Document:

Exhibit 10.1

SEVERANCE AND CHANGE IN CONTROL AGREEMENT

THIS
AGREEMENT, dated as of September 20, 2006, is made by and between Biomet, Inc.,
an Indiana corporation (the “Company”), and Daniel P. Hann (the “Executive”).

Recitals

A.            The Company
considers it essential to the best interests of its shareholders to foster the
continuous employment of certain key management personnel, including the
Executive who is currently serving as interim President and Chief Executive
Officer.

B.            The Board recognizes
that, as is the case with many publicly-held corporations, the possibility of a
Change in Control 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 certain key management personnel to the detriment of the Company
and its shareholders.

C.            In addition, the
Board recognizes that the service of the Executive as President and Chief
Executive Officer on an interim basis raises questions of uncertainty that may
result in the distraction of the Executive to the detriment of the Company and
its shareholders.

D.            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, among other things,
the possibility of a Change in Control.

E.             The parties intend
that no amount or benefit will be payable under this Agreement unless (1) the
Executive terminates his employment for Pre-CIC Good Reason or (2) both of the
following events occur:  (i) a Change in
Control occurs; and (ii) the Executive’s employment with the Company is
terminated as provided in this Agreement.

AGREEMENT

In
consideration of the premises and the mutual covenants and agreements set forth
below, the Company and the Executive agree as follows:

ARTICLE I

Term of Agreement

Section 1.01   Term.  The “Term” of this Agreement is the
period commencing on the date hereof and ending on the second anniversary of
the date hereof; provided, however, that commencing on the date one year after
the date hereof, and on each annual anniversary of such date (such date and
each annual anniversary thereof shall be hereinafter referred to as the “Renewal
Date”), unless previously terminated, the Term shall be automatically
extended so as to terminate two years from such Renewal Date, unless at least
60 days prior to the Renewal Date the Board shall give notice to the Executive
that the Term not be so extended. 
Notwithstanding any notice to the Executive that the Term shall not be
extended, if a Change in Control occurs prior to the expiration of the Term,
then the Term shall be automatically extended so as to expire two years from
the date of such Change in Control.

Section 1.02   Post-Change
in Control Employment Period. 
Subject to the terms and conditions of this Agreement, the Company
hereby agrees to continue the Executive in its employ, and the Executive hereby
agrees to remain in the employ of the Company for the period commencing on the
first date on 

 

which a Change in Control occurs during the Term and ending on the
second anniversary of such date (the “Post-CIC Employment Period”).

ARTICLE II

Termination of Employment

Section 2.01   Death
or Disability. The Executive’s employment shall terminate automatically
upon the Executive’s death during the Term. If the Company determines in good
faith that the Disability (pursuant to the definition of Disability set forth
below) of the Executive has occurred during the Term, it may give to the
Executive written notice in accordance with Article VII of this Agreement of
its intention to terminate the Executive’s employment. In such event, the
Executive’s employment with the Company shall terminate effective on the 30th
day after receipt of such notice by the Executive (the “Disability Effective
Date”), provided that, within the thirty days after such receipt, the
Executive shall not have returned to full-time performance of the Executive’s
duties. For purposes of this Agreement, “Disability” shall mean the
absence of the Executive from the Executive’s duties with the Company on a
full-time basis for 180 consecutive business days as a result of incapacity due
to mental or physical illness, which is determined to be a disability pursuant
to the Company’s then existing long term disability plan or, in the absence of
such a plan, a disability determined to be total and permanent by a physician
selected by the Company and acceptable to the Executive or the Executive’s
legal representative.

Section 2.02   Cause.  The Company may terminate the Executive’s
employment during the Term for Cause.

Section 2.03   Good
Reason.  The Executive’s employment
may be terminated by the Executive for Pre-CIC Good Reason or Post-CIC Good
Reason.

Section 2.04   Notice
of Termination. Any termination by the Company for Cause, or by the
Executive for Pre-CIC Good Reason or Post-CIC Good Reason, shall be
communicated by Notice of Termination to the other party hereto given in
accordance with Article VII of this Agreement. For purposes of this Agreement,
a “Notice of Termination” means a written notice which (i) indicates the
specific termination provision in this Agreement relied upon, (ii) to the extent
applicable, sets forth in reasonable detail the facts and circumstances claimed
to provide a basis for termination of the Executive’s employment under the
provision so indicated and (iii) if the Date of Termination (as defined below)
is other than the date of receipt of such notice, specifies the termination
date. The failure by the Executive or the Company to set forth in the Notice of
Termination any fact or circumstance which contributes to a showing of Pre-CIC
Good Reason or Post-CIC Good Reason or Cause shall not waive any right of the
Executive or the Company, respectively, hereunder or preclude the Executive or
the Company, respectively, from asserting such fact or circumstance in
enforcing the Executive’s or the Company’s rights hereunder.

Section 2.05   Date
of Termination. “Date of Termination” means (i) if the Executive’s
employment is terminated by the Company for Cause, or by the Executive for
Pre-CIC Good Reason or Post-CIC Good Reason, the date of receipt of the Notice
of Termination or any later date up to six months thereafter specified therein,
as the case may be, (ii) if the Executive’s employment is terminated by the
Company other than for Cause or Disability, the Date of Termination shall be
the date on which the Company notifies the Executive of such termination or any
later date specified therein within 30 days of such notice and (iii) if the
Executive’s employment is terminated by reason of death or Disability, the Date
of Termination shall be the date of death of the Executive or the Disability
Effective Date, as the case may be.

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ARTICLE III

Obligations of the Company Upon Termination

Section 3.01   Post-CIC
Good Reason; Other Than for Cause or Disability. If, during the Post-CIC
Employment Period, the Executive shall terminate employment for Post-CIC Good
Reason or the Company shall terminate the Executive’s employment other than for
Cause or Disability (entitling him to benefits under the Company’s long-term
disability plan, after any applicable waiting period):

(a)           The Company shall
pay to the Executive in a lump sum in cash on the tenth (10) Business Day
following the Date of Termination the aggregate of the following amounts:

(i)            the
sum of (1) the Executive’s Annual Base Salary (which for this purpose shall
include any allowance for perquisites that is paid directly to the Executive)
through the end of the fiscal year containing the Date of Termination; (2) an
amount equal to (x) the higher of the target bonus amount or the bonus actually
paid to the Executive under the Company’s incentive bonus plan (or any
comparable successor plan(s)) for the fiscal year of the Company prior to the
Date of Termination (or the first date on which a Change in Control occurs, if
such date is earlier) or (y) the target bonus amount payable to the Executive
under such plan(s) for the fiscal year of the Company which contains the Date
of Termination, whichever of (x) or (y) is higher (the “Target Bonus”);
(3) the total contributions (other than salary reduction contributions) made by
the Company to all qualified retirement plans on behalf of the Executive
through the end of the fiscal year containing the Date of Termination; (4) the
total car allowance contributions made by the Company to the Executive through
the end of the fiscal year containing the Date of Termination;  and (5) any accrued vacation or other pay not
theretofore paid (the sum of the amounts described in clauses (1), (2), (3),
(4) and (5) are herein referred to as the “Accrued Obligations”); and

(ii)           the
amount equal to the product of (1) three and (2) the sum of (w) the Executive’s
Annual Base Salary (which for this purpose shall include any allowance for
perquisites that is paid directly to the Executive) and (x) the higher of (aa)
the Target Bonus and (bb) the highest annual incentive bonus earned by
Executive during the last three (3) completed fiscal years of the Company
immediately preceding Executive’s Date of Termination (annualized in the event
Executive was not employed by the Company for the whole of any such fiscal
year), with the product of (1) and (2) reduced by the amounts paid, if any, to
the Executive pursuant to any other contractual arrangement with the Executive
or plan providing coverage to the Executive as a result of such termination;
(y)  the total contributions (other than
salary reduction contributions) made by the Company to all qualified retirement
plans on behalf of the Executive for the calendar year immediately preceding
the calendar year in which the Change in Control occurs; and (z) the total car
allowance contributions made by the Company to the Executive for the calendar
year immediately preceding the calendar year in which the Change in Control
occurs.

(b)           The Company shall
provide the following benefit payments to the Executive:

(i)            For a 24-month
period after the Date of Termination, the Company will arrange to provide the
Executive with life insurance benefits and long-term disability benefits
substantially similar to those that the Executive was receiving from the
Company immediately prior to the Date of Termination (or the first date on
which a Change in Control occurs, if such date is earlier). Life insurance
benefits and long-term disability benefits otherwise receivable by the
Executive pursuant to the preceding sentence will be reduced to the extent comparable
benefits are actually received by or made available to the Executive by any
source other than the Company without greater cost to him than as provided by
the Company during the 24-month period following the Executive’s termination of
employment (and the Executive will report to the Company any such benefits
actually received by or 

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made
available to the Executive). If, as of the Date of Termination, the Company
reasonably determines that the continued life insurance coverage and/or
long-term disability coverage required by this Section 3.01(b) is not available
from the Company’s group insurance carrier, cannot be procured from another
carrier, and cannot be provided on a self-insured basis without adverse tax
consequences to the Executive or his death beneficiary, then, in lieu of
continued life insurance coverage and/or long-term disability coverage, the
Company will pay the Executive a lump sum payment, in cash, equal to 24 times
the full monthly premium payable to the Company’s group insurance carrier for
comparable coverage for an executive employee under the Company’s group life
insurance plan or long-term disability plan then in effect.

(ii)           The
Company will offer the Executive and any eligible family members the
opportunity to elect to continue medical and dental coverage pursuant to the
continuation coverage requirements of the Consolidated Omnibus Budget
Reconciliation Act of 1985, as amended (“COBRA”). The Executive will be
responsible for paying the required monthly premium for that coverage, but the
Company will pay the Executive a lump sum cash stipend equal to 24 times the
monthly premium then charged to qualified beneficiaries for full family COBRA
continuation coverage under the Company’s medical and dental plans, which the
Executive may choose to use for the payment of COBRA premiums. The Company will
pay the stipend to the Executive whether or not the Executive or anyone in his
family elects COBRA continuation coverage, whether or not the Executive
continues COBRA coverage for a full 24 months, and whether or not the Executive
receives health coverage from another employer while the Executive is receiving
COBRA continuation coverage.

(c)           All outstanding
Options will become immediately vested and exercisable (to the extent not yet
vested and exercisable as of the Date of Termination) and shall remain
exercisable until the earlier of (i) the expiration of the option term or (ii)
five (5) years after the Date of Termination. To the extent not otherwise
provided under the written agreement, if any, 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.

(d)           For 12 months
following the Date of Termination the Company shall, at its sole expense,
reimburse the Executive for the cost (but not in excess of $25,000 in the aggregate), as incurred, for
outplacement services the scope and provider of which shall be selected by the
Executive in Executive’s sole discretion. 

(e)           To the extent not
theretofore paid or provided, the Company shall timely pay or provide to Executive
any other amounts or benefits required to be paid or provided or which
Executive is eligible to receive under any plan, program, policy, practice,
contract or agreement of the Company (such other amounts and benefits shall be
hereinafter referred to as the “Other Benefits”).

Section 3.02           Severance
Payment to the Executive in the event of Termination by the Company prior to a
Change in Control or for Termination by the Executive for Pre-CIC Good Reason.  If, at any time during the Term the Company
appoints a President and CEO other than the Executive, and (i) the Company
terminates the Executive’s employment other than for Cause, Death or Disability
or (ii) the Executive elects to terminate employment for Pre-CIC Good Reason,
the Executive shall be entitled to the following on the tenth (10) Business Day
following (A) the payments specified in Sections 3.01(a), (d) and (e) (to the
extent not previously paid), (B) the benefits specified in Section 3.01(b) (to
the extent not previously provided) (or the after-tax equivalent thereof to the
extent that such benefits have not been or are not provided in kind), (C) to
the extent that the Executive has outstanding any unexercised stock options and
other stock-based awards, the provisions of Section 3.01(c) shall apply to
them, and (D) in respect of any stock options or other stock based awards that
were forfeited by the Executive as a result of 

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his
termination of employment but would have vested had Section 3.01(c) applied,
such awards shall be reinstated (or if not reinstated, the Executive shall be
paid in cash the fair value of such award.

Section 3.03           Death.
If the Executive’s employment is terminated by reason of the Executive’s death
during the Term and prior to a Change in Control, this Agreement shall terminate
without further obligations to the Executive’s legal representatives under this
Agreement. Anything in this Agreement to the contrary notwithstanding, if the
Executive’s death occurs after a Change in Control, then this Section 3.03
shall not apply and the Executive’s estate and/or beneficiaries shall be
entitled to the benefits of Section 3.01.

Section 3.04           Disability.
If the Executive’s employment is terminated by reason of the Executive’s
Disability during the Term, this Agreement shall terminate without further
obligations to the Executive, other than for payment of Accrued Obligations and
the timely payment or provision of Other Benefits. Accrued Obligations shall be
paid to the Executive in a lump sum in cash on the twentieth (20th) Business Day
following the Date of Termination. The term “Other Benefits” as utilized in
this Section 3.04 shall include, without limitation, and the Executive shall be
entitled after the Disability Effective Date to receive, disability and other
benefits at least equal to the most favorable of those generally provided by
the Company and its affiliated companies to disabled executives and/or their
families in accordance with such plans, programs, practices and policies
relating to disability, if any, as in effect generally with respect to other
peer executives and their families at any time during the 120-day period
immediately preceding the Date of Termination (or the date on which a Change in
Control occurs, if such date is earlier) or, if more favorable to the Executive
and/or the Executive’s family, as in effect at any time thereafter generally
with respect to other peer executives of the Company and their families.

Section 3.05           Termination
in Anticipation of a Change in Control.

(a)           An “Anticipatory Termination” occurs if either

(i)            (1)
the Company terminates the Executive’s employment other than for Cause or
Disability prior to the date on which a Change in Control occurs, (2) it is
reasonably demonstrated by the Executive that such termination of employment
(x) was at the request or instruction of a third party who had taken steps
reasonably calculated to effect a Change in Control or (y) otherwise arose
within six months of, and was in connection with or in anticipation of, a
Change in Control, and (3) a Change in Control occurs, or 

(ii)           (1)
during the Term, an event occurs that would have constituted Post-CIC Good
Reason if the date on which a Change in Control occurs was deemed to be the
date immediately prior to the date of such event and the Executive terminated
his employment subsequent to such event, (2) the Executive can reasonably
demonstrate that such Post-CIC Good Reason event (x) was at the request or
instruction of a third party who had taken steps reasonably calculated to
effect a Change in Control or (y) otherwise arose within six months of, and was
in connection with or in anticipation of, a Change in Control, and (3) a Change
in Control occurs. 

(iii)          For purposes of
clauses (i)(1)(y) and (ii)(1)(y) of this Section 3.05(a), it shall be presumed
that such event was in connection with or in anticipation of a Change in
Control unless the Company establishes otherwise by clear and convincing
evidence.

(b)           If the Executive has
reason to believe that an Anticipatory Termination may have occurred, he shall
provide a notice setting forth such belief in accordance with Article VII of
this Agreement within 120 days after a Change in Control has occurred. Upon an
Anticipatory Termination, the Executive shall be entitled to (A) the payments
specified in Sections 3.01(a),(d) and (e) (to the extent 

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not
previously paid), (B) the benefits specified in Section 3.01(b) (to the extent
not previously provided) (or the after-tax equivalent thereof to the extent
that such benefits have not been or are not provided in kind), (C) to the
extent that the Executive has outstanding any unexercised stock options and
other stock-based awards, the provisions of Section 3.01(c) shall apply to
them, (D) in respect of any stock options or other stock based awards that were
forfeited by the Executive as a result of his termination of employment but
would have vested had Section 3.01(c) applied, such awards shall be reinstated
(or if not reinstated, the Executive shall be paid in cash the fair value of
such award), and (E) liquidated damages of $25,000 for penalties associated
with the Anticipatory Termination. For the purposes of this Section 3.05(b),
the Executive’s Date of Termination shall be deemed to be his last date of
employment by the Company.

Section 3.06           Nonexclusivity
of Rights.  Nothing in this Agreement
shall prevent or limit the Executive’s continuing or future participation in
any plan, program, policy or practice provided by the Company and for which the
Executive may qualify, nor, subject to Section 8.02, shall anything herein
limit or otherwise affect such rights as the Executive may have under any
contract or agreement with the Company. Amounts which are vested benefits or
which the Executive is otherwise entitled to receive under any plan, policy,
practice, or program of or any contract or agreement with the Company at or
subsequent to the Date of Termination shall be payable in accordance with such
plan, policy, practice or program or contract or agreement except as explicitly
modified by this Agreement.

Section 3.07           Certain
Additional Payments by the Company.

(a)           Anything in this
Agreement or in any other agreement between the Company and the Executive or in
any stock option or other benefit plan to the contrary notwithstanding and
except as set forth below, in the event it shall be determined that any payment
or distribution by the Company to or for the benefit of the Executive (whether
paid or payable or distributed or distributable pursuant to the terms of this
Agreement or otherwise, but determined without regard to any additional
payments required under this Section 3.06) (a “Payment”) would be
subject to the excise tax imposed by Section 4999 of the Code or any interest
or penalties are incurred by the Executive with respect to such excise tax
(such excise tax, together with any such interest and penalties, are
hereinafter collectively referred to as the “Excise Tax”), then the
Executive shall be entitled to receive an additional payment (a “Gross-Up
Payment”) in an amount such that after payment by the Executive of all
taxes (including any interest or penalties imposed with respect to such taxes),
including, without limitation, any income taxes (and any interest and penalties
imposed with respect thereto) and Excise Tax imposed upon the Gross-Up Payment,
the Executive retains an amount of the Gross-Up Payment equal to the Excise Tax
imposed upon the Payments.

(b)           All determinations
required to be made under this Section 3.07, including whether and when a
Gross-Up Payment is required and the amount of such Gross-Up Payment and the
assumptions to be utilized in arriving at such determination, shall be made by
the Accounting Firm, which shall provide detailed supporting calculations both
to the Company and the Executive within fifteen business days of the receipt of
notice from the Executive that there has been a Payment, or such earlier time
as is requested by the Company. In the event that the Accounting Firm is
serving as accountant or auditor for the Company or the individual, entity or
group effecting the Change in Control, the Executive shall appoint another
nationally recognized accounting firm to make the determinations required
hereunder (which accounting firm shall then be referred to as the Accounting
Firm hereunder). All fees and expenses of the Accounting Firm shall be borne
solely by the Company. Any Gross-Up Payment, as determined pursuant to this
Section 3.07, shall be paid by the Company to the Executive in the calendar
year that includes the date on which the Payment was made; provided, however,
that if a payment is made after December 1 of any calendar year, then the
Gross-Up Payment, as determined pursuant to this Section 3.07, shall be paid by
the Company to the Executive in the immediately succeeding calendar year.  

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In either case, the Gross-Up Payment shall be made
on the later of the fifth day following the Accounting Firm’s determination and the first day of the applicable
calendar year. Any determination
by the Accounting Firm shall be binding upon the Company and the Executive.

Section 3.08           Tax
Matters. 
Notwithstanding anything contained in this Agreement (or any other
agreement between Executive and the Company or any of its subsidiaries) to the
contrary, the Company and its subsidiaries shall be entitled to deduct and
withhold any amounts required by the Code or under any state or local law
relating to compensation from any payment amounts distributable or due to
Executive from the Company or any of its subsidiaries, including from Executive’s
wages, compensation, or benefits, as may be required by the Code or under any
state or local law relating to compensation. 
The Company and the Executive agree to use commercially reasonable
efforts to ensure that this Agreement complies with Section 409A of the Code such
that Executive is not subject to any additional taxes, interest or penalties
under such provisions. In furtherance thereof, if payment or provision of any
amount or benefit hereunder at the time specified in this Agreement would
subject such amount or benefit to any additional tax under Section 409A of the
Code, the payment or provision of such amount or benefit shall be postponed to
the earliest commencement date on which the payment or the provision of such
amount or benefit could be made without incurring such additional tax
(including paying any severance that is delayed in a lump sum upon the earliest
possible payment date which is consistent with Section 409A of the Code).  Without limiting the generality of the
immediately preceding sentence, if payment or provision of any amount or benefit
hereunder at the time specified in this Agreement would fail to comply with the
provisions of Section 409A of the Code because the Executive is treated as a “specified”
employee (within the meaning of Section 409A(a)(2)(B)(i) of the Code), then
such amount or benefit shall not be paid or provided at the time otherwise
specified in this Agreement, but instead shall be paid or provided on the date
that is six months after the date of separation from service (or, if earlier,
the date of death of the Executive). In addition, to the extent that any
regulations or guidance issued under Code §409A (after application of the
previous provision of this paragraph) would result in Executive being subject
to the payment of interest or any additional tax under Code §409A, the Company
and the Executive agree, to the extent reasonably possible, to amend this
Agreement in order to avoid the imposition of any such interest or additional
tax under Code §409A, which amendment shall have the minimum economic effect
necessary on Executive and be reasonably determined in good faith by the
Company and the Executive.

ARTICLE IV

No Mitigation

The Company agrees that, if the Executive’s employment by the Company
is terminated during the term of this Agreement, the Executive is not required
to seek other employment or to attempt in any way to reduce any amounts payable
to the Executive by the Company pursuant to Article III. Further, the amount of
any payment or benefit provided for in Article III (other than Section
3.01(b)(i)) will not be reduced by any compensation earned by the Executive as
the result of employment by another employer, by retirement benefits, by offset
against any amount claimed to be owed by the Executive to the Company, or
otherwise.

ARTICLE V

The Executive’s Covenants

Section 5.01   Noncompetition
Agreement.  In consideration for this
Agreement, the Executive will execute, concurrent with the execution of this
Agreement, a noncompetition agreement in the form attached to this Agreement as
Exhibit A. In the event of termination of this Agreement as
provided in Section 1.01, the Noncompetition Agreement shall survive
termination.

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Section 5.02   Confidential
Information.  The Executive shall
hold in a fiduciary capacity for the benefit of the Company all material proprietary
information, knowledge or data relating to the Company or any of its affiliated
companies, and their respective businesses, which shall have been obtained by
the Executive during the Executive’s employment by the Company or any of its
affiliated companies and which shall not be or become public knowledge (other
than by acts by the Executive or representatives of the Executive in violation
of this Agreement). After termination of the Executive’s employment with the
Company, the Executive shall not, without the prior written consent of the
Company or as may otherwise be required by law or legal process, communicate or
divulge any such information, knowledge or data to anyone other than the
Company and those designated by it. In no event shall an asserted violation of
the provisions of this Section 5.02 constitute a basis for denying, deferring
or withholding any amounts or benefits payable to the Executive under this
Agreement.

Section 5.03   General
Release.  The Executive agrees that,
notwithstanding any other provision of this Agreement, the Executive will not
be eligible for any payments under Section 3.01 unless the Executive timely
signs, and does not timely revoke, a General Release in substantially the form
attached to this Agreement as Exhibit B.

ARTICLE VI

Successors; Binding
Agreement

Section 6.01   Obligation
of Successors.  In addition to any
obligations imposed by law upon any successor to the Company, the Company will
require any successor (whether direct or indirect, by purchase, merger, consolidation,
or otherwise) to all or substantially all of the business and/or assets of the
Company to expressly assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform it
if no succession had occurred. Failure of the Company to obtain such an
assumption and agreement prior to the effectiveness of any such succession will
be a breach of this Agreement.

Section 6.02   Enforcement
Rights of Others.  This Agreement
will inure to the benefit of and be enforceable by the Executive’s personal or
legal representatives, executors, administrators, successors, heirs,
distributees, devisees, and legatees. If the Executive dies while any amount is
still payable to the Executive under this Agreement, (other than amounts that,
by their terms, terminate upon the Executive’s death), then, unless otherwise
provided in this Agreement, all such amounts will be paid in accordance with
the terms of this Agreement to the executors, personal representatives, or administrators
of the Executive’s estate.

ARTICLE VII

Notices

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 United States registered mail, return receipt
requested, postage prepaid, 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 VIII, except that notice of change of
address will be effective only upon actual receipt:

	
  To the Company:

  	
  To the Executive:

  
	
  Biomet, Inc.

  56 E. Bell Drive

  P. O. Box 587

  Warsaw, Indiana 46581-0587

  	
  Daniel Hann

                                                         

                                                         

  

 

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ARTICLE VIII

Miscellaneous; At-Will

Section 8.01   Miscellaneous.  No provision of this Agreement may be
modified, waived, or discharged unless the waiver, modification, or discharge
is agreed to in writing and signed by the Executive and an officer of the
Company specifically designated by the Board. No waiver by either party at any
time of any breach by the other party of, or compliance with, any condition or
provision of this Agreement to be performed by the other party will be deemed a
waiver of similar or dissimilar provisions or conditions at the same or at any
other time. Neither party has made any agreements or representations, oral or
otherwise, express or implied, with respect to the subject matter of this
Agreement that are not expressly set forth in this Agreement. The validity,
interpretation, construction, and performance of this Agreement will be
governed by the laws of the State of Indiana. All references to sections of the
Exchange Act or the Code will be deemed also to refer to any successor
provisions to those sections. Any payments provided for under this Agreement
will be paid net of any applicable withholding required under federal, state,
or local law and any additional withholding to which the Executive has agreed.
The obligations of the Company and the Executive under Articles III, IV, and VI
will survive the expiration of this Agreement, if applicable.

Section 8.02   At-Will.  The Executive and the Company acknowledge
that, except as may otherwise be provided under any other written agreement
between the Executive and the Company, the employment of the Executive by the
Company is “at will,” and the Executive’s employment may be terminated by
either the Executive or the Company at any time.

ARTICLE IX

Validity

The
invalidity or unenforceability of any provision of this Agreement will not
affect the validity or enforceability of any other provision of this Agreement,
which will remain in full force and effect.

ARTICLE X

Counterparts

This
Agreement may be executed in several counterparts, each of which will be deemed
to be an original but all of which together will constitute one and the same
instrument.

ARTICLE XI

Settlement of Disputes; Arbitration

All
claims by the Executive for benefits under this Agreement must be in writing
and will be directed to and determined by the Board. Any denial by the Board of
a claim for benefits under this Agreement will be delivered to the Executive in
writing and will set forth the specific reasons for the denial and the specific
provisions of this Agreement relied upon. The Board will afford a reasonable
opportunity to the Executive for a review of the decision denying a claim and will
further allow the Executive to appeal to the Board a decision of the Board
within 60 days after notification by the Board that the Executive’s claim
has been denied. Any further dispute or controversy arising under or in
connection with this Agreement will be settled exclusively by arbitration in
Warsaw, Indiana in accordance with the rules of the American Arbitration
Association then in effect. Judgment may be entered on the arbitrator’s award
in any court having jurisdiction. Each party will bear its own expenses in the
arbitration for attorneys’ fees, for its witnesses, and for other expenses of
presenting its case. Other 

 9
 

 

arbitration
costs, including arbitrators’ fees, administrative fees, and fees for records
or transcripts, will be borne equally by the parties. Notwithstanding anything
in this Article to the contrary, if the Executive prevails with respect to any
dispute submitted to arbitration under this Article, the Company will reimburse
or pay all reasonable legal fees and expenses that the Executive incurred in
connection with that dispute as required by Section 3.08.

ARTICLE XII

Definitions

For purposes of this Agreement, the following terms will have the
meanings indicated below:

“401(k) Plan” means the Biomet, Inc. Profit Sharing Plan and Trust
qualified under section 401(k) of the Code and any comparable successor
plan(s).

“Accounting Firm” means such nationally recognized certified
public accounting firm as may be designated by the Executive.   “Accrued Obligations” shall have the
meaning described in Section 3.01(a)(i).

“Annual Base Salary” means the Executive’s annual base salary as
in effect immediately prior to the date of the Change in Control.

“Anticipatory Termination” shall have the meaning described in
Section 3.04.

“Beneficial Owner” has the meaning stated in Rule 13d-3
under the Exchange Act.

“Board” means the Board of Directors of the Company.

“Business Day” means any day other than a Saturday, Sunday or
other day on which commercial banks are authorized to close under the Laws of,
or are in fact closed in, the State of Indiana.

“Cause” for termination by the Company of the Executive’s
employment, after any Change in Control, means (1) 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 Post-CIC Good Reason
or Pre-CIC Good Reason or by the Executive pursuant to Sections 3.01 and 3.02)
for a period of at least 30 consecutive days after a written demand for
substantial performance is delivered to the Executive by the Board, which
demand specifically identifies the manner in which the Board believes that the
Executive has not substantially performed the Executive’s duties; (2) the
Executive willfully engages in conduct that is demonstrably and materially
injurious to the Company or its subsidiaries, monetarily or otherwise; or (3) the
Executive is convicted of, or has entered a plea of no contest to, a felony.
For purposes of clauses (1) and (2) of this definition, no act, or
failure to act, on the Executive’s part will be deemed “willful” unless it is
done, or omitted to be done, by the Executive not in good faith and without
reasonable belief that the Executive’s act, or failure to act, was in the best
interest of the Company.

“Change in Control” will be deemed to have occurred if any of
the following events occur:

(a)           Individuals who, as
of September 20, 2006, constitute the Board (the “Incumbent Directors”)
cease for any reason to constitute at least a majority of such Board, provided
that any person becoming a director after September 20, 2006 and whose election
or nomination for election was approved by a vote of at least a majority of the
Incumbent Directors then on the Board shall be deemed an 

 10
 

 

Incumbent Director; provided, however, that no individual
initially elected or nominated as a director of the Company as a result of an
actual or threatened election contest with respect to the election or removal
of directors (“Election Contest”) or other actual or threatened
solicitation of proxies or consents by or on behalf of any Person other than
the Board (“Proxy Contest”), including by reason of any agreement
intended to avoid or settle any Election Contest or Proxy Contest, shall be
deemed an Incumbent Director; or

(b)           Any Person is or
becomes a Beneficial Owner directly or indirectly, of either (A) 20% or more of
the then-outstanding Company Shares or (B) securities of the Company
representing 20% or more of the combined voting power of the Company’s then
outstanding securities eligible to vote for the election of directors (the “Company
Voting Securities”); provided, however, that for purposes of
this subsection (b), the following acquisitions shall not constitute a Change
in Control: (i) an acquisition directly from the Company, (ii) an acquisition
by the Company or a subsidiary of the Company, or (iii) an acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the Company or any
subsidiary of the Company; or

(c)           The consummation of
a reorganization, merger, consolidation, statutory share exchange or similar
form of corporate transaction involving the Company or a subsidiary (a “Reorganization”),
or the sale or other disposition of all or substantially all of the Company’s
assets (a “Sale”) or the acquisition of assets or stock of another
corporation (an “Acquisition”), unless immediately following such
Reorganization, Sale or Acquisition: (A) all or substantially all of the
individuals and entities who were the beneficial owners, respectively, of the
outstanding Company Shares and outstanding Company Voting Securities
immediately prior to such Reorganization, Sale or Acquisition beneficially own,
directly or indirectly, more than 50% of, respectively, the then outstanding
shares of common stock and the combined voting power of the then outstanding
voting securities entitled to vote generally in the election of directors, as
the case may be, of the corporation resulting from such Reorganization, Sale or
Acquisition (including, without limitation, a corporation which as a result of
such transaction owns the Company or all or substantially all of the Company’s
assets or stock either directly or through one or more subsidiaries, the “Surviving
Corporation”) in substantially the same proportions as their ownership,
immediately prior to such Reorganization, Sale or Acquisition, of the
outstanding Company Shares and the outstanding Company Voting Securities, as
the case may be, and (B) no person (other than (i) the Company or any
subsidiary of the Company, (ii) the Surviving Corporation or its ultimate
parent corporation, or (iii) any employee benefit plan or related trust
sponsored or maintained by any of the foregoing) is the beneficial owner,
directly or indirectly, of 20% or more of the total common stock or 20% or more
of the total voting power of the outstanding voting securities eligible to
elect directors of the Surviving Corporation, and (C) at least a majority of
the members of the board of directors of the Surviving Corporation were
Incumbent Directors at the time of the Board’s approval of the execution of the
initial agreement providing for such Reorganization, Sale or Acquisition; or

(d)           Approval by the
shareowners of the Company of a complete liquidation or dissolution of the
Company.

“COBRA”
means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.

“Code”
means the Internal Revenue Code of 1986, as amended from time to time, and
interpretative rules and regulations.

“Company”
means Biomet, Inc., an Indiana corporation, and any successor to its business
and/or assets that assumes and agrees to perform this Agreement by operation of
law, or otherwise (except in determining whether or not any Change in Control
of the Company has occurred in connection with the succession).

 11
 

 

“Company Shares” means shares of common stock of the Company or
any equity securities into which those shares have been converted.

“Date of Termination” shall have the meaning described in
Section 2.05.

“Disability” shall have the meaning described in Section 2.01.

“Disability Effective Date” shall have the meaning described in
Section 2.01.

“Exchange Act” means the Securities Exchange Act of 1934, as
amended from time to time, and interpretive rules and regulations.

“Excise Tax” shall have the meaning described in Section 3.07(a).

“Executive” means Daniel P. Hann.

“Gross-Up Payment” shall have the meaning described in Section
3.07(a).

“Notice of Termination” shall have the meaning described in
Section 2.04.

“Options” means options for Shares granted to the Executive
under the Stock Option Plan.

“Other Benefits” shall have the meaning described in Section
3.01 (e), 3.02 or 3.03, as determined by the nature of the termination of the
Agreement, as described in each of those sections.

“Payment” shall have the meaning described in Section 3.07(a).

“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 Company or any of its
subsidiaries, (2) a trustee or other fiduciary holding securities under an
employee benefit plan of the 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 Company in substantially the same proportions as their
ownership of stock of the Company.

“Post-CIC Employment Period” shall have the meaning assigned in
Section 1.02.

“Post-CIC Good Reason” for termination by the Executive of the
Executive’s employment means the death of the Executive during the Post-CIC
Employment Period or 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, in each case during the Post-CIC Employment Period, unless, in
the case of any act or failure to act described in paragraph (i), (iv), (v),
(vi), or (viii) below, the act or failure to act is corrected prior to the
Date of Termination specified in the Executive’s Notice of Termination:

(i)            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;

(ii)           A
reduction by the Company in the Executive’s annual base salary and/or Target
Bonus as in effect on the date of this Agreement or as the same may be
increased from time to time;

 12
 

 

(iii)          The
Company’s requiring the Executive to be based more than 50 miles from the
Company’s offices at which the Executive is based prior to a Change in Control
(except for required travel on the Company’s business to an extent
substantially consistent with the Executive’s business travel obligations
immediately prior to the Change in Control), or, in the event the Executive
consents to any such relocation of his offices, the Company’s failure to
provide the Executive with all of the benefits of the Company’s historical
practices with respect to relocation of executive employees as in operation
immediately prior to the Change in Control;

(iv)          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 (4), the Executive’s annual base salary as in effect on the date
of this Agreement, or as it may be increased from time to time, and any
installment of the annual target bonus earned by the Executive) or to pay to
the Executive any portion of an installment of deferred compensation under any
deferred compensation program of the Company, within seven days of the date the
compensation is due;

(v)           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 Stock
Option Plan 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;

(vi)          The
Company’s failure to continue to provide the Executive with benefits
substantially similar to those enjoyed by the Executive under any of the
Company’s retirement plans (including, without limitation, the Company’s 401(k)
Plan, the Biomet, Inc. Employee Stock Bonus Plan, and such other life
insurance, medical, health and accident, or disability plans in which the
Executive was participating at the time of the Change in Control); the taking
of any action by the Company that would directly or indirectly materially
reduce any of those benefits or deprive the Executive of any material fringe
benefit enjoyed by the Executive at the time of a Change in Control; or the
Company’s failure to provide the Executive with the number of paid vacation
days  to which the Executive is entitled
on the basis of years of service with the Company in accordance with the
Company’s normal vacation policy in effect at the time of the Change in
Control;

(vii)         Any
purported termination of the Executive’s employment that is not effected
pursuant to a Notice of Termination satisfying the requirements of
Section 4.01; for purposes of this Agreement, no such purported
termination will be effective; or

(viii)        any
failure by the Company to comply with and satisfy Section 6.01 of this
Agreement.

The
Executive’s right to terminate the Executive’s employment for Post-CIC Good
Reason will not be affected by the Executive’s incapacity due to physical or
mental illness. The Executive’s continued employment will not constitute
consent to, or a waiver of rights with respect to, any act or failure to act
that constitutes Post-CIC Good Reason. 
Notwithstanding the foregoing, the occurrence of an event that would
otherwise constitute Post-CIC Good Reason will cease to be an event
constituting Post-CIC 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.

 13
 

 

“Pre-CIC
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, in
each case during the Term but prior to the Post-CIC Employment Period, unless,
in the case of any act or failure to act described in paragraphs (i) and (ii) below,
the act or failure to act is corrected prior to the Date of Termination
specified in the Executive’s Notice of Termination:

(ix)           The assignment of
the Executive to a position and duties inconsistent with the Executive’s status
as Senior Vice President and General Counsel, as those duties and that position
existed immediately prior to March 27, 2006 (the date Executive was appointed
interim President and Chief Executive Officer) or a substantial adverse
alteration in the nature or status of the Executive’s responsibilities from
those in effect immediately prior to such date; or

(x)            A reduction by the
Company in the Executive’s annual base salary and/or Target Bonus as in effect
on the date immediately prior to March 27, 2006 or as the same may have been
increased from time to time consistent with past practice had Executive not
been appointed interim President and Chief Executive Officer.

The
Executive’s right to terminate the Executive’s employment for Pre-CIC Good
Reason will not be affected by the Executive’s incapacity due to physical or
mental illness. The Executive’s continued employment will not constitute
consent to, or a waiver of rights with respect to, any act or failure to act
that constitutes Pre-CIC Good Reason. 
Notwithstanding the foregoing, the occurrence of an event that would
otherwise constitute Pre-CIC Good Reason will cease to be an event constituting
Pre-CIC 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.

“Renewal
Date” shall have the meaning described in Section 1.01.

“Shares”
means shares of the common stock of the Company.

“Stock
Option Plan” means the 1998 Biomet, Inc. Qualified and Non-Qualified Stock
Option Plan and any other equity compensation plan of the Company approved by
the Board and adopted by the shareholders of the Company.

“Target
Bonus” shall have the meaning described in Section 3.01(a)(i).

“Term”
shall have the meaning described in Section 1.01.

*    *    *

	
  EXECUTIVE

  	
  BIOMET, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Daniel P.
  Hann

  	
   

  	
  By:

  	
  /s/ L. Gene Tanner

  
	
  Daniel P. Hann

  	
  Name:

  	
  L. Gene Tanner

  
	
   

  	
  Its:

  	
  Director; Member of Compensation Committee

  
				

 

 14Exhibit 10.2

CHANGE IN CONTROL AGREEMENT

THIS
AGREEMENT, dated as of September 20, 2006, is made by and between Biomet, Inc.,
an Indiana corporation (the “Company”), and Garry L. England (the “Executive”).

Recitals

A.            The Company
considers it essential to the best interests of its shareholders to foster the
continuous employment of certain key management personnel, including the
Executive who is currently serving as Senior Vice President, Chief Operating
Officer, Domestic Operations, Biomet, Inc.

B.            The Board recognizes
that, as is the case with many publicly-held corporations, the possibility of a
Change in Control 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 certain key management personnel to the detriment of the Company
and its shareholders.

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, among other things,
the possibility of a Change in Control.

D.            The parties intend
that no amount or benefit will be payable under this Agreement unless both of
the following events occur: (i) a Change in Control occurs; and (ii) the
Executive’s employment with the Company is terminated as provided in this
Agreement.

AGREEMENT

In
consideration of the premises and the mutual covenants and agreements set forth
below, the Company and the Executive agree as follows:

ARTICLE I

Term of Agreement

Section 1.01   Term.
The “Term” of this Agreement is the period commencing on the date hereof
and ending on the second anniversary of the date hereof; provided, however,
that commencing on the date one year after the date hereof, and on each annual
anniversary of such date (such date and each annual anniversary thereof shall
be hereinafter referred to as the “Renewal Date”), unless previously
terminated, the Term shall be automatically extended so as to terminate two
years from such Renewal Date, unless at least 60 days prior to the Renewal Date
the Board shall give notice to the Executive that the Term not be so extended. Notwithstanding
any notice to the Executive that the Term shall not be extended, if a Change in
Control occurs prior to the expiration of the Term, then the Term shall be
automatically extended so as to expire two years from the date of such Change
in Control.

Section 1.02   Post-Change
in Control Employment Period. Subject to the terms and conditions of this
Agreement, the Company hereby agrees to continue the Executive in its employ,
and the Executive hereby agrees to remain in the employ of the Company for the
period commencing on the first date on which a Change in Control occurs during
the Term and ending on the second anniversary of such date (the “Post-CIC
Employment Period”).

 

ARTICLE II

Termination of Employment

Section 2.01   Death
or Disability. The Executive’s employment shall terminate automatically
upon the Executive’s death during the Term. If the Company determines in good
faith that the Disability (pursuant to the definition of Disability set forth
below) of the Executive has occurred during the Term, it may give to the
Executive written notice in accordance with Article VII of this Agreement of
its intention to terminate the Executive’s employment. In such event, the
Executive’s employment with the Company shall terminate effective on the 30th
day after receipt of such notice by the Executive (the “Disability Effective
Date”), provided that, within the thirty days after such receipt, the
Executive shall not have returned to full-time performance of the Executive’s
duties. For purposes of this Agreement, “Disability” shall mean the
absence of the Executive from the Executive’s duties with the Company on a
full-time basis for 180 consecutive business days as a result of incapacity due
to mental or physical illness, which is determined to be a disability pursuant
to the Company’s then existing long term disability plan or, in the absence of
such a plan, a disability determined to be total and permanent by a physician
selected by the Company and acceptable to the Executive or the Executive’s
legal representative.

Section 2.02   Cause.
The Company may terminate the Executive’s employment during the Term for Cause.

Section 2.03   Good
Reason. The Executive’s employment may be terminated by the Executive for
Post-CIC Good Reason.

Section 2.04   Notice
of Termination. Any termination by the Company for Cause, or by the
Executive for Post-CIC Good Reason, shall be communicated by Notice of
Termination to the other party hereto given in accordance with Article VII of
this Agreement. For purposes of this Agreement, a “Notice of Termination”
means a written notice which (i) indicates the specific termination provision
in this Agreement relied upon, (ii) to the extent applicable, sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Executive’s employment under the provision so indicated and
(iii) if the Date of Termination (as defined below) is other than the date of
receipt of such notice, specifies the termination date. The failure by the
Executive or the Company to set forth in the Notice of Termination any fact or
circumstance which contributes to a showing of Post-CIC Good Reason or Cause
shall not waive any right of the Executive or the Company, respectively,
hereunder or preclude the Executive or the Company, respectively, from
asserting such fact or circumstance in enforcing the Executive’s or the Company’s
rights hereunder.

Section 2.05   Date
of Termination. “Date of Termination” means (i) if the Executive’s
employment is terminated by the Company for Cause, or by the Executive for
Post-CIC Good Reason, the date of receipt of the Notice of Termination or any
later date up to six months thereafter specified therein, as the case may be,
(ii) if the Executive’s employment is terminated by the Company other than for
Cause or Disability, the Date of Termination shall be the date on which the
Company notifies the Executive of such termination or any later date specified
therein within 30 days of such notice and (iii) if the Executive’s employment
is terminated by reason of death or Disability, the Date of Termination shall
be the date of death of the Executive or the Disability Effective Date, as the
case may be.

ARTICLE III

Obligations of the Company Upon Termination

Section 3.01   Post-CIC
Good Reason; Other Than for Cause or Disability. If, during the Post-CIC
Employment Period, the Executive shall terminate employment for Post-CIC Good
Reason or the Company shall terminate the Executive’s employment other than for
Cause or Disability (entitling the Executive to benefits under the Company’s
long-term disability plan, after any applicable waiting period):

 2
 

 

(a)           The Company shall
pay to the Executive in a lump sum in cash on the tenth (10) Business Day
following the Date of Termination the aggregate of the following amounts:

(i)            the
sum of (1) the Executive’s Annual Base Salary (which for this purpose shall
include any allowance for perquisites that is paid directly to the Executive)
through the end of the fiscal year containing the Date of Termination; (2) an
amount equal to (x) the higher of the target bonus amount or the bonus actually
paid to the Executive under the Company’s incentive bonus plan (or any
comparable successor plan(s)) for the fiscal year of the Company prior to the
Date of Termination (or the first date on which a Change in Control occurs, if
such date is earlier) or (y) the target bonus amount payable to the Executive
under such plan(s) for the fiscal year of the Company which contains the Date
of Termination, whichever of (x) or (y) is higher (the “Target Bonus”);
(3) the total contributions (other than salary reduction contributions) made by
the Company to all qualified retirement plans on behalf of the Executive
through the end of the fiscal year containing the Date of Termination; (4) the
total car allowance contributions made by the Company to the Executive through
the end of the fiscal year containing the Date of Termination; and (5) any
accrued vacation or other pay not theretofore paid (the sum of the amounts
described in clauses (1), (2), (3), (4) and (5) are herein referred to as the “Accrued
Obligations”); and,

(ii)           the
amount equal to the product of (1) two and (2) the sum of (w) the Executive’s
Annual Base Salary (which for this purpose shall include any allowance for
perquisites that is paid directly to the Executive) and (x) the higher of (aa)
the Target Bonus and (bb) the highest annual incentive bonus earned by
Executive during the last two (2) completed fiscal years of the Company
immediately preceding Executive’s Date of Termination (annualized in the event
Executive was not employed by the Company for the whole of any such fiscal
year), with the product of (1) and (2) reduced by the amounts paid, if any, to
the Executive pursuant to any other contractual arrangement with the Executive
or plan providing coverage to the Executive as a result of such termination;
(y) the total contributions (other than salary reduction contributions) made by
the Company to all qualified retirement plans on behalf of the Executive for
the calendar year immediately preceding the calendar year in which the Change
in Control occurs; and (z) the total car allowance contributions made by the
Company to the Executive for the calendar year immediately preceding the
calendar year in which the Change in Control occurs.

(b)           The Company shall
provide the following benefit payments to the Executive:

(i)            For a 24-month
period after the Date of Termination, the Company will arrange to provide the
Executive with life insurance benefits and long-term disability benefits
substantially similar to those that the Executive was receiving from the
Company immediately prior to the Date of Termination (or the first date on
which a Change in Control occurs, if such date is earlier). Life insurance
benefits and long-term disability benefits otherwise receivable by the
Executive pursuant to the preceding sentence will be reduced to the extent
comparable benefits are actually received by or made available to the Executive
by any source other than the Company without greater cost to him than as provided
by the Company during the 24-month period following the Executive’s termination
of employment (and the Executive will report to the Company any such benefits
actually received by or made available to the Executive). If, as of the Date of
Termination, the Company reasonably determines that the continued life
insurance coverage and/or long-term disability coverage required by this
Section 3.01(b) is not available from the Company’s group insurance carrier,
cannot be procured from another carrier, and cannot be provided on a
self-insured basis without adverse tax consequences to the Executive or his
death beneficiary, then, in lieu of continued life insurance coverage and/or
long-term disability coverage, the Company will pay the Executive a lump sum
payment, in cash, equal to 24 times the full monthly premium payable to the
Company’s group insurance carrier for comparable coverage for an executive
employee under the Company’s group life insurance plan or long-term disability
plan then in effect.

 3
 

 

(ii)           The
Company will offer the Executive and any eligible family members the
opportunity to elect to continue medical and dental coverage pursuant to the
continuation coverage requirements of the Consolidated Omnibus Budget
Reconciliation Act of 1985, as amended (“COBRA”). The Executive will be
responsible for paying the required monthly premium for that coverage, but the
Company will pay the Executive a lump sum cash stipend equal to 24 times the
monthly premium then charged to qualified beneficiaries for full family COBRA
continuation coverage under the Company’s medical and dental plans, which the
Executive may choose to use for the payment of COBRA premiums. The Company will
pay the stipend to the Executive whether or not the Executive or anyone in his
family elects COBRA continuation coverage, whether or not the Executive
continues COBRA coverage for a full 24 months, and whether or not the Executive
receives health coverage from another employer while the Executive is receiving
COBRA continuation coverage.

(c)           All outstanding
Options will become immediately vested and exercisable (to the extent not yet
vested and exercisable as of the Date of Termination) and shall remain
exercisable until the earlier of (i) the expiration of the option term or (ii)
five (5) years after the Date of Termination. To the extent not otherwise
provided under the written agreement, if any, 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.

(d)           For 12 months
following the Date of Termination the Company shall, at its sole expense,
reimburse the Executive for the cost (but not in excess of $25,000 in the aggregate), as incurred, for
outplacement services the scope and provider of which shall be selected by the
Executive in Executive’s sole discretion.

(e)           To the extent not
theretofore paid or provided, the Company shall timely pay or provide to
Executive any other amounts or benefits required to be paid or provided or
which Executive is eligible to receive under any plan, program, policy,
practice, contract or agreement of the Company (such other amounts and benefits
shall be hereinafter referred to as the “Other Benefits”).

Section 3.02   Death.
If the Executive’s employment is terminated by reason of the Executive’s death
during the Term and prior to a Change in Control, this Agreement shall
terminate without further obligations to the Executive’s legal representatives
under this Agreement. Anything in this Agreement to the contrary
notwithstanding, if the Executive’s death occurs after a Change In Control, then
this Section 3.02 shall not apply and the Executive’s estate and/or
beneficiaries shall be entitled to the benefits of Section 3.01.

Section 3.03   Disability.
If the Executive’s employment is terminated by reason of the Executive’s
Disability during the Term, this Agreement shall terminate without further
obligations to the Executive, other than for payment of Accrued Obligations and
the timely payment or provision of Other Benefits. Accrued Obligations shall be
paid to the Executive in a lump sum in cash on the twentieth (20th) Business
Day following the Date of Termination. The term “Other Benefits” as utilized in
this Section 3.03 shall include, without limitation, and the Executive shall be
entitled after the Disability Effective Date to receive, disability and other
benefits at least equal to the most favorable of those generally provided by
the Company and its affiliated companies to disabled executives and/or their
families in accordance with such plans, programs, practices and policies
relating to disability, if any, as in effect generally with respect to other
peer executives and their families at any time during the 120-day period
immediately preceding the Date of Termination (or the date on which a Change in
Control occurs, if such date is earlier) or, if more favorable to the Executive
and/or the Executive’s family, as in effect at any time thereafter generally
with respect to other peer executives of the Company and their families.

Section 3.04   Termination
in Anticipation of a Change in Control.

 4
 

 

(a)           An “Anticipatory Termination” occurs if either

(i)            (1)
the Company terminates the Executive’s employment other than for Cause or
Disability prior to the date on which a Change in Control occurs, (2) it is
reasonably demonstrated by the Executive that such termination of employment
(x) was at the request or instruction of a third party who had taken steps
reasonably calculated to effect a Change in Control or (y) otherwise arose
within six months of, and was in connection with or in anticipation of, a
Change in Control, and (3) a Change in Control occurs, or

(ii)           (1)
during the Term, an event occurs that would have constituted Post-CIC Good
Reason if the date on which a Change in Control occurs was deemed to be the
date immediately prior to the date of such event and the Executive terminated
his employment subsequent to such event, (2) the Executive can reasonably
demonstrate that such Post-CIC Good Reason event (x) was at the request or
instruction of a third party who had taken steps reasonably calculated to
effect a Change in Control or (y) otherwise arose within six months of, and was
in connection with or in anticipation of, a Change in Control, and (3) a Change
in Control occurs.

(iii)          For purposes of
clauses (i)(1)(y) and (ii)(1)(y) of this Section 3.04(a), it shall be presumed
that such event was in connection with or in anticipation of a Change in
Control unless the Company establishes otherwise by clear and convincing
evidence.

(b)           If the Executive has
reason to believe that an Anticipatory Termination may have occurred, he shall
provide a notice setting forth such belief in accordance with Article VII of
this Agreement within 120 days after a Change in Control has occurred. Upon an
Anticipatory Termination, the Executive shall be entitled to (A) the payments
specified in Sections 3.01(a),(d) and (e) (to the extent not previously paid),
(B) the benefits specified in Section 3.01(b) (to the extent not previously
provided) (or the after-tax equivalent thereof to the extent that such benefits
have not been or are not provided in kind), (C) to the extent that the
Executive has outstanding any unexercised stock options and other stock-based
awards, the provisions of Section 3.01(c) shall apply to them, (D) in respect
of any stock options or other stock based awards that were forfeited by the
Executive as a result of his termination of employment but would have vested
had Section 3.01(c) applied, such awards shall be reinstated (or if not
reinstated, the Executive shall be paid in cash the fair value of such award),
and (E) liquidated damages of $25,000 for penalties associated with the
Anticipatory Termination. For the purposes of this Section 3.04(b), the
Executive’s Date of Termination shall be deemed to be his last date of
employment by the Company.

Section 3.05   Nonexclusivity
of Rights. Nothing in this Agreement shall prevent or limit the Executive’s
continuing or future participation in any plan, program, policy or practice
provided by the Company and for which the Executive may qualify, nor, subject to
Section 8.02, shall anything herein limit or otherwise affect such rights as
the Executive may have under any contract or agreement with the Company.
Amounts which are vested benefits or which the Executive is otherwise entitled
to receive under any plan, policy, practice, or program of or any contract or
agreement with the Company at or subsequent to the Date of Termination shall be
payable in accordance with such plan, policy, practice or program or contract
or agreement except as explicitly modified by this Agreement.

Section 3.06   Certain
Additional Payments by the Company.

(a)           Anything in this
Agreement or in any other agreement between the Company and the Executive or in
any stock option or other benefit plan to the contrary notwithstanding and
except as set forth below, in the event it shall be determined that any payment
or distribution by the Company to or for the benefit of the Executive (whether
paid or payable or distributed or distributable pursuant to the terms of this
Agreement or otherwise, but determined without regard to any additional
payments required 

 5
 

 

under
this Section 3.06) (a “Payment”) would be subject to the excise tax
imposed by Section 4999 of the Code or any interest or penalties are incurred
by the Executive with respect to such excise tax (such excise tax, together
with any such interest and penalties, are hereinafter collectively referred to
as the “Excise Tax”), then the Executive shall be entitled to receive an
additional payment (a “Gross-Up Payment”) in an amount such that after
payment by the Executive of all taxes (including any interest or penalties
imposed with respect to such taxes), including, without limitation, any income
taxes (and any interest and penalties imposed with respect thereto) and Excise
Tax imposed upon the Gross-Up Payment, the Executive retains an amount of the
Gross-Up Payment equal to the Excise Tax imposed upon the Payments.

(b)           All determinations
required to be made under this Section 3.06, including whether and when a
Gross-Up Payment is required and the amount of such Gross-Up Payment and the
assumptions to be utilized in arriving at such determination, shall be made by
the Accounting Firm, which shall provide detailed supporting calculations both
to the Company and the Executive within fifteen business days of the receipt of
notice from the Executive that there has been a Payment, or such earlier time
as is requested by the Company. In the event that the Accounting Firm is
serving as accountant or auditor for the Company or the individual, entity or
group effecting the Change in Control, the Executive shall appoint another
nationally recognized accounting firm to make the determinations required
hereunder (which accounting firm shall then be referred to as the Accounting
Firm hereunder). All fees and expenses of the Accounting Firm shall be borne
solely by the Company. Any Gross-Up Payment, as determined pursuant to this
Section 3.06, shall be paid by the Company to the Executive in the calendar
year that includes the date on which the Payment was made; provided, however,
that if a payment is made after December 1 of any calendar year, then the
Gross-Up Payment, as determined pursuant to this Section 3.06, shall be paid by
the Company to the Executive in the immediately succeeding calendar year. In either
case, the Gross-Up Payment shall be made on the later of the fifth day
following the Accounting Firm’s
determination and the first day of the applicable calendar year. Any determination by the Accounting Firm
shall be binding upon the Company and the Executive.

Section 3.07   Tax
Matters. Notwithstanding anything contained in this
Agreement (or any other agreement between Executive and the Company or any of
its subsidiaries) to the contrary, the Company and its subsidiaries shall be
entitled to deduct and withhold any amounts required by the Code or under any
state or local law relating to compensation from any payment amounts
distributable or due to Executive from the Company or any of its subsidiaries,
including from Executive’s wages, compensation, or benefits, as may be required
by the Code or under any state or local law relating to compensation. The
Company and the Executive agree to use commercially reasonable efforts to
ensure that this Agreement complies with Section 409A of the Code such that Executive
is not subject to any additional taxes, interest or penalties under such
provisions. In furtherance thereof, if payment or provision of any amount or
benefit hereunder at the time specified in this Agreement would subject such
amount or benefit to any additional tax under Section 409A of the Code, the
payment or provision of such amount or benefit shall be postponed to the
earliest commencement date on which the payment or the provision of such amount
or benefit could be made without incurring such additional tax (including
paying any severance that is delayed in a lump sum upon the earliest possible
payment date which is consistent with Section 409A of the Code). Without
limiting the generality of the immediately preceding sentence, if payment or provision
of any amount or benefit hereunder at the time specified in this Agreement
would fail to comply with the provisions of Section 409A of the Code because
the Executive is treated as a “specified” employee (within the meaning of
Section 409A(a)(2)(B)(i) of the Code), then such amount or benefit shall not be
paid or provided at the time otherwise specified in this Agreement, but instead
shall be paid or provided on the date that is six months after the date of
separation from service (or, if earlier, the date of death of the Executive).
In addition, to the extent that any regulations or guidance issued under Code
§409A (after application of the previous provision of this paragraph) would
result in Executive being subject to the payment of interest or any additional
tax under Code §409A, the Company and the 

 6
 

 

Executive agree, to the extent
reasonably possible, to amend this Agreement in order to avoid the imposition
of any such interest or additional tax under Code §409A, which amendment shall
have the minimum economic effect necessary on Executive and be reasonably
determined in good faith by the Company and the Executive.

ARTICLE IV

No Mitigation

The
Company agrees that, if the Executive’s employment by the Company is terminated
during the term of this Agreement, the Executive is not required to seek other
employment or to attempt in any way to reduce any amounts payable to the
Executive by the Company pursuant to Article III. Further, the amount of any
payment or benefit provided for in Article III (other than Section 3.01(b)(i))
will not be reduced by any compensation earned by the Executive as the result
of employment by another employer, by retirement benefits, by offset against
any amount claimed to be owed by the Executive to the Company, or otherwise.

ARTICLE V

The Executive’s Covenants

Section 5.01   Noncompetition
Agreement. In consideration for this Agreement, the Executive will execute,
concurrent with the execution of this Agreement, a noncompetition agreement in
the form attached to this Agreement as Exhibit A. In the event of
termination of this Agreement as provided in Section 1.01, the noncompetition
Agreement shall survive termination.

Section 5.02   Confidential
Information. The Executive shall hold in a fiduciary capacity for the
benefit of the Company all material proprietary information, knowledge or data
relating to the Company or any of its affiliated companies, and their
respective businesses, which shall have been obtained by the Executive during
the Executive’s employment by the Company or any of its affiliated companies
and which shall not be or become public knowledge (other than by acts by the
Executive or representatives of the Executive in violation of this Agreement).
After termination of the Executive’s employment with the Company, the Executive
shall not, without the prior written consent of the Company or as may otherwise
be required by law or legal process, communicate or divulge any such
information, knowledge or data to anyone other than the Company and those
designated by it. In no event shall an asserted violation of the provisions of
this Section 5.02 constitute a basis for denying, deferring or withholding any
amounts or benefits payable to the Executive under this Agreement.

Section 5.03   General
Release. The Executive agrees that, notwithstanding any other provision of
this Agreement, the Executive will not be eligible for any payments under
Section 3.01 unless the Executive timely signs, and does not timely revoke, a
General Release in substantially the form attached to this Agreement as Exhibit
B.

ARTICLE VI

Successors; Binding
Agreement

Section 6.01   Obligation
of Successors. In addition to any obligations imposed by law upon any
successor to the Company, the Company will require any successor (whether
direct or indirect, by purchase, merger, consolidation, or otherwise) to all or
substantially all of the business and/or assets of the Company to expressly
assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no succession had
occurred. Failure of the Company to obtain such an assumption and agreement
prior to the effectiveness of any such succession will be a breach of this
Agreement.

 7
 

 

Section 6.02   Enforcement
Rights of Others. This Agreement will inure to the benefit of and be
enforceable by the Executive’s personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees, and legatees. If the
Executive dies while any amount is still payable to the Executive under this
Agreement, (other than amounts that, by their terms, terminate upon the
Executive’s death), then, unless otherwise provided in this Agreement, all such
amounts will be paid in accordance with the terms of this Agreement to the
executors, personal representatives, or administrators of the Executive’s
estate.

ARTICLE VII

Notices

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 United States registered mail, return receipt
requested, postage prepaid, 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 VIII, except that notice of change of
address will be effective only upon actual receipt:

	
  To the Company:

  	
  To the Executive:

  
	
  Biomet, Inc.

  56 E. Bell Drive

  P. O. Box 587

  Warsaw, Indiana 46581-0587

  	
  Garry L. England

                                                         

                                                         

  

 

ARTICLE VIII

Miscellaneous; At-Will

Section 8.01   Miscellaneous.
No provision of this Agreement may be modified, waived, or discharged unless
the waiver, modification, or discharge is agreed to in writing and signed by
the Executive and an officer of the Company specifically designated by the
Board. No waiver by either party at any time of any breach by the other party
of, or compliance with, any condition or provision of this Agreement to be
performed by the other party will be deemed a waiver of similar or dissimilar
provisions or conditions at the same or at any other time. Neither party has
made any agreements or representations, oral or otherwise, express or implied,
with respect to the subject matter of this Agreement that are not expressly set
forth in this Agreement. The validity, interpretation, construction, and
performance of this Agreement will be governed by the laws of the State of
Indiana. All references to sections of the Exchange Act or the Code will be
deemed also to refer to any successor provisions to those sections. Any
payments provided for under this Agreement will be paid net of any applicable
withholding required under federal, state, or local law and any additional
withholding to which the Executive has agreed. The obligations of the Company
and the Executive under Articles III, IV, and VI will survive the expiration of
this Agreement, if applicable.

Section 8.02   At-Will.
The Executive and the Company acknowledge that, except as may otherwise be
provided under any other written agreement between the Executive and the
Company, the employment of the Executive by the Company is “at will,” and the
Executive’s employment may be terminated by either the Executive or the Company
at any time.

ARTICLE IX

Validity

The
invalidity or unenforceability of any provision of this Agreement will not
affect the validity or enforceability of any other provision of this Agreement,
which will remain in full force and effect.

 8
 

 

ARTICLE X

Counterparts

This
Agreement may be executed in several counterparts, each of which will be deemed
to be an original but all of which together will constitute one and the same
instrument.

ARTICLE XI

Settlement of Disputes; Arbitration

All
claims by the Executive for benefits under this Agreement must be in writing
and will be directed to and determined by the Board. Any denial by the Board of
a claim for benefits under this Agreement will be delivered to the Executive in
writing and will set forth the specific reasons for the denial and the specific
provisions of this Agreement relied upon. The Board will afford a reasonable
opportunity to the Executive for a review of the decision denying a claim and
will further allow the Executive to appeal to the Board a decision of the Board
within 60 days after notification by the Board that the Executive’s claim has
been denied. Any further dispute or controversy arising under or in connection
with this Agreement will be settled exclusively by arbitration in Warsaw,
Indiana in accordance with the rules of the American Arbitration Association
then in effect. Judgment may be entered on the arbitrator’s award in any court
having jurisdiction. Each party will bear its own expenses in the arbitration
for attorneys’ fees, for its witnesses, and for other expenses of presenting
its case. Other arbitration costs, including arbitrators’ fees, administrative
fees, and fees for records or transcripts, will be borne equally by the
parties. Notwithstanding anything in this Article to the contrary, if the
Executive prevails with respect to any dispute submitted to arbitration under
this Article, the Company will reimburse or pay all reasonable legal fees and
expenses that the Executive incurred in connection with that dispute as
required by Section 3.08.

ARTICLE XII

Definitions

For
purposes of this Agreement, the following terms will have the meanings
indicated below:

“401(k)
Plan” means the Biomet, Inc. Profit Sharing Plan and Trust qualified under
section 401(k) of the Code and any comparable successor plan(s).

“Accounting
Firm” means such nationally recognized certified public accounting firm as
may be designated by the Executive.

“Accrued
Obligations” shall have the meaning described in Section 3.01(a)(i).

“Annual
Base Salary” means the Executive’s annual base salary as in effect
immediately prior to the date of the Change in Control.

“Anticipatory
Termination” shall have the meaning described in Section 3.04.

“Beneficial
Owner” has the meaning stated in Rule 13d-3 under the Exchange Act.

“Board”
means the Board of Directors of the Company.

“Business
Day” means any day other than a Saturday, Sunday or other day on which
commercial banks are authorized to close under the Laws of, or are in fact
closed in, the State of Indiana.

 9
 

 

“Cause”
for termination by the Company of the Executive’s employment, after any Change
in Control, means (1) 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 Post-CIC Good Reason or Pre-CIC Good Reason or by
the Executive pursuant to Sections 3.01 and 3.02) for a period of at least 30
consecutive days after a written demand for substantial performance is
delivered to the Executive by the Board, which demand specifically identifies
the manner in which the Board believes that the Executive has not substantially
performed the Executive’s duties; (2) the Executive willfully engages in
conduct that is demonstrably and materially injurious to the Company or its
subsidiaries, monetarily or otherwise; or (3) the Executive is convicted of, or
has entered a plea of no contest to, a felony. For purposes of clauses (1) and
(2) of this definition, no act, or failure to act, on the Executive’s part will
be deemed “willful” unless it is done, or omitted to be done, by the Executive
not in good faith and without reasonable belief that the Executive’s act, or
failure to act, was in the best interest of the Company.

“Change
in Control” will be deemed to have occurred if any of the following events
occur:

(a)           Individuals who, as
of September 20, 2006, constitute the Board (the “Incumbent Directors”)
cease for any reason to constitute at least a majority of such Board, provided
that any person becoming a director after September 20, 2006 and whose election
or nomination for election was approved by a vote of at least a majority of the
Incumbent Directors then on the Board shall be deemed an Incumbent Director; provided,
however, that no individual initially elected or nominated as a director
of the Company as a result of an actual or threatened election contest with
respect to the election or removal of directors (“Election Contest”) or
other actual or threatened solicitation of proxies or consents by or on behalf
of any Person other than the Board (“Proxy Contest”), including by
reason of any agreement intended to avoid or settle any Election Contest or
Proxy Contest, shall be deemed an Incumbent Director; or

(b)           Any Person is or
becomes a Beneficial Owner directly or indirectly, of either (A) 20% or more of
the then-outstanding Company Shares or (B) securities of the Company
representing 20% or more of the combined voting power of the Company’s then
outstanding securities eligible to vote for the election of directors (the “Company
Voting Securities”); provided, however, that for purposes of
this subsection (b), the following acquisitions shall not constitute a Change
in Control: (i) an acquisition directly from the Company, (ii) an acquisition
by the Company or a subsidiary of the Company, or (iii) an acquisition by any
employee benefit plan (or related trust) sponsored or maintained by the Company
or any subsidiary of the Company; or

(c)           The consummation of
a reorganization, merger, consolidation, statutory share exchange or similar
form of corporate transaction involving the Company or a subsidiary (a “Reorganization”),
or the sale or other disposition of all or substantially all of the Company’s
assets (a “Sale”) or the acquisition of assets or stock of another
corporation (an “Acquisition”), unless immediately following such
Reorganization, Sale or Acquisition: (A) all or substantially all of the
individuals and entities who were the beneficial owners, respectively, of the
outstanding Company Shares and outstanding Company Voting Securities immediately
prior to such Reorganization, Sale or Acquisition beneficially own, directly or
indirectly, more than 50% of, respectively, the then outstanding shares of
common stock and the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of directors, as the case
may be, of the corporation resulting from such Reorganization, Sale or
Acquisition (including, without limitation, a corporation which as a result of
such transaction owns the Company or all or substantially all of the Company’s
assets or stock either directly or through one or more subsidiaries, the “Surviving
Corporation”) in substantially the same proportions as their ownership,
immediately prior to such Reorganization, Sale or Acquisition, of the
outstanding Company Shares and the outstanding Company Voting Securities, as
the case may be, and (B) no person 

 10
 

 

(other
than (i) the Company or any subsidiary of the Company, (ii) the Surviving
Corporation or its ultimate parent corporation, or (iii) any employee benefit
plan or related trust sponsored or maintained by any of the foregoing) is the
beneficial owner, directly or indirectly, of 20% or more of the total common
stock or 20% or more of the total voting power of the outstanding voting securities
eligible to elect directors of the Surviving Corporation, and (C) at least a
majority of the members of the board of directors of the Surviving Corporation
were Incumbent Directors at the time of the Board’s approval of the execution
of the initial agreement providing for such Reorganization, Sale or
Acquisition; or

(d)           Approval by the
shareowners of the Company of a complete liquidation or dissolution of the
Company.

“COBRA”
means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.

“Code”
means the Internal Revenue Code of 1986, as amended from time to time, and
interpretative rules and regulations.

“Company”
means Biomet, Inc., an Indiana corporation, and any successor to its business
and/or assets that assumes and agrees to perform this Agreement by operation of
law, or otherwise (except in determining whether or not any Change in Control
of the Company has occurred in connection with the succession).

“Company
Shares” means shares of common stock of the Company or any equity securities
into which those shares have been converted.

“Date
of Termination” shall have the meaning described in Section 2.05.

“Disability”
shall have the meaning described in Section 2.01.

“Disability
Effective Date” shall have the meaning described in Section 2.01.

“Exchange
Act” means the Securities Exchange Act of 1934, as amended from time to
time, and interpretive rules and regulations.

“Excise
Tax” shall have the meaning described in Section 3.05(a).

“Executive”
“ shall have the meaning described in the first paragraph of this Agreement.

“Gross-Up
Payment” shall have the meaning described in Section 3.06(a).

“Notice
of Termination” shall have the meaning described in Section 2.04.

“Options”
means options for Shares granted to the Executive under the Stock Option Plan.

“Other
Benefits” shall have the meaning described in Section 3.01 (e) or 3.03, as
determined by the nature of the termination of the Agreement, as described in
each of those sections.

“Payment”
shall have the meaning described in Section 3.06(a).

“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 Company or any of its subsidiaries, (2) a trustee or other
fiduciary holding securities under an employee benefit plan of the Company or
any of its subsidiaries, (3) an underwriter temporarily holding securities
pursuant to an 

 11
 

 

offering
of those securities, or (4) a corporation owned, directly or indirectly, by the
stockholders of the Company in substantially the same proportions as their
ownership of stock of the Company.

“Post-CIC
Employment Period” shall have the meaning assigned in Section 1.02.

“Post-CIC
Good Reason” for termination by the Executive of the Executive’s employment
means the death of the Executive during the Post-CIC Employment Period or 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, in each case
during the Post-CIC Employment Period, unless, in the case of any act or
failure to act described in paragraph (i), (iv), (v), (vi), or (viii) below,
the act or failure to act is corrected prior to the Date of Termination
specified in the Executive’s Notice of Termination:

(i)            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;

(ii)           A
reduction by the Company in the Executive’s annual base salary and/or Target
Bonus as in effect on the date of this Agreement or as the same may be
increased from time to time;

(iii)          The
Company’s requiring the Executive to be based more than 50 miles from the
Company’s offices at which the Executive is based prior to a Change in Control
(except for required travel on the Company’s business to an extent
substantially consistent with the Executive’s business travel obligations
immediately prior to the Change in Control), or, in the event the Executive
consents to any such relocation of his offices, the Company’s failure to
provide the Executive with all of the benefits of the Company’s historical
practices with respect to relocation of executive employees as in operation
immediately prior to the Change in Control;

(iv)          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 (4), the Executive’s annual base salary as in effect on the date
of this Agreement, or as it may be increased from time to time, and any
installment of the annual target bonus earned by the Executive) or to pay to
the Executive any portion of an installment of deferred compensation under any
deferred compensation program of the Company, within seven days of the date the
compensation is due;

(v)           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 Stock Option Plan 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;

(vi)          The
Company’s failure to continue to provide the Executive with benefits
substantially similar to those enjoyed by the Executive under any of the
Company’s retirement plans (including, without limitation, the Company’s 401(k)
Plan, the Biomet, Inc. Employee Stock Bonus Plan, and such other life insurance,
medical, health and accident, or disability plans in which the Executive was
participating at the time of the Change in Control); the taking of any action
by the Company that would directly or indirectly materially reduce any of those
benefits or deprive the Executive of any material fringe benefit enjoyed by the
Executive at the time of a Change in Control; or the Company’s failure to
provide the Executive with the number of paid vacation days to which the
Executive is entitled on the 

 12
 

 

basis of years of service with the Company in accordance with the
Company’s normal vacation policy in effect at the time of the Change in
Control;

(vii)         Any
purported termination of the Executive’s employment that is not effected
pursuant to a Notice of Termination satisfying the requirements of Section 4.01;
for purposes of this Agreement, no such purported termination will be
effective; or

(viii)        any
failure by the Company to comply with and satisfy Section 6.01 of this
Agreement.

The
Executive’s right to terminate the Executive’s employment for Post-CIC Good
Reason will not be affected by the Executive’s incapacity due to physical or
mental illness. The Executive’s continued employment will not constitute
consent to, or a waiver of rights with respect to, any act or failure to act
that constitutes Post-CIC Good Reason. Notwithstanding the foregoing, the
occurrence of an event that would otherwise constitute Post-CIC Good Reason
will cease to be an event constituting Post-CIC 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.

“Renewal
Date” shall have the meaning described in Section 1.01.

“Shares”
means shares of the common stock of the Company.

“Stock
Option Plan” means the 1998 Biomet, Inc. Qualified and Non-Qualified Stock
Option Plan and any other equity compensation plan of the Company approved by
the Board and adopted by the shareholders of the Company.

“Target
Bonus” shall have the meaning described in Section 3.01(a)(i).

“Term”
shall have the meaning described in Section 1.01.

* * *

	
  EXECUTIVE

  	
  BIOMET, INC.

  
	
   

  	
   

  
	
  /s/ Garry L.
  England

  	
   

  	
  By:

  	
  /s/ Daniel P. Hann

  
	
  Garry L. England

  	
  Name:

  	
  Daniel P. Hann

  
	
   

  	
  Its:

  	
  Interim President and CEO

  
				

 

 13

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