Form 10-Q ZIMMER BIOMET HOLDINGS, For: Jun 30
Exhibit 10.4
Zahlerweg 4
CH-6300 Zug
Phone +41 (0)58 854 90 00
www.zimmerbiomet.com
Employment Agreement
between
Zimmer GmbH
Zahlerweg 4, 6300 Zug
and
Mr. Wilfred van Zuilen
(hereinafter referred as “you” or “Mr. van Zuilen“)
will be hired in terms of Art. 319ff. OR.
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1. |
Hire date, position and work location |
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1.2 |
The position will be based in Zug, Switzerland. |
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2. |
Contract duration, probationary period and notice period |
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2.1 |
This Agreement shall be valid for an indefinite time period. |
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2.2 |
The probationary period shall be omitted. The employment may be terminated by either party with a notice period of 6 months from the end of the month in which the notice is given. |
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2.3 |
In this role, you will be eligible to participate in the company’s Executive Severance Plan, as amended. As an eligible Leadership Team member, in the event of your involuntary separation without Cause as defined under the plan, your severance benefit offer would include the sum of your final base salary and final target bonus. Payment would be made in lump-sum form, less applicable tax withholdings, subject to your entering into a general release in the form provided by the Company. There would be no duplication of benefits provided under the Change in Control (“CIC”) Severance Agreement or otherwise. Your continued eligibility for participation in this plan will be in accordance with terms of the plan as defined and administered by the company, and taking into account your then-current job Z-Grade, role and responsibilities in the company. |
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2.4 |
In your role, you will be eligible to receive a CIC Severance Agreement, subject to execution of the enclosed Confidentiality. Non-Competition and Non-Solicitation Agreement. The agreement would provide you with certain severance benefits following a change in control of Zimmer Biomet Holdings, Inc. and related terminating of your |
Exhibit 10.4
employment. Once you return the Confidentiality, Non-Competition, and Non-Solicitation Agreement, we will prepare the CIC Severance Agreement along with a cover memo outlining the benefits under the agreement. Your continued eligibility for potential CIC severance benefits in the event of a change in control would be in accordance with terms of the agreement.
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3. |
Salary and bonus |
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3.1 |
Your annual base salary amounts to CHF 520,000 gross. It will be paid in twelve monthly installments. Remittance is made at the end of each month via bank transfer to a Swiss Bank Account, taking into account the deductions applying. |
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3.2 |
You will be eligible to participate in the 2021 Executive Performance Incentive Plan (“EPIP”) upon your hire date. Your target bonus will be eighty percent (80%) of your eligible earnings (which will consist primarily of base salary payments) for the year. Pay-out will depend on actual year-end results for the established performance measures. Payment will occur in or around March of the year following the bonus period after annual performance measures upon which the bonus is based have been determined. You must remain employed by the Zimmer Biomet Group at the time of bonus pay out to receive the bonus. |
You will participate in the 2021 EPIP based upon the corporate metric group and an individual bonus component. Your bonus will be determined based 90% on the corporate metric and 10% on evaluated accomplishment of your goals and objectives. Your 2021 bonus will be prorated for a partial year of service by applying the earned bonus percentage to your eligible Zimmer Biomet Group earnings for the year.
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4. |
Long Term Incentive Plan (LTI) Plan Award |
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4.1 |
You will be eligible to be considered for participation in the Zimmer Biomet Holdings Inc. equity award program. |
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4.2 |
We anticipate that the Company’s 2022 LTI Plan grants will have two components: |
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Stock options and |
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Performance-based Restricted Stock Units (“PRSUs”) |
The LTI structure currently offers participants a diversified award of 50% stock options and 50% PRSUs that can provide more consistent value than an award of stock options alone. Further, we believe this structure assists the Company in remaining competitive within the global labor market and creates a compelling and valuable long-term incentive for participants. For 2022, we anticipate two performance metrics for the PRSUs, and that pay-outs will be determined based 50% on the Company’s relative total shareholder return against the S&P 500 Health Care Index constituents and 50% on the Company’s constant currency revenue growth. We will provide additional details and information on this PRSU design in our around February 2022.
We will review the performance metrics, equity award types and value mix in conjunction with the 2022 annual grant and will communicate when the Compensation and Management Development Committee of the Company’s Board of Directors (“Compensation Committee”) has made these determinations. Thereafter, the applicable performance metrics, equity award types and value mix will be subject to annual review and approval by the Compensation Committee.
Exhibit 10.4
For 2022, your estimated LTI grant date fair value in this role will be approximately $1,300,000 (USD). We anticipate the grant date of the 2022 award will be in or around February 2022, subject to the Compensation Committee’s approval.
LTI grant values are based upon our compensation philosophy, which is reviewed annually by the Compensation Committee and adjusted as warranted. Please keep in mind that your job responsibilities, performance against your goals and objectives, the overall financial results of the Company and peer group / market compensation practices also impact LTI grant values each year. All eligible equity awards are made in USD.
All equity awards are subject to Compensation Committee approval and other terms and conditions of the 2009 Stock Incentive Plan, as amended from time to time, award agreements, and your execution of a non-compete agreement in the form provided by the Company.
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5. |
Company Car and Cash-Car Allowance |
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5.1 |
You will be entitled for a company car or car allowance, according to the European Car Policy |
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6. |
Working time and holiday |
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6.1 |
The working hours result from the requirements of the function, and you will not be eligible for paid overtime or excess overtime, either in cash or time off. To compensate overtime, you will be entitled to 5 additional vacation days per calendar year. |
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6.2 |
The annual holiday entitlement is according to the Collective Employment Agreement of the Engineering Industry (hereinafter referred to as the “GAV”). |
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6.3 |
In case of incapacity due to illness, accident or the like to perform the employment duties required under this agreement, you shall notify the employer immediately and shall provide a medical certificate evidencing such incapacity as of the 4th day of such incapacity. However, the employer is free at any time to request a medical certificate from the first day of absence. |
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7. |
Apartment/Housing |
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7.1 |
The Company is offering you an apartment in Zug, Switzerland with the cost of the apartment to be covered by Zimmer Biomet. |
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7.2 |
All housing payments according to the policy rules may be taxable according to the Swiss law. |
For pension purposes, you will be covered under the terms and conditions of the following scheme: “Sulzer Vorsorgeeinrichtung (SVE)” and Johann Jakob Sulzer Stiftung (JJS).
Exhibit 10.4
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9. |
Confidentiality, Non-Competition, and Non-Solicitation Agreement |
You commit to sign as an attachment to this agreement a Confidentiality, Non-Competition, and Non-Solicitation Agreement which shall apply throughout employment and for certain periods thereafter.
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10. |
Applicable Law and Place of Jurisdiction |
This agreement takes effect when signed by both parties. Employment is subject to Swiss Law and the GAV (to the extent applicable). The courts of law in the Canton of Zug have jurisdiction.
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11. |
Contract supplement |
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11.1 |
You must treat all information acquired in the course of employment, which is not public knowledge, with absolute confidentiality. This obligation continues to apply after the employment relationship has ended. |
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11.2 |
The following documents form an integral part of this agreement, if not otherwise specified in this agreement: |
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Collective Employment Agreement of the Engineering Industry (GAV) |
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Employee Handbook (Arbeitsvertragliche Bestimmungen Zimmer, AVB) |
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Swiss Working Time Regulation (Arbeitszeitreglement Schweiz) |
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Terms and conditions of the “Sulzer Vorsorgeeinrichtung (SVE)” and terms Conditions of the “Johann Jakob Sulzer Stiftung (JJS)” Code of Business Conduct |
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Confidentiality, Non-Competition, and Non-Solicitation Agreement |
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Agreement of Waiver to Register Working Hours |
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EEA and Switzerland Employee Privacy Policy and Notice |
You acknowledge that you have read and understood the enclosed EEA and Switzerland Employee Privacy Policy and Notice.
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11.3 |
In the event of any discrepancies between this agreement and the general contract terms, this agreement shall take precedence over the general contract terms. |
Exhibit 10.4
You confirm the receipt of the above mentioned documents and your agreement with the contents.
Zimmer GmbH
/s/ Carole Maire
Carole Maire
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VP, Human Resources EMEA |
Agreed:
Place and Date: Woerden, May 6, 2021Employee:/s/ Wilfred van Zuilen
Wilfred van Zuilen
Exhibit 10.5
Confidential
May 5, 2021
Wilfred van Zuilen
Dear Wilfred:
We are pleased to offer you the role of President, EMEA of Zimmer Biomet Holdings, Inc. (“Zimmer Biomet” or the “Company”) reporting to Ivan Tornos, Chief Operating Officer. Your salary grade will be level Z04. We will mutually agree on your start date, which we expect to be on or around June 1, 2021. You will also be a member of the Company’s global Leadership Team.
This will be an addendum to your Swiss-based contract dated May 5, 2021.
Position Location
This position will be based in Zug, Switzerland. Your tax home will be in Zug and business meetings and activities will occur in Zug.
Annual Merit Adjustment
Zimmer Biomet’s annual merit review process involves base pay adjustments consistent with job performance. Merit adjustments are based on performance during the calendar year. You will be eligible for a merit increase beginning in 2022
Equity Replacement and Sign-On Grants
As described further below, in connection with your commencement of employment, Zimmer Biomet will provide you a one-time long-term incentive grant with a grant date fair value of approximately $3,260,000 (USD).
Equity Replacement Grant
Approximately $2,500,000 (USD) will consist of 50% time-vested restricted stock units (“RSUs”) and 50% stock options. The grant date will be the first business day of the month following your commencement of employment. These RSUs and stock options will vest at the rate of 25% per year over four years beginning on the first anniversary of the grant date, assuming your continued employment with Zimmer Biomet. The stock options will expire on the tenth anniversary of the grant date.
Sign-On Equity Grant
Approximately $760,000 (USD) will consist of will consist of 50% time-vested RSUs and 50% stock options. The grant date will be the first business day of the month following your commencement of employment. These RSUs and stock options will vest at the rate of 25% per year over four years beginning on the first anniversary of the grant date, assuming your continued employment with Zimmer Biomet. The stock options will expire on the tenth anniversary of the grant date.
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All equity awards are subject to Compensation and Management Development Committee (“Compensation Committee”) approval and other terms and conditions of the 2009 Stock Incentive Plan, as amended from time to time; award agreements; and your execution of a non-compete agreement in the form provided by the Company.
Executive Officer (Section 16)
We expect that you will be designated by the Board of Directors as an “officer” of Zimmer Biomet for purposes of Rule 16a-1(f) and as an “executive officer” for purposes of Rule 3b-7 under the Securities Exchange Act of 1934, as amended.
As an executive officer, you will be subject to stock ownership guidelines established by the Board of Directors in order to align the interests of executive officers more closely with those of stockholders. The guidelines will require you to own shares with a value equal to at least three (3) times your base salary. Under the guidelines, all shares you hold, including time-based RSUs (but excluding unvested performance-based RSUs), will count toward this ownership requirement. In addition, one-half of any gain on vested stock options will count toward this requirement. You will have up to five (5) years to achieve the required level of stock ownership. Further, every executive officer must obtain clearance prior to selling any shares of Company common stock, in part to ensure that all officers remain in compliance with the stock ownership guidelines.
Contractual Obligations
It is our understanding that you do not have any contractual obligations (such as a non-competition or non-solicitation agreement) with a former or current employer that you would violate by accepting this role. If our understanding is incorrect, please notify me immediately. If you have a confidentiality obligation with a former or current employer, it is your responsibility to refrain from using or disclosing confidential information. If you have any questions about this responsibility, please let us know.
Section 409A
To the extent that any payments or benefits under this letter are deemed to be subject to Section 409A of the Internal Revenue Code of 1986, as amended (“Code”), this letter will be interpreted in accordance with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder in order to (a) preserve the intended tax treatment of the benefits provided with respect to such payments and (b) comply with the requirements of Section 409A of the Code. A termination of employment shall not be deemed to have occurred for purposes of any provision of this letter providing for the payment of any amounts or benefits upon or following a termination of employment unless such termination is also a “separation from service” within the meaning of Section 409A. Nothing in this letter shall be construed as a guarantee by the Company of any particular tax effect. The Company shall not be liable to you for any tax, penalty, or interest imposed on any amount paid or payable hereunder by reason of Section 409A, or for reporting in good faith any payment made under this letter as an amount includible in gross income under Section 409A.
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If there is any discrepancy between this letter and/or the Swiss contract and the plan documents, the plan documents will govern. While Zimmer Biomet intends to continue benefits referenced in this offer, we reserve the right to change or discontinue them at any time for any reason. Please note in particular that any amount payable or paid to you pursuant to any performance-based compensation plan may be subject to forfeiture or repayment in accordance with the Company’s Executive Compensation Recoupment Policy or applicable plan document or award agreement as approved, adopted and/or revised by the Board or Compensation Committee from time to time, and/or subject to recoupment as required by any other provisions of any law (including, without limitation, Section 10D of the Securities Exchange Act of 1934, as amended), governmental regulation or stock exchange listing requirement. By signing below, you acknowledge your understanding that any such repayment obligation will apply notwithstanding anything else stated in this letter.
We are very excited to have you join us and are looking forward to receiving your signed offer letter. We believe you will make a valuable contribution and find your career with Zimmer Biomet challenging and rewarding.
CONFIRMATION OF ACCEPTANCE
Please indicate your acceptance of this offer by signing below and returning the signed letter to me.
Sincerely,
Ivan Tornos
Chief Operating Officer
Accepted:
/s/ Wilfred van Zuilen May 6, 2021
__________________________________________
Wilfred van Zuilen Date
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Exhibit 10.6

This Change in Control Severance Agreement ("Agreement") is made by and between Zimmer GmbH ("Employer" or "Company" as case may be) and Wilfred van Zuilen ("Executive").
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(A) |
The Company considers it essential to the best interests of its ultimate shareholders to foster the continuous employment of key management personnel. |
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(B) |
The Company and the Board recognize that, as is the case with many publicly held corporations, the possibility of a Change in Control in the Ultimate Parent Company exists and that such a possibility, and the uncertainty and questions that it may raise among management, may result in the departure or distraction of management personnel to the detriment of the Company and its shareholders. |
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(C) |
The Board has determined that appropriate steps should be taken to reinforce and encourage the continued attention and dedication of members of the Company's management, including the Executive, to their assigned duties without distraction in the face of potentially disturbing circumstances arising from the possibility of a Change in Control. |
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(D) |
The parties intend that no amount or benefit will be payable under this Agreement unless a termination of the Executive's employment with the Company occurs following a Change in Control, or is deemed to have occurred following a Change in Control, as provided in this Agreement. |
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Defined terms as used herein and not defined elsewhere in this Agreement, shall have the meaning ascribed to them in Annex 1 to this Agreement.
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1. |
Term of Agreement |
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This Agreement will commence on the date stated below and will continue in effect through December 31, 2021. Beginning on January 1, 2022, and each subsequent January 1, the term of this Agreement will automatically be extended for one additional year, unless either party gives the other party written notice not to extend this Agreement at least 30 days before the extension would otherwise become effective or unless a Change in Control occurs. If a Change in Control occurs during
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Change in Control Severance Agreement |
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the term of this Agreement, this Agreement will continue in effect for a period of 24 months from the end of the month in which the Change in Control occurs. Notwithstanding the foregoing provisions of this Article, this Agreement will terminate on the Executive's retirement date, as defined under Swiss law.
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2. |
Compensation other than Severance Payments |
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2.1 |
Compensation Previously Earned |
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If the Executive's employment is terminated for any reason following a Change in Control and during the term of this Agreement, the Company will pay the Executive's salary accrued through the Date of Termination, at the rate in effect at the time the Notice of Termination is given, together with all other compensation and benefits payable to the Executive through the Date of Termination under the terms of any compensation or benefit plan, program, or arrangement maintained by the Company during that period.
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2.2 |
Normal Post-Termination Compensation and Benefits. |
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Except as provided in Section 3.1, if the Executive's employment is terminated for any reason following a Change in Control and during the term of this Agreement, the Company will pay the Executive the normal compensation and benefits payable to the Executive under the terms of the Company's compensation or benefit plans, programs, and arrangements, as in effect immediately prior to the Change in Control, including but not limited to the Non-Competition Period Payments (if any). This provision does not restrict the Company's right to amend, modify, or terminate any plan, program, or arrangement prior to a Change in Control.
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2.3 |
No Duplication. |
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Notwithstanding any other provision of this Agreement to the contrary, the Executive will not be entitled to duplicate benefits or compensation under this Agreement and the terms of any other plan, program, or arrangement maintained by the Company or any affiliate.
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3. |
Severance Payments |
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3.1 |
Payment Triggers |
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In addition to the payments as set out in Section 2 above, but in lieu of any other severance compensation or benefits to which the Executive may otherwise be entitled under any plan, program, policy, or arrangement of the Company or by law in particular due to abusive termination under Art. 336a Swiss Code of Obligations (and which the Executive hereby expressly waives), the Company will pay the Executive the Severance Payments described in Section 3.2 upon termination of the Executive's
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Change in Control Severance Agreement |
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employment following a Change in Control and during the term of this Agreement, unless the termination is (1) by the Company for Cause, (2) by reason of the Executive's death, or (3) by the Executive without Good Reason.
For purposes of this Section 3.1, the Executive's employment will be deemed to have been terminated following a Change in Control by the Company without Cause or by the Executive with Good Reason if (1) the Executive's employment is terminated without Cause prior to a Change in Control at the direction of a Person who has entered into an agreement with the Ultimate Parent Company, the consummation of which will constitute a Change in Control; or (2) the Executive terminates his employment with Good Reason prior to a Change in Control (determined by treating a Potential Change in Control as a Change in Control in applying the definition of Good Reason), if the circumstance or event that constitutes Good Reason occurs at the direction of such a Person.
The Severance Payments described in this Article 3 are subject to the conditions stated in Section 4 below and shall be reduced in part or in their totality if and to the extent the Severance Payments were, at the time of their payment, to be deemed a golden parachute or similar arrangement prohibited under the laws where the Company is incorporated and has its registered office or the costs associated with the Severance Payments could no longer be booked as expenditures in the Company's profit and loss statement.
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3.2 |
Severance Payments. |
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The following are the Severance Payments referenced in Section 3.1:
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(a) |
Lump Sum Severance Payment |
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In lieu of any further salary payments to the Executive for periods after the Date of Termination, and in lieu of any severance benefits otherwise payable to the Executive, the Company will pay to the Executive, in accordance with Section 3.3, a lump sum severance payment, in cash, equal to (a) two times the sum of (1) the higher of the Executive's annual base salary in effect immediately prior to the event or circumstance upon which the Notice of Termination is based or in effect immediately prior to the Change in Control, plus (2) the amount of the Executive's target annual bonus entitlement under the Cash Incentive Plan (or any other bonus plan of the Company then in effect) as in effect immediately prior to the event or circumstance giving rise to the Notice of Termination, less (b) the amount of any statutory payment to which the Executive is entitled related to any statutory notice period. If the Board determines that it is not workable to determine the amount that the Executive's target bonus would have been for the year in which the Notice of Termination was given, then, for purposes of this paragraph (a), the Executive's target annual bonus entitlement will be the average of annual bonus paid to the Executive with respect to the three years immediately prior to the year in which the Notice of Termination was given.
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Change in Control Severance Agreement |
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(b) |
Options and Restricted Shares |
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All outstanding Options will become immediately vested and exercisable (to the extent not yet vested and exercisable as of the Date of Termination). To the extent not otherwise provided under the written agreement evidencing the grant of any restricted Shares to the Executive, all outstanding Shares that have been granted to the Executive subject to restrictions that, as of the Date of Termination, have not yet lapsed will lapse automatically upon the Date of Termination, and the Executive will own those Shares free and clear of all such restrictions. Notwithstanding the foregoing, Options and restricted Shares remain subject to any forfeiture or clawback claims under the applicable option plan or award agreement.
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Time of Payment |
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Except as otherwise expressly provided in Section 3.2, payments provided for in that Section will be made as follows:
No later than the fifth business day following the Date of Termination, the Company will pay to the Executive an estimate, as determined by the Company in good faith, of 90% of the payments under Section 3.2 (a) to which the Executive is clearly entitled.
The Company will pay to the Executive the remainder of the payments due to the Executive under Section 3.2 not later than 90 business days after the Date of Termination.
At the time that payment is made under this Section 3.3, the Company will provide the Executive with a written statement setting forth the manner in which all of the payments to him under this Agreement were calculated and the basis for the calculations.
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Outplacement Services |
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For a period not to exceed six (6) months following the Date of Termination, the Company will provide the Executive with reasonable outplacement services consistent with past practices of the Company prior to the Change in Control or, if no past practice has been established prior to the Change in Control, consistent with the prevailing practice in the medical device manufacturing industry.
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4. |
The Executive's Covenants |
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4.1 |
Confidentiality, Non-Competition and Non-Solicitation Agreement |
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The Executive herewith acknowledges and affirms his continuing obligations under the existing Confidentiality, Non-Competition and Non-Solicitation Agreement dated 6 May 2021 and re-affirms his agreement to honor the obligations as set forth
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Change in Control Severance Agreement |
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therein.
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4.2 |
General Release |
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The Executive agrees that, notwithstanding any other provision of this Agreement, the Executive will not be eligible for any Severance Payments under this Agreement unless the Executive timely signs a General Release in substantially the form attached to this Agreement as Annex 2. The Executive will be given 30 days to consider the terms of the General Release. If the Executive does not return the executed General Release to the Company by the end of the 30 day period that failure will be deemed a refusal to sign, and the Executive will not be entitled to receive any Severance Payments under this Agreement.
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5. |
Notices |
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For the purpose of this Agreement, notices and all other communications provided for in the Agreement will be in writing and will be deemed to have been duly given when delivered or mailed by Swiss registered mail, return receipt requested, addressed to the respective addresses set forth below, or to such other address as either party may furnish to the other in writing in accordance with this Article 5, except that notice of change of address will be effective only upon actual receipt:
To the Company:
Zimmer GmbH.
Attention: Vice President EMEA Counsel
Zählerweg 4
6300 Zug
To the Executive:
The Executive’s principal residence as reflected in the records of the Company.
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6. |
Miscellaneous |
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This Agreement constitutes and expresses the entire agreement between the Parties pertaining to the subject matter contained herein and supersedes all prior and contemporaneous oral or written agreements, representations, understandings and the like between the Parties.
This Agreement may not be modified, amended, altered or supplemented, in whole or in part, except by a written agreement signed by the Parties.
If any provision of this Agreement is found by any competent authority to be void, invalid or unenforceable, such provision shall be deemed to be deleted from this Agreement and the remaining provisions of this Agreement shall continue in full
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Change in Control Severance Agreement |
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force. In this event, the Agreement shall be construed, and, if necessary, amended in a way to give effect to, or to approximate, or to achieve a result which is as close as legally possible to the result intended by the provision hereof determined to be void, illegal or unenforceable.
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7. |
Governing Law and Jurisdiction |
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This Agreement shall be governed by, interpreted and construed in accordance with the substantive laws of Switzerland.
The ordinary courts and at the registered office of the Company shall have exclusive jurisdiction for all disputes arising out of or in connection with this Agreement.
This Agreement enters into force effective as of May 5, 2021.
Zimmer GmbH
/s/ Guillaume Génin /s/ Carole Maire
Guillaume GéninCarole Maire
Vice President EMEA Counsel Vice President Human Resources EMEA
Executive
/s/ Wilfred van Zuilen
Wilfred van Zuilen
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Change in Control Severance Agreement |
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Annex 1: Definitions
"Beneficial Owner" has the meaning stated in Rule 13d‑3 under the Exchange Act.
"Board" means the Board of Directors of the Ultimate Parent Company.
"Cash Incentive Plan" means the Ultimate Parent Company’s Executive Performance Incentive Plan.
"Cause" for termination by the Company of the Executive's employment, after any Change in Control, means (1) any reason being deemed good reason in the sense of Art. 336d Swiss Code of Obligations; (2) the willful and continued 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 or any such actual or anticipated failure after the issuance of a Notice of Termination for Good Reason by the Executive) for a period of at least 10 consecutive days after a written demand for substantial performance is delivered to the Executive by the Company, which demand specifically identifies the manner in which the Company believes that the Executive has not substantially performed the Executive's duties; or (3) the Executive willfully engages in conduct that is demonstrably and materially injurious to the Company, the Ultimate Parent Company or its subsidiaries, monetarily or otherwise.
A "Change in Control" will be deemed to have occurred if any of the following events occur:
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(a) |
any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Ultimate Parent Company (not including in the securities beneficially owned by that Person any securities acquired directly from the Ultimate Parent Company or its affiliates) representing 20% or more of the combined voting power of the Ultimate Parent Company's then outstanding securities; or |
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(b) |
during any period of two consecutive years (not including any period prior to the execution of this Agreement), individuals who at the beginning of the period constitute the Board and any new director (other than a director designated by a Person who has entered into an agreement with the Ultimate Parent Company to effect a transaction described in clause (a), (c) or (d) of this paragraph whose election by the Board or nomination for election by the Ultimate Parent Company's stockholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously approved), cease for any reason to constitute a majority of the Board; or |
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(c) |
the shareholders of the Ultimate Parent Company approve a merger or consolidation of the Ultimate Parent Company with any other corporation, other than (A) a merger or consolidation that would result in the voting securities of |
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Change in Control Severance Agreement |
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the Ultimate Parent Company outstanding immediately prior to the merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity), in combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan of the Ultimate Parent Company, at least 75% of the combined voting power of the voting securities of the Ultimate Parent Company or the surviving entity outstanding immediately after the merger or consolidation; or (B) a merger or consolidation effected to implement a recapitalization of the Ultimate Parent Company (or similar transaction) in which no Person acquires more than 50% of the combined voting power of the Ultimate Parent Company's then outstanding securities; or |
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(d) |
the shareholders of the Ultimate Parent Company approve a plan of complete liquidation of the Ultimate Parent Company or an agreement for the sale or disposition by the Ultimate Parent Company of all or substantially all the Ultimate Parent Company's assets. |
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Notwithstanding the foregoing, a Change in Control will not include any event, circumstance, or transaction occurring during the six-month period following a Potential Change in Control that results from the action of any entity or group that includes, is affiliated with, or is wholly or partly controlled by the Executive; provided, further, that such an action will not be taken into account for this purpose if it occurs within a six-month period following a Potential Change in Control resulting from the action of any entity or group that does not include the Executive.
"Date of Termination" means the date on which the Notice of Termination under the Employment Agreement has lapsed.
"Employment Agreement" means the employment agreement between the Executive and the Company dated 6 May 2021 as further modified.
"Exchange Act" means the U.S. Securities Exchange Act of 1934, as amended from time to time, and interpretive rules and regulations.
"Good Reason" for termination by the Executive of the Executive's employment means the occurrence (without the Executive's express written consent) of any one of the following acts by the Company, or failures by the Company to act following a Change in Control:
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(a) |
the assignment to the Executive of any duties inconsistent with the Executive's status as an executive officer of the Company or a substantial adverse alteration in the nature or status of the Executive's responsibilities from those in effect immediately prior to a Change in Control; |
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(b) |
the Company's failure, without the Executive's consent, to pay to the Executive any portion of the Executive's current compensation (which means, for purposes of this paragraph (b), the Executive's annual base salary as in effect on the date |
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Change in Control Severance Agreement |
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of this Agreement, or as it may be increased from time to time, and the awards earned pursuant to the Cash Incentive Plan) or to pay to the Executive any portion of an installment of deferred compensation under any deferred compensation program of the Company, within 30 days of the date the compensation is due; |
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|
|
(c) |
the Company's failure to continue in effect any compensation plan in which the Executive participates immediately prior to a Change in Control, which plan is material to the Executive's total compensation, including, but not limited to, the Cash Incentive Plan and the Ultimate Parent Company’s 2009 Stock Incentive Plan as amended from time to time or any substitute plans adopted prior to the Change in Control, unless an equitable arrangement (embodied in an ongoing substitute or alternative plan) has been made with respect to that plan, or the Company's failure to continue the Executive's participation in such a plan (or in a substitute or alternative plan) on a basis not materially less favorable, both in terms of the amount of benefits provided and the level of the Executive's participation relative to other participants, as existed at the time of the Change in Control. |
|
Notwithstanding the foregoing, the occurrence of an event that would otherwise constitute Good Reason will cease to be an event constituting Good Reason if the Executive does not timely provide a Notice of Termination to the Company within 120 days of the date on which the Executive first becomes aware (or reasonably should have become aware) of the occurrence of that event.
"Non-Competition Period Payments" has the meaning as defined in the Confidentiality, Non-Competition and Non-Solicitation Agreement dated 6 May 2021, between the Company and the Executive.
“Notice of Termination” has the meaning as defined in section 2.2 of the Employment Agreement (i.e., notice period of 6 months from the end of the month in which the notice is given).
"Options" means options to purchase Shares awarded to the Executive during his employment with the Company.
"Person" has the meaning stated in section 3(a)(9) of the Exchange Act, as modified and used in sections 13(d) and 14(d) of the Exchange Act; however, a Person will not include (1) the Ultimate Parent Company or any of its subsidiaries, (2) a trustee or other fiduciary holding securities under an employee benefit plan of the Ultimate Parent Company or any of its subsidiaries, (3) an underwriter temporarily holding securities pursuant to an offering of those securities, or (4) a corporation owned, directly or indirectly, by the stockholders of the Ultimate Parent Company in substantially the same proportions as their ownership of stock of the Ultimate Parent Company.
"Potential Change in Control" will be deemed to have occurred if any one of the
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10 / 11 |
|
Change in Control Severance Agreement |
|
following events occurs:
|
|
(a) |
the Ultimate Parent Company enters into an agreement, the consummation of which would result in the occurrence of a Change in Control; |
|
|
|
(b) |
the Ultimate Parent Company or any Person publicly announces an intention to take or to consider taking actions that, if consummated, would constitute a Change in Control; |
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(c) |
any Person who is or becomes the Beneficial Owner, directly or indirectly, of securities of the Ultimate Parent Company representing 10% or more of the combined voting power of the Ultimate Parent Company's then outstanding securities, increases that Person's beneficial ownership of those securities by 5% or more over the percentage so owned by that Person on the date of this Agreement; or |
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|
|
(d) |
the Board adopts a resolution to the effect that, for purposes of this Agreement, a Potential Change in Control has occurred. |
|
"Shares" means shares of the common stock, $0.01 par value, of the Ultimate Parent Company.
"Severance Payments" means the payments described in Section 3.2.
"Ultimate Parent Company" means Zimmer Biomet Holdings, Inc., a Delaware corporation, and any successor to its business and/or assets.
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11 / 11 |
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Change in Control Severance Agreement |
|
Annex 2
GENERAL RELEASE
Name: __________________________Notification Date: ____________
Zimmer GmbH. (the "Company") has offered me certain severance benefits (the "Severance Benefits") pursuant to a Change in Control Severance Agreement ("Agreement") between the Company and me. I will only be able to receive the Severance Benefits in consideration for my signing this General Release.
The Company has advised me of, and I acknowledge the following:
I have 30 days from the date I receive this General Release to consider and sign it. If I do not return this signed General Release in 30 days (INSERT DATE), the Company will consider this my refusal to sign, and I will not receive the Severance Benefits. If I do sign this General Release, it will become immediately effective.
By signing this General Release I am giving up my right to sue the Company, and any affiliates, parent companies and subsidiaries, and their past, present and future officers, directors, employees, and agents (collectively, the "Released Parties") based upon any act or event occurring prior to my signing this General Release, to the fullest extent permitted by law. Without limitation, and again to the fullest extent permitted by law, I specifically release the Company from any and all claims arising out of my employment and termination, including claims based on the Swiss Code of Obligations, the Labour Act and all applicable federal, cantonal and local laws.
For the sake of clarification, I acknowledge that this General Release shall not affect my legal obligation to protect the confidentiality of the Company's information or any of my existing obligations under the Confidentiality, Non-Competition and Non-Solicitation Agreement that I executed during my employment with the Company (the "Non-Competition Agreement"), and I hereby reaffirm my covenants and obligations under the Non-Competition Agreement.
By signing this General Release, none of my benefits will be affected to which I am entitled under the Agreement or any claim arising out of the enforcement of the Agreement.
My signature below acknowledges that I have read the above, understand what I am signing, and am acting of my own free will. The Company has advised me to consult with an attorney and any other advisors of my choice prior to signing this General Release.
SIGNATURE ________________________________ DATE ____________________
PRINT NAME ________________________________
Exhibit 10.7
Zahlerweg 4
CH-6300 Zug
Phone +41 (0)58 854 90 00
www.zimmerbiomet.com
Confidentiality, Non-Competition, and
Non-Solicitation Agreement
between
Zimmer GmbH
Zahlerweg 4, 6300 Zug
( „Employer“)
and
Mr Wilfred van Zuilen
( „Employee“)
Recitals
|
(A) |
For purposes of this Agreement, "Parent" means an entity which is a holding company of or holds a controlling interest in Zimmer Biomet, Inc.(“Company” or “ZINC”); "Affiliate" means a subsidiary of Company or the Parent of Company or a company over which Company or any holding company of Company has control, including but not limited to Employer; and the definition of each of Company, Parent and Affiliates, includes any of their successors-in-interest, including, but not limited to, ZINC. |
|
(B) |
Company, Parent and the Affiliates (collectively, and each individually "Zimmer Biomet Group") are part of the global holdings of Zimmer Biomet Holdings, Inc., a publicly traded corporation incorporated under the laws of the state of Delaware, U.S.A., the primary purpose of which is to serve as the umbrella entity for ZINC. Zimmer Biomet Group is engaged in the development, manufacture, distribution, and sale of orthopedic medical and/or oral rehabilitation devices, products, and services. |
|
(C) |
Employee used to work as senior executive with Medtronic and continues to be bound by certain post-contractual non-competition restrictions of this company. The Parties are aware that Medtronic is competing with Zimmer Biomet Group in the Spine products range and that activities in these field might breach the Employee's restrictive covenants. The Parties have therefore agreed that Employee's employment responsibilities shall be structured in a manner to carve out the Spine products business in an effort to avoid conflicts with Employee's non-competition restrictions with Medtronic ("Carved-out Business"). |
Now therefore the Parties conclude the following agreement ("Agreement"):
|
1.1 |
As used herein, "Confidential Information" shall include, but not be limited to, all business, trade, and technical information of Zimmer Biomet Group, and of any third party, whether patentable or not, which is of a confidential, trade secret and/or proprietary character and which is either developed by Employee (alone or with others) or to which Employee has had access during its employment with the Zimmer Biomet Group. |
2/5
____________________________________________________________________________________________________
|
1.2 |
Confidential Information includes, without limitation, the following: |
|
|
(a) |
marketing, sales, and advertising information such as lists of actual or potential customers; customer preference data; marketing and sales techniques, strategies, efforts, and data; merchandising systems and plans and go to market models and strategies; confidential customer information including identification of purchasing personnel, third party suppliers and service providers, account status, needs and ability to pay; business plans; product development and delivery schedules; market research and forecasts; marketing and advertising plans, techniques, and budgets; overall pricing strategies; the specific advertising programs and strategies utilized, and the success or lack of success of those programs and strategies; |
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(b) |
organizational information such as personnel and salary data; merger, acquisition and expansion information; information concerning methods of operation; and divestiture information; |
|
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(c) |
financial information such as product costs; supplier information; overhead costs; profit margins; banking and financing information; and pricing policy practices; |
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(d) |
technical information such as product specifications, compounds, formulas, improvements, discoveries, developments, designs, inventions, techniques, new products and surgical training methods; |
|
|
(e) |
information disclosed to Employee as part of a training process; |
|
|
(f) |
information of third parties provided to Employee subject to non-disclosure restrictions for use in Employee's business for the Zimmer Biomet Group; and |
|
|
(g) |
any work product created by Employee in rendering services for the Zimmer Biomet Group. |
|
1.3 |
Employee shall not at any time during the continuance of his/her employment with the Zimmer Biomet Group or at any time thereafter directly or indirectly use for his/her own purposes or for any purposes other than those of the Zimmer Biomet Group, record, divulge, disclose or communicate to any person, company, business entity or other organization or, through any failure to exercise due care and diligence, cause any unauthorized disclosure of, any trade secrets or Confidential Information except as may be necessary for the proper performance of Employee's duties or as may be specifically authorized in writing by the Employer. |
|
1.4 |
Employee will notify Employer in writing of any circumstances which may constitute unauthorized disclosure, transfer, or use of Confidential Information. Employee will use best efforts to protect Confidential Information from unauthorized disclosure, transfer, or use. Employee will implement and abide by all procedures adopted by the Zimmer Biomet Group to prevent unauthorized disclosure, transfer, or use of Confidential Information. |
|
1.5 |
Upon termination of his/her employment with the Zimmer Biomet Group (for whatever reason), and at any other time at Employer's request, Employee shall, without retaining any copies or other record thereof, deliver to Employer or any person Employer may nominate each and every document and all other material of whatever nature in the possession or under the control of Employee containing or relating directly or indirectly to any Confidential Information. |
|
1.6 |
The Employee undertakes when performing the duties under the employment agreement with Zimmer Biomet not to make use of any confidential information obtained from previous employers, including but not limited to the Carved-out Business that are covered by similar undertakings as set forth herein. |
|
1.7 |
The confidentiality undertaking set forth in this Section 1 shall cease to apply to any information which shall become available to the public generally otherwise than through the default of Employee. |
3/5
____________________________________________________________________________________________________
|
2.1 |
Employee shall not, for as long as he/she remains an employee of the Zimmer Biomet Group and during a period of 18 months from the taking effect of the termination of his/her employment with the Zimmer Biomet Group ("Non-Competition Period"), alone, or jointly with, or as manager, agent for, or employee of any person or as a shareholder directly or indirectly carry on or be engaged, concerned or interested in any business competitive to the business of Zimmer Biomet Group with an effect in EMEA, or any other country for which Employee possesses and will possess knowledge of Confidential Information. The non-compete undertaking set forth in this Section shall apply to any product competing with the Employer's products lines, and in particular but not limited to activities for companies active in the orthopedic medical devices and joint replacement as well as robotic, services and solutions businesses, including their respective affiliates and subsidiaries, assignees, and successors. This non-competition covenant shall, however, not apply to the Carved-out Business. |
|
2.2 |
Employee shall not during the Non-Competition Period (i) solicit, induce or attempt to induce any person who is an employee of the Zimmer Biomet Group to leave the Zimmer Biomet Group or to engage in any business that competes with the Zimmer Biomet Group; (ii) hire or assist in the hiring of any person who is an employee of the Zimmer Biomet Group to work for any business that competes with the Zimmer Biomet Group, or (iii) solicit, induce or attempt to induce any person or company that is a customer, supplier, service provider, distributor or sales agent of the Zimmer Biomet Group to discontinue or modify its customer relationship with the Zimmer Biomet Group. |
|
3.1 |
To the extent Employee is unable to obtain employment consistent with Employee's training and education solely because of the provisions of this Agreement, the following terms will apply upon expiration of any severance benefits to which Employee is otherwise eligible to receive ("Non-Competition Period Payments"): |
|
|
(a) |
Employer will make payments to Employee equal to 100% of the Employee's monthly base salary at the time of Employee's termination (exclusive of bonus, extra compensation and any other employee benefits) for each month of such unemployment through the end of the Non-Competition Period; |
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|
(b) |
to the extent Employee is able to obtain employment which does not violate this Agreement, but solely because of this Agreement, the monthly base salary for the replacement employment is less than Employee's monthly base salary at the time of Employee's termination (exclusive of bonus, extra compensation and any other employee benefits), Employer agrees to pay the difference up to 100% of the Employee's monthly base salary for each such month through the end of the Non-Competition Period; |
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|
(c) |
on the 15th day of each month of such unemployment, Employee will give Employer a detailed written account of Employee's efforts to obtain employment and an explanation exclusively attributing Employee's inability to obtain replacement employment to the provisions of this Agreement. |
|
3.2 |
In the event of Employee's breach of the undertakings hereunder, Employee agrees that he will still be bound by all of the provisions set forth in this Agreement, including, but not limited to, the non-competition, non-solicitation, non-disparagement and non-disclosure covenants, until the end of the Non-Competition Period. |
|
4. |
Remedies |
|
4.1 |
For each violation of the covenants set forth in Sections 1 and/or 2, Employee shall pay to Employer or, at Employer's instruction, any other affiliate of the Zimmer Biomet Group, an amount corresponding to Employee's last annual salary at the time of Employee's termination |
4/5
____________________________________________________________________________________________________
|
(inclusive bonus payments, extra compensation and any other employee benefits) as liquidated damages plus such additional damages as may be incurred by Employer and/or any other affiliate of the Zimmer Group. The payment of this sum shall not operate as a waiver of the above obligations. Employer and/or any other affiliate of the Zimmer Biomet Group shall, in addition to all other damages, be entitled to obtain a court's order for specific performance, as well as adequate injunctive relief or any other adequate judicial measure, to immediately stop such violation. |
|
4.2 |
To the extent that Employee breaches any provision of this Agreement during the Non-Competition Period and/or fails to timely submit the written account required by Section 3, Employer reserves, in addition to all other relief to which Employer shall be entitled, the right to cease making any Non-Competition Period Payments. |
|
5.1 |
This Agreement constitutes and expresses the entire agreement between the Parties pertaining to the subject matter contained herein and supersedes all prior and contemporaneous oral or written agreements, representations, understandings and the like between the Parties. |
|
5.2 |
This Agreement may not be modified, amended, altered or supplemented, in whole or in part, except by a written agreement signed by the Parties. |
|
5.3 |
If any provision of this Agreement is found by any competent authority to be void, invalid or unenforceable, such provision shall be deemed to be deleted from this Agreement and the remaining provisions of this Agreement shall continue in full force. In this event, the Agreement shall be construed, and, if necessary, amended in a way to give effect to, or to approximate, or to achieve a result which is as close as legally possible to the result intended by the provision hereof determined to be void, illegal or unenforceable. |
|
6. |
Waiver |
Employer may at any time in its sole discretion waive all or certain of the restrictions under this Agreement respecting a notice period of one month. Employee acknowledges and agrees that in case the non-competition restriction is waived during the notice period under the employment agreement, there will be no entitlements to Non-Competition Period Payments under clause 3 of this Agreement. In case the waiver occurs following termination of employment, any Non-Competition Period Payment will cease once the one-month's period has lapsed.
|
7.1 |
This Agreement shall be governed by, interpreted and construed in accordance with the substantive laws of Switzerland. |
|
7.2 |
The competent ordinary courts at the registered of Employer shall have exclusive jurisdiction for all disputes arising out of or in connection with this Agreement |
Employee's signature below indicates that Employee has read the entire Agreement, Employee understands what Employee is signing, and is signing it voluntarily. Employee agrees that Zimmer Biomet Group advised Employee to consult with an attorney prior to signing the Agreement.
5/5
____________________________________________________________________________________________________
This Agreement enters into force on the later date set-out below.
/s/ Carole Maire
Carole Maire
President EMEAHR VP EMEA
Agreed:
Place and Date: Woerden, May 5, 2021Employee:/s/ Wilfred van Zuilen
Wilfred van Zuilen
Exhibit 21
Subsidiaries of Zimmer Biomet Holdings, Inc.
As of June 30, 2021
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Name of Subsidiary1 |
Jurisdiction of Formation |
|
|
Domestic subsidiaries: |
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A&E Advanced Closure Systems, LLC |
Delaware |
|
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A&E Medical Corp. |
New Jersey |
|
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Alto Development Corp. |
New Jersey |
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Biomet 3i, LLC |
Florida |
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dba Zimmer Biomet Dental |
|
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Biomet Biologics, LLC |
Indiana |
|
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Biomet CV Holdings, LLC |
Delaware |
|
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Biomet Fair Lawn LLC |
Indiana |
|
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Biomet International Orthopedics, LLC |
Delaware |
|
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Biomet International, Inc. |
Delaware |
|
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Biomet Leasing, Inc. |
Indiana |
|
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Biomet Manufacturing, LLC |
Indiana |
|
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Biomet Microfixation, LLC |
Florida |
|
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dba Zimmer Biomet CMF and Thoracic |
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Biomet Orthopedics, LLC |
Indiana |
|
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Biomet Sports Medicine, LLC |
Indiana |
|
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dba Biomet Sports Medicine Limited Liability Company (Forced) |
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Biomet Trauma, LLC |
Indiana |
|
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Biomet U.S. Reconstruction, LLC |
Indiana |
|
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Biomet, Inc. |
Indiana |
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dba Zimmer Biomet |
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Cayenne Medical, Inc. |
Delaware |
|
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CD Diagnostics, Inc. |
Delaware |
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CD Laboratories, Inc. |
Maryland |
|
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Citra Labs, LLC |
Indiana |
|
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dba Biomet Citra Labs, LLC (Forced) |
|
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Dornoch Medical Systems, Inc. |
Illinois |
|
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EBI Holdings, LLC |
Delaware |
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EBI Medical Systems, LLC |
Delaware |
|
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EBI, LLC |
Indiana |
|
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dba Zimmer Biomet Bone Healing Technologies |
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dba Biomet Bone Healing Technologies |
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dba Biomet Bracing |
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dba Biomet Healing Technologies (Forced) |
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dba Biomet Spine (Forced) |
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dba Biomet Spine & Bone Healing Technologies |
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dba Biomet Spine & Bone Healing Technologies, LLC (Forced) |
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dba Biomet Spine & Bone Healing Technologies, Biomet Bracing and Biomet Osteobiologics, LLC (Forced) |
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dba Biomet Trauma, Biomet Spine (Forced) |
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dba Biomet Trauma, Biomet Spine, Biomet Bracing and Biomet Osteobiologics, LLC (Forced) |
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dba EBI, LLC (IN) (Forced) |
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dba EBI, LLC of Indiana (Forced) |
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Electro-Biology, LLC |
Delaware |
|
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ETEX Corporation |
Massachusetts |
|
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dba Zimmer ETEX |
|
|
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dba Zimmer Biomet ETEX |
|
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ETEX Holdings, Inc. |
Delaware |
|
|
dba Zimmer ETEX |
|
|
Name of Subsidiary1 |
Jurisdiction of Formation |
|
|
|
dba Zimmer Biomet ETEX |
|
|
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Implant Concierge, LLC |
Texas |
|
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Interpore Cross International, LLC |
California |
|
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dba Zimmer Biomet Irvine |
|
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Kirschner Medical Corporation |
Delaware |
|
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LVB Acquisition, Inc. |
Delaware |
|
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Medical Compression Systems, Inc. |
Delaware |
|
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Medtech Surgical, Inc. |
Delaware |
|
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Orthopaedic Advantage, LLC |
Indiana |
|
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Relign Corporation |
Delaware |
|
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Synvasive Technology, Inc. |
California |
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VSC Medical Holdings, Inc. |
Delaware |
|
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ZB COOP LLC |
Delaware |
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ZB EMEA US UK LLC |
Delaware |
|
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ZB Manufacturing, LLC |
Delaware |
|
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Zimmer Biomet Distribution LLC |
Delaware |
|
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Zimmer Biomet Spine, Inc. |
Delaware |
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dba Lanx |
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dba Zimmer Spine |
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Zimmer Caribe, LLC |
Delaware |
|
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Zimmer CEP USA Holding Co. |
Delaware |
|
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Zimmer CEP USA, Inc. |
Delaware |
|
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Zimmer Co-op Holdings, LLC |
Delaware |
|
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Zimmer CV, Inc. |
Delaware |
|
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Zimmer Dental Inc. |
Delaware |
|
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Zimmer Knee Creations, Inc. |
Delaware |
|
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Zimmer Orthobiologics, Inc. |
New Jersey |
|
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Zimmer Production, Inc. |
Delaware |
|
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Zimmer Southeast Florida, LLC |
Delaware |
|
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Zimmer Spine Next, Inc. |
Delaware |
|
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Zimmer Surgical, Inc. |
Delaware |
|
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Zimmer Trabecular Metal Technology, Inc. |
New Jersey |
|
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Zimmer US, Inc. |
Delaware |
|
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dba Zimmer Biomet |
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dba Zimmer Biomet Bay Area |
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dba Zimmer Biomet Mid-Atlantic |
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dba Zimmer Biomet North Texas |
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dba Zimmer Biomet Southern California |
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dba Zimmer US Cooperative |
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dba Compression Therapy Concepts |
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dba CTC Inc. |
|
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Zimmer, Inc. |
Delaware |
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dba Zimmer Biomet |
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dba Zimmer Biomet Corporate Services (Forced) |
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dba Z Hotel |
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dba CD Diagnostics |
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dba CD Laboratories |
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Foreign subsidiaries: |
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Biomet Argentina SA |
Argentina |
|
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Biomet 3i Australia Pty. Ltd. |
Australia |
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Biomet Australia Pty. Ltd. |
Australia |
|
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Zimmer Australia Holding Pty. Ltd. |
Australia |
|
Name of Subsidiary1 |
Jurisdiction of Formation |
|
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Zimmer Biomet Pty. Ltd. |
Australia |
|
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Zimmer Biomet Austria GmbH |
Austria |
|
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ZH2LX Barbados Branch (branch) |
Barbados |
|
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Zimmer Biomet Finance Srl |
Barbados |
|
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Biomet 3i Belgium N.V. |
Belgium |
|
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Biomet 3i Benelux Holdings N.V. |
Belgium |
|
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Zimmer Biomet BVBA |
Belgium |
|
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Biomet Insurance Ltd. |
Bermuda |
|
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Biomet 3i do Brasil Comercio de Aparelhos Medicos Ltda. |
Brazil |
|
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Biomet Brazil Medical Device Ltda. |
Brazil |
|
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LDR Brasil Comercio, Importacao e Exportacao Ltda. |
Brazil |
|
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WM World Medical Importacao e Exportacao Ltda. |
Brazil |
|
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Zimmer do Brasil Comercio Ltda. |
Brazil |
|
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ORTHOsoft ULC |
Canada |
|
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dba Zimmer CAS |
|
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Zimmer Biomet Canada, Inc. |
Canada |
|
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Zimmer Biomet Dental Canada Inc. |
Canada |
|
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ZB Cayman (Asia) Holding Ltd. |
Cayman Islands |
|
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ZB Cayman Island CBT 2 Ltd. |
Cayman Islands |
|
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Zimmer Cayman Islands Holding Co. Ltd. |
Cayman Islands |
|
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Biomet Chile SA |
Chile |
|
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Zimmer Dental Chile Spa |
Chile |
|
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Beijing Montagne Medical Device Co. Ltd. |
China |
|
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Biomet China Co., Ltd. |
China |
|
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Changzhou Biomet Medical Devices Co. Ltd. |
China |
|
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Shanghai Biomet Business Consulting Co. Ltd. |
China |
|
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Zhejiang Biomet Medical Products Co. Ltd. |
China |
|
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Zimmer Biomet CBT |
China |
|
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Zimmer Dental (Shanghai) Medical Device Co. Ltd. |
China |
|
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Zimmer (Shanghai) Medical International Trading Co., Ltd. |
China |
|
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Zimmer Biomet Colombia SAS |
Colombia |
|
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IC Guided Surgery, SRL |
Costa Rica |
|
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Zimmer Biomet Centroamerica SA |
Costa Rica |
|
|
Zimmer Czech sro |
Czech Republic |
|
|
Zimmer Biomet Denmark ApS |
Denmark |
|
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Zimmer Biomet Finland Oy |
Finland |
|
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Biomet France Sarl |
France |
|
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LDR Médical S.A.S. |
France |
|
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Medtech SA |
France |
|
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Zimmer Biomet France SAS |
France |
|
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Zimmer Biomet France Holdings SAS |
France |
|
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Zimmer Dental SAS |
France |
|
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Zimmer France Manufacturing Sarl |
France |
|
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Zimmer Spine SAS |
France |
|
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Biomet Deutschland GmbH |
Germany |
|
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Biomet Deutschland Holding GmbH |
Germany |
|
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Biomet Healthcare Management GmbH |
Germany |
|
|
Zimmer Biomet Deutschland GmbH |
Germany |
|
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Zimmer Dental GmbH |
Germany |
|
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Zimmer Germany Holdings GmbH |
Germany |
|
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Zimmer International Logistics GmbH |
Germany |
|
|
Zfx GmbH |
Germany |
|
|
Zimmer Biomet Hellas SA |
Greece |
|
Name of Subsidiary1 |
Jurisdiction of Formation |
|
|
|
SM Re Ltd. |
Guernsey |
|
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Biomet Hong Kong Holding Ltd. |
Hong Kong |
|
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ZB Hong Kong CBT 2 Ltd. |
Hong Kong |
|
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ZB Hong Kong Holding Ltd. |
Hong Kong |
|
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ZB Hong Kong Ltd. |
Hong Kong |
|
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Zimmer Asia (HK) Ltd. |
Hong Kong |
|
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ZB Dental India Private Limited |
India |
|
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Zimmer India Private Ltd. |
India |
|
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Zimmer Biomet Ireland Limited |
Ireland |
|
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Zimmer Orthopedics Manufacturing Limited |
Ireland |
|
|
D.S. Comp Ltd. |
Israel |
|
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Zimmer Biomet Comp Ltd. |
Israel |
|
|
Zimmer Dental Ltd. |
Israel |
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3DIEMME Srl |
Italy |
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Lanx Srl |
Italy |
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Zimmer Dental Italy Srl |
Italy |
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Zimmer Biomet Italia Srl |
Italy |
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Zfx Innovation GmbH |
Italy |
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Zimmer Biomet Dental GK |
Japan |
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Zimmer Biomet GK |
Japan |
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Zimmer Biomet Korea Ltd. |
Korea |
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Zimmer Biomet OUS Holdings AG |
Liechtenstein |
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JERDS Luxembourg Holding Sarl |
Luxembourg |
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Zimmer Luxembourg Sarl |
Luxembourg |
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Zimmer Luxembourg II Sarl |
Luxembourg |
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Zimmer Medical Malaysia SDN BHD |
Malaysia |
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Biomet 3i Mexico S.A. de C.V. |
Mexico |
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Biomet Mexico S.A. de C.V. |
Mexico |
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Representaciones Zimmer Inc., S. de R.L. de C.V. |
Mexico |
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A&E Medical Concepts Holding B.V. |
Netherlands |
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A&E Medical Europe BV |
Netherlands |
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A&E Medical Europe Cooperatief U.A. |
Netherlands |
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Biomet 3i Netherlands B.V. |
Netherlands |
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Biomet C.V. |
Netherlands |
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Biomet Global Supply Chain Center B.V. |
Netherlands |
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Biomet Holdings B.V. |
Netherlands |
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Biomet Microfixation B.V. |
Netherlands |
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Medical Concepts Europe BV |
Netherlands |
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Medical Concepts Patents B.V. |
Netherlands |
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ZB COOP C.V. |
Netherlands |
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ZB (PW) Holdings B.V. |
Netherlands |
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Zimmer Biomet Asia Holding B.V. |
Netherlands |
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Zimmer Biomet Nederland B.V. |
Netherlands |
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Zimmer Biomet PW Global Holding B.V. |
Netherlands |
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Zimmer Manufacturing B.V. |
Netherlands |
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Zimmer Netherlands Cooperatief U.A. |
Netherlands |
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Zimmer Biomet New Zealand Company |
New Zealand |
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Zimmer Biomet Norway AS |
Norway |
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Zimmer Biomet Polska Sp. z.o.o |
Poland |
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Biomet 3i Portugal Lda |
Portugal |
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Zimmer Biomet Portugal Unipessoal, Lda |
Portugal |
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Biomet Orthopedics Puerto Rico, Inc. |
Puerto Rico |
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EBI Patient Care, Inc. |
Puerto Rico |
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Name of Subsidiary1 |
Jurisdiction of Formation |
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Lanx Puerto Rico, LLC |
Puerto Rico |
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Zimmer Manufacturing B.V. (branch) |
Puerto Rico |
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Zimmer Biomet Romania S.R.L. |
Romania |
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Zimmer CIS Ltd. |
Russia |
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Zimmer Biomet Asel Alarabiya Limited Company |
Saudi Arabia |
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Zimmer Biomet Asia Holdings Pte. Ltd. |
Singapore |
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Zimmer Pte. Ltd. |
Singapore |
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Zimmer Slovakia sro |
Slovakia |
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Zimmer Biomet South Africa (Pty) Ltd. |
South Africa |
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Biomet 3i Dental Iberica SL |
Spain |
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Biomet Spain Orthopaedics S.L. |
Spain |
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Zimmer Biomet Spain S.L. |
Spain |
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Biomet 3i Nordic AB |
Sweden |
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Biomet Cementing Technologies AB |
Sweden |
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Scandimed Holding AB |
Sweden |
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Zimmer Biomet Sweden AB |
Sweden |
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Biomet 3i Switzerland GmbH |
Switzerland |
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Zimmer Biomet Global Holdings Switzerland GmbH |
Switzerland |
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Zimmer GmbH |
Switzerland |
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Zimmer GmbH Euro IP Branch (branch) |
Switzerland |
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Zimmer GmbH, Winterthur Branch (branch) |
Switzerland |
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Zimmer Surgical SA |
Switzerland |
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Zimmer Switzerland Holdings LLC |
Switzerland |
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Zimmer Switzerland Manufacturing GmbH |
Switzerland |
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Zimmer Biomet Taiwan Co., Ltd. |
Taiwan |
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Zimmer Biomet (Thailand) Co., Ltd. |
Thailand |
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Biomet 3i Turkey |
Turkey |
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Zimmer Biomet Tibbi Cihazlar Sanayi ve Ticaret Anonim Sirketi |
Turkey |
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Zimmer Gulf FZ LLC |
United Arab Emirates |
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Biomet 3i UK Ltd. |
United Kingdom |
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Biomet Acquisitions (Unlimited) |
United Kingdom |
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Biomet UK Ltd. |
United Kingdom |
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Biomet UK Healthcare Ltd. |
United Kingdom |
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ZB EMEA 1 LP |
United Kingdom |
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ZB EMEA Finance UK 1 Ltd. |
United Kingdom |
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ZB EMEA Finance UK 2 Ltd. |
United Kingdom |
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ZB EMEA Finance UK 3 Ltd. |
United Kingdom |
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ZB EMEA Finance UK 4 Ltd. |
United Kingdom |
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ZB UK Group Holdings Limited |
United Kingdom |
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Zimmer Biomet UK Ltd. |
United Kingdom |
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Zimmer Trustee Ltd. |
United Kingdom |
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Zimmer UK Limited |
United Kingdom |
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1 |
Excludes certain entities that have de minimis activity or are in the process of being liquidated or dissolved and that, if considered in the aggregate as a single subsidiary, would not constitute a significant subsidiary. |
EXHIBIT 31.1
CERTIFICATION PURSUANT TO RULE 13a-14(a)/15d-14(a) OF THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Bryan C. Hanson, certify that:
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1. |
I have reviewed this quarterly report on Form 10-Q of Zimmer Biomet Holdings, Inc.; |
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2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
|
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3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
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|
4. |
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d‑15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
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(a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
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(b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
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(c) |
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
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(d) |
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
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5. |
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors: |
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(a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
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(b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: August 3, 2021
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/s/ Bryan C. Hanson |
|
Bryan C. Hanson |
|
President and Chief Executive Officer |
EXHIBIT 31.2
CERTIFICATION PURSUANT TO RULE 13a-14(a)/15d-14(a) OF THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Suketu Upadhyay, certify that:
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1. |
I have reviewed this quarterly report on Form 10-Q of Zimmer Biomet Holdings, Inc.; |
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2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
|
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3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
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4. |
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d‑15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
|
|
(a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
|
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(b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
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(c) |
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
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(d) |
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
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5. |
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors: |
|
|
(a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
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|
(b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: August 3, 2021
|
/s/ Suketu Upadhyay |
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Suketu Upadhyay |
|
Executive Vice President and Chief Financial Officer |
Exhibit 32
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES‑OXLEY ACT OF 2002
In connection with the Quarterly Report on Form 10-Q of Zimmer Biomet Holdings, Inc. (the "Company") for the period ended June 30, 2021 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), each of the undersigned certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:
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(1) |
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
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(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
|
/s/ Bryan C. Hanson |
|
Bryan C. Hanson |
|
President and Chief Executive Officer |
|
August 3, 2021 |
|
/s/ Suketu Upadhyay |
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Suketu Upadhyay |
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Executive Vice President and Chief Financial Officer |
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August 3, 2021 |

Zimmer GmbH