Document:

Exhibit
10.33

THIS
CONVERTIBLE PROMISSORY NOTE AND THE SECURITIES THAT MAY BE ACQUIRED PURSUANT TO
THIS CONVERTIBLE PROMISSORY NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE SECURITIES LAWS OF
ANY STATE OR OTHER JURISDICTION.  THIS
CONVERTIBLE PROMISSORY NOTE AND SUCH OTHER SECURITIES MAY NOT BE SOLD, OFFERED
FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF A
REGISTRATION STATEMENT AND LISTING APPLICATION IN EFFECT WITH RESPECT TO THIS
CONVERTIBLE PROMISSORY NOTE OR SUCH OTHER SECURITIES UNDER THE SECURITIES ACT
AND ANY OTHER APPLICABLE SECURITIES LAW, OR AN OPINION OF COUNSEL SATISFACTORY
TO THE COMPANY THAT SUCH REGISTRATION AND LISTING ARE NOT REQUIRED PURSUANT TO
A VALID EXEMPTION THEREFROM UNDER THE SECURITIES ACT AND THE APPLICABLE
SECURITIES LAW OF ANY STATE OR OTHER JURISDICTION.

FORM
OF CONVERTIBLE PROMISSORY NOTE

	
  US $2,000,000

  	
  As of September 20, 2004

  

 

FOR
VALUE RECEIVED, Osiris Therapeutics, Inc., a
Delaware corporation (the “Company”), having an address of 2001 Aliceanna
Street, Baltimore, MD 21231, hereby promises to pay to the order of             
(the “Holder”), at the offices of Holder at                              ,
or such other place as may be designated by Holder to the Company in writing,
the aggregate principal amount of Two Million U.S. Dollars
($2,000,000) together with premium and
accrued unpaid interest on the unpaid principal amount hereof, upon the terms
and conditions hereinafter set forth.

1.             Payment Terms. The Company promises to pay to
Holder the Final Payment Amount (as hereinafter defined), on September 20, 2008
(“Maturity Date”), unless this Note is earlier prepaid as herein provided or
earlier converted into Common Stock (as hereinafter defined) of the Company
pursuant to Section 3 hereof.  All
payments hereunder shall be made in lawful money of the United States of
America.  Payment shall be credited first
to the accrued interest then due and payable and the remainder to Principal.

(a)           “Final Payment Amount” means an
amount equal to the total unpaid principle of the Note plus any accrued and
unpaid interest, plus a premium calculated as follows:  (i) during the first full year of this Note,
5% of the unpaid Principal amount under this Note, (ii) during the second full
year of this Note, 10% of the unpaid Principal amount under this Note, (iii)
during the third full year of this Note, 15% of the unpaid Principal amount
under this Note or (iv) from and after the first business day of the fourth
full year of this Note, 20% of the unpaid Principal amount under this Note.

2.             Interest. 
Interest on the outstanding portion of Principal of this Note shall
accrue at a rate of five percent (5%) per annum.  All computations of interest shall be made on
the basis of a 365-day year for actual days elapsed.  Such interest shall be accrued over the
lifetime of the Note 

 

 

 

and be due and payable on
the Maturity Date, the Redemption Date or the Conversion Date (as hereinafter
defined). At the Holder’s option, interest is either payable in cash or a
number of Common Stock calculated according to the Note Conversion Rate.

3.             Conversion of this Note.

(a)           Conversion.  This Note shall automatically be converted
into shares of the Company’s common stock (“Common Stock”) at the Note
Conversion Rate (hereinafter defined) as hereinafter provided upon the closing
of a firm commitment underwritten public offering of the Company of not less
than USD 20 million (such closing an “IPO”) or anytime at the option of the
holder.  The date of such IPO or the date
the Company receives notice of the Holder exercising its option to convert this
Note, the “Conversion Date”.

(b)           Note Conversion Rate; Conversion
Price.  The number of shares of
Common Stock to which Holder shall be entitled upon such conversion specified
in Section 3(a) above shall be equal to the product of:  the Principal amount outstanding under this
Note on the Conversion Date, divided by USD 1.50 (“Note Conversion Rate”).  The conversion price payable by Holder upon
any such conversion hereunder shall be zero (0).

(c)           Mechanics of Automatic Conversion.  Upon the occurrence of the event specified in
Section 3(a) above, this Note shall be converted into Common Stock
automatically without any further action by Holder; provided, however, that the
Company shall not be obligated to issue a certificate or certificates
evidencing the shares of Common Stock issuable upon such conversion of this
Note (“Conversion Shares”) unless the original of this Note is delivered to the
Company, or Holder notifies the Company in writing that such original of this
Note has been lost, stolen or destroyed, and Holder executes an agreement
satisfactory to the Company to, among other things, indemnify the Company from
any loss incurred by the Company in connection with such original of this
Note.  Upon surrender by Holder to the
Company of the original of this Note at the office of the Company, there shall
be issued and delivered to Holder promptly at such office and in Holder’s name
as shown on the original of this Note, a certificate or certificates for the
applicable number of Conversion Shares on the Conversion Date.

(d)           Conversion Calculations; No
Fractional Shares.  Conversion
calculations pursuant to this Section 3 shall be rounded to the nearest
whole share of Common Stock, and no fractional shares shall be issuable by the
Company upon conversion of this Note. 
Conversion of this Note shall be deemed payment in full of this Note and
this Note shall thereupon be cancelled.

4.             Subordination. 
The indebtedness evidenced hereby is subordinate in right of payment to
all existing and future bank indebtedness, including lease and equipment
finance obligations, as well as all other indebtedness designated as superior
to that contemplated herein.  The
indebtedness represented hereby is senior in right of payment to all classes
and series of the Company’s capital stock. 
The indebtedness represented hereby is pari passu with any and all
convertible debt securities issued by the Company.

5.             Redemption. 
This Note may be redeemed by the Company at any time by payment of the
entire Final Payment Amount, in cash to Holder. 
The Company must provide notice to Holder not less than thirty (30) days
prior to effecting such redemption, the date such redemption is 

 

2

 

 

effected, the “Redemption
Date”.  During the period from providing
of such notice to Holder and the Redemption Date, the Company may cancel such
redemption by providing notice of such cancellation to Holder and the Holder
can still exercise his option to convert the Note into Common Stock according
to Section 3.

6.             Representations and Warranties of the Company.  The Company represents and warrants to Holder
as follows:

(a)           The execution and delivery by the
Company of this Note (i) are within the Company’s corporate power and
authority, and (ii) have been duly authorized by all necessary corporate
action.

(b)           This Note is a legally binding
obligation of the Company, enforceable against the Company in accordance with
the terms hereof, except to the extent that (i) such enforceability is limited
by bankruptcy, insolvency, reorganization, moratorium or other laws relating to
or affecting generally the enforcement of creditors’ rights and (ii) the availability
of the remedy of specific performance or in injunctive or other equitable
relief is subject to the discretion of the court before which any proceeding
therefore may be brought.

7.             Representations, Warranties and Covenants of Holder.  Holder represents and warrants to the
Company, and agrees, as follows:

(a)           This Note and any Conversion Shares
issuable upon conversion of this Note are being acquired by Holder for its own
account for investment and not with a view to, or for sale in connection with,
any distribution thereof.

(b)           Holder is an “accredited investor”
within the meaning of Rule 501 under the Securities Act.

(c)           Holder has sufficient knowledge and
experience in financial and business matters and is capable of evaluating the
risks and merits of Holder’s investment in the Company; Holder has been
provided all necessary and appropriate information about the Company to make an
informed investment decision with respect to this Note; has been provided the
opportunity to make all necessary and appropriate inquiries of the Company
regarding Company’s business and associated risks, and Company has complied
with all such requests; and Holder is able financially to bear the risk of
losing Holder’s full investment in this Note.

(d)           Holder understands that this Note and
any Conversion Shares (except in the case of Conversion Shares issued upon the
occurrence of an IPO) have not been and will not be registered under the
Securities Act or registered or qualified under any the securities laws of any
state or other jurisdiction, are “restricted securities,” and cannot be resold
or otherwise transferred unless they are registered under the Securities Act,
and registered or qualified under any other applicable securities laws, or an
exemption from such registration and qualification is available.  Prior to any proposed transfer of this Note
or any Conversion Shares (except in the case of Conversion Shares issued upon
the occurrence of an IPO), Holder shall, among other things, given written
notice to the Company of its intention to effect such transfer, identifying the
transferee and describing the manner of the proposed transfer and, if requested
by the Company, accompanied by (i) investment representations by the transferee
similar to those made by Holder 

 

3

 

in this Section 7 and
(ii) an opinion of counsel satisfactory to the Company to the effect that the
proposed transfer may be effected without registration under the Securities Act
and without registration or qualification under applicable state or other
securities laws.  Each certificate for
any Conversion Shares (except in the case of Conversion Shares issued upon the
occurrence of an IPO) shall bear a legend identical to that set forth on Page 1
of this Note.

8.             Use of Proceeds. 
The proceeds received by the Company from the sale of this Note shall be
used by the Company for working capital or other general corporate purposes.

9.             No Waiver in Certain Circumstances.  No course of dealing of Holder nor any failure
or delay by Holder to exercise any right, power or privilege under this Note
shall operate as a waiver hereunder and any single or partial exercise of any
such right, power or privilege shall not preclude any later exercise thereof or
any exercise of any other right, power or privilege hereunder.

10.           Certain Waivers by the Company.  Except as expressly provided otherwise in
this Note, the Company and every endorser or guarantor, if any, of this Note
waive presentment, demand, notice, protest and all other demands and notices in
connection with the delivery, acceptance, performance, default or enforcement
of this Note, and assent to any extension or postponement of the time of
payment or any other indulgence, to any substitution, exchange or release of collateral
available to Holder, if any, and to the addition or release of any other party
or person primarily or secondarily liable.

11.           No Unlawful Interest.  Notwithstanding anything herein to the
contrary, payment of any interest or other amount hereunder shall not be
required if such payment would be unlawful. 
In any such event, this Note shall automatically be deemed amended so
that interest charges and all other payments required hereunder, individually
and in the aggregate, shall be equal to but not greater than the maximum
permitted by law.

12.           Security Interest. 
The Company’s obligations under this Note are secured by a grant of a
security interest to Holder in all tangible and intangible assets of Company
for which Company retains sole title as of the date of this Note (the “Collateral”).  The security interest is subject to the
collaboration agreements between Boston Scientific Corporation and the
Company.  The Collateral includes all
equipment, fixtures, intellectual property (including patents), cash and cash
equivalents, software, personal property, and receivables.  Notwithstanding anything to the contrary
herein all (a) leases and other contracts, (b) licenses (including to software
and intellectual property), (c) the Company’s rights under such leases, other
contracts and licenses and (d) any property that is the subject of such leases,
other contracts and licenses, shall not constitute Collateral pursuant to this
Note.  In the case Company fails to materially
perform its repayment obligations under this Note, and such default is
continuing (“Default”), the Holder may exercise, without further notice, all
rights and remedies under this Note or are otherwise available at law.  In the case of such Default, the Holder will
give the Company not less than 30 business days prior written notice of its
intended disposition of the collateral, provided, however, if Company cures
such Default prior to expiration of such notice period, Default will be not
deemed to have occurred and Holder shall have no rights to the Collateral.  For the purpose of enforcing any and all
rights and remedies under this Agreement, the Holder may (i) require the
Company to, upon Holder’s reasonable request, assemble all or any part of the
Collateral as 

 

4

 

directed by the Holder and
make it available at the Company’s headquarters, (ii) to the extent permitted
by applicable law, enter, without breach of the peace, any premise where any
such Collateral is or may be located and, reasonably seize and remove such
Collateral from such premises, (iii) direct the Company to reasonably provide
relevant information from the Company’s books and records relating to the
Collateral, and (iv) prior to the disposition of any of the Collateral, store
or transfer the Collateral, process, repair or recondition such Collateral or
otherwise prepare it for disposition in any manner and to the extent the Holder
deems reasonably appropriate. 
Notwithstanding anything to the contrary herein, the Security Interest
granted hereby is expressly limited to the Final Payment Amount outstanding
under this Note and Holder shall exercise the foregoing rights in such a
fashion so as to minimize disruption to Company and its business operations and
only to the extent necessary to recover such unpaid Final Payment Amount.  The Holder and the Company shall work in good
faith to effectuate the intent of the previous sentence.  The security interest provided hereby shall
expire upon the payment in full of the Final Payment Amount or the occurrence
of the Conversion Date.  Holder will
execute any documents or instruments the Company may reasonably request to
evidence such expiration.

13.           Miscellaneous. 
No modification, rescission, waiver, forbearance, release or amendment
of any provision of this Note shall be made, except by a written agreement duly
executed by the Company and Holder.  This
Note may not be assigned by Holder without the prior written consent of the
Company.  The Company and Holder each
hereby submits to personal jurisdiction in the State of Maryland, consents to
the jurisdiction of any competent state or federal district court sitting in
the City or County of Montgomery County, Maryland, and waives any and all
rights to raise lack of personal jurisdiction as a defense in any action, suit
or proceeding in connection with this Note or any related matter.  This Note shall be governed by, and construed
and interpreted in accordance with, the laws of the State of Maryland, without
reference to conflicts of law provisions of such state.

[Remainder of this page
intentionally left blank]

 

5

 

IN
WITNESS WHEREOF, the undersigned have caused this Convertible
Promissory Note to be executed and delivered by a duly authorized officer as of
the date first above written.

 

Osiris Therapeutics, Inc.

 

By:                                                                                          

Name:  C. Randal Mills

Title:    President and CEO

 

6Exhibit
10.34

THIS
CONVERTIBLE PROMISSORY NOTE AND THE SECURITIES THAT MAY BE ACQUIRED PURSUANT TO
THIS CONVERTIBLE PROMISSORY NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE SECURITIES LAWS OF
ANY STATE OR OTHER JURISDICTION.  THIS
CONVERTIBLE PROMISSORY NOTE AND SUCH OTHER SECURITIES MAY NOT BE SOLD, OFFERED
FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF A
REGISTRATION STATEMENT AND LISTING APPLICATION IN EFFECT WITH RESPECT TO THIS
CONVERTIBLE PROMISSORY NOTE OR SUCH OTHER SECURITIES UNDER THE SECURITIES ACT
AND ANY OTHER APPLICABLE SECURITIES LAW, OR AN OPINION OF COUNSEL SATISFACTORY
TO THE COMPANY THAT SUCH REGISTRATION AND LISTING ARE NOT REQUIRED PURSUANT TO
A VALID EXEMPTION THEREFROM UNDER THE SECURITIES ACT AND THE APPLICABLE
SECURITIES LAW OF ANY STATE OR OTHER JURISDICTION.

FORM OF CONVERTIBLE PROMISSORY NOTE

March 30, 2008

	
  US $

  	
  , 2005

  

 

FOR
VALUE RECEIVED, Osiris Therapeutics, Inc., a
Delaware corporation (the “Company”), having an address of 2001 Aliceanna
Street, Baltimore, MD 21231, hereby promises to pay to the order of             
(the “Holder”), at the offices of Holder at            
or such other place as may be designated by Holder to the Company in writing,
the aggregate principal amount of            
U.S. Dollars ($            )
together with accrued and unpaid interest, upon the terms and conditions
hereinafter set forth.

1.             Payment Terms. 
The Company promises to pay to Holder the Final Payment Amount (as
hereinafter defined), on March 30, 2008
(“Maturity Date”), unless this Note is earlier prepaid as herein provided or
earlier converted into Common Stock (as hereinafter defined) of the Company
pursuant to Section 3 hereof. 
All payments hereunder shall be made in lawful money of the United
States of America.  Payment shall be
credited first to the accrued interest then due and payable and the remainder
to Principal.

(a)           “Final Payment Amount” means an
amount equal to the total unpaid principle of the Note plus any accrued and
unpaid interest.

2.             Interest. 
Interest on the outstanding portion of Principal of this Note shall be
paid yearly at a rate of six percent (6%) per
annum.  All computations of
interest shall be made on the basis of a 360-day year for actual days
elapsed.  All accrued interest shall be
due and payable on the Maturity Date, the Redemption Date or the Conversion
Date (as hereinafter defined).  At the
Holder’s option, interest is either payable in cash or a number of Common Stock
calculated according to the Note Conversion Rate.

 

 

 

3.             Conversion of this Note.

(a)           Conversion.  This Note shall automatically be converted
into shares of the Company’s common stock (“Common Stock”) at the Note
Conversion Rate (hereinafter defined) as hereinafter provided upon the closing
of a firm commitment underwritten public offering of the Company of not less
than USD 25 million (such closing an “IPO”) or anytime at the option of the
holder.  The date of such IPO or the date
the Company receives notice of the Holder exercising its option to convert this
Note, is the “Conversion Date”.

(b)           Note Conversion Rate; Conversion
Price.  In case of an IPO, the number
of shares of Common Stock to which Holder shall be entitled upon such
conversion specified in Section 3(a) above shall be equal to the
product of:  the Principal amount
outstanding under this Note on the Conversion Date, divided by:  85% of the IPO price if the IPO takes place
before March 30, 2006; 80% of the IPO price if the IPO takes place after
March 30, 2006 but before March 30, 2007; 75% of the IPO price if the
IPO takes place after March 30, 2007. 
In case of a conversion at the option of the Holder, the number of
shares of Common Stock to which the Holder shall be entitled upon such conversion
specified in Section 3(a) above shall be equal to the product
of:  the Principle amount outstanding
under this Note on the Conversion Date, divided by USD 2.00. (“Note Conversion
Rate”).  The conversion price payable by
Holder upon any such conversion hereunder shall be zero (0).

(c)           Mechanics of Automatic Conversion.  Upon the occurrence of the event specified in
Section 3(a) above, this Note shall be converted into Common Stock
automatically without any further action by Holder; provided, however, that the
Company shall not be obligated to issue a certificate or certificates
evidencing the shares of Common Stock issuable upon such conversion of this
Note (“Conversion Shares”) unless the original of this Note is delivered to the
Company, or Holder notifies the Company in writing that such original of this
Note has been lost, stolen or destroyed, and Holder executes an agreement
satisfactory to the Company to, among other things, indemnify the Company from
any loss incurred by the Company in connection with such original of this
Note.  Upon surrender by Holder to the
Company of the original of this Note at the office of the Company, there shall
be issued and delivered to Holder promptly at such office and in Holder’s name
as shown on the original of this Note, a certificate or certificates for the
applicable number of Conversion Shares on the Conversion Date.

(d)           Conversion Calculations: No
Fractional Shares.  Conversion
calculations pursuant to this Section 3 shall be rounded to the
nearest whole share of Common Stock, and no fractional shares shall be issuable
by the Company upon conversion of this Note. 
Conversion of this Note shall be deemed payment in full of this Note and
this Note shall thereupon be cancelled.

4.             Subordination. 
The indebtedness evidenced hereby is subordinate in right of payment to
all existing and future bank indebtedness, including lease and equipment
finance obligations, as well as all other indebtedness designated as superior
to that contemplated herein.  The
indebtedness represented hereby is senior in right of payment to all classes
and series of the Company’s capital stock. 
The indebtedness represented hereby is pari passu with any and all
convertible debt securities issued by the Company.

 

2

 

5.             Redemption. 
This Note may be redeemed by the Company at any time by payment of the
entire Final Payment Amount, in cash to Holder. 
The Company must provide notice to Holder not less than thirty (30) days
prior to effecting such redemption, the date such redemption is effected, the “Redemption
Date”.  During the period from providing
of such notice to Holder and the Redemption Date, the Company may cancel such
redemption by providing notice of such cancellation to Holder and the Holder
can still exercise his option to convert the Note into Common Stock according
to Section 3.

6.             Anti-dilution. 
If the Corporation executes a stock split, reverse stock split,
re-capitalization, dividends or other distribution in cash or shares on Common
Stocks or reclassify all or part of its outstanding Common Stocks (“Dilution
Transactions”), the Note Conversion Rate specified in Section 3(b)
above shall be proportionately adjusted so that the Holder of the Note
thereafter surrendered for conversion shall be entitled to receive the number
and kind of shares of Common Stock that such Holder would have owned or have
been entitled to receive immediately prior to the happening of a Dilution
Transaction.

7.             Representations and Warranties of the Company.  The Company represents and warrants to Holder
as follows:

(a)           The execution and delivery by the
Company of this Note (i) are within the Company’s corporate power and
authority, and (ii) have been duly authorized by all necessary corporate
action.

(b)           This Note is a legally binding
obligation of the Company, enforceable against the Company in accordance with
the terms hereof, except to the extent that (i) such enforceability is
limited by bankruptcy, insolvency, reorganization, moratorium or other laws relating
to or affecting generally the enforcement of creditors’ rights and
(ii) the availability of the remedy of specific performance or in
injunctive or other equitable relief is subject to the discretion of the court
before which any proceeding therefore may be brought.

8.             Representations, Warranties and Covenants of Holder.  Holder represents and warrants to the
Company, and agrees, as follows:

(a)           This Note and any Conversion Shares
issuable upon conversion of this Note are being acquired by Holder for its own
account for investment and not with a view to, or for sale in connection with,
any distribution thereof.

(b)           Holder is an “accredited investor”
within the meaning of Rule 501 under the Securities Act.

(c)           Holder has sufficient knowledge and
experience in financial and business matters and is capable of evaluating the
risks and merits of Holder’s investment in the Company; Holder has been
provided all necessary and appropriate information about the Company to make an
informed investment decision with respect to this Note; has been provided the
opportunity to make all necessary and appropriate inquiries of the Company
regarding Company’s business and associated risks, and Company has complied
with all such requests; and Holder is able financially to bear the risk of
losing Holder’s full investment in this Note.

 

3

 

(d)           Holder understands that this Note and
any Conversion Shares (except in the case of Conversion Shares issued upon the
occurrence of an IPO) have not been and will not be registered under the
Securities Act or registered or qualified under any the securities laws of any
state or other jurisdiction, are “restricted securities,” and cannot be resold
or otherwise transferred unless they are registered under the Securities Act,
and registered or qualified under any other applicable securities laws, or an
exemption from such registration and qualification is available.  Prior to any proposed transfer of this Note
or any Conversion Shares (except in the case of Conversion Shares issued upon
the occurrence of an IPO), Holder shall, among other things, give written
notice to the Company of its intention to effect such transfer, identifying the
transferee and describing the manner of the proposed transfer and, if requested
by the Company, accompanied by (i) investment representations by the
transferee similar to those made by Holder in this Section 7 and
(ii) an opinion of counsel satisfactory to the Company to the effect that
the proposed transfer may be effected without registration under the Securities
Act and without registration or qualification under applicable state or other
securities laws.  Each certificate for
any Conversion Shares (except in the case of Conversion Shares issued upon the
occurrence of an IPO) shall bear a legend identical to that set forth on
Page 1 of this Note.

9.             Use of Proceeds. 
The proceeds received by the Company from the sale of this Note shall be
used by the Company for working capital or other general corporate purposes.

10.           No Waiver in Certain Circumstances.  No course of dealing of Holder nor any
failure or delay by Holder to exercise any right, power or privilege under this
Note shall operate as a waiver hereunder and any single or partial exercise of
any such right, power or privilege shall not preclude any later exercise
thereof or any exercise of any other right, power or privilege hereunder.

11.           Certain Waivers by the Company.  Except as expressly provided otherwise in
this Note, the Company and every endorser or guarantor, if any, of this Note
waive presentment, demand, notice, protest and all other demands and notices in
connection with the delivery, acceptance, performance, default or enforcement
of this Note, and assent to any extension or postponement of the time of payment
or any other indulgence, to any substitution, exchange or release of collateral
available to Holder, if any, and to the addition or release of any other party
or person primarily or secondarily liable.

12.           No Unlawful Interest.  Notwithstanding anything herein to the
contrary, payment of any interest or other amount hereunder shall not be
required if such payment would be unlawful. 
In any such event, this Note shall automatically be deemed amended so
that interest charges and all other payments required hereunder, individually
and in the aggregate, shall be equal to but not greater than the maximum
permitted by law.

13.           Security Interest. 
The Company’s obligations under this Note are secured by a grant of a
security interest to Holder in all tangible and intangible assets of Company
for which Company retains sole title as of the date of this Note (the “Collateral”).  The security interest is subject to the
collaboration agreements between Boston Scientific Corporation and the
Company.  The Collateral includes all
equipment, fixtures, intellectual property (including patents), cash and cash
equivalents, software, personal property, and receivables.  Notwithstanding anything to the contrary
herein all (a) leases and other contracts, (b) licenses (including to
software and 

 

4

 

intellectual property),
(c) the Company’s rights under such leases, other contracts and licenses
and (d) any property that is the subject of such leases, other contracts
and licenses, shall not constitute Collateral pursuant to this Note.  In the case Company fails to materially
perform its repayment obligations under this Note, and such default is
continuing (“Default”), the Holder may exercise, without further notice, all
rights and remedies under this Note or are otherwise available at law.  In the case of such Default, the Holder will
give the Company not less than 30 business days prior written notice of its
intended disposition of the collateral, provided, however, if Company cures
such Default prior to expiration of such notice period, Default will be not
deemed to have occurred and Holder shall have no rights to the Collateral.  For the purpose of enforcing any and all
rights and remedies under this Agreement, the Holder may (i) require the
Company to, upon Holder’s reasonable request, assemble all or any part of the
Collateral as directed by the Holder and make it available at the Company’s
headquarters, (ii) to the extent permitted by applicable law, enter,
without breach of the peace, any premise where any such Collateral is or may be
located and, reasonably seize and remove such Collateral from such premises,
(iii) direct the Company to reasonably provide relevant information from
the Company’s books and records relating to the Collateral, and (iv) prior
to the disposition of any of the Collateral, store or transfer the Collateral,
process, repair or recondition such Collateral or otherwise prepare it for
disposition in any manner and to the extent the Holder deems reasonably appropriate.  Notwithstanding anything to the contrary
herein, the Security Interest granted hereby is expressly limited to the Final
Payment Amount outstanding under this Note and Holder shall exercise the
foregoing rights in such a fashion so as to minimize disruption to Company and
its business operations and only to the extent necessary to recover such unpaid
Final Payment Amount.  The Holder and the
Company shall work in good faith to effectuate the intent of the previous
sentence.  The security interest provided
hereby shall expire upon the payment in full of the Final Payment Amount or the
occurrence of the Conversion Date. 
Holder will execute any documents or instruments the Company may
reasonably request to evidence such expiration.

14.           Lock up.  In
case of an IPO the Holder shall be obliged to sign any lock up agreements which
may be requested by the underwriters of such an IPO and all the shareholder
receive upon automatic conversion specified in Section 3(a) above shall be
subject to such lock up agreement.

15.           Miscellaneous. 
No modification, rescission, waiver, forbearance, release or amendment
of any provision of this Note shall be made, except by a written agreement duly
executed by the Company and Holder.  This
Note may not be assigned by Holder without the prior written consent of the
Company.  The Company and Holder each
hereby submits to personal jurisdiction in the State of Maryland, consents to
the jurisdiction of any competent state or federal district court sitting in
the City or County of Montgomery County, Maryland, and waives any and all
rights to raise lack of personal jurisdiction as a defense in any action, suit
or proceeding in connection with this Note or any related matter.  This Note shall be governed by, and construed
and interpreted in accordance with, the laws of the State of Maryland, without
reference to conflicts of law provisions of such state.

[Remainder of this page intentionally left
blank]

 

5

 

IN
WITNESS WHEREOF, the undersigned have caused this Convertible Promissory Note
to be executed and delivered by a duly authorized officer as of the date first
above written.

	
   

  	
  Osiris Therapeutics, Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name: C. Randal Mills

  
	
   

  	
  Title: Pres/CEO

  

 

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]