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ZIMMER BIOMET OREGON EMPLOYEE HANDBOOK

6070 SW Arctic Drive Beaverton, OR 97005

Effective: August 3, 2015

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Table of Contents

INTRODUCTION ..............................................................................................................................1 EMPLOYMENT POLICIES ..............................................................................................................2

EQUAL EMPLOYMENT OPPORTUNITY POLICY ................................................................2 EMPLOYEE RESPECT ..........................................................................................................2 CUSTOMER RELATIONS ......................................................................................................2 NON-DISCRIMINATION/NON-HARASSMENT .....................................................................3 Discrimination Defined .............................................................................................................3 Harassment Defined ................................................................................................................3 What to do if you have a complaint: ........................................................................................3 What is Sexual Harassment? ..................................................................................................4 CLASSIFICATION OF EMPLOYEES .....................................................................................5 GROUP BENEFITS ................................................................................................................5 JOB DESCRIPTION ...............................................................................................................5 WORK HOURS, MEAL AND BREAK PERIODS ....................................................................6 TIME RECORDS ....................................................................................................................6 CHANGE OF EMPLOYEE INFORMATION ...........................................................................6 PERFORMANCE EVALUATIONS .........................................................................................6 EMPLOYEE RELATIONS .......................................................................................................7 Resolving Problems.................................................................................................................7 Review Steps...........................................................................................................................7 SEPARATION PROCEDURES ..............................................................................................8 CREDIT OR CRIMINAL HISTORY INFORMATION...............................................................8 REFERENCES .......................................................................................................................8 SEVERANCE PAY .................................................................................................................8

PAY PRACTICES AND ATTENDANCE .........................................................................................9 PAYDAYS ...............................................................................................................................9 OVERTIME PAY .....................................................................................................................9 PAYROLL DEDUCTIONS ....................................................................................................10 PERSONNEL FILES .............................................................................................................10 REIMBURSEMENT OF EXPENSES ....................................................................................10 PAYROLL ADVANCES AND LOANS ..................................................................................10 ATTENDANCE .....................................................................................................................10

LEAVES .........................................................................................................................................12 PAID HOLIDAYS/HOLIDAYS ...............................................................................................12 VACATION ...........................................................................................................................12 SICK LEAVE .........................................................................................................................13 INCLEMENT WEATHER AND ‘ACTS OF GOD’ ..................................................................14 FAMILY OR MEDICAL LEAVE OF ABSENCE ....................................................................14 RULES APPLICABLE TO SPECIFIC TYPES OF LEAVE ....................................................19 OREGON MILITARY FAMILY LEAVE ACT (“OMFLA”) .......................................................19 PERSONAL LEAVES OF ABSENCE ...................................................................................19 JURY DUTY ..........................................................................................................................19 BEREAVEMENT ...................................................................................................................20 MILITARY LEAVE OF ABSENCE ........................................................................................20 RETURNING FROM A LEAVE OF ABSENCE ....................................................................20 CRIME VICTIMS’ LEAVE .....................................................................................................20 DOMESTIC VIOLENCE LEAVE ...........................................................................................21 REST PERIODS FOR EMPLOYEES WHO EXPRESS BREAST MILK ..............................21

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LEAVE FOR RELIGIOUS PRACTICE OR OBSERVANCE .................................................22 PERSONAL CONDUCT ................................................................................................................23

DISCIPLINE ..........................................................................................................................23 GENERAL STANDARDS OF CONDUCT ............................................................................23 ELECTRONIC SYSTEMS USE ............................................................................................24 STORAGE/PRIVATE PROPERTY .......................................................................................25 WORKPLACE VIOLENCE....................................................................................................25 DRUG AND ALCOHOL ABUSE POLICY .............................................................................26 Drug and Alcohol Testing ......................................................................................................27 SAFETY ................................................................................................................................29 Safety Regulations ................................................................................................................29 CELLULAR TELEPHONES/PDA’s .......................................................................................29 FIRE, BOMB, THREAT, OR DISASTER ..............................................................................30 SMOKING .............................................................................................................................30 BULLETIN BOARDS ............................................................................................................30 CONFIDENTIALITY AND NON-DISCLOSURE ...................................................................30 OUTSIDE EMPLOYMENT....................................................................................................32 GARNISHMENTS .................................................................................................................32 COMPANY SPONSORED SOCIAL EVENTS ......................................................................32 PERSONAL MAIL AND TELEPHONE USE .........................................................................33 PERSONAL PACKAGES AND ARTICLES ..........................................................................33 APPEARANCE .....................................................................................................................33 SOLICITING AND SALES ....................................................................................................34

MISCELLANEOUS ........................................................................................................................35 RECEIPT OF COURT DOCUMENTS ..................................................................................35 CARE OF EQUIPMENT .......................................................................................................35 LOST ARTICLES ..................................................................................................................35

RECEIPT OF EMPLOYEE POLICIES HANDBOOK .....................................................................36

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INTRODUCTION

This handbook is provided to help employees become familiar with our policies, programs, and services, so they can make the most of their employment with Zimmer Biomet Oregon. We are an employment at will company. That means that both the employer and employee can terminate the employment relationship at any time for any reason or no reason. Nothing in this manual is meant to constitute or imply a contract of employment. Zimmer Biomet Oregon reserves the right to use its discretion in making all employment decisions. No statements made by any supervisor or manager can alter the at-will status of employment. This status may only be changed through a written agreement that specifically states the terms and that it supersedes this document, and is signed by both the employee and the President of the Company. The policies and benefits included in this handbook are guidelines only and are subject to change, as the Company deems appropriate and necessary. From time to time, you may receive notice of new or modified policies, procedures, benefits or programs. Our business was founded on the principle that our customers are first, and it has grown and thrived on that same principle. We have built our reputation on high quality, state-of-the-art products, and ever-improving processes. Our continuous improvement as a sales and service organization requires the commitment and participation of all Zimmer Biomet Oregon employees. Our improvement efforts are directed at realizing the Zimmer Biomet Vision: We supply the majority of the world’s Orthopedic products and are recognized as the high-value, cost-effective partner of Orthopedic care providers. To grow and prosper, Zimmer Biomet Oregon, like any other organization, needs policies that address our work environment and help us operate efficiently as a company.

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EMPLOYMENT POLICIES

EQUAL EMPLOYMENT OPPORTUNITY POLICY The Company endeavors to provide an environment wherein all employees and applicants for employment receive equal opportunity. No person is granted special privilege or consideration nor is employment or any benefit arising out of employment given or withheld because of race, religion, color, national origin, age, marital status, sex, disability, sexual orientation, or status as a veteran or any other classification protected by law. We believe that full use of our employees’ talents can only be achieved by adopting practices that will assure equal employment opportunities to all. Such a practice not only results in effective business operations, but also creates a community where all persons have the opportunity for fulfillment and enrichment. It is Zimmer Biomet Oregon’s policy to reasonably accommodate disabled individuals to use their skills productively in our work force in a way that does not cause undue hardship on Zimmer. EMPLOYEE RESPECT We rely on the abilities and skills of all our staff to assist with the delivery of quality services. All employees bring specific talents and skills to their work that are beneficial to the Company’s operation. Those talents and skills are best fostered and encouraged in an atmosphere that is respectful, courteous and professional. Behavior that is embarrassing, bullying, harassing, unprofessional or disrespectful, directed toward a co-worker, client or supplier is unacceptable. Any employee who believes he/she has been subjected to or observed such conduct is encouraged to report it to any member of management. The matter will be carefully considered and appropriate action will be taken. CUSTOMER RELATIONS The success of Zimmer Biomet Oregon. depends upon the quality of the relationship between the Company, our employees, our customers, our suppliers and the general public. Our customers’ impression of the Company and their interest and willingness to purchase from us is shaped by the people who serve them. In a very real sense, regardless of your position, you are Zimmer Biomet Oregon’s ambassador. The more goodwill you promote, the more our customers will respect and appreciate you, the Company and the Company’s products and services

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NON-DISCRIMINATION/NON-HARASSMENT We are committed to providing all employees with a work environment free of discrimination or harassment of any kind, including harassment from or to customers or suppliers. The purpose of this policy statement is to reaffirm our commitment to equal employment opportunity and to providing a harassment-free work environment for all employees. Harassment or discriminatory conduct of any kind, whether physical or verbal, committed by supervisors or non-supervisory personnel, is prohibited. Prevention of discriminatory activities must be practiced at all times, especially by supervisors. In those cases where discrimination or harassment can be established, disciplinary action up to and including dismissal may be taken. Taking reprisal action against any employee because he or she has filed a discrimination or harassment complaint, furnished information or participated in any manner in an investigation, compliance review or hearing is prohibited. In those cases where reprisal action can be established, disciplinary action up to and including dismissal may be taken. Discrimination Defined Disparate and unfair treatment of any employee or individual because of his or her race, color, sex, religion, national origin, age, disability, sexual orientation or protected group status as defined by local, federal, state laws is prohibited. This includes harassment and intimidation. Discrimination also includes treating an employee with caregiving responsibilities differently based on their race, sex, disability, or other protected group status. Examples include, but are not limited to, treating male employees who are caregivers differently than female employees who are caregivers, limiting a pregnant employee’s job duties based on pregnancy-related stereotypes; or denying a male employee leave to care for his child when a female employee would be granted such leave. Harassment Defined Disparate and unfair treatment of any employee or individual because of his or her race, color, sex, religion, national origin, age, disability, marital status, sexual orientation, veteran’s status or other protected group status as defined by federal, state, and local laws is prohibited. This includes harassment and intimidation. Harassment is behavior perceived by the receiver as unwelcome and includes, but is not limited to, the use of verbal or practical jokes, unwelcome touching, offensive remarks or put-downs, displays of objects and materials which create an offensive environment. Actions such as these are prohibited and if repeated they are also unlawful. What to do if you have a complaint: This procedure is meant to provide the most comfortable means of reporting unlawful discrimination or harassment.

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If you feel you are the victim of discrimination or harassment in any form, you are encouraged to first discuss the matter with your supervisor or with other management employees with whom you feel comfortable discussing the matter. Perhaps the problem is due to a simple misunderstanding and can be resolved within the department. However, you may file an internal complaint with any member of management. The following steps have been established for filing and handling complaints of any employee based on alleged acts of discrimination: 1. Any employee may file a complaint by communicating directing with their supervisor

or any member of management. The multiple options noted here for presenting a complaint are made available with the intent of giving the employee the opportunity to select a person with whom they feel comfortable. Any employee may file a complaint orally by meeting with management or by submitting a complaint in writing.

2. The Company will proceed with an investigation of the complaint. Confidentiality will be maintained as far as is practicable. If it is necessary to make the employee filing the complaint known to others, the employee shall be advised in advance and shall be told why it is necessary that they be identified.

3. On the basis of the facts developed, management will render a decision in writing as soon as possible after completion of the investigation. If corrective or remedial action is warranted appropriate disciplinary action will be taken.

4. Employees who file complaints or who testify, assist or participate in any manner in an internal or external investigation or hearing will be safeguarded against intimidation, coercion, retaliation or discrimination of any kind. All such acts against complainants or other participants should be reported immediately to management.

5. All employees are required to fully cooperate in carrying out this policy and to avoid acts of discrimination or harassment or intimidation on the basis of race, color, gender, religion, national origin, disability, age, marital status, sexual orientation, Veteran’s status or other protected class.

What is Sexual Harassment? Illegal sexual harassment is considered sex discrimination not only because of the sexual nature of the conduct to which the victim is subjected but also because the harasser treats a member or members of one sex differently from members of the opposite sex. Unwelcome sexual advances, requests for sexual favors or other verbal or physical conduct of a sexual nature constitute illegal sexual harassment when:

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1. Submission to such conduct is made either explicitly or implicitly a term or condition of an individual's employment; or

2. Submission to or rejection of such conduct by an individual is used as a basis for employment decisions affecting such individuals; or

3. Such conduct has the purpose or effect of unreasonably interfering with an individual's work performance or creating an offensive work environment.

However, the Company has a “Zero Tolerance” policy against any single act. This is by no means an exhaustive list of conduct which is considered inappropriate and which will not be tolerated in the workplace. If you are aware of such illegal conduct, it is your responsibility to take affirmative actions to stop it immediately either by telling the employee to stop the offensive conduct or reporting it immediately to management. CLASSIFICATION OF EMPLOYEES Salaried Employees (Exempt): Are those employees regularly scheduled to work at least forty (40) hours per week whose compensation is based on a salary and who, because of their executive, administrative, professional, or outside sales duties, are exempt from overtime pay. Full-time Hourly Employees (Non-Exempt): Are those employees regularly scheduled to work forty (40) hours per week. Employment on a full-time hourly basis does not guarantee forty (40) hours of work per week. Hours scheduled and payment made can vary according to workload, absences, needs of the department, etc. For benefit eligibility, some definitions of full-time may be different. Part-time Employees (Non-Exempt): Are those employees regularly scheduled to work less than forty (40) hours per week. Temporary Employees: Are employees hired to work on an intermittent or as-needed basis. Compensation rates for these employees are all inclusive, and no additional benefits are provided except as required by law. GROUP BENEFITS Zimmer Biomet Oregon offers group insurance benefits to our employees. Please consult the appropriate Benefit Summary Plan Description for eligibility requirements. Employees are eligible the first of the month after 30 days of employment. Part-time employees may be eligible for benefits depending on the number of hours worked. Please see the Plan Description or the Controller’s Office for details. JOB DESCRIPTION A job description setting forth some of the requirements of your specific job may be given to you. Its primary purpose is to clarify what you are expected to accomplish in the interest of

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the day-to-day departmental operations. Changes in your job description may be made solely at the discretion of the Company. The job description is not a substitute for daily assignments and may not reflect the full scope of your responsibilities. The job description will be reviewed periodically, by the Company, and may change to reflect changes in your job. If you believe your job duties have significantly changed you should ask your supervisor for a job description review. WORK HOURS, MEAL AND BREAK PERIODS The Company’s regular office hours are Monday through Friday, 7:00 AM to 5:00 PM. Your particular hours of work and scheduling of your lunch period will be determined and assigned by your supervisor. Each office may have established schedules for meal and break periods, which will change from time to time depending on the needs of the office. Non-exempt employees are authorized a one-half hour unpaid lunch meal period and a paid morning and afternoon rest period of 15 minutes each. The timing of these breaks should be coordinated with your supervisor and other department members so the work area is continuously staffed. Meal periods and breaks must be taken. Repeated failure to do so will be grounds for disciplinary action, up to and including termination. Breaks must be taken separately and distinct from each other and the meal period. They may not be “stacked” or taken at the beginning or end of the day to allow for a longer lunch, late arrival or early departure. TIME RECORDS Daily time cards or sign-in sheets are legal records required for non-exempt personnel. They are your records of the hours you are at work and your paycheck is based on the time you record. You may not record time for other employees, or ask them to do so for you. Various other records may be required from all employees. Examples include vacation time used, sick time used, etc. CHANGE OF EMPLOYEE INFORMATION It is important that you keep the Controller informed of any changes in important information. Your present address and telephone number are essential for many purposes including mailings from the Company to your home, and it is your responsibility to inform the Company immediately of any changes. If your marital status or dependents change, you may have to change the number of exemptions claimed for income tax withholding purposes and add or delete members of your family from the Company’s health insurance plan. PERFORMANCE EVALUATIONS Performance evaluations are an important part of your growth with Zimmer Biomet Oregon. They provide an opportunity for both the Company and you to review your job performance,

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your goals and your overall effectiveness. Evaluations also may communicate expected levels of performance, and areas where improvement is needed. They may also address career development potential. Your performance will be discussed with you. You will be asked to sign the evaluation indicating that you have read it before it becomes a part of the employment record. You will be allowed to also place a document indicating your comments on the evaluation in the file, if you wish. An evaluation will generally be completed after ninety (90) days of employment and annually thereafter. EMPLOYEE RELATIONS Resolving Problems No company is free from day-to-day problems, but we believe that we have personnel policies and practices to help resolve problems. If you feel that you have not been treated fairly in accordance with the Company’s policies, a means of redress is available to you in the form of the Company’s problem solving procedure. We encourage you to bring your problems to your supervisor. We believe that you, as employees, have the right to speak for yourself. Review Steps Here are the steps you should take and the order in which you should present them. If you do not obtain a satisfactory resolution at the first step, you may, if you wish, request further review at higher steps.

A. Present the problem to your supervisor: Provide him/her with a written explanation of your concern. If your concern is about your supervisor, or you were not able to resolve the problem after explaining it to your supervisor, you should submit a written memorandum to the Director of Operations or VP of Sales, whichever is appropriate, explaining the problem, for his/her action.

B. Appeal to Director of Operations or VP of Sales: The Company Director of Operations or VP of Sales will review the memorandum, and may schedule a meeting with you to discuss your issue(s). The Director of Operations or VP of Sales will notify you in writing of his/her decision and action.

C. Appeal to the President: If the problem remains unresolved after you bring it to the Director of Operations or VP of Sales, you may submit a written appeal that details the problem to the President of Zimmer Biomet Oregon.

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SEPARATION PROCEDURES Should you desire to resign your position, the Company requests that you provide notice in writing at least two (2) weeks prior to the date you are leaving. Since employment is ‘at-will’, you are under no obligation to provide such notice and your employer is under no obligation to continue employment. Supervisory/management staff, are requested to submit thirty (30) days written notice prior to leaving. Your last day of work will be considered your termination date, and provided you have given adequate notice, as defined by law, you will receive your final paycheck, including any accumulated benefits at that time. Prior employees will only be considered for rehire if they give adequate notice of termination in accordance with this policy and leave their positions in good standing. An exit interview may be conducted to solicit your input on the employer/employee relationship. We welcome your comments and suggestions. CREDIT OR CRIMINAL HISTORY INFORMATION The Company will not use for employment purposes information contained in the credit history or criminal history of a job applicant or an employee unless it is substantially related to the individual’s current or potential job and after taking into account the specifics surrounding the history. REFERENCES In the event we receive a request for references for you, we may provide full information on your employment relationship at Zimmer including whether you were terminated or resigned, and performance while here. SEVERANCE PAY The Company generally does not provide severance pay to employees who terminate employment voluntarily or involuntarily.

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PAY PRACTICES AND ATTENDANCE PAYDAYS Employees are paid twice a month. You will be informed about pay dates and how checks are distributed. If a scheduled payday falls on a day when the Company is not open for business, you will be paid the preceding day. All required deductions, such as federal and state taxes and any voluntary deductions, will be indicated on a detachable portion of your paycheck. Please review your paycheck carefully. If you find an error, report it immediately to your supervisor so that it can be corrected. If your paycheck is lost or stolen report it immediately to your supervisor. No one will be allowed to pick up your paycheck without your verbal and written consent – no exceptions! OVERTIME PAY The Company discourages overtime work out of consideration for your needs of relief and rest, but due to the nature of our work, occasionally it may be necessary to work overtime. When overtime is worked, the Company pays overtime to hourly employees as required by law. Overtime must be requested and authorized by your supervisor in advance of such time worked. Your supervisor must initial such authorization on your time record. If you disregard this requirement, you may be subject to disciplinary action. Minimal minutes worked before or at the end of shift may not be accumulated as overtime (i.e., seven minutes or less). Overtime will be authorized on a daily basis. Repeated working of unauthorized overtime may be grounds for discipline, up to and including termination. Incidental Overtime Incidental overtime is not scheduled; it becomes necessary in response to extenuating circumstances. It is extra time needed to complete work normally completed during regular hours. Incidental overtime may become necessary when an illness or emergency keeps co-workers from being at work as anticipated. It may require you to return to the workplace for emergency work. The opportunity to perform incidental overtime will be given first to the employee who normally performs the task. If that employee cannot perform the overtime, the supervisor will offer the overtime to a suitably qualified person who is available to perform the overtime work. Employees must work overtime if required.

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Overtime Calculation Non-exempt employees who perform overtime work will be paid one and one-half (1-1/2) times the regular hourly wage for any time over forty (40) hours per week worked. Only actual hours worked will be used for the purpose of overtime calculation. Vacation, holiday, jury duty and other leave are examples of leave that will not be included for the purposes of overtime calculation. PAYROLL DEDUCTIONS Only those deductions required by law or authorized in writing by you will be withheld from your paycheck. The deductions required by law may include: Social Security (FICA), federal and state income tax. PERSONNEL FILES A personnel file is maintained for each employee. Files are confidential and cannot be released to anyone other than the employee or supervisors with a need to know without the express written and signed consent of the employee referred to in the file or a legal requirement to do so. Documents relating to your compensation, job performance, promotions, benefits, etc. are placed in your file. You may review your personnel file at a mutually convenient time during your employment or thereafter so long as we keep your file. You will not be allowed to see references from former employers or other documents protected by state law. Please keep your file up-to-date. Let us know when your address, phone number, dependents, marital status, beneficiary designations, etc. change. In addition, be sure that we also have the most up-to-date information on who to contact in the event of a workplace emergency. REIMBURSEMENT OF EXPENSES From time to time you may be asked to spend personal funds for business supplies or travel as part of your regular duties. All purchases must have prior approval and a receipt must accompany the request for reimbursement. PAYROLL ADVANCES AND LOANS We do not allow payroll advances nor do we give employees loans. Please do not ask. ATTENDANCE Because of the critical nature of your work, your regular attendance is very important. If you are unable to report for work as assigned, you must notify your supervisor every day you cannot report. This notice must be given as far in advance as possible of the time you are expected at work, but no less than one (1) hour before the beginning of the shift if the

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absence is to be excused. You must notify your supervisor each day that you are absent from work. If you have previously informed your supervisor that you will be out for a specified time, you are expected to return at the end of that period, unless subsequent arrangements are made to extend the sick time. Dismissal may result if your immediate supervisor is not notified within twenty-four (24) hours of an absence. Medical, Personal & Dental Appointments. If possible, medical, personal and dental appointments should be scheduled at the beginning or end of the workday. You are authorized a maximum of four hours excused absence per appointment Paid time off must be used for such absences. Please schedule your absence with your supervisor whenever an appointment is scheduled. Frequent absence, late arrival, or leaving work early may lead to disciplinary action, up to and including termination. It is essential that employees report to work in a ready-to-work status, and remain on duty throughout the day except for scheduled breaks, or absences in accordance with Company policy. Employees will only be paid for actual hours worked. A physician’s release to return to work following an absence due to a health condition may be required. Subject to applicable law, a physician’s release may be required at any time at the discretion of your supervisor. Your attendance record will be considered when evaluating requests for promotion, transfer, leave of absence, and approved time off, as well as scheduling reductions in force, etc.

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LEAVES PAID HOLIDAYS/HOLIDAYS Immediately upon employment, all full-time employees are entitled to paid holidays as observed by the Company. Part-time employees will earn pro rata levels of the full-time rate for these holidays. Temporary employees do not receive holiday pay. A holiday is defined as an eight-hour period for full-time employees. The Company currently observes the following holidays: New Year’s Day January 1st Memorial Day Last Monday in May Independence Day July 4th Labor Day First Monday in September Thanksgiving Day Fourth Thursday in November Christmas Day December 25th Other Pertinent Facts About Holidays Are:

A. Holidays occurring on Saturday will be observed on the preceding Friday, while those occurring on Sunday will be observed on the following Monday.

B. If a holiday occurs while you are on personal leave, the personal leave may

be extended one (1) day, if scheduled prior to the start of the leave; otherwise, you will be paid for four (4) personal leave days and one (1) holiday for the week.

VACATION All regular full-time and regular part-time employees will earn vacation in accordance with their length of service. Regular part-time employees generally scheduled to work 24 hours or more per week earn vacation on a pro-rata basis based on their regularly scheduled hours worked. Vacation is forfeited if not used within a year from accrual. Vacation pay will be calculated based on the employee’s hourly rate (as of the date of vacation) times the number of hours the employee would otherwise have worked on that day. For salaried individuals, vacation pay will be based on base salary amount not including commissions, bonuses or other earnings. The Company provides the following vacation benefits which accrue upon the employee’s anniversary date:

After 1 year = 10 days per years 1 - 4 After 5 years = 15 days per years 5 - 9 After 10 years = 20 days per year after 10 +

Accrued but unused vacation that has not been forfeited will be paid at time of termination for all except employees solely paid on commission basis. For commission employees, accrued unused vacation will not be paid off upon termination or resignation.

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Part time/hourly employees who work less than 24 hours per week and temporary employees are not eligible for paid vacations. Employees desiring to take time off must submit in advance a “Request for Time off Form.” SICK LEAVE All regular full-time and regular part-time employees will earn sick time. Sick pay will be calculated based on the employee’s hourly rate (as of the date of the use of the sick time) times the number of hours the employee would otherwise have been regularly scheduled to work on that day. Unused sick pay is not paid off at any time including at termination of or resignation from employment. Employees will accrue sick time of 5 days per year upon hire which can be used after 90 days of employment and thereafter on each anniversary date. Up to 5 days of unused sick time may be carried over each year up to a maximum accumulation of 15 days. Employees may use sick time:

To care for an infant or newly adopted child under 18 years of age, or for a newly placed foster child under 18 years of age, or for an adopted or foster child older than 18 years of age if the child is incapable of self-care because of a mental or physical disability.

To care for a family member with a serious health condition.

To recover from or seek treatment for a serious health condition of the employee that renders the employee unable to perform at least one of the essential functions of the employees regular position.

To care for a child of the employee who is suffering from an illness, injury or condition that is not a serious health condition but that requires home care.

To deal with the death of a family member by: attending the funeral or alternative to a funeral of the family member; making arrangements necessitated by the death of the family member; or grieving the death of the family member.

Sick time must be used for covered absences before the use of vacation or taking any unpaid time. No “borrowing” against un-accrued sick time will be allowed. If an employee does not have sufficient sick time in accrued, they may use vacation or will not be paid for the time off.

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INCLEMENT WEATHER AND ‘ACTS OF GOD’ In the event that inclement weather, power/utility failure, fire, flood or some other ‘Act of God’ keeps us from operating, non-exempt employees will not be paid, but may use vacation pay provided Zimmer Biomet Oregon. officially declares that it is closed for that time. Salaried employees will be paid for any work week in which they perform duties but will not be paid for full week closures. Every effort will be made to provide you with advance notice in the event we will be closed. Some employees may be required to work even though the office is officially closed. FAMILY OR MEDICAL LEAVE OF ABSENCE Company will act in accordance with the Oregon Family Leave Act (“OFLA”) regarding time off for family and medical leave of absence (“Family Leave”). Please note that an employee may be entitled to more than one type of Family Leave for the same absence. For information on these leave of absence policies, please contact Human Resources.

Eligibility You must have been employed by Company at least one hundred eighty (180) calendar days immediately preceding the date your Family Leave would begin. For all OFLA leave except Parental Leave, you must have worked an average of twenty-five (25) hours per week during that time period.

Leave Year Designation Company uses a backward rolling year in accordance with applicable law in determining leave availability.

Type and Length of Family Leave A total of twelve (12) workweeks of leave under OFLA may be taken for one or more of the following purposes:

“Parental Leave”: To care for a newborn child or a newly adopted or newly placed foster child under age eighteen (18), or adult "child" who is incapable of self-care because of a disability. This leave applies to each parent of the child. Parental Leave must be completed within twelve (12) months after birth or placement.

“Family Member’s Leave”: To care for a family member with a serious health condition. For the purpose of this leave, "family member" includes an employee's spouse; same-sex domestic partner; biological, adoptive, stepchild, foster child (and any person with whom the employee has a loco

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parentis, i.e., in place of parents, relationship); parent (biological parent or an individual who stands or stood in loco parentis); parent-in-law; grandparent, and grandchild.

“Employee’s Serious Health Condition Leave”: To recover from or seek treatment for a serious health condition that renders you unable to perform one or more of the essential functions of your regular position.

“Sick Child Leave”: To care for your child if that child is suffering from an illness, injury, or condition that requires home care but is not a serious health condition. The availability of another family member to provide home care for the child will be considered by Company in determining whether you are eligible for this leave.

“Bereavement Leave”: For bereavement purposes up to two (2) weeks to deal with the death of a family member, to attend a funeral or make arrangements necessitated by the death, or grieve, within sixty (60) days of the death.

An eligible female employee may take an additional twelve (12) workweeks off within any leave year for any other OFLA leave if she took Employee’s Serious Health Condition Leave because pregnancy or childbirth disabled her from performing any available job offered to her by Company. Also, any eligible employee, male or female, who takes a full twelve (12) weeks of Parental Leave may take up to an additional twelve (12) weeks of Sick Child Leave within the one year period to provide home care to ill or injured children.

Intermittent Leave and Concurrent Application In most circumstances under OFLA, employees may take leave intermittently, which means taking leave in blocks of time or by reducing their normal weekly or daily work schedule. However, Parental Leave must be taken in one uninterrupted period, unless otherwise approved by Company. An exception is that Parental Leave needed to effectuate adoption or foster placement of the child need not be taken in one, uninterrupted period. When two family members work for Company, the employees may not take concurrent Family Leave unless: (a) one employee needs to care for the other employee who is suffering from a serious health condition; or (b) one employee needs to care for a child who has a serious health condition while the other employee is also suffering a serious health condition.

Benefits Family Leave is without payment of wages. However, you are required to utilize all accrued paid leave first, unless you are receiving disability pay.

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Employees who are absent due to a serious on-the-job injury or health condition are eligible for workers' compensation benefits. OFLA will run concurrently if you refuse an offer of light duty or modified employment.

Definition of Serious Health Condition

"Serious health condition" has specific meanings under these laws. It means an illness, injury, impairment, or physical or mental condition that involves: a. Hospital Care Inpatient care (i.e., an overnight stay) in a hospital, hospice, or residential medical care facility, including any period of incapacity or subsequent treatment in connection with or consequent to such inpatient care. b. Absence Plus Treatment A period of incapacity of more than three consecutive calendar days (including any subsequent treatment or period of incapacity relating to the same condition), that also involves: Treatment two or more times by a health care provider, by a nurse or physician's assistant under direct supervision of a health care provider, or by a provider of health care services (e.g., physical therapist) under orders of, or on referral by, a health care provider within 7 days of the initial event and within 30 days total; or • Treatment by a health care provider on at least two occasions per year for periodic treatment which results in a regimen of continuing treatment under the supervision of the health care provider. The first treatment must occur within 7 days of incapacity and must involve an in-person visit. The second must occur within 30 days of incapacity and be in person. c. Pregnancy Any period of incapacity due to pregnancy, or for prenatal care. d. Chronic Conditions Requiring Treatments A chronic condition which: • Requires periodic visits for treatment by a health care provider, or by a nurse or physician's assistant under direct supervision of a health care provider; • Continues over an extended period of time (including recurring episodes of a single underlying condition); and

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• May cause episodic rather than a continuing period of incapacity (e.g., asthma, diabetes, epilepsy, etc.). e. Permanent/Long-term Conditions Requiring Supervision A period of incapacity which is permanent or long-term due to a condition for which treatment may not be effective. The employee or family member must be under the continuing supervision of, but need not be receiving active treatment by, a health care provider. Examples include Alzheimer's, a severe stroke, or the terminal stages of a disease. f. Multiple Treatments (Non-Chronic Conditions) Any period of absence to receive multiple treatments (including any period of recovery therefrom) by a health care provider or by a provider of health care services under orders of, or on referral by, a health care provider, either for restorative surgery after an accident or other injury, or for a condition that would likely result in a period of incapacity of more than three consecutive calendar days in the absence of medical intervention or treatment, such as cancer (chemotherapy, radiation, etc.), severe arthritis (physical therapy), kidney disease (dialysis). "Incapacity" means the inability to work, attend school or perform other regular daily activities due to the serious health condition, treatment therefor, or recovery therefrom. "Treatment" includes examinations to determine if a serious health condition exists and evaluations of the condition. Treatment does not include routine physical examinations, eye examinations, or dental examinations. A regimen of "continuing treatment" includes, for example, a course of prescription medication (e.g., an antibiotic) or therapy requiring special equipment to resolve or alleviate the health condition. A regimen of treatment does not include the taking of over-the-counter medications such as aspirin, antihistamines, or salves; or bed-rest, drinking fluids, exercise, and other similar activities that can be initiated without a visit to a health care provider.

Requirements Request for Family Leave must be made in writing. If the need for the leave is known to you in advance, you must give thirty (30) days advance notice. In addition our usual reporting and call-in requirements must be met, absent unusual circumstances, during the leave. Medical certification supporting the need for leave due to the serious health condition of an employee or immediate family member, or the need to provide home care to a child, may be required. However, medical verification will not be required to substantiate your need to be absent to provide "home care" for a child unless you are absent for this purpose more

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than three (3) workdays in a one-year period. Contact between Company and your health care provider will comply with the Health Insurance Portability and Accountability Act privacy regulations. Company may contact your health care provider for authentication or clarification of the medical certification by using a health care provider, a human resource professional, a leave administrator, or a management official. In no case will your direct supervisor contact your health care provider. You also may be required to provide second or third medical opinions (at our expense), periodic recertifications and fitness for duty reports, and weekly reports during leave regarding your status and intent to return to work. Copies of second and third opinions will be provided to you upon request. When leave is needed to care for an immediate family member or the employee's own illness and is for planned medical treatment, the employee must try to schedule treatment so as not to unduly disrupt the Company’s operations. When an employee gives notice of Family Leave, Company shall give the employee specific information on what is required of the employee and what might occur in certain circumstances, such as if the employee fails to return to work after Family Leave. Employees on leave must keep Company apprised of their anticipated date of return to work, changes in medical status, address or telephone number, and any other reporting obligations directed by Company. All employees who are either fully or partially released to return to work must report to Company upon receipt of the release. Company will generally require a release to return to work from an employee's treating physician before an employee will be allowed to return to work.

Health Insurance The Company is not required to maintain your group health insurance coverage while on leave, but you may be eligible to maintain the insurance by self-pay.

Reinstatement In order to have reinstatement rights when you are returning from Family Leave, you must request reinstatement promptly upon the expiration of leave. If you make a timely request for reinstatement and comply with other requirements under state regulations, you shall be reinstated to your former position in accordance with applicable law. If you cannot be reinstated to your former position because that position no longer exists, you will be reinstated to an available equivalent position in accordance with applicable law. If there is not an available equivalent position, you must continue to submit written requests for extensions of your leave until a suitable job becomes available. Otherwise, Company will assume that you are no longer interested in employment and your employment will be terminated.

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RULES APPLICABLE TO SPECIFIC TYPES OF LEAVE It is the employee’s responsibility to ensure that all required information is provided, and that his/her supervisor receives the leave request in a timely manner. Questions should be directed to the Director of Operations. OREGON MILITARY FAMILY LEAVE ACT (“OMFLA”)

All employees who work an average of 20 hours per week or more are eligible for Oregon Military Family leave.

During a period of military conflict, employers must provide an eligible employee who is a military spouse up to fourteen (14) days of unpaid leave per deployment of his/her spouse in the Armed Forces, National Guard, or military reserves when the spouse: (1) has been notified of an impending call to active duty; (2) has been ordered to active duty; or (3) has actually been deployed.

Within five days of receiving official notice and an impending call or order to active duty or of a leave for deployment the employee must notify their supervisor.

Employee must pay for their insurance premiums during any Oregon military leave. Military family leave cannot run consecutive with workers compensation leave. Reinstatement rights are allowed to employees on Military family leave.

PERSONAL LEAVES OF ABSENCE Request For Leaves Of Absence: Any employee who wishes to take a leave of absence should submit a written leave request with the following information: 1. Reason leave is being requested. 2. Anticipated date the leave of absence will begin and end. It is in the discretion of the Company whether to grant the leave and under what circumstances. JURY DUTY It is your civic duty as a citizen to report for jury duty whenever called. If you are called for jury duty, we will permit you to take the necessary time off. If you have completed 90 days of employment, the Company will pay you your regular pay, not to exceed eight (8) hours per day, for a maximum of five (5) business days. You will be required to remit Jury Duty pay back to the Company. You must notify the Director of Operations within forty-eight (48) hours of receipt of the jury summons. On any day or half-day you are not required to serve, you will be expected to return to work. In order to receive jury duty pay, you must present a statement of jury service and pay to your manager. The court issues this document.

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BEREAVEMENT In the event of death in the immediate family of any full-time employee, a three (3) day leave of absence with pay may be granted to you. The President must approve a request for such leave. Paid time under this policy is given over and above any time allowed and earned under our Leave Accrual Policy. Immediate family for the purposes of this policy, is defined to include a mother, father, spouse, registered domestic partner), child, sister, brother, in-laws and grandparents. See also OFLA policy regarding unpaid Bereavement Leave of which these 3 days are credited towards. MILITARY LEAVE OF ABSENCE Leaves of absence without pay for military or reserve duty are granted to all regular employees in accordance with federal and state laws. If you are called to active military duty or must appear for Reserve or National Guard training, or if you volunteer for such duty, you must notify your supervisor as quickly as possible. Your reinstatement to the job you held prior to your leave is mandated by federal and state laws based on various notice requirements. Please notify your supervisor either prior to your departure regarding your anticipated return date or, during your leave, contact your supervisor to give notice about your anticipated return date. RETURNING FROM A LEAVE OF ABSENCE When you are on a leave of absence, an effort will be made to hold your position for the period of approved leave. However, due to business needs, and subject to applicable laws, there will be times when positions cannot be held open or when an employee will not be able to return to the same position. It is not possible to guarantee reinstatement, unless required by law. If you do not accept the position offered you will be considered to have voluntarily terminated our employment effective the day such a refusal is made. If you fail to report to work immediately following the end of the approved leave period, you will be deemed to have resigned from employment. If an employee is on leave due to an on-the-job injury and then receives medical clearance to return to full or partial duty, the employee must supply a copy of the release to the Director of Operations within five calendar days. CRIME VICTIMS’ LEAVE Employees who are the victim of a crime may be eligible for leave in order to assist in the prosecution and trial of the accused. This leave is unpaid leave. Employees taking qualifying Crime Victims’ Leave may choose to use vacation if any is accrued during this leave so the leave will be paid. Employees must provide no less than three days’ notice of the intention to take leave to attend a court hearing. The employee must also provide a copy of any hearing notice to the employer prior to taking the leave.

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DOMESTIC VIOLENCE LEAVE Employees may be eligible for leave to address domestic violence issues as follows:

To seek legal or law enforcement remedies to ensure the employee’s (or their minor child’s) health and safety. This includes preparing for and participating in protective order proceedings or other civil or criminal legal proceedings related to domestic violence, sexual assault or stalking;

To seek medical treatment or to recover from injuries caused by domestic violence, sexual assault or stalking;

To obtain counseling related to domestic violence, sexual assault or stalking;

To obtain services from a victim services provider; or

To relocate or secure their existing home to ensure the employee’s (or their child’s) health and safety.

This leave is unpaid leave. Employees taking qualifying Domestic Violence Leave may choose to use vacation, if any is available, during this leave so the leave will be paid. The employee must also be the victim of the domestic violence, sexual assault, or stalking (or the parent/guardian of a minor child who is a victim). Employees must provide reasonable notice of the intention to take leave. The employer may require the employee to provide certification that he/she is the victim of domestic violence, sexual assault or stalking and that the leave is for one of the purposes outlined above (i.e. a police report, a protective order, or documentation from an attorney, police, counselor, clergy member, etc. that the employee or their child was undergoing treatment, counseling, or relocating as a result of domestic violence). REST PERIODS FOR EMPLOYEES WHO EXPRESS BREAST MILK Unpaid rest periods of not less than 30 minutes will be provided to accommodate an employee who needs to express milk for her own child 18 months of age or younger. Employees are entitled to one such rest period during each four-hour work period. Insofar as feasible, the rest period should be taken approximately midway through the four-hour work period and at the same time as the rest or meal breaks otherwise provided to the employee. The Company will make reasonable efforts to provide a room in close proximity to the employee’s regular work area that is shielded and free from intrusion from coworkers and the public to allow the employee to express milk in private, other than a public restroom.

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An employee who intends to express milk upon returning to work is required to provide reasonable notice to the Company of her intent to do so. The Company may allow an employee to temporarily change job duties if the employee’s regular job duties do not allow her to express milk. LEAVE FOR RELIGIOUS PRACTICE OR OBSERVANCE Employees may use their accrued vacation pay, to engage in religious practices and/or observances. Unless it causes an undue burden on the Company, employees will not be restricted from wearing religious clothing, taking time off for a holy day, or taking time off to engage in a religious observance or practice.

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PERSONAL CONDUCT The Company is involved in a highly competitive business in which many individuals and companies rely on the quality and reliability of our service. Thus, all employees are expected to provide excellent and reliable performance. Any failure to meet this high standard is grounds for discipline or discharge. DISCIPLINE The Company believes that discipline should be fairly administered. This means that we may attempt to give employees advance notice of problems with their conduct or performance in order to provide them an opportunity to correct any problems. However, the Company reserves the right to terminate immediately as deemed appropriate based on the circumstances and the seriousness of the situation. Such a decision is within the sole discretion of the Company. Discipline less than termination may take the form of a verbal warning, one or more written warnings, a performance appraisal indicating substandard performance in one or more areas, probation, suspension or demotion. Which of these options is chosen or whether any of them are used prior to termination depends on factors such as the seriousness of the infraction and prior performance in our sole discretion. GENERAL STANDARDS OF CONDUCT The following are the standards and procedures that we expect employees to follow while they are employed at Zimmer Biomet Oregon. Violations of any of these rules can result in disciplinary action. However, the Company will use these rules as guidelines only and will evaluate each situation individually. The list below is not a complete list, and we may add, delete or otherwise change these work rules at any time. Listed below are examples of certain kinds of actions that cannot be permitted to occur because of their unfair impact or danger to co-workers, property, customers, suppliers or the employee him/herself. By way of example and not limitation, such offenses may include: A. Insubordination, refusal to follow instructions of a supervisor or refusal to accept a

job assignment;

B. Divulging Confidential Information as defined in these policies without authorization;

C. Falsifying records, reports, signature, or information of any nature;

D. Theft, misappropriation, or unauthorized possession or use of property belonging to the Company, to a visitor another employee, or customer;

E. Violation of our drug and alcohol policies;

F. Failure to notify a supervisor of absence and reason for absence from assigned work within twenty-four (24) hours of such absence;

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G. Possession of a weapon on Company premises or on Company business. The definition of weapon is within the sole discretion of the Company.

H. Harassing, bullying, rude, abusive or similar behavior;

I. Fighting;

J. Damaging, defacing, or mishandling Company equipment or the property of a visitor or another employee or customer;

K. Violation of Company safety, fire prevention, security regulations, personal cleanliness, or other conduct that may impair the safety of others;

L. Gambling or conducting games of chance or possession of gambling devices on the premises;

M. Sleeping on duty;

N. Embezzlement;

O. Treating others in an abusive, discriminatory or harassing manner;

P. Working for a competitor or establishing a competing business;

Q. Failure to abide by the Company’s professional standards or participating in any unethical behavior;

R. Interfering with other employees’ performance of their duties.

S. Any violation of these policies or procedures.

T. Conviction of a criminal offense related to healthcare or listed by a government agency of any country as “Excluded,” “Debarred,” “Sanctioned,” “Suspended” or otherwise ineligible for Federal Health Care Program participation.

ELECTRONIC SYSTEMS USE Use of the System: the Zimmer Biomet Oregon server, computers, and Internet access is to be used only for business purposes. Incidental personal use during non-working hours (defined as lunch breaks, meal or rest periods) is permissible if approved by your supervisor and the use: A. Does not consume more than a trivial amount of resources that would otherwise be

used for business purposes.

B. Does not interfere with employee productivity.

C. Does not preempt any business activity.

Associates may not use the server and Internet access for soliciting business, selling products or otherwise engaging in commercial activities other than those expressly permitted by your supervisor or the Director of Operations, or that in any way violates the Company policy on Communications Systems. Privacy: Employees who use Company electronic or telephonic equipment for communications and information transmittal, access, receive from or store information into

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these systems, do so at their own risk. The equipment is the property of the Company and, as such, may be monitored. This review includes any use of Company systems to access your own personal password protected internet accounts. We may view such accounts if you access them on our equipment or via our systems. Employees using access codes other than their own to retrieve any stored data or communication is strictly prohibited. Use of e-mail to send chain letters or spam is prohibited. You should not have any expectation of privacy as the Company may review its electronic systems and all information therein at any time. Any downloading of material which is not related to Company needs and purposes is not allowed. Also prohibited is the downloading of or installation on Company computers of application software either from the Internet or other sources. Such software may not only contain viruses but also may interfere with the functioning of Company software. Please do not copy or disseminate material which is copyrighted or confidential. Accessing or downloading pornography or material that is harassing or discriminatory is grounds for discipline up to and including termination. The Company reserves the right to revoke the privileges of any user at any time. Conduct that interferes with the normal and proper operation of the information systems, that adversely affects the ability of others to use the systems, or which is harmful or offensive to others will not be permitted. STORAGE/PRIVATE PROPERTY Employees who use Company-provided storage space or desks, in which to place their personal property during work hours are not protected by any expectation of privacy. The Company expressly reserves the right to check the contents of Company-provided storage space, desks or any equipment or areas within the organization at any time when there is a reasonable suspicion that the lockers contain Company property or items of contraband, including, but not limited to, alcohol, drugs, firearms, explosives or other material defined by the Company as prohibited. WORKPLACE VIOLENCE Any language or action taken by one employee against another, including employees, customers or venders which can reasonably be interpreted as violent or threats of violence is absolutely prohibited, regardless of the intent. The Company will take prompt disciplinary action against any employee engaging in workplace conduct which could be interpreted as violent, regardless of the intent of the actor. In addition, the Company may contact the police or other law enforcement agency to intervene or to prosecute violators of this policy to the maximum extent allowable.

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Employees, former employees, customers and visitors are prohibited from bringing firearms, weapons, alcohol or drugs into the workplace or to locations where Company business is being conducted. The determination of what is a weapon is solely within the discretion of the Company. Employees who engage in any of the above-described behavior will be subject to discipline up to and including termination. If anyone comes into the workplace and begins to display offensive or threatening behavior, leave immediately and contact the police or law enforcement agency. Employees have a “duty to warn” if they are aware of any suspicious workplace activity. This includes threats or acts of violence, aggressive behavior, etc. If an employee is being threatened outside of work by an acquaintance or family, notify your supervisor so that appropriate workplace precautions can be taken in the best interest of you and your co-workers. DRUG AND ALCOHOL ABUSE POLICY The Company is committed to work cooperatively with all of our employees in achieving an alcohol and drug free workplace. Alcohol and other drug abuse is a significant public health problem and has a detrimental effect on the business community in terms of increased medical claims, medical disability costs, decreased productivity, injuries, theft and absenteeism. Accordingly, we all have an obligation to maintain a safe, healthy, and productive working environment and to protect the Company’s property, operations and reputation by establishing a drug-free workplace program. In turn, this will create a higher level of professionalism among our employees that will be passed on to our customers in all daily functions. The Company will achieve a work environment free from the effects of alcohol and drug abuse by establishing the following rules. Violation of these rules will be subject to disciplinary action up to and including termination of employment. The following conditions and activities are expressly prohibited and will result in discipline up to and including immediate termination: The use, manufacture, sale or impairment due to use or possession of alcohol, and controlled or illegal substances, on our premises or property, or during work time, or while representing us in any work-related fashion is prohibited. An “illegal drug” under this policy is one which is illegal under either state or federal law including cannabis THC, marijuana in edible, topical, inhaled, smoked or other form. Reporting for work having consumed alcohol or used illegal drugs or controlled substances at a time, or in such quantities, or in a manner that may impair your abilities to perform your job duties is a violation of policy. For purposes of this policy, having any detectable level of

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alcohol or an illegal drug in one's system while covered by this policy, will be considered to be a violation. It is within the sole discretion of the Company to determine if your abilities to perform your job are impaired. Employees who are medically authorized to use drugs or other substances which may cause a risk of harm to the employee or others, are responsible to determine from the prescribing physician whether or not the substance can cause such a risk. If the substance may cause a risk of harm to the employee or others, an employee must report the use of the substance to his or her immediate supervisor and provide proper written medical authorization from the prescribing physician to safely work while using such authorized drug. Failure to report any illegal drug and alcohol activity on the job or convictions of drug and alcohol related crimes, may be grounds for discipline up to and including termination. The Company has set forth the following rules to achieve a work environment that is free from the effects of alcohol and drug abuse. To achieve the goal of an alcohol and drug-free workplace, the Company may: Maintain pre-employment screening practices designed to prevent hiring individuals who use illegal drugs or individuals whose use of legal drugs or alcohol is inconsistent with effective and safe job performance; Drug and Alcohol Testing Reasonable suspicion: Where we have reasonable suspicion that an employee is in violation of this policy, the employee will be required to submit to testing to determine the presence or use of or any involvement with alcohol or drugs. We reserve the right to determine whether reasonable suspicion exists including post accident safety violation or near miss. Random: We reserve the right to perform random testing. Re-testing: Employees may be subject to test upon their return to work from a leave of absence of any kind which lasted longer than 30 days or upon transfer or promotion to another position. Government regulations: We will also conduct testing as required or recommended under the provision of any state or federal government regulations. Any employee who is within a regulated group requiring testing will be required to abide by the Company policy as well as government requirements. Specific project requirements: At times, new customers or certain projects require all vendors to submit to alcohol and drug testing. This may come at anytime, outside of the normal random testing. If pre-testing is required by a certain vendor before the start of the

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project, all necessary employees dispatched for that particular job will be tested. All Company rules and regulations pertaining to our drug and alcohol policy will be enforced. The following employee protection will be incorporated to ensure the accuracy and integrity of the drug-testing program. Only a Substance Abuse and Mental Health Services Administration-certified drug-testing laboratory will be used. A strict chain of custody will be used to ensure the integrity of each urine specimen. All confirmed positive test results will receive a professional medical review that includes offering the employees the opportunity to explain or contest the results. Due to the working conditions that surround our industry, including but not limited to, handling sensitive and high value items, driving, insurance and security issues, any employee that tests positive for drug or alcohol, while involved with job related duties, will be subject to disciplinary action up to termination of employment. The refusal of an employee to take a drug or alcohol test will be considered insubordination and the employee will be subject to disciplinary action up to and including termination of employment. Tampering with a sample or providing a dilute sample will be considered the same as a positive test and the employee will be subject to disciplinary action up to and including termination. Right to retest in the event of a positive test result: An employee may request that any sample be split into two parts; with one part tested and the other retained by the testing laboratory for future retesting in the event of a positive test result. If an employee requests a retest, such retest will be at the employee's expense and must be conducted by a laboratory which is acceptable to the Company. A list of approved laboratories will be provided upon request. Problems with the collection process: Any employee who believes that his/her specimen was not collected in accordance with established procedures must report any deficiencies within 24 hours of the collection. Deficiencies reported after 24 hours have expired and will not be considered. Disciplinary measures: Any employee who is found to be in violation of this policy, or who refuses to submit to testing as required, or who refuses to cooperate with, or attempts to subvert the testing process will be subject to disciplinary action which could include termination of employment. The Company also reserves the right to involve law enforcement officials for any conduct that it believes might be in violation of state or federal law.

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SAFETY It always has been, and shall continue to be, our intention to provide the safest possible work environment for our employees and to take practical steps necessary to prevent injury to our personnel. Accidents result in the unnecessary loss of health, time, productivity, materials, machinery and money. In most cases, they could have been prevented. In the interest of employee safety, therefore, we have instructed all supervisory personnel to look for, record and correct all unsafe conditions and/or acts performed by persons under their supervision. You are required to familiarize yourself with and follow all safe practices and all of the safety procedures. All employees should become aware of the hazards that lead to injury and waste, and think about their own safety and well being, as well as that of co-workers and visitors. You must report any injury or accident, no matter how small, to the operations manager. Safety is everyone’s responsibility. Safety Regulations

A. All injuries should be immediately reported and investigated. Appropriate first aid should be administered. Please let your supervisor know if you have specialized first aid training.

B. Running, jumping, horseplay and other activities that have a potentially adverse influence on the well being of employees are prohibited.

C. Equipment or machinery should not be adjusted or repaired while in operation, except equipment that has been fitted with safeguards to protect the person performing the work.

D. You should not handle or tamper with electrical equipment, machinery, or tools that are not within the scope of your duties or that you are not properly trained to use.

E. Correct lifting techniques, employing the legs, not the back, should be used at all times. Test a load to determine if you need assistance.

CELLULAR TELEPHONES/PDA’s While at work, employees are expected to exercise the same discretion in using personal cell phones/PDA’s as they use with the Company phones. Excessive personal use during the workday, can interfere with employee productivity and be distracting for others. Consequently, personal communication devices may only be used during non-working time on your breaks or for an emergency during work hours. This includes, but is not limited to, cell phone calls, texting, checking emails, etc. In addition, it is Company policy that you will not operate a motor vehicle while utilizing an electronic device of any type. If you receive a telephone call while driving, you are to immediately and safely pull out of traffic and stop the vehicle. Once the conversation has been completed, you may resume driving. Failure to follow these safety regulations may result in disciplinary action.

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FIRE, BOMB, THREAT, OR DISASTER A Fire Plan, a Disaster Program and bomb threat instructions have been established for the Company. All employees will be oriented to these instructions and will be required to know their duties in the event of fire, bomb threat or disaster. Accidents to Employees If you are injured on the job, you must, if possible, report this to your supervisor immediately. If necessary, the supervisor will arrange for treatment and for follow-up care. If you seek medical attention or miss any time from work due to your injury, you will be required to complete the employee section of an Occupational Illness and Injury Report form. The Chief Operating Officer shall complete the employer section and forward the form within five (5) working days to the Company’s Workers’ Compensation insurance carrier. Accidents to Visitors If you witness or discover that a visitor has had an accident on the premises, take a friendly and helpful interest in the visitor and assist him/her. If the visitor is not well enough to be moved, call for assistance. Listen carefully to the visitor’s report of the accident, but avoid any conversation or statements to the visitor concerning the cause, fault, or liability. The appropriate supervisor shall prepare a written report on all accidents involving visitors. SMOKING The office is a designated non-smoking office with assigned ‘smoking areas’. For the sake of clarity, but not by way of limitation, the ‘no smoking’ areas include all indoor office areas. Designated ‘smoking areas’ are located outside the building. Compliance with the above is the responsibility of all staff and will be approached in this manner. BULLETIN BOARDS A bulletin board is available to provide information to the employees and to communicate official government information on equal employment opportunity, wage and hour and workplace safety and health. Please read these notices. Do not remove them from the bulletin board. Employees may post information on the bulletin board with the approval of their supervisor(s). However, no advertisements or commercial notices or jokes, cartoons or witticisms are appropriate. CONFIDENTIALITY AND NON-DISCLOSURE The protection of Confidential Information and trade secrets is vital to the interests and the success of the Company.

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Employees will have access to certain valuable Confidential Information as defined herein (both technical and nontechnical) and trade secrets and the employee may develop such Confidential Information during the course of employment. Employees shall not disclose or use at any time, either during or after termination, except as required in employee’s duties to the employer, Confidential Information, whether or not developed by employee, unless employee shall first obtain written consent of an officer of the company or such confidential information has become general public knowledge by any means other than through the fault of employee. Confidential Information shall include employer know-how, designs, formulae, processes, devices, machines, inventions, research or development projects, plans for future development, materials of a business nature including marketing concepts, customer and potential customer lists and data, customer specifications, pricing information, financial information and any other information relating to the employer and our services and products not available to the public. Employees who have access to personnel information may not disseminate or disclose such information without the express permission of the employee. This provision will not be administered in such a way as to interfere with employees’ rights to protected, concerted activity. Employees shall not publish or cause to be published any articles, oral presentations, documents, or materials related to the business or activities of the employer or the Company without obtaining advance written consent. Employees shall not disclose to employer, or seek to induce employer to use any confidential information, material, or trade secrets belonging to others. Employees must disclose promptly to employer any and all inventions, discoveries, improvements, and business or marketing concepts related to the business or activities of employer, or related to the contemplated business or activities of the employer, and which are conceived or made by employees, either alone or in conjunction with others, at any time or place during the period employee is employed by employer. Employee must assign all interest in the inventions, discoveries, improvements, and business or marketing concepts to employer. Whenever requested to do so by employer, employee must execute, at employer’s expense, any and all applications, assignments, or other documents which employer shall determine necessary to apply for an obtain letters or patents to protect the employer’s interest in such inventions, discoveries, improvements, and business or marketing concepts conceived or made by employee during the period of employment. If an employee claims to have conceived any such inventions, discoveries, improvements, and business or marketing concepts within a six-month period following termination of employee’s employment, the burden of proving conception after such termination shall be on employee. Upon termination of employment, employees must promptly deliver all Confidential Information including drawings, blueprints, manuals, letters, contracts, agreements, notes,

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notebooks, records, reports, memoranda, formulae, and all other materials relating to the employer’s business, including all copies thereof, which are in the possession or under the control of an employee whether in hard copy or electronic. All requests for statements or information from the news media shall be directed to the President. Employees who improperly use or disclose trade secrets or Confidential Information will be subject to disciplinary action, up to and including termination of employment and legal action, even if they do not benefit from the disclosure of the information. OUTSIDE EMPLOYMENT What you do on your free time is your own business. However, if you are employed by Zimmer Biomet Oregon, the Company will expect that your position here is your primary employment. Any outside activity must not interfere with your ability to perform your job duties at Zimmer Biomet Oregon. If you are thinking of taking on a second job, you must have such employment approved in advance by the President. If it is determined that your second job is interfering with your ability to perform your duties at this job, you may be asked to choose between the two positions. GARNISHMENTS You are expected to maintain your personal finances in a manner that will preclude their becoming a burden to administration. Failure to meet financial obligations may result in a garnishment of your wages. A garnishment is a court-ordered legal claim against the wages of an employee by a creditor for non-payment of a debt. It is served by legal authority and must be recognized and executed by the Company. Because of inability to meet your financial obligations is a reflection on the Company; it is imperative that every staff member conduct his/her personal financial affairs with the utmost integrity. COMPANY SPONSORED SOCIAL EVENTS The Company hosts a variety of social events for employees and clients. These events are meant to be enjoyable and entertaining. However, it is important to remember that you are still representing the Company when you attend these functions. Employees and representatives of the Company are expected to conduct themselves in a responsible manner. Alcohol may be served at these functions. Employees and representatives of the Company should use the alcohol in moderation. For the purposes of this policy, moderate use of alcohol means the employee or Company representative remains, at all times, in control of their faculties, including, but not limited to, meeting the legal standard for operation of a motor vehicle. One of the Company’s goals during these functions is to assure everyone’s safety, as well as to prevent damage to the property. As a representative of the Company, you should take reasonable steps to meet these goals. If you bring a client or guest to the function, you

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are responsible for ensuring that client or guest does not expose the Company to added liability. For example, if it is reasonable to believe that the client or guest would not meet the legal standard for operation of a motor vehicle, you should not allow them to drive away from the function. If a client or guest is impaired, you should not continue to serve them alcohol. If a client or guest becomes disruptive, you should escort that individual away from the function. PERSONAL MAIL AND TELEPHONE USE You should have all of your personal mail sent to you at your home address. Any personal mail that you send from the premises must not use the Company’s postage or metering. Using Company postage or supplies for personal use may be grounds for termination. Telephone courtesy is important in making friends for the Company and in making work more pleasant for all employees. The telephone is to be answered promptly, with the employee receiving the call identifying him/herself by name. Transfer calls tactfully and respectfully. Office telephones should not be utilized for personal telephone calls if at all possible. We understand there may be circumstances that require personal use of the office telephones. However, personal telephone calls, other than emergencies, should be received during the employee’s rest or lunch break. Placing personal long distance calls that are billed to the Company is prohibited. PERSONAL PACKAGES AND ARTICLES You are asked to keep all of your valuables in a secure place. A routine check of employees leaving the premises with packages or articles may be held periodically without announcement. Any supervisor or other Company designated person has the authority to inspect packages or other articles leaving the Company’s premises in the possession of any employee. You are discouraged from bringing other packages or articles to work. If you do so, you should have no expectation of privacy with respect to them. APPEARANCE Please pay particular attention to your dress and personal cleanliness, and adhere to the best professional standards. Grooming and dress should be neat, clean and appropriate to our professional surroundings. Please utilize good judgment in determining dress and appearance. When in doubt, you should decide in favor of conservative and traditional grooming and attire. Employees who are inappropriately dressed may be sent home and directed to return in proper attire. Such employee will not be compensated for the time away from work. The Company may impose additional requirements regarding appropriate clothing and personal grooming. Repeated failure to comply with appropriate clothing and grooming standards may be grounds for discipline, up to and including termination.

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SOLICITING AND SALES To avoid disruption of operations, the following rules apply to solicitations and distribution of literature on Company property: Employees may not solicit other employees for membership, contributions, funds or other purposes during the employee’s working time or at any time if such solicitation interferes with other employees who are scheduled to be working. Except for Company information, employees may not distribute literature for any purpose during work time or in work areas. Working time includes the working time of both the employee doing the soliciting and/or distributing and the employee to whom the soliciting and/or distributing is directed. Working time does not include break periods and/or meal periods. Persons who are not employed by the Company may not solicit or distribute literature on Company property at any time for any purpose.

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MISCELLANEOUS RECEIPT OF COURT DOCUMENTS No one other than the Chief Operating Officer, or personnel delegated in writing by the Chief Operating Officer is allowed to accept or sign for subpoenas, summons, or other legal documents on behalf of the Company. In the event a summons is left at the Company, the Chief Operating Officer should be notified immediately. CARE OF EQUIPMENT Equipment is costly, but even more important is the fact that it may be essential to conduct Company business. Please care for the equipment as you would your own property. You are asked to report any malfunctions or problems with equipment to your supervisor. LOST ARTICLES The Company does not assume responsibility for personal articles lost or stolen.

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RECEIPT OF EMPLOYEE POLICIES HANDBOOK

I acknowledge that I have been given a copy of the Employee Policies Handbook. I understand that the information provided is a guide only and that the Company has the right to change this handbook or terminate any policies, procedures or employee benefits, whether or not described in this handbook, at any time. I understand that I must read this handbook, know its contents and adhere to the Company’s policies and procedures. I understand that this handbook is not a contract of employment, express or implied, between me and the Company and that I should not view it as a guarantee of continued employment for a specific length of time – that my employment relationship is “at-will,” thereby allowing me or the Company to sever the employment relationship at any time, with or without notice, with or without reason. Date: ____________________ Employee Name:

Employee Signature: NOTE TO EMPLOYEE: This form will be placed in your personnel file.