the sum of the
Award Recipient’s attained age (expressed as a whole number) plus completed years of service
(expressed as a whole number) plus one (1) equals at least 70 and the Award Recipient has completed
ten years of service with the Company or any of its subsidiaries and the Award Recipient’s
employment terminates for any reason other than death, resignation, willful misconduct, or activity
deemed detrimental to the interest of the Company and, where applicable, the Award Recipient has
executed a general release and/or a covenant not to compete and/or not to solicit as required by
the Company. “Cause” shall mean termination by the Company of the Award Recipient’s employment
upon the willful and continued failure by the Award Recipient to substantially perform the Award
Recipient’s duties with the Company (other than any such a failure resulting from the Award
Recipient’s incapacity due to physical or mental illness) for a period of at least 30 days after a
written demand for substantial performance is delivered to the Award Recipient, which demand
specifically identifies the manner in which the Award Recipient has not substantially performed the
Award Recipient’s duties, or the willful engaging by the Award Recipient in conduct which is
demonstrably and materially injurious to the Company or its subsidiaries, monetarily or otherwise.
No act, or failure to act, on the Award Recipient’s part shall be deemed willful unless done, or
omitted to be done, by the Award Recipient not in good faith and without reasonable belief that the
Award Recipient’s act, or failure to act, was in the best interest of the Company. Except as
provided in Section 14, in the event of special circumstances as determined by the Committee, the
Committee may, in its sole discretion where it finds that a waiver would be in the best interests
of the Company, waive any time-based restrictions then remaining with respect to all or part of the
Earned RSUs and accelerate the vesting with regard to the Earned RSUs. For the purposes of this
RSU Award, service with Bristol-Myers Squibb Company and its subsidiaries and affiliates
(collectively, “Bristol-Myers Squibb”) before the effective date of the Plan shall be included as
service with the Company; provided that the Award Recipient was employed by Bristol-Myers Squibb on
August 5, 2001 and has been continuously employed by the Company or a subsidiary of the Company
since August 6, 2001.

     (b) In the event that the Award Recipient fails promptly to pay or make satisfactory
arrangements as to the Withholding Tax Obligation as provided in Section 7, all unvested Earned
RSUs shall be forfeited by the Award Recipient.

     (c) (i) A transfer of an Award Recipient’s employment from the Company to a
subsidiary, or vice versa, or from one subsidiary to another, (ii) a leave of absence, duly
authorized in writing by the Company, for military service or sickness or
for any other purpose approved by the Company if the period of such leave does not exceed
ninety (90) days, and (iii) a leave of

2

 

absence in excess of ninety (90) days, duly authorized in
writing, by the Company, provided the Award Recipient’s right to reemployment is
guaranteed either by a statute or by contract, shall not be deemed a termination of employment.
However, failure of the Award Recipient to return to the employ of the Company at the end of an
approved leave of absence shall be deemed a termination. During a leave of absence as defined in
(ii) or (iii), the Award Recipient will be considered to have been continuously employed by the
Company.

     (d) The Award Recipient may, at any time prior to the expiration of the Performance Period or
the Restriction Period, waive all rights with respect to earning all or some of the RSUs covered by
this RSU Award by delivering to the Company a written notice of such waiver.

     5. ISSUANCE OF SHARES

     The stock certificate(s), if any, evidencing the shares issued upon vesting of Earned RSUs
shall be registered on the Company’s books in the name of the Award Recipient within 60
days after the lapse of the Restriction Period for those Earned RSUs.

     The Company shall not be required to issue or deliver any certificate or certificates for
            shares of its Common Stock upon the end of the Restriction Period prior to (i) the admission of
such shares to listing on any stock exchange on which the stock may then be listed, (ii) the
completion of any registration or other qualification of such shares under any state or federal
law or rulings or regulations of any governmental regulatory body, or (iii) the obtaining of any
consent or approval or other clearance from any governmental agency, which the Company shall, in
its sole discretion, determine to be necessary or advisable.

     6. DEATH OF AWARD RECIPIENT

     In the event of the Award Recipient’s death prior to the delivery of shares issuable
pursuant to vested Earned RSUs, such shares shall be delivered to the Award Recipient’s
estate, upon presentation to the Committee of letters testamentary or other documentation
satisfactory to the Committee.

     7. TAXES 

     At such time as the Company is required to withhold taxes with respect to this RSU Award, or
at an earlier date as determined by the Company, the Award Recipient shall make remittance to the
Company of an amount sufficient to cover the Company’s withholding obligation, if any,
with respect to federal, state or local income or FICA or earnings tax or any other applicable tax
assessment (plus interest or penalties thereon, if any, caused by a delay in making such payment)
incurred with respect to this RSU Award (the “Withholding Tax Obligation”). The
Company and its subsidiaries shall, to the extent permitted by law, have the right to deduct such
Withholding Tax Obligation from any payment or distribution of any kind otherwise payable or
distributable to the Award Recipient, including Common Stock subject to this RSU Award; provided,
in the case of Common Stock, that the market value of the shares withheld may not exceed the
Company’s minimum required Withholding Tax Obligation with respect to this RSU Award.

     8. CHANGE IN CONTROL 

     Under certain circumstances, if the Award Recipient’s employment with the Company or one of
its subsidiaries terminates during the three year period following a change in control of the
Company, this RSU Award may be deemed vested. Please refer to the Plan for more information.

     9. CHANGES IN CAPITALIZATION 

     If prior to the expiration of the Restriction Period changes occur in the outstanding Common
Stock by reason of stock dividends, recapitalization, mergers, consolidations, stock splits,
combinations or exchanges of shares and the like, the number and class of shares subject to this
RSU Award shall be appropriately adjusted by the Committee, whose determination shall be
conclusive. If as a result of any adjustment under this paragraph any Award Recipient should
become entitled to a fractional share of stock, the Award Recipient shall have the right only to
the adjusted number of full shares and no payment or other adjustment will be made with respect to
the fractional share so disregarded.

     10. NOTICE 

     Until the Award Recipient is advised otherwise by the Committee, all notices and other
correspondence with respect to this RSU Award will be effective upon receipt at the following
address:

3

 

Compensation and Management Development Committee of the Board of Directors of Zimmer Holdings, Inc.

Zimmer Holdings, Inc.

345 East Main Street

Post Office Box 708

Warsaw, Indiana 46581-0708

     11. NO ADDITIONAL RIGHTS

     Except as explicitly provided in this agreement, this agreement will not confer any rights
upon the Award Recipient, including any right with respect to continuation of employment by the
Company or any of its subsidiaries or any right to future awards under the Plan. In no event shall
the value, at any time, of this agreement, the Common Stock covered by this agreement or any other
benefit provided under this agreement be included as compensation or earnings for purposes of any
other compensation, retirement, or benefit plan offered to employees of the Company or its
subsidiaries unless otherwise specifically provided for in such plan.

     12. BREACH OF RESTRICTIVE COVENANTS 

     As a condition of receiving this RSU Award, the Award Recipient has entered into a
non-disclosure, non-solicitation and/or non-competition agreement with the Company. The Company
may, at its discretion, require execution of a restated non-disclosure, non-solicitation and/or
non-competition agreement as a condition of receiving the RSU Award. Should the Award Recipient
decline to sign such a restated agreement as required by the Company and, therefore, forego
receiving the RSU Award, the Award Recipient’s most recently signed non-disclosure,
non-solicitation and/or non-competition agreement shall remain in full force and effect. The Award
Recipient understands and agrees that if he or she violates any provision of any such agreement
that remains in effect at the time of the violation, the Committee may require the Award Recipient
to forfeit his or her right to any unvested portion of the RSU Award and, to the extent that any
portion of the RSU Award has previously vested, the Committee may require the Award Recipient to
return to the Company the shares covered by the RSU Award or any cash proceeds received by the
Award Recipient upon the sale of such shares.

     13. CONSENT TO ELECTRONIC DELIVERY 

     The Company may, in its sole discretion, decide to deliver any documents related to current or
future participation in the Plan by electronic means. The Award Recipient hereby consents to
receive such documents by electronic delivery and agrees to participate in the Plan through an
on-line or electronic system established and maintained by the Company or a third party designated
by the Company.

     14.  CODE SECTION 409A COMPLIANCE 

     To the extent applicable, it is intended that the Plan and this agreement comply with the
requirements of Section 409A of the U.S. Internal Revenue Code of 1986, as amended (the “Code”),
and any related regulations or other guidance promulgated with respect to such Section by the U.S.
Department of the Treasury or the Internal Revenue Service. The RSUs granted in this RSU Award are
intended to be short-term deferrals exempt from Code Section 409A, but in the event that any
portion of this RSU Award constitutes deferred compensation within the meaning of Code Section
409A, then the issuance of Common Stock covered by an RSU award shall conform to the Code Section
409A standards, including, without limitation, the requirement that no payment on account of
separation from service will be made to any specified employee (within the meaning of Code Section
409A) until six months after the separation from service occurs, and the prohibition against
acceleration of vesting, which means that the Committee does not have the authority under Section
4(a) to waive the restrictions and accelerate vesting of this RSU Award in the event that any
portion of it constitutes deferred compensation within the meaning of Code Section 409A. Any
provision of the Plan or this agreement that would cause this RSU Award to fail to satisfy any
applicable requirement of Code Section 409A shall have no force or effect until amended to comply
with Code Section 409A, which amendment may be retroactive to the extent permitted by Code Section
409A.

     15. CONSTRUCTION AND INTERPRETATION 

     The Board of Directors of the Company (the “Board”) and the Committee shall
have full authority and discretion, subject only to the express terms of the Plan, to decide all
matters relating to the administration and interpretation of the Plan and this agreement and all
such Board and Committee determinations shall be final, conclusive, and binding upon the Award
Recipient and all interested parties. The terms and conditions set forth in this agreement are
subject in all respects to the terms and conditions of the Plan, as amended from time to time,
which shall be controlling. This agreement contains the entire understanding of the parties and
may not be modified or amended except in writing duly signed by the parties. The waiver of, or
failure to enforce, any provision of this agreement or the Plan by the Company will not constitute
a waiver by the Company of

4

 

the same provision or right at any other time or a waiver of any other
provision or right. The various provisions of this agreement are severable and any determination
of invalidity or unenforceability of any provision shall have no effect on the remaining
provisions. This agreement will be binding upon and inure to the benefit of the successors,
assigns, and heirs of the respective parties. The validity and construction of this agreement
shall be governed by the laws of the State of Indiana.

     16. SEVERABILITY 

     In the event any provision of this agreement shall be held illegal or invalid for any reason,
the illegality or invalidity shall not affect the remaining provisions of this agreement, and this
agreement shall be construed and enforced as if such illegal or invalid provision had not been
included.

	 	 	 	 	 	 	 

	 	 	ZIMMER HOLDINGS, INC.
	 
	 	 	 	 	 	 
	 

	 	By
	 	
 
 Chad
F. Phipps	 	 
	 

	 	 	 	Senior Vice President,	 	 
	 

	 	 	 	General Counsel & Secretary	 	 

5

 

ANNEX A

PERFORMANCE CRITERIA

     The number of RSUs that may be earned with respect to the RSU Award shall be determined based
upon the Company’s adjusted earnings per share for the Performance Period. The number of Earned
RSUs expressed as a percentage of the maximum number of RSUs shall be determined by reference to
the following payout matrix:

	 	 	 	 	 	 	 	 	 	 
	Actual Performance as a Percentage of	 	Adjusted Earnings Per Share**	 	 
	Targeted Performance *	 	for the Performance Period	 	Percentage of Maximum Award Earned*
	Less than 85
	%	 	Less than $	 	None	 
	Minimum 85
	%	 	 	$	 	 	 	33.33%	 
	Target 100
	%	 	 	$	 	 	 	66.67%	 
	Maximum 115
	%	 	 	$	 	 	 	100.00%	 

 

			
	*	 	Linear interpolations between specified percentages.
	 
	**	 	Adjusted earnings per share means earnings per diluted share adjusted to exclude the effects
of certain items or events that impact reported results during the Performance Period, as
approved by the Committee in accordance with Section 6 of the Plan.

6

 

ANNEX B

	 	 	 
	Months Completed After Award Date	 	Percent of Earned RSUs Vested
	12
	 	0.000%
	13
	 	2.778%
	14
	 	5.556%
	15
	 	8.333%
	16
	 	11.111%
	17
	 	13.889%
	18
	 	16.667%
	19
	 	19.444%
	20
	 	22.222%
	21
	 	25.000%
	22
	 	27.778%
	23
	 	30.556%
	24
	 	33.333%
	25
	 	36.111%
	26
	 	38.889%
	27
	 	41.667%
	28
	 	44.444%
	29
	 	47.222%
	30
	 	50.000%
	31
	 	52.778%
	32
	 	55.556%
	33
	 	58.333%
	34
	 	61.111%
	35
	 	63.889%
	36
	 	66.667%
	37
	 	69.444%
	38
	 	72.222%
	39
	 	75.000%
	40
	 	77.778%
	41
	 	80.556%
	42
	 	83.333%
	43
	 	86.111%
	44
	 	88.889%
	45
	 	91.667%
	46
	 	94.444%
	47
	 	97.222%
	48
	 	100.000%

7

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