Document:

EXHIBIT
10.1

EMPLOYMENT
AGREEMENT

This
EMPLOYMENT AGREEMENT (“Agreement”), dated as of February 26, 2007 (the
“Effective Date”), is made by and between Biomet, Inc., an Indiana corporation
(the “Company”), and Jeffrey R. Binder (the “Executive”).

WHEREAS,
the Company desires to engage the Executive, and the Executive desires to be
engaged by the Company, as President and Chief Executive Officer of the
Company; and

WHEREAS,
the Company and the Executive desire to enter into this Agreement to set out
the terms and conditions for the employment relationship of the Executive with
the Company.

NOW,
THEREFORE, in consideration of the mutual covenants and agreements set forth
herein and for other good and valuable consideration, the receipt and
sufficiency of which hereby are acknowledged, the parties hereto agree as
follows:

1.             Employment Agreement.  On the terms and conditions set forth in this
Agreement, the Company agrees to employ the Executive and the Executive agrees
to be employed by the Company for the Employment Period set forth in
Section 2 and in the positions and with the duties set forth in
Section 3.  Terms used herein with
initial capitalization not otherwise defined are defined in Section 22.

2.             Term.  The initial term of employment under this
Agreement shall be for a three-year period commencing on the Effective Date
(the “Initial Term”).  The term of
employment shall be automatically extended for an additional consecutive
12-month period (the “Extended Term”) on January 1, 2010 and each subsequent January
1, unless and until the Company or Executive provides written notice to the
other party in accordance with Section 13 hereof not less than
90 days before such anniversary date that such party is electing not to
extend the term of employment under this Agreement (“Non-Renewal”), in which
case the term of this Agreement shall end as of the end of such Initial Term or
Extended Term, as the case may be, unless sooner terminated as hereinafter set
forth.  Such Initial Term and all such
Extended Terms are collectively referred to herein as the “Employment Period.”

3.             Position and Duties.  During the Employment Period, the Executive
shall serve as President and Chief Executive Officer of the Company.  In such capacities, the Executive shall
report to the Board (or, if the Company becomes a subsidiary of a different
entity, the board of directors of the Company’s ultimate parent company).  During the Employment Period, the Executive
shall have the powers and authority customarily exercised by individuals serving
as president and chief executive officer of a company of the size and nature of
the Company.  In addition, on the
Effective Date the Executive shall be appointed as a member of the Company’s
Board of Directors (the “Board”) and appointed to the Board’s Executive
Committee, if existing at the time. 
During the Employment Period, the Board shall nominate the Executive for
re-election to the Board at the annual meeting(s) that the Executive’s position
is up for re-election in the ordinary course. 
The Executive shall devote the Executive’s reasonable best efforts and

full business time
to the performance of the Executive’s duties hereunder and the advancement of
the business and affairs of the Company; provided that the Executive shall be
entitled to serve as a member of the board of directors of another company
approved by the Board, to serve on civic, charitable, educational, religious,
public interest or public service boards approved by the Board, and to manage
the Executive’s personal and family investments, in each case, to the extent
such activities do not, individually or in the aggregate, materially interfere
with the performance of the Executive’s duties and responsibilities hereunder.

4.             Place of Performance.  During the Employment Period, the Executive
shall be based primarily at the principal executive offices of the Company in
Warsaw, Indiana, except for reasonable travel on the Company’s business
consistent with the Executive’s position.

5.             Compensation
and Benefits; Options; Change in Control.

(a)           Base Compensation.  During the Employment Period, the Company
shall pay to the Executive a base salary (the “Base Salary”) at the rate of no
less than $650,000 per year.  The Base
Salary shall be reviewed for increase by the Company no less frequently than
annually and shall be increased in the discretion of the Company and any such
adjusted Base Salary shall constitute “Base Salary” for purposes of this
Agreement.  The Base Salary shall be paid
in substantially equal installments in accordance with the Company’s regular
payroll procedures.

(b)           Annual Bonus.  The Executive shall be given the opportunity
to earn an annual incentive bonus for each fiscal year that ends during the
Employment Period in accordance with the annual bonus plan generally applicable
to the Company’s executive officers who are subject to Internal Revenue Code
(the “Code”) Section 162(m), as the same may be in effect from time to time
(the “Annual Plan”).  The Executive’s
target annual incentive bonus opportunity under the Annual Plan shall be no
less than 100% of the Executive’s Base Salary for on-target performance with
the possibility of exceeding 100% for high achievement, and Executive’s Annual
Plan bonus shall be pro-rated for the number of months (including a full month
for any partial month) for the Company fiscal year in which Executive begins
his employment.  The actual amount
payable to the Executive as an annual bonus under the Annual Plan shall be
dependent upon the achievement of performance objectives established in accordance
with the Annual Plan by the Board or the Compensation and Stock Option
Committee of the Board (or its successor committee) (the “Compensation
Committee”).  Any bonus payable pursuant
to this Section 5(b) shall be paid at the same time annual bonuses are payable
to other officers of the Company in accordance with the terms of the Annual
Plan.

(c)           Equity Awards.  If, and only if, the Agreement and Plan of
Merger among the Company, LVB Acquisition, LLC and LVB Acquisition Merger Sub,
Inc., dated as of December 18, 2006 (the “Transaction Agreement”), is
terminated in accordance with its terms prior to the consummation of the
transactions contemplated thereby (the “Transactions”), the Executive shall be
entitled to the benefits described in this Section 5(c).  If the Transactions are consummated in
accordance with the Transaction Agreement (as amended from time to time), this
Section 5(c) shall have no force or effect. 
During a period that is at least one (1) week and no more than four (4)
weeks after the  termination of the
Transaction Agreement, and at the first meeting of the Board during each fiscal
year commencing on or after May 31, 2008 if the

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Executive is then
employed by the Company on the applicable date of grant, the Company shall
grant the Executive equity awards having a nominal value on the date of grant
of no less than $3,500,000 (each an “Annual Equity Award”), which shall vest in
five equal installments on each of the first five anniversaries of the date of
this Agreement for the first such Annual Equity Award and on the first five
anniversaries of the date of grant for subsequent Annual Equity Awards  if the Executive is then employed by the
Company.  The Compensation Committee
shall determine the form for the Annual Equity Award in its sole discretion,
but it is expected that 50% of the value will be awarded in the form of options
and 50% of the value will be awarded in the form of restricted stock or
restricted stock units, and all Annual Equity Awards shall have
post-termination exercise periods of no less than 90 days (unless the Executive
is terminated for Cause, in which case post-termination exercise periods shall
be no less than 30 days).  Up to
four-sevenths (4/7) of each Annual Equity Award may be granted in the form of
restricted stock or restricted stock units the vesting of which will be
contingent on the achievement of performance goals mutually agreed upon in good
faith by the Compensation Committee and the Executive.  For purposes of this Section 5(c), options or
other similar awards shall be valued at the aggregate amount to be recognized
by the Company as an expense under FAS 123R and restricted stock, restricted
stock units or other similar awards shall have a value equal to the aggregate
fair market value (as determined reasonably and in good faith by the Committee)
on the date of grant of the shares of the Company’s common stock subject to the
award.

(d)           Vacation; Benefits.  During the Employment Period, the Company
shall provide to the Executive employee benefits and perquisites on a basis
that is no less favorable to that provided to other senior officers of the
Company, including participation in the Company’s Deferred Compensation Plan,
as in effect from time to time.  Subject
to the terms of this Agreement, all benefits are provided at the Company’s sole
discretion.  Subject to the terms of this
Agreement, the Company shall have the right to change insurance carriers and to
adopt, amend, terminate or modify employee benefit plans and arrangements at
any time and without the consent of the Executive.

(e)           Transitional Matters.  In connection with the hiring of the
Executive by the Company, the Executive shall additionally be entitled to the
following:

(i)            The Company shall make a cash lump
sum payment to the Executive in an amount equal to the bonus the Executive is
required to repay his former employer in connection with his termination of
employment, such amount not to exceed $1,320,000 (the “Make-Whole Bonus”).  The Make-Whole Bonus shall be paid on or
before the date on which the Executive repays his former employer.  The Executive shall be required to repay the
Make-Whole Bonus to the Company if, prior to the second anniversary of the
Effective Date, the Executive terminates his employment with the Company other
than for Good Reason or the Company terminates the Executive’s employment for
Cause, provided that such repayment obligation shall lapse with respect to
twenty-five percent (25%) of the Make-Whole Bonus for each six (6) month period
of employment completed by Executive commencing on the Effective Date.

(ii)           Promptly after the Effective Date,
the Company will purchase the Executive’s current residence in Winnetka,
Illinois at its then appraised value, such amount not

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to exceed
$2,199,000 (the “Purchase Price”).  In the
event the Executive recognizes any income as the result of the subsequent sale
of his residence by the Company at a price less than the Purchase Price (such
amount “Imputed Income”), the Company shall make an additional payment to the
Executive in an amount such that after payment of all applicable taxes on such
payment, the Executive is left with an amount equal to the aggregate taxes
imposed on the Imputed Income.  In
addition, the Company shall pay directly, or reimburse the Executive for, the
reasonable costs of relocating the Executive’s household from Winnetka,
Illinois to Warsaw, Indiana.

(iii)          Unless otherwise required by the
reasonable needs of the Company, the Company acknowledges that the Executive
will spend weekends during the Employment Period at his home in Austin,
Texas.  The Company shall arrange, at its
expense, for the Executive to fly once per week to and from the Executive’s
Texas home and the Company’s headquarters or such other location reasonably
specified by the Company during the Employment Period.  The Company shall not gross up the Executive
for taxes incurred in connection with these benefits which shall be calculated
in accordance with applicable law; provided, however, if the Executive uses a
commercial flight and the income imputed in connection therewith is greater
than the amount that would have been imputed to the Executive if he had used a
Company-operated aircraft, the Company shall gross up the Executive for taxes
incurred on the incremental income associated with the commercial flight.  Notwithstanding anything to the contrary
contained herein, the Company’s incremental costs associated with extending
these benefits to the Executive shall not exceed $500,000 in any 12-month
period.  For purposes of applying this
limitation, the Company’s incremental cost for commercial flights shall be the
cost of the Executive’s ticket and for flights on Company-operated aircraft
shall be the incremental per-hour cost associated with the Executive’s
flight(s) and other incremental costs related to such flights, such as landing
fees, transportation and housing costs of aircrew and other similar costs.

(f)            Change in Control Agreement.  On the date hereof, the Company and the
Executive are entering into a Change in Control Agreement dated the date hereof
(the “CIC Agreement”).

6.             Expenses.  The Executive is expected and is authorized
to incur reasonable expenses in the performance of his duties hereunder.  The Company shall reimburse the Executive for
all such expenses reasonably and actually incurred in accordance with policies
which may be adopted from time to time by the Company promptly upon periodic
presentation by the Executive of an itemized account, including reasonable
substantiation, of such expenses.

7.             Confidentiality, Non-Disclosure
and Non-Competition Agreement.  The
Company and the Executive acknowledge and agree that during the Executive’s
employment with the Company, the Executive will have access to and may assist
in developing Company Confidential Information and will occupy a position of
trust and confidence with respect to the Company’s affairs and business and the
affairs and business of the Company Affiliates. 
The Executive agrees that the following obligations are necessary to
preserve the confidential and proprietary nature of Company Confidential
Information and to protect the Company and the Company Affiliates against
harmful solicitation of employees and customers, harmful

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competition and
other actions by the Executive that would result in serious adverse consequences
for the Company and the Company Affiliates:

(a)           Non-Disclosure.  During the Executive’s employment with the
Company and thereafter, the Executive will not knowingly use, disclose or
transfer any Company Confidential Information other than as authorized in
writing by the Company or within Executive’s good faith interpretation of the
scope of the Executive’s duties. 
Anything herein to the contrary notwithstanding, the provisions of this
Section 7(a) shall not apply (i) when disclosure is required by law or
by any court, arbitrator, mediator or administrative or legislative body
(including any committee thereof) with actual or apparent jurisdiction to order
the Executive to disclose or make accessible any information; or (ii) to
information that becomes generally known to the public or within the relevant
trade or industry other than due to the Executive’s violation of this
Section 7(a).

(b)           Materials.  The Executive will not remove any Company
Confidential Information or any other property of the Company or any Company
Affiliate from the Company’s premises or make copies of such materials except
for normal and customary use in the Company’s business.  The Company acknowledges that the Executive,
in the ordinary course of his duties, routinely uses and stores Company
Confidential Information at home and other locations.  The Executive will return to the Company all
Company Confidential Information and copies thereof and all other property of
the Company or any Company Affiliate at any time upon the request of the
Company and in any event promptly after termination of Executive’s
employment.  The Executive agrees to
attempt in good faith to identify and return to the Company any copies of any
Company Confidential Information after the Executive ceases to be employed by
the Company.  Anything to the contrary
notwithstanding, nothing in this Section 7 shall prevent the Executive
from retaining a home computer, papers and other materials of a personal nature
(including diaries and calendars), information relating to his compensation or
relating to reimbursement of expenses, information that he reasonably believes
may be needed for tax purposes, and copies of plans, programs and agreements
relating to his employment.

(c)           No Solicitation or Hiring of
Employees.  During the Non-Compete
Period, the Executive shall not solicit, entice, persuade or induce any
individual who is employed by the Company or the Company Affiliates (or who was
so employed within 180 days prior to the Executive’s action) to terminate
or refrain from continuing such employment or to become employed by or enter
into contractual relations with any other individual or entity other than the
Company or the Company Affiliates, and the Executive shall not, directly or
indirectly, hire, or participate in the hiring, as an employee, consultant or
otherwise, any such person.

(d)           Non-Competition.

(i)            During the Non-Compete Period, the
Executive shall not, directly or indirectly, (A) solicit or encourage any
client or customer of the Company or a Company Affiliate, or any person or
entity who was a client or customer within 180 days prior to Executive’s
action to terminate, reduce or alter in a manner adverse to the Company, any
existing business arrangements with the Company or a Company Affiliate or to
transfer existing business from the Company or a Company Affiliate to any other
person or entity, (B) provide

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services anywhere
in the United States to any entity that competes with the Company or a Company
Affiliate or that provides a product or service competitive with any product or
service provided by the Company or any Company Affiliate or (C) own an interest
in any entity described in subsection (B) immediately above; provided, however,
that Executive may own, as a passive investor, securities of any such entity
that has outstanding publicly traded securities so long as his direct holdings
in any such entity shall not in the aggregate constitute more than 2% of the
voting power of such entity.  The
Executive agrees that, before providing services, whether as an employee or
consultant, to any entity during the Non Compete Period, he will provide a copy
of this Agreement to such entity and acknowledge, to the Company in writing,
that he has done so. Notwithstanding the foregoing, nothing in this Section 7
shall prevent the Executive from providing services to a division or a
subsidiary of an entity that does not compete with the Company or any Corporate
Affiliate and that does not provide products or services competitive with
products or services provided by the Company or any Corporate Affiliate even if
other divisions or subsidiaries of that entity compete with the Company so long
as the Executive does not have any managerial or supervisory authority with
respect to such competitive division or subsidiary.  The Executive acknowledges that this covenant
has a unique, very substantial and immeasurable value to the Company, that the
Executive has sufficient assets and skills to provide a livelihood for the
Executive while such covenant remains in force and that, as a result of the
foregoing, in the event that the Executive breaches such covenant, monetary
damages would be an insufficient remedy for the Company and equitable
enforcement of the covenant would be proper. 
The Executive further covenants that he shall not challenge the
reasonableness of any of the covenants set forth in this Section 7, but
reserves the right to challenge the Company’s interpretation of such covenants.

(ii)           If the restrictions contained in
Section 7(d)(i) shall be determined by any court of competent jurisdiction
to be unenforceable by reason of their extending for too great a period of time
or over too great a geographical area or by reason of their being too extensive
in any other respect, Section 7(d)(i) shall be modified to be effective
for the maximum period of time for which it may be enforceable and over the
maximum geographical area as to which it may be enforceable and to the maximum
extent in all other respects as to which it may be enforceable.

(e)           Publicity.  During the Employment Period, the Executive
hereby grants to the Company the right to use, in a reasonable and appropriate
manner, the Executive’s name and likeness, without additional consideration,
on, in and in connection with technical, marketing or disclosure materials, or
any combination thereof, published by or for the Company or any Company
Affiliate.

(f)            Conflicting Obligations and
Rights.  The Executive represents and
warrants that he is not subject to agreement or contractual commitment that
prevents or in any way limits his ability to fully discharge his duties and
responsibilities hereunder and that he is not in possession of any confidential
or proprietary information of another person or entity that will be used in
connection with the discharge of his duties hereunder.  The Executive acknowledges and agrees the
accuracy of the foregoing representation and warranty is a condition precedent
to the enforceability of the Company’s obligations hereunder.

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(g)           Enforcement.  The Executive acknowledges that in the event
of any breach of this Section 7, the business interests of the Company and
the Company Affiliates will be irreparably injured, the full extent of the
damages to the Company and the Company Affiliates will be impossible to
ascertain, monetary damages will not be an adequate remedy for the Company and
the Company Affiliates, and the Company will be entitled to enforce this
Agreement by a temporary, preliminary and/or permanent injunction or other
equitable relief, without the necessity of posting bond or security, which the
Executive expressly waives.  The
Executive understands that the Company may waive some of the requirements
expressed in this Agreement, but that such a waiver to be effective must be
made in writing and should not in any way be deemed a waiver of the Company’s
right to enforce any other requirements or provisions of this Agreement.  The Executive agrees that each of the
Executive’s obligations specified in this Agreement is a separate and
independent covenant and that the unenforceability of any of them shall not
preclude the enforcement of any other covenants in this Agreement.

(h)           Coordination with the CIC
Agreement.  The applicability of the
provisions of this Section 7 are subject to the terms of the CIC Agreement.

8.             Termination of Employment.  The Executive’s employment hereunder may be
terminated during the Employment Period under the following circumstances:

(a)           Death.  The Executive’s employment hereunder shall
terminate upon the Executive’s death;

(b)           By the Company.  The Company may terminate the Executive’s
employment for:

(i)            Disability.  If the Executive shall have been
substantially unable to perform the Executive’s material duties hereunder by
reason of illness, physical or mental disability or other similar incapacity,
which inability shall continue for 90 consecutive days or
180 non-consecutive days in any 24-month period and which qualified
Executive for long term disability coverage under applicable Company disability
plans (a “Disability”); or

(ii)           Cause.  The Company may terminate the Executive’s
employment for Cause as defined herein;

(c)           By the Executive.  The Executive may terminate his employment
for any reason or for no reason upon not less than 90 days notice to the
Company.  During this 90-day period, the
Company may, without breaching this Agreement or constituting Good Reason or a
Termination without Cause, relieve the Executive of his positions, titles,
duties and responsibilities and direct the Executive to cease appearing on
Company property.  In addition, upon
delivery of such Notice of Termination by the Executive, the Executive shall be
deemed to have resigned as a member of the Board.

(d)           Notice of Termination.  Any termination of the Employment Period,
other than pursuant to the Executive’s death, shall be effected by delivery to
the other party of a notice of termination (a “Notice of Termination”) from the
party terminating the Employment Period.

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(e)           Other Resignations.  Upon any termination of the Executive’s
employment, he shall automatically resign, and shall automatically be deemed to
have resigned, from all positions with the Company and Company Affiliates,
including his position as a member of the Board.

9.             Compensation
Upon Termination.

(a)           Death.  If the Executive’s employment is terminated during
the Employment Period as a result of the Executive’s death, this Agreement and
the Employment Period shall terminate without further notice or any action
required by the Company or the Executive’s legal representatives.  Upon the Executive’s death, the Company shall
pay or provide the following:  (i) the
Company shall pay to the Executive’s legal representative or estate, as
applicable, the Executive’s Base Salary due through the Executive’s Date of
Termination; (ii)
the Company shall pay to the Executive’s legal representative or estate, as
applicable, a pro rated portion (based on the percentage of the Company’s
fiscal year preceding the Executive’s Date of Termination) of the average of
(x) the annual incentive bonus earned by the Executive for the prior year and
(y) the annual incentive bonus the Executive would have received for the
current year if his employment had not been terminated, based on the Company’s
performance to the date of termination extrapolated through the end of the
current year; and (iii) the Company shall pay, at the time when such
payments are due, to the Executive’s legal representative or estate, as
applicable, the Accrued Benefits and the rights of the Executive’s legal
representative or estate with respect to equity or equity-related awards shall
be governed by the applicable terms of the related plan or award
agreement.  Except as set forth herein,
the Company shall have no further obligation to the Executive under this
Agreement.

(b)           Disability.  If the Company terminates the Executive’s
employment during the Employment Period because of the Executive’s Disability
pursuant to Section 8(b)(i), (i) the Company shall pay to the
Executive the Executive’s Base Salary due through the Executive’s Date of
Termination, (ii)
the Company shall pay to the Executive a pro rated portion (based on the
percentage of the Company’s fiscal year preceding the Executive’s Date of
Termination) of the average of (x) the annual incentive bonus earned by the
Executive for the prior year and (y) the annual incentive bonus the Executive
would have received for the current year if his employment had not been
terminated, based on the Company’s performance to the date of termination
extrapolated through the end of the current year; and (iii) the
Company shall pay to the Executive, at the time when such payments are due, the
Accrued Benefits and the rights of the Executive with respect to equity or
equity-related awards shall be governed by the applicable terms of the related
plan or award agreement.  Except as set
forth herein, the Company shall have no further obligation to the Executive
under this Agreement.

(c)           Certain Terminations by the
Company or Voluntarily by the Executive. 
If, during the Employment Period, the Company terminates the Executive’s
employment for Cause or the Executive voluntarily terminates his employment
other than for Good Reason, the Company shall pay to the Executive the
Executive’s Base Salary due through the Date of Termination and all Accrued
Benefits, if any, to which the Executive is entitled as of the Date of
Termination, at the time such payments are due, and the Executive’s rights with
respect to equity

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or equity-related
awards shall be governed by the applicable terms of the related plan or award
agreement.

(d)           Termination by the Company Other
Than in Connection with a Change of Control, or by the Executive for Good
Reason other than in Connection with a Change of Control.  If the Company terminates the Executive’s
employment during the Employment Period other than for Cause or due to
Disability or if Executive terminates the Executive’s employment during the
Employment Period for Good Reason, in either event, at a time when the
Executive would not also be entitled to benefits under the CIC Agreement if his
employment were terminated by the Company without “cause” (as defined in the
CIC Agreement) or by the Executive for “good reason” (as defined in the CIC
Agreement), Executive shall be entitled to:

(i)            An amount equal to (a) 1.5 times the
Base Salary in effect at the date of termination (the “Base Component”) plus
(b) 1.5 times the average of (x) the annual incentive bonus earned by the
Executive for the prior year and (y) the annual incentive bonus the Executive
would have received for the current year if his employment had not been
terminated, based on the Company’s performance to the date of termination
extrapolated through the end of the current year (the “Bonus Component”, and
together with the “Base Component”, the “Severance Benefit”).  The total amount of the Severance Benefit
will be paid in equal, ratable installments in accordance with the Company’s
regular payroll policies over the course of the Non-Compete Period.  If the Executive becomes employed by another
employer during that period, the Bonus Component will cease and the Severance
Benefit will be limited to the Base Component; provided that 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 this Section 9(d);

(ii)           If the Executive is eligible for and
elects continuation coverage pursuant to COBRA (with respect to the Executive
and/or the Executive’s dependents who are eligible to elect COBRA under the
Company’s group health plan(s) as a direct result of the Executive’s
termination of employment), the Company shall pay (as of the first of each
applicable month) the premiums for such coverage (or reimburse the Executive
for such premiums) during the Non-Compete Period;

(iii)          Continued payment of the Executive’s Company-provided
car allowance, if any, for a period of twelve months from the termination date;

(iv)          All outstanding options granted to the
Executive by the Company (including the Annual Equity Awards) on any common
shares of stock of Biomet, Inc., that would have vested in the ordinary course
within 12 (twelve) months after the termination date if the Executive’s
employment had not been terminated will become immediately vested and
exercisable (to the extent not yet vested and exercisable) as of the termination
date and all vested options shall remain exercisable until the earlier of (x)
the expiration of their original term (such expiration not to be affected by
any post-termination exercise period) or (y) 18 (eighteen) months from the date
of termination. To the extent not otherwise provided under the written
agreement, if
any, evidencing

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the grant of any restricted common shares of
stock of the Company to the Executive, all such outstanding shares that have
been granted to the Executive subject to restrictions that would have lapsed in
the ordinary course within 12 (twelve) months after the termination date if the
Executive’s employment had not been terminated will vest automatically upon the
termination date, and the Executive will become the owner of such shares free
and clear of all such restrictions.  The
Company shall pay the Executive an additional $1,000,000 in a cash lump sum if,
and only if, a termination described in this Section 9(d) occurs prior to the
grant by the Company to the Executive of the first Annual Equity Award. Such
payment, if any, shall be made upon the termination of the Executive’s
employment; provided that the Executive shall not be entitled to such payment
if such termination occurs on or after consummation of the Transactions;

(v)           Notwithstanding the preceding
provisions or any provision in this Agreement to the contrary, all payments
pursuant hereto are intended to comply with Code Section 409A and the guidance
thereunder, and this Agreement shall be construed accordingly.  To the extent that compliance with Section
409A(a)(2)(B)(i) would require any payment otherwise provided for by this
Agreement to be delayed, such payment shall be made as soon as administratively
feasible after the period of delay required by Code Section 409A(a)(2)(B)(i).

For the sake of
clarity, the Executive shall not be eligible to receive benefits under this
Section 9(d) at a time when he would also be entitled to benefits under the CIC
Agreement if his employment were terminated by the Company without “cause” (as
defined in the CIC Agreement) or by the Executive for “good reason” (as defined
in the CIC Agreement).

(e)           Liquidated Damages.  The parties acknowledge and agree that
damages which will result to the Executive for termination by the Company of
the Executive’s employment shall be extremely difficult or impossible to
establish or prove, and agree that the amounts payable to the Executive under
Section 9(d) (the “Severance Payments”) shall constitute liquidated damages for
any such termination.

(f)            Full Discharge of Company
Obligations.  In the event of any
breach of this Agreement by the Company, the Executive shall be entitled to the
lesser of (i) the amount of damages incurred by the Executive as a direct
result of each breach and (ii) the Severance Payments the Executive would be
entitled to under Section 9(d) if his employment were terminated
thereunder.  The amounts payable to
Executive following termination of the Employment Period or upon or any actual
or constructive termination of the Executive’s employment  pursuant to this Section 9 shall be in full
and complete satisfaction of Executive’s rights under this Agreement and any
other claims he may have in respect of his employment by the Company or any
Company Affiliate, and Executive acknowledges that such amounts are fair and
reasonable, and his sole and exclusive remedy, in lieu of all other remedies at
law or in equity, with respect to the termination of his employment
hereunder.  Payment of any Severance
Payment pursuant to Section 9(d) shall be conditioned upon Executive’s
execution and non-revocation of a release, in a form substantively identical in
terms to the form attached as Exhibit A.

 10

(g)           Section 409A.  To the extent the Executive would be subject
to the additional 20% tax imposed on certain deferred compensation arrangements
pursuant to Section 409A of the Internal Revenue Code of 1986, as amended
(the “Code”), as a result of any provision of this Agreement, such provision
shall be deemed amended to the minimum extent necessary to avoid application of
such tax and the parties shall promptly execute any amendment reasonably
necessary to implement this Section 9(g).

10.           Notices.  All notices, demands, requests, or other
communications which may be or are required to be given or made by any party to
any other party pursuant to this Agreement shall be in writing and shall be
hand delivered, mailed by first-class registered or certified mail, return
receipt requested, postage prepaid, delivered by overnight air courier, or
transmitted by facsimile transmission addressed as follows:

(i)            If to the Company:

Biomet,
Inc.

56 E. Bell Drive

P.O. Box 587

Warsaw, Indiana  46581-0587

Attn:  Chief Legal Officer

Facsimile Number:  (574) 267-8137

(ii)           If to the Executive:

Jeffrey
R. Binder

Address last shown on the Company’s Records

Each
party may designate by notice in writing a new address to which any notice,
demand, request or communication may thereafter be so given, served or
sent.  Each notice, demand, request, or
communication that shall be given or made in the manner described above shall
be deemed sufficiently given or made for all purposes at such time as it is
delivered to the addressee (with the return receipt, the delivery receipt,
confirmation of facsimile transmission or the affidavit of messenger being
deemed conclusive but not exclusive evidence of such delivery) or at such time
as delivery is refused by the addressee upon presentation.

11.           Severability.  The invalidity or unenforceability of any one
or more provisions of this Agreement shall not affect the validity or
enforceability of the other provisions of this Agreement, which shall remain in
full force and effect.

12.           Effect on Other Agreements.  The provisions of this Agreement shall
supersede the terms of any plan, policy, agreement, award or other arrangement
of the Company (whether entered into before or after the Effective Date) to the
extent application of the terms of this Agreement is more favorable to the
Executive.

 11
 

13.           Survival.  It is the express intention and agreement of
the parties hereto that the provisions of Sections 5(e)(i),  7, 9, 10, 11,
12, 13, 14, 15, 18, 19, 21 and 22 hereof shall survive the termination of
employment of the Executive.

14.           Assignment.  The rights and obligations of the parties to
this Agreement shall not be assignable or delegable, except that (i) in
the event of the Executive’s death, the personal representative or legatees or
distributees of the Executive’s estate, as the case may be, shall have the
right to receive any amount owing and unpaid to the Executive hereunder and
(ii) the rights and obligations of the Company hereunder shall be
assignable and delegable in connection with any subsequent merger,
consolidation, sale of all or substantially all of the assets or equity
interests of the Company or similar transaction involving the Company or a
successor corporation.  The Company shall
require any successor to 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 such succession had taken place.

15.           Binding Effect.  Subject to any provisions hereof restricting
assignment, this Agreement shall be binding upon the parties hereto and shall
inure to the benefit of the parties and their respective heirs, devisees,
executors, administrators, legal representatives, successors and assigns.

16.           Amendment; Waiver.  This Agreement shall not be amended, altered
or modified except by an instrument in writing duly executed by the party
against whom enforcement is sought. 
Neither the waiver by either of the parties hereto of a breach of or a
default under any of the provisions of this Agreement, nor the failure of
either of the parties, on one or more occasions, to enforce any of the
provisions of this Agreement or to exercise any right or privilege hereunder,
shall thereafter be construed as a waiver of any subsequent breach or default
of a similar nature, or as a waiver of any such provisions, rights or
privileges hereunder.

17.           Headings.  Section and subsection headings contained in
this Agreement are inserted for convenience of reference only, shall not be
deemed to be a part of this Agreement for any purpose, and shall not in any way
define or affect the meaning, construction or scope of any of the provisions
hereof.

18.           Governing Law.  This Agreement, the rights and obligations of
the parties hereto, and any claims or disputes relating thereto, shall be
governed by and construed in accordance with the laws of the State of Indiana
(but not including any choice of law rule thereof that would cause the laws of
another jurisdiction to apply).  Except
as otherwise provided in Section 7(g), each of the parties agrees that any
dispute between the parties shall be resolved only in the courts of the State
of Indiana or the United States District Court for the Northern District of
Indiana and the appellate courts having jurisdiction of appeals in such courts.  In that context, and without limiting the
generality of the foregoing (but subject to Section 7(g)), each of the parties
hereto irrevocably and unconditionally (a) submits for himself or itself in any
proceeding relating to this Agreement or Executive’s employment by the Company
or any Related Entity, or for the recognition and enforcement of any judgment
in respect thereof (a “Proceeding”), to the exclusive jurisdiction of the
courts of the State of Indiana, the court of the United States of America for
the Northern District of Indiana, and appellate courts having jurisdiction of
appeals

 12
 

from any of the
foregoing, and agrees that all claims in respect of any such Proceeding shall
be heard and determined in such Indiana State court or, to the extent permitted
by law, in such federal court; (b) consents that any such Proceeding may and
shall be brought in such courts and waives any objection that he or it may now
or thereafter have to the venue or jurisdiction of any such Proceeding in any
such court or that such Proceeding was brought in an inconvenient court and
agrees not to plead or claim the same; (c) waives all right to trial by jury in
any Proceeding (whether based on contract, tort or otherwise) arising out of or
relating to this Agreement or Executive’s employment by the Company or any
Company Affiliate, or his or its performance under or the enforcement of this
Agreement; (d) agrees that service of process in any such Proceeding may be
effected by mailing a copy of such process by registered or certified mail (or
any substantially similar form of mail), postage prepaid, to such party at his
or its address as provided in Section 10; and (e) agrees that nothing in this
Agreement shall affect the right to effect service of process in any other
manner permitted by the laws of the State of Indiana.

19.           Entire Agreement.  This Agreement, the CIC Agreement and the
plans and agreements governing the Annual Equity Awards constitute the entire
agreement between the parties respecting the employment of the Executive and
supersede all other agreements and understandings.

20.           Counterparts.  This Agreement may be executed in two
counterparts, each of which shall be an original and all of which shall be
deemed to constitute one and the same instrument.

21.           Withholding.  The Company may withhold from any benefit
payment under this Agreement all federal, state, city or other taxes as shall
be required pursuant to any law or governmental regulation or ruling.

22.           Definitions.

“Accrued Benefits”
means (i) any compensation deferred by the Executive prior to the Date of
Termination and not paid by the Company; (ii) any amounts or benefits owing to
the Executive or to the Executive’s beneficiaries under the then applicable
benefit plans of the Company; (iii) any amounts owing to the Executive for
reimbursement of expenses properly incurred by the Executive prior to the Date
of Termination and which are reimbursable in accordance with Section 6;
and (iv) any other benefits or amounts due and owing to the Executive under
the terms of any plan, program or arrangement of the Company.

“Cause” means (i) the
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 by the Executive of a Notice of
Termination for Good Reason), after a written notice from the Company
identifying with reasonable specificity the manner in which the Executive has
not substantially performed his duties; (ii) the Executive’s conviction of, or
entering a plea of guilty or no contest to, a felony or other crime involving
dishonesty or the Executive being subject to a final regulatory sanction that
is not appealable within the relevant agency, in connection with his employment
by the Company or its affiliates; (iii) a material

 13
 

violation by Executive of any material written policy
of the Company that is generally applicable to all employees or all officers of
the Company; (iv) the Executive willfully engaging in conduct that is
demonstrably and materially injurious to the Company or its subsidiaries,
monetarily or otherwise, provided that no such conduct will be deemed “willful”
unless it is engaged in by the Executive not in good faith and without
reasonable belief that the Executive’s conduct was in the best interests of the
Company;  (v) Executive’s unreasonable
failure to cooperate, if reasonably requested by the Board in good faith, with
any material investigation or inquiry by the Board or any governmental or
regulatory entity  into his or the
Company’s business practices, including, but not limited to, Executive’s
unreasonable refusal to be deposed or to provide testimony at any trial or
inquiry; (vi) or any material breach by Executive of the provisions of this
Agreement that is not cured within fifteen (15) days of written notice from the
Company identifying such breach.

“Company
Affiliate” means any entity controlled by, in control of, or under common control
with, the Company.

“Company
Confidential Information” means information known to the Executive to
constitute trade secrets or proprietary information belonging to the Company or
other Company confidential financial information, operating budgets, strategic
plans or research methods, personnel data, projects or plans, or non-public
information regarding the Company or any Company Affiliate, in each case,
received by the Executive in the course of his employment by the Company or in
connection with his duties with the Company.

“Date
of Termination” means (i) if the Executive’s employment is terminated by
the Executive’s death, the date of the Executive’s death; (ii) if the
Executive’s employment is terminated because of the Executive’s Disability
pursuant to Section 8(b)(i), 30 days after Notice of Termination,
provided that the Executive shall not have returned to the performance of the
Executive’s duties on a full-time basis during such 30-day period;
(iii) if the Executive’s employment is terminated by the Company pursuant
to Section 8(b)(ii) or by the Executive pursuant to Section 8(c), the
date specified in the Notice of Termination, which in the case of a termination
by the Executive may not be less than 90 days following the date the notice is
provided.

“Extended
Term” shall have the meaning set forth in Section 2.

“Good
Reason” 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 Employment Term but prior to a Change in Control
(as defined in Executive’s CIC Agreement dated the date hereof) unless, in the
case of an 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 (as defined in Executive’s
Severance and Change in Control Agreement dated the date hereof):

(i)            the assignment of the Executive to a
position and duties inconsistent with the Executive’s status as CEO, as those
duties and that position existed at the time when this Agreement was executed
or a substantially adverse alteration in the nature or status of the Executive’s
responsibilities from those in effect immediately prior to such date; provided
that Good Reason shall
not exist under this prong (i) as a consequence, without

 14
 

more, of the Company ceasing
to be a public company or becoming a portfolio company, in either case, in
connection with the consummation of the transactions contemplated by the
Transaction Agreement; or

(ii)           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 the date that this Agreement was executed.

(iii)          The Executive’s right to terminate the
Executive’s employment for 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
Good Reason.  Notwithstanding the
foregoing, the occurrence of an event that would otherwise constitute Good
Reason will cease to be an event constituting Good Reason if the Executive does
not timely provide a Notice of Termination (as defined in Executive’s Severance
and Change in Control Agreement dated the date hereof) to the Company within
one-hundred twenty (120) days of the date on which the Executive first becomes
aware (or reasonably should have become aware) of the occurrence of that event.

“Non-Compete Period” means the period commencing on
the Effective Date and ending eighteen (18) months after the earlier of the
expiration of the Employment Period or the Executive’s Date of Termination.

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IN WITNESS WHEREOF, the undersigned have duly executed
and delivered this Agreement, or have caused this Agreement to be duly executed
and delivered on their behalf.

	
  

  	
  BIOMET, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Niles L. Noblitt

  
	
   

  	
  Name:

  	
  Niles L. Noblitt

  
	
   

  	
  Title:

  	
  Chairman of the Board

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Jeffrey R. Binder

  	
   

  
	
   

  	
  Jeffrey R. Binder

  	
   

  
				

 

 16EXHIBIT 10.2

CHANGE IN CONTROL AGREEMENT

THIS AGREEMENT, dated as of February 26, 2007, is
made by and between Biomet, Inc., an Indiana corporation (the “Company”),
and Jeffrey R. Binder (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.

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 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 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.

(a)           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.

(b)           Notwithstanding
anything to the contrary contained herein, this Agreement and the
Noncompetition Agreement (as defined in Section 5.01) shall automatically
terminate and be canceled and the Executive shall have no further rights or
obligations hereunder or thereunder immediately prior to the Closing, as
defined in the Agreement and Plan of Merger dated December 18, 2006 by and
among Biomet, Inc., LVB Acquisition Merger Sub, Inc. and LVB Acquisitions LLC,
as such may be amended from time to time (the “Transaction Agreement”).

Section 1.02           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 “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 Good Reason.

Section 2.04           Notice
of Termination. Any termination by the Company for Cause, or by the
Executive for 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 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.

 2
 

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 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

Any severance or termination benefits provided under this Article III
are intended to be without duplication of any other severance or termination
benefits the Executive has received under the Employment Agreement.  Accordingly, any benefits or payments
provided under Article III shall be reduced by any severance or termination
benefits the Executive has received or is entitled to receive under the
Employment Agreement.

Section 3.01           Good
Reason; Other Than for Cause or Disability. If, during the Employment
Period, the Executive shall terminate employment for 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 

 3
 

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.

(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.  The Company shall pay the Executive an
additional $1,000,000 in a cash lump sum if, and only if, a termination
described in this Section 3.01 occurs prior to the earlier of (i) the grant by
the Company to the Executive of the first Annual Equity Award (as such term is
defined in the Employment Agreement) or (ii) the payment by the Company to the
Executive of the $1,000,000 cash lump sum pursuant to Section 9(d)(iv) of the
Employment Agreement.  Such payment, if
any, shall be made upon the tenth (10) Business Day following the Date of
Termination.

 4
 

(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.

(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 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 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. 

 5
 

(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 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 

 6
 

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 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.

 7
 

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 (the “Noncompetition Agreement”).   The provisions of the Noncompetition
Agreement shall become effective upon the receipt by the Executive of benefits
pursuant to Section 3.01 or 3.04 of this Agreement, and upon such effectiveness,
Section 7 of the Employment Agreement shall automatically terminate and be
cancelled and the Executive shall have no further obligations thereunder.

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.

 

 8

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 VII, except that notice
of change of address will be effective only upon actual receipt:

	
  To the Company:

  Biomet, Inc.

  56 E. Bell Drive

  P. O. Box 587

  Warsaw, Indiana 46581-0587

  Attn: Chief Legal Officer

  Facsimile Number: (574) 267-8137

  	
   

  	
  To the Executive:

  Jeffrey R. Binder
 Address last shown on the
  Company’s Records

  	
   

  

 

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.

 9
 

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 3.07.

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.

 10
 

“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 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 February 26, 2007, 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 February 26, 2007 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 

 11
 

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;

provided,
however, in the case of each of (a), (b), (c) and (d) above, the
Transaction Agreement and the consummation of the transactions contemplated
thereby shall not be deemed to be, cause or result in a Change in Control as defined
herein.

“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.

“Employment Agreement” means that Employment
Agreement of even date herewith by and between the Company and the Executive.

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

“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 3.06(a).

“Executive” means Jeffrey R. Binder.

“Good Reason” for termination by the Executive
of the Executive’s employment means the death of the Executive during the   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
Employment Period, unless, in the case of any act or failure to act described
in 

 12
 

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 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

 13
 

(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 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 Good Reason. 
Notwithstanding the foregoing, the occurrence of an event that would
otherwise constitute Good Reason will cease to be an event constituting Good
Reason if the Executive does not timely provide a Notice of Termination to the
Company within 120 days of the date on which the Executive first becomes aware
(or reasonably should have become aware) of the occurrence of that event.

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

“Noncompetition Agreement” shall have the
meaning described in Section 5.01.

“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 3.02, 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 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.

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

“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(a).

“Transaction Agreement” shall have the meaning
described in Section 1.01(b).

*    *    *

 14
 

 

	
  EXECUTIVE

  	
  BIOMET, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Jeffrey R. Binder

  	
   

  	
  By:

  	
  /s/ Niles L. Noblitt

  	
   

  
	
  Jeffrey R. Binder

  	
  Name:

  	
  Niles L. Noblitt 

  
	
   

  	
  Its:

  	
  Chairman of the Board

  
					

 

 15

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