EX-10.15





 Exhibit 10.15 

PHANTOM PLAN—Execution Version 

BIOVENTUS LLC 
 PHANTOM
PROFITS INTERESTS PLAN 
 DATED AS OF MAY 4, 2012 

The purpose of the Bioventus LLC Phantom Profits Interests Plan (the “Plan”) is to provide eligible employees of Bioventus
LLC (the “Company”) who are important to the success and growth of the business of the Company an opportunity to share in the future appreciation in value of the Company by receiving grants of Phantom Profits Interest Units in the
Company. The Company believes that the Plan will encourage participants to contribute materially to the growth of the Company’s owners, thereby benefiting the Company, and will align the economic interests of the participants with those of the
owners. Awards under the Plan shall consist of grants of Phantom Profits Interest Units as described in Section 5 (“Awards”). Capitalized terms that are used but not defined herein shall have the respective meanings accorded to
such terms in the Amended and Restated Limited Liability Company Agreement of the Company, as amended (the “LLC Agreement”). 
  

	1.	 DEFINITIONS. 



(a) “Benchmark Amount” means the cumulative distributions that must be made by the Company pursuant to the LLC Agreement
before a Grantee is entitled to receive any distributions in respect of such Grantee’s Phantom Profits Interest Units. The Benchmark Amount as of the initial effective date of the Plan is $231,372,549.02. 

(b) “Code” means the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder. 

(c) “Employee” means an employee of the Company. 

(d) “Grantee” means an Employee who receives an Award. 

(e) “Initial Waterfall Distribution Event” means the closing of (i) a sale of Units representing a Percentage Interest of
more than 66.66%, or (ii) a sale of all or substantially all of the assets of the Company; provided that such event constitutes a change in ownership or a change in effective control of the Company within the meaning of Section 409A of the
Code. 
 (f) “Management Distribution Cap” means 10% of the aggregate amount, if any, available for distribution pursuant to
Section 10.05(a)(v) of the LLC Agreement. 
 (g) “Management Incentive Plan” means the Bioventus LLC Management
Incentive Plan. 
 (h) “Payment Amount” means the amount payable with respect to each vested Phantom Profits Interest Unit
upon the applicable Payment Event. 
 (i) “Phantom Profits Interest Unit” means a right to receive cash in an amount equal
to the Payment Amount upon the Payment Event as set forth in the applicable Award Agreement. 













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 (j) “Profits Interest Unit” means a
non-managing, non-voting ownership interest in the Company issued pursuant to Section 3.01(b) of the LLC Agreement and the Management Incentive Plan. 

(k) “Qualifying Subsequent Waterfall Distribution Event” means a Subsequent Waterfall Distribution Event that constitutes a
change in ownership or a change in effective control of the Company within the meaning of Section 409A of the Code. 
 (l)
“Subsequent Waterfall Distribution Event” means, following an Initial Waterfall Distribution Event under Section 1(a) above with respect to Units representing a Percentage Interest of less than 100%, the closing of (i) a
subsequent sale of Units, or (ii) a sale of all or substantially all of the assets of the Company 
 (m) “Termination
Date” means the date of the Grantee’s separation of service, as defined in Section 409A of the Code. 
 (n)
“Waterfall Distribution Event” means an Initial Waterfall Distribution Event or a Subsequent Waterfall Distribution Event. 
  

	2.	 ADMINISTRATION 



(a) Administration. The Plan shall be administered and interpreted by the Board of Managers (the “Administrator”) or by
a committee or subcommittee, which shall be appointed by the Administrator. To the extent that a committee or subcommittee administers the Plan, references in the Plan to the “Administrator” shall be deemed to refer to the committee or the
subcommittee. 
 (b) Administrator Authority. The Administrator shall determine (i) the Employees to receive Awards,
(ii) the size and terms of the Awards, (iii) the time when the Awards will be made, (iv) the applicable Payment Event, (v) the duration of any applicable vesting period, provided that such vesting period shall not be less than
four years and that the Award shall vest ratably over the vesting period, and (vi) the Benchmark Amount with respect to any Award. 

(c) Administrator Determinations. The Administrator shall have full power and authority to administer and interpret the Plan, to make
factual determinations, and to adopt or amend such rules, regulations, agreements, and instruments for implementing the Plan and for the conduct of its business as it deems necessary or advisable. All powers of the Administrator shall be executed
without the approval or consent of the Grantees. 

  
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	3.	 INTERESTS SUBJECT TO THE PLAN 



(a) Awards Authorized by the LLC Agreement. The total amount of Phantom Profits Interest Units available for grants under the Plan, when
combined with the total amount of Profits Interest Units (as defined in the Management Incentive Plan) granted under the Management Incentive Plan and any other form of employee, management or other service provider equity or equity-related awards
of the Company, shall not result in aggregate distributions to the holders thereof in excess of the Management Distribution Cap (such amount determined, solely for this purpose, as if there were no Phantom Profits Interest Units or Other Management
Equity Awards (as defined in the LLC Agreement)) (“Excess Distributions”), unless and to the extent that S&N and the Essex Members consent in their capacity as Members to such Excess Distributions. If, and to the extent that,
Phantom Profits Interest Units granted under the Plan terminate or are canceled, forfeited, exchanged, or surrendered without payment, such Phantom Profits Interest Units shall be available again for purposes of the Plan. 

(b) Adjustments. If there is any change in the total amount or kind of Phantom Profits Interest Units outstanding (i) by reason of
a spinoff, split of the Phantom Profits Interest Units, reclassification, combination, or exchange of such Phantom Profits Interest Units or similar event; (ii) by reason of a merger, reorganization, or consolidation; (iii) by reason of
any other extraordinary or unusual event affecting the outstanding Phantom Profits Interest Units as a class without the Company’s receipt of consideration; or (iv) by reason of a change in the structure of the Company, or if the value of
the outstanding Phantom Profits Interest Units are substantially reduced as a result of a spinoff, the amount or percentage of such Phantom Profits Interest Units covered by outstanding Awards, and the kind of Phantom Profits Interest Units issued
under the Plan shall be appropriately adjusted by the Administrator to reflect any increase or decrease in the amount of, or change in the kind or value of, issued Phantom Profits Interest Units to preclude, to the extent practicable, the
enlargement or dilution of rights and benefits under such Awards. Any adjustments determined by the Administrator shall be final, binding, and conclusive. 
  

	4.	 ELIGIBILITY FOR PARTICIPATION 



All Employees who are designated by the Administrator shall be eligible to participate in the Plan. 

 

	5.	 GRANTS OF AWARDS 



(a) Award Agreement. All Awards shall be subject to the terms and conditions of this Plan, the terms of the LLC Agreement, and the
Grantee’s award instrument (the “Award Agreement”). Each Award Agreement shall contain the number of Phantom Profits Interest Units underlying the Grantee’s Award and the applicable grant date Benchmark Amount (subject to
adjustment as provided in the LLC Agreement), and each Award shall vest in accordance with the terms of the Grantee’s Award Agreement. The Award Agreement shall also designate whether the Payment Amount shall be paid (i) upon the earlier
of the Grantee’s Termination Date or an Initial Waterfall Distribution Event (with any subsequent amounts paid upon the earlier of a Qualifying Subsequent Waterfall Distribution Event or the Grantee’s Termination Date) (a
“Termination Payment Event”) or (ii) upon an Initial Waterfall Distribution Event, with any subsequent amounts paid upon the earlier of (A) a Qualifying Subsequent Waterfall Distribution Event or (B) provided that a
Subsequent Waterfall event has occurred, the fifth anniversary of the grant date (a “Waterfall Payment Event”) (a Termination Payment Event or a Waterfall Payment Event, also referred to as the “Payment Event”).


  
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 (b) Payment Amount. 

(i) If the Payment Event is a Termination Payment Event, the Payment Amount shall be, for each vested Phantom Profits Interest Unit, an amount
that would be allocated to an equivalent number of Profits Interest Units with an equivalent Benchmark Amount, (A) if the Grantee’s Termination Date is prior to a Waterfall Distribution Event, as if the Company were liquidated on the
Termination Date at fair market value (as determined in good faith by the Administrator), or (B) where there is an Initial Waterfall Distribution Event and one or more Subsequent Waterfall Distribution Events prior to the Termination Date,
pursuant to the LLC Agreement with respect to each such Waterfall Distribution Event. Such Payment Amount shall be paid to the Grantee within 30 days of the Termination Date, the Initial Waterfall Distribution Event, or any Qualifying Subsequent
Waterfall Distribution Event, as applicable. In the event that a Subsequent Waterfall Distribution Event is not a Qualifying Subsequent Waterfall Distribution Event, the Payment Amount with respect to such Subsequent Waterfall Distribution Event
shall be paid within 30 days of the Termination Date. No further Payment Amount shall be paid to the Grantee with respect to Waterfall Distribution Events following the Grantee’s Termination Date. 

(ii) Subject to (iii) below, if the Payment Event is a Waterfall Payment Event and a Waterfall Distribution Event occurs before the
Grantee’s Termination Date, the Payment Amount shall be equal to, for each vested Phantom Profits Interest Unit, an amount that would be payable with respect to the equivalent number of Profits Interest Units with an equivalent Benchmark Amount
pursuant to the LLC Agreement. Such Payment Amount shall be paid to the Grantee within 30 days of an Initial Waterfall Distribution Event, and for any Subsequent Waterfall Distribution Event, shall be paid to the Grantee within 30 days of the
earlier of a Qualifying Subsequent Waterfall Distribution Event or the fifth anniversary of the date of grant. No Payment Amount shall be paid to the Grantee with respect to any Subsequent Waterfall Distribution Event that is not a Qualifying
Subsequent Waterfall Distribution Event and that occurs after the fifth anniversary of the Grant Date. 
 (iii) If the Payment Event is a
Waterfall Payment Event and a Waterfall Distribution Event occurs after the Grantee’s Termination Date, the Payment Amount with respect to such event shall in no event be greater than the lesser of, for each vested Phantom Profits Interest
Unit, (A) an amount that would be allocated to an equivalent number of Profits Interest Units with an equivalent Benchmark Amount if the Company were liquidated on the valuation date next following the Termination Date at fair market value (as
determined in good faith by the Administrator) and (B) the amount specified in Section 5(b)(ii) above; provided that if a Waterfall Distribution Event occurs prior to the valuation date next following the Termination Date, the Payment
Amount shall be the amount specified in Section 5(b)(ii). Such Payment Amount shall be paid to the Grantee within 30 days of the Initial Waterfall Distribution Event, and for any Subsequent Waterfall Distribution Event, shall be paid to the
Grantee within 30 days of the earlier of a Qualifying Subsequent Waterfall Distribution Event or the fifth anniversary of the date of grant. No Payment Amount shall be paid to the Grantee with respect to any Subsequent Waterfall Distribution Event
that is not a Qualifying Subsequent Waterfall Distribution Event and that occurs after the fifth anniversary of the Grant Date. 

  
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 (c) Acknowledgement by Grantee. All Awards shall be made conditional upon the
Grantee’s acknowledgement, in writing or by acceptance of the Award, that all decisions and determinations of the Administrator shall be final and binding on the Grantee, his or her beneficiaries, and any other person having or claiming an
interest under such award. Awards need not be uniform as among the Grantees. 
  

	6.	 FORFEITURE 



(a) Termination of Employment. Any and all of a Grantee’s unvested Phantom Profits Interest Units shall be forfeited upon the
termination of the Grantee’s employment for any reason. 
 (b) Termination of Employment for Cause. Any and all of a
Grantee’s vested and unvested Phantom Profits Interest Units shall be forfeited upon the termination of the Grantee’s employment for Cause. For purposes of this Plan, “Cause” shall have the meaning set forth in the written
employment agreement between the Grantee and the Company in effect on the date of the Grantee’s termination of employment, or if no such agreement exists, shall mean (i) conviction (including guilty plea or plea of nolo contendere) of any
felony or any other crime involving fraud, violence or dishonesty; (ii) commission of or participation in a fraud or act of dishonesty or misrepresentation against the Company; (iii) violation of any written and fully executed contract or
agreement between the Grantee and the Company, including without limitation, breach of Grantee’s Proprietary Information, Inventions, Non-Competition and
Non-Solicitation Agreement; (iv) gross negligence or willful misconduct, (v) continued and substantial failure to perform the Grantee’s duties to the Company; or (vi) violation of any
material policies, practices, or procedures of the Company. 
 (c) Waterfall Distribution Event. As soon as practicable following an
Initial Waterfall Distribution Event or any Subsequent Waterfall Distribution Event that results in an aggregate sale of Units representing a Percentage Interest of 100%, or upon a sale of all or substantially all of the assets of the Company, all
vested and unvested Phantom Profits Interest Units shall be cancelled (after the Grantee has been paid any amounts due with respect to such Units, if applicable). 

(d) Confidentiality, Non-Compete, Non-Solicitation.
Notwithstanding anything herein to the contrary, a Grantee shall forfeit any and all rights to all vested and unvested Phantom Profits Interest Units if the Grantee violates the terms of any confidentiality,
non-solicitation and non-competition provisions of any agreement between the Grantee and the Company, if applicable. 

 

	7.	 WITHHOLDING OF TAXES 



All Awards under the Plan shall be subject to applicable federal (including FICA), state, and local tax withholding requirements. The Company
may require that the Grantee pay to the Company the amount of any federal, state, or local taxes that the Company is required to withhold with respect to such Awards, or the Company may deduct from other wages paid by the Company the amount of any
withholding taxes due with respect to such Awards. 
  

	8.	 NONTRANSFERABILITY OF AWARDS 



Only the Grantee has any rights under an Award. A Grantee may not transfer those rights, directly or indirectly, except by will or the laws of
descent and distribution. 

  
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	9.	 LIMITATIONS ON ISSUANCE OR TRANSFER OF PHANTOM PROFITS INTEREST UNITS 



No Phantom Profits Interest Units shall be issued or transferred in connection with any Award until all legal requirements applicable to the
issuance or transfer of such Phantom Profits Interest Units have been complied with to the satisfaction of the Administrator. The Administrator shall have the right to condition any Award made to any Grantee hereunder on such Grantee’s
undertaking in writing to comply with any restrictions on his or her subsequent disposition of such Phantom Profits Interest Units as the Administrator shall deem necessary or advisable. 

 

	10.	 AMENDMENT AND TERMINATION OF THE PLAN 



(a) Amendment and Termination. The Administrator may, in accordance with the LLC Agreement, amend the Plan or any Award under the Plan,
or terminate the Plan, at any time; provided that no amendment or termination of the Plan or any Award shall, without the consent of a Grantee, adversely impact the rights of any Grantee under any Award granted to such Grantee under the Plan, unless
necessary to meet the requirements of any applicable law or regulation. Before amending or terminating the Plan or any Award to meet the requirements of an applicable law or regulation, the Administrator will attempt to bring the Plan or Award into
compliance with the applicable law or regulation without reducing the benefits or payments to a Grantee to the greatest extent possible. If amendment or termination is still necessary and adversely impacts the rights of a Grantee, the Administrator
will reasonably cooperate with such Grantee to adopt replacement benefits or payments that to the greatest extent possible places the Grantee in the same or a comparable economic position as if the Plan or Award had not been amended or terminated.

 (b) Governing Document. In the event of any conflict between any Award in the form attached hereto as Exhibit A or B and the
LLC Agreement, such Award shall control. In the event of any conflict between any subsequent Award not in the form attached hereto and the LLC Agreement, the LLC agreement shall control unless such subsequent Award has been approved by the Board and
Smith & Nephew, Inc., in which case such Award shall control. No other statements, representations, explanatory materials or examples, oral or written, may amend the Plan in any manner. The Plan shall be binding upon and enforceable against
the Company and its successors and assigns. 
  

	11.	 FUNDING OF THE PLAN 



This Plan shall be unfunded. The Company shall not be required to establish any special or separate fund or to make any other segregation of
assets to assure the payment of any Awards under this Plan. In no event shall interest be paid or accrued on any Award. 
  

	12.	 RIGHTS OF GRANTEES 



No Award shall entitle any Grantee to any (i) voting rights with respect to any action or decision taken or made (or to be taken or made)
by the Company or the Board of Managers, (ii) right to appoint Managers to the Board of Managers, or (iii) appraisal or preemption rights. Nothing in this Plan shall entitle any Employee or any other person to any claim or right to receive
an Award under this Plan. Neither this Plan nor any action taken hereunder shall be construed as giving any individual any rights to be retained by or in the employ of the Company or any other employment rights. 

  
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	13.	 HEADINGS 



Section headings are for reference only. In the event of a conflict between a title and the content of a Section, the content of the
Section shall control. 
  

	14.	 EFFECTIVE DATE OF THE PLAN 



The Plan shall be effective on May 4, 2012. 
  

	15.	 MISCELLANEOUS 



(a) Compliance with Law. The Plan and the obligations of the Company to issue or transfer Phantom Profits Interest Units in connection
with Awards shall be subject to all applicable laws and to approvals by any governmental or regulatory agency as may be required. The Administrator may revoke any Award if it is contrary to law or modify an Award to bring it into compliance with any
valid and mandatory government regulation. The Administrator may also adopt rules regarding the withholding of taxes on payments to Grantees. The Administrator may, in its sole discretion, agree to limit its authority under this Section. 

(b) Governing Law. The validity, construction, interpretation, and effect of the Plan and Award Agreements issued under the Plan shall
be governed and construed by and determined in accordance with the laws of the State of Delaware, without giving effect to the conflict of laws provisions thereof. 

  
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