Document:

Transition Agreement

 Exhibit 10.39 
 TRANSITION AGREEMENT 
 (this “Transition Agreement”)

 by and between 

Sirona Dental GmbH, Wasserfeldstraße 30, A-5020 Salzburg, Austria 
 (hereinafter the “Company”), 
 Sirona Dental Systems, Inc., 30 -30 47th Avenue,
Suite 500, Long Island City, NY 11101, USA 
 (hereinafter the “Guarantor”) 

and 
 Mr Jost Fischer, Buchenweg
16, 83098 Brannenburg, Germany 
 (hereinafter “Fischer”) 

Preliminary Remarks 
 The
Company and Fischer are parties to an amended and restated service agreement (Geschäftsführer-Dienstvertrag) dated 2 December 2008, as amended by a Supplement to Service Agreement date 15 November 2010 (as supplemented,
the “Service Agreement”). 
 In addition to his post as managing director of the Company, Fischer holds various other positions
in different corporate bodies of Guarantor and its direct and indirect subsidiaries (the “Sirona Group Companies”), including the position as Chairman & CEO of Guarantor (collectively the “Positions” and
each a “Position”). 
 Fischer desires to resign the Positions and terminate the Service Agreement other than for Employee
Cause (as defined in the Service Agreement) and the Company desires to accept such resignation and termination, on the terms and subject to the conditions described in this Transition Agreement. 

The Guarantor wishes and the Company and Fischer agree to guarantee the obligations of the Company vis-à-vis Fischer, inter alia, under this
Transition Agreement. 

 Therefore, in consideration of these preliminary remarks, the Guarantor, the Company and Fischer hereby
agree as follows: 
  

	1.	Resignation. Fischer and the Company acknowledge that (i) Fischer resignation from the Positions will be effective on the date of the next annual general
meeting of Guarantor’s shareholders (which is currently scheduled for February 20, 2013) (the “Positions Separation Date”) and (ii) the termination of Fischer’s employment with the Sirona Group Companies will be
effective on February 28, 2013, 24.00 hours Central European Time (the “Separation Date”). As of the Positions Separation Date, Fischer will cease to be a officer, director or trustee of any of the Sirona Group Companies, and
will no longer be required to fulfill any of the duties and responsibilities associated with the Positions and as of the Seperation Date, Fischer will cease to be an employee of any of the Sirona Group Companies. From and after the Positions
Separation Date, Fischer will no longer hold himself out to the public as an officer, director or trustee of any of the Sirona Group Companies or act on behalf of any of the Sirona Group Companies. From and after the Separation Date, Fischer will
not maintain an office or physical presence at any of the Sirona Group Company locations. The Company and the Guarantor shall procure that, as soon as possible after the Positions Separation Date, Fischer’s resignation from the Positions will
be registered in the relevant commercial, trade or similar official registers and also be published on the websites of the Sirona Group Companies. 

  

	2.	Severance. Fischer shall be entitled to receive a severance payment in an amount equal to EUR 1,933,125, which represents 1.5 times the sum of
(i) Fischer’s annual base salary pursuant to § 2 para. 1 of the Service Agreement, (ii) 100% of the target bonus of Fischer pursuant to § 2 para. 2 of the Service Agreement and (iii) 100% of the monetary value
of Fischer’s health and welfare benefits, in each case as applicable for the year 2012 (the “Severance Payment”). 

 The Severance Payment shall be due and payable as follows: 
 (i) An amount equal to
one third (1/3) of the Severance Payment shall be due and payable without undue delay, at the latest 10 days after the Separation Date. 
 (ii) An amount equal to the remaining two thirds (2/3) of the Severance Payment shall be due and payable on December 31, 2013. 

In addition, if during the period beginning on the Separation Date and ending 24 months thereafter (the “End Date”),
Fischer does not engage in any Competition (as defined below) which would have been prohibited had such Competition occurred during the Noncompete Period (as defined below), then on the End Date the Company shall payto Fischer an additional amount
equal to one third (1/3) of the Severance Payment, i.e. EUR 644,375. For the avoidance of doubt: The decision not to engage in any Competition during the second half of such 24 months’ period shall be at Fischer’s sole and free
discretion. 

  
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	3.	Unpaid Salary, Pro Rata Bonus and Accrued Vacation. In addition, Fischer will receive his unpaid salary and accrued vacation through the Separation Date which
shall be due and payable without undue delay, at the latest 10 days after the Separation Date. The amount payable as compensation for the accrued vacation (which as of the day hereof amounts to 110 days) shall be determined in accordance with
Austrian law and calculated as follows: Number of accrued vacation days divided by 220 multiplied by EUR 1,280,000. Further, Mr. Fischer shall be entitled to receive the pro rata portion of his annual bonus of for the current financial
year which started on October 1, 2012 through the Separation Date (i.e., 5/12 of the full annual bonus) subject to the terms of the executive bonus plan as administered by the Guarantor’s compensation committee. Such pro rata bonus shall
be due and payable in accordance with past practice in November 2013 if and when the exact bonus amount has been determined on the basis of the consolidated financial statements for the financial year ending on September 30, 2013.

  

	4.	Corporate Apartment. The Company will continue to make available to Fischer the corporate apartment currently leased by the Company for Fischer’s use at the
Company’s costs until the expiration of the current lease term, without any extensions thereof. 

  

	5.	Automobile. The Company will continue make available to Fischer the automobile currently leased by the Company for Fischer’s use at the Company’s costs
until May 2015 (i.e., the current lease term plus a one year extension to be entered into with the lessor in November 2012). 

  

	6.	Tax Advice. Until the End Date, the Company will reimburse Fischer for tax advice on the same terms and conditions as the Company currently provides such
reimbursement. 

  

	7.	Office Assistant. Until the End Date, the Company will make an office assistant, if possible Ms. Michaela Streinig who currently works part-time, in the
Company’s Austria offices available to Fischer for up to 10 hours per week. 

  

	8.	Noncompetition. During the Noncompete Period, Fischer shall not engage in any Competition. The “Noncompete Period” shall mean a period of one
year after the Separation Date. In consideration therefor, Fischer shall receive a compensation payment in an amount equal to EUR 1,288,750 on December 31, 2013 (the “Compensation”). If and to the extent a payment is made
pursuant to Clause 2 (ii), such Compensation is already included in, and therefore satisfied by payment of, the respective amount of the payment pursuant to Clause 2 (ii). 

  
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 “Competition” means (i) the direct or indirect holding of shares,
partnership interests, silent partnerships, nomineeships/trusts, sub-participations or options or other instruments being convertible into any of the aforementioned (collectively “Interests”) in a Competitor, or (ii) the
rendering of any service to any Competitor (whether as a director, officer, manager, supervisor, employee, agent, consultant/free-lancer or otherwise, but excluding any service on behalf of a third party) or making otherwise available any material
know-how or material trade secrets of the Sirona Group Companies to a Competitor. For purposes of clause (i) above, Competition shall not include the holding of, only for investment purposes, Interests of less than 15% of the fully diluted
share capital or voting rights in a Competitor. 
 “Competitor” means any company or group of companies (whereby
in case of financial investors (e.g. private equity sponsors) the top holding company of the respective operational portfolio shall be decisive) which, at the begin of Fischer’s activities, engages in any of the business segments in which the
Sirona Group Companies are active at the Separation Date. 
 In case of a breach of this Clause 8, Fischer shall repay the
whole severance amount paid to him according to Clause 2, provided the Company has notified Fischer in writing about the (alleged) breach and Fischer has not remedied such breach by discontinuing the (alleged) Competition within four
(4) weeks following receipt of the notification (or discontinuing the (alleged) Competition within four (4) weeks following receipt of the notification would not effectively remedy such breach). Further claims against Fischer, except for
those for omission (Unterlassung) of such competition (including by way of injunction), shall be excluded. The Company shall not be entitled to any set-off or reduction of the Compensation or any other amount payable by it under this
Transition Agreement (e.g. with salary earned by Fischer during such period). 
  

	9.	Vesting of Incentive Equity. All stock options and restricted stock units (collectively, “Incentive Equity”) currently held by Fischer which is
not otherwise fully vested as of the Separation Date shall continue to vest in accordance with the terms and conditions of such Incentive Equity, subject to the following modifications: 

 

	 	(a)	rather than vesting being conditioned on continued employment with the Company, such vesting shall be conditioned on Fischer not engaging in any Competition which would
have been prohibited had such Competition occurred during the Noncompete Period; and 

  

	 	(b)	if during the period beginning on the Separation Date and ending on November 22, 2015, Fischer does not engage in any Competition which would have been prohibited
had such Competition occurred during the Noncompete Period, then the period permitted for exercising any stock options included in the Incentive Equity shall be extended until November 22, 2016. 

  
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	10.	Confidential Information. Fischer shall keep strictly confidential any and all confidential activities or business affairs of the Company and its affiliated
entities and business secrets he has received knowledge about during the course of his activities, irrespective of the source of such knowledge, vis-à-vis third parties and other employees of the Company who are not entitled to receive such
confidential information. 

  

	11.	Retention of Firm’s Property. Upon the Separation Date, Fischer shall return to the Company without undue delay any documents, letters, drafts and similar
documents including any copies thereof, which refer to the Company and are still in his possession. Fischer does not have any right of retention with respect to the aforementioned documents and things. 

 

	12.	D & O Insurance. The Company and the Guarantor shall maintain in effect a directors’ and officers’ liability insurance in the scope existing at the
Separation Date for Fischer’s benefit to cover (potential) claims against Fischer arising out of or in connection with the Positions for as long as any such (potential) claims may be made. 

 

	13.	Mutual Release. Except for the respective claims and obligations set forth in this Transition Agreement, (i) Fischer hereby irrevocably, unconditionally and
fully releases and waives (erlässt) any and all present and future claims, known or unknown, he may have against the Company, the Guarantor or any other Sirona Group Company arising out of or in connection with the Service Agreement or the
Positions and (ii) the Company and the Guarantor hereby irrevocably, unconditionally and fully release and waive (erlassen), and procure that all other Sirona Group Companies will also irrevocably, unconditionally and fully release and waive,
any and all present and future claims, known or unknown, they may have against Fischer arising out of or in connection with the Service Agreement and/or the Positions. 

 

	14.	Guarantee. The Guarantor hereby irrevocably and unconditionally guarantees by the way of an independent guaranty vis-à-vis Fischer all obligations of the
Sirona Group Companies under this Transition Agreement as amended from time to time. The venue for all disputes between Fischer and the Guarantor arising out of or in connection with this Transition Agreement shall be Salzburg. However, Fischer
shall also be entitled to bring an action against the Guarantor at his general venue. 

  
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	15.	Miscellaneous. 

  

	 	(a)	The payment of severance and the provision of other benefits hereunder will not be considered compensation for purposes of any employee benefit plan, program, policy or
arrangement maintained or hereafter established by the Company. 

  

	 	(b)	This Transition Agreement contains all agreements amongst the parties regarding the subject matter hereof and supersedes § 9 of the Service Agreement. There
are no side agreements. 

  

	 	(c)	In case of Fischer’s death, his heirs shall be entitled to receive the amounts payable to Fischer under this Transition Agreement. 

 

	 	(d)	Modifications of, or amendments to, this Transition Agreement shall be made in writing to be effective. The same applies for this clause. 

 

	 	(e)	The parties may comply with the requirement of written form as agreed in this Transition Agreement by using fax, telex or telecopy, if the author of the document is
identifiable from the document. 

  

	 	(f)	Should any provision of this Transition Agreement be or become invalid, this does in no way influence the validity of the remaining provisions. The parties undertake to
agree without undue delay a provision instead of the invalid provision which comes as nearest to the economic purpose of the invalid provision and the purpose the parties have intended. 

 

	 	(g)	This Transition Agreement is governed by the laws of Austria. 

 November 15, 2012 
  

					
	 /s/    Simone
Blank        
	 		 	 /s/    Jost
Fischer        

			
	Sirona Dental GmbH	 		 	Jost Fischer

  

	
	 /s/    Jonathan
Friedman        

	
	Sirona Dental Systems, Inc.

  
 6Employer Contract

 Exhibit 10.40 

 
 

 
 VICE PRESIDENT EMPLOYMENT CONTRACT 

SIRONA DENTAL SERVICES GMBH – RAINER BERTHAN 
 20 February 2012 
 EMPLOYMENT CONTRACT 

GESCHAEFTSFUEHRER-DIENSTVERTRAG 
  

			
	between
		
	Sirona Dental Services GmbH	  	
	Fabrikstr. 31	  	
	64625 Bensheim	  	
	Germany	  	
		
		  	- hereinafter “Company” -
	
	and
		
	Rainer Berthan	  	
	Surmannsholt 9	  	
	58452 Witten	  	
	Germany	  	
		
		  	- hereinafter “Rainer Berthan” -

 § 1 
 Basis of Employment 
  

	1.	Rainer Rainer Berthan will join the management of the Company as Vice President with effect as of 01 September 2012 or any later date to be agreed between the
parties. 

  

	2.	Rainer Berthan will become a Geschaeftsfuehrer of the Company, Sirona Dental Systems GmbH, Sirona Immobilien GmbH and Sirona Verwaltungs GmbH (together, the
“Bensheim Companies”). In his role as Vice President and Geschaeftsfuehrer Rainer Berthan shall have such duties and responsibilities as are appropriate for directing and managing the Company’s four Bensheim business divisions
CAD/CAM, Imaging, Treatment Centers, Instruments and local support functions (i.e. logistics and purchasing). In his capacity as Vice President and Geschaeftsfuehrer, Rainer Berthan shall report directly to the President of Sirona Dental Systems,
Inc. (the “President”). 

  

	3.	Rainer Berthan represents the Bensheim Companies in and out of court acting jointly with another Geschaeftsfuehrer or an attorney in fact (Prokurist) of the
respective Bensheim Company. 

  
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 VICE PRESIDENT EMPLOYMENT CONTRACT 

SIRONA DENTAL SERVICES GMBH – RAINER BERTHAN 
 20 February 2012 
  
  

	4.	Without limitation to the provisions of this agreement, the duties, powers and responsibilities of Rainer Berthan are governed by the articles of association of the
Company, as amended from time to time, by the applicable laws, in particular the Limited Liability Statute, by the by-laws, as amended from time to time, and the instructions of the Company. 

 

	5.	The Company reserves the right to appoint additional Vice Presidents and Geschaeftsfuehrer and to change the representation policy at any time.

  

	6.	Rainer Berthan shall perform the duties incumbent on him with the due care and diligence of a prudent businessman. 

§ 2 

Compensation 
  

	1.	The base salary of Rainer Berthan amounts to EUR 220,000 per business year of the Company payable in twelve equal monthly instalments at the end of each month.

  

	2.	In addition, Rainer Berthan is eligible to receive a bonus in each business year (October 1 – September 30). The total bonus will comprise of the following two
components: 

  

	 	(i)	The first part of the total bonus will be determined in accordance with Sirona Dental Systems, Inc.’s bonus plan, as amended from time to time. Such partial bonus
shall amount to 45% of Rainer Berthan’s base salary (i.e. EUR 100,000 in the first year) in case of 100% achievement of the objectives and can rise up to a maximum of 63.5% of Rainer Berthan’s base salary (i.e. EUR 140,000 in the first
year). 

  

	 	(ii)	The second part of the total bonus will be based on Rainer Berthan’s performance vis-a-vis objective performance criteria to be determined on a yearly basis. Such
partial bonus shall amount to EUR 40,000 in case of 100% achievement of the objective performance criteria and can rise up to a maximum of EUR 55,000. 

  

	3.	Rainer Berthan’s bonus will be guaranteed at EUR 140,000 for the first year of his employment – in case of overperformance para. 2 will apply. The bonus will
be paid out in accordance with the Company’s bonus pay schedule (currently in December of each calendar year), as amended from time to time. 

  

	4.	With effect as of the first day of his employment with the Company, Rainer Berthan will be granted 18,000 options to buy common stock of and 12,000 restricted stock
units of Sirona Dental Systems, Inc. In addition, Rainer Berthan will be eligible for further grants of options and/or restricted stock units within the Company’s yearly grant program in the following business years of the Company. All grants
shall comply with the respective plans and policies, as amended from time to time, of Sirona Dental Systems, Inc. Following the respective vesting dates, Rainer Berthan will be entitled to exercise all grants cashlessly. 

 

	5.	Immediate vesting of the options and restricted stock units granted shall occur in the event that Sirona Dental Systems, Inc. has a change in control.
“Control” is defined as any event or circumstance that would require disclosure under Item 5.01 of S.E.C., Form 8-K or any comparable requirement of the Securities and Exchange Commission. 

 

	6.	Any services of Rainer Berthan including overtime are compensated by the remuneration as described above. Rainer Berthan is obliged to work longer than the usual
working hours, if it is necessary for the achievement of the business objectives of the Company. 

  
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 VICE PRESIDENT EMPLOYMENT CONTRACT 

SIRONA DENTAL SERVICES GMBH – RAINER BERTHAN 
 20 February 2012 
  
  

	7.	In addition, the Company will pay to Rainer Berthan the legally required employer contributions with respect to healthcare, pension and unemployment insurance, which
have to be borne in equal shares by Rainer Berthan and the Company on the basis of the applicable laws. If Rainer Berthan is exempted from the healthcare insurance obligation, the Company will pay 50% of his contributions to a private healthcare
insurance up to the amount which equals 50% of the contribution to the statutory healthcare insurance. 

  

	8.	Compensation claims may not be assigned or pledged without the prior consent of the Company. 

 

	9.	Rainer Berthan is entitled to request a company car in accordance with the Company’s car policy. Such car can be used for private purposes.

  

	10.	The Company shall pay the door-to-door transportation costs for the personal belongings, the costs for packing and unpacking and the costs for adequate insurance of the
goods moved for Rainer Berthan and his family. The transport shall be carried out by a transportation provider selected by the Company. The Company shall further pay the real estate agent’s fees incurred for renting an house/apartment for
Rainer Berthan and his family in the area of Bensheim. Rainer Berthan undertakes to repay the above mentioned amounts paid by the Company, if the employment relationship is terminated earlier than 36 months from the beginning of the contract. The
obligation to repay is reduced by 1/36 for every month of employment. The obligation to repay shall not apply if the contract is terminated by the Company. 

 

	11.	The Company shall pay a preventive medical chep-up for Rainer Berthan every second year of employment. The provider for the medical check-up will be selected by the
Company. 

 § 3 
 Expenses 
 The Company shall reimburse any reasonable expenses in connection
with the services for the Company on presentation of the respective receipts. The respective policies of the Company, in particular the travel policy, will apply. 
 § 4 
 Insurances 

 

	1.	The Company will enter into a death and disability insurance in favour of Rainer Berthan with the cover amount of EUR 540,000 in case of death and disability,
respectively. 

  

	2.	The Company will provide for reasonable legal protection against civil, criminal and public law claims of third parties in connection with the services rendered by
Rainer Berthan under this agreement (D&O insurance). 

 § 5 

Vacation and Holiday 
 Rainer Berthan is entitled to vacation of 30 business days each year. Rainer Berthan shall schedule vacation after consultation with the President so as not to interfere with the performance of his
duties. 

  
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 VICE PRESIDENT EMPLOYMENT CONTRACT 

SIRONA DENTAL SERVICES GMBH – RAINER BERTHAN 
 20 February 2012 
  
 § 6 
 Illness 

 

	1.	Rainer Berthan has to inform the Company without undue delay about any illness, its reasons and its expected duration. In case of illness, Rainer Berthan has to present
to the Company upon its request a medical attestation regarding the disability and its expected duration. 

  

	2.	In case of any illness, the Company shall continue to pay to Rainer Berthan for a period of up to six weeks his contractual compensation reduced by any amounts received
by Rainer Berthan from any statutory or private insurance. 

 § 7 

Additional Activities 
  

	1.	Rainer Berthan will devote his skills and knowledge only to the Company. During the term of this Agreement, Rainer Berthan is not allowed to engage in any additional
activities without the prior written consent of the Company. Any publications and lectures, which refer to the business of the Company but are not in the best interest of the Company, do require the prior written consent of the Company.

  

	2.	Rainer Berthan shall not actively participate in any company or engage in any own business without the prior written consent of the Company. Such consent is not
required in the event of the acquisition of interests or shares of a publicly listed company for the purpose of capital investment without influence on business decisions. 

§ 8 

Confidentiality, Non-competition 
  

	1.	Rainer Berthan shall keep strictly confidential any and all confidential information regarding the Company and its affiliated entities, irrespective of the source of
such knowledge, vis-à-vis third parties and other employees of the Company who are not entitled to receive such confidential information. The confidentiality covenant shall not apply, if and to the extent that the transfer of the information
is necessary for the due performance of Rainer Berthan’s duties or if Rainer Berthan has obtained the prior written consent of the Company. This confidentiality obligation shall remain in force after the termination of this agreement.

  

	2.	Rainer Berthan shall not act as member of supervisory, advisory or similar boards of any companies which are not affiliated with the Company without the prior written
consent of the Company. 

  

	3.	Rainer Berthan shall not, during the course of his employment with the Company, directly or indirectly be employed by, engaged in or participate in the ownership,
management, operation or control of, or act in any advisory or other capacity for, any competing entity. 

§ 9 

Term and Termination 
  

	1.	This agreement shall be entered into for an indefinite period of time. Each party may terminate this agreement upon fifteen month prior notice with effect as of the end
of the calendar quarter. 

  

	2.	Any termination notice has to be made in writing. 

  

	4.	The Company is entitled to release Rainer Berthan from work at any time but the Company will continue to pay the compensation owed to Rainer Berthan in accordance with
this agreement 

  
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 VICE PRESIDENT EMPLOYMENT CONTRACT 

SIRONA DENTAL SERVICES GMBH – RAINER BERTHAN 
 20 February 2012 
  
 § 10 
 Retention of Documents 

Upon termination of Rainer Berthans employment or upon release of work, Rainer Berthan shall return to the Company without undue delay any
business documents, letters, drafts and similar documents and copies thereof referring to the Company. Rainer Berthan does not have any right of retention with respect to the aforementioned documents. 

§ 11 

Miscellaneous 
  

	1.	There exist no additional agreements between the parties. 

  

	2.	Modifications of, or amendments to, this agreement shall be made in writing to be effective. 

 

	3.	The parties comply with the requirement of written form by using fax or telecopy, if the author of the document is identifiable. 

 

	4.	Should any provisions of this agreement be or become invalid, this does in no way influence the validity of the remaining provisions. Any invalid provision shall be
deemed replaced by an adequate valid term nearest to what the parties wanted or would have wanted taking into account the purpose of the agreement. 

  

	5.	This agreement is governed by Germany law. 

Date: 20 February 2012 
  

					
	Sirona Dental Services GmbH	 		 	
			
	 /s/ Jeff T. Slovin
	 		 	 /s/ Dr. Tom Redlich

	Jeff T. Slovin	 		 	Dr. Tom Redlich
	President	 		 	General Counsel E/AP
			
	Rainer Berthan	 		 	
			
	 /s/ Rainer Berthan
	 		 	

  
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