Document:

EXHIBIT
10.1

EXECUTION
COPY

RETIREMENT AND CONSULTING
AGREEMENT

THIS RETIREMENT AND CONSULTING AGREEMENT (this “Agreement”)
is made as of March 30, 2007 by and between BIOMET, INC., an Indiana
corporation (“Company”), and Greg Hartman (“Executive”).

WHEREAS, Executive has elected to retire from the
Company and to resign all his positions with the Company effective as of
March 30, 2007;

WHEREAS, the parties have agreed to resolve certain
matters related to Executive’s retirement;

WHEREAS, the Company desires to engage Executive as a
consultant on the terms set forth in this Agreement to assist in transitioning
certain matters for which Executive was previously responsible; and

WHEREAS, Executive desires to provide such consulting
services to the Company on the terms set forth in this Agreement

NOW, THEREFORE, in consideration of the foregoing
premises and the respective agreements hereinafter set forth and the mutual
benefits to be derived herefrom, Company and Executive hereby agree as follows:

1.             Retirement and Resignation.  Effective as of March 30, 2007 (the “Separation
Date”), Executive hereby retires from the Company and, as a consequence,
voluntarily resigns his employment with the Company and all of its affiliates,
including without limitation Executive’s position as Chief Financial
Officer.  

2.             No Entitlement to Severance.  Executive acknowledges and agrees that
Executive is not entitled to, and hereby waives any potential entitlement to,
any severance or termination benefits that could be payable in connection with
his retirement and resignation from employment with the Company.  Without limiting the foregoing, Executive
hereby agrees that the Severance and Change in Control Agreement dated as of
September 20, 2006 by and between Executive and the Company (the “Severance
Agreement”) is hereby terminated and of no further force or effect.  Executive agrees that Executive shall not be
entitled to, and hereby waives any potential future entitlement to, any of the
benefits or payments described in the Severance Agreement.  

3.             Treatment of Options.  Executive acknowledges that the Company is
conducting an investigation (the “Investigation”) to determine the
extent to which compensatory options previously granted by the Company were
granted with an exercise price lower than the fair market value of the
Company’s common stock on the applicable date of grant.  The Company and Executive hereby agree to the
following with respect to options granted to him by the Company.

(a)           Previously Exercised Options.  Executive shall repay to the Company in
accordance with this Section 3(a) the aggregate amount (the “Discount”)
by which the exercise price of any or all compensatory options granted to
Executive by the Company that Executive exercised prior to the date hereof was
less than the fair market value of the Company’s common stock on the applicable
date of grant of each such option.  The
Company shall determine the amount of the Discount in good faith and, absent
manifest error, the Company’s determination shall be final, binding and
conclusive.  Executive shall pay the
amount of the Discount to the Company promptly after receipt of a written
notice from the Company setting out in reasonable detail the calculation of the
Discount.  Without in any way limiting
Executive’s obligation to repay the Discount directly, Executive hereby
authorizes the Company to withhold the Discount from any and all amounts
otherwise payable to Executive hereunder or otherwise in the event Executive
fails to promptly pay the Discount.  

(b)           Vested
Options.  Executive agrees that, with
respect to all unexercised options previously granted to Executive that are
vested and exercisable on the date hereof (the “Vested Options”), the
Company may, without any further need for Executive’s consent, increase the
exercise price of such options to an amount the Company determines in good
faith is equal to the fair market value of the Company’s common stock on the
date such options were originally granted. 
Absent manifest error, the Company’s determination of the appropriate
exercise price shall be final, binding and conclusive.  Executive agrees to execute any document
related to such adjustment reasonably requested by the Company.  In the event Executive exercises any options
described in this Section 3(b) prior to any adjustment contemplated hereby,
such options shall be treated in accordance with Section 3(a).  Vested Options shall be exercisable after the
Separation Date in accordance with their terms, it being agreed that the Vested
Options shall remain exercisable until the earlier of (i) the date such Vested
Options would otherwise expire (in the absence of Executive’s retirement) or
(ii) the three month anniversary of the Separation Date (or, if earlier, the
latest date on which such Vested Options may be exercised without incurring any
penalty under Section 409A of the Internal Revenue Code of 1986, as amended
(the “Code”)).

(c)           Remaining Options.  Executive acknowledges and agrees that he
will not be entitled to, and hereby waives and entitlement he might otherwise
have to, accelerated vesting of any unvested options as a consequence of his
retirement from the Company.  All
unexercised options previously granted to Executive that are not described in
Section 3(b) shall be terminated and canceled as of Executive’s Separation
Date.

4.             Release of Claims.  

(a)           General Release.  In consideration of the Company’s obligations
hereunder and acceptance of Executive’s retirement and resignation, Executive,
Executive’s heirs, successors, and assigns, hereby knowingly and voluntarily
release and forever discharge the Company and its subsidiaries and affiliates,
together with all of their respective current and former officers, directors,
consultants, agents, representatives and employees, and each of their predecessors,
successors and assigns (collectively, the “Releasees”), from any and all
debts, demands, actions, causes of actions, accounts, covenants, contracts,
agreements, claims, damages, omissions, promises, and any and all claims and
liabilities whatsoever, of every name and nature, known or unknown, suspected
or unsuspected, both in law and equity (“Claims”), 

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which Executive ever had, now has, or may hereafter claim to have
against the Releasees by reason of any matter, cause or thing whatsoever arising
from the beginning of time to the time Executive executes this Agreement (the “General
Release”).  This General Release of
Claims shall apply to any Claim of any type, including, without limitation, any
and all Claims of any type that Executive may have arising under the common
law, under Title VII of the Civil Rights Act of 1964, the
Civil Rights Act of 1991, the Age Discrimination in Employment
Act (“ADEA”), the Older Workers Benefit Protection Act, the Americans With Disabilities
Act, the Family and Medical Leave Act, the Employee Retirement Income
Security Act (“ERISA”), the Sarbanes-Oxley Act of 2002 or the California
Fair Employment and Housing Act, the California Family Rights Act, or the
California Labor Code section 1400 et seq., each as
amended, and any other Federal, state or local statutes, regulations,
ordinances or common law, or under any policy, agreement, contract,
understanding or promise, written or oral, formal or informal, between any of
the Releasees and Executive, and shall further apply, without limitation, to
any and all Claims in connection with, related to or arising out of Executive’s
employment, or the termination of Executive’s employment, with the Company; provided,
however, that this General Release shall not apply to or impair
(i) claims for vested benefits (excluding any severance or termination
benefits, which are specifically waived hereunder) pursuant to any other
Company employee benefit plan, as defined in ERISA, in which Executive were a
participant before the Separation Date; (ii) any rights to indemnification
Executive may have under the by-laws of the Company or applicable law; or
(iii) any claims that may arise from any violation of this Agreement. For
the purpose of implementing a full and complete release, Executive understands
and agrees that this Agreement is intended to include all claims, if any, which
Executive may have and which Executive does not now know or suspect to exist in
Executive’s favor against the Company or any of the Releasees and that this
Agreement extinguishes those claims.  

(b)           No
Claims.  Executive represents and
warrants that Executive has not filed any complaints or charges with any court
or administrative agency against the Company or any of the Releasees, which
have not been dismissed, closed, withdrawn or otherwise terminated on or before
the date of this Agreement.  Executive
further represents and warrants that Executive has not assigned or transferred
or attempted to assign or transfer, nor will Executive attempt to assign or
transfer, to any person or entity not a party to this Agreement any of this
Claims Executive is releasing in this Agreement.  Furthermore, by signing this General Release
of Claims, Executive represents and agrees that Executive will not be entitled
to any personal recovery in any action or proceeding that may be commenced on
Executive’s behalf arising out of the matters released hereby.

(c)           ADEA/OWBPA
Waiver.  Executive specifically releases and waives
any right or claim against the Company arising out of his employment or his
resignation of employment with the Company under the Age Discrimination in
Employment Act, as amended, 29 U.S.C. § 621 et seq. (“ADEA”)
and the Older Workers Benefit Protection Act, 29 U.S.C. § 621
et seq. (“OWBPA”) (such release and waiver referred to as the “Waiver”).  Executive understands and agrees that
(i) this Agreement is written in a manner that he understands;
(ii) he does not release or waive rights or claims that may arise after he
signs this Agreement; (iii) he waives rights and claims he may have had under
the OWBPA and the ADEA, but only in exchange for payments and/or benefits in
addition to anything of value to which he is already entitled;
(iv) Executive has been advised to consult with an attorney before 

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signing this Agreement; (v) he has twenty-one (21)
calendar days (the “Offer Period”) from receipt of this Agreement to
consider whether to sign it.  If
Executive signs before the end of the Offer Period, Executive acknowledges that
his decision to do so was knowing, voluntary, and not induced by fraud,
misrepresentation, or a threat to withdraw, alter, or provide different terms
prior to the expiration of the Offer Period. 
Executive agrees that changes or revisions to this Agreement, whether
material or immaterial, do not restart the running of the Offer Period; (vi) Executive
has seven (7) calendar days after signing this Agreement to revoke the
waiver (the “Revocation Period”) and (vii) this Waiver shall not
become effective or enforceable until the Revocation Period has expired.  If Executive revokes the waiver, Section 5 of this Agreement and
the provisions of this Agreement relating to Executive’s services as a
Consultant (i.e., Sections 6, 7, 8, and 9) shall not be effective or
enforceable and Executive shall not be entitled to the payments or benefits
provided for in Sections 8 or 9 of this Agreement.  To be effective, the revocation must be in
writing and received by Jeffrey R. Binder, Chief Executive Officer at the
Company’s address set forth in Section 13.

5.             Continuing
Indemnification.  Subject to the terms
and conditions of Section 6.3 of the Company's Restated Articles of
Incorporation as in effect on the date hereof, the Company will advance and pay
reasonable expenses (including attorneys' fees but not including judgments,
penalties, fines, or settlements) incurred by Executive in connection with (a)
proceedings arising out the Company's historic grant of compensatory stock
options; (b) any other proceeding against Executive pending as of the date
hereof arising out of his position as a director, officer, or employee of the
Company; and (c) any other proceeding against or involving the Company in which
Executive may be involved; provided that the Company's obligation to advance
and pay such expenses shall be subject to the terms of any undertaking signed
by Executive prior to the date hereof (which, under certain circumstances,
requires repayment of expenses paid or advanced) or, in the absence of such an
undertaking, to the Company's usual and customary practice with regard to its
current and former employees in such matters. 

6.             Consulting Term. 
The Company hereby agrees to engage Executive as a consultant during the
period commencing on the Separation Date and, unless terminated earlier
pursuant to Section 9, continuing until the six month anniversary of the
Separation Date (as applicable, the “Consulting Separation Date”).  The period from the Separation Date to the
Consulting Separation Date shall be referred to as the “Consulting Term.”  

7.             Consulting Services.  During the Consulting Term, Executive shall
make himself available to provide such transition services as are reasonably
requested by the Company’s Chief Executive Officer or his designee (the “Company
Representative”), including, without limitation, assisting the Company in
preparing its financial statement and other related documents and transitioning
to other Company personnel the information necessary to prepare the Company’s
financial statements (the “Services”). 
Executive agrees to provide the Services at such times and locations as
the Company Representative reasonably requires, it being understood and agreed
that the performance of the Services could require reasonable amounts of
travel.  Executive agrees to use his best
efforts to perform the Services in a professional and competent manner.

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8.             Consulting Compensation and
Expense.

(a)           During the
Consulting Term, Executive shall receive for the Services to be rendered
hereunder a monthly retainer (the “Retainer”) of $29,166 (i.e., an
aggregate Retainer of $175,000), which 
shall be paid monthly in arrears.

(b)           The
Company shall reimburse Executive for reasonable expenses incurred in
connection with rendering the Services hereunder in accordance with policies
adopted by the Company form time to time.

(c)           During
the Consulting Term, the Company shall pay or reimburse Executive the monthly
amounts necessary to continue health care coverage for Executive and his
eligible dependents pursuant to Section 4980B of the Code.

(d)           Promptly after the
later of the expiration of the Consulting Term and closing of the transactions
contemplated by Agreement and Plan of Merger by and Among Biomet, Inc., LVB
Acquisition Merger Sub, Inc. and LVB Acquisitions LLC (the “Transaction
Agreement”) at a price per share of common stock, without par value, of the
Company (a “Share”) of at least $44, the Company shall pay Executive a
bonus in an amount equal to the sum of $325,000 (the “Final Payment”);
provided that Executive shall be entitled to the Final Payment if the
Transaction is consummated at a price per share of less than $44 and the
Company determines in its sole discretion that the reduction in purchase price
is unrelated, in whole or in part, to (i) the Investigation and (ii) any other
matter related to the account practices or financial statements of the Company
or its subsidiaries.  As a condition to
receiving all or any portion of the Final Payment, Executive shall be
required to execute, deliver and not revoke a general release of claims
prepared by the Company that is consistent in all material respects with the
general release set forth in Section 4.  

9.             Termination of the Consulting Term.

(a)           Termination of
the Consulting Term.  The Company may
terminate the Consulting Term and Executive’s engagement as a consultant for
Cause.  

(b)           Termination by the
Company For Cause.  If the Company
terminates the Consulting Term and Executive’s engagement as a consultant
hereunder for Cause, Executive shall be entitled, in full satisfaction of the
Company’s obligations hereunder, to payment of his Retainer through the date of
such termination (pro rated for any fractional portion of a month).  For the avoidance of doubt, if the Company
terminates the Consulting Term and Executive’s engagement as a consultant for
Cause, Executive shall not receive any further payments of the Retainer or the
Final Payment.

(c)           Cause.  For purposes of this Agreement, “Cause”
shall mean a good faith determination by the Board or the CEO that one or more
of the following has occurred: (i) the termination of the Transaction
Agreement as a result of issues related to the Investigation or to the subject
matter of the Investigation, (ii) consummation of transactions contemplated by
Transaction Agreement at per Share price of less than $44 where such reduction
in the purchase price is because of issues related to the Investigation or to
the subject matter of the Investigation, (iii) Executive’s failing to
satisfactorily perform the Services or discharge his 

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duties
hereunder for any reason, (iv) Executive’s failing to satisfactorily cooperate
with the Securities and Exchange Commission in connection with any
investigation related to the Investigation or the subject matter of the
Investigation or (v) Executive’s material breach of this Agreement or the
Company’s code of conduct that is not cured to the CEO’s satisfaction within
10 days of notice to Executive.

10.           Confidential Information;
Inventions of Patents.

(a)           Executive acknowledges
and agrees that, as a result of Executive’s past, current or future employment
with and engagement by the Company or any of its subsidiaries (the “Company Group”),
Executive may develop, obtain, or learn about (or may have developed, obtained
or learned about) Confidential Information (as defined below), and the success
of the Company Group depends upon the use and protection of such
information.  For purposes hereof, “Confidential
Information” means any proprietary information, data, ideas, concepts,
discoveries, trade secrets, inventions (whether or not patentable or reduced to
practice), innovations, improvements, know-how, developments,
manufacturing and production and other techniques, methods, processes,
treatments, drawings, sketches, specifications, designs, plans, patterns,
models, works (including Company Works (as defined below)), plans and
strategies, and all other intellectual property and confidential or proprietary
information in any form or medium (whether merely remembered or embodied in a
tangible or intangible form or medium) whether now or hereafter existing,
relating to or arising from the past, current or potential business, activities
and/or operations of any member of the Company Group, including any such
information relating to or concerning finances, sales, marketing, advertising,
transition, promotions, pricing, personnel, customers, suppliers, vendors, raw
material sources, partners and/or competitors. Notwithstanding the foregoing,
“Confidential Information” shall not include such portions of any information
that are or become generally known to and available for use by the public other
than as a result of any act or omission by Executive or otherwise as a result
of Executive’s breach of any provision of this Agreement.

(b)           Executive
shall not disclose or use for Executive’s own account any of the Confidential
Information, except as necessary for the performance of Executive’s duties
under this Agreement, without the prior written consent of the CEO, unless and
to the extent that any Confidential Information is required to be disclosed
pursuant to any applicable law or court order; provided that if
Executive is requested or required (by oral question or request for information
or documents in any legal proceeding, interrogatory, subpoena, civil
investigative demand, or similar process) to disclose any Confidential
Information, then Executive shall (if so permitted) notify the Company promptly
of the request or requirement in writing so that the Company may seek an
appropriate protective order (at the Company’s sole expense) or waive
compliance with the provisions of this Section 10(b).  If, in the absence of a protective order or
the receipt of a waiver hereunder, Executive is, on the advice of Executive’s
counsel, compelled to disclose any Confidential Information to any tribunal or
else stand liable for contempt, Executive may disclose the Confidential
Information to such tribunal; provided that Executive shall use
commercially reasonable efforts to obtain, at the request and expense of the
Company, an order or other assurance that confidential treatment shall be
accorded to such portion of the Confidential Information required to be
disclosed as the Company shall designate and shall disclose only such portions
of the Confidential Information as are required by such tribunal to be
disclosed.  In any event, Executive shall
use commercially reasonable efforts to 

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mark, or cause
to be marked, any Confidential Information that is disclosed in accordance with
this Section 10(b) as confidential and to accord such information
confidential treatment.  Upon the
termination of the Consulting Term, or at any other time that the Company may
request in writing, Executive agrees to (i) cease all use of all
Confidential Information and Company Works and (ii) deliver to the
Company or, at the Company’s election, destroy, all memoranda, notes, plans,
records, reports, notebooks (and similar repositories of or containing
Confidential Information and/or Company Works), computer files and other
documents or other materials (and all copies, summaries and extracts thereof,
in whatever form or medium) relating to the business, operations and/or
activities of any member of the Company Group or that otherwise constitute
Confidential Information, and at any time thereafter, if any such materials are
brought to Executive’s attention or Executive discovers them in Executive’s
possession or control, Executive shall deliver such materials to the Company,
or, at the Company’s election, destroy all such materials, promptly upon such
notice or discovery.

(c)           If Executive creates,
invents, designs, develops, contributes to or improves any works of authorship,
inventions, whether patentable or unpatentable and whether or not reduced to
practice, know how, data, processes, methods, programs, systems, materials,
documents or other work product or other intellectual property, either alone or
in conjunction with third parties, at any time during Executive’s employment by
or engagement with any member of the Company Group (collectively, “Works”),
to the extent that such Works were created, invented, designed, developed,
contributed to, or improved with the use of any resources of any member of the
Company Group and/or within the scope of such employment or engagement
and/or relate to the business or operations, or actual or demonstrably
anticipated research or development, of the Company or any of its Subsidiaries
(collectively, the “Company Works”), then Executive shall promptly
and fully disclose such Company Works to the Company.  Any copyrightable work falling within the
definition of  Company Works shall
be deemed a “work made for hire” as such term is defined in
17 U.S.C. Section 101. 
Executive hereby (i) irrevocably assigns, transfers and conveys, to
the extent permitted by applicable law, all right, title and interest in and to
the Company Works on a worldwide basis (including rights under patent,
copyright, trademark, trade secret, unfair competition and related laws) to the
Company or such other person as the Company shall designate, to the extent
ownership of any such rights does not automatically vest in the Company under
applicable law, and (ii) waives any moral rights therein to the fullest
extent permitted under applicable law. 
Executive agrees that he shall not use any Company Works for
Executive’s personal benefit, the benefit of a competitor, or for the
benefit of any other person or entity other than the Company Group.  Executive agrees to execute any further
documents and take any further actions reasonably requested by the Company, at
the sole cost and expense of the Company, to assist it in validating,
effectuating, maintaining, protecting, enforcing, perfecting, recording,
patenting or registering any of its rights hereunder.

11.           Non-Competition;
Non-Solicitation; Non-Disparagement.  Executive acknowledges and agrees that the
Company Group would be irreparably harmed if Executive were to
(i) engage in Competition with the any member of the Company Group
within the restricted time periods and geographical areas set forth herein,
(ii) solicit employees, or (iii) otherwise induce any supplier,
vendor, licensee, distributor, contractor or other business relation of the any
member of the Company Group to cease doing business with, or materially
alter its business relationship with any member of the Company Group.  Executive further 

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acknowledges and agrees that the covenants set forth
in Section 10 and in this Section 11 represent reasonable measures to
protect the business interests, including the Company Confidential Information,
of the Company Group.

(a)           In further
consideration of the granting of the Company’s undertakings set forth herein,
Executive agrees that:

(i)            during the period
beginning on the Separation Date and ending on the first anniversary of the
Separation Date (the “Non-Competition Period”), Executive shall
not directly or indirectly engage in, and shall cause any person controlled by
Executive not to engage in, Competition. 
Notwithstanding anything to the contrary contained herein, Executive
shall not be prohibited from owning up to one percent of the outstanding equity
securities of a person that is engaged in Competition and that is publicly
traded on a national securities exchange or in the over the counter market so
long as Executive, other than with respect to such ownership, shall not engage
in any activity with such person that otherwise would constitute Competition;

(ii)           during the Non-Competition
Period, Executive shall not, directly or indirectly, and shall cause any person
controlled by Executive not, to: 
(A) induce or attempt to induce any employee of the Company or any
of its Affiliates or any distributor of any member of the Company Group to
leave the employ of such individual’s employer; (B) hire or offer to hire
any person who is, or within the preceding six-month period was, an
employee of or consultant to any member of the Company Group or any distributor
of any member of the Company Group; or (C) induce or attempt to induce any
supplier, vendor, licensee, distributor, employee of any distributor,
contractor or other business relation of any member of the Company Group
to cease doing business with, or materially alter its business relationship
with, such person; and

(iii)          at all times following
the Separation Date, Executive shall not disparage, or make or solicit, or
encourage others to make or solicit, any derogatory or negative statement or communication
about any member of the Company Group or any of their respective
businesses, products, services or activities; provided, however,
that such restriction shall not prohibit or constrain testimony compelled by
valid legal process or valid dispute resolution process.

(b)           Executive hereby
acknowledges and agrees that the enforcement of the provisions of
Section 10 and this Section 11 may potentially interfere with
Executive’s ability to pursue a similar livelihood during the periods set forth
therein.  Executive acknowledges and
agrees that the Company entered into this Agreement in reliance on the
provisions of Section 10 and this Section 11 and the enforcement of
this Agreement is necessary to ensure the preservation, protection and
continuity of the business, trade secrets and other confidential information
and goodwill of the Company and its Affiliates to the extent and for the
periods of time expressly agreed to herein. 
Executive agrees that, due to the nature of the business of the Company
and its Affiliates, the restrictions set forth in this Agreement (including in
Section 10 and in this Section 11) are reasonable as to time and
scope.

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(c)           Notwithstanding any
provision to the contrary herein, (i) each member of the
Company Group may pursue, at its discretion, enforcement of
Section 10 and this Section 11 in any court of competent jurisdiction
(each a “Court”), and (ii) in no event shall any member of the
Company Group be held liable for Executive’s legal fees or costs in
pursuit of such claim, unless there is a final determination by such Court that
the applicable member of the Company Group acted in bad faith.

(d)           The
parties hereto agree that money damages would not be an adequate remedy for any
breach of Section 10 or this Section 11, and any breach of the terms
of Section 10 or in this Section 11 would result in irreparable
injury and damage to the Company Group for which no member of the
Company Group would have an adequate remedy at law.  Therefore, in the event of a breach or a
threatened breach of Section 10 or in this Section 11, the
Company Group, each of their affiliates and their respective successors or
assigns, in addition to any other rights and remedies existing in their favor
at law or in equity, shall be entitled to specific performance or immediate
injunctive or other equitable relief from a Court in order to enforce, or
prevent any violations of, the provisions of Section 10 or this
Section 11 (without posting a bond or other security), without having to
prove damages.  The terms of this
Section 11(d) shall not prevent any member of the Company Group from
pursuing any other available remedies for any breach or threatened breach of
this Agreement.

(e)           For purposes hereof,
“Competition” means to directly or indirectly own any interest in,
manage, operate, control, invest or acquire an interest in, participate in,
consult with, render services for, operate or in any manner engage in any
business or enterprise (including any division, group or franchise of a larger
organization), whether as a proprietor, owner, member, partner, stockholder,
director, officer, employee, consultant, joint venturer, investor, sales
representative or other participant, in which any member of the Company Group
engaged at any time during the two-year period immediately preceding
Executive’s action (the “Reference Date”) or engages in or has plans to
engage in as a potential new line of business as of the Reference Date, in each
case, anywhere in the world.

12.           Status.  Executive and Company agree that Executive
shall perform the Services as an independent contractor and shall have no power
or authority to bind any member of the Company Group.  The Company will report all fees
paid to Executive by filing a Form 1099-MISC with the Internal
Revenue Service as required by law. 
Because the Services will be performed by Executive as an independent
contractor and not an employee, unless otherwise required by the law, the
Company will not make any withholdings from any payments hereunder.  Executive agrees to accept exclusive
liability for complying with all applicable local, state and federal laws
governing self-employed individuals, including obligations such as
payment of taxes, social security, disability and other contributions based on
the Retainer and Final Payment. 
Executive will not receive any employee benefits under any Company-sponsored
benefit plans or participate in Company-sponsored health insurance.  Executive further agrees to indemnify and
hold harmless the Company against any and all liabilities to any taxing
authority for any taxes, (except the Company’s share of Social Security, if
any), interest or penalties with regard to or arising from the payment of fees.

13.           Notices.  Any notice, report or payment required or
permitted to be given or made under this Agreement by one party to the other
shall be deemed to have been duly given 

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or made if personally delivered or, if mailed, when
mailed by registered or certified mail, postage prepaid, to the other party at
the following addresses (or at such other address as shall be given in writing
by one party to the other):

	
  

  	
   

  	
  If to Executive:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Greg Hartman

  
	
   

  	
   

  	
  Last Address Shown in Company Records

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If to Company:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Biomet, Inc.

  
	
   

  	
   

  	
  56 E. Bell Drive

  
	
   

  	
   

  	
  P.O. Box 587

  
	
   

  	
   

  	
  Warsaw, Indiana 46581-0587

  
	
   

  	
   

  	
  Attn: General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Richard Porter, Esq.

  
	
   

  	
   

  	
  Kirkland & Ellis LLP

  
	
   

  	
   

  	
  200 East Randolph Drive

  
	
   

  	
   

  	
  Chicago, Illinois 60601

  

 

14.           Entire Agreement.  This Agreement (a) contains the complete
and entire understanding and agreement of Executive and Company with respect to
the subject matter hereof; and (b) supersedes all prior and
contemporaneous understandings, conditions and agreements, oral or written,
express or implied, respecting the engagement of Executive in connection with
the subject matter hereof.

15.           Modification or Waiver.  The provisions of this Agreement may be
amended and waived only with the prior written consent of the Company and
Executive.  No course of dealing between
the parties to this Agreement shall be deemed to affect or to modify, amend or
discharge any provision or term of this Agreement.  No delay on the part of Company or Executive
in the exercise of any of their respective rights or remedies shall operate as
a waiver thereof, and no single or partial exercise by Company or
Executive of any such right or remedy shall preclude other or further exercises
thereof.  A waiver of right or remedy on
any one occasion shall not be construed as a bar to or waiver of any such right
or remedy on any other occasion.

16.           Severability.  Whenever possible each provision and term of
this Agreement shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision or term of this Agreement shall be
held to be prohibited by or invalid under such applicable law, then such
provision or term shall be ineffective only to the extent of such 

 10
 

prohibition or invalidity, without invalidating or
affecting in any manner whatsoever the remainder of such provision or term or
the remaining provisions or terms of this Agreement.

17.           No Strict Construction.  The language used in this Agreement shall be
deemed to be the language chosen by the parties hereto to express their mutual
intent, and no rule of strict construction shall be applied against any party.

18.           Executive’s Representations.  Executive represents and warrants to Company
that (i) his execution, delivery and performance of this Agreement does
not and shall not conflict with, or result in the breach of or violation of,
any other agreement, instrument, order, judgment or decree to which he is a
party or by which he is bound, (ii) he is not a party to or bound by any
employment agreement, non-competition agreement or confidentiality agreement
with any other person or entity that would prevent his from performing under
this Agreement and (iii) upon the execution and delivery of this Agreement
by Company, this Agreement shall be the valid and binding obligation of her,
enforceable in accordance with its term.

19.           Counterparts.  This Agreement may be executed and delivered
by each party hereto in separate counterparts, each of which when so executed
and delivered shall be deemed an original and both of which taken together
shall constitute one and the same agreement.

20.           Successors and Assigns.  This Agreement will be binding upon and inure
to the benefit of the Company and any successor to the Company, including
without limitation any persons acquiring directly or indirectly all or
substantially all of the business or assets of the Company whether by purchase,
merger, consolidation, reorganization or otherwise (and such successor shall
thereafter be deemed the “Company” for purposes of this Agreement) and such
successor shall deliver a written affirmation of its obligations hereunder to
Executive.  This Agreement will inure to
the benefit of and be enforceable by Executive’s personal or legal
representatives, executors, administrators, successors, heirs, and legatees,
but otherwise will not be assignable, transferable or delegable by
Executive.  This Agreement is personal in
nature and neither of the parties hereto shall, without the consent of the
other, assign, transfer or delegate this Agreement or any rights or obligations
hereunder except as otherwise expressly provided in this Section 18.

21.           Choice of Law.  This Agreement shall be governed by and
construed in accordance with the domestic laws of the State of Indiana, without
giving effect to any choice of law or conflict of law provision or rule
(whether of the State of Indiana or any other jurisdiction) that would cause
the application of the laws of any jurisdiction other than the State of
Delaware.

22.           Mutual Waiver of Jury Trial.  BECAUSE DISPUTES ARISING IN CONNECTION WITH
COMPLEX TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN
EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL
LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT THEIR
DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS.  THEREFORE, TO ACHIEVE THE BEST COMBINATION OF
THE BENEFITS OF THE JUDICIAL SYSTEM 

 11
 

AND OF ARBITRATION, EACH PARTY TO THIS AGREEMENT
HEREBY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING
BROUGHT TO RESOLVE ANY DISPUTE BETWEEN OR AMONG ANY OF THE PARTIES HERETO,
WHETHER ARISING IN CONTRACT, TORT, OR OTHERWISE, ARISING OUT OF, CONNECTED
WITH, RELATED OR INCIDENTAL TO THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED
HEREBY AND/OR THE RELATIONSHIP ESTABLISHED AMONG THE PARTIES HEREUNDER.

23.           Delivery by Facsimile.  This Agreement, the agreements referred to
herein, and each other agreement or instrument entered into in connection
herewith or therewith or contemplated hereby or thereby, and any amendments
hereto or thereto, to the extent signed and delivered by means of a facsimile
machine, shall be treated in all manner and respects as an original agreement
or instrument and shall be considered to have the same binding legal effect as
if it were the original signed version thereof delivered in person.

24.           Survivorship.  Any provision of this Agreement, that by its
terms, is intended to continue to apply after any termination or expiration of
the Consulting Term or the Agreement shall survive such termination or
expiration and continue to apply in accordance with its terms.

 

*   *   *  
*   *

 12
 

IN WITNESS WHEREOF, Executive and Company have caused
this Agreement to be duly executed and delivered on the date and year first
above written.

	
  

  	
   

  	
  BIOMET, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: /s/ Jeffrey R. Binder

  
	
   

  	
   

  	
  Its: President and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/Gregory D. Hartman

  
	
   

  	
   

  	
  Greg Hartman

  

 

 13Exhibit 10.2

EXECUTION COPY

RETIREMENT
AND CONSULTING AGREEMENT

THIS RETIREMENT
AND CONSULTING AGREEMENT (this “Agreement”) is made as of March 30,
2007 by and between BIOMET, INC., an Indiana corporation (“Company”),
and Daniel P. Hann (“Executive”).

WHEREAS, Executive
has elected to retire from the Company and to resign all his positions with the
Company effective as of March 30, 2007;

WHEREAS, the
parties have agreed to resolve certain matters related to Executive’s
retirement;

WHEREAS, the
Company desires to engage Executive as a consultant on the terms set forth in
this Agreement to assist in the transition of certain matters for which
Executive was previously responsible; and

WHEREAS, Executive
desires to provide such consulting services to the Company on the terms set
forth in this Agreement

NOW, THEREFORE, in
consideration of the foregoing premises and the respective agreements
hereinafter set forth and the mutual benefits to be derived herefrom, Company
and Executive hereby agree as follows:

1.     Retirement and Resignation.  Effective as of March 30, 2007 (the “Separation
Date”), Executive hereby retires from the Company and, as a consequence,
voluntarily resigns  his employment with
the Company and all of its affiliates, including without limitation Executive’s
position as Executive Vice President of Administration and as a member of the
Company’s Board of Directors (the “Board”) and the board of directors of
all the Company’s subsidiaries and affiliates.

2.     No Entitlement to Severance.  Executive acknowledges and agrees that
Executive is not entitled to, and hereby waives any potential entitlement to,
any severance or termination benefits that could be payable in connection with
his retirement and resignation from employment with the Company.  Without limiting the foregoing, Executive
hereby agrees that the Severance and Change in Control Agreement dated as of
September 20, 2006 by and between Executive and the Company (the “Severance
Agreement”) is hereby terminated and of no further force or effect.  Executive agrees that Executive shall not be
entitled to, and hereby waives any potential future entitlement to, any of the
benefits or payments described in the Severance Agreement.  Promptly after, but in any event within
thirty days after, the Effective Date, the Company will pay Executive $133,333
in full discharge of Executive’s annual bonus for the Company’s 2007 fiscal
year and shall pay Executive any other amounts accrued and owing under the
terms of any other compensation or benefit program of the Company (excluding
any severance or termination program) in which Executive participates.

3.     Treatment of Options.  Executive acknowledges that the Company is
conducting an investigation (the “Investigation”) to determine the
extent to which compensatory options previously granted by the Company were
granted with an exercise price lower than the fair market value of the Company’s
common stock on the applicable date of grant. 
The Company and Executive hereby agree to the following with respect to
options granted to him by the Company.

(a)          Previously Exercised Options.  Executive shall repay to the Company in
accordance with this Section 3(a) the aggregate amount (the “Discount”)
by which the exercise price of any or all compensatory options granted to
Executive by the Company that Executive exercised prior to the date hereof was
less than the fair market value of the Company’s common stock on the applicable
date of grant of each such option.  The
Company shall determine the amount of the Discount in good faith and, absent
manifest error, the Company’s determination shall be final, binding and
conclusive.  Executive shall pay the
amount of the Discount to the Company promptly after, but in any event within
thirty days after, receipt of a written notice from the Company setting out in
reasonable detail the calculation of the Discount.  Without in any way limiting Executive’s
obligation to repay the Discount directly, Executive hereby authorizes the
Company to withhold the Discount from any and all amounts otherwise payable to
Executive hereunder or otherwise in the event Executive fails within thirty
days of receipt of the written notice specified above to pay the Discount.  If the Company agrees to accept liability for
or otherwise reimburse all other present or former executive officers or
directors for adverse tax consequences resulting from any disqualification of
stock options, the Company agrees to consider in good faith providing the same
benefit to Executive.

(b)          Vested Options.  Executive agrees that, with respect to all
unexercised options previously granted to Executive that are vested and
exercisable on the date hereof (the “Vested Options”), the Company may,
without any further need for Executive’s consent, increase the exercise price
of such options to an amount the Company determines in good faith is equal to
the fair market value of the Company’s common stock on the date such options
were originally granted.  Absent manifest
error, the Company’s determination of the appropriate exercise price shall be
final, binding and conclusive.  Executive
agrees to execute any document related to such adjustment reasonably requested
by the Company.  In the event Executive
exercises any options described in this Section 3(b) prior to any adjustment
contemplated hereby, such options shall be treated in accordance with Section
3(a).  Vested Options shall otherwise be
exercisable after the Separation Date in accordance with their terms, it being
agreed that the Vested Options shall remain exercisable until the earlier of
(i) the date such Vested Options would otherwise expire (in the absence of
Executive’s retirement) or (ii) the three month anniversary of the Separation
Date (or, if earlier, the latest date on which such Vested Options may be
exercised without incurring any penalty under Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”)).  The Company shall consider in good faith
permitting Executive to cancel the Vested Options in exchange for a cash
payment from the Company in an amount equal to the net amount Executive would
have realized upon exercise of the Vested Options.

(c)          Unvested Options.  Effective as of the Effective Date, the
Company agrees to accelerate the vesting and exercisability of the options
described on Exhibit A (the “Accelerated Options”), which Accelerated
Options shall then remain exercisable after 

 2
 

the Separation Date in
accordance with their terms, it being agreed that the Accelerated  Options shall remain exercisable until the
earlier of (i) the date such Accelerated Options would otherwise expire (in the
absence of Executive’s retirement) or (ii) the three month anniversary of the
Separation Date (or, if earlier, the latest date on which such Accelerated
Options may be exercised without incurring any penalty under Section 409A of
the Code).  Promptly after, but in any
event within thirty business days after, the exercise or cash-out of the
Accelerated Options, the net proceeds (which shall be in the form of shares if
the Accelerated Options are exercised and in cash if the Accelerated Options
are cashed out) of such exercise or cash-out (i.e., after taking into account
the payment of the applicable exercise price, any associated brokerage and
interest costs and applicable taxes) (the “Escrowed Funds”) shall be
deposited in escrow (pursuant to an escrow agreement substantially in the form
attached hereto as Exhibit B and with such changes required by the entity
selected as escrow agent) and held until the expiration of the Consulting Term
(as defined below).  The Escrowed Funds
shall be payable to Executive in accordance with the applicable terms of this
Agreement.  Any Escrowed Funds that are
not payable to Executive under the terms of this Agreement shall be paid to the
Company after the expiration or termination of the Consulting Term. The
Escrowed Funds will be reduced by the aggregate amount, if any, that the
exercise price of any options described in this Section 3(c) would have been
increased pursuant to Section 3(b) if they had not been exercised prior to any
such adjustment.  Executive acknowledges
and agrees that he will not be entitled to, and hereby waives and entitlement
he might otherwise have to, accelerated vesting of any other options other than
the Accelerated Options as a consequence of his retirement from the
Company.  The Company shall consider in
good faith permitting Executive to cancel the Accelerated Options in exchange
for a cash payment from the Company in an amount equal to the value of the
Escrowed Funds that would have paid to Executive if (i) the Accelerated Options
were exercised on the date they were terminated, (ii) the net proceeds of such
deemed exercise were deposited into escrow in the form of shares and (iii) the
shares were converted to a cash value at the time of payment to Executive.  For the sake of clarity, Executive’s
entitlement to such payment shall be subject to the terms and conditions of
this Agreement and will not (A) be paid to Executive if the Escrowed Funds
would not have been paid to Executive and (B) exceed the value of the Escrowed
Funds that would have been paid to Executive but for the application of the
immediately preceding sentence.

(d)          Remaining Options.  All unvested options previously granted to
Executive that are not listed on Exhibit A shall be terminated and canceled as
of Executive’s Separation Date.

4.     Release of Claims.

(a)          General
Release.  In consideration of the
Company’s obligations hereunder and acceptance of Executive’s retirement and
resignation, Executive, on behalf of himself and Executive’s heirs, successors,
and assigns, hereby knowingly and voluntarily releases and forever discharges
the Company and its subsidiaries and affiliates, together with all of their
respective current and former officers, directors, consultants, agents,
representatives and employees, and each of their predecessors, successors and
assigns (collectively, the “Releasees”), from any and all debts,
demands, actions, causes of actions, accounts, covenants, contracts,
agreements, claims, damages, omissions, promises, and any and all claims and
liabilities whatsoever, of every name and nature, known or unknown, suspected
or unsuspected, both in law and equity (“Claims”), which Executive ever
had, now has, or may hereafter claim to have against the Releasees by reason of
any matter, cause or thing whatsoever arising from the beginning of time to the
time Executive executes this Agreement (the “General Release”).  This General Release of Claims shall apply to
any Claim of any type, including, without limitation, any and all Claims of any
type that Executive may have arising under the common law, under Title VII
of the Civil Rights Act of 1964, the Civil Rights Act of
1991, the Age Discrimination in 

 3
 

Employment Act (“ADEA”), the Older Workers Benefit Protection Act, the
Americans With Disabilities Act, the Family and Medical Leave Act, the
Employee Retirement Income Security Act (“ERISA”), the Sarbanes-Oxley Act
of 2002 or the California Fair Employment and Housing Act, the California
Family Rights Act, or the California Labor Code section 1400 et seq.,
each as amended, and any other Federal, state or local statutes, regulations,
ordinances or common law, or under any policy, agreement, contract,
understanding or promise, written or oral, formal or informal, between any of
the Releasees and Executive, and shall further apply, without limitation, to
any and all Claims in connection with, related to or arising out of Executive’s
employment, or the termination of Executive’s employment, with the Company; provided,
however, that this General Release shall not apply to or impair
(i) claims for vested benefits (excluding any severance or termination
benefits which are specifically waived hereunder) pursuant to any other Company
employee benefit plan, as defined in ERISA, in which Executive were a
participant before the Separation Date; (ii) any rights to indemnification
Executive may have under the charter, by-laws of the Company or
applicable law; or (iii) any claims that may arise from any violation or
breach of this Agreement. For the purpose of implementing a full and complete
release, Executive understands and agrees that this Agreement is intended to
include all claims, if any, which Executive may have and which Executive does
not now know or suspect exist in Executive’s favor against the Company or any
of the Releasees and that this Agreement extinguishes those claims.

(b)          No Claims.  Executive represents and warrants that
Executive has not filed any complaints or charges with any court or
administrative agency against the Company or any of the Releasees, which have
not been dismissed, closed, withdrawn or otherwise terminated on or
before the date of this Agreement. 
Executive further represents and warrants that Executive has not
assigned or transferred or attempted to assign or transfer, nor will Executive
attempt to assign or transfer, to any person or entity not a party to this
Agreement any of the Claims Executive is releasing in this Agreement.  Furthermore, by signing this General Release
of Claims, Executive represents and agrees that Executive will not be entitled
to any personal recovery in any action or proceeding that may be commenced on
Executive’s behalf arising out of the matters released hereby.

(c)          ADEA/OWBPA Waiver.  Executive specifically releases and waives
any right or claim against the Company arising out of his employment or his
resignation of employment with the Company under the Age Discrimination in
Employment Act, as amended, 29 U.S.C. § 621 et seq. (“ADEA”)
and the Older Workers Benefit Protection Act, 29 U.S.C. § 621
et seq. (“OWBPA”) (such release and waiver referred to as the “Waiver”).  Executive understands and agrees that
(i) this Agreement is written in a manner that he understands;
(ii) he does not release or waive rights or claims that may arise after he
signs this Agreement; (iii) he waives rights and claims he may have had
under the OWBPA and the ADEA, but only in exchange for payments and/or benefits
in addition to anything of value to which he is already entitled;
(iv) Executive has been advised to consult with an attorney before signing
this Agreement; (v) he has twenty-one (21) calendar days (the “Offer
Period”) from receipt of this Agreement to consider whether to sign
it.  If Executive signs before the end of
the Offer Period, Executive acknowledges that his decision to do so was
knowing, voluntary, and not induced by fraud, misrepresentation, or a threat to
withdraw, alter, or provide different terms prior to the expiration of the
Offer Period.  Executive agrees that
changes or revisions to this Agreement, whether material or immaterial, do not
restart the running of the Offer Period; 

 4
 

(vi) Executive has
seven (7) calendar days after signing this Agreement to revoke the waiver
(the “Revocation Period”) and (vii) this Waiver shall not become
effective or enforceable until the Revocation Period has expired.  If Executive revokes the Waiver, Section 5 of
this Agreement and the provisions of this Agreement relating to Executive’s
services as a Consultant (i.e., Sections 6, 7, 8, and 9) shall not be effective
or enforceable and Executive shall not be entitled to the payments or benefits
provided for in Sections 8 or 9 of this Agreement.  To be effective, the revocation must be in
writing and received by Jeffrey R. Binder, Chief Executive Officer, at the
Company’s address set forth in Section 13. 
The “Effective Date” means the date as of which the Revocation
Period expires without Executive having revoked the Waiver.

5.     Continuing
Indemnification.  Subject to the
terms and conditions of Section 6.3 of the Company’s Restated Articles of
Incorporation and, to the extent relevant, the Company’s by-laws, in each case,
as in effect on the date hereof, the Company will advance and pay reasonable
expenses (including attorneys’ fees but not including judgments, penalties,
fines, or settlements) incurred by Executive in connection with (a) proceedings
arising out the Company’s historic grant of compensatory stock options; and
(b)  any other proceeding against or
involving the Company in which Executive may be involved arising out of his
position as a director, officer, or employee of the Company; provided that the
Company’s obligation to advance and pay such expenses shall be subject to the
terms of any undertaking signed by Executive prior to the date hereof (which,
under certain circumstances, requires repayment of expenses paid or advanced)
or, in the absence of such an undertaking, to the Company’s usual and customary
practice with regard to its current and former employees in such matters.  The Company will indemnify Executive against
any judgment, penalty, fine or settlement related to any of the matters described
in the preceding sentence on the terms and conditions provided in the Company’s
Restated Articles of Incorporation and, to the extent relevant, by-laws, in
each case, as in effect on the date hereof.

6.     Consulting Term.  The Company hereby agrees to engage Executive
as a consultant during the period commencing on the Separation Date and, unless
terminated earlier pursuant to Section 9, continuing until the first
anniversary of the Separation Date (as applicable, the “Consulting
Separation Date”).  The period from
the Separation Date to the Consulting Separation Date shall be referred to as
the “Consulting Term.”

7.     Consulting Services.  During the Consulting Term, Executive shall
make himself available to provide such transition services as are reasonably
requested by the Company’s Chief Executive Officer (“CEO”) or his designee (the
“Company Representative”), including, without limitation, services
related to transitioning client, supplier, vendor and distributor relationships
to other Company personnel (the “Services”).  Executive agrees to provide the Services at
such times and locations as the Company Representative reasonably requires, it
being understood and agreed that the performance of the Services will require
reasonable amounts of travel.  Executive
agrees to use his best efforts to perform the Services in a professional and
competent manner.  Executive may, subject
to the terms of this Agreement, provide consulting services to other entities
so long as such services do not, as determined by the CEO in good faith,
interfere with Executive’s performance of the Services.

 5
 

8.     Consulting Compensation
and Expense.

(a)          During the Consulting Term, Executive
shall receive for the Services to be rendered hereunder a monthly retainer (the
“Retainer”) of $41,666 (i.e., an aggregate Retainer of $500,000),
which  shall be paid monthly in arrears.

(b)          The Company shall reimburse Executive
for reasonable expenses,  including
without limitation travel expenses, incurred in connection with rendering the
Services hereunder in accordance with policies adopted by the Company form time
to time.

(c)          During the Consulting Term, the
Company shall pay or reimburse Executive the monthly amounts necessary to
continue health care coverage for Executive and his eligible dependents pursuant
to Section 4980B of the Code.

(d)          Promptly after, but in any event
within 30 days after, the expiration of the Consulting Term, the Company shall
pay Executive a bonus in an amount equal to the sum of $400,000 and the
Escrowed Funds (the “Final Payment”).  As a condition to receiving all or any
portion of the Final Payment, Executive shall be required to execute,
deliver and not revoke a general release of claims prepared by the Company that
is consistent in all material respects with the general release set forth in
Section 4 of this Agreement.

9.     Termination of the Consulting Term.

(a)          Termination of the Consulting Term.  The Company may terminate the Consulting Term
and Executive’s engagement as a consultant for Cause or without Cause.

(b)          Termination by the Company For
Cause.  If the Company terminates the
Consulting Term and Executive’s engagement as a consultant hereunder for Cause,
Executive shall be entitled, in full satisfaction of the Company’s obligations
hereunder, to payment of his Retainer through the date of such termination
(pro rated for any fractional portion of a month).  For the avoidance of doubt, if the Company
terminates the Consulting Term and Executive’s engagement as a consultant for
Cause, Executive shall not receive any further payments of the Retainer or the
Final Payment.

(c)          Cause.  For purposes of this Agreement, “Cause”
shall mean a good faith determination by the Board or the CEO that one or more
of the following has occurred: (i) the termination of the Agreement and
Plan of Merger by and Among Biomet, Inc., LVB Acquisition Merger Sub, Inc. and
LVB Acquisitions LLC (the “Transaction Agreement”) as a result of issues
related to the Investigation or to the subject matter of the Investigation,
(ii) consummation of transactions contemplated by the Transaction Agreement at
a per share of common stock, without par value, of the Company of less than $44
where such reduction in the purchase price is because of issues related to the
Investigation or to the subject matter of the Investigation, (iii) Executive’s
failing to satisfactorily perform the Services or discharge his duties
hereunder for any reason, (iv) Executive’s failing to satisfactorily cooperate
with the Securities and Exchange Commission (the “SEC”) in connection
with any investigation related to the Investigation or the subject matter of
the Investigation; or (v) Executive’s material breach of this Agreement or the
Company’s code of conduct that is not cured to the CEO’s satisfaction within
10 days of notice to Executive.  Any
assertion of Executive’s right not to be a witness 

 6
 

against himself, other
than in the context of cooperation with the SEC as set forth in Section
9(c)(iv), shall not be considered a failure to provide reasonably requested
transition services within the meaning of this Section 9.

(d)          Termination by the Company Without
Cause.  If the Company terminates the
Consulting Term and Executive’s engagement as a consultant hereunder without
Cause, Executive shall be entitled to continued payment of the Retainer, Final
Payment and other payments provided herein in accordance with the terms of this
Agreement that would have applied in the absence of such termination.

10.   Confidential Information; Inventions of
Patents.

(a)          Executive acknowledges and agrees
that, as a result of Executive’s past, current or future employment or
consulting relationship with and engagement by the Company or any of its
subsidiaries (the “Company Group”), Executive may develop, obtain,
or learn about (or may have developed, obtained or learned about) Confidential
Information (as defined below), and the success of the Company Group
depends upon the use and protection of such information.  For purposes hereof, “Confidential
Information” means any proprietary information, data, ideas, concepts,
discoveries, trade secrets, inventions (whether or not patentable or reduced to
practice), innovations, improvements, know-how, developments,
manufacturing and production and other techniques, methods, processes,
treatments, drawings, sketches, specifications, designs, plans, patterns,
models, works (including Company Works (as defined below)), plans and
strategies, and all other intellectual property and confidential or proprietary
information in any form or medium (whether merely remembered or embodied in a
tangible or intangible form or medium) whether now or hereafter existing,
relating to or arising from the past, current or potential business, activities
and/or operations of any member of the Company Group, including any such
information relating to or concerning finances, sales, marketing, advertising,
transition, promotions, pricing, personnel, customers, suppliers, vendors, raw
material sources, partners and/or competitors. Notwithstanding the foregoing, “Confidential
Information” shall not include such portions of any information that are or
become generally known to and available for use by the public other than as a
result of any act or omission by Executive or otherwise as a result of
Executive’s breach of any provision of this Agreement.

(b)          Executive shall not disclose or use
for Executive’s own account any of the Confidential Information, except as
necessary for the performance of Executive’s duties under this Agreement,
without the prior written consent of the CEO, unless and to the extent that any
Confidential Information is required to be disclosed pursuant to any applicable
law or court order; provided that if Executive is requested or required
(by oral question or request for information or documents in any legal
proceeding, interrogatory, subpoena, civil investigative demand, or similar
process) to disclose any Confidential Information, then Executive shall (if so
permitted) notify the Company promptly of the request or requirement in writing
so that the Company may seek an appropriate protective order (at the Company’s
sole expense) or waive compliance with the provisions of this
Section 10(b).  If, in the absence
of a protective order or the receipt of a waiver hereunder, Executive is, on
the advice of Executive’s counsel, compelled to disclose any Confidential
Information to any person or tribunal or else stand liable for contempt,
Executive may disclose the Confidential Information to such person or tribunal;
provided that Executive shall use commercially reasonable efforts to
obtain, at the request and 

 7
 

expense of the Company,
an order or other assurance that confidential treatment shall be accorded to
such portion of the Confidential Information required to be disclosed as the
Company shall designate and shall disclose only such portions of the
Confidential Information as are required by such tribunal to be disclosed.  In any event, Executive shall use
commercially reasonable efforts to mark, or cause to be marked, any
Confidential Information that is disclosed in accordance with this
Section 10(b) as confidential and to accord such information confidential
treatment.  Upon the termination of the
Consulting Term, or at any other time that the Company may request in writing,
Executive agrees to (i) cease all use of all Confidential Information and
Company Works and (ii) deliver to the Company or, at the Company’s
election, destroy, all memoranda, notes, plans, records, reports, notebooks
(and similar repositories of or containing Confidential Information and/or
Company Works), computer files and other documents or other materials (and
all copies, summaries and extracts thereof, in whatever form or medium)
relating to the business, operations and/or activities of any member of the
Company Group or that otherwise constitute Confidential Information, and
at any time thereafter, if any such materials are brought to Executive’s
attention or Executive discovers them in Executive’s possession or control,
Executive shall deliver such materials to the Company, or, at the Company’s
election, destroy all such materials, promptly upon such notice or discovery.

(c)          If Executive creates, invents,
designs, develops, contributes to or improves any works of authorship,
inventions, whether patentable or unpatentable and whether or not reduced to
practice, know how, data, processes, methods, programs, systems, materials,
documents or other work product or other intellectual property, either alone or
in conjunction with third parties, at any time during Executive’s employment by
or engagement with any member of the Company Group (collectively, “Works”),
to the extent that such Works were created, invented, designed, developed,
contributed to, or improved with the use of any resources of any member of the
Company Group and/or within the scope of such employment or engagement
and/or relate to the business or operations, or actual or demonstrably
anticipated research or development, of the Company or any of its Subsidiaries
(collectively, the “Company Works”), then Executive shall promptly
and fully disclose such Company Works to the Company.  Any copyrightable work falling within the
definition of  Company Works shall
be deemed a “work made for hire” as such term is defined in
17 U.S.C. Section 101. 
Executive hereby (i) irrevocably assigns, transfers and conveys, to
the extent permitted by applicable law, all right, title and interest in and to
the Company Works on a worldwide basis (including rights under patent,
copyright, trademark, trade secret, unfair competition and related laws) to the
Company or such other person as the Company shall designate, to the extent
ownership of any such rights does not automatically vest in the Company under
applicable law, and (ii) waives any moral rights therein to the fullest
extent permitted under applicable law. 
Executive agrees that he shall not use any Company Works for
Executive’s personal benefit, the benefit of a competitor, or for the
benefit of any other person or entity other than the Company Group.  Executive agrees to execute any further
documents and take any further actions reasonably requested by the Company, at
the sole cost and expense of the Company, to assist it in validating,
effectuating, maintaining, protecting, enforcing, perfecting, recording,
patenting or registering any of its rights hereunder.

11.   Non-Competition;
Non-Solicitation; Non-Disparagement.  Executive acknowledges and agrees that the
Company Group would be irreparably harmed if Executive were to
(i) engage in Competition with the any member of the Company Group
within the 

 8
 

restricted time periods
and geographical areas set forth herein, (ii) solicit employees, or
(iii) otherwise induce any supplier, vendor, licensee, distributor,
contractor or other business relation of the any member of the
Company Group to cease doing business with, or materially alter its
business relationship with any member of, the Company Group.  Executive further acknowledges and agrees
that the covenants set forth in Section 10 and in this Section 11
represent reasonable measures to protect the business interests, including the
Company Confidential Information, of the Company Group.

(a)          In further consideration of the
granting of the Company’s undertakings set forth herein, Executive agrees that:

(i)     during the period beginning on the
Separation Date and ending on the six month anniversary of the expiration or
termination of the Consulting Term (the “Non-Competition Period”),
Executive shall not directly or indirectly engage in, and shall cause any
person controlled by Executive not to engage in, Competition.  Notwithstanding anything to the contrary
contained herein, Executive shall not be prohibited from owning up to one
percent of the outstanding equity securities of a person that is engaged in
Competition and that is publicly traded on a national securities exchange or in
the over the counter market so long as Executive, other than with respect to
such ownership, shall not engage in any activity with such person that
otherwise would constitute Competition;

(ii)    during the Non-Competition Period,
Executive shall not, directly or indirectly, and shall cause any person
controlled by Executive not, to: 
(A) induce or attempt to induce any employee of the Company or any
of its affiliates or any distributor of any member of the Company Group to
leave the employ of such individual’s employer; (B) hire or offer to hire
any person who is, or within the preceding six-month period was, an
employee of or consultant to any member of the Company Group or any
distributor of any member of the Company Group; or (C) induce or attempt
to induce any supplier, vendor, licensee, distributor, employee of any
distributor, contractor or other business relation of any member of the
Company Group to cease doing business with, or materially alter its
business relationship with, such person; and

(iii)   at all times following the Separation Date,
Executive shall not disparage, or make or solicit, or encourage others to make
or solicit, any derogatory or negative statement or communication about any
member of the Company Group or any of their respective businesses,
products, services or activities; provided, however, that such
restriction shall not prohibit or constrain testimony compelled by valid legal
process or valid dispute resolution process.

(b)          Executive hereby acknowledges and
agrees that the enforcement of the provisions of Section 10 and this
Section 11 may potentially interfere with Executive’s ability to pursue a
similar livelihood during the periods set forth therein.  Executive acknowledges and agrees that the
Company entered into this Agreement in reliance on the provisions of
Section 10 and this Section 11 and the enforcement of this Agreement
is necessary to ensure the preservation, protection and continuity of the
business, trade secrets and other confidential 

 9
 

information and
goodwill of the Company and its affiliates to the extent and for the periods of
time expressly agreed to herein. 
Executive agrees that, due to the nature of the business of the Company
and its affiliates, the restrictions set forth in this Agreement (including in
Section 10 and in this Section 11) are reasonable as to time and
scope.

(c)          Notwithstanding any provision to the
contrary herein, (i) each member of the Company Group may pursue, at
its discretion, enforcement of Section 10 and this Section 11 in any
court of competent jurisdiction (each a “Court”), and (ii) in no
event shall any member of the Company Group be held liable for Executive’s
legal fees or costs in pursuit of such claim, unless there is a final
determination by such Court that the applicable member of the Company Group
acted in bad faith.

(d)          The parties hereto agree that money
damages would not be an adequate remedy for any breach of Section 10 or
this Section 11, and any breach of the terms of Section 10 or in this
Section 11 would result in irreparable injury and damage to the
Company Group for which no member of the Company Group would have an
adequate remedy at law.  Therefore, in
the event of a breach or a threatened breach of Section 10 or in this
Section 11, the Company Group, each of their affiliates and their
respective successors or assigns, in addition to any other rights and remedies
existing in their favor at law or in equity, shall be entitled to specific
performance or immediate injunctive or other equitable relief from a Court in
order to enforce, or prevent any violations of, the provisions of
Section 10 or this Section 11 (without posting a bond or other
security), without having to prove damages. 
The terms of this Section 11(d) shall not prevent any member of the
Company Group from pursuing any other available remedies for any breach or
threatened breach of this Agreement.

(e)          For purposes hereof, “Competition”
means to directly or indirectly own any interest in, manage, operate, control,
invest or acquire an interest in, participate in, consult with, render services
for, operate or in any manner engage in any business or enterprise (including
any division, group or franchise of a larger organization), whether as a
proprietor, owner, member, partner, stockholder, director, officer, employee,
consultant, joint venturer, investor, sales representative or other
participant, in which any member of the Company Group engaged at any time
during the two-year period immediately preceding Executive’s action (the “Reference
Date”) or engages in or has plans to engage in -as a potential new line of
business as of the Reference Date, in each case, anywhere in the world.

(f)           In exchange for Executive’s
compliance with the covenants set forth in this Section 11, the Company shall
pay Executive, in arrears, a monthly fee of $50,000 (the “Non-Compete Fee”)
during each of the six months (i.e., aggregate Non-Compete Fees of $300,000) of
the Non-Competition Period commencing after the termination or expiration of
the Consulting Term.  The Company shall
be released from the obligation to pay all or any remaining portion of the
Non-Compete Fees if the CEO or the Board determine in good faith that Executive
has materially breached any of his obligations under this Section 11.  Executive acknowledges that being so released
is not sufficient compensation for any breach of this Section 11 and Executive
covenants that he shall not so assert in any proceeding regarding this Section
11.

 10
 

12.   Status.  Executive and Company agree that Executive
shall perform the Services as an independent contractor and shall have no power
or authority to bind any member of the Company Group.  The Company will report all fees paid to Executive in accordance with
Sections 8 and 9 of this Agreement by filing a Form 1099-MISC with the Internal Revenue
Service as required by law.  Because the
Services will be performed by Executive as an independent contractor and not an
employee, unless otherwise required by the law, the Company will not make any
withholdings from any payments hereunder. 
Executive agrees to accept exclusive liability for complying with all
applicable local, state and federal laws governing self-employed
individuals, including obligations such as payment of taxes, social security,
disability and other contributions based on the Retainer and
Final Payment.  Executive will not
receive any employee benefits under any Company-sponsored benefit plans
or participate in Company-sponsored health insurance.  Executive further agrees to indemnify and
hold harmless the Company against any and all liabilities to any taxing
authority for any taxes, (except the Company’s share of Social Security, if any), interest or penalties with
regard to or arising from the payment of fees pursuant to Sections 8 and 9 of
this Agreement.

13.   Notices.  Any notice, report or payment required or
permitted to be given or made under this Agreement by one party to the other
shall be deemed to have been duly given or made if personally delivered or, if
mailed, when mailed by registered or certified mail, postage prepaid, to the
other party at the following addresses (or at such other address as shall be
given in writing by one party to the other):

	
  

  	
  If to Executive:

  
	
   

  	
   

  
	
   

  	
  Daniel P. Hann

  
	
   

  	
  230 EMS T5 Lane

  
	
   

  	
  Leesburg, Indiana 46538

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Ronald S. Safer and Matthew C. Crowl

  Schiff Hardin LLP

  6600 Sears Tower

  Chicago, IL 60606

  
	
   

  	
   

  
	
   

  	
  If to Company:

  
	
   

  	
   

  
	
   

  	
  Biomet, Inc.

  
	
   

  	
  56 E. Bell Drive

  
	
   

  	
  P.O. Box 587

  
	
   

  	
  Warsaw, Indiana 46581-0587

  
	
   

  	
  Attn: General Counsel

  

 

 11
 

 

	
  

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Richard Porter, Esq.

  
	
   

  	
  Kirkland & Ellis LLP

  
	
   

  	
  200 East Randolph Drive

  
	
   

  	
  Chicago, Illinois 60601

  

 

14.   Entire Agreement.  This Agreement (a) contains the complete
and entire understanding and agreement of Executive and Company with respect to
the subject matter hereof; and (b) supersedes all prior and
contemporaneous understandings, conditions and agreements, oral or written,
express or implied, respecting the engagement of Executive in connection with
the subject matter hereof.

15.   Modification or Waiver.  The provisions of this Agreement may be
amended and waived only with the prior written consent of the Company and
Executive.  No course of dealing between
the parties to this Agreement shall be deemed to affect or to modify, amend or
discharge any provision or term of this Agreement.  No delay on the part of Company or Executive
in the exercise of any of their respective rights or remedies shall operate as
a waiver thereof, and no single or partial exercise by Company or
Executive of any such right or remedy shall preclude other or further exercises
thereof.  A waiver of right or remedy on
any one occasion shall not be construed as a bar to or waiver of any such right
or remedy on any other occasion.

16.   Severability.  Whenever possible each provision and term of
this Agreement shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision or term of this Agreement shall be
held to be prohibited by or invalid under such applicable law, then such
provision or term shall be ineffective only to the extent of such prohibition
or invalidity, without invalidating or affecting in any manner whatsoever the
remainder of such provision or term or the remaining provisions or terms of
this Agreement.

17.   No Strict Construction.  The language used in this Agreement shall be
deemed to be the language chosen by the parties hereto to express their mutual
intent, and no rule of strict construction shall be applied against any party.

18.   Executive’s Representations.  Executive represents and warrants to Company
that (i) his execution, delivery and performance of this Agreement does
not and shall not conflict with, or result in the breach of or violation of,
any other agreement, instrument, order, judgment or decree to which he is a
party or by which he is bound and (ii) he is not a party to or bound by
any employment agreement, non-competition agreement or confidentiality
agreement with any other person or entity that would prevent him from
performing under this Agreement.

19.   Counterparts.  This Agreement may be executed and delivered
by each party hereto in separate counterparts, each of which when so executed
and delivered shall be deemed an original and both of which taken together
shall constitute one and the same agreement.

20.   Successors and Assigns.  This Agreement will be binding upon and inure
to the benefit of the Company and any successor to the Company, including
without limitation any 

 12
 

persons acquiring
directly or indirectly all or substantially all of the business or assets of
the Company whether by purchase, merger, consolidation, reorganization or
otherwise (and such successor shall thereafter be deemed the “Company” for
purposes of this Agreement) and such successor shall deliver a written affirmation
of its obligations hereunder to Executive. 
This Agreement will inure to the benefit of and be enforceable by
Executive’s personal or legal representatives, executors, administrators,
successors, heirs, and legatees, but otherwise will not be assignable,
transferable or delegable by Executive. 
This Agreement is personal in nature and neither of the parties hereto
shall, without the consent of the other, assign, transfer or delegate this
Agreement or any rights or obligations hereunder except as otherwise expressly
provided in this Section 20.

21.   Choice of Law, Jurisdiction and Venue.  This Agreement shall be governed by and
construed in accordance with the domestic laws of the State of Indiana, without
giving effect to any choice of law or conflict of law provision or rule
(whether of the State of Indiana or any other jurisdiction) that would cause
the application of the laws of any jurisdiction other than the State of
Indiana.  All actions and proceedings
arising out of or relating to this Agreement shall be heard and determined in
any Indiana state or federal court sitting in Indianapolis, Indiana, and each
party hereto hereby irrevocably accepts and consents to the exclusive personal
jurisdiction of those courts for such purpose. 
In addition, each party hereto hereby irrevocably waives, to the fullest
extent permitted by law, any objection which he or it may now or hereafter have
to the laying of venue of any action or proceeding arising out of or relating
to this Agreement or any judgment entered by any court in respect thereof
brought in any state or federal court sitting in the city of Indianapolis,
Indiana and further irrevocably waives any claim that any action or proceeding
brought in any such court has been brought in an inconvenient forum.

22.   Mutual Waiver of Jury Trial.  BECAUSE DISPUTES ARISING IN CONNECTION WITH
COMPLEX TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN
EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL
LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT THEIR
DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS.  THEREFORE, TO ACHIEVE THE BEST COMBINATION OF
THE BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION, EACH PARTY TO THIS
AGREEMENT HEREBY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT, OR
PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE BETWEEN OR AMONG ANY OF THE PARTIES
HERETO, WHETHER ARISING IN CONTRACT, TORT, OR OTHERWISE, ARISING OUT OF,
CONNECTED WITH, RELATED OR INCIDENTAL TO THIS AGREEMENT, THE TRANSACTIONS
CONTEMPLATED HEREBY AND/OR THE RELATIONSHIP ESTABLISHED AMONG THE PARTIES
HEREUNDER.

23.   Delivery by Facsimile.  This Agreement, the agreements referred to
herein, and each other agreement or instrument entered into in connection herewith
or therewith or contemplated hereby or thereby, and any amendments hereto or
thereto, to the extent signed and delivered by means of a facsimile machine,
shall be treated in all manner and respects as an original agreement or
instrument and shall be considered to have the same binding legal effect as if
it were the original signed version thereof delivered in person.

 13
 

24.   Survivorship.  Any provision of this Agreement, that by its
terms, is intended to continue to apply after any termination or expiration of
the Consulting Term or the Agreement shall survive such termination or
expiration and continue to apply in accordance with its terms.

*   *  
*   *   *

 14
 

IN WITNESS
WHEREOF, Executive and Company have caused this Agreement to be duly executed
and delivered on the date and year first above written.

	
  

  	
  BIOMET, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey R. Binder

  
	
   

  	
  Its:

  	
  President and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Daniel P. Hahn

  
	
   

  	
  Daniel P. Hann

  

 

 15
 

EXHIBIT
A

·                  75,000
of the 200,000 options granted to Executive on March 4, 2006 shall vest and
become exercisable on the Effective Date. All other unvested options held by
Executive shall be immediately terminated and canceled.

 

 16

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