Document:

SUBSCRIPTION
AGREEMENT

 

THE
SHARES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE OR ANY OTHER JURISDICTION.
THERE ARE FURTHER RESTRICTIONS ON THE TRANSFERABILITY OF THE SHARES DESCRIBED HEREIN.

 

THE
PURCHASE OF THE SHARES INVOLVES A HIGH DEGREE OF RISK AND SHOULD BE CONSIDERED ONLY BY PERSONS WHO CAN BEAR THE RISK OF THE LOSS
OF THEIR ENTIRE INVESTMENT.

 

1.
The Parties. THIS SUBSCRIPTION AGREEMENT (this “Subscription Agreement”) is entered into effective as
of the date set forth in the Signature pages of the Agreement by and between BONE BIOLOGICS CORPORATION, a Delaware corporation
(alternatively referred to herein as the “Issuer” or the “Company”), and Purchaser identified
on the signature page of this Agreement attached hereto and incorporated herein by reference (“Purchaser” or
“Subscriber”). The Company and Purchaser are sometimes referred to collectively herein as the “Parties,”
and each individually as a “Party.”

 

2.
Recitals. Purchaser acknowledges and understands that the Company is currently offering (the “Offering”)
for sale shares of its Common Stock, $0.001 par value per share (the “Shares”). Purchaser further understands
that the Offering is being made without registration of the Shares under the Securities Act of 1933, as amended (the “Securities
Act”), and is being made to Purchaser in its capacity as an “accredited investor” (as defined in Rule 501
of Regulation D under the Securities Act).

 

3.
Subscription. Subject to the terms and conditions hereof, Purchaser hereby irrevocably subscribes for that number of Shares
referenced below on the signature page (the “Purchased Shares”) for the total purchase price also referenced
below on the signature page. The purchase price is payable in accordance with Section 6, below. The Parties acknowledge that the
Shares will be subject to restrictions on transfer pursuant this Agreement.

 

4.
Acceptance of Subscription and Issuance of Shares; Escrow. It is understood and agreed that the Company shall have the
sole right, at its complete discretion, to accept or reject this subscription, in whole or in part, for any reason and that the
same shall be deemed to be accepted by the Company only when it is signed by a duly authorized officer of the Company and delivered
to Purchaser at the Closing referred to in Section 5 hereof. Notwithstanding anything in this Agreement to the contrary, the Company
shall have no obligation to issue any of the Shares to any person who is a resident of a jurisdiction in which the issuance of
Shares to it would constitute a violation of the securities, “blue sky” or other similar laws of such jurisdiction
(collectively referred to as the “State Securities Laws”). Pending the Closing, all funds will be deposited
into escrow with David Kagel, Esq., as escrow agent (the “Escrow Agent”).

 

5.
Closing and Closing Date. The closing of the purchase and sale of the Shares (the “Closing”) shall take
place at the offices of the Company, on the day designated by the Company (the “Closing Date”), or at such
place as the Parties may agree after satisfaction of the conditions precedent set forth herein.

 

6.
Payment for Shares. Upon execution of this Agreement, payment for the Shares shall be received by the Company from Purchaser
by wire transfer of immediately available funds to the account of the Escrow Agent as set forth on the Instructions. As soon as
practicable after the Closing the Company shall deliver to Purchaser a certificate for the Purchased Shares. The Company shall
deliver certificates representing the Purchased Shares to the undersigned at the Closing bearing an appropriate legend referring
to the fact that the Purchased Shares were sold in reliance upon an exemption from registration under the Securities Act.

 

    	 

    	 

    

 

7.
Representations, Warranties and Covenants of the Company. The Company represents, warrants and covenants that:

 

(a)
The Company is duly incorporated, validly existing and in good standing under the laws of the State of Delaware, with full power
and authority to conduct its business as it is currently being conducted and to own its assets and has secured any other authorizations,
approvals, permits and orders required by law for the conduct by the Company of its business as it is currently being conducted.

 

(b)
The Company has duly authorized the issuance and sale of the Purchased Shares upon the terms of their offer by all requisite corporate
action. The Company has reserved for issuance such number of Shares.

 

(c)
The Purchased Shares, when issued and paid for, will represent validly authorized, duly issued and fully paid and nonassessable
Shares of the Company, and the issuance thereof will not conflict with the Certificate of Incorporation or bylaws of the Company
nor, except as described below, with any outstanding warrant, option, call, preemptive right or commitment of any type relating
to the Company’s capital stock.

 

(d)
The proceeds from the sale of the Purchased Shares shall be used for the following expenses:

 

	 	●	Protein
    development,
	 	 	 
	 	●	Laboratory
    and testing expenses necessary to support that development,
	 	 	 
	 	●	Regulatory
    and clinical expenses, and
	 	 	 
	 	●	Development
    work to extend the patent life of NELL. 

 

(e)
We do not anticipate any other offering expenses in this Offering other than legal, accounting and filings costs.

 

8.
Representations and Warranties of Purchaser. Purchaser hereby represents and warrants that:

 

8.1
General.

 

(a)
Purchaser has all requisite authority to enter into this Agreement and to perform all the obligations required to be performed
by Purchaser hereunder, and the purchase of the Purchased Shares will not contravene any law, rule or regulation binding on the
undersigned or any investment guideline or restriction applicable to Purchaser.

 

    	2

    	 

    

 

(b)
Purchaser is a resident of the state (or, was formed in the state, as appropriate) referenced below on the signature page.

 

(c)
Purchaser is not acquiring the Purchased Shares as an agent or otherwise for any other person.

 

(d)
As of the Closing, the consummation by Purchaser of the transactions herein contemplated, including the execution, delivery and
consummation of this Agreement, will not violate any requirement of law applicable to or binding upon Purchaser.

 

(e)
Purchaser will comply with all applicable laws and regulations in effect in any jurisdiction in which Purchaser purchases or sells
Shares and obtain any consent, approval or permission required for such purchases or sales under the laws and regulations of any
jurisdiction to which the undersigned is subject or in which the undersigned makes such purchases or sales, and the Company shall
have no responsibility therefor

 

8.2
Information Concerning the Company.

 

(a)
Purchaser has reviewed or has been given the opportunity to review the Company’s securities filings (the “Securities
Filings”) which have been filed with the Securities and Exchange Commission (“SEC”) and are available
at www.sec.gov. The undersigned has not been furnished any offering literature and has relied only on the information contained\
in the Securities Filings.

 

(b)
Purchaser is familiar with the business and financial condition, properties, operations, and prospects of the Company, and that
there are no guarantees of the success of the Company. Purchaser has been given the opportunity to obtain any information necessary
to verify the accuracy of the information set forth in the Securities Filings, and has had access to such information concerning
the Company and the Shares as it deems necessary to enable it to make an informed investment decision concerning the purchase
of the Purchased Shares.

 

(c)
Purchaser understands that, unless it notifies the Company in writing to the contrary at or before the Closing, all of the representations
and warranties contained in Section 8 of this Agreement will be deemed true and correct as of the Closing by Purchaser in all
respect with the same effect as though made on closing taking into account all information received by Purchaser from the Company.

 

(d)
Purchaser understands that the purchase of the Purchased Shares involves various risks. Purchaser represents that it is able to
bear any loss associated with an investment in the Shares.

 

(e)
Purchaser confirms that it is not relying on any communication (written or oral) of the Company or any of its affiliates, as investment
advice or as a recommendation to purchase the Purchased Shares. It is understood that information and explanations related to
the terms and conditions of the Purchased Shares provided by the Company or any of its affiliates shall not be considered investment
advice or a recommendation to purchase the Purchased Shares, and that neither the Company nor any of its affiliates is acting
or has acted as an advisor to Purchaser in deciding to invest in the Purchased Shares. Purchaser acknowledges that neither the
Company nor any of its affiliates has made any representation regarding the proper characterization of the Purchased Shares for
purposes of determining Purchaser’s authority to invest in the Purchased Shares.

 

    	3

    	 

    

 

(f)
Purchaser acknowledges that the Company has the right in its sole and absolute discretion to abandon this private placement at
any time prior to the completion of the offering. This Agreement shall thereafter have no force or effect and the Company shall
return the previously paid subscription price of the Shares, without interest thereon, to Purchaser.

 

(g)
Purchaser understands that no federal or state agency has passed upon the Purchased Shares or made any finding or determination
concerning the fairness or advisability of this investment.

 

(h)
The Shares offered hereby are highly speculative, involve a high degree of risk and immediate dilution, and should be purchased
only by persons who can afford the loss of their entire investment. Prospective investors are urged to consult their own tax advisors
with respect to the U.S. federal income and other tax consequences of purchasing, holding and disposing of the Shares.

 

(i)
Purchaser confirms that the Company has not (A) given any guarantee or representation as to the potential success, return, effect
or benefit (either legal, regulatory, tax, financial, accounting or otherwise) of an investment in the Shares or (B) made any
representation to the undersigned regarding the legality of an investment in the Shares under applicable legal investment or similar
laws or regulations. In deciding to purchase the Shares, the undersigned is not relying on the advice or recommendations of the
Company and the undersigned has made its own independent decision that the investment in the Shares is suitable and appropriate
for the undersigned.

 

8.3
The Company plans to use the net proceeds of the Offering as working capital. The Company reserves the right to change the uses
of the proceeds of this Offering if unanticipated events or developments make it desirable for it to redirect its priorities and
reallocate the proceeds accordingly. We do not anticipate any other offering expenses in this Offering other than legal, accounting
and filing costs.

 

8.4
Accredited Investor Status.

 

(a)
Purchaser is an “accredited investor” as defined in Rule 501(a) under Regulation D of the Securities Act. Purchaser
agrees to furnish any additional information reasonably requested to assure compliance with applicable federal and State Securities
Laws in connection with the purchase and sale of the Shares and further acknowledges that it has completed the Accredited Investor
Questionnaire, attached hereto as Exhibit A and that the information contained therein is complete and accurate
as of the date thereof and is hereby affirmed as of the date of the Closing. Any information that has been furnished or that will
be furnished by Purchaser to evidence its status as an accredited investor is accurate and complete, and does not contain any
misrepresentation or material omission

 

(b)
Purchaser has such knowledge, skill, and experience in business, financial and investment matters so that it is capable of evaluating
the merits and risks of an investment in the Purchased Shares. To the extent necessary, it has retained, at its own expense, and
relied upon, appropriate professional advice regarding the investment, tax and legal merits and consequences of this Agreement
and owning the Purchased Shares. Purchaser has considered the suitability of the Purchased Shares as an investment in light of
its own circumstances and financial condition and the undersigned is able to bear the risks associated with an investment in the
Purchased Shares and its authority to invest in the Purchased Shares.

 

    	4

    	 

    

 

8.5
Purchase Transaction and Restrictions on Transfer or Sale of the Shares.

 

(a)
Purchaser is acquiring the Purchased Shares solely for its own beneficial account, for investment purposes, and not with a view
to, or for resale in connection with, any distribution of the Purchased Shares. Purchaser understands that the Purchased Shares
have not been registered under the Securities Act or any State Securities Laws by reason of specific exemptions under the provisions
thereof which depend in part upon the investment intent of Purchaser and of the other representations made by Purchaser in this
Agreement. Purchaser understands that the Company is relying upon the representations and agreements contained in this Agreement
(and any supplemental information) for the purpose of determining whether this transaction meets the requirements for such exemptions.

 

(b)
As of the Closing Purchaser will be purchasing the Purchased Shares based upon its own independent investigation and evaluation
of the Company and its prospects, and the covenants, representations, and warranties of the Company set forth herein. Purchaser
is expressly not relying on any oral representations made by the Company or any of its agents.

 

(c)
Purchaser understands that the Purchased Shares are “restricted securities” under applicable federal securities laws
and that (a) the Securities Act and the rules of the SEC provide in substance that Purchaser may dispose of the Purchased Shares
only pursuant to an effective registration statement under the Securities Act and all applicable state securities laws or in a
transaction which is exempt from the registration provisions of the Securities Act and all applicable State Securities Laws. As
a consequence, Purchaser understands that it must bear the economic risks of the investment in the Purchased Shares for an indefinite
period of time.

 

(d)
Purchaser has not offered or sold any portion of the Purchased Shares and has no present intention of dividing the Purchased Shares
with others or of reselling or otherwise disposing of any portion of the Purchased Shares.

 

(e)
Purchaser acknowledges that acknowledges that neither the Company nor any other person offered to sell the Purchased Shares to
it by means of any form of general solicitation or advertising, including but not limited to: (A) any advertisement, article,
notice or other communication published in any newspaper, magazine or similar media or broadcast over television or radio or (B)
any seminar or meeting whose attendees were invited by any general solicitation or general advertising.

 

(f)
Purchaser has not used any person as a “purchaser representative” within the meaning of SEC Regulation D to represent
it in determining whether it should purchase the Shares, unless otherwise specifically disclosed to, and acknowledged by, the
Company in writing.

 

9.
Obligations Irrevocable; Conditions Precedent. The obligations of Purchaser to effect the purchase hereunder shall be irrevocable,
except in the event of a breach of a material provision of this Agreement by the Company. Notwithstanding the foregoing, the obligation
of Purchaser to purchase the Shares is subject to satisfaction of the following conditions;

 

    	5

    	 

    

 

(a)
Purchaser shall have received evidence reasonably satisfactory to it that no Event of Default has occurred under the Company’s
Convertible Secured Promissory Notes dated October 24, 2014 and May 4, 2015 in favor of Hankey Capital, LLC.

 

(b)
The Company shall have received at least (a) $2,500,000 in gross proceeds from the sale of Shares pursuant to this Purchase Agreement,
and (b) $1,250,000 from the exercise of outstanding warrants at an exercise price of $1.58 per share.

 

10.
Legend. Each certificate for Purchased Shares will be imprinted with a legend in substantially the following form:

 

“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY STATE SECURITIES LAWS, AND MAY NOT BE SOLD OR TRANSFERRED OR OFFERED FOR SALE OR TRANSFER UNLESS A REGISTRATION
STATEMENT UNDER THE SECURITIES ACT AND OTHER APPLICABLE SECURITIES LAWS WITH RESPECT TO SUCH SECURITIES IS THEN IN EFFECT, OR
IN THE OPINION OF COUNSEL, SUCH REGISTRATION UNDER THE SECURITIES ACT AND OTHER APPLICABLE SECURITIES LAWS IS NOT REQUIRED.”

 

11.
Brokers. Purchaser has not entered into any agreement to pay any broker’s or finder’s fee to any Person with
respect to this Agreement or the transactions contemplated hereby. In the sole discretion of the Company it may retain brokers
and finders, the payment which, if any, will be the sole responsibility of the Company.

 

12.
Registration Rights.

 

12.1
Demand Registration Rights. One or more Purchasers (collectively, the “Demand Holder”) holding not less than
500,000 Shares, may make a written request, which request will specify the aggregate number of Shares to be registered and will
also specify the intended methods of disposition thereof (the “Request Notice”) to the Company for registration with
the SEC under and in accordance with the provisions of the Securities Act of all or part of the Shares then owned by the Demand
Holder (a “Demand Registration”). Upon any request for a Demand Registration, the Company will use commercially reasonable
efforts to effect the prompt registration under the Securities Act of the Shares which the company has been so requested to register
by the Demand Holder as contained in the Request Notice, all to the extent required to permit the disposition of the Shares so
to be registered in accordance with the intended method or methods of disposition of each seller of such Shares. The Company will
not be required to effect more than an aggregate of one Demand Registration. It shall be a condition precedent to the obligations
of the Company to take any action that Purchasers requesting inclusion in any registration shall furnish to the Company such information
regarding them, the Shares held by them, the intended method of disposition of such Shares and other matters as the Company shall
reasonably request and as shall be required in connection with the action to be taken by the Company. The obligations hereunder
shall expire at such time as the Shares may be sold to the pubic without registration without regard to the volume and manner
requirements under Rule 144.

 

13.
Additional Provisions.

 

13.1
Executed Counterparts. This Agreement may be executed in any number of counterparts, all of which when taken together shall
be considered one and the same agreement, it being understood that all Parties need not sign the same counterpart. In the event
that any signature is delivered by fax or by e-mail delivery of a “.pdf” format data file, such signature shall create
a valid and binding obligation of the Party executing (or on whose behalf such signature is executed) with the same force and
effect as if such facsimile or “.pdf” signature page were an original thereof. Each of the Parties hereby expressly
forever waives any and all rights to raise the use of a fax machine or E-Mail to deliver a signature, or the fact that any signature
or agreement or instrument was transmitted or communicated through the use of a fax machine or E-Mail, as a defense to the formation
of a contract.

 

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13.2
Successors and Assigns. Except as expressly provided in this Agreement, each and all of the covenants, terms, provisions,
conditions and agreements herein contained shall be binding upon and shall inure to the benefit of the successors and assigns
of the Parties hereto.

 

13.3
Article and Section Headings. The article and section headings used in this Agreement are inserted for convenience and
identification only and are not to be used in any manner to interpret this Agreement.

 

13.4
Severability. Each and every provision of this Agreement is severable and independent of any other term or provision of
this Agreement. If any term or provision hereof is held void or invalid for any reason by a court of competent jurisdiction, such
invalidity shall not affect the remainder of this Agreement.

 

13.5
Governing Law. This Agreement shall be governed by the laws of the State of Delaware, without giving effect to any choice
or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application
of the laws of any jurisdiction other than the State of Delaware. The laws of the State of Delaware shall only apply to the extent
necessary to comply with such law in light of the fact that the Company is a Delaware corporation. Each Party agrees that all
legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement (whether
brought against a Party or its respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced
exclusively in the state and federal courts sitting in the County of New Castle, Each Party hereby irrevocably submits to the
exclusive jurisdiction of the state and federal courts sitting in the County of New Castle, State of Delaware, for the adjudication
of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby
irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to
the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding.

 

13.6
Waiver of Jury Trial. PURCHASER IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY LEGAL PROCEEDING
ARISING OUT OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.

 

13.7
Entire Agreement. This Agreement, and all references, documents, or instruments referred to herein, contains the entire
agreement and understanding of the Parties hereto in respect to the subject matter contained herein. The Parties have expressly
not relied upon any promises, representations, warranties, agreements, covenants, or undertakings, other than those expressly
set forth or referred to herein. This Agreement supersedes any and all prior written or oral agreements, understandings, and negotiations
between the Parties with respect to the subject matter contained herein.

 

    	7

    	 

    

 

13.8
Additional Documentation. The Parties hereto agree to execute, acknowledge, and cause to be filed and recorded, if necessary,
any and all documents, amendments, notices, and certificates which may be necessary or convenient under the laws of the State
of Delaware.

 

13.9
Amendment. This Agreement may be amended or modified only by a writing signed by all Parties.

 

13.10
Remedies.

 

(a)
Specific Performance. The Parties hereby declare that it is impossible to measure in money the damages which will result
from a failure to perform any of the obligations under this Agreement. Therefore, each Party waives the claim or defense that
an adequate remedy at law exists in any action or proceeding brought to enforce the provisions hereof.

 

(b)
Cumulative. The remedies of the Parties under this Agreement are cumulative and shall not exclude any other remedies to
which any person may be lawfully entitled.

 

13.11
Waiver. No failure by any Party to insist on the strict performance of any covenant, duty, agreement, or condition of this
Agreement or to exercise any right or remedy on a breach shall constitute a waiver of any such breach or of any other covenant,
duty, agreement, or condition.

 

13.12
Assignability. This Agreement is not assignable by either Party without the expressed written consent of all other Parties.

 

13.13
Notices.

 

(a)
Method and Delivery. All notices, requests and demands hereunder shall be in writing and delivered by hand, by Electronic
Transmission, by mail, by telegram, or by recognized commercial over-night delivery service (such as Federal Express, UPS, or
DHL) to the address of the respective Party as set forth on the signature page hereto, and shall be deemed given (a) if by hand
delivery, upon such delivery; (b) if by Electronic Transmission, upon telephone confirmation of receipt of same; (c) if by mail,
forty eight (48) hours after deposit in the United States mail, first class, registered or certified mail, postage prepaid; (d)
if by telegram, upon telephone confirmation of receipt of same; or, (e) if by recognized commercial over-night delivery service,
upon such delivery.

 

(b)
Consent to Electronic Transmissions. Each Party hereby expressly consents to the use of Electronic Transmissions for communications
and notices under this Agreement. For purposes of this Agreement, “Electronic Transmissions” means a communication
(i) delivered by facsimile telecommunication or electronic mail when directed to the facsimile number or electronic mail address,
respectively, for that recipient on record with the sending Party; and, (ii) that creates a record that is capable of retention,
retrieval, and review, and that may thereafter be rendered into clearly legible tangible form.

 

13.14
Time. All Parties agree that time is of the essence as to this Agreement.

 

    	8

    	 

    

 

13.15
Provision Not Construed Against Party Drafting Agreement. This Agreement is the result of negotiations by and between the
Parties, and each Party has had the opportunity to be represented by independent legal counsel of its choice. In the event of
a dispute, no Party hereto shall be entitled to claim that any provision should be construed against any other Party by reason
of the fact that it was drafted by one particular Party.

 

13.16
Incorporation of Exhibits and Schedules. The Exhibits and Schedules identified in this Agreement are incorporated herein
by reference and made a part hereof as if set out in full herein.

 

13.17
Recitals. The facts recited in Section 2, above, are hereby conclusively presumed to be true as between and affecting the
Parties.

 

13.18
Consents, Approvals, and Discretion. Except as herein expressly provided to the contrary, whenever this Agreement requires
consent or approval to be given by a Party, or a Party must or may exercise discretion, the Parties agree that such consent or
approval shall not be unreasonably withheld, conditioned, or delayed, and such discretion shall be reasonably exercised.

 

13.19
Definitional Provisions. For purposes of this Agreement, (i) those words, names, or terms which are specifically defined
herein shall have the meaning specifically ascribed to them; (ii) wherever from the context it appears appropriate, each term
stated either in the singular or plural shall include the singular and plural; (iii) wherever from the context it appears appropriate,
the masculine, feminine, or neuter gender, shall each include the others; (iv) the words “hereof”, “herein”,
“hereunder”, and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole, and
not to any particular provision of this Agreement; (v) all references to designated “Articles”, “Sections”,
and to other subdivisions are to the designated Articles, Sections, and other subdivisions of this Agreement as originally executed;
(vi) all references to “Dollars” or “$” shall be construed as being United States dollars; (vii) the term
“including” is not limiting and means “including without limitation”; and, (viii) all references to all
statutes, statutory provisions, regulations, or similar administrative provisions shall be construed as a reference to such statute,
statutory provision, regulation, or similar administrative provision as in force at the date of this Agreement and as may be subsequently
amended.

 

13.20
Survival. All representations, warranties and covenants contained in this Agreement shall survive (i) the acceptance of
the subscription by the Company and the Closing, (ii) changes in the transactions, documents and instruments described in the
Offering Documents which are not material or which are to the benefit of the undersigned and (iii) the death or disability of
Purchaser.

 

13.21
Notification of Changes. Purchaser hereby covenants and agrees to notify the Company upon the occurrence of any event prior
to the closing of the purchase of the Purchased Shares pursuant to this Agreement which would cause any representation, warranty,
or covenant of the undersigned contained in this Agreement to be false or incorrect.

 

[Signature
Page follows]

 

    	9

    	 

    

 

PURCHASER
INFORMATION AND EXECUTION

 

Purchaser
hereby subscribes for such number of shares of Stock as set forth below and agrees to be bound by the terms and conditions of
this Agreement.

 

	 	1.	Purchaser
    Name:	 	Orthofix
    Inc.
	 	 	 	 	 
	 	2.	Purchaser’s
    Contact Info:	 	 
	 	 	 	Address:	 	Attention:	Bob
    Goodwin
	 	 	 	 	 	 	3451
    Plano Parkway
	 	 	 	 	 	 	Lewisville,
    TX 75056
	 	 	 	E-mail:	 	bobgoodwin@irthofix.com
	 	 	 	Phone:	 	440-251-0819
	 	 	 	Fax:	 	 
	 	 	 	 	 
	 	3.	Number
    of Shares Purchased:	 	487,804
	 	 	 	 	 
	 	4.	Total
    Purchase Price	 	$1,000,000

 

	/s/
    Doug Rice, CFO	 	 
	Signature
    of Purchaser	 	 
	(and
    title, if applicable)	 	 
	 	 	 
	75-2608036	 	 
	Taxpayer
    Identification or Social Security Number	 	 

 

	DATED:	2/19/2016	 	 

 

	Name
    as it should appear on Stock Certificate:	 	Orthofix,
    Inc.
	 	 	 
	ACCEPTED
    BY:	 	 
	 	 	 
	Bone
    Biologics Corporation, a Delaware corporation	 	 
	 	 	 
	By:	/s/
    Stephen R. LaNeve	 	 
	Name:	Stephen
    R. LaNeve	 	 
	Title:
    	Chief
    Executive Officer	 	 

 

	DATED:	2/22/16	 	 

 

	Company’s contact information:	 	Attention:	Deina Walsh

	 	 	Bone
    Biologics Corporation
	 	 	321
    Columbus Avenue
	 	 	Boston,
    Massachusetts 02116

	 	E-mail:	 	dwalsh@bonebiologics.com
	 	Phone:	 	585-775-7014
	 	Fax:	 	 

 

    	10Option
Agreement for the Distribution and Supply of SygnalTM

 

This
Option Agreement for the Distribution and Supply of SygnalTM (the “Agreement”) is made the 24th day
of February, 2016 (the “Effective Date”) by and between The Musculoskeletal Transplant Foundation, Inc., a District
of Columbia not-for-profit corporation located at 125 May Street, Edison, New Jersey 08837 (“MTF”) and Bone Biologics
Corporation, a Delaware corporation located at 321 Columbus Avenue, Boston, MA 02116 (“BBC”).

 

Whereas,
MTF is the sole owner of all intellectual property and other tangible and intangible rights of SygnalTM demineralized bone
matrix, U.S. Patent Number 9,138,509 (“Sygnal”) and

 

Whereas,
BBC has expertise in the field of regenerative medicine orthobiologics, including without limitation the application and uses
of demineralized bone matrix in patients; and

 

Whereas,
MTF desires to grant BBC the option to commercialize and distribute Sygnal and BBC desires to accept such Option on the terms
and conditions contained herein (the “Option”).

 

Now
Therefore, for mutual benefit, the parties agree as follows:

 

I.
Option Grant.

 

	 	(a)	MTF
    hereby grants to BBC, during the Term of this Agreement, the exclusive right and option to distribute Sygnal upon the Critical
    Terms set forth below (the “Option Rights”). BBC shall exercise the Option, if at all, by providing written notice
    to MTF of its intent to do so. During the Term, MTF agrees not to enter into any agreements with any third parties which include
    the transfer by MTF of the Option Rights. 
	 	 	 
	 	(b)	Upon
    the exercising of the Option, BBC shall grant to MTF 700,000 shares of restricted common stock in BBC. 
	 	 	 
	 	(c)	Within
    30 days of exercising the Option, MTF shall provide BBC with a written proposal of a Definitive Agreement that includes, inter
    alia, the Critical Terms and those other commercially reasonable terms as agreed upon by the parties. The parties shall
    fully negotiate in good faith all of the terms of the Definitive Agreement, and any ancillary agreements thereto consistent
    with the Critical Terms.
	 	 	 
	 	(d)	In
    the event BBC does not exercise the Option within the Term of this Option Agreement, MTF shall be free to enter into any other
    agreements relating to the Option Rights as it deems appropriate without liability to BBC.

 

II.
Critical Terms. The parties agree that the Definitive Agreement executed by the parties subsequent to the exercising of the
Option shall contain the following terms:

 

	 	(a)	BBC
    shall be the exclusive, worldwide distributor of Sygnal.
	 	 	 
	 	(b)	BBC
    shall take legal possession of Sygnal prior to distribution and all legal risk and obligation attendant to possession of human
    tissue shall be with BBC and not MTF.

 

    	 

    	 

    

 

	 	(c)	BBC
    shall take possession of Sygnal from MTF in its current development state. BBC shall be solely responsible for all development
    costs of Sygnal, including stability and packaging testing, prior to distribution of Sygnal. BBC shall meet all legal, regulatory
    and AATB requirements as a distributor of Sygnal. 
	 	 	 
	 	(d)	The
    parties shall negotiate the Transfer Price of Sygnal from MTF to BBC in good faith. The parties understand and agree that
    the Transfer Price shall be consistent with MTF’s obligations as a not-for-profit corporation and the parties intend
    that any transfer of Sygnal hereunder shall be in accordance with then-current market conditions and the proscription against
    private inurement as set forth under the non-profit laws and regulations at a Federal and State level.
	 	 	 
	 	(e)	MTF
    shall be the exclusive supplier of Sygnal to BBC. BBC may not distribute any Sygnal competitive tissue form without the prior
    written consent of MTF, which consent shall not be unreasonably withheld.
	 	 	 
	 	(f)	The
    parties shall provide customary indemnifications for each party’s respective conduct, including breach of contract,
    representations and warranties.

 

III.
Assignment of Rights. BBC may not assign this Agreement, in whole or in part, nor any of its rights or obligations hereunder
without the prior written consent of MTF and any such impermissible assignment shall be void. Notwithstanding the foregoing, the
parties agree as follows:

 

	 	(a)	Without
    the necessity of further approval, BBC may assign this Agreement to Hankey Capital, LLC (“HC”) in order to secure
    a loan from HC for $2M to fund BBC’s Nell-1 research project, and for no other reason (the “Loan”). Should
    this Agreement be used to collateralize the Loan, or any part of the Loan, BBC agrees that it will make best efforts to substitute
    alternative collateral for the Loan as soon as satisfactory substitute collateral, in HC’s sole discretion, is available.
    BBC must notify MTF in advance and in writing prior to any assignment to HC.

 

	 	a.	In
    the event of an assignment of this Agreement, or of the Definitive Agreement, to HC due to BBC’s default under the Loan,
    MTF agrees as follows:
	 	 	 	 
	 	 	i.	MTF
    shall use commercially reasonable efforts work directly with HC for the distribution or other commercialization of Sygnal.
    As used herein, commercially reasonable efforts shall include actions to evaluate, select, contract and launch Sygnal into
    the orthopedic marketplace and may which include entering into a strategic relationship for the distribution, sale or licensing
    of Sygnal.
	 	 	 	 
	 	 	ii.	Any
    proceeds from the distribution or commercialization of Sygnal will be applied first to pay off the then-existing Loan amount
    to HC, with the understanding that proceeds is calculated as sale price less Transfer Price paid to MTF.

 

    	 

    	 

    

 

	 	 	iii.	Upon
    the satisfaction of the Loan amount, MTF may (y) continue distribution of Sygnal to its sole benefit without further payment
    or liability to HC or (z) cease distribution of Sygnal, in its sole and absolute discretion.
	 	 	 	 
	 	 	iv.	HC
    and MTF will work in good faith to their mutual benefit for the distribution of Sygnal. 

 

	 	(b)	HC
    may, in turn, assign this Agreement to an unrelated third party, but only with the advance, written consent of MTF, which
    consent shall not be unreasonably withheld. In the event HC is compensated for such assignment, whether in cash or in kind
    and whether at the time of assignment or other, at greater than the then-current Loan balance, MTF shall receive such amount
    in excess of the Loan balance. If HC or its third party permitted assignee shall exercise the Option Rights hereunder, the
    assigned obligation of BBC share transfer set forth at I(b) hereof shall be waived. 

 

IV.
Term and Termination.

 

	 	(a)	The
    Term of this Agreement shall be 36 months from the Effective Date, unless terminated earlier in accordance with the terms
    hereof. The Term may be modified by written agreement of the parties.
	 	 	 
	 	(b)	If
    BBC shall assign this Agreement as collateral for a loan with HC, as detailed in section III hereof, this Agreement shall
    terminate upon (i) the repayment of the Loan by BBC; (ii) the substitution of collateral by BBC for this Agreement; or (iii)
    satisfaction of the Loan amount in accordance with III(a)a ii hereof. 

 

V.
Miscellaneous. The Option Agreement shall be governed by the laws of the State of New Jersey and all disputes related
hereto shall be determined in the courts of Middlesex County, New Jersey. This Agreement may only be modified by written consent
of the parties. This Agreement contains the entire agreement between the two parties. No oral agreements or conversation with
any officer or employee of either party shall affect or modify any of the terms and conditions of this Agreement. This Agreement
may be executed in one or more counterparts, each of which shall be enforceable as an original, but all of which together shall
constitute one and the same instrument.

 

	Musculoskeletal
    Transplant Foundation, Inc.	 	Bone
    Biologics Corporation

 

	By:	 /s/
    Michael Kawas	 	By:	 /s/
    Stephen R. LaNeve
	Name:	 Michael
    Kawas	 	Name:	 Stephen
    R. LaNeve
	Title:	 EVP/CFO	 	Title:	 CEO
	Date:	 February
    24, 2016	 	Date:	 February
    24, 2016

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