Document:

EX-10.9

Exhibit 10.9

WRIGHT MEDICAL GROUP, INC.

Phantom Stock Unit Grant Agreement

(Non-US Grantees)

	 	 	 	 	 
	Award Granted to (“Grantee”):
	 	Grant Date:
	 	Number of Units (“Units”):

          THIS PHANTOM STOCK UNIT GRANT AGREEMENT (the “Agreement”) including any country-specific
appendix hereto, is made as of the Grant Date by and between Wright Medical Group, Inc., a Delaware
corporation with its principal place of business at 5677 Airline Road, Arlington, Tennessee 38002
(the “Company”) and Grantee pursuant to the Wright Medical Group, Inc. 1999 Equity Incentive Plan,
as amended from time to time (the “Plan”) and which is hereby incorporated by reference.

          WHEREAS, Grantee is associated with the Company or its affiliate as an employee; and

          WHEREAS, the Compensation Committee of the Company’s Board of Directors (the “Committee”) has
authorized that Grantee be granted Phantom Stock Units (“Units”) that upon vesting will be
converted to shares of the Company’s Common Stock (“Stock”) subject to the restrictions stated
below;

          NOW, THEREFORE, the parties agree as follows:

	1.	 	Grant of Units. Subject to the terms and conditions of this Agreement and the Plan, the
Company hereby grants Units to Grantee.
	 
	2.	 	Vesting Schedule. The Units shall vest as to one-fourth (1/4) of the Units on the first
anniversary of the <grant date>, and as to an additional one-fourth (1/4) on each
succeeding anniversary thereof. Provided, however, that Grantee’s ability to vest in any
Units is specifically conditioned upon Grantee’s continued active service in any capacity for
the Company or any controlled group member of the Company (within the contemplation of U.S.
Internal Revenue Code section 414(b) or (c)) until the vesting event. Notwithstanding the
foregoing conditional annual vesting schedule, the interest of Grantee in the Units shall vest
as to:

	 	2.1.	 	100% of the then unvested Units upon a Change of Control. For purposes of this
Agreement, a “Change of Control” shall mean the first to occur on or after the Grant Date
of any of the following:
	 
	 		 	(a) The acquisition by any individual, entity or group (within the meaning of Section
13(d)(3) or 14(d)(2) of the U.S. Securities Exchange Act of 1934, as amended (the
“Exchange Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 50% or more (on a fully diluted basis) of either
(A) the then outstanding shares of Stock, taking into account as outstanding for this
purpose such Stock issuable upon the exercise of options or warrants, the conversion of
convertible stock or debt, and the exercise of any similar right to acquire such Stock
(the “Outstanding Company Common Stock”) or (B) the combined voting power of the then
outstanding voting securities of the Company entitled to vote generally in the election
of directors (the “Outstanding Company Voting Securities”); provided, however, that for
purposes of this subsection (a), the following acquisitions shall not constitute a
Change of Control: (x) any acquisition by the Company or any “affiliate” of the
Company, within the meaning of 17 U.S. C.F.R. § 230.405 (an “Affiliate”), (y) any
acquisition by any employee benefit plan (or related trust) sponsored or maintained by
the Company or any Affiliate, (z) any acquisition by any corporation or business entity
pursuant to a transaction which complies with clauses (A) and (B) of subsection (a) of
this Section 2.1 (persons and entities described in clauses (x), (y), and (z) being
referred to herein as “Permitted Holders”);

 

	 		 	(b) The consummation of a reorganization, merger or consolidation or sale or other
disposition of all or substantially all of the assets of the Company (a “Business
Combination”), in each case, unless, following such Business Combination, (A) all or
substantially all of the individuals and entities who were the beneficial owners,
respectively, of the Outstanding Company Common Stock and Outstanding Company Voting
Securities immediately prior to such Business Combination beneficially own, directly or
indirectly, more than 60% of, respectively, the then outstanding shares of common stock
and the combined voting power of the then outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the corporation resulting
from such Business Combination (including, without limitation, a corporation which as a
result of such transaction owns the Company or all or substantially all of the Company’s
assets either directly or through one or more subsidiaries) in substantially the same
proportions as their ownership, immediately prior to such Business Combination, of the
Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case
may be, (B) no Person (excluding any Permitted Holder) beneficially owns, directly or
indirectly, 50% or more (on a fully diluted basis) of, respectively, the then
outstanding shares of common stock of the corporation resulting from such Business
Combination, taking into account as outstanding for this purpose such common stock
issuable upon the exercise of options or warrants, the conversion of convertible stock
or debt, and the exercise of any similar right to acquire such common stock, or the
combined voting power of the then outstanding voting securities of such corporation
except to the extent that such ownership existed prior to the Business Combination, and
(C) at least a majority of the members of the board of directors of the corporation
resulting from such Business Combination were members of the incumbent Board at the time
of the execution of the initial agreement providing for such Business Combination;
	 
	 		 	(c) The approval by the stockholders of the Company of a complete liquidation or
dissolution of the Company;
	 
	 		 	(d) The sale of at least 80% of the assets of the Company to an unrelated party, or
completion of a transaction having a similar effect; or
	 
	 		 	(e) The individuals who on the date of this Agreement constitute the Company’s Board of
Directors thereafter cease to constitute at least a majority thereof; provided that any
person becoming a member of the Board of Directors subsequent to the date of this
Agreement and whose election or nomination was approved by a vote of at least two-thirds
of the directors who then comprised the Board of Directors immediately prior to such
vote shall be considered a member of the Board of Directors on the date of this
Agreement.

	 	2.2.	 	100% of the unvested Units upon Grantee’s death.

	3.	 	Conversion into Stock.

	 	3.1	 	Subject to Sections 3.6 and 4 below, shares of Stock will be issued and become free of
restrictions as soon as practicable following vesting of the Units, provided that Grantee
has satisfied all Tax-Related Items as defined in Section 5 of this Agreement and Grantee
has completed, signed and returned any documents and taken any additional action that the
Company deems appropriate to enable it to accomplish the delivery of the shares of Stock.
In no event shall the Company issue the shares of Stock later than March 15 of the calendar
year which begins after the calendar year in which the vesting event occurs, unless Grantee
fails to satisfy the foregoing conditions for delivery not fewer than seven (7) days before
such date, in which event all such shares of Stock shall be forfeited.
	 
	 	3.2	 	The shares of Stock will be issued (i) in the event of Grantee’s death, in the name of
Grantee’s estate, (ii) a legally designated guardian or representative if Grantee is
legally incompetent, or (iii) otherwise, to Grantee, and may be effected by recording
shares on the stock records of the

 

	 	 	 	Company or by crediting shares in an account established on Grantee’s behalf with a
brokerage firm or other custodian, in each case determined by the Company in its
discretion.

	 	3.3	 	Each Unit will be converted into one (1) share of Stock.
	 
	 	3.4	 	In no event shall the Company be obligated to issue fractional shares.
	 
	 	3.5	 	In no event shall the Company settle the conversion of Units with cash, nor shall any
dividend equivalents or interest thereon be credited with respect to the Units.
	 
	 	3.6	 	Not withstanding the foregoing,
	 
	 		 	(a) the Company shall not be obligated to deliver any shares of Stock during any period
the Company determines that the conversion of a Unit or the delivery of shares hereunder
would violate any laws of the United States or Grantee’s country of residence or employment
and/or may issue shares subject to any restrictive legends that, as determined by the
Company’s counsel, is necessary to comply with securities or other regulatory requirements,
and
	 
	 		 	(b) the date on which the shares are issued may include a delay in order to provide the
Company such time as it determines appropriate to address Tax-Related Items and other
administrative matters.
	 
	 	3.7	 	Grantee will have rights of a stockholder of Stock only after the shares of Stock have
been issued to Grantee following vesting of his Units and satisfaction of all other
conditions to the issuance of those shares as set forth in the Agreement. Units shall not
entitle Grantee to any rights of a stockholder of Stock and there are no voting or dividend
rights with respect to the Units. Units shall remain terminable pursuant to this Agreement
at all times until they vest and convert to shares of Stock. Notwithstanding the
foregoing, in the event of a stock dividend, stock split, or other change in the Stock, the
number of shares of Stock that each unvested Unit is convertible into shall be
proportionately increased or decreased, as the case may be.

	4.	 	Restrictions.

	 	4.1.	 	The Units granted hereunder may not be sold, pledged or otherwise transferred in any
way whether by operation of law or otherwise, and may not be subject to execution,
attachment or similar process. Any attempt to sell, pledge or otherwise transfer the Units
other than as permitted above, shall be void and unenforceable.
	 
	 	4.2.	 	Units that have not yet vested at the time Grantee ceases providing substantial active
services in any capacity for the Company or any such controlled group member, as described
in U.S. Internal Revenue Code Section 414(b) or (c), shall be forfeited by Grantee.
	 
	 	4.3.	 	By accepting the Units, Grantee represents and agrees for himself and his transferees
(whether by will or the laws of descent and distribution) that:
	 
	 		 	(a) For the period commencing on the Grant Date and ending on the first anniversary of
the termination of Grantee’s active employment (such period is hereinafter referred to
as the “Covenant Period”), with respect to any Country in which the Company is engaged
in business during Grantee’s employment with the Company, Grantee shall not participate
or engage, directly or indirectly, for himself or on behalf of or in conjunction with
any person, partnership, corporation or other entity, whether as an employee, agent,
officer, director, stockholder, partner, joint venturer, investor or otherwise, in any
business activities if such activity consists of any activity undertaken or expressly
planned to be undertaken by the Company or any of its subsidiaries or by Grantee at any
time during Grantee’s employment.
	 
	 		 	(b) Except with the Company’s prior written approval or as may otherwise be required by
law or legal process, Grantee shall not disclose any material or information which is
confidential to the Company or its subsidiaries and not in the public domain or
generally

 

	 	 	 	known in the industry, whether tangible or intangible, made available, disclosed or
otherwise known to Grantee as a result of his employment with the Company.

	 		 	(c) During the Covenant Period, Grantee shall not attempt to influence, persuade or
induce, or assist any other person in so persuading or inducing, any employee of the
Company or its subsidiaries to give up, or to not commence, employment or a business
relationship with the Company.

	 	4.4.	 	The Company shall have the right, but not the obligation, to purchase and acquire from
Grantee any or all of the Stock (the “Repurchased Stock”) received pursuant to any vested
Units if the Committee reasonably determines that Grantee has violated the covenants set
forth in this Agreement or Grantee’s active employment is terminated or could have been
terminated for Cause (as defined in the Plan). The Company may exercise the right granted
to it under this Section 4.4 by delivering written notice to Grantee stating that the
Company is exercising the repurchase right granted to it under this Section 4.4. The
delivery of such notice by the Company to Grantee shall constitute a binding commitment of
the Company to purchase and acquire all of the Repurchased Stock. The total purchase price
for the Repurchased Stock shall be delivered to the Grantee against delivery by Grantee of
certificates evidencing the Repurchased Stock no later than 30 days after the delivery of
the election notice by the Company. The price per share of the Repurchased Stock shall be
the lesser of (1) the Fair Market Value (as defined in the Plan) of the Repurchased Stock
on the date of the Company’s delivery of its written notice to Grantee or (2) the Fair
Market Value of the Repurchased Stock on the date that the Units related to the Repurchased
Stock vested to the Grantee.

	 	4.5.	 	The Company shall have the right, but not the obligation, to cancel any or all of the
unvested Units if the Committee reasonably determines that Grantee has violated the
covenants set forth in this Agreement. The Company may exercise the right granted to it
under this Section 4.5 by delivering a written notice to Grantee stating that the Company
is exercising the cancellation right granted to it under this Section 4.5.

	 	4.6.	 	The parties intend the restrictions in Section 4.3, 4.4 or 4.5 to be completely
severable and independent, and any invalidity or unenforceability of any one or more such
restrictions shall not render invalid or unenforceable any one or more restrictions.

	5.	 	Responsibility for Taxes. Regardless of any action the Company or Grantee’s employer (the
“Employer”) takes with respect to any or all income tax, social insurance, payroll tax,
payment on account or other tax-related items related to Grantee’s participation in the Plan
and legally applicable to Grantee or deemed by the Company or the Employer to be an
appropriate charge to Grantee even if technically due by the Company or the Employer
(“Tax-Related Items”), Grantee acknowledges that the ultimate liability for all Tax-Related
Items is and remains Grantee’s responsibility and may exceed the amount actually withheld by
the Company or the Employer. Grantee 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 Units, including, but not limited to,
the grant, vesting or conversion of the Units, the issuance of shares of Stock upon conversion
of the Units, the subsequent sale of shares of Stock issued or to be issued upon conversion of
the Units 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 Units to reduce or
eliminate Grantee’s liability for Tax-Related Items or achieve any particular tax result.
Further, if Grantee has become subject to tax in more than one jurisdiction between the Grant
Date and the date of any relevant taxable event, Grantee acknowledges that the Company and/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 any relevant taxable or tax withholding event, as applicable, Grantee will pay or make
adequate arrangements satisfactory to the Company and/or the Employer to satisfy all Tax-Related

 

	 	 	Items. In this regard, Grantee 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 by
one or a combination of the following:

	 		 	(a) withholding from Grantee’s wages or other cash compensation paid to Grantee by the
Company and/or the Employer; or
	 
	 		 	(b) selling and withholding from proceeds of the sale such number of shares of Stock to
be issued to Grantee upon conversion of the Units necessary to satisfy the obligations
with regard to all Tax-Related Items and any broker’s commission related to the sale,
either through a voluntary sale or through a mandatory sale arranged by the Company (on
Grantee’s behalf pursuant to this authorization); or
	 
	 		 	(c) withholding of shares of Stock to be issued to Grantee upon conversion of the Units.

	 	 	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. If the obligation for Tax-Related Items is satisfied by withholding in
shares of Stock, for tax purposes, Grantee is deemed to have been issued the full number of
shares of Stock subject to the vested Units, notwithstanding that a number of the shares of
Stock are held back solely for the purpose of paying the Tax-Related Items due as a result of
any aspect of Grantee’s participation in the Plan.
	 
	 	 	Grantee 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 Grantee’s
participation in the Plan that cannot be satisfied by the means previously described. The
Company may refuse to issue or deliver the shares of Stock or the proceeds of the sale of shares
of Stock, if Grantee fails to comply with his or her obligations in connection with the
Tax-Related Items.
	 
	 	 	Finally, Grantee represents to the Company that, as of the date hereof, he or she is not aware
of any material nonpublic information about the Company or the shares of Stock. Grantee and the
Company have structured this Agreement to constitute a “binding contract” relating to the sale
of shares of Stock pursuant to this Section, consistent with the affirmative defense to
liability under Section 10(b) of the Exchange Act of 1934 under Rule 10b5-1(c) promulgated under
the Exchange Act.

	6.	 	Nature of Grant. In accepting the grant, Grantee acknowledges 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 Units is voluntary and occasional and does not create any
contractual or other right to receive future grants of Units, or benefits in lieu of
Units, even if Units have been granted repeatedly in the past;
	 
	 		 	(c) all decisions with respect to future grants of Units, if any, will be at the sole
discretion of the Company;
	 
	 		 	(d) Grantee’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
Grantee’s employment relationship at any time;
	 
	 		 	(e) Grantee is voluntarily participating in the Plan;

 

	 		 	(f) the Units and the shares of Stock subject to the Units are an extraordinary item
that does not constitute compensation of any kind for services of any kind rendered to
the Company or the Employer, and which is outside the scope of Grantee’s employment
contract, if any;
	 
	 		 	(g) the Units and the shares of Stock subject to the Units are not intended to replace
any pension rights or compensation;
	 
	 		 	(h) the Units and the shares of Stock subject to the Units 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, the Employer or any subsidiary
or affiliate of the Company;
	 
	 		 	(i) the grant of Units and Grantee’s participation in the Plan will not be interpreted
to form an employment contract or relationship with the Company or any subsidiary or
affiliate of the Company;
	 
	 		 	(j) the future value of the underlying shares of Stock is unknown and cannot be
predicted with certainty;
	 
	 		 	(k) in consideration of the grant of the Units, no claim or entitlement to compensation
or damages shall arise from forfeiture of the Units resulting from termination of
Grantee’s employment with the Company or the Employer (for any reason whatsoever and
whether or not in breach of local labor laws) or a violation of the covenants and
Grantee irrevocably releases the Company and the Employer from any such claim that may
arise; if, notwithstanding the foregoing, any such claim is found by a court of
competent jurisdiction to have arisen, Grantee shall be deemed irrevocably to have
waived his or her entitlement to pursue such claim;
	 
	 		 	(l) in the event of termination of Grantee’s employment (whether or not in breach of
local labor laws), Grantee’s right to vest in the Units under the Plan, if any, will
terminate effective as of the date that Grantee is no longer actively employed and will
not be extended by any notice period mandated under local law (e.g., active employment
would not include a period of “garden leave” or similar period pursuant to local law);
the Committee shall have the exclusive discretion to determine when Grantee is no longer
actively employed for purposes of the Units; and
	 
	 		 	(m) the Units and the benefits under the Plan, if any, will not automatically transfer
to another company in the case of a merger, take-over or transfer of liability.

	7.	 	No Advice Regarding Grant. The Company is not providing any tax, legal or financial advice,
nor is the Company making any recommendations regarding Grantee’s participation in the Plan,
or Grantee’s acquisition or sale of the underlying shares of Stock. Grantee is hereby advised
to consult with his or her own personal tax, legal and financial advisors regarding Grantee’s
participation in the Plan before taking any action related to the Plan.

	8.	 	Data Privacy. Grantee hereby explicitly and unambiguously consents to the collection, use
and transfer, in electronic or other form, of Grantee’s personal data as described in this
Agreement and any other Unit grant materials by and among, as applicable, the Employer, the
Company and its subsidiaries and affiliates for the exclusive purpose of implementing,
administering and managing Grantee’s participation in the Plan.

 

	 	 	Grantee understands that the Company and the Employer may hold certain personal information
about Grantee, including, but not limited to, Grantee’s name, home address and telephone number,
date of birth, social insurance number or other identification number, salary, nationality, job
title, any shares of stock or directorships held in the Company, details of all Units or any
other entitlement to shares of Stock awarded, canceled, exercised, vested, unvested or
outstanding in Grantee’s favor, for the exclusive purpose of implementing, administering and
managing the Plan (“Data”).
	 
	 	 	Grantee understands that Data may be transferred to a stock plan service provider as may be
selected by the Company in the future, which would assist the Company with the implementation,
administration and management of the Plan. Grantee 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 Grantee’s country.
Grantee understands that he or she may request a list with the names and addresses of any
potential recipients of the Data by contacting Grantee’s local human resources representative.
Grantee authorizes the Company 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 Grantee’s participation in the Plan. Grantee
understands that Data will be held only as long as is necessary to implement, administer and
manage Grantee’s participation in the Plan. Grantee understands that Grantee 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 Grantee’s local human resources representative. Grantee
understands, however, that refusing or withdrawing his or her consent may affect Grantee’s
ability to participate in the Plan. For more information on the consequences of Grantee’s
refusal to consent or withdrawal of consent, Grantee understands that Grantee may contact his or
her local human resources representative.

	9.	 	Governing Law. The grant of Units and the provisions of this Agreement are governed by, and
subject to, the laws of the State of Delaware, without regard to the conflict of law
provisions, as provided in the Plan.
	 
	 	 	For purposes of litigating any dispute that arises under this grant or the Agreement, the
parties hereby submit to and consent to the jurisdiction of the State of Tennessee, agree that
such litigation shall be conducted in the courts of Shelby County, Tennessee, or the federal
courts for the United States for the Western District of Tennessee, where this grant is made
and/or to be performed.
	 
	10.	 	Language. If Grantee has received this Agreement 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.
	 
	11.	 	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. Grantee
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.
	 
	12.	 	Severability. The provisions of this Agreement are severable and if any one or more
provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the
remaining provisions shall nevertheless be binding and enforceable.

 

	13.	 	Appendix. Notwithstanding any provisions in this Agreement, the grant of Units shall be
subject to any special terms and conditions set forth in any Appendix to this Agreement for
Grantee’s country. Moreover, if Grantee relocates to one of the countries included in the
Appendix, the special terms and conditions for such country will apply to Grantee, to the
extent the Company determines that the application of such terms and conditions is necessary
or advisable in order to comply with local law or facilitate the administration of the Plan.
The Appendix constitutes part of this Agreement.
	 
	14.	 	Miscellaneous.

	 	14.1.	 	The Company reserves the right to impose other requirements on Grantee’s participation
in the Plan, on the Units and on any shares of 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 Grantee to sign any additional
agreements or undertakings that may be necessary to accomplish the foregoing.
	 
	 	14.2.	 	Any notice required or permitted hereunder shall be given in writing and shall be
deemed effectively given upon delivery to Grantee at the address of Grantee then on file
with the Company.
	 
	 	14.3.	 	This Agreement, subject to the provisions of the Appendix and Plan, constitutes the
entire agreement of the parties with respect to the subject matter hereof.

	 	 	 	 	 	 
	AGREED AND ACCEPTED:	 	

	 
	GRANTEE:	 	WRIGHT MEDICAL GROUP, INC.

 	 
	 	 	By:  	 	 
	 	 	 	Jason P. Hood, Vice President, 	 
	 	 	 	General Counsel, and Secretary 	 

 

	 	 	 	 	 

APPENDIX

ADDITIONAL TERMS AND CONDITIONS OF

WRIGHT MEDICAL GROUP, INC.

PHANTOM STOCK UNIT GRANT AGREEMENT

(NON U.S. GRANTEES)

Terms and Conditions

This Appendix includes additional terms and conditions that govern the Units granted to Grantee
under the Plan if Grantee resides in one of the countries listed below. Certain capitalized terms
used but not defined in this Appendix have the meanings set forth in the Plan and/or the Agreement.

Notifications

This Appendix also includes information regarding exchange controls and certain other issues of
which Grantee should be aware with respect to Grantee’s participation in the Plan. The information
is based on the securities, exchange control and other laws in effect in the respective countries
as of September 2008. Such laws are often complex and change frequently. As a result, the Company
strongly recommends that Grantee not rely on the information in this Appendix as the only source of
information relating to the consequences of Grantee’s participation in the Plan because the
information may be out of date at the time that the Units vest or Grantee sells Stock acquired
under the Plan.

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

Finally, if Grantee is a citizen or resident of a country other than the one in which Grantee is
currently working, the information contained herein may not be applicable to Grantee.

BELGIUM

There are no country specific provisions.

CANADA

Notifications

French Language Provision. The following provisions will apply if Grantee is a resident of Quebec:

The parties acknowledge that it is their express wish that this Agreement, as well as all
documents, notices and legal proceedings entered into, given or instituted pursuant hereto or
relating directly or indirectly hereto, be drawn up in English.

	 	 	 	Les parties reconnaissent avoir exigé la redaction en anglais de cette convention
(“Agreement”), ainsi que de tous documents exécutés, avis donnés et procedures judiciaries
intentées, directement ou indirectement, relativement à la présente convention.

Termination of Service. This provision replaces Section 6(l) of the Agreement:

In the event of the termination of Grantee’s employment (whether or not in breach of local labor
laws), Grantee’s right to vest in Units under the Plan, if any, will terminate effective as of the
date that is the earlier of (1) the date Grantee receives notice of termination of Service from the
Company or the Employer, or (2) the date Grantee is no longer actively providing Service,
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,

A-1

 

regulatory law and/or common law); the Committee shall have the exclusive discretion to determine
when Grantee is no longer actively employed for purposes of the Units.

Data Privacy. This provision supplements paragraph 8 of the Agreement:

Grantee 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. Grantee further authorizes the Company, any Parent, Subsidiary or
Affiliate and the administrator of the Plan to disclose and discuss the Plan with their advisors.
Grantee further authorizes the Company and any Parent, Subsidiary or Affiliate to record such
information and to keep such information in Grantee’s employee file.

FRANCE

There are no country specific terms.

GERMANY

Notifications

Exchange Control Information. Cross-border payments in excess of €12,500 must be reported monthly
to the German Federal Bank. If Grantee uses a German bank to transfer a cross-border payment in
excess of €12,500 in connection with the sale of Stock acquired under the Plan, the bank will make
the report for Grantee. In addition, Grantee must report any receivables, payables, or debts in
foreign currency exceeding an amount of €5,000,000 on a monthly basis.

ITALY

Terms and Conditions

Data Privacy. This provision replaces in its entirety paragraph 8:

Grantee understands that the Employer and/or the Company may hold certain personal information
about Grantee, including, but not limited to, Grantee’s name, home address and telephone number,
date of birth, social security number (or any other social or national identification number),
salary, nationality, job title, number of Stock held and the details of all Units or any other
entitlement to Stock awarded, cancelled, exercised, vested, unvested or outstanding (the “Data”)
for the purpose of implementing, administering and managing Grantee’s participation in the Plan.
Grantee is aware that providing the Company with Grantee’s Data is necessary for the performance of
this Agreement and that Grantee’s refusal to provide such Data would make it impossible for the
Company to perform its contractual obligations and may affect Grantee’s ability to participate in
the Plan.

The Controller of personal data processing is Stefano de Donno, Wright Medical Italy, Via Liguria
18, 20068 Peschiera Borromeo (MI), Italy. Grantee understands that the Data may be transferred to
the Company or any of its Parent, Subsidiary or Affiliates, or to any third parties assisting in
the implementation, administration and management of the Plan, including any transfer required to a
broker or other third party with whom Stock acquired pursuant to the vesting of the Units or cash
from the sale of such Stock may be deposited. Furthermore, the recipients that may receive,
possess, use, retain and transfer such Data for the above mentioned purposes may be located in
Italy or elsewhere, including outside of the European Union and that the recipients’ country (e.g.,
the United States) may have different data privacy laws and protections than Grantee’s country.
The processing activity, including the transfer of Grantee’s personal data abroad, outside of the
European Union, as herein specified and pursuant to applicable laws and regulations, does not
require Grantee’s consent thereto as the processing is necessary for the performance of contractual
obligations related to the implementation, administration and management of the Plan. Grantee
understands that Data processing relating to the purposes above

A-2

 

specified shall take place under automated or non-automated conditions, anonymously when possible,
that comply with the purposes for which Data are collected and with confidentiality and security
provisions as set forth by applicable laws and regulations, with specific reference to D.lgs.
196/2003.

Grantee understands that Data will be held only as long as is required by law or as necessary to
implement, administer and manage Grantee’s participation in the Plan. Grantee understands that
pursuant to art.7 of D.lgs 196/2003, Grantee has the right, including but not limited to, access,
delete, update, request the rectification of Grantee’s Data and cease, for legitimate reasons, the
Data processing. Furthermore, Grantee is aware that Grantee’s Data will not be used for direct
marketing purposes. In addition, the Data provided can be reviewed and questions or complaints can
be addressed by contacting a local representative available at the following address:

Stefano de Donno

Wright Medical Italy

Via Liguria 18, 20068

Peschiera Borromeo (MI), Italy

Plan Document Acknowledgment. In accepting the Units, Grantee acknowledges that Grantee has
received a copy of the Plan and the Agreement and has reviewed the Plan and the Agreement,
including this Appendix, in their entirety and fully understands and accepts all provisions of the
Plan and the Agreement, including this Appendix. Grantee further acknowledges that Grantee has
read and specifically and expressly approves the following paragraphs of the Agreements: Vesting
Schedule, Conversion into Stock, Responsibility for Taxes, Nature of Grant and Data Privacy.

Notifications

Exchange Control Information. Grantee is required to report in Grantee’s annual tax return: (a)
any transfers of cash or Stock to or from Italy exceeding €10,000 or the equivalent amount in U.S.
dollars; and (b) any foreign investments or investments (including proceeds from the sale of Units
acquired under the Plan) held outside of Italy exceeding €10,000 or the equivalent amount in U.S.
dollars, if the investment may give rise to income in Italy. Grantee is exempt from the
formalities in (a) if the investments are made through an authorized broker resident in Italy, as
the broker will comply with the reporting obligation on Grantee’s behalf.

JAPAN

There are no country specific provisions.

NETHERLANDS

Notifications

Insider-Trading Notification. Grantee should be aware of the Dutch insider-trading rules, which
may impact the sale of Stock issued to Grantee at vesting and settlement of the Units. In
particular, Grantee may be prohibited from effectuating certain transactions involving Stock if
Grantee has inside information about the Company. If Grantee is uncertain whether the
insider-trading rules apply to Grantee, Grantee should consult Grantee’s personal legal advisor.

UNITED KINGDOM

Terms and Conditions

Responsibility for Taxes. The following provisions supplement paragraph 5 of the Agreement:

A-3

 

Grantee agrees that if Grantee does not pay or the Employer or the Company does not withhold from
Grantee the full amount of Tax-Related Items that Grantee owes due to the vesting of the Units, or
the release or assignment of the Units for consideration, or the receipt of any other benefit in
connection with the Units (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 that should have been withheld shall constitute a loan owed by Grantee to the
Employer, effective 90 days after the Taxable Event. Grantee agrees that the loan will bear
interest at the HM Revenue and Custom’s official rate and will be immediately due and repayable by
Grantee, 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 Grantee by the Employer, by withholding in
Stock issued upon vesting and settlement of the Units or from the cash proceeds from the sale of
Stock or by demanding cash or a cheque from Grantee. Grantee also authorizes the Company to delay
the issuance of any Stock to Grantee unless and until the loan is repaid in full.

Notwithstanding the foregoing, if Grantee 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 Grantee is an officer or
executive director and Tax-Related Items are not collected from or paid by Grantee within 90 days
of the Taxable Event, the amount of any uncollected Tax-Related Items may constitute a benefit to
Grantee on which additional income tax and national insurance contributions may be payable.
Grantee 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
paragraph 5 of the Agreement.

A-4EX-10.16

Exhibit 10.16

					
	 	 	 	 	 
	 
	 	
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SEPARATION PAY AGREEMENT

      

By and Between

WRIGHT MEDICAL TECHNOLOGY, INC.

and

FRANK S. BONO

      

APRIL 1, 2009

 

 

					
	 	 	 	 	 
	 
	 	
	 	CONFIDENTIAL

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SEPARATION PAY AGREEMENT

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	1.

	 	Definitions
	 	 	1	 
	 
	 	 	 	 	 	 
	2.

	 	Sarbanes-Oxley Act of 2002
	 	 	5	 
	 
	 	 	 	 	 	 
	3.

	 	Notice and Date of Termination
	 	 	6	 
	 
	 	 	 	 	 	 
	4.

	 	Termination from the Board and any Offices Held
	 	 	6	 
	 
	 	 	 	 	 	 
	5.

	 	Severance Benefits upon Involuntary Termination Prior to Change in
Control
	 	 	6	 
	 
	 	 	 	 	 	 
	6.

	 	Severance Benefits upon Involuntary Termination in Connection with and
after a Change in Control
	 	 	8	 
	 
	 	 	 	 	 	 
	7.

	 	Severance Benefits upon Termination
by the Company for Cause or by the
Executive Other than for Good Reason
	 	 	9	 
	 
	 	 	 	 	 	 
	8.

	 	Severance Benefits upon Termination due to Death
	 	 	10	 
	 
	 	 	 	 	 	 
	9.

	 	Adjustments to Maximize After-Tax Benefits
	 	 	10	 
	 
	 	 	 	 	 	 
	10.

	 	Nonexclusivity of Rights
	 	 	10	 
	 
	 	 	 	 	 	 
	11.

	 	Full Settlement; Mitigation
	 	 	11	 
	 
	 	 	 	 	 	 
	12.

	 	Representations
	 	 	11	 
	 
	 	 	 	 	 	 
	13.

	 	Executive’s Covenants
	 	 	11	 
	 
	 	 	 	 	 	 
	14.

	 	Specific Remedies for Executive Breach of the Covenants as outlined in
Section
	 	 	13	 
	 
	 	 	 	 	 	 
	15.

	 	Potential Impact of Accounting Restatements on Certain Bonuses and
Profits
	 	 	14	 
	 
	 	 	 	 	 	 
	16.

	 	Successors	 	 	14	 
	 
	 	 	 	 	 	 
	17.

	 	Administration Prior to Change in Control
	 	 	15	 
	 
	 	 	 	 	 	 
	18.

	 	Delayed Commencement of Certain Payments
	 	 	15	 
	 
	 	 	 	 	 	 
	19.

	 	Miscellaneous
	 	 	15	 
	 
	 	 	 	 	 	 
	EXHIBIT A	 	 	18	 
	 
	 	 	 	 	 	 
	EXHIBIT B	 	 	21	 

 

 

					
	 
	 	
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SEPARATION PAY AGREEMENT

     THIS SEPARATION PAY AGREEMENT (“Agreement”), dated as of April 1, 2009 (the
“Effective Date”) is made by and between WRIGHT MEDICAL TECHNOLOGY, INC., a corporation
organized and existing under the laws of the State of Delaware with its principal place of business
at 5677 Airline Road, Arlington, Tennessee 38002 (the “Company”), and FRANK S. BONO (the
“Executive”).

     WHEREAS, the Company or its Affiliate (collectively referred to as the “Company”)
employs the Executive as Senior Vice President, Research & Development and recognizes the Executive
as performing key functions for the success of the Company; and

     WHEREAS, the Company has determined that it is in the best interests of the Company to
institute formalized separation arrangements for certain executives of the Company, including
Executive, in the event of a separation of employment; and

     WHEREAS, the Executive desires to enter into this Agreement with Company;

     NOW, THEREFORE, based on the foregoing, and for and in consideration of the mutual covenants
contained in this Agreement, the Company and the Executive hereby agree as follows:

     1. Definitions. For the purposes of this Agreement, the following capitalized terms
have the meanings set forth below:

          1.1.
“Accounting Firm” has the meaning assigned thereto in Section 9.4 hereof.

          1.2. “Act” has the meaning assigned in Section 2 hereof.

          1.3. “Affiliate” has the meaning set forth in Rule 12b-2 promulgated under the
Exchange Act.

          1.4. “Buyer” has the meaning assigned thereto in Section 19.11 hereof.

          1.5. “Cause” means:

               1.5.1. Prior to a Change in Control, (i) the willful failure by the Executive to substantially
perform the Executive’s duties with the Company (other than any such failure resulting from the
Executive’s incapacity due to physical or mental illness) as determined by the Board, which failure
amounts to an intentional and extended neglect of the Executive’s duties, (ii) continued,
documented poor performance on the part of the Executive following a reasonably sufficient time for
the Executive to improve, (iii) the determination by the Board, in its sole discretion, that the
Executive has engaged or is about to engage in conduct materially injurious to the Company, (iv)
the Executive’s conviction of or entering of a guilty or no contest plea to a felony charge (or
equivalent thereof) in any jurisdiction; and/or (v) the Executive’s participation in activities
proscribed in Sections 13.1, 13.3, and 13.4 or the material breach of any other covenants contained
herein. For the purposes of clause (i) of this definition, no act, or failure to act, on the
Executive’s part shall be deemed to be “willful” unless done, or omitted to be done, by the
Executive not in good faith and without reasonable belief that the Executive’s act, or failure to
act, was in the best interests of the Company.

               1.5.2. From and after a Change in Control, (i) the willful failure by the Executive to
substantially perform the Executive’s duties with the Company (other than any such failure
resulting from the Executive’s incapacity due to physical or mental illness) as determined by the
Board, which failure amounts to an intentional and extended neglect of the Executive’s duties, (ii)
the determination by the

 

 

	 	 	 
	 	 	 
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Board, in its sole discretion, that the Executive has engaged or is about to engage in conduct
materially injurious to the Company, (iii) the Executive’s conviction of or entering of a guilty or
no contest plea to a felony charge (or equivalent thereof) in any jurisdiction; and/or (iv) the
Executive’s participation in activities proscribed in Sections 13.1, 13.3, and 13.4 or the material
breach of any other covenants contained herein. For the purposes of clause (i) of this definition,
no act, or failure to act, on the Executive’s part shall be deemed to “willful” unless done, or
omitted to be done, by the Executive not in good faith and without reasonable belief that the
Executive’s act, or failure to act, was in the best interests of the Company. Notwithstanding the
foregoing, the Executive shall not be deemed terminated for Cause pursuant to clause (i) of this
definition unless and until the Executive shall have been provided with reasonable notice of and,
if possible, a reasonable opportunity to cure the facts and circumstances claimed to provide a
basis for termination of the Executive’s employment for Cause.

          1.6. “Change in Control” shall be deemed to have occurred on or after the Effective
Date of any of the following:

               1.6.1. the acquisition by any Person or Persons acting as a group of capital stock of Wright
Medical Group, Inc. (“WMG”), a Delaware corporation and the sole stockholder of the
Company, which when added to any capital stock of WMG already owned by the Person, constitutes more
than fifty percent (50%) of either (i) the total fair market value of the outstanding capital stock
of WMG, or (ii) the total voting power of the outstanding capital stock of WMG; provided, however,
that a Change in Control will not be deemed to have occurred when any Person who owns more than
fifty percent (50%) of the total fair market value or the total voting power of the outstanding
capital stock of WMG as of the date of this Agreement acquires any additional capital stock of WMG;
and provided further, that an increase in the percentage of the outstanding capital stock of WMG
owned by a Person as a result of a transaction in which WMG acquires its capital stock in exchange
for property will be treated as an acquisition of such capital stock by such Person; or

               1.6.2. the acquisition by a Person, in a single transaction or a series of transactions within
a twelve (12) month period, of capital stock of WMG representing not less than thirty-five percent
(35%) of the total voting power of the outstanding capital stock of WMG; or

               1.6.3. the acquisition by a Person, in a single transaction or a series of transactions within
a twelve (12) month period, of consolidated assets of WMG which have a total gross fair market
value of not less than forty percent (40%) of the total gross fair market value of all the
consolidated assets of WMG immediately prior to such acquisition(s), in each case without regard to
any liabilities associated with such assets; provided, however, that a Change in Control will not
be deemed to have occurred when such assets are acquired by:

                    1.6.3.1. an entity of which WMG owns, directly or indirectly, fifty percent (50%) or more of
the total fair market value or the total voting power of the outstanding capital stock;

                    1.6.3.2. a Person which owns, directly or indirectly, fifty percent (50%) or more of the total
fair market value or the total voting power of the outstanding capital stock of WMG;

                    1.6.3.3. an entity of which a Person described in clause ii above owns, directly or
indirectly, fifty percent (50%) or more of the total fair market value or the total voting power of
the outstanding capital stock;

                    1.6.3.4. an entity which is controlled by the stockholders of WMG immediately after the
transfer; or

                    1.6.3.5. a stockholder of WMG in exchange for or with respect to capital stock of WMG.

 

 

	 	 	 
	 
	 	 
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          1.6.4 a majority of the members of the WMG Board of Directors (the “Board”) is
replaced in any twelve (12) month period by directors whose appointment or election is not endorsed
by a majority of the members of the Board prior to the date of the appointment or election; or

          1.6.5 there is consummated a merger or consolidation of the Company or any direct or indirect
subsidiary of the Company with any other corporation or partnership which results in a forty
percent (40%) or more of the Company’s assets to be transferred under the control of a different
legal entity.

          1.7. “Change in Control Date” means the date on which a Change in Control occurs.

          1.8. “Code” means the Internal Revenue Code of 1986, as amended and the Treasury
Regulations promulgated thereunder, as in effect from time to time.

          1.9. “Compensation Committee” means the compensation committee of the Board.

          1.10. “Competitive Business” means the manufacturing, supplying, producing, selling,
distributing, marketing or providing for sale of any product, device or instrument manufactured or
sold by the Company or any of its Affiliates or subsidiaries, in each case as of the Executive’s
Date of Termination.

          1.11. “Confidential Information” means non-public privileged or confidential
information and trade secrets concerning the operations, future plans and methods of doing
business.

          1.12. “Date of Termination” has the meaning assigned thereto in Section 3.2 hereof.

          1.13. “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the
applicable rulings and regulations thereunder.

          1.14. “Excise Tax” has the meaning assigned thereto under Section 9 hereof.

          1.15.“Good Reason” means:

               1.15.1. Prior to a Change in Control, the occurrence of any of the following without the prior
written consent of the Executive, unless such act or failure to act is corrected prior to the Date
of Termination specified in the Notice of Termination (as discussed in Section 3 hereof):

                    1.15.1.1. the assignment to the Executive of any duties materially inconsistent with the range
of duties and responsibilities appropriate to a senior executive within the Company, such range
determined by reference to past, current and reasonable practices within the Company;

                    1.15.1.2. a material reduction in the Executive’s overall standing and responsibilities within
the Company, but not including a mere title change or a transfer within the Company which does not
singly or together adversely affect the Executive’s overall status within the Company, provided
however, that no change in reporting relationship resulting from organizational realignment due to
the addition of a Chief Operating Officer or Chief Commercial Officer shall be included in this
definition of Good Reason;

                    1.15.1.3. a material reduction by the Company in the Executive’s aggregate annualized
compensation and benefits opportunities, except for across-the-board reductions or modifications of
benefit plans similarly affecting all similarly situated executives of comparable rank with the
Executive;

 

 

	 	 	 
	 
	 	 
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                    1.15.1.4. the failure by the Company to pay to the Executive any portion of the Executive’s
current compensation and benefits under any program with the Company within thirty (30) days of the
date such compensation and/or benefits are due;

                    1.15.1.5. any purported termination of the Executive’s employment that is not effected
pursuant to a Notice of Termination satisfying the requirements of Section 3 hereof; for the
purposes of this Agreement, no such purported termination shall be effective;

                    1.15.1.6. the failure by the Company to obtain a satisfactory agreement from any successor of
the Company requiring such successor to assume and agree to perform the Company’s obligations under
this Agreement, as contemplated in Section 16.3 hereof;

                    1.15.1.7. the failure of the Company to provide indemnification and D&O insurance protection
as required in Section 10 of this Agreement; or

                    1.15.1.8. the failure by the Company to comply with any material provision of this Agreement.

               1.15.2. From and after a Change in Control, the occurrence of any of the following without the
prior written consent from the Executive, unless such act or failure to act is corrected prior to
the Date of Termination specified in the Notice of Termination (as discussed in Section 3 hereof):

                    1.15.2.1. a material and adverse change in the Executive’s title, authority as an executive
officer, duties, responsibilities or reporting lines as in effect immediately prior to the Change
in Control;

                    1.15.2.2. a material reduction in the Executive’s aggregate annualized compensation
opportunities or the failure to continue in effect any material benefit plan in which the Executive
participates immediately prior to the Change in Control, unless an equitable arrangement, agreeable
to the Executive, has been made with respect to such plan as replacement or the reduction in
participation levels of such replacement plans of the Executive;

                    1.15.2.3. the relocation of the Executive’s principal place of employment immediately prior to
the Change in Control Date (the “Principal Location”) to a location which is more than
forty (40) miles from the Principal Location.

               1.15.3. Notwithstanding any of the foregoing, placing the Executive on a paid leave for up to
ninety (90) days pending a determination of whether there is a basis to terminate the Executive for
Cause shall not constitute a Good Reason.

               1.15.4. Following a Change in Control, the Executive’s determination that an act or failure to
act constitutes Good Reason shall be presumed to be valid unless the Company can provide
incontrovertible evidence to the contrary. The Executive’s right to terminate the Executive’s
employment for Good Reason shall not be affected by the Executive’s incapacity due to physical or
mental illness. The Executive’s continued employment shall not constitute consent to, or a waiver
of rights with respect to, any act or failure to act constituting Good Reason hereunder.

          1.16. “Incentive Compensation Awards” means awards granted under Incentive
Compensation Plans providing the Executive with the opportunity to earn, on a year-by-year or a
multi-year basis, annual and long-term incentive compensation.

          1.17. “Incentive Compensation Plans” means annual incentive compensation plans and
long-term incentive compensation plans of the Company, which long-term incentive compensation plans
may include plans offering stock options, restricted stock and other forms of long-tern incentive
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          1.18. “Involuntary Termination” means (a) a termination of employment by the Company
for other than for Cause or death, or (b) the Executive’s resignation of employment for Good
Reason; provided, however, that except as provided in the last paragraph of Section 6 hereof, a
termination of the Executive’s employment by reason of the Executive’s retirement on or after age
[65] prior to a Change in Control shall not constitute an Involuntary Termination hereunder. In
addition, an Involuntary Termination that would cause an amount to be paid to an Executive which is
non-qualified deferred compensation subject to Code Section 409A, shall also mean an Executive’s
“separation from service” within the meaning of Section 409A of the Code.

          1.19. “Notice of Termination” has the meaning assigned thereto under Section 3.1
hereof.

          1.20. “Payment” has the meaning assigned thereto in Section 9 hereof.

          1.21. “Person” has the meaning set forth in Section 3(a)(9) of the Exchange Act, as
modified and used in sections 13(d) and 14(d) thereof, except that the term shall not include (i)
the Company or any of its Affiliates, (ii) a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or any of its Affiliates, (iii) an underwriter temporarily
holding securities pursuant to an offering of such securities, (iv) a corporation owned, directly
or indirectly, by the shareholders of the Company in substantially the same proportions as their
ownership of the stock in the Company, or (v) a person or group as used in Rule 13d-1(b)
promulgated under the Exchange Act.

          1.22. “Post-Change In Control Accrued Obligations” has the meaning assigned thereto in
Section 6.3.1 hereof.

          1.23. “Post-Change In Control Severance Payment” has the meaning assigned thereto in
Section 6 hereof.

          1.24. “Pre-Change In Control Accrued Obligations” has the meaning assigned thereto in
Section 5.3.1 hereof.

          1.25. “Pre-Change In Control Severance Payment” has the meaning assigned thereto in
Section 5 hereof.

          1.26. “Principal Location” has the meaning assigned thereto in Section 1.15.2.3 above.

          1.27. “Release” has the meaning assigned thereto in Section 13.5 hereof.

          1.28. “Total Number of Months” has the meaning assigned thereto in Sections 5 and 6
hereof.

          1.29. “Underpayment” has the meaning assigned thereto in Section 9.2 hereof.

     2. Sarbanes-Oxley Act of 2002. Notwithstanding anything herein to the contrary, if
the Company determines, in its good faith judgment, that any provision of this Agreement is likely
to be interpreted as a personal loan prohibited by the Sarbanes-Oxley Act of 2002 and the rules and
regulations promulgated thereunder (the “Act”), then such provision shall be modified as
necessary or appropriate so as to not violate the Act; and if this cannot be accomplished, then the
Company shall use its best efforts to provide the Executive with similar, but lawful, substitute
benefit(s) at a cost to the Company not to significantly exceed the amount the Company would have
otherwise paid to provide such benefit(s) to the Executive. In addition, if the Executive is
required to forfeit or to make any repayment of any compensation or benefit(s) to the Company under
the Act or any other law, such forfeiture or repayment shall not constitute Good Reason.

 

 

	 	 	 
	 
	 	 
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     3. Notice and Date of Termination

          3.1. Any termination of the Executive’s employment by the Company or by the Executive shall be
communicated by a written notice of termination to the other party (the “Notice of
Termination”). Where applicable, the Notice of Termination shall indicate the specific
termination provision in this Agreement relied upon and shall set forth in reasonable detail the
facts and circumstances claimed to provide a basis for termination of the Executive’s employment
under the provision so indicated. Unless the Board determines otherwise, a Notice of Termination
by the Executive alleging a termination for Good Reason must be made within 90 days of the initial
instance, or the initial instance which should reasonably have been known to the Executive, of an
act or failure to act that the Executive alleges to constitute Good Reason.

          3.2. The date of the Executive’s termination of employment with the Company (the “Date of
Termination”) shall be determined as follows:

               3.2.1. If due to Company terminating the Executive’s employment, either with or without Cause,
the Date of Termination shall be the date specified in the Notice of Termination; if for other than
Cause, the Date of Termination shall not be less than two (2) weeks from the date such Notice of
Termination is given, unless the Company elects to pay the Executive for that period in lieu of
notice.

               3.2.2. If due to death, the Date of Termination is the date of death.

               3.2.3. If the basis of the Executive’s Involuntary Termination is the Executive’s resignation
for Good Reason, the Date of Termination shall be determined by the Company, but shall not be less
than two (2) weeks nor more than eight (8) weeks form the date such Notice of Termination is given.

     4. Termination from the Board and any Offices Held. Upon termination of the
Executive’s employment for any reason, the Executive agrees the Executive’s membership on the Board
of the Company, the board of directors of any of the Company’s Affiliates, any committees of the
Board, any committees of the board of directors of any of the Company’s Affiliates and any and all
offices held, if applicable, shall be automatically terminated. Executive hereby agrees to
cooperate with the Company and execute any documents reasonably required by the Company or
competent authorities to effect this provision.

     5. Severance Benefits upon Involuntary Termination Prior to Change in Control. Except
as provided in Sections 6 and 17 hereof, in the event of the Involuntary Termination of the
Executive prior to a Change in Control, the Company shall pay to the Executive the following
Pre-Change in Control Severance Payment in the following amounts and manner:

          5.1. The total payment will be equal to the product of twelve (12) months (the “Total
Number of Months”) multiplied by 1.45 times monthly base pay. Provided, however, if the
termination occurs within the first two (2) years of the Executive’s initial employment, the
Total Number of Months shall not be less than eighteen (18) months.

          5.2. The payment will be made as follows: (i) half in a lump sum payable at or within a
reasonable period of time after the Date of Termination and (ii) subject to receipt of an executed
Release that has not been revoked, the remaining half in installments starting six (6) months after
the Date of Termination with a final installment of all remaining amounts to be paid on or before
March 15 of the calendar year following the year in which the Date of Termination occurred. The
amount of each installment payment described in clause (ii) of the preceding sentence will be
determined by dividing half of the total payment by 50% of the Total Number of Months. The final installment will be
equal to the total payment reduced by all the amounts previously paid (i.e., the lump sum payment
and the sum of all the installment payments previously paid). Notwithstanding the provisions of
clause (ii) to the contrary, if the

 

 

	 	 	 
	 
	 	 
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six month period would cause the installments to begin to be
paid after the March 15 date described in the first sentence of this section 5.2, then no
installments will be paid, and the second payment will be a lump sum equal to half the total
payment and that payment will be paid on or before March 15 of the calendar year following the year
in which the Date of Termination occurred. The installment payments (or the second lump sum
payment, if applicable) are specifically designated as consideration for execution of the Release
required in Section 13 and compliance with Executive’s covenants outlined in Section 13. All
payments will have applicable taxes withheld and any installment payments will be paid at the same
time as the normal Company payroll.

          5.3. In addition to the Pre-Change in Control Severance Payment, the Executive shall be
entitled to receive the following additional benefits:

               5.3.1. Accrued Obligations. The Company shall pay to the Executive a lump sum amount
in cash equal to the sum of (i) the Executive’s annual base salary through the Date of Termination
to the extent not theretofore paid, (ii) an amount equal to any annual cash Incentive Compensation
Awards earned (based on the performance for the most recently completed incentive period, whether
that period is the prior quarter or the prior calendar year), but not yet paid, (iii) an amount
equal to the value of any accrued and/or untaken vacation, if any, and (iv) reimbursement for
unreimbursed business expenses, if any, properly incurred by the Executive in the performance of
the Executive’s duties in accordance with the policies established from time to time by the Board.
(The amounts specified in clauses (i), (ii), (iii) and (iv) shall be hereinafter referred to as the
“Pre-Change in Control Accrued Obligations”.)

               5.3.2. Equity Based Compensation. All equity-based Incentive Compensation Awards
(including, without limitation, stock options, stock appreciation rights, restricted stock awards,
restricted stock units, performance share awards or other related awards) held by the Executive
shall be governed by the terms of the applicable Incentive Compensation Plan and Incentive
Compensation Award agreement, and this Agreement shall have no effect upon them.

               5.3.3. Welfare Benefits. Subject to Section 11 herein, the Executive shall be
eligible for health and dental coverage as provided for under COBRA, using the normal COBRA
administration process of the Company. The Company will pay all costs of these benefits for a
period up to, but not exceeding 18 months. If the Executive accepts employment with another
employer or otherwise is no longer eligible for COBRA coverage, these welfare benefits will cease
to be provided.

               5.3.4. Outplacement Benefits. The Executive shall receive outplacement assistance and
services following the Date of Termination for a period of months equal to the Total Number of
Months. These services will be provided by a national firm whose primary business is outplacement
assistance, selected by the Company. Notwithstanding the above, if the Executive accepts
employment with another employer, these outplacement benefits shall cease on the date of such
acceptance.

               5.3.5. Financial Planning Services. The Executive shall receive financial planning
services for a period of months equal to the Total Number of Months following the Date of
Termination, at a level consistent with the benefits provided under the Company’s financial
planning program for the Executive as in effect immediately prior to the Date of Termination.

               5.3.6. Annual Physical. The Executive may, within the 12 months following the Date of
Termination, receive an annual physical consistent with the physical provided under the Company’s
annual physical program as in effect immediately prior to the Date of Termination.

               5.3.7. General Insurance Benefit. No later than March 15 of the calendar year
following the year in which the Date of Termination occurred, provided Executive has made a request
for the payment described in this section 5.3.7 on such form as the Company may require. Executive
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receive a payment for use in continuation of insurance coverage, such payment to be equal to
the annual supplemental executive insurance benefit provided to the Executive prior to the
Executive’s Date of Termination. The Company will use its best efforts to make this payment at the
time requested.

               5.3.8. Attorney’s Fees in Defense of This Agreement. Notwithstanding any provision in
this Agreement, the Company shall pay all reasonable attorneys’ fees and expenses for the Executive
if the Executive must engage an attorney in order to enforce this Agreement following the
Executive’s Date of Termination. The Company will make payments on at least a quarterly basis
based on billings presented by the Executive from his or her legal counsel.

     6. Severance Benefits upon Involuntary Termination in Connection with and after a Change
in Control. Notwithstanding the provisions of Section 5 above, in the event of the Involuntary
Termination of the Executive within twelve (12) months following a Change in Control, the Company
shall pay to the Executive the following Post-Change in Control Severance Payment in the
following amounts and manner:

          6.1. The total payment will be equal to twelve (12) months multiplied by 1.45 times monthly
base pay. This is the Total Number of Months (the “Total Number of Months”). Provided,
however, if the termination occurs within the first two (2) years of the Executive’s initial
employment, the Total Number of Months shall not be less than eighteen (18) months.

          6.2. The payment will be made as follows: (i) half in a lump sum payable at or within a
reasonable period of time after the Date of Termination and (ii) subject to receipt of an executed
Release that has not been revoked, the remaining half in installments starting six (6) months after
the Date of Termination with a final installment of all remaining amounts to be paid on March 15 of
the calendar year following the year in which the Date of Termination occurred. The amount of each
installment payment described in clause (ii) of the preceding sentence will be determined by
dividing half of the total payment by 50% of the total Number of Months. The final installment
will be equal to the total payment reduced by all the amounts previously paid (i.e., the lump sum
payment and the sum of all the installment payments previously paid). Notwithstanding the
provisions of clause (ii) to the contrary, if the six month period would cause the installments to
begin to be paid after the March 15 date described in the first sentence of this section 6.2, then
no installments will be paid, and the second payment will be a lump sum equal to half the total
payment and that payment will be paid on March 15 of the calendar year following the year in which
the Date of Termination occurred. The installment payments (or the second lump sum payment, if
applicable) are specifically designated as consideration for execution of the Release required in
Section 13 and compliance with Executive’s covenants outlined in Section 13. All payments will
have applicable taxes withheld and any installment payments will be paid at the same time as the
normal Company payroll.

          6.3. In addition to the Post-Change in Control Severance Payment, the Executive shall be
entitled to receive the following additional benefits:

               6.3.1. Accrued Obligations. The Company shall pay to the Executive a lump sum amount
in cash equal to the sum of (i) the Executive’s annual base salary through the Date of Termination
to the extent not theretofore paid, (ii) an amount equal to any annual cash Incentive Compensation
Awards earned (based on most recently completed performance period, whether that period is the
prior quarter or the prior year), but not yet paid, (iii) an amount equal to the value of any
accrued and/or untaken vacation, if any, (iv) reimbursement for unreimbursed business expenses, if
any, properly incurred by the Executive in the performance of the Executive’s duties in accordance
with the policies established from time to time by the Board and (v) an annual incentive payment at
target for the year that includes the Date of Termination, prorated. (The amounts specified in clauses (i),
(ii), (iii), (iv) and (v) shall be hereinafter referred to as the “Post-Change in Control
Accrued Obligations”.)

               6.3.2. Equity Based Compensation. All equity-based Incentive Compensation Awards
(including, without limitation, stock options, stock appreciation rights, restricted stock awards,

 

 

	 	 	 
	 
	 	 
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restricted stock units, performance share awards or other related awards) held by the Executive
shall be governed by the terms of the applicable Incentive Compensation Plan and Incentive
Compensation Award agreement, and this Agreement shall have no effect upon them.

               6.3.3. Welfare Benefits. Subject to Section 11 herein, the Executive shall be
eligible for health and dental coverage as provided for under COBRA, using the normal COBRA
administration process of the Company. The Company will pay all costs of these benefits for a
period up to, but not exceeding 18 months. If the Executive accepts employment with another
employer or otherwise is no longer eligible for COBRA coverage, these welfare benefits will cease
to be provided.

               6.3.4. Outplacement Benefits. The Executive shall receive outplacement assistance and
services following the Date of Termination for a period of months equal to the Total Number of
Months. These services will be provided by a national firm whose primary business is outplacement
assistance, selected by the Company. Notwithstanding the above, if the Executive accepts
employment with another employer, these outplacement benefits shall cease on the date of such
acceptance.

               6.3.5. Financial Planning Services. The Executive shall receive financial planning
services for a period of months equal to the Total Number of Months following the Date of
Termination, at a level consistent with the benefits provided under the Company’s financial
planning program for the Executive as in effect immediately prior to the Date of Termination.

               6.3.6. Annual Physical. The Executive shall, within the 12 months following the Date
of Termination, receive an annual physical consistent with the physical provided under the
Company’s annual physical program as in effect immediately prior to the Date of Termination.

               6.3.7. General Insurance Benefit. No later than March 15 of the calendar year
following the year in which the Date of Termination occurred, provided Executive has made a request
for the payment described in this section 6.3.7 on such form as the Company may require. Executive
shall receive a payment for use in continuation of insurance coverage, such payment to be equal to
the annual supplemental executive insurance benefit provided to the Executive prior to the
Executive’s Date of Termination. The Company will use its best efforts to make this payment at the
time requested.

               6.3.8. Attorney’s Fees in Defense of This Agreement. Notwithstanding any provision in
this Agreement, the Company shall pay all reasonable attorneys’ fees and expenses for the Executive
if the Executive must engage an attorney in order to enforce this Agreement following the
Executive’s Date of Termination. The Company will make payments on at least a quarterly basis
based on billings presented by the Executive from his or her legal counsel.

          6.4. Notwithstanding anything contained herein, if a Change in Control occurs and the
Executive’s employment with the Company is terminated by reason of Involuntary Termination prior to
the Change in Control Date, and if such termination of employment (i) was at the request of a third
party who has taken steps reasonably calculated to effect the Change in Control or (ii) otherwise
arose in connection with or in anticipation of the Change in Control, then the Executive shall, in
lieu of the payments described in Section 5 hereof, be entitled to the Post-Change in Control
Severance Payment and the additional benefits described in this Section 6 as if such Involuntary
Termination had occurred within twelve (12) months following the Change in Control.

     7. Severance Benefits upon Termination by the Company for Cause or by the Executive Other
than for Good Reason. If the Executive’s employment shall be terminated for Cause, or if the
Executive terminates employment other than for Good Reason, the Company will have no further
obligations to the Executive under this Agreement other than the Pre-Change in Control Accrued
Obligations and any amounts described in Section 10 hereof.

 

 

	 	 	 
	 
	 	 
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     8. Severance Benefits upon Termination due to Death. If the Executive’s employment
shall terminate by reason of death, the Company shall pay the Executive’s estate the Post-Change in
Control Accrued Obligations and any amounts or benefits described in Section 10 herein. Such
payments shall be in addition to those rights and benefits to which the Executive’s estate may be
entitled under the relevant Company plans or programs.

     9. Adjustments to Maximize After-Tax Benefits. In the event it shall be determined
that any payment or distribution by the Company or its Affiliates to or for the benefit of the
Executive (whether paid or payable or distributed or distributable pursuant to the terms of this
Agreement or otherwise, but determined without regard to any additional payments required under
this Section 9 ( a “Payment”) would be subject to the excise tax imposed by Section 4999 of
the Code or any interest or penalties are incurred by the Executive with respect to such excise tax
(such excise tax, together with any such interest and penalties, are hereinafter collectively
referred to as the “Excise Tax”) , then the Executive’s Unreduced and Reduced Net Benefit
shall be determined and the Payments shall be adjusted in accordance with Section 9.3.

          9.1. For purposes of Section 9.3 the Unreduced Net Benefit shall equal the Payments, less the
amount of federal, state and local income and other taxes (including the excise tax under Code
Section 4999) payable with respect to such benefits. For these purposes, the federal, state, local
and any other taxes shall be calculated at the maximum marginal income tax rates applicable to such
Executive for each year in which the foregoing amounts shall be paid.

          9.2.
For purposes of Section 9.3 the Reduced Net Benefit shall equal the amount determined
under Section 9.1 but with the Payments first reduced by an amount such that the present value of
all payments and benefits that the Executive receives or is entitled to receive from the Company
that would constitute “parachute payments” within the meaning of Code Section 280G does not exceed
2.99 times the Executive’s “base amount,” as defined under Code Section 280G. For purposes of
calculating the aggregate present value of such parachute payments, the requirements of Code
Section 280G shall be followed.

          9.3. If the Executive’s Reduced Net Benefit is greater than the Unreduced Net Benefit, then
the amount of the Payments set forth in Section 9.2 of the Agreement shall be reduced to an
aggregate present value amount that does not subject any of the payments to taxation under Code
Section 4999.

          9.4. A nationally recognized accounting firm as may be agreed upon by the Company and the
Executive (the “Accounting Firm”) shall perform any and all calculations required under Code
Section 280G, and shall determine the Executive’s Reduced and Unreduced Net Benefit. Such
determination shall be made within ten (10) business days of the date of a change in control or
ownership as determined under Code Section 280G and such determinations shall be binding on the
Company and the Executive. In the event a reduction of the Payments is to be made pursuant to
Section 9.3, the Executive shall have discretion to determine which and how much of the Payments
shall be eliminated or reduced consistent with the requirements of Section 9.3 and in accordance
with the requirements of Code Section 409A. The Executive shall make such decision no later than
five (5) business days following the
determination by the independent accounting firm of the Executive’s Reduced and Unreduced Net
Benefit.

     10. Nonexclusivity of Rights. Nothing in this Agreement shall prevent or limit the
Executive’s continuing or future participation in any benefit plan, program, policy or practice
provided by the Company and for which the Executive may qualify (except with respect to any benefit
to which the Executive has waived the Executive’s rights in writing), including, without
limitation, any and all indemnification arrangements in favor of the Executive (whether under
agreements or under the Company’s charter documents or otherwise), and insurance policies covering
the Executive, nor shall anything herein limit or otherwise affect such rights as the Executive may
have under any other contract or agreement entered into after the Effective Date with the Company.
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Executive is otherwise entitled to receive under any
benefit, plan, policy, practice or program of, or any contract or agreement entered into with, the
Company shall be payable in accordance with such benefit, plan, policy, practice or program or
contract or agreement except as explicitly modified by this Agreement. At all times during the
Executive’s employment with the Company and thereafter, the Company shall provide the Executive
with indemnification and director and officer insurance insuring the Executive against insurable
events which occur or have occurred while the Executive was a director or executive officer of the
Company, on terms and conditions that are at least as generous as that then provided to any other
current or former director or executive officer of the Company or any Affiliate.

     11. Full Settlement; Mitigation. The Company’s obligation to make the payments
provided for in this Agreement and otherwise to perform the obligations hereunder shall not be
affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which
the Company may have against the Executive or others, provided that nothing herein shall preclude
the Company from separately pursuing recovery from the Executive based on any such claim. In no
event shall the Executive be obligated to seek other employment or take any other action by way of
mitigation of the amounts (including amounts for damages for breach) payable to the Executive under
any of the provisions of this Agreement, and such amounts shall not be reduced whether or not the
Executive obtains other employment.

     12. Representations. The Executive hereby represents to the Company that the
Executive is legally entitled to enter into this Agreement and to perform the Executive’s
obligations hereunder, and that the Executive has the full right, power and authority, subject to
no rights of any third parties, to grant to the Company the rights contemplated in Section 13.2.

     13. Executive’s Covenants. The Executive hereby agrees to the following:

          13.1. Confidentiality. The Executive recognizes and acknowledges that the Company’s
and its predecessor’s Confidential Information is a valuable, special and unique asset of the
Company’s businesses, access to and knowledge of which are essential to the performance of the
Executive’s duties. Confidential Information shall include trade secrets and includes information
acquired by the Executive in the course and scope of the Executive’s job with the Company,
including information acquired from third parties, that is (i) not generally known or disseminated
outside the Company (such as nonpublic information), (ii) is designated or marked by the Company as
“confidential” or reasonably should be considered confidential or proprietary, or (iii) the Company
indicates through its policies, procedures or other instructions should not be disclosed to anyone
outside the Company. Without limiting the foregoing definitions, some examples of Confidential
Information under this Agreement include (a) matters of a technical nature, such as scientific,
trade or engineering secrets, “know-how”, formulae, secret processes, inventions, and research and
development plans or projects regarding existing and prospective customers, and products and
services, (b) information about costs, profits, markets, sales, customer lists,
customer needs, customer preferences and customer purchasing histories, supplier lists,
internal financial data, personnel evaluations, nonpublic information about medical devices or
products of the Company (including future plans about them), information and material provided by
third parties in confidence and/or with nondisclosure restrictions, computer access passwords, and
internal market studies or surveys and (c) any other information or matters of a similar nature.
The Executive shall not, during or after the Executive’s employment by the Company, in whole or in
part, disclose such Confidential Information to any person, firm, corporation, association or other
entity for any reason or purpose whatsoever, nor shall the Executive make use of any such property
for the Executive’s own purposes or for the benefit of any person firm, corporation, association or
other entity (except the Company) under any circumstances during or after the Executive’s
employment by the Company; provided, however, that after the Executive’s employment by the Company
ceases these restrictions shall not apply to such Confidential Information, if any, which are then
in the public domain, and provided further that the Executive was not responsible, directly or
indirectly, for such Confidential Information entering the public domain without the Company’s
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          13.2. Inventions. The Executive hereby sells, transfers and assigns to the Company
or to any person or entity designated by the Company all of the right, title and interest of the
Executive in and to all inventions, ideas, disclosures and improvements, whether patented or
unpatented, and copyrightable material, made or conceived by the Executive, solely or jointly,
during the Executive’s employment by the Company or any of its predecessors which relate to
methods, apparatus, designs, products, processes or devices sold, leased, used or under
consideration or development by the Company or any of its predecessors, or which otherwise relate
to or pertain to the business, functions or operations of the Company or any of its predecessors,
or which arise from the efforts of the Executive during the Executive’s employment with the Company
or any of its predecessors. The Executive shall, during and after the Executive’s employment with
the Company, communicate promptly and disclose to the Company, in such form as the Company
requests, all information, details and data pertaining to the aforementioned inventions, ideas,
disclosures and improvements. The Executive shall, during and after the Executive’s employment by
the Company, execute and deliver to the Company such formal transfers and assignments and such
other papers and documents as may be necessary by the Company to file and prosecute the patent
applications and, as to copyrightable material, to obtain copyright thereof. Any invention
relating to the business of the Company and disclosed by the Executive within one (1) year after
the Executive’s employment with the Company ceases shall be deemed to fall within the provisions of
this Section 13.2 unless proved to have been first conceived and made following such termination or
expiration.

          13.3. Non-Solicitation of Employees. The Executive recognizes that the Executive
possesses and will possess confidential information about other employees of the Company and its
Affiliates relating to their education, experience, skills, abilities, compensation and benefits,
and inter-personal relationships with customer of the Company and its Affiliates. The Executive
recognizes that the information the Executive possesses and will possess about these other
employees is not generally known, is of substantial value to the Company and its Affiliates in
developing their business and in securing and retaining customers, and has been and will be
acquired by the Executive because of the Executive’s business position with the Company and its
Affiliates. The Executive agrees that at all times during the Executive’s employment with the
Company and for a period equal to the Executive’s Total Number of Months thereafter, the Executive
will not, directly or indirectly, solicit or recruit any employee of the Company or its Affiliates
for the purpose of being employed by the Executive or by any competitor of the Company or its
Affiliates on whose behalf the Executive is acting as an agent, representative or employee and that
the Executive will not convey such confidential information or trade secrets about other employees
of the Company and its Affiliates to any other Person; provided, however, that it shall not
constitute a solicitation or recruitment of employment in violation of paragraph to discuss
employment opportunities with any employee of the Company or its Affiliates who has either first
contacted the Executive or regarding whose employment the Executive has discussed with and received
the written approval of the Company’s Vice President, Human Resources (or, if such position is
vacant, the Company’s then Chief Executive Officer), prior to making such solicitation or
recruitment. In view of the nature of the Executive’s employment with the Company, the Executive
likewise agrees that the Company and its Affiliates would be irreparably harmed by any such
solicitation or recruitment in violation of the terms of this paragraph and that the Company and
its Affiliates shall therefore be entitled to preliminary and/or permanent injunctive relief
prohibiting the Executive from engaging in any activity or threatened activity in violation of the
terms of this paragraph and to any other relief available to them.

          13.4. Non-Interference and Non-Competition. During the Executive’s employment by
the Company and its Affiliates and for a period of months equal to the Executive’s Total Number of
Months after such employment ceases, the Executive shall not, directly or indirectly (whether as an
officer, director, owner, employee, partner, or other participant), engage in any Competitive
Business. During this period, the Executive shall not solicit or entice any agent, supplier,
consultant, distributor, contractor, lessors or lessees of the Company or its Affiliates to make
any changes whatsoever in their current relationships with the Company or its Affiliates, and will
not assist any other Person or entity to interfere with or dispute such relationship. In view of
the nature of the Executive’s employment with the Company, the Executive likewise agrees that the
Company and its Affiliates would be irreparably harmed by any

 

 

	 	 	 
	 	 	 
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such interference or competitive
actions in violation of the terms of this paragraph and that the Company
and its Affiliates shall therefore be entitled to preliminary and/or permanent injunctive
relief prohibiting the Executive from engaging in any activity or threatened activity in violation
of the terms of this paragraph and to any other relief available to them.

          13.5. Release. The Executive and the Company agree that if the Executive’s employment
is terminated for any reason other than Cause or death, the Executive and the Company will execute
a release (the “Release”) of all claims substantially in the form attached hereto as
Exhibit A within forty-five (45) days after the applicable Date of Termination and does not revoke
such Release in accordance to the terms thereof. The Executive recognizes and agrees that
notwithstanding any other section to the contrary, this executed Release is required to be made
prior to any payments of any kind under this Agreement. Furthermore, in the event that the
Executive is covered under the Age Discrimination in Employment Act (“ADEA”), the Executive
agrees to execute the ADEA Release of all ADEA claims substantially in the form attached
hereto as Exhibit B as provided in the ADEA Release.

          13.6. Cooperation with Legal Matters.  Executive agrees to cooperate with the Company
and its designated attorneys, representatives and agents in connection with any actual or
threatened judicial, administrative or other legal or equitable proceeding in which the Company is
or may become involved. Upon reasonable notice, Executive agrees to meet with and provide to the
Company or its designated attorneys, representatives or agents all information and knowledge
Executive may have relating to the subject matter of any such proceeding. The Company agrees to
reimburse Executive for any reasonable costs incurred by Executive in providing such cooperation.

     14. Specific Remedies for Executive Breach of the Covenants as outlined in Section 13.
Without limiting the rights and remedies available to the Company, and notwithstanding the rights
of the Executive set forth in Section 11, in the event of any breach by the Executive of the
covenants set forth in Section 13 above, the following actions may be taken by the Company:

          14.1. if the Company believes a breach has occurred, it will deliver to the Executive a
summary of the breach and a demand for explanation or agreement that such breach has occurred; the
Executive shall have twenty (20) business days to respond in writing to this demand, whereupon the
Company will make a decision as to whether the breach has, in fact, occurred; if it is determined
such a breach has occurred, then

          14.2. the Company’s obligation to make any payment or provide any benefits to the Executive
under Sections 5, 6, 7, 8 or 9 of this Agreement shall cease immediately and permanently, which
shall not have any impact whatsoever on the Executive’s continuing obligations under Sections 14.3
and 14.4 below, except, however, the benefits outlined in Sections 5.3.8 and 6.3.8 will continue to
be provided;

          14.3. the Executive shall repay to the Company, within ten (10) days after the Executive
receives written demand therefore, an amount equal to ninety percent (90%) of the payments and
benefits previously received by the Executive under this Agreement, plus interest on such amount at
an annual rate equal to the lesser of ten percent (10%) or the maximum non-usurious rate under
applicable law, from the dates on which such payments and benefits were received to the date of
repayment to the Company; and

          14.4. the Executive shall pay to the Company from time to time, within ten (10) days after the
Executive receives written demand therefore, an amount or amounts equal to the reasonable costs and
expenses (including reasonable attorney’s fees and expenses) incurred by or on behalf of the
Company in enforcing this Section 14 from and after the date on which the Company delivers notice
of such breach to the Executive.

 

 

	 	 	 
	 	 	 
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          14.5. It is the desire and intent of the parties that the provisions of this Section 14 be
enforced to the fullest extent permissible under the applicable laws in each jurisdiction in which
enforcement is sought. Accordingly, if any portion of this Section 14 is adjudicated to be invalid
or unenforceable, this Section 14 shall be deemed curtailed, whether as to time or location, to the
minimum extent required for its validity under applicable law and shall be binding and enforceable
with respect to the Executive as so curtailed, such curtailment to apply only with respect to the
operation of this Section 14 in the jurisdiction in which the such adjudication is made. If a
court in any jurisdiction, in adjudicating the validity of this Section 14, imposes any additional
terms or restrictions with respect to this Section 14, this Section 14 shall be deemed amended to
incorporate such additional terms or restrictions.

          14.6. Executive agrees and acknowledges that Executive has received good and adequate
consideration for the covenants set forth in this Section 14 in the form of employment,
compensation and benefits separate and independent of any payments or potential payments in this
Agreement.

     15. Potential Impact of Accounting Restatements on Certain Bonuses and Profits.

          15.1. If the Company is required to prepare an accounting restatement of the Company’s
consolidated balance sheet or statement of operations affecting any reporting period that
transpires during the term of this Agreement due to the material noncompliance of the Company with
any financial requirements under the securities laws, the Company’s Board will be entitled to
determine whether the noncompliance was the result of knowing, intentional, fraudulent or illegal
conduct by the Executive, and if it so determines, to require the Executive to reimburse the
Company for (i) any bonus or other incentive-based or equity-based compensation received by the
Executive from the Company during the term of this Agreement and (ii) any profits realized from the
sale of securities of the issuer by the Executive during the term of this Agreement.

          15.2. In making the determination whether to seek reimbursement from Executive, the Board will
consider whether any bonus, incentive payment, equity award, or other compensation has been awarded
or received by the Executive during the term of this Agreement and whether such compensation was
based on any financial results or operating metrics that were satisfied as a result of the
Executive’s knowing, intentional, fraudulent or illegal conduct. The Board has sole discretion in
determining whether the Executive’s conduct has or has not met the standard of such forfeiture.

          15.3. If the Board determines that a forfeiture is appropriate, such amounts shall be withheld
from any future amounts owed to the Executive as compensation. The Company may commence legal
action to collect such sums as the Board determines is owed to the Company.

     16. Successors.

          16.1. Assignment by the Executive. This Agreement is personal to the Executive and
without the prior written consent of the Company shall not be assignable by the Executive otherwise
than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of
and be enforceable by the Executive’s legal representatives.

          16.2. Successors and Assigns of the Company. This Agreement shall inure to the
benefit of and be binding upon the Company, its successors and assigns. The Company may not assign
this Agreement to any person or entity (except for a successor described in Section 16.3 below)
without the Executive’s written consent.

          16.3. Assumption. The Company shall require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of the Company to assume expressly and agree to perform this Agreement in
the same manner and to the same extent that the Company would be required to perform it if no such succession had taken
place. As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any
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to its business and/or assets as aforesaid that assumes and agrees to perform this
Agreement by operation of law or otherwise.

     17. Administration Prior to Change in Control. Prior to a Change in Control, the
Compensation Committee shall have full and complete authority to construe and interpret the
provisions of this Agreement, to determine an individual’s entitlement to benefits under this
Agreement, to make in its sole and absolute discretion all determinations contemplated under this
Agreement, to investigate and make factual determinations necessary or advisable to administer or
implement this Agreement. All determinations made under this Agreement by the Compensation
Committee shall be final and binding on all interested persons. Prior to a Change in Control, the
Compensation Committee may delegate responsibilities for the operation and administration of this
Agreement to one or more officers or employees of the Company. The provisions of this Section 17
shall terminate and be of no further force and effect upon the occurrence of a Change in Control.

     18. Delayed Commencement of Certain Payments.

          18.1. Any payment due hereunder that is not considered non-qualified deferred compensation and
is not subject to Section 409A of the Code shall be paid no later than March 15 of the calendar
year following the year in which the Executive’s Date of Termination occurs provided that all other
payment conditions, including the execution of an unrevoked Release, are met.

          18.2. Not withstanding any provision of this Agreement to the contrary, the parties intend
that this Agreement be construed and applied in a manner that will conform its provisions with the
requirements for exemption from Section 409A of the Code or, if and to the extent payments are
subject to Section 409A of the Code, to conform to Section 409A of the Code in order to avoid the
imposition of additional federal income tax pursuant to Section 409A of the Code. Without limiting
the foregoing, in the event that the Executive is a “specified employee” within the contemplation
of Section 409A(a)(2)(B) of the Code at the time that any payment that is subject to Section 409A
of the Code is made on account of the Executive’s Involuntary Termination the Executive’s
separation from service with the Company and its Affiliates within the contemplation of Section
409A(a)(2)(A)(i) of the Code), then in no event shall such payment or the commencement thereof be
made before the six-month anniversary of the Date of Termination or, if earlier, the date of the
Executive’s post-separation death.

          18.3. Any reimbursement payment made under this Agreement that is considered non-qualified
deferred compensation within the meaning of Section 409A of the Code shall be made within the
timing requirements of Treasury Regulation Section 1.409A-3(i)(iv).

     19. Miscellaneous.

          19.1. Governing Law. This Agreement shall be governed by, construed under and
enforced in accordance with the laws of the State of Tennessee without regard to conflicts-of-laws
principles that would require the application of any other law. The captions of this Agreement are
not part of the provisions hereof and shall have no force or effect.

          19.2. Amendment. This Agreement may not be amended, modified, repealed, waived,
extended or discharged except by an agreement in writing of both parties. No person, other than
pursuant to a resolution of the Board or the Compensation Committee, shall have authority on behalf
of the Company to agree to amend, modify, repeal, waive, extend or discharge any provision of this
Agreement or anything in reference thereto.

          19.3. Insurance. The Company may, at its election and for its benefit, insure the
Executive against accidental loss or death, and the Executive shall submit to such physical
examination and supply such information to the insurance company as may be required in connection
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however, that no detailed information concerning the Executive’s physical
examination will be provided to the Company or made available to the Company by the insurance
company.

          19.4. Waiver of Breach. A waiver by the Company or the Executive of a breach of any
provision of this Agreement by the other party shall not operate or be construed as a waiver of any
subsequent breach of the other party.

          19.5. Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

          19.6. Notices. Any notice required or permitted to be given under this Agreement
shall be sufficient in writing and if sent by certified mail or express delivery to the Executive
at his home address or to the Company at Wright Medical Technology, Inc., Attention: General
Counsel, 5677 Airline Road, Arlington, Tennessee 38002, or to such other address as either party
shall notify the other. Notices and communications shall be effective when actually received by
the addressee.

          19.7. Taxes. The Company may withhold from any amounts payable under this Agreement
such federal, state or local taxes as shall be required to be withheld pursuant to any applicable
law or regulation.

          19.8. Entire Agreement. This Agreement contains the entire agreement of the parties
with respect to the subject matter referred to herein and supersedes any and all prior
negotiations, understandings, arrangements, letters of intent, and agreements, whether written or
oral, between the Executive and the Company and its Affiliates, or any of its or their directors,
officers, employees or representatives with respect thereto.

          19.9. No Right of Employment. Nothing in this Agreement shall be construed as giving
the Executive any right to be retained in the employ of the Company or shall interfere in any way
with the right of the Company to terminate the Executive’s employment at any time, with or without
Cause.

          19.10. Unfunded Obligation. The obligations under this Agreement shall be unfunded.
Benefits payable under this Agreement shall be paid from the general assets of the Company. The
Company shall have no obligation to establish any fund or to set aside any assets to provide
benefits under this Agreement.

          19.11. Termination. Notwithstanding anything contained herein, this Agreement shall
automatically terminate and be of no further force and effect and no benefits shall be payable
hereunder in the event that the Company sells or otherwise disposes of any part of the business or
assets of the Company (other than such a sale or disposition which is part of a transaction or
series of transactions which would result in a Change in Control) and as a result of such
transaction, the Executive is offered employment by the buyer of such business or assets (the
“Buyer”) in an executive position with reasonably comparable status, compensation, benefits
and separation agreement and which is consistent with the Executive’s experience and education, but
the Executive declines to accept such offer.

          19.12. Term. The term of this Agreement shall commence from the Effective Date and
shall continue until the third (3rd) anniversary of the Effective Date; provided,
however, that commencing on the second (2nd) anniversary of the Effective Date (and each
anniversary of the Effective Date thereafter), the term of this Agreement shall automatically be
extended for one (1) additional year, unless at least ninety (90) days prior to such date, the
Company or the Executive shall give written notice to the other party that it or he, as the case
may be, does not wish to so extend this Agreement. Notwithstanding the foregoing,
if the Company gives such written notice to the Executive less than one (1) year after a
Change in Control, the term of this Agreement shall be automatically extended until the later of
(a) the date that is one (1) year after the anniversary of the Effective Date that follows such
written notice or (b) the second (2nd) anniversary of the Change in Control Date.

 

 

	 	 	 
	 	 	 
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     IN WITNESS WHEREOF, the parties executed this Agreement as of the Effective Date.

AGREED AND ACCEPTED

	 	 	 	 	 	 
	WRIGHT MEDICAL TECHNOLOGY, INC.	 	FRANK S. BONO
	 
	 	 	 	 
	By:
	 	 	 	 
	 	 	 	 	 
	 
	 	 	Title:  

 

 

	 	 	 
	 	 	 
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EXHIBIT A

MUTUAL RELEASE AGREEMENT

     THIS
MUTUAL RELEASE AGREEMENT (“Release”) dated as of
              
(the “Effective
Date”) is made by and between WRIGHT MEDICAL TECHNOLOGY, INC., a corporation organized and
existing under the laws of the State of Delaware with its principal place of business at 5677
Airline Road, Arlington, Tennessee 38002 (the “Company”), and FRANK S. BONO (the
“Executive”) as provided in the Separation Pay Agreement between the parties.

     The Executive, on behalf of the Executive and the Executive’s heirs, executors,
administrators, successors and assigns, whether herein named or referred to or not, does hereby
release, discharge, and acquit and by these presents does hereby release, acquit, and forever
discharge Company, its successors and assigns, its agents, servants, and employees, its divisions,
subdivisions, and affiliates (collectively, the “Company”), of and from any and all past, present,
and future claims, counterclaims, demands, actions, causes of action, liabilities, damages, costs,
loss of services, expenses, compensation, third-party actions, suits at law or in equity, of every
nature and description, whether known or unknown, suspected or unsuspected, foreseen, or
unforeseen, real or imaginary, actual or potential, and whether arising at law or in equity, under
the common law, state or federal law, or any other law, or otherwise, including, but not limited
to, any claims that have been or might have been asserted as a result of the establishment or
termination of the employer-employee relationship, hereinafter collectively referred to as claims.
It is the intention of the parties hereto to effect a full and final general release of all such
claims. It is expressly understood and agreed that this release and agreement is intended to
cover, and does cover, not only all now known injuries, losses, and damages, but any future
injuries, losses, and damages not now known or anticipated, but which may later develop or be
discovered, including all the effects and consequences thereof.

     Executive does hereby declare that the Executive does understand, covenant, and agree that the
Executive will not make any claims or demands, or file any legal proceedings against Company or
join Company as a party to any claim, demand, or legal proceedings nor shall Executive proceed
against any other party, person, firm, or corporation on the claims described above except as is
necessary in order to enforce the terms and conditions of this Release and the Separation Pay
Agreement.

THE FILING OF ANY CLAIM, DEMAND, OR ANY AND ALL OTHER LEGAL PROCEEDINGS, BY THE EXECUTIVE, AGAINST
COMPANY, SHALL BE DEEMED TO BE A MATERIAL BREACH OF THE TERMS OF THIS AGREEMENT. SUCH BREACH SHALL,
IMMEDIATELY, TERMINATE COMPANY’S DUTY TO PAY ANY FURTHER SUMS TO EXECUTIVE AND SHALL ALSO BIND
EXECUTIVE TO REPAY ANY AND ALL SUMS PAID TO EXECUTIVE PURSUANT TO THE TERMS OF THIS AGREEMENT.
ADDITIONALLY, EXECUTIVE SHALL INDEMNIFY AND HOLD HARMLESS COMPANY FROM ANY AND ALL JUDGMENTS,
COSTS, EXPENSES, OR ATTORNEY FEES WHATSOEVER ARISING ON ACCOUNT OF THE FILING OF ANY SUCH CLAIM,
DEMAND, OR OTHER LEGAL PROCEEDINGS BY THE EXECUTIVE.

     It is further understood and agreed that the acceptance of the consideration more fully
described in the Separation Pay Agreement between the parties is in full accord and satisfaction of
any obligations, claims, and/or disputes that Executive may have with Company.

     And the parties hereby declare, understand, covenant, and agree that the terms of the
Separation Pay Agreement, and the amount stated therein, are the sole consideration for this
release and agreement and that the parties voluntarily accept said consideration for the purpose of
making a full and final compromise, adjustment and settlement of all claims for injuries, losses,
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result, from said claims.

     Except for any claim under Sections 13, 14 or 15 of the Separation Pay Agreement, the Company,
on behalf of itself, its agents, servants, and employees, its divisions, subdivisions, and
affiliates (collectively, the “Company”), successors and assigns, whether herein named or referred
to or not, does hereby release, discharge, and acquit and by these presents does hereby release,
acquit, and forever discharge Executive, the Executive’s heirs, executors, administrators,
successors and assigns, of and from any and all past, present, and future claims, counterclaims,
demands, actions, causes of action, liabilities, damages, costs, loss of services, expenses,
compensation, third-party actions, suits at law or in equity, of every nature and description,
whether known or unknown, suspected or unsuspected, foreseen, or unforeseen, real or imaginary,
actual or potential, and whether arising at law or in equity, under the common law, state or
federal law, or any other law, or otherwise, including, but not limited to, any claims that have
been or might have been asserted as a result of the establishment or termination of the
employer-employee relationship, hereinafter collectively referred to as claims. It is the
intention of the parties hereto to effect a full and final general release of all such claims. It
is expressly understood and agreed that this release and agreement is intended to cover, and does
cover, not only all now known injuries, losses, and damages, but any future injuries, losses, and
damages not now known or anticipated, but which may later develop or be discovered, including all
the effects and consequences thereof.

     Company does hereby declare that the Company does understand, covenant, and agree that the
Company will not make any claims or demands, or file any legal proceedings against Executive or
join Executive as a party to any claim, demand, or legal proceedings nor shall Company proceed
against any other party, person, firm, or corporation on the claims described above except as is
necessary in order to enforce the terms and conditions of this Release and the Separation Pay
Agreement.

THE FILING OF ANY CLAIM, DEMAND, OR ANY AND ALL OTHER LEGAL PROCEEDINGS, BY THE COMPANY, AGAINST
EXECUTIVE, SHALL BE DEEMED TO BE A MATERIAL BREACH OF THE TERMS OF THIS AGREEMENT. SUCH BREACH
SHALL, IMMEDIATELY, TERMINATE EXECUTIVE’S DUTY TO COMPLY WITH THE NON-SOLICITATION,
NON-INTERFERENCE, AND NON-COMPETITION COVENANTS OF THE SEPARATION PAY AGREEMENT BETWEEN THE
PARTIES. ADDITIONALLY, COMPANY SHALL INDEMNIFY AND HOLD HARMLESS EXECUTIVE FROM ANY AND ALL
JUDGMENTS, COSTS, EXPENSES, OR ATTORNEY FEES WHATSOEVER ARISING ON ACCOUNT OF THE FILING OF ANY
SUCH CLAIM, DEMAND, OR OTHER LEGAL PROCEEDINGS BY THE COMPANY.

     It is further understood and agreed that the acceptance of the consideration more fully
described in the Separation Pay Agreement between the parties is in full accord and satisfaction of
any obligations, claims, and/or disputes that Company may have with Executive.

     It is further understood and agreed that this is the full and complete understanding of the
parties, that it is the integrated memorial of their agreement and that there are no other written
or oral understandings, agreements, covenants, promises, or arrangements, directly or indirectly
connected with this release, that are not incorporated herein. The terms of this release are
contractual and are not mere recitals.

 

 

	 	 	 
	 	 	 
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     Notwithstanding the foregoing, nothing in this Release shall release either party from
obligations resulting from the Separation Pay Agreement nor prohibit either party from seeking the
enforcement of the Separation Pay Agreement.

     IN WITNESS WHEREOF, the parties executed this Release as of the Effective Date.

AGREED AND ACCEPTED

	 	 	 	 	 	 
	WRIGHT MEDICAL TECHNOLOGY, INC.	 	FRANK S. BONO
	 
	 	 	 	 
	By:
	 	 	 	 
	 	 	 	 	 
	 
	 	 	Title:  

 

 

	 	 	 
	 	 	 
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EXHIBIT B

ADEA RELEASE AND AGREEMENT

     As a material inducement to Wright Medical Technology, Inc. (hereinafter referred to as
“Wright” or “Employer”) to enter into this ADEA Release and Agreement (the “Release or “Agreement”)
with FRANK S. BONO (hereinafter referred to as “Executive”) (for Executive, Executive’s heirs,
executors, administrators and assigns), Executive hereby unconditionally releases and forever
discharges Wright and each of the Wright’s stockholders, predecessors, successors, assigns, agents,
directors, officers, employees, representatives, attorneys, divisions, subsidiaries, affiliates and
all persons acting by, through, under, or in concert with any of them from any and all charges,
complaints, claims, liabilities, obligations, promises, agreements, controversies, damages,
actions, causes of action, suits, rights, demands, costs, losses, debts and expenses (including
attorney’s fees and costs actually incurred) of any nature whatsoever, known or unknown, suspected
or unsuspected, including, but not limited to, rights, under the Age Discrimination in Employment
Act of 1967, as amended from time to time, and other federal, state, or local laws prohibiting
discrimination, any claims the employee may have with regard to Executive’s hiring, employment, or
electing the re-employment program and termination of employment claims growing out of any legal
restrictions on Wright’s right to terminate its employees (“Claim” or Claims”), which the
Executive now has, owns or holds, or claims to have owned or held, or which the Executive at any
time hereinafter may have owned or held or claimed to have owned or held against Wright.

     To comply with the Older Workers Benefit Protection Act of 1990, as amended from time to time,
the Release and Agreement has advised Executive of the legal requirements of this Act and fully
incorporates the legal requirements by reference into this Agreement as follows:

	 	a.	 	This Agreement is written in layman’s terms, and the Executive understands and
comprehends its terms;
	 
	 	b.	 	Executive has been advised of Executive’s rights to consult an attorney to
review the Agreement;
	 
	 	c.	 	Executive does not waive any rights or claims that may arise after the date the
Release is executed;
	 
	 	d.	 	Executive is receiving consideration beyond anything of value to which he
already is entitled;
	 
	 	e.	 	Executive has been given a reasonable period of time to consider this Agreement
(45 days).

As consideration for this Release, Wright agrees to provide the items listed in the Separation Pay
Agreement dated April 1, 2009. The Executive enters into this Release with full knowledge of its
contents and enters into this Agreement voluntarily.

 

 

	 	 	 
	 	 	 
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AGREED AND ACCEPTED

	 	 	 	 	 	 	 	 
	EXECUTIVE:	 	WRIGHT MEDICAL TECHNOLOGY, INC.
	 
	 	 	 	 	 	 
	I acknowledge that I fully understand and
agree that this Agreement may be pleaded
by Wright Medical Technology, Inc. as a
complete defense to any claim which
hereafter may be asserted by me or a claim
against Wright Medical Technology, Inc.
for or on account of any matter or thing
whatsoever arising out of the employment
relationship or my termination from active
employment.
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	 

	 	 	 	 
	FRANK S. BONO

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SWORN TO AND SUBSCRIBED, before me, a
Notary Public, in my presence this
                     day of                     , 2009	 	SWORN TO AND SUBSCRIBED, before me, a
Notary Public, in my presence this
                     day of                     , 2009
	 
	 
	 	 	 	 	 	 
	 	 	 
	Notary Public	 	Notary Public
	 
	 	 	 	 	 	 
	County of __________________________	 	Shelby County
Tennessee
	 	 	
	State
of _____________________________
	 	 	 	 	 	 
	 
	My Commission Expires:
__________________	 	My Commission Expires: ____________________

NOTE: EXECUTIVE IS HEREBY ADVISED OF HIS OR HER RIGHT TO RESCIND AND NULLIFY THIS AGREEMENT, WHICH
RIGHT MUST BE EXERCISED, IF AT ALL, WITHIN SEVEN (7) DAYS OF THE DATE OF EXECUTIVE’S SIGNATURE.
EXECUTIVE MUST REVOKE RELEASE BY LETTER TO WRIGHT MEDICAL TECHNOLOGY, INC., ATTENTION: GENERAL
COUNSEL, 5677 AIRLINE ROAD, ARLINGTON, TN 38002, WITHIN SEVEN (7) DAYS. NO CONSIDERATION SHALL BE
CONVEYED UNTIL SUCH TIME PERIOD HAS EXPIRED.

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