Document:

Employment Agreement between Orthofix Inc. and Jeffrey M. Shumm

 Exhibit 10.31 
 EMPLOYMENT AGREEMENT 
 This Employment Agreement (the
“Agreement”), entered into and effective as of December 6, 2010 (the “Effective Date”), is by and between Orthofix Inc., a Minnesota corporation (the “Company”), and Jeffrey M. Schumm, an
individual (the “Executive”). 
 PRELIMINARY STATEMENTS 

A. The Company desires to promote the Executive to the position of Senior Vice President, General Counsel and Corporate Secretary of the
Company and the Executive desires to render such services, upon the terms and conditions contained herein. 
 B. The Company is
a subsidiary of Orthofix International N.V., a corporation organized under the laws of Curacao (the “Parent”) for whom Executive will also perform services as contemplated hereby, and under certain compensation plans of which
Executive shall be eligible to receive compensation, and Parent is agreeing to provide such compensation and guarantee the Company’s payment obligations hereunder. 
 C. Capitalized terms used herein and not otherwise defined have the meaning for them set forth on Exhibit A attached hereto and incorporated herein by reference. 

The parties, intending to be legally bound, hereby agree as follows: 

I. EMPLOYMENT AND DUTIES 
 1.1 Duties. The Company hereby employs the Executive as an employee, and the Executive agrees to be employed by the Company, upon the terms and conditions set forth herein. While serving as
an employee of the Company, the Executive shall serve as the Senior Vice President, General Counsel and Corporate Secretary of the Company, and be appointed to serve as Senior Vice President, General Counsel and Corporate Secretary of the Parent.
The Executive shall have such power and authority and perform such duties, functions and responsibilities as are associated with and incident to such positions, and as the Board may from time to time require of him. The Executive also agrees to
serve, if elected, as an officer or director of Parent or any other direct or indirect subsidiary of the Parent, in each such case at no compensation in addition to that provided for in this Agreement, but the Executive serves in such positions
solely as an accommodation to the Company and such positions shall grant him no rights hereunder (including for purposes of the definition of Good Reason). 
 1.2 Services. During the Term (as defined in Section 1.3), and excluding any periods of vacation, sick leave or disability, the Executive agrees to devote his full business time,
attention and efforts to the business and affairs of the Company. During the Term, it shall not be a violation of this Section 1.2 for the Executive to (a) serve on civic or charitable boards or committees (but not corporate boards),
(b) deliver lectures or fulfill speaking engagements or (c) manage personal investments, so long as such 

 
activities do not interfere with the performance of the Executive’s responsibilities in accordance with this Agreement. The Executive must request the Board’s prior written consent to
serve on a corporate board, which consent shall be at the Board’s reasonable discretion and only so long as such service does not interfere with the performance of his responsibilities hereunder. 

1.3 Term of Employment. The term of this Agreement shall commence on the Effective Date and shall continue until 11:59 p.m.
Eastern Time on July 1, 2012 (the “Initial Term”) unless sooner terminated or extended as provided hereunder. This Agreement shall automatically renew for additional one-year periods on July 1, 2012 and on each and every
July 1 thereafter (each such extension, the “Renewal Term”) unless either party gives the other party written notice of its or his election not to extend such employment at least ninety (90) days prior to the next
July 1 renewal date. Further, if a Change of Control occurs during the Initial Term or during any Renewal Term, this Agreement shall automatically be extended for two years only from the Change of Control Date and thereafter shall terminate on
the second anniversary of the Change of Control Date in accordance with its terms. The Initial Term, together with any Renewal Term or extension as a result of a Change of Control, are collectively referred to herein as the “Term.”
In the event the Executive continues to be employed by the Company (or any other member of the Parent Group) after the Term, unless otherwise agreed by the parties in writing, such continued employment shall be on an at-will, month-to-month basis
upon terms agreed upon at such time without regard to the terms and conditions of this Agreement (except as expressly provided herein) and this Agreement shall be deemed terminated at the end of the Term, regardless of whether such employment
continues at-will, other than Articles VI and VII, which shall survive the termination or expiration of this Agreement for any reason. For the avoidance of doubt, non-renewal of the Term shall not trigger any of the payments set forth in
Section 5.1. 
 1.4 Place of Performance. During the Term, the Executive shall initially be based in
Huntersville, North Carolina. On or around February 28, 2011, the Executive will commence transitioning his place of performance to Lewisville, Texas. By September 1, 2011, Executive shall be based in Lewisville, Texas. 

II. COMPENSATION 
 2.1 General. The base salary and Incentive Compensation (as defined in Section 2.3.) payable to the Executive hereunder, as well as any stock-based compensation, including stock
options, stock appreciation rights and restricted stock grants, shall be determined from time to time by the Board and paid pursuant to the Company’s customary payroll practices or in accordance with the terms of the applicable Plans (as
defined in Section 2.4). The Company shall pay the Executive in cash, in accordance with the normal payroll practices of the Company, the base salary and Incentive Compensation set forth below. For the avoidance of doubt, in providing any
compensation payable in stock, the Company may withhold, deduct or collect from the compensation otherwise payable or issuable to the Executive a portion of such compensation to the extent required to comply with applicable tax laws to the extent
such 

  
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withholding is not made or otherwise provided for pursuant to the agreement governing such stock-based compensation. 
 2.2 Base Salary. The Executive shall be paid an annual base salary of no less than $270,000 while he is employed by the Company during the Term; provided, however, that nothing
shall prohibit the Company from reducing the base salary as part of an overall cost reduction program that affects all senior executives of the Parent Group and does not disproportionately affect the Executive, so long as such reductions do not
reduce the base salary to a rate that is less than 90% of the minimum base salary amount set forth above (or, if the minimum base salary amount has been increased during the Term, 90% of such increased amount). The base salary shall be reviewed
annually by the Board for increase (but not decrease, except as permitted above) as part of its annual compensation review, and any increased amount shall become the base salary under this Agreement. 

2.3 Bonus or other Incentive Compensation. With respect to each fiscal year of the Company during the Term, the Executive
shall be eligible to receive annual bonus compensation under the Parent’s Executive Annual Incentive Plan or any successor plan (the “Bonus Plan”) based on the achievement of goals established by the Board from time to time (the
“Goals”). During the Term, the Executive will have a target bonus opportunity under the Bonus Plan of at least 50% of his then-applicable Base Salary and an opportunity to earn a maximum annual bonus of not less than 60% of his
then-applicable Base Salary. The amount of any actual payment will depend upon the achievement (or not) of the Goals established by the Board. Except as otherwise provided in this Agreement, to receive a bonus under the Bonus Plan, the Executive
must be employed on the date of payment of such bonus. Amounts payable under the Bonus Plan shall be determined by the Board and shall be paid following such fiscal year and no later than two and one-half months after the end of such fiscal year. In
addition, the Executive shall be eligible to receive such additional bonus or incentive compensation as the Board may establish from time to time in its sole discretion. Any bonus or incentive compensation under this Section 2.3 under the Bonus
Plan or otherwise is referred to herein as “Incentive Compensation.” Stock-based compensation shall not be considered Incentive Compensation under the terms of this Agreement unless the parties expressly agree otherwise in writing.

 2.4 Stock Compensation. The Executive shall be eligible to receive stock-based compensation, whether stock
options, stock appreciation rights, restricted stock grants or otherwise, under the Parent’s Amended and Restated 2004 Long Term Incentive Plan or other stock-based compensation plans as Parent may establish from time to time (collectively, the
“Plans”). The Executive shall be considered for such grants no less often than annually as part of the Board’s annual compensation review, but any such grants shall be at the sole discretion of the Board. 

  
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 2.5 Relocation Assistance. 

(a) In anticipation of Executive’s relocation to Lewisville, Texas and the sale of Executive’s home in Huntersville, North
Carolina the “NC Home”), the Executive shall be entitled to a one-time bonus of $100,000, payable in a lump sum within ten calendar days of the date that Executive enters into a contract for the sale of the NC Home (the
“Relocation Assistance Bonus”). The Relocation Assistance Bonus must be repaid to the Corporation in full if Executive resigns without Good Reason less than one (1) year after the Effective Date. If the Executive resigns
without Good Reason after the first anniversary of the Effective Date but prior to the second anniversary of the Effective date, one-half of the Relocation Assistance Bonus must be repaid to the Corporation. In addition, the Executive must repay all
or a portion of the Relocation Assistance Bonus if and to the extent that the after-tax portion of such bonus exceeds the amount of the loss on the sale of Executive’s home in Huntersville, North Carolina. 

(b) Following March 1, 2011, for up to nine months, the Corporation shall reimburse Executive up to $2,500 per month, on an
after-tax basis, as a temporary allowance for housing and storage facility use in the Lewisville, Texas area. The Company will reimburse Executive for actual and reasonable expenses incurred in traveling between between Huntersville, North Carolina
and Lewisville, Texas to the extent approved by the Company’s Executive Vice President and Chief Financial Officer. All such expenses shall be documented in accordance with Section 3.5. 

(c) To facilitate Executive’s relocation, upon the request of Executive made during the Term, the Corporation shall reimburse, on an
after-tax basis (to the extent taxable), (i) all reasonable expenses associated with the packing and transporting of household goods (but excluding any exceptional and unique furniture or other items) from Huntersville, North Carolina to the
Lewisville, Texas area, and (ii) reasonable and customary closing costs and real estate agent fee expenses incurred in connection with the sale of the NC Home and the purchase by Executive of a new home in the metropolitan region of the
Company’s Lewisville, Texas office (collectively, the “Relocation Expenses”). The Relocation Expenses must be repaid to the Corporation if Executive resigns without Good Reason less than one (1) year after the Effective
Date. If the Executive resigns without Good Reason after the first anniversary of the Effective Date but prior to the second anniversary of the Effective Date, one-half of the Relocation Expenses must be repaid to the Corporation. All such expenses
shall be documented in accordance with Section 3.5. 
 III. EMPLOYEE BENEFITS 

3.1 General. Subject only to any post-employment rights under Article V, so long as the Executive is employed by the
Company pursuant to this Agreement, he shall be eligible for the following benefits to the extent generally available to senior executives of the Company or by virtue of his position, tenure, salary and other qualifications. Any eligibility shall be
subject to and in accordance with the terms and conditions of the 

  
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Company’s benefits policies and applicable plans (including as to deductibles, premium sharing, co-payments or other cost-splitting arrangements). 

3.2 Savings and Retirement Plans. The Executive shall be entitled to participate in, and enjoy the benefits of, all
savings, pension, salary continuation and retirement plans, practices, policies and programs available to senior executives of the Company. 
 3.3 Welfare and Other Benefits. The Executive and/or the Executive’s eligible dependents, as the case may be, shall be entitled to participate in, and enjoy the benefits of, all welfare
benefit plans, practices, policies and programs provided by the Company (including without limitation, medical, prescription, drug, dental, disability, salary continuance, group life, dependent life, accidental death and travel accident insurance
plans and programs) and other benefits (including, without limitation, executive physicals and tax and financial planning assistance) at a level that is available to other senior executives of the Company. 

3.4 Vacation. The Executive shall be entitled to 4 weeks paid vacation per 12-month period. 

3.5 Expenses. The Executive shall be entitled to receive prompt reimbursement for all reasonable business-related expenses
incurred by the Executive in performing his duties under this Agreement. Reimbursement of the Executive for such expenses will be made upon presentation to the Company of expense vouchers that are in sufficient detail to identify the nature of the
expense, the amount of the expense, the date the expense was incurred and to whom payment was made to incur the expense, all in accordance with the expense reimbursement practices, policies and procedures of the Company. 

3.6 Key Man Insurance. The Company shall be entitled to obtain a “key man” or similar life or disability
insurance policy on the Executive, and neither the Executive nor any of his family members, heirs or beneficiaries shall be entitled to the proceeds thereof. Such insurance shall be available to offset any payments due to the Executive pursuant to
Section 5.1 of this Agreement due to his death or Disability. 
 IV. TERMINATION OF EMPLOYMENT 

4.1 Termination by Mutual Agreement. The Executive’s employment may be terminated at any time during the Term by
mutual written agreement of the Company and the Executive. 
 4.2 Death. The Executive’s employment hereunder
shall terminate upon his death. 
 4.3 Disability. In the event the Executive incurs a Disability for a continuous
period exceeding 90 days or for a total of 180 days during any period of 12 consecutive 

  
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months, the Company may, at its election, terminate the Executive’s employment during the Term by delivering a Notice of Termination (as defined in Section 4.8) to the Executive 30 days
in advance of the date of termination. 
 4.4 Good Reason. The Executive may terminate his
employment at any time during the Term for Good Reason by delivering a Notice of Termination to the Company 30 days in advance of the date of termination; provided, however, that the Executive agrees not to terminate his employment for
Good Reason until the Executive has given the Company at least 30 days’ in which to cure the circumstances set forth in the Notice of Termination constituting Good Reason and if such circumstances are not cured by the 30th day, the Executive’s employment shall terminate on such date.
If the circumstances constituting Good Reason are remedied within the cure period to the reasonable satisfaction of the Executive, such event shall no longer constitute Good Reason for purposes of this Agreement and the Executive shall thereafter
have no further right hereunder to terminate his employment for Good Reason as a result of such event. Unless the Executive provides written notification of an event described in the definition of Good Reason within 90 days after the Executive has
actual knowledge of the occurrence of any such event, the Executive shall be deemed to have consented thereto and such event shall no longer constitute Good Reason for purposes of this Agreement. 

4.5 Termination without Cause. The Company may terminate the Executive’s employment at any time during the Term
without Cause by delivering to the Executive a Notice of Termination 30 days in advance of the date of termination; provided that as part of such notice the Company may request that the Executive immediately tender the resignations contemplated by
Section 4.9 and otherwise cease performing his duties hereunder. The Notice of Termination need not state any reason for termination and such termination can be for any reason or no reason. The date of termination shall be the date set forth in
the Notice of Termination. 
 4.6 Cause. The Company may terminate the Executive’s employment at any time
during the Term for Cause by delivering a Notice of Termination to the Executive. 
 4.7 Voluntary
Termination. The Executive may voluntarily terminate his employment at any time during the Term by delivering to the Company a Notice of Termination 30 days in advance of the date of termination (a “Voluntary Termination”). For
purposes of this Agreement, a Voluntary Termination shall not include a termination of the Executive’s employment by reason of death or for Good Reason, but shall include voluntary termination upon retirement in accordance with the
Company’s retirement policies. A Voluntary Termination shall not be considered a breach or other violation of this Agreement. 
 4.8 Notice of Termination. Any termination of employment under this Agreement by the Company or the Executive requiring a notice of termination shall require delivery of a written notice by
one party to the other party (a “Notice of Termination”). A Notice of Termination must indicate the specific termination provision of this Agreement relied upon and the date of termination. The date of termination

  
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specified in the Notice of Termination shall comply with the time periods required under this Article IV, and may in no event be earlier than the date such Notice of Termination is delivered to
or received by the party getting the notice. If the Executive fails to include a date of termination in any Notice of Termination he delivers, the Company may establish such date in its sole discretion. No Notice of Termination under
Section 4.4 shall be effective until the applicable cure period, if any, shall have expired without the Company or the Executive, respectively, having corrected the event or events subject to cure to the reasonable satisfaction of the other
party. The terms “termination” and “termination of employment,” as used herein are intended to mean a termination of employment which constitutes a “separation from service” under Section 409A. 

4.9 Resignations. Upon ceasing to be an employee of the Company for any reason, or earlier upon request by the Company
pursuant to Section 4.5, the Executive agrees to immediately tender written resignations to the Company with respect to all officer and director positions he may hold at that time with any member of the Parent Group. 

V. PAYMENTS ON TERMINATION 
 5.1 Death; Disability; Resignation for Good Reason; Termination without Cause. If at any time during the Term the Executive’s employment with the Company is terminated due to his death,
Disability, resignation for Good Reason or termination by the Company without Cause, the Executive shall be entitled to the payment and benefits set forth below only: 

(a) Any unpaid base salary and accrued unpaid vacation then owing through the date of termination, which amounts shall be
paid to the Executive within 30 days of the date of termination. 
 (b) If, for the calendar year prior to the
Executive’s termination, Executive has satisfied a sufficient portion of the Goals to be eligible for a bonus under the Bonus Plan, and such bonus has not yet been paid as of the date of Executive’s termination, Executive shall be paid a
bonus under the Bonus Plan for such prior calendar year, which bonus shall be paid at the same time as payments are made to other participants in the Bonus Plan. 

(c) A pro rata amount of any Bonus Plan Incentive Compensation for the fiscal year of his termination of employment (based
on the number of business days he was actually employed by the Company during the fiscal year in which the termination of employment occurs) based on the achievement of the Goals for the calendar year of his termination of employment. Nothing in the
foregoing sentence is intended to give the Executive greater rights to such Incentive Compensation than a pro rata portion of what he would ordinarily be entitled to under the Bonus Plan Incentive Compensation that would have been applicable to him
had his employment not been terminated, it being understood that Executive’s termination of employment shall not be used to disqualify Executive 

  
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from or make him ineligible for a pro rata portion of the Bonus Plan Incentive Compensation to which he would otherwise have been entitled. The pro rata portion of Bonus Plan Incentive
Compensation shall, subject to Section 7.16, be paid at the time such Incentive Compensation is paid to other participants in the Bonus Plan. 

(d) A one-time lump sum severance payment in an amount equal to 100% of the Executive’s Base
Amount plus, for a termination by the Executive for Good Reason or a termination by the Company without Cause only, $12,500 to be used by the Executive for outplacement services. The lump sum severance payment shall be paid on the 60th day following the Executive’s termination of employment,
provided that prior to such time the Executive has signed the release described in Section 5.4 and the applicable revocation period for such release has expired, subject, in the case of termination other than as a result of the Executive’s
death, to Section 7.16. 
 (e) The post-termination exercise period for any options which are vested as of
Executive’s termination of employment shall be as set forth in the applicable award agreement, provided, however, that any provisions in such an award agreement purporting to give the Executive greater post-termination exercise rights because
he is a party to an employment agreement shall not be given effect. 
 (f) Provided the Executive elects COBRA
in a timely manner, for the lesser of 12 months after termination or until the Executive secures coverage from new employment, Executive shall receive a monthly cash payment equal to the cost of continuation coverage under the Company’s medical
and dental benefit plans in which the Executive was participating at the time of his termination of employment at the level at which the Executive was participating at the time of his termination of coverage (e.g. single or family coverage),
less the amount of the employee contribution for such coverage. Such payments shall be subject to all applicable taxes and withholding. 

In the event the Executive’s termination is pursuant to Section 4.2, payment shall be made to the Executive’s heirs, beneficiaries, or
personal representatives, as applicable. Further, any payments by the Company under Section 5.1(d) above pursuant to a termination under Section 4.2 or 4.3 shall be reduced by any payments received by the Executive pursuant to any of the
Company’s employee welfare benefit plans providing for payments in the event of death or Disability. 
 5.2
Termination for Cause; Voluntary Termination. If at any time during the Term the Executive’s employment with the Company is terminated by the Company for Cause or due to a Voluntary Termination, the Executive shall be entitled to only
the following: 

  
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 (a) any unpaid base salary and accrued unpaid vacation then owing through
the date of termination, which amounts shall be paid to the Executive within 30 days of the date of termination. 

(b) whatever rights, if any, that are available to the Executive upon such a termination pursuant to the Plans or any
award documents related to any stock-based compensation such as stock options, stock appreciation rights or restricted stock grants. This Agreement does not grant any greater rights with respect to such items than provided for in the Plans or the
award documents in the event of any termination for Cause or a Voluntary Termination. 
 5.3 Termination following
Change of Control. The Executive shall have no specific right to terminate this Agreement or right to any severance payments or other benefits solely as a result of a Change of Control or Potential Change of Control. However, if during a Change
of Control Period, (a) the Executive terminates his employment with the Company for Good Reason, or (b) the Company terminates the Executive’s employment without Cause, the lump sum severance payment under Section 5.1 shall be
increased from 100% of the Base Amount to 150% of the Base Amount and, for a termination of employment described in (a) and (b) during the Term, the period of monthly payment of COBRA continuation coverage for medical and dental benefits
shall be increased to 18 months from 12 months. The terms and rights with respect to such payments shall otherwise be governed by Section 5.1. No other rights result from termination during a Change of Control Period; provided,
however, that nothing in this Section 5.3 is intended to limit or impair the rights of the Executive under the Plans or any documents evidencing any stock-based compensation awards in the event of a Change of Control if such Plans or
award documents grant greater rights than are set forth herein. 
 5.4 Release. The
Company’s obligation to pay or provide any benefits to the Executive following termination (other than in the event of death pursuant to Section 4.2) is expressly subject to the requirement that (i) the Executive execute the release
in the form attached hereto as Exhibit A (the “Release”) prior to the 60th day following Executive’s termination of employment, and (ii) any revocation period for the Release shall have expired prior to the 60th day following Executive’s termination of employment without Executive having breached or revoked the Release. In
the event that the Executive does not sign the Release, or signs and later revokes the Release, all of the Company’s obligations to make payments and provide benefits under this Agreement will terminate in full, and the Executive understands
and agrees that he will not be entitled to any severance benefits in connection with his termination of employment. 
 5.5
Other Benefits. Except as expressly provided otherwise in this Article V, the provisions of this Agreement shall not affect the Executive’s participation in, or terminating distributions and vested rights under, any pension,
profit-sharing, insurance or other employee benefit plan of the Parent Group to which the Executive is entitled pursuant to the terms of such plans, or expense reimbursements he is otherwise entitled to under Section 3.5. 

  
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 5.6 No Mitigation. It will be difficult, and may be impossible, for the
Executive to find reasonably comparable employment following the termination of the Executive’s employment, and the protective provisions under Article VI contained herein will further limit the employment opportunities for the Executive. In
addition, the Company’s severance pay policy applicable in general to its salaried employees does not provide for mitigation, offset or reduction of any severance payment received thereunder. Accordingly, the parties hereto expressly agree that
the payment of severance compensation in accordance with the terms of this Agreement will be liquidated damages, and that the Executive shall not be required to seek other employment, or otherwise, to mitigate any payment provided for hereunder.

 5.7 Limitation; No Other Rights. Any amounts due or payable under this Article V are in the nature of severance
payments or liquidated damages, or both, and the Executive agrees that such amounts shall fully compensate the Executive, his dependents, heirs and beneficiaries and the estate of the Executive for any and all direct damages and consequential
damages that they do or may suffer as a result of the termination of the Executive’s employment, or both, and are not in the nature of a penalty. Notwithstanding the above, no member of the Parent Group shall be liable to the Executive under
any circumstances for any consequential, incidental, punitive or similar damages. The Executive expressly acknowledges that the payments and other rights under this Article V shall be the sole monies or other rights to which the Executive shall be
entitled to and such payments and rights will be in lieu of any other rights or remedies he might have or otherwise be entitled to. In the event of any termination under this Article V, the Executive hereby expressly waives any rights to any other
amounts, benefits or other rights, including without limitation whether arising under current or future compensation or severance or similar plans, agreements or arrangements of any member of the Parent Group (including as a result of changes in (or
of) control or similar transactions), unless Executive’s entitlement to participate or receive benefits thereunder has been expressly approved by the Board. Similarly, no one in the Parent Group shall have any further liability or obligation to
the Executive following the date of termination, except as expressly provided in this Agreement. 
 5.8 No Right to
Set Off. The Company shall not be entitled to set off against amounts payable to the Executive hereunder any amounts earned by the Executive in other employment, or otherwise, after termination of his employment with the Company, or any amounts
which might have been earned by the Executive in other employment had he sought such other employment. 
 5.9
Adjustments Due to Excise Tax. 
 (a) If it is determined that any amount or benefit to be paid or
payable to the Executive under this Agreement or otherwise in conjunction with his employment (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise in conjunction with his employment) would
give rise to liability of the Executive for the excise tax imposed by Section 

  
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4999 of the Code, as amended from time to time, or any successor provision (the “Excise Tax”), then the amount or benefits payable to the Executive (the total value of such
amounts or benefits, the “Payments”) shall be reduced by the Company so that no portion of the Payments to the Executive is subject to the Excise Tax. The Company shall reduce or eliminate the Payments by first reducing or
eliminating any cash payments (with the payments to be made furthest in the future being reduced first), then by reducing or eliminating any accelerated vesting of options, then by reducing or eliminating any accelerated vesting of restricted stock,
then by reducing or eliminating any other remaining Payments. Such reduction shall only be made if the net amount of the Payments, as so reduced (and after deduction of applicable federal, state, and local income and payroll taxes on such reduced
Payments other than the Excise Tax (collectively, the “Deductions”)) is greater than the excess of (1) the net amount of the Payments, without reduction (but after making the Deductions) over (2) the amount of Excise Tax
to which the Executive would be subject in respect of such Payments. 
 (b) In the event it is determined that
the Excise Tax may be imposed on the Executive prior to the possibility of any reductions being made pursuant to Section 5.9(a), the Company and the Executive agree to take such actions as they may mutually agree in writing to take to avoid any
such reductions being made or, if such reduction is not otherwise required by Section 5.9(a), to reduce the amount of Excise Tax imposed. 
 (c) The independent public accounting firm serving as the Company’s auditing firm, or such other accounting firm, law firm or professional consulting services provider of national reputation and
experience reasonably acceptable to the Company and Executive (the “Accountants”) shall make in writing in good faith all calculations and determinations under this Section 5.9, including the assumptions to be used in arriving
at any calculations. For purposes of making the calculations and determinations under this Section 5.9, the Accountants and each other party may make reasonable assumptions and approximations concerning the application of Section 280G and
Section 4999. The Company and Executive shall furnish to the Accountants and each other such information and documents as the Accountants and each other may reasonably request to make the calculations and determinations under this
Section 5.9. The Company shall bear all costs the Accountants incur in connection with any calculations contemplated hereby. 
 VI. PROTECTIVE PROVISIONS 
 6.1 Noncompetition. Without the
prior written consent of the Board (which may be withheld in the Board’s sole discretion), so long as the Executive is an employee of the Company or any other member of the Parent Group and for a twelve-month period thereafter, the Executive
agrees that he shall not anywhere in the Prohibited Area, for his own account or the benefit of any other, engage or participate in or assist or otherwise be 

  
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connected with a Competing Business. For the avoidance of doubt, the Executive understands that this Section 6.1 prohibits the Executive from acting for himself or as an officer, employee,
manager, operator, principal, owner, partner, shareholder, advisor, consultant of, or lender to, any individual or other Person that is engaged or participates in or carries out a Competing Business or is actively planning or preparing to enter into
a Competing Business. The parties agree that such prohibition shall not apply to the Executive’s passive ownership of not more than 5% of a publicly-traded company. 
 6.2 No Solicitation or Interference. So long as the Executive is an employee of the Company or any other member of the Parent Group (other than while an employee acting solely for the
express benefit of the Parent Group) and for a twelve-month period thereafter, the Executive shall not, whether for his own account or for the account or benefit of any other Person, throughout the Prohibited Area: 

(a) request, induce or attempt to influence (i) any customer of any member of the Parent Group to limit, curtail,
cancel or terminate any business it transacts with, or products or services it receives from or sells to, or (ii) any Person employed by (or otherwise engaged in providing services for or on behalf of) any member of the Parent Group to limit,
curtail, cancel or terminate any employment, consulting or other service arrangement, with any member of the Parent Group. Such prohibition shall expressly extend to any hiring or enticing away (or any attempt to hire or entice away) any employee or
consultant of the Parent Group. 
 (b) solicit from or sell to any customer any products or services that any
member of the Parent Group provides or is capable of providing to such customer and that are the same as or substantially similar to the products or services that any member of the Parent Group, sold or provided while the Executive was employed
with, or providing services to, any member of the Parent Group. 
 (c) contact or solicit any customer for the
purpose of discussing (i) services or products that are competitive with and the same or closely similar to those offered by any member of the Parent Group or (ii) any past or present business of any member of the Parent Group. 

(d) request, induce or attempt to influence any supplier, distributor or other Person with which any member of the Parent
Group has a business relationship or to limit, curtail, cancel or terminate any business it transacts with any member of the Parent Group. 
 (e) otherwise interfere with the relationship of any member of the Parent Group with any Person which is, or within one-year prior to the Executive’s date of termination was, doing business with,
employed by or otherwise engaged in performing services for, any member of the Parent Group. 

  
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 The twelve-month post-termination employment period described herein and in Section 6.1
shall be extended to eighteen months in the event of a termination described in Section 5.3. 
 6.3 Confidential
Information. During the period of the Executive’s employment with the Company or any member of the Parent Group and at all times thereafter, the Executive shall hold in secrecy for the Company all Confidential Information that may come to
his knowledge, may have come to his attention or may have come into his possession or control while employed by the Company (or otherwise performing services for any member of the Parent Group). Notwithstanding the preceding sentence, the Executive
shall not be required to maintain the confidentiality of any Confidential Information which (a) is or becomes available to the public or others in the industry generally (other than as a result of disclosure or inappropriate use, or caused, by
the Executive in violation of this Section 6.3) or (b) the Executive is compelled to disclose under any applicable laws, regulations or directives of any government agency, tribunal or authority having jurisdiction in the matter or under
subpoena. Except as expressly required in the performance of his duties to the Company under this Agreement, the Executive shall not use for his own benefit or disclose (or permit or cause the disclosure of) to any Person, directly or indirectly,
any Confidential Information unless such use or disclosure has been specifically authorized in writing by the Company in advance. During the Executive’s employment and as necessary to perform his duties under Section 1.2, the Company will
provide and grant the Executive access to the Confidential Information. The Executive recognizes that any Confidential Information is of a highly competitive value, will include Confidential Information not previously provided the Executive and that
the Confidential Information could be used to the competitive and financial detriment of any member of the Parent Group if misused or disclosed by the Executive. The Company promises to provide access to the Confidential Information only in exchange
for the Executive’s promises contained herein, expressly including the covenants in Sections 6.1, 6.2 and 6.4. 

6.4 Inventions. 
 (a) The Executive shall promptly and fully disclose to the Company any and all ideas, improvements, discoveries and inventions, whether or not they are believed to be patentable
(“Inventions”), that the Executive conceives of or first actually reduces to practice, either solely or jointly with others, during the Executive’s employment with the Company or any other member of the Parent Group, and that
relate to the business now or thereafter carried on or contemplated by any member of the Parent Group or that result from any work performed by the Executive for any member of the Parent Group. 

(b) The Executive acknowledges and agrees that all Inventions shall be the sole and exclusive property of the Company (or
member of the Parent Group) and are hereby assigned to the Company (or applicable member of the Parent Group). During the term of the Executive’s employment with the Company (or any other member of the Parent Group) and thereafter, whenever

  
 13 

 
requested to do so by the Company, the Executive shall take such action as may be requested to execute and assign any and all applications, assignments and other instruments that the Company
shall deem necessary or appropriate in order to apply for and obtain Letters Patent of the United States and/or of any foreign countries for such Inventions and in order to assign and convey to the Company (or any other member of the Parent Group)
or their nominees the sole and exclusive right, title and interest in and to such Inventions. 
 (c) The Company
acknowledges and agrees that the provisions of this Section 6.4 do not apply to an Invention: (i) for which no equipment, supplies, or facility of any member of the Parent Group or Confidential Information was used; (ii) that was
developed entirely on the Executive’s own time and does not involve the use of Confidential Information; (iii) that does not relate directly to the business of any member of the Parent Group or to the actual or demonstrably anticipated
research or development of any member of the Parent Group; and (iv) that does not result from any work performed by the Executive for any member of the Parent Group. 
 6.5 Return of Documents and Property. Upon termination of the Executive’s employment for any reason, the Executive (or his heirs or personal representatives) shall immediately deliver
to the Company (a) all documents and materials containing Confidential Information (including without limitation any “soft” copies or computerized or electronic versions thereof) or otherwise containing information relating to the
business and affairs of any member of the Parent Group (whether or not confidential), and (b) all other documents, materials and other property belonging to any member of the Parent Group that are in the possession or under the control of the
Executive. 
 6.6 Reasonableness; Remedies. The Executive acknowledges that each of the restrictions set forth in
this Article VI are reasonable and necessary for the protection of the Company’s business and opportunities (and those of the Parent Group) and that a breach of any of the covenants contained in this Article VI would result in material
irreparable injury to the Company and the other members of the Parent Group for which there is no adequate remedy at law and that it will not be possible to measure damages for such injuries precisely. Accordingly, the Company and any member of the
Parent Group shall be entitled to the remedies of injunction and specific performance, or either of such remedies, as well as all other remedies to which any member of the Parent Group may be entitled, at law, in equity or otherwise, without the
need for the posting of a bond or by the posting of the minimum bond that may otherwise be required by law or court order. 

6.7 Extension; Survival. The Executive and the Company agree that the time periods identified in this Article VI will be
stayed, and the Company’s obligation to make any payments or provide any benefits under Article V shall be suspended, during the period of any breach or violation by the Executive of the covenants contained herein. The parties further agree
that this Article VI shall survive the termination or expiration of this Agreement for any reason. The Executive acknowledges that his agreement to each of the provisions of this Article VI is fundamental to the Company’s willingness to enter

  
 14 

 
into this Agreement and for it to provide for the severance and other benefits described in Article V, none of which the Company was required to do prior to the date hereof. Further, it is the
express intent and desire of the parties for each provision of this Article VI to be enforced to the fullest extent permitted by law. If any part of this Article VI, or any provision hereof, is deemed illegal, void, unenforceable or overly broad
(including as to time, scope and geography), the parties express desire is that such provision be reformed to the fullest extent possible to ensure its enforceability or if such reformation is deemed impossible then such provision shall be severed
from this Agreement, but the remainder of this Agreement (expressly including the other provisions of this Article VI) shall remain in full force and effect. 
 VII. MISCELLANEOUS 
 7.1 Notices. Any notice required or
permitted under this Agreement shall be given in writing and shall be deemed to have been effectively made or given if personally delivered, or if sent via U.S. mail or recognized overnight delivery service or sent via confirmed e-mail or facsimile
to the other party at its address set forth below in this Section 7.1, or at such other address as such party may designate by written notice to the other party hereto. Any effective notice hereunder shall be deemed given on the date personally
delivered, three business days after mailed via U.S. mail or one business day after it is sent via overnight delivery service or via confirmed e-mail or facsimile, as the case may be, to the following address: 

 

			
		  	If to the Company:
		
		  	Orthofix Inc.
		  	Attn: Executive Vice President and Chief Financial
		  	Officer
		  	 3451 Plano Pkwy
 Lewisville,
TX 75056

		  	Facsimile: 704-948-2690
		  	E-mail: RobertVaters@orthofix.com
		
		  	With a copy which shall not constitute notice to:
		
		  	Hogan Lovells US LLP
		  	555 Thirteenth Street, N.W.
		  	Washington, D.C. 20004
		  	Facsimile: (202) 637-5910
		  	Email: joseph.gilligan@hoganlovells.com
		
		  	If to the Executive:
		
		  	At the most recent address on file with the
		  	Company

  
 15 

 7.2 Legal Fees. 

(a) The Company shall pay all reasonable legal fees and expenses of the Executive’s counsel in connection with the
preparation and negotiation of this Agreement. 
 (b) The parties hereto agree that any dispute or controversy
arising under or in connection with this Agreement shall be resolved exclusively and finally by binding arbitration in Lewisville, Texas, 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. The Company shall be responsible for its own fees, costs and expenses and shall pay to the Executive an amount equal to all reasonable attorneys’ and related fees, costs and expenses
incurred by the Executive in connection with such arbitration if the arbitrator determines that the Executive prevailed on a material issue of the arbitration. If there is any dispute between the Company and the Executive as to the payment of such
fees and expenses, the arbitrator shall resolve such dispute, which resolution shall also be final and binding on the parties, and as to such dispute only the burden of proof shall be on the Company. 

7.3 Severability. If an arbitrator or a court of competent jurisdiction determines that any term or provision hereof is
void, invalid or otherwise unenforceable, (a) the remaining terms and provisions hereof shall be unimpaired and (b) such arbitrator or court shall replace such void, invalid or unenforceable term or provision with a term or provision that
is valid and enforceable and that comes closest to expressing the intention of the void, invalid or unenforceable term or provision. For the avoidance of doubt, the parties expressly intend that this provision extend to Article VI of this Agreement.

 7.4 Entire Agreement. This Agreement represents the entire agreement of the parties with respect to the subject
matter hereof and shall supersede any and all previous contracts, arrangements or understandings between the Company, the Parent and the Executive relating to the Executive’s employment by the Company. Nothing in this Agreement shall modify or
alter the Indemnity Agreement dated                     ,      2010, by and between Parent and the Executive (the
“Indemnity Agreement”) or alter or impair any of the Executive’s rights under the Plans or related award agreements. In the event of any conflict between this Agreement and any other agreement between the Executive and the
Company (or any other member of the Parent Group), this Agreement shall control. 
 7.5 Amendment;
Modification. Except for increases in Base Salary, and adjustments with respect to Incentive Compensation, made as provided in Article II, this Agreement may be amended at any time only by mutual written agreement of the Executive and the
Company; provided, however, that, notwithstanding any other provision of this Agreement, the Plans (or any award documents under the Plans) or the Indemnity Agreement, the Company may reform this Agreement, the Plans (or any award

  
 16 

 
documents under the Plans), the Indemnity Agreement or any provision thereof (including, without limitation, an amendment instituting a six-month waiting period before a distribution) or
otherwise as contemplated by Section 7.16 below. 
 7.6 Withholding. The Company shall be entitled to
withhold, deduct or collect or cause to be withheld, deducted or collected from payment any amount of withholding taxes required by law, statutory deductions or collections with respect to payments made to the Executive in connection with his
employment, termination (including Article V) or his rights hereunder, including as it relates to stock-based compensation. 

7.7 Representations. 
 (a) The Executive hereby represents and warrants to the Company that (i) the execution, delivery and performance of this Agreement by the Executive do not and shall not conflict with, breach, violate
or cause a default under any contract, agreement, instrument, order, judgment or decree to which the Executive is a party or by which he is bound, and (ii) upon the execution and delivery of this Agreement by the Company, this Agreement shall
be the valid and binding obligation of the Executive, enforceable in accordance with its terms. The Executive hereby acknowledges and represents that he has consulted with legal counsel regarding his rights and obligations under this Agreement and
that he fully understands the terms and conditions contained herein. 
 (b) The Company hereby represents and
warrants to the Executive that (i) the execution, delivery and performance of this Agreement by the Company do not and shall not conflict with, breach, violate or cause a default under any material contract, agreement, instrument, order,
judgment or decree to which the Company is a party or by which it is bound and (ii) upon the execution and delivery of this Agreement by the Executive, this Agreement shall be the valid and binding obligation of the Company, enforceable in
accordance with its terms. 
 7.8 Governing Law; Jurisdiction. This Agreement shall be construed, interpreted, and
governed in accordance with the laws of the State of Texas without regard to any provision of that State’s rules on the conflicts of law that might make applicable the law of a jurisdiction other than that of the State of Texas. Except as
otherwise provided in Section 7.2, all actions or proceedings arising out of this Agreement shall exclusively be heard and determined in state or federal courts in the State of Texas having appropriate jurisdiction. The parties expressly
consent to the exclusive jurisdiction of such courts in any such action or proceeding and waive any objection to venue laid therein or any claim for forum nonconveniens. 
 7.9 Successors. This Agreement shall be binding upon and inure to the benefit of, and shall be enforceable by the Executive, the Company, and their respective heirs, executors,
administrators, legal representatives, successors, and assigns. In the 

  
 17 

 
event of a Business Combination (as defined in clause (iii) of Change of Control), the provisions of this Agreement shall be binding upon and inure to the benefit of the parent or entity
resulting from such Business Combination or to which the assets shall be sold or transferred, which entity from and after the date of such Business Combination shall be deemed to be the Company for purposes of this Agreement. In the event of any
other assignment of this Agreement by the Company, the Company shall remain primarily liable for its obligations hereunder; provided, however, that if the Company is financially unable to meet its obligations hereunder, the Parent
shall assume responsibility for the Company’s obligations hereunder pursuant to the guaranty provision following the signature page hereof. The Executive expressly acknowledges that the Parent and other members of the Parent Group (and their
successors and assigns) are third party beneficiaries of this Agreement and may enforce this Agreement on behalf of themselves or the Company. Both parties agree that there are no third party beneficiaries to this Agreement other than as expressly
set forth in this Section 7.9. 
 7.10 Nonassignability. Neither this Agreement nor any right or interest
hereunder shall be assignable by the Executive, his beneficiaries, dependents or legal representatives without the Company’s prior written consent; provided, however, that nothing in this Section 7.10 shall preclude
(a) the Executive from designating a beneficiary to receive any benefit payable hereunder upon his death or (b) the executors, administrators or other legal representatives of the Executive or his estate from assigning any rights hereunder
to the Person(s) entitled thereto. 
 7.11 No Attachment. Except as required by law, no right to receive payments
under this Agreement shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge or hypothecation in favor of any third party, or to execution, attachment, levy or similar process or assignment by
operation of law in favor of any third party, and any attempt, voluntary or involuntary, to effect any such action shall be null, void and of no effect. 
 7.12 Waiver. No term or condition of this Agreement shall be deemed to have been waived, nor there be any estoppel against the enforcement of any provision of this Agreement, except by
written instrument of the party charged with such waiver or estoppel. No such written waiver shall be deemed a continuing waiver unless specifically stated therein, and each such waiver shall operate only as to the specific term or condition waived
and shall not constitute a waiver of such term or condition for the future or as to any act other than that specifically waived. 
 7.13 Construction. The headings of articles or sections herein are included solely for convenience of reference and shall not control the meaning or interpretation of any of the provisions
of this Agreement. References to days found herein shall be actual calendar days and not business days unless expressly provided otherwise. 
 7.14 Counterparts. This Agreement may be executed by any of the parties hereto in counterparts, each of which shall be deemed to be an original, but all such counterparts shall together
constitute one and the same instrument. 

  
 18 

 7.15 Effectiveness. This Agreement shall be effective as of the Effective Date
when signed by the Executive and the Company. 
 7.16 Code Section 409A. 

(a) It is the intent of the parties that payments and benefits under this Agreement comply with Section 409A and,
accordingly, to interpret, to the maximum extent permitted, this Agreement to be in compliance therewith. If the Executive notifies the Company in writing (with specificity as to the reason therefore) that the Executive believes that any provision
of this Agreement (or of any award of compensation, including equity compensation or benefits) would cause the Executive to incur any additional tax or interest under Section 409A and the Company concurs with such belief or the Company (without
any obligation whatsoever to do so) independently makes such determination, the parties shall, in good faith, reform such provision to try to comply with Code Section 409A through good faith modifications to the minimum extent reasonably
appropriate to conform with Code Section 409A. To the extent that any provision hereof is modified by the parties to try to comply with Code Section 409A, such modification shall be made in good faith and shall, to the maximum extent
reasonably possible, maintain the original intent of the applicable provision without violating the provisions of Code Section 409A. Notwithstanding the foregoing, the Company shall not be required to assume any economic burden in connection
therewith. 
 (b) If the Executive is deemed on the date of “separation from service” to be a
“specified employee” within the meaning of that term under Section 409A(a)(2)(B), then, with regard to any payment or the provision of any benefit that is specified as subject to this Section, such payment or benefit shall, if
required to avoid the imposition of additional tax or interest under Section 409A, be made or provided at the date which is the earlier of (A) the expiration of the six (6)-month period measured from the date of such “separation from
service” of the Executive, and (B) the date of the Executive’s death (the “Delay Period”). Upon the expiration of the Delay Period, all payments and benefits delayed pursuant to this Section 7.16 (whether they would
have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed to the Executive in a lump sum, and any remaining payments and benefits due under this Agreement shall be paid or provided in
accordance with the normal payment dates specified for them herein. If a payment is to be made promptly after a date, it shall be made within sixty (60) days thereafter. 

(c) Any expense reimbursement under this Agreement shall be made promptly upon Executive’s presentation to
the Company of evidence of the fees and expenses incurred by the Executive and in all events on or before the last day of the taxable year following the taxable year in which such expense was incurred by the Executive, and no such reimbursement or
the amount of expenses eligible for 

  
 19 

 
reimbursement in any taxable year shall in any way affect the expenses eligible for reimbursement in any other taxable year. 

7.17 Survival. As provided in Section 1.3 with respect to expiration of the Term, Articles VI and VII shall survive
the termination or expiration of this Agreement for any reason. 

  
 20 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective
Date. 
  

					
	ORTHOFIX INC.	 		 	EXECUTIVE
			
	/s/ Alan W. Milinazzo	 		 	/s/ Jeffrey M. Schumm
	Name: Alan W. Milinazzo	 		 	Jeffrey M. Schumm, an individual
	Title: Chief Executive Officer	 		 	

 Guaranty by Parent 
 Parent (Orthofix International N.V.) is not a party to this Agreement, but joins in this Agreement for the sole purpose of guaranteeing the obligations of the Company to pay, provide, or reimburse the
Executive for all cash or other benefits provided for in this Agreement, including the provision of all benefits in the form of, or related to, securities of Parent and to elect or appoint Executive to the positions with Parent and provide Executive
with the authority relating thereto as contemplated by Section 1.1 of this Agreement, and to ensure the Board will take the actions required of it hereby. 
  

	
	ORTHOFIX INTERNATIONAL N.V.
	
	/s/ Alan W. Milinazzo
	Name: Alan W. Milinazzo
	Title: Chief Executive Officer

  
 21 

 EXHIBIT A 

Definitions 
 For purposes of this Agreement, the following capitalized terms have the meanings set forth below: 
 “Base Amount” shall mean an amount equal to the sum of: 

(i) the Executive’s annual base salary at the highest annual rate in effect at any time during the Term; and 

(ii) the lower of (i) the Executive’s target bonus under Section 2.3 in effect during the fiscal year in which termination
of employment occurs, or (ii) the average of the Incentive Compensation (as defined in Section 2.3) actually earned by the Executive (A) with respect to the two consecutive annual Incentive Compensation periods ending immediately
prior to the year in which termination of the Executive’s employment with the Company occurs (provided, however, that for purposes of the 2008 and 2009 calendar years, Executive shall be deemed for purposes of this clause (A) to have
earned an amount equal to Executive’s target bonus for the 2010 calendar year) or, (B) if greater, with respect to the two consecutive annual Incentive Compensation periods ending immediately prior to the Change of Control Date or the
Potential Change of Control Date; provided, however, that if the Executive was not eligible for Incentive Compensation for such two consecutive Incentive Compensation periods, the amount included pursuant to this clause (ii) shall
be the Incentive Compensation paid to the Executive for the most recent annual Incentive Compensation Period. In the event the Incentive Compensation paid to the Executive for any such prior Incentive Compensation period represented a pro rated
full-year amount because the Executive was not employed by the Company for the entire Incentive Compensation period, the Incentive Compensation paid to the Executive for such period for purposes of this clause (ii) shall be an amount equal to
such pro-rated full-year amount. 
 “Board” shall mean the Board of Directors of Parent. Any obligation
of the Board other than termination for Cause under this Agreement may be delegated to an appropriate committee of the Board, including its compensation committee, and references to the Board herein shall be references to any such committee, as
appropriate. 
 “Cause” shall mean termination of the Executive’s employment because of the
Executive’s: (i) involvement in fraud, misappropriation or embezzlement related to the business or property of the Company; (ii) conviction for, or guilty plea to, or plea of nolo contendere to, a felony or crime of similar gravity in
the jurisdiction in which such conviction or guilty plea occurs; (iii) intentional wrongful disclosure of Confidential Information or other intentional wrongful violation of Article VI; (iv) willful and continued failure by the Executive
to follow the reasonable instructions of the Board or Chief Executive Officer; (v) willful commission by the Executive of acts that are dishonest and demonstrably and materially injurious to a member of the Parent Group,

  
 22 

 
monetarily or otherwise; (vi) willful or material violation of, or willful or material noncompliance with, any securities law, rule or regulation or stock exchange listing rule adversely
affecting the Parent Group including without limitation (a) if the Executive has undertaken to provide any certification or related back-up material required for the chief and principal executive and financial officers to provide a
certification required under the Sarbanes-Oxley Act of 2002, including the rules and regulations promulgated thereunder (the “Sarbanes-Oxley Act”), and he willfully or materially fails to take reasonable and appropriate steps to
determine whether or not the certificate or related back-up material was accurate or otherwise in compliance with the requirements of the Sarbanes-Oxley Act or (b) the Executive’s willful or material failure to establish and administer
effective systems and controls applicable to his area of responsibility necessary for the Parent to timely and accurately file reports pursuant to Section 13 or 15(d) of the Exchange Act. No act or omission shall be deemed willful or material
for purposes of this definition if taken or omitted to be taken by Executive in a good faith belief that such act or omission to act was in the best interests of the Parent Group or if done at the express direction of the Board. 

“Change of Control” shall occur upon any of the following events: 

(i) the acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
Exchange Act) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act), in any individual transaction or series of related transactions, of 50% or more of either (A) the then outstanding shares of common
stock of Parent (the “Outstanding Common Stock”) or (B) the combined voting power of the then outstanding voting securities of Parent entitled to vote generally in the election of directors (the “Outstanding Voting
Securities”); excluding, however, the following: (1) any acquisition directly from Parent, other than an acquisition by virtue of the exercise of a conversion privilege unless the security being so converted was itself
acquired directly from Parent; (2) any acquisition by Parent; (3) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by Parent or any entity controlled by Parent; or (4) any acquisition pursuant to
a transaction which complies with clauses (A), (B) and (C) of subsection (iii) of this definition of Change of Control; 
 (ii) a change in the composition of the Board such that the individuals who as of the Effective Date constitute the Board (the “Incumbent Board”) cease for any reason to constitute at
least a majority of the Board; provided, however, for purposes of this paragraph, that any individual who becomes a member of the Board subsequent to the Effective Date, whose appointment, election, or nomination for election by
Parent’s shareholders was approved by a vote of at least a majority of those individuals who are members of the Board and who were also members of the Incumbent Board (or deemed to be such pursuant to this proviso) shall be considered as though
such individual were a member of the Incumbent Board; but provided further that any such individual whose initial assumption of office occurs as a result of either an actual or threatened election

  
 23 

 
contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person
other than the Board shall not be so considered as a member of the Incumbent Board; 
 (iii) consummation of a
reorganization, merger, consolidation or other business combination or the sale or other disposition of all or substantially all of the assets of Parent (including assets that are shares held by Parent in its subsidiaries) (any such transaction, a
“Business Combination”); expressly excluding, however, any such Business Combination pursuant to which all of the following conditions are met: (A) all or substantially all of the Person(s) who are the beneficial
owners of the Outstanding Common Stock and Outstanding Voting Securities, respectively, immediately prior to such Business Combination will beneficially own, directly or indirectly, more than 50% of, respectively, the outstanding shares of common
stock, and the combined voting power of the outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the entity resulting from such Business Combination (including, without limitation, an entity
which as a result of such transaction owns Parent or all or substantially all of Parent’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business
Combination, of the Outstanding Common Stock and Outstanding Voting Securities, as the case may be, (B) no Person (other than Parent, any employee benefit plan (or related trust) of Parent or such entity resulting from such Business
Combination) will beneficially own, directly or indirectly, 50% or more of, respectively, the outstanding shares of common stock of the entity resulting from such Business Combination or the combined voting power of the outstanding voting securities
of such entity entitled to vote generally in the election of directors except to the extent that such ownership existed prior to the Business Combination, and (C) individuals who were members of the Incumbent Board will constitute at least a
majority of the members of the board of directors of the entity resulting from such Business Combination; 
 (iv)
the approval by the shareholders of Parent of a complete liquidation or dissolution of Parent; 
 (v) the Parent
Group (or any of them) shall sell or dispose of, in a single transaction or series of related transactions, business operations that generated two-thirds of the consolidated revenues of the Parent Group (determined on the basis of Parent’s four
most recently completed fiscal quarters for which reports have been filed under the Exchange Act) and such disposal shall not be exempted pursuant to clause (iii) of this definition of Change of Control; 

(vi) Parent files a report or proxy statement with the Securities and Exchange Commission pursuant to the Exchange Act
disclosing in response to Form 8-K or Schedule 14A (or any successor schedule, form or report or item therein) that a change of control of Parent has or may have occurred or will or 

  
 24 

 
may occur in the future pursuant to any then-existing agreement or transaction; notwithstanding the foregoing, unless determined in a specific case by a majority vote of the Board, a
“Change of Control” shall not be deemed to have occurred solely because: (A) an entity in which Parent directly or indirectly beneficially owns 50% or more of the voting securities, or any Parent-sponsored employee stock
ownership plan, or any other employee plan of Parent or the Company, either files or becomes obligated to file a report or a proxy statement under or in response to Schedule 13D, Schedule 14D-1, Form 8-K or Schedule 14A (or any successor schedule,
form or report or item therein) under the Exchange Act, disclosing beneficial ownership by form or report or item therein, disclosing beneficial ownership by it of shares of stock of Parent, or because Parent reports that a change of control of
Parent has or may have occurred or will or may occur in the future by reason of such beneficial ownership or (B) any Parent-sponsored employee stock ownership plan, or any other employee plan of Parent or the Company, either files or becomes
obligated to file a report or a proxy statement under or in response to Schedule 13D, Schedule 14D-1, Form 8-K or Schedule 14A (or any successor schedule, form or report or item therein) under the Exchange Act, disclosing beneficial ownership by
form or report or item therein, disclosing beneficial ownership by it of shares of stock of Parent, or because Parent reports that a change of control of Parent has or may have occurred or will or may occur in the future by reason of such beneficial
ownership; or 
 (vii) any other transaction or series of related transactions occur that have substantially the
effect of the transactions specified in any of the preceding clauses in this definition. 
 Notwithstanding the above definition of Change of
Control, the Board, in its sole discretion, may determine that a Change of Control has occurred for purposes of this Agreement, even if the events giving rise to such Change of Control are not expressly described in the above definition. 

“Change of Control Date” shall mean the date on which a Change of Control occurs. 

“Change of Control Period” shall mean the 24 month period commencing on the Change of Control Date;
provided, however, if the Company terminates the Executive’s employment with the Company prior to the Change of Control Date but on or after a Potential Change of Control Date, and it is reasonably demonstrated that the
Executive’s (i) employment was terminated at the request of an unaffiliated third party who has taken steps reasonably calculated to effect a Change of Control or (ii) termination of employment otherwise arose in connection with or in
anticipation of the Change of Control, then the “Change of Control Period” shall mean the 24 month period beginning on the date immediately prior to the date of the Executive’s termination of employment with the Company.

 “Code” shall mean the Internal Revenue Code of 1986, as amended. 

  
 25 

 “Competing Business” means any business or activity that
(i) competes with any member of the Parent Group for which the Executive performed services or the Executive was involved in for purposes of making strategic or other material business decisions and involves (ii) (A) the same or
substantially similar types of products or services (individually or collectively) manufactured, marketed or sold by any member of the Parent Group during Term or (B) products or services so similar in nature to that of any member of the Parent
Group during Term (or that any member of the Parent Group will soon thereafter offer) that they would be reasonably likely to displace substantial business opportunities or customers of the Parent Group. 

“Confidential Information” shall include Trade Secrets and includes information acquired by the Executive in the
course and scope of his activities under this Agreement, including information acquired from third parties, that (i) is not generally known or disseminated outside the Parent Group (such as non-public information), (ii) is designated or
marked by any member of the Parent Group as “confidential” or reasonably should be considered confidential or proprietary, or (iii) any member of the Parent Group indicates through its policies, procedures, or other instructions
should not be disclosed to anyone outside the Parent Group. Without limiting the foregoing definitions, some examples of Confidential Information under this Agreement include (a) matters of a technical nature, such as scientific, trade or
engineering secrets, “know-how”, formulae, secret processes, inventions, and research and development plans or projects regarding existing and prospective customers and products or services, (b) information about costs, profits,
markets, sales, customer lists, customer needs, customer preferences and customer purchasing histories, supplier lists, internal financial data, personnel evaluations, non-public information about medical devices or products of any member of the
Parent Group (including future plans about them), information and material provided by third parties in confidence and/or with nondisclosure restrictions, computer access passwords, and internal market studies or surveys and (c) and any other
information or matters of a similar nature. 
 “Disability” as used in this Agreement shall have the
meaning given that term by any disability insurance the Company carries at the time of termination that would apply to the Executive. Otherwise, the term “Disability” shall mean the inability of the Executive to perform his duties
and responsibilities under this Agreement as a result of a physical or mental illness, disease or personal injury he has incurred. Any dispute as to whether or not the Executive has a “Disability” for purposes of this Agreement
shall be resolved by a physician reasonably satisfactory to the Board and the Executive (or his legal representative, if applicable). If the Board and the Executive (or his legal representative, if applicable) are unable to agree on a physician,
then each shall select one physician and those two physicians shall pick a third physician and the determination of such third physician shall be binding on the parties. 
 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 

  
 26 

 “Good Reason” shall mean the occurrence of any of the following
without the written consent of the Executive: (1) the assignment to the Executive of any duties materially inconsistent in any respect with the Executive’s position (including status, offices, titles and reporting requirements), authority,
duties or responsibilities as contemplated by Section 1 of this Agreement, or any other action by the Company which results in a material diminution in such position, authority, duties or responsibilities, excluding for this purpose an
isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by the Company promptly after receipt of notice thereof given by the Executive; (2) the Company’s material reduction of the Executive’s Base
Salary or bonus opportunity, each as in effect on the date hereof or as the same may be increased from time to time; (3) except as described in Section 1.4, the relocation of the Company’s offices at which the Executive is principally
employed (the “Principal Location”) to a location more than thirty (30) miles from such location, or the Company’s requiring the Executive to be based at a location more than thirty (30) miles from the Principal Location,
except for required travel on the Company’s business to an extent substantially consistent with the Executive’s present business travel obligations; (4) the Company’s failure to obtain a satisfactory agreement from any successor
entity to assume and agree to perform this Agreement; or (5) any material breach of this Agreement or any other material agreement with the Executive by the Company or any successor entity. 

“Parent” shall mean Orthofix International N.V., an entity organized under the laws of the Netherlands Antilles.

 “Parent Group” shall mean Parent, together with its subsidiaries including the Company. 

“Person” shall include individuals or entities such as corporations, partnerships, companies, firms, business
organizations or enterprises, and governmental or quasi-governmental bodies. 
 “Potential Change of
Control” shall mean the earliest to occur of: (i) the date on which Parent executes an agreement or letter of intent, the consummation of the transactions described in which would result in the occurrence of a Change of Control or
(ii) the date on which the Board approves a transaction or series of transactions, the consummation of which would result in a Change of Control, and ending when, in the opinion of the Board, the Parent (or the Company) or the respective third
party has abandoned or terminated any Potential Change of Control. 
 “Potential Change of Control Date”
shall mean the date on which a Potential Change of Control occurs; provided, however, such date shall become null and void when, in the opinion of the Board, the Parent (or the Company) or the respective third party has abandoned or
terminated any Potential Change of Control. 
 “Prohibited Area” means North America, South America and
the European Union, which Prohibited Area the parties have agreed to as a result of the fact that those are the geographic areas in which the members of the Parent Group conduct a 

  
 27 

 
preponderance of their business and in which the Executive provides substantive services to the benefit of the Parent Group. 

“Section 409A” shall mean Section 409A of the Code and regulations promulgated thereunder (and any similar
or successor federal or state statute or regulations). 
 “Trade Secrets” are information of special
value, not generally known to the public that any member of the Parent Group has taken steps to maintain as secret from Persons other than those selected by any member of the Parent Group. 

  
 28 

 EXHIBIT A 
 RELEASE 
 In exchange for the consideration set forth in the Employment
Agreement, dated as of December 6, 2010, by and among Orthofix Inc. (the “Company”) and myself (the “Employment Agreement”), the respective terms of which are incorporated herein by reference, I, Jeffrey M.
Schumm, am entering into this Release (this “Release”) for good and valuable consideration as required by the Employment Agreement, and agree as follows: 
 1. GENERAL RELEASE. 
 (a) On behalf of myself, my heirs, executors, successors and
assigns, I irrevocably and unconditionally release, waive and forever discharge the Company, its members, divisions, subsidiaries, affiliates and related companies, including the Company Group (as defined below), or any member of the Company Group,
and their present and former agents, employees, officers, directors, attorneys, stockholders, plan fiduciaries, successors and assigns (collectively, the “Releasees”), from any and all claims, demands, actions, causes of action,
costs, fees and all liability whatsoever, whether known or unknown, fixed or contingent, suspected or unsuspected (collectively, “Claims”), which I had, have, or may have against Releasees relating to or arising out of my employment
by or separation from the Company and its direct and indirect subsidiaries and parents, including, without limitation, Orthofix International N.V. (collectively, the “Company Group”), up to and including the date of execution of
this Release, other than my right to receive the severance payments and other benefits and consideration described in the Employment Agreement. This Release includes, without limitation: (i) claims at law or equity or sounding in contract
(express or implied) or tort; (ii) claims arising under any federal, state or local laws of any jurisdiction that prohibit age, sex, race, national origin, color, disability, religion, veteran or military status, sexual orientation or any other
form of discrimination, harassment or retaliation (including, without limitation, the Civil Rights Act of 1866, the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, the Americans with Disabilities Act, Title VII of the
1964 Civil Rights Act, the Civil Rights Act of 1991, the Rehabilitation Act, the Family and Medical Leave Act, the Sarbanes-Oxley Act, the Employee Polygraph Protection Act, the Uniformed Services Employment and Reemployment Rights Act of 1994, the
Unruh Civil Rights Act, or any other federal, state or local laws, regulations and ordinances governing discrimination, harassment or retaliation in employment; and the right to bring demands, complaints, causes of action, and claims under any other
federal, state, local or common law, statute, regulation or decision); (iii) claims arising under the Employee Retirement Income Security Act; or (iv) any other statutory or common law claims related to my employment with the Company or my
separation from the Company. I further covenant not to sue any of the Releasees with respect to any matters released hereby. 

  
 29 

 (b) This release does not include a release or waiver of any rights or claims I have, or
might subsequently have in my capacity as a stockholder of Orthofix International N.V. In addition, this Release shall not release the Company from its continuing obligation to honor the terms of the Employment Agreement. However, this Release shall
remain in full force and effect regardless of any claim by me that the Company failed to honor the terms of the Employment Agreement. In the event of any such dispute, my sole remedy against the Company shall be to enforce the terms of the
Employment Agreement. I am also not waiving, and nothing in this Release is intended to waive, any right to coverage under any directors and officers insurance coverage, if any, provided by the Company, the Company Group, or any member of the
Company Group, to which I might be entitled. I am also not waiving, and nothing in this Release is intended to waive any claims I may have for unemployment insurance or workers’ compensation benefits, state disability compensation, claims for
any vested benefits under any Company-sponsored benefit plan, or any claims that, as a matter of law, may not be released by private agreement. I am also not waiving, and nothing in this Release is intended to waive, any claims relating to the
validity or enforceability of this Release; or any non-waivable right to file a charge with the United States Equal Employment Opportunity Commission (the “EEOC”) or the National Labor Relations Board (“NLRB”);
provided, however, that I shall not be entitled to recover any monetary damages or to non-monetary relief if the EEOC or NLRB were to pursue any claims relating to my employment with the Company. 

EXCEPT AS OUTLINED ABOVE, THIS MEANS THAT, BY SIGNING THIS RELEASE, I WILL WAIVE ANY RIGHT I MAY HAVE HAD TO PURSUE OR BRING A LAWSUIT OR MAKE ANY LEGAL
CLAIM AGAINST THE COMPANY OR THE RELEASEES THAT IN ANY WAY ARISES FROM OR RELATES TO MY EMPLOYMENT OR THE TERMINATION OF THAT EMPLOYMENT, UP TO AND INCLUDING THE DATE OF THE EXECUTION OF THIS RELEASE. 

(c) I acknowledge that different or additional facts may be discovered in addition to what I now know or believe to be true with respect
to the matters herein released, and I agree that this Release shall be and remain in effect in all respects as a complete and final release of the matters released, notwithstanding any such different or additional facts. I represent and warrant that
I have not previously filed or joined in any claims against the Company or any of the Releasees, that I have not given or sold any portion of any claims released herein to anyone else, and that I will indemnify and hold harmless the Releasees from
all liabilities, claims, demands, costs, expenses and/or attorneys’ fees incurred as a result of any such assignment or transfer. 
 (d) I acknowledge that I have been given an opportunity of twenty-one (21) days to consider this Release, but I may voluntarily waive that period by signing it earlier, and I acknowledge that I am
being advised herein to consult with legal counsel of my own choosing prior to executing this Release. I understand that for a period ending at the end of the seventh calendar day following my execution of this Release (“Revocation
Period”), I shall have the right to revoke this Release by delivering a written notice of revocation to Robert S. Vaters, Orthofix Inc., Chief Financial Officer, 800 Boylston 

  
 30 

 
Street, 15th Floor, The PRU Tower, Boston, MA 02199 no later than the end of the seventh calendar day after I sign this Release. I understand and agree that this Release will not be effective and
enforceable until after the Revocation Period expires without revocation, and if I elect to exercise this revocation right, this Release shall be voided in its entirety, and the Company shall be relieved of all obligations under this Release and all
obligations under the Employment Agreement as provided therein. This Release shall be effective on the eighth calendar day after it is executed by me (“Effective Date”) provided it has not been previously revoked as provided herein.

 2. I agree to keep this Release and its terms completely confidential; however, I may disclose the terms of this Release to
my spouse, accountants, tax advisors, attorneys, or as otherwise required by law. I agree not to disclose, publish or use any confidential information of the Company Group, except as the Company directs or authorizes unless required by law to do so.
I also agree that I will take all reasonable measures to protect the secrecy of and avoid disclosure and unauthorized use of confidential information of the Company Group, and I will immediately notify the Company in the event of any unauthorized
use or disclosure of the Company Group’s confidential information of which I become aware. I agree that the obligations set forth in this paragraph do not supersede, but are in addition to, any previous confidentiality obligations agreed to by
me and any member of the Company Group. The confidentiality provisions set forth in this Release are contractual and their terms are material to this Release. 
 3. I agree that I have not made and shall not make, publicly or privately, any critical or negative comments to the media or any significant critical or negative comments to any other person (including
future or prospective employees) regarding any of the Releasees. 
 4. I understand it is my choice whether or not to enter into
this Release and that my decision to do so is voluntary and is made knowingly. 
 5. I represent and acknowledge that in
executing this Release, I do not rely, and have not relied, on any communications, statements, inducements or representations, oral or written, by any of the Releasees, except as expressly contained in this Release. 

6. I also represent and warrant that, as of the date hereof, I have delivered to the Company (a) all documents and materials
containing confidential information (including without limitation any “soft” copies or computerized or electronic versions thereof) or otherwise containing information relating to the business and affairs of any member of the Company Group
(whether or not confidential), and (b) all other documents, materials and other property belonging to any member of the Company Group that are or were in my possession or under my control. 

7. The Company and I agree that this Release shall be binding on us and our heirs, administrators, representatives, executors, successors
and assigns, and shall inure to the benefit of our heirs, administrators, representatives, executors, successors and assigns. 

  
 31 

 8. This Release shall be interpreted under and governed by the laws of the State of
                    . The Company and I agree that the language of this Release shall in all cases be construed as a whole, according to its
fair meaning, and not strictly for or against either party. 
 9 The Company and I agree that should that any provision of this
Release be determined to be illegal or invalid, the validity of the remaining provisions will not be affected and any illegal or invalid provision will be deemed not to be a part of this Release. 

10. The Company and I agree that this Release may be executed in any number of counterparts, each of which shall be deemed an original,
but all of which together shall be deemed one and the same instrument. 
 (Remainder of this page intentionally left
blank) 
 Please read carefully as this document includes a General Release of claims. 

As evidenced by my signature below, I certify that I have read the above Release and agree to its terms. 

 

			
	  	 	  
	Jeffrey M. Schumm
		
	Date:	 	 

  

			
	Accepted and Acknowledged:
	
	ORTHOFIX INC.
		
	By:	 	  
		
	Title:	 	  
		
	Date:	 	  

  
 32Notice of Option Grant

 Exhibit 10.1 
 Nonqualified Stock Option Award Agreement—Schedule A 
 Notice of
Option Grant 
  

	 Participant: 
	[•] 

  

	 Company:  
	Golfsmith International Holdings, Inc. 

  

	 Notice:  
	You have been granted the following Nonqualified Stock Option to purchase Shares in accordance with the terms of the Plan and the Nonqualified Stock Option Award Agreement attached hereto.

  

	 Plan:  
	Golfsmith International Holdings, Inc. 2006 Incentive Compensation Plan 

  

	 Grant:  
	Date of Grant: February 25, 2011 

 Option Price per Share:
$4.16 
 Number of Shares under Option: [•] 

 

	 Exercisability:  
	Subject to the terms of the Plan and this Agreement, your Option may be exercised on and after the dates indicated below as to the number of Shares set forth below opposite each such date, plus
any Shares as to which your Option could have been exercised previously but was not so exercised. 

  

			
	 Shares
	  	Date
	 [•]
	  	February 25, 2012
	 [•]
	  	February 25, 2013
	 [•]
	  	February 25, 2014
	 [•]
	  	February 25, 2015
	 [•]
	  	February 25, 2016

  

	 Expiration Date:  
	Your Option will expire ten years from the Date of Grant, subject to earlier termination as set forth in the Plan and this Agreement. 

 

	 Rejection:  
	If you do not want to accept your Option, please return this Agreement, executed by you on the last page of this Agreement, at any time within ninety (90) days after the Date of Grant to
Golfsmith International Holdings, Inc. 11000 N. IH-35, Austin, TX 78753. Do not return a signed copy of this Agreement if you accept your Option. If you do not return a signed copy of this Agreement within ninety (90) days after the Date of
Grant, you will have accepted your Option and agreed to the terms and conditions set forth in this Agreement and the terms and conditions of the Plan. 

 Nonqualified Stock Option Award Agreement 

This Nonqualified Stock Option Award Agreement (this “Agreement”) dated as of the Date of Grant (the “Date of Grant”)
set forth in the Notice of Option Grant attached as Schedule A hereto (the “Grant Notice”) is made between Golfsmith International Holdings, Inc. (the “Company”) and the Participant set forth in the Grant Notice. The Grant Notice
is included in and made part of this Agreement. 
 1. Definitions. 

(a) Capitalized terms used but not defined herein have the meaning set forth in the Golfsmith International Holdings, Inc. 2006 Incentive
Compensation Plan (the “Plan”). 
 (b) Disability. Disability shall have the meaning contained in
Participant’s employment agreement, if applicable. If no such employment agreement exists, Participant’s employment with Golfsmith, a Subsidiary, or an Affiliate shall be treated as terminating by reason of a “Disability” if the
Committee determines that his or her employment terminated because he or she no longer was able to perform the essential functions of his or her job as a result of a physical or mental illness even with reasonable accommodation by Golfsmith or a
Subsidiary, or an Affiliate. 
 (d) Retirement. Participant’s employment shall be treated as terminating by reason
of Retirement if his or her employment with Golfsmith, a Subsidiary, or an Affiliate terminates for any reason other than Cause on or after the date he or she reaches at least age 60. 

2. Grant of the Option. 
 Subject to the provisions of this Agreement and the provisions of the Plan, the Company hereby grants to the Participant, pursuant to the Plan, the right and option (the “Option”) to purchase
all or any part of the number of shares of common stock of the Company, par value $0.001 per share (“Shares”), as set forth in the Grant Notice at an Option Price (“Option Price”) per Share and on the other terms as set forth in
the Grant Notice. 
 3. Exercisability of the Option. 

The Option shall vest and become exercisable in accordance with the exercisability schedule and other terms set forth in the Grant
Notice. The Option shall terminate on the Expiration Date (the “Expiration Date”) set forth in the Grant Notice, subject to earlier termination as set forth in the Plan and this Agreement. 

4. Method of Exercise of the Option. 
 (a) The Participant may exercise the Option, to the extent then exercisable, by delivering a written notice to the Company in a form specified or accepted by the Company, specifying the number of Shares
with respect to which the Option is being exercised. Such notice must be signed by the Participant or any other person then having the right to exercise the Option. 
 (b) At the time the Participant exercises the Option, the Participant shall pay the Option Price of the Shares as to which the Option is being exercised to the Company (i) in United States dollars by
personal check, bank draft or money order; (ii) subject to such terms, conditions and limitations as the Committee may prescribe, by tendering (either by actual delivery or attestation) unencumbered Shares previously acquired by the Participant
having an aggregate Fair Market Value at the time of exercise equal to the total Option Price of the Shares for which the Option is so exercised; (iii) subject to such terms, conditions and limitations as the Committee may prescribe, a cashless
(broker-assisted) exercise that complies with all applicable laws; or (iv) by a combination of the consideration provided for in the foregoing clauses (i), (ii) and (iii). 

 5. Termination. 

The Option shall terminate upon the Participant’s Termination for any reason and no Shares may thereafter be purchased under the
Option except as provided below. Notwithstanding anything contained in this Agreement, the Option shall not be exercised after the Expiration Date. 
 (a) Termination without Cause or for Good Reason. If the Participant’s Termination is by the Company, a Subsidiary or an Affiliate without Cause or by the Participant for Good Reason or due to
the Participant’s Retirement, the Option, to the extent exercisable as of the date of such Termination, shall thereafter be exercisable for a period of three months from the date of such Termination. 

(b) Death and Disability. If the Participant’s Termination is due to the Participant’s death or Disability, the Option,
to the extent exercisable as of the date of such Termination, shall thereafter be exercisable until the one-year anniversary of the date of such Termination. 
 (d) Termination for Cause or without Good Reason. If the Participant’s Termination is by the Company, a Subsidiary or an Affiliate for Cause (even if on the date of such Termination the
Participant has met the definition of Retirement or Disability) or by the Participant without Good Reason, then the portion of the Option that has not been exercised shall immediately terminate. 

6. Transferability of the Option. 
 The Option shall not be transferable otherwise than by will or the laws of descent and distribution, and is exercisable, during the lifetime of the Optionee, only by him; provided that the Option
may be exercised after the Optionee’s death by the beneficiary most recently named by the Optionee in a written designation thereof filed by the Optionee with the Company, in accordance with the Plan. No transfer of the Option by will or the
laws of descent and distribution shall be effective to bind the Company unless the Committee is furnished with (a) written notice thereof and with a copy of the will and/or such evidence as the Committee may deem necessary to establish the
validity of the transfer and (b) an agreement by the transferee to comply with all the terms and conditions of the Option that are or would have been applicable to the Participant and to be bound by the acknowledgements made by the Participant
in connection with the grant of the Option. 
 7. Taxes and Withholdings. 

At the time of receipt of Shares upon the exercise of all or any part of the Option, the Participant shall pay to the Company in cash (or
make other arrangements, in accordance with Article XVI of the Plan, for the satisfaction of) any taxes of any kind required by law to be withheld with respect to such Shares; provided, however, that pursuant to any procedures, and
subject to any limitations as the Committee may prescribe and subject to applicable law, the Participant may elect to satisfy, in whole or in part, such withholding obligations by (a) directing the Company to withhold Shares otherwise
deliverable to the Participant pursuant to the Option (provided, however, that the amount of any Shares so withheld shall not exceed the amount necessary to satisfy required Federal, state, local and non-United States withholding obligations
using the minimum statutory withholding rates for Federal, state, local and/or non-U.S. tax purposes, including payroll taxes, that are applicable to supplemental taxable income) and/or (b) tendering to the Company Shares owned by the
Participant (or the Participant and the Participant’s spouse jointly) and held by the Participant (or by the Participant and the Participant’s spouse jointly) for not less than three months prior to the date of such tender based, in each
case, on the Fair Market Value of the Shares on the payment date as determined by the Committee. Any such election made by the Participant must be irrevocable, made in writing, signed by the Participant, and shall be subject to any restrictions or
limitations that the Committee, in its sole discretion, deems appropriate. 

 8. No Rights as a Shareholder. 

Neither the Participant nor any other person shall become the beneficial owner of the Shares subject to the Option, nor have any rights
to dividends or other rights as a shareholder with respect to any such Shares, until the Participant has actually received such Shares following the exercise of the Option in accordance with the terms of the Plan and this Agreement. 

9. No Right to Continued Employment. 
 Neither the Option nor any terms contained in this Agreement shall confer upon the Participant any express or implied right to be retained in the employment or service of the Company or any Subsidiary or
Affiliate for any period, nor restrict in any way the right of the Company or any Subsidiary or Affiliate, which right is hereby expressly reserved, to terminate the Participant’s employment or service at any time for any reason. The
Participant acknowledges and agrees that any right to exercise the Option is earned only by continuing as an employee of the Company or a Subsidiary or an Affiliate at the will of the Company or such Subsidiary or Affiliate, or satisfaction of any
other applicable terms and conditions contained in the Plan and this Agreement, and not through the act of being hired, being granted the Option or acquiring Shares hereunder. 
 10. The Plan. 
 In consideration for this grant, you agree to comply with
the terms of the Plan and this Agreement. This Agreement is subject to all the terms, provisions and conditions of the Plan, which are incorporated herein by reference, and to such regulations as may from time to time be adopted by the Committee. In
the event of any conflict between the provisions of the Plan and this Agreement, the provisions of the Plan shall control, and this Agreement shall be deemed to be modified accordingly. The Plan and the prospectus describing the Plan can be found on
the Company’s HR intranet. A paper copy of the Plan and the prospectus shall be provided to the Participant upon the Participant’s written request to the Company at Golfsmith International Holdings, Inc. 11000 N. IH-35, Austin, TX 78753.

 11. Compliance with Laws and Regulations. 
 (a) The Option and the obligation of the Company to sell and deliver Shares hereunder shall be subject in all respects to (i) all applicable Federal and state laws, rules and regulations and
(ii) any registration, qualification, approvals or other requirements imposed by any government or regulatory agency or body which the Committee shall, in its discretion, determine to be necessary or applicable. Moreover, the Option may not be
exercised if its exercise, or the receipt of Shares pursuant thereto, would be contrary to applicable law. If at any time the Company determines, in its discretion, that the listing, registration or qualification of Shares upon any national
securities exchange or under any state or Federal law, or the consent or approval of any governmental regulatory body, is necessary or desirable, the Company shall not be required to deliver any certificates for Shares to the Participant or any
other person pursuant to this Agreement unless and until such listing, registration, qualification, consent or approval has been effected or obtained, or otherwise provided for, free of any conditions not acceptable to the Company. 

(b) It is intended that the Shares received upon the exercise of the Option shall have been registered under the Securities Act. If the
Participant is an “affiliate” of the Company, as that term is defined in Rule 144 under the Securities Act (“Rule 144”), the Participant may not sell the Shares received except in compliance with Rule 144. Certificates
representing Shares issued to an “affiliate” of the Company may bear a legend setting forth such restrictions on the disposition or transfer of the Shares as the Company deems appropriate to comply with Federal and state securities laws.

 (c) If at the time of exercise of all or part of the Option, the Shares are not registered under the Securities Act, and/or
there is no current prospectus in effect under the Securities Act with respect to the Shares, the Participant shall execute, prior to the delivery of any Shares to the Participant by the Company pursuant to this Agreement, an agreement (in such form
as the Company may specify) in which the Participant represents and warrants that the Participant is purchasing or acquiring the shares acquired under this Agreement for the Participant’s own account, for investment only and not with a view to
the resale or distribution thereof, and represents and agrees 

 
that any subsequent offer for sale or distribution of any kind of such Shares shall be made only pursuant to either (i) a registration statement on an appropriate form under the Securities
Act, which registration statement has become effective and is current with regard to the Shares being offered or sold, or (ii) a specific exemption from the registration requirements of the Securities Act, but in claiming such exemption the
Participant shall, prior to any offer for sale of such Shares, obtain a prior favorable written opinion, in form and substance satisfactory to the Company, from counsel for or approved by the Company, as to the applicability of such exemption
thereto. 
 12. Notices. 
 All notices by the Participant or the Participant’s assignees shall be addressed to Golfsmith International Holdings, Inc. 11000 N. IH-35, Austin, TX 78753, or such other address as the Company may
from time to time specify. All notices to the Participant shall be addressed to the Participant at the Participant’s address in the Company’s records. 
 13. Other Plans. 
 The Participant acknowledges that any income derived
from the exercise of the Option shall not affect the Participant’s participation in, or benefits under, any other benefit plan or other contract or arrangement maintained by the Company or any Subsidiary or Affiliate. 

 

			
	GOLFSMITH INTERNATIONAL HOLDINGS, INC.
		
	 By:
	 	 
		
	 Printed:
	 	Robert Allen
		
	 Its:
	 	 Chairman, Compensation Committee
 Golfsmith International Holdings, Inc.
 Board of Directors

 

			
	I DO NOT accept this Option:
		
	 Signature:
	 	 
		
	 Printed Name:

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