Document:

ex10_2.htm

    
      

    

    
      Exhibit
        10.2

       

      POMEROY
        IT SOLUTIONS, INC.

       

      SPECIAL
        CHANGE IN CONTROL BONUS AGREEMENT

       

      This
        SPECIAL CHANGE IN CONTROL BONUS AGREEMENT (this “Agreement”) is made and entered
        into as of this 10th day of December, 2007, by and between Pomeroy IT Solutions,
        Inc., a Delaware corporation (the “Company”), and Christopher C. Froman, - SVP
        of Sales and Marketing (the “Employee”).

       

      WHEREAS,
        the Company and the Employee have agreed that it is in their respective best
        interests that (i) the ongoing services of the Employee be secured at this
        time;
        and (ii) the Employee fully devote his/her attention to maximizing the value
        of
        the Company and to managing the Company’s participation in any potential “Change
        in Control” relating to the Company.

       

      NOW,
        THEREFORE, for and in consideration of the premises and the mutual covenants
        and
        agreements herein contained, the Company and Employee hereby agree as
        follows:

       

      
        	
              	
                1.

              	
                Definitions.

              

      

       

      
        	
                 

              	
                (a)

              	
                For
                  purposes of this Agreement, “Change In Control”
                  shall mean the first to occur of any of the following
                  events:

              

      

       

      
        	
                 

              	
                (i)

              	
                any
                  “person” (as defined in Section 13(d) and 14(d) of the Securities Exchange
                  Act of 1934, as amended (the “Exchange Act”),
                  excluding for this purpose, (A) the Company or any subsidiary
                  of
                  the Company, or (B) any employee benefit plan of the Company or
                  any
                  subsidiary of the Company, or any person or entity organized, appointed
                  or
                  established by the Company for or pursuant to the terms of any
                  such plan,
                  which acquires beneficial ownership of voting securities of the
                  Company,
                  is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the
                  Exchange Act), directly or indirectly of securities of the Company
                  representing more than fifty percent (50%) of the combined voting
                  power of
                  the Company’s then outstanding securities; provided, however, that no
                  Change In Control will be deemed to have occurred as a result of
                  a change
                  in ownership percentage resulting solely from an acquisition of
                  securities
                  by the Company; or

              

      

       

      
        	
                 

              	
                (ii)

              	
                persons
                  who, as of the Effective Date constitute the Board (the “Incumbent
                  Directors”) cease for any reason, including
                  without limitation, as a result of a tender offer, proxy contest,
                  merger
                  or similar transaction, to constitute at least a majority thereof,
                  provided that any person becoming a director of the Company subsequent
                  to
                  the Effective Date shall be considered an Incumbent Director if
                  such
                  person’s election or nomination for election was approved by a vote of
                  at
                  least fifty percent (50%) of the Incumbent Directors; but provided
                  further, that any such person whose initial assumption of office
                  is in
                  connection with an actual or threatened election contest relating
                  to the
                  election of members of the Board or other actual or threatened
                  solicitation of proxies or consents by or on behalf of a “person” (as
                  defined in Section 13(d) and 14(d) of the Exchange Act) other than
                  the
                  Board, including by reason of agreement intended to avoid or settle
                  any
                  such actual or threatened contest or solicitation, shall not be
                  considered
                  an Incumbent Director; or

              

        
          
            
            

          

          
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                (iii)

              	
                consummation
                  of a reorganization, merger or consolidation or sale or other disposition
                  of at least eighty percent (80%) of the assets of the Company (a
                  “Business Combination”), unless, in each case, following
                  such Business Combination, all or substantially all of the individuals
                  and
                  entities who were the beneficial owners of outstanding voting securities
                  of the Company immediately prior to such Business Combination beneficially
                  own, directly or indirectly, more than fifty percent (50%) of the
                  combined
                  voting power of the then outstanding voting securities entitled
                  to vote
                  generally in the election of directors of the Company resulting
                  from such
                  Business Combination (including, without limitation, a company
                  which, as a
                  result of such transaction, owns the Company or all or substantially
                  all
                  of the Company’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
                  voting
                  securities of the Company; or

              

      

       

      
        	
                 

              	
                (iv)

              	
                approval
                  by the stockholders of the Company of a complete liquidation or
                  dissolution of the Company.

              

      

       

      
        	
                 

              	
                (b)

              	
                “Board”
                  shall mean the Board of Directors of the
                  Company.

              

      

       

      
        	
                 

              	
                (c)

              	
                “Disability”
                  shall have the meaning as set forth in the Employment Agreement
                  by and
                  between Employee and Company dated December 10, 2007 or subsequent
                  replacement there of.

              

      

       

      
        	
                 

              	
                (d)

              	
                “Special
                  Change in Control Bonus Payment” shall mean
                  $275,000.00.

              

      

       

      
        	
                 

              	
                (e)

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

              

        
          
            
            

          

          
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                2.

              	
                Term
                  of Agreement; Duties.

              

      

       

      
        	
                 

              	
                (a)

              	
                Subject
                  to Section 4 below, this Agreement shall be effective on the date
                  hereof
                  and shall continue in effect through the first to occur of (i)
                  the  occurrence of a Change in Control or (ii) December 31,
                  2009, unless extended by the President and CEO and the Compensation
                  Committee of the Board (the “Term”).  Upon expiration of the
                  Term, all obligations of the parties under this Agreement (except
                  obligations to pay money that exist as of the end of the Term and
                  any
                  obligation that by its terms survives the expiration of the Term)
                  shall
                  terminate and this Agreement shall have no further
                  effect.

              

      

       

      
        	
                 

              	
                (b)

              	
                The
                  Employee shall have such duties and obligations as are set forth
                  in the
                  Employment Agreement by and between Employee and
                  Company.

              

      

       

      
        	
                 

              	
                3.

              	
                Payment
                  of Special Change in Control Bonus Payment.  Subject to Section
                  4 and Section 14 below, the Company shall pay the Employee the
                  Special
                  Change in Control Bonus Payment within four (4) business days following
                  the occurrence of a Change in
                  Control.

              

      

       

      
        	
                 

              	
                4.

              	
                Termination
                  of Employment and Compensation upon
                  Termination.

              

      

       

      
        	
                 

              	
                (a)

              	
                In
                  the event of termination of the Employee’s employment during the Term due
                  to death,  Disability or by the Company without cause , as
                  defined in the Employment Agreement, Company shall pay to the Employee,
                  or
                  to his or her beneficiary in the event of death or disability,
                  the Special
                  Change in Control Bonus Payment if:

              

      

       

      
        	
                 

              	
                (i)

              	
                a
                  Change in Control occurs within 90 days of the date of such death,
                  Disability or termination of employment without cause;
                  or

              

      

       

      
        	
                 

              	
                (ii)

              	
                a
                  definitive agreement relating to a Change in Control has been executed
                  at
                  the effective date of such termination, and such agreement is subsequently
                  consummated by the parties; or

              

      

       

      
        	
                 

              	
                (iii)

              	
                a
                  definitive agreement relating to a Change in Control is subsequently
                  executed with a party with whom the Company has had substantive
                  negotiations regarding a Change in Control prior to the effective
                  date of
                  such termination, or with an affiliate of such party, and such
                  negotiations have not been interrupted for a material period of
                  time (90
                  days or more) prior to the date of a Change in Control, and such
                  agreement
                  is subsequently consummated by the parties.    For
                  purposes of this Section 4(a), the effective date of termination
                  of the
                  Employee’s employment with the Company shall be determined under his/her
                  Employment Agreement..

              

        
          
            
            

          

          
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                (b)

              	
                In
                  the event of a termination of the Employee’s employment during the Term
                  for any other reason, the Company shall have no obligation to pay
                  the
                  Employee any Special Change in Control Bonus
                  Payment.

              

      

       

      
        	
                 

              	
                (c)

              	
                If
                  the Employee’s employment by the Company is not terminated prior to the
                  expiration of the Term, then if a definitive agreement relating
                  to a
                  Change in Control has been executed prior to the expiration of
                  the Term or
                  if a definitive agreement relating to a Change in Control is subsequently
                  executed with a party with whom the Company has had substantive
                  negotiations regarding a Change in Control prior to the expiration
                  of the
                  Term, or with an affiliate of such party, and such negotiations
                  have not
                  been interrupted for a material period of time (90 days or more)
                  prior to
                  the date of execution of such definitive agreement, the Employee
                  shall be
                  entitled to the Special Change in Control Bonus Payment if the
                  transaction
                  contemplated by that definitive agreement is consummated after
                  the
                  expiration of the Term and Employee is employed by the Company
                  at such
                  time.

              

      

       

      
        	
                 

              	
                5.

              	
                Withholding
                  Taxes.  The Company shall withhold from any payment due to the
                  Employee hereunder (or his/her beneficiary or estate)  all taxes
                  which, by applicable federal, state, local or other law, the Company
                  is
                  required to withhold therefrom.

              

      

       

      
        	
                 

              	
                6.

              	
                Confidentiality.  The
                  Employee agrees that the terms of the Agreement, and all discussions
                  relating to this Agreement, are and shall remain confidential as
                  between
                  the parties, unless and to the extent, disclosure as required by
                  law or to
                  secure advice from a legal or tax
                  advisor.

              

      

       

      
        
          
          

        

        
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                7.

              	
                Successors
                  and Assigns: No Third-Party Beneficiaries.  This Agreement shall
                  inure to the benefit of and shall be binding upon the Company and
                  its
                  successors, assigns and legal representatives and the Employee,
                  his/her
                  heirs and legal representatives.  The Employee may not assign,
                  transfer, or otherwise dispose of the Agreement, or any of his/her
                  rights
                  or obligations hereunder other than his/her rights to payments
                  hereunder,
                  which may be transferred only by will or by the laws of descent
                  and
                  distribution), without the prior written consent of the Company,
                  and any
                  such attempted assignment, transfer or other disposition without
                  such
                  consent shall be null and void.  The Company shall be entitled
                  to assign this Agreement, without the prior written consent of
                  the
                  Employee, (i) in connection with the merger or consolidation of
                  the
                  Company with another unaffiliated corporation, or (ii) in connection
                  with
                  the sale of all or substantially all of the assets or business
                  operations
                  of the Company to another person or entity; provided, however,
                  that such
                  assignee expressly assumes all of the rights and obligations of
                  the
                  Company hereunder, and provided further that solely with respect
                  to any
                  obligations of the Company to make a Special Change in Control
                  Bonus
                  Payment, the Company shall remain liable with respect to such obligation
                  in the event of a default by such assignee.  After any such
                  assignment, the Agreement shall continue in full force and
                  effect.

              

      

       

      
        	
                 

              	
                8.

              	
                Entire
                  Agreement.  This Agreement sets forth the entire agreement
                  between the parties hereto with respect to the subject matter hereof,
                  and
                  supersedes all other agreements and understandings, written or
                  oral,
                  between the parties hereto with respect to the subject matter hereof;
                  provided, however, nothing in the Agreement is intended to affect
                  the
                  Employee’s rights to payments or benefits provided to the Employee under
                  his/her Employment Agreement and the Company’s equity based compensation
                  and/or welfare benefit plans.

              

      

       

      
        	
                 

              	
                9.

              	
                Waiver
                  and Amendments.  Any waiver, alteration, amendment or
                  modification of any of the terms of this Agreement shall be valid
                  only if
                  made in writing and signed by the parties hereto; provided however,
                  that
                  any such waiver, alteration, amendment or modification is consented
                  to on
                  the Company’s behalf by the President and Chief Executive Officer or the
                  Board.   No waiver by either of the parties hereto of their
                  rights hereunder shall be deemed to constitute a waiver with respect
                  to
                  any subsequent occurrences or transactions hereunder unless such
                  waiver
                  specifically states that it is to be construed as a continuing
                  waiver.

              

        
          
            
            

          

          
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                10.

              	
                Severability.
                  If any provision of this Agreement or the application of any provision
                  is
                  held invalid, unenforceable or otherwise illegal, the remainder
                  of this
                  Agreement and the application of such provision will not be affected,
                  and
                  the provision so held to be invalid, unenforceable or otherwise
                  illegal
                  will be reformed to the extent (and only to the extent) necessary
                  to make
                  it enforceable, valid or legal. To the extent any provisions held
                  to be
                  invalid, unenforceable or otherwise illegal cannot be reformed,
                  such
                  provisions are to be stricken herefrom and the remainder of this
                  Agreement
                  will be binding on the parties and their successors and assigns
                  as if such
                  invalid or illegal provisions were never included in this Agreement
                  from
                  the first instance.

              

      

       

      
        	
                 

              	
                11.

              	
                Governing
                  Law. This Agreement will be construed and enforced according to
                  the laws
                  of the Commonwealth of Kentucky, without giving effect to the conflict
                  of
                  laws principles thereof.

              

      

       

      
        	
                 

              	
                12.

              	
                Section
                  Headings.  The headings of the sections and subsections of this
                  Agreement are inserted for convenience only and shall be deemed
                  to
                  constitute a part hereof, affect the meaning or interpretation
                  hereof or
                  of any term or provision hereof.

              

      

       

      
        	
                 

              	
                13.

              	
                Obligations
                  Contingent on Performance.  The obligations of the Company
                  hereunder, including its obligation to make the payments provided
                  for
                  herein, are contingent upon the Employee’s performance of the Employee’s
                  obligations under his/her Employment
                  Agreement.

              

      

       

      
        	
                 

              	
                14.

              	
                Waiver
                  and Release.  The Employee acknowledges and agrees that any
                  payment made under this Agreement is contingent upon Employee delivering
                  to the Company at the time of such Change In Control a release
                  in the form
                  attached hereto as Exhibit A, and the expiration of all revocation
                  periods
                  related thereto.

              

      

       

      
        	
                 

              	
                15.

              	
                Counterparts.  This
                  Agreement may be executed in two or more counterparts, each of
                  which shall
                  be deemed to be an original but all of which together shall constitute
                  one
                  and the same instrument.  The execution of this Agreement may be
                  by actual or facsimile signature.

              

      

       

      
        	
                 

              	
                16.

              	
                Notices.  All
                  notices and other communications hereunder shall be in writing
                  and shall
                  be given by hand delivery to the other party or by registered or
                  certified
                  mail, return receipt requested, postage prepaid, addressed as
                  follows:

              

      

      
        
          
          

        

        
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                If
                  to the Employee:

              	
                Christopher
                  C. Froman

              	 
	 	
                113
                  Fellswood Drive

              	 
	 	
                Morristown,
                  NJ  08057

              	 
	 	 	 
	 	 	 
	
                If
                  to the Company:

              	
                Pomeroy
                  IT Solutions, Inc.

              	 
	 	
                1020
                  Petersburg Road

              	 
	 	
                Hebron,
                  Kentucky  41048

              	 
	 	
                Attention:  President
                  and Chief Executive Officer

              	 
	 	 	 
	 	 	 
	
                With
                  copy to:

              	
                Pomeroy
                  IT Solutions, Inc.

              	 
	 	
                1020
                  Petersburg Road

              	 
	 	
                Hebron,
                  Kentucky 41048

              	 
	 	
                Attention:  General
                  Counsel

              	 

      

       

       

      IN
        WITNESS WHEREOF, the undersigned have executed this Agreement of the date
        first
        written above.

       

      
        	
                Pomeroy
                  IT Solutions, Inc.

              	 	
                Employee:

              
	  	 	  
	 	
                /s/  Keith
                  R. Coogan

              	 	 	
                /s/
                  Christopher C. Froman

              
	  	 	  
	
                By:

              	
                Keith
                  R. Coogan

              	 	
                By:

              	
                Christopher
                  C. Froman

              
	
                Title:

              	
                President/Chief
                  Executive Officer

              	 	
                Title:

              	
                SVP
                  of Sales and Marketing

              

      

    

     

     

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      EXHIBIT
        10.1

       

      
        	
                 

              

      

      

      

      December
        6, 2007

       

       

      Mr.
        Thomas Hein

      c/o
        Orthofix, Inc.

      The
        Storrs Building, Suite 250

      10115
        Kincey Avenue

      Huntersville
        Business Park

      Huntersville,
        NC 28078

      

      Dear
        Tom:

      

      Reference
        is made to that certain Employment Agreement, dated July 13, 2006 (as modified
        by this side letter, the “Agreement”), by and between Orthofix, Inc., a
        Minnesota corporation (the “Company”), and Thomas Hein (the
“Executive,” or “you”), under which the Company’s payment
        obligations are guaranteed as provided therein by Orthofix International
        N.V., a
        Netherlands Antilles company (“Parent”).  All capitalized terms
        used, but not otherwise defined, herein shall have the meaning ascribed to
        them
        in the Agreement.  This letter (“Letter”) is being delivered to
        memorialize the understanding between the parties to the Agreement (the
“Parties”) with respect to the transition of your duties as Chief
        Financial Officer of the Company and Parent to a new Chief Financial Officer
        (“CFO”), as well as your assuming the role of Executive Vice President
–
Finance of the Company and Parent.

      

      By
        executing this Letter as provided below, the Parties hereby agree as
        follows:

      

      1.           The
        Company acknowledges that once the new CFO commenced employment with the
        Company
        on November 19, 2007 (the “Start Date”), an event constituting Good
        Reason pursuant to Section 4.4 of the Agreement occurred and would permit
        you to
        resign for Good Reason and receive the severance payments and other benefits
        described in Section 5.1 of the Agreement and elsewhere therein
        (“Benefits”), unless such event was cured by the Company.  Such
        Benefits would include a right to (a) payment of a one-time lump sum in an
        amount equal to 100% of your Base Amount (the “Good Reason Payment”), (b)
        acceleration of the vesting of all stock options then held by you (the
“Acceleration”), (c) payment of a bonus (through your date of
        termination) in the form of Incentive Compensation under the Bonus Plan based
        on
        your 2007 Goals, payable on the Severance Bonus Payment Date for the 2007
        Bonus
        Plan year and (d) various other benefits, including outplacement services
        and
        certain welfare benefits (“Other Benefits”).  Receipt of the
        Benefits requires your execution of a release as provided in Section 5.4
        of the
        Agreement and your compliance with protective provisions in Article VI of
        the
        Agreement, both of which obligations continue following effectiveness of
        this
        Letter.  With respect to such Good Reason event, the Parties agree to
        waive the related notice and cure periods in the Agreement and agree that
        such
        Good Reason event occurs as of the Start Date.  Nothing in this Letter
        shall otherwise modify any notice or cure provisions under the Agreement,
        including requirements to give advance notice of termination by the Company
        or
        the Executive.  The Parties further agree that the amount of the Good
        Reason Payment under the Agreement is $407,726.00.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      2.           You
        hereby agree to continue in employment and thereby waive temporarily any
        and all
        Benefits under the Agreement (except unpaid base salary and accrued unpaid
        vacation), including the Good Reason Payment, Acceleration and Other Benefits,
        in exchange for the Company offering you the opportunity to earn a retention
        bonus of $150,000 (“Retention Bonus”).  The Retention Bonus
        will be payable on July 15, 2008, as long as you:

      

      a.           remain
        an employee of the Company (or one of its affiliates) from the Start Date
        through July 15, 2008 (the “Transition Period”); and

      

      b.           work
        in good faith, as reasonably determined by the Company, with the new CFO
        to
        complete a plan for the transition of your current duties and responsibilities
        to the new CFO.

      

      The
        Company agrees that during the Transition Period ending July 15, 2008, it
        may
        terminate your employment only for “Cause” as provided in Section 4.6 of the
        Agreement.

      

      3.           During
        the Transition Period, you will serve as Executive Vice President – Finance and
        your duties will be as set forth by the CFO and the Chief Executive Officer
        in
        their sole discretion without regard to Section 1.1 or otherwise of the
        Agreement, which provisions are hereby superseded.  While an employee
        of the Company (or one of its affiliates) during the Transition Period, you
        will
        continue to receive your current salary under Section 2.2 of the Agreement
        and
        the benefits set forth under Article III.

      

      4.           With
        respect to Incentive Compensation under Section 2.3 of the Agreement, you
        will
        only be eligible for the earning and payment of such compensation as
        follows:

      

      a.           if
        you remain employed with the Company through December 31, 2007, you shall
        receive your Incentive Compensation on the Severance Bonus Payment Date as
        if
        you had continued in the role of CFO through such date; and

      

      b.           if
        you terminate employment with the Company for any reason prior to December
        31,
        2007, then on the Severance Bonus Payment Date you shall receive only your
        Incentive Compensation through the date hereof as if your employment had
        terminated under the Agreement as of the date hereof.

      

      c.           if
        you remain employed with the Company on or after January 1, 2008, you will
        participate in the Bonus Plan in your new role as Executive Vice
        President-Finance.  Your participation will be subject to the
        provisions of the Bonus Plan except as those terms might be modified by the
        Agreement and this Letter and will be at a level similar to that of your
        peers
        at the Company.

      

      d.           if
        you terminate your employment after January 1, 2008, but on or before July
        15,
        2008 (unless you are terminated for Cause), you will receive Bonus Plan
        Incentive Compensation for fiscal year 2008 through the date of the termination
        of your employment as follows: you will be entitled to receive the pro rata
        amount of any 2008 Bonus Plan Incentive Compensation (based on the number
        of
        business days you were actually employed during 2008) that you would have
        received had you not terminated your employment during 2008; provided,
        however, the foregoing sentence is not intended to give you greater rights
        to such Incentive Compensation than a pro rata portion of what you would
        ordinarily be entitled to under the Bonus Plan and such pro rata portion
        shall
        be paid at the time such Incentive Compensation is paid to other senior
        executives of the Company in 2009.

      

      5.           The
        following outlines when you would receive your Benefits (other than Incentive
        Compensation, which is outlined above) and, if earned, the Retention
        Bonus:

      

      a.           if
        you voluntarily terminate employment with the Company before July 15, 2008,
        then, in addition to any unpaid base salary and accrued unpaid vacation then
        owing through the date of termination, as well as any pro rata amount of
        any
        Bonus Plan Incentive Compensation as provided under Section 4, following
        your
        termination you would receive your Good Reason Payment and Other Benefits,
        but
        you would not receive the Retention Bonus; the Acceleration would occur as
        of
        the date you terminated employment with the Company;

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      b.           if
        you die before July 15, 2008, then following your death, in addition to any
        unpaid base salary for the period from the date of your death until July
        15,
        2008 and accrued unpaid vacation owing through the date of death, as well
        as any
        pro rata amount of any Bonus Plan Incentive Compensation for the fiscal year
        of
        your death as provided under Section 4, your beneficiary would receive your
        Good
        Reason Payment, Other Benefits and the Retention Bonus; the Acceleration
        would
        occur as of the date you died;

      

      c.           if
        you remain employed by the Company (or one of its affiliates) until July
        15,
        2008, but do not accept a long-term role with the Company (or are not offered
        a
        long-term role with the Company) for any reason, then following your termination
        of employment you would receive (i) your Good Reason Payment and Other Benefits;
        (ii) the Retention Bonus (to be paid on or before August 1, 2008); (iii)any
        unpaid base salary and accrued unpaid vacation then owing through the date
        of
        termination, as well as any pro rata amount of any Bonus Plan Incentive
        Compensation as provided under Section 4, and the Acceleration would occur
        as of
        the date you terminated employment with the Company; further, the Parties
        agree
        that the Company is not obligated to offer, nor are you obligated to accept,
        any
        long-term role; and

      

      d.           if
        you remain employed by the Company (or one of its affiliates) until July
        15,
        2008, and you accept in writing a long-term role and continued employment
        with
        the Company, then you would receive the Retention Bonus (to be paid on or
        before
        August 1, 2008), but not receive the Good Reason Payment, Other Benefits
        or any
        other severance payments or benefits under the Agreement as a result of the
        Good
        Reason event (nor will the Acceleration occur); instead, the Agreement would
        remain in effect as if the Company had cured and remedied the event constituting
        Good Reason in accordance with Section 4.4 of the Agreement, to the reasonable
        satisfaction of the Executive, and the Executive shall have no right to
        terminate his employment or receive Benefits under Sections 4.4, 5.1 or any
        other provision of the Agreement, as a result of such Good Reason
        event.

      

      6.           While
        nothing will obligate you to remain employed with the Company after July
        15,
        2008, or for the Company to offer you a long-term position after July 15,
        2008,
        the Parties agree to work in good faith to determine to what extent and in
        what
        role you might remain with the Company after that date.  Failure of
        the Parties to determine a long-term role for the Executive will create no
        liability or obligation for any of the Parties.  For the avoidance of
        doubt, the Agreement and its Term will cease on your last day of employment
        with
        the Company (or any of its affiliates) unless you continue in a long-term
        role
        as provided in paragraph 5(d) (other than provisions of the Agreement that
        survive, which provisions shall remain in effect in accordance with their
        terms).

      

      7.           Until
        the earlier of (a) the end of the Transition Period and (b) your ceasing
        to be
        an employee of the Company (or one of its affiliates), you understand and
        acknowledge that you are an at-will employee of the Company and, in the event
        of
        any termination of your employment by the Company or voluntarily by you,
        you
        would not be entitled to any sums or other payments or benefits, other than
        the
        Good Reason Payment, Incentive Compensation, Other Benefits, Acceleration,
        and,
        if earned, the Retention Bonus, all as specifically provided herein;
provided, however, that nothing in this letter shall (i) limit the
        Company’s obligations under Section 7.2 of the Agreement with respect to legal
        fees or (ii) your obligation to comply with the protective provisions set
        forth
        in Article VI of the Agreement.

      

      8.           Any
        payments to be made hereunder following termination of employment will be
        paid
        in a lump sum as provided under the Agreement, unless expressly set forth
        otherwise herein, promptly thereafter, subject to compliance with Section
        409A
        (“Section 409A”) of the Internal Revenue Code of 1986, as amended,
        including but not limited to any requirement that such payments be delayed
        for
        at least six months following termination of employment.  The terms
“termination” and “termination of employment,” and any variations thereof, as
        used in this Letter are intended to mean a termination of employment which
        constitutes a “separation from service” under Section 409A.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      9.           The
        terms of this offer remain open for 5 days from the date of this Letter,
        after
        which the offer represented by this Letter will be deemed revoked.

      

      10.         As
        an inducement for the Executive to enter into this Letter, the Company has
        agreed to enter into an Amended and Restated Employment Agreement (the "New
        Agreement") with you immediately following execution of this Letter in order
        to, among others, reflect your new title and make changes in an effort to
        ensure
        compliance with Section 409A. Following such time, any references to the
        Agreement in this Letter shall be construed as references to the New Agreement
        and the exercise period for options held by you shall be governed by the
        terms
        of that New Agreement.

       

      Please
        confirm your agreement with and consent to the terms of this Letter by executing
        the same in the space provided below.  This Letter shall only be
        effective as of the date it is signed by both you and the
        Company.  For the avoidance of doubt, this Letter represents an
        amendment of the Agreement.  This Letter may be executed in one or
        more counterparts, each of which shall be deemed to be an original and all
        of
        which together shall constitute one and the same agreement. This Letter shall
        be
        subject to the governing law and dispute resolution provisions set forth
        in the
        Agreement.

       

      (Remainder
        of this page intentionally left blank)

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      Sincerely,

      

      ORTHOFIX,
        INC.

      

      

      
        	
                By:

              	
                /s/
                  Raymond C. Kolls

              	 
	
                Name:

              	
                Raymond
                  C. Kolls

              	 
	
                Title:

              	
                Secretary

              	 
	  	 
	  	 
	
                Acknowledged
                  and agreed to by:

              	 
	  	 
	  	 
	
                THOMAS
                  HEIN 

              	 
	  	 
	  	 
	
                By:
                  

              	/s/
                Thomas Hein	 
	  	 
	  	 
	
                ORTHOFIX
                  INTERNATIONAL N.V.

              	 
	  	 
	  	 
	
                By:

              	
                /s/
                  Raymond C. Kolls

              	 
	
                Name:

              	
                Raymond
                  C. Kolls

              	 
	
                Title:

              	
                Secretary

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