Compensation Agreement between Zimmer Holdings, Inc. and John S. Loveman-Krelle (April 13, 2001)

Summary

This agreement outlines the compensation terms for John S. Loveman-Krelle upon his appointment as President Asia of Zimmer Holdings, Inc., effective April 15, 2001. He will receive an annual base salary of $250,000 and a target bonus of 45% of his base salary. Additionally, within 30 days after Zimmer's spin-off, he will be granted stock options valued at $410,000, vesting over four years. The agreement supplements a prior letter dated February 21, 2001, and all previous terms remain unchanged.

EX-10.14 19 a2063562zex-10_14.txt COMPENSATION AGREEMENT/LOVEMAN-KRELLE Exhibit 10.14 April 13, 2001 John S. Loveman-Krelle C/O Zimmer, Inc. Warsaw, IN 46582 PERSONAL AND CONFIDENTIAL Dear John: The purpose of this letter is to summarize the terms of your compensation as of April 15, 2001 contingent upon your assuming the position of President Asia - Zimmer Holdings, Inc. Please note that these arrangements are supplemental to the terms and conditions of the letter agreement you received from George P. Kooluris, dated February 21, 2001. All terms and conditions presented in the February 21, 2001 letter agreement remain unchanged. CASH COMPENSATION Your annual base salary will be $250,000 and you will have a target bonus of 45% of base salary ($112,500). These compensation arrangements will be effective April 15, 2001. STOCK OPTION AWARD Effective within 30 days following the date of the spin-off of Zimmer, you will receive an option to purchase shares of Zimmer stock with an economic value at the time of grant of $410,000 using a generally accepted valuation methodology. This option will be issued under a new option and equity compensation plan (the "Zimmer Stock Incentive Plan") that will be adopted by Zimmer's Board of Directors. Your option will vest in equal installments over a period of four years provided you remain employed with Zimmer during that time, or as provided otherwise under the Zimmer Stock Incentive Plan. The exercise price will equal the fair market value of Zimmer stock at the time the option is granted. Please contact me if you have any questions concerning the contents of this letter. My telephone number is ###-###-####. Very truly yours, Richard C. Lodato Vice President Global Compensation Bristol-Myers Squibb Company JOHN S. LOVEMAN-KRELLE APRIL 13, 2001 PAGE 2 OF 2 cc: Charles G. Tharp Senior Vice President Human Resources John S. Loveman-Krelle Zimmer, Inc. AGREED TO AND ACCEPTED: - ------------------------------- DATE: -------------------------