Document:

2004 Stock Option Plan and form of option agreement

 Exhibit 10.2 
 ADVANCED BIOHEALING, INC. 
 2004 STOCK OPTION PLAN

  

	 	1.	Purpose. 

 The purpose of
this plan (the “Plan”) is to secure for Advanced BioHealing, Inc. (the “Company”) and its shareholders the benefits arising from capital stock ownership by employees, officers and directors of, and consultants or advisors to, the
Company and its parent and subsidiary corporations who are expected to contribute to the Company’s future growth and success. Except where the context otherwise requires, the term “Company” shall include the parent and all present and
future subsidiaries of the Company as defined in Sections 424(e) and 424(f) of the Internal Revenue Code of 1986, as amended or replaced from time to time (the “Code”). Those provisions of the Plan which make express reference to
Section 422 shall apply only to Incentive Stock Options (as that term is defined in the Plan). 
  

	 	2.	Type of options and Administration. 

 (a) Types of Options. Options granted pursuant to the Plan shall be authorized by action of the Board of Directors of the Company (or a Committee designated by the Board of Directors) and may be
either incentive stock options (“Incentive Stock Options”) meeting the requirements of Section 422 of the Code or nonstatutory options which are not intended to meet the requirements of Section 422 of the Code. 

(b) Administration. The Plan will be administered by the Board of Directors of the Company, whose construction and interpretation
of the terms and provisions of the Plan shall be final and conclusive. The Board of Directors may in its sole discretion grant options to purchase shares of the Company’s Common Stock (“Common Stock”) and issue shares upon exercise of
such options as provided in the Plan. The Board shall have authority, subject to the express provisions of the Plan, to construe the respective option agreements and the Plan, to prescribe, amend and rescind rules and regulations relating to the
Plan, to determine the terms and provisions of the respective option agreements, which need not be identical, and to make all other determinations in the judgment of the Board of Directors necessary or desirable for the administration of the Plan.
The Board of Directors may correct any defect or supply any omission or reconcile any inconsistency in the Plan or in any option agreement in the manner and to the extent it shall deem expedient to carry the Plan into effect and it shall be the sole
and final judge of such expediency. No director or person acting pursuant to authority delegated by the Board of Directors shall be liable for any action or determination under the Plan made in good faith. To the extent permitted by applicable law,
the Board of Directors may delegate any or all of its powers under the Plan to one or more committees or subcommittees of the Board of Directors (a “Committee”). If and when the Common Stock is registered under the Securities Exchange Act
of 1934 (the “Exchange Act”) the Board of Directors shall appoint one such Committee of not less than two members, each member of which shall be an “outside director” within the meaning of Section 162(m) of the Code and a
“nonemployee director” as defined in Rule 16b-3 promulgated under the Exchange Act). All references in the Plan to the Board of Directors shall mean the Board of Directors or a Committee of the Board of Directors to the extent that the
Board’s powers or authority under the Plan have been delegated to such Committee. 

	 	3.	Eligibility. 

 Options may
be granted to persons who are, at the time of grant, employees, officers or directors of, or consultants or advisors to, the Company; provided, that the class of employees to whom Incentive Stock Options may be granted shall be limited to all
employees of the Company. A person who has been granted an option may, if he or she is otherwise eligible, be granted additional options if the Board of Directors shall so determine. 

 

	 	4.	Stock Subject to Plan. 

Subject to adjustment as provided in Section 15 below, the maximum number of shares of Common Stock of the Company which may be
issued and sold under the Plan is 479,238 shares. If an option granted under the Plan shall expire or terminate for any reason without having been exercised in full, the unpurchased shares subject to such option shall again be available for
subsequent option grants under the Plan. If shares issued upon exercise of an option under the Plan are tendered to the Company in payment of the exercise price of an option granted under the Plan, such tendered shares shall again be available for
subsequent option grants under the Plan; provided, that in no event shall such shares be made available pursuant to exercise of Incentive Stock Options. 
  

	 	5.	Forms of Option Agreements. 

 As a condition to the grant of an option under the Plan, each recipient of an option shall execute an option agreement in such form not inconsistent with the Plan as may be approved by the Board of
Directors. Such option agreements may differ among recipients. 
  

	 	6.	Purchase Price. 

 (a)
General. The purchase price per share of stock deliverable upon the exercise of an option shall be determined by the Board of Directors. provided. however, that in the case of an Incentive Stock Option, the exercise price shall not be less
than 100% of the fair market value of such stock, as determined by the Board of Directors. At the time of grant of such option. or less than 110% of such fair market value in the case of options described in Section 11 (b). 

(b) Payment of Purchase Price. Options granted under the Plan may provide for the payment of the exercise price by delivery of
cash or a check to the order of the Company in an amount equal to the exercise price of such options, or, to the extent provided in the applicable option agreement, (i) by delivery to the Company of shares of Common Stock of the Company already
owned by the optionee having a fair market value equal in amount to the exercise price of the options being exercised, (ii) by any other means (including, without limitation, by delivery of a promissory note of the optionee payable on such
terms as are specified by the Board of Directors) which the Board of Directors determines are consistent with the purpose of the Plan and with applicable laws and regulations (including, without’ limitation, the provisions of Rule

 
16b-3 and Regulation T promulgated by the Federal Reserve Board) or (iii) by any combination of such methods of payment. The fair market value of any shares of the Company’s Common
Stock or other non-cash consideration which may be delivered upon exercise of an option shall be determined by the Board of Directors. 
  

	 	7.	Option Period. 

 Each
option and all rights thereunder shall expire on such date as shall be set forth in the applicable option agreement, except that, in the case of an Incentive Stock Option, such date shall not be later than ten years after the date on which the
option is granted and, in all cases, options shall be subject to earlier termination as provided in the Plan. 
  

	 	8.	Exercise of Options. 

Each option granted under the Plan shall be exercisable either in full or in installments at such time or times and during such period as
shall be set forth in the agreement evidencing such option, subject to the provisions of the Plan. 
  

	 	9.	Nontransferability of Options. 

 Except as the Board of Directors may otherwise determine or provide in an option, options shall not be assignable or transferable by the person to whom they are granted, either voluntarily or by operation
of law, except by will or the laws of descent and distribution, and, during the life of the optionee, shall be exercisable only by the optionee; provided, however, that non-statutory options may be transferred pursuant to a qualified domestic
relations order (as defined in Code Section 414(p)). 
  

	 	10.	Effect of Termination of Employment or Other Relationship. 

 Subject to the provisions of the Plan, the Board of Directors shall determine the period of time during which an optionee may exercise an option following (i) the termination of the optionee’s
employment or other relationship with the Company or (ii) the death or disability of the optionee. Such periods shall be set forth in the agreement evidencing such option. 

 

	 	11.	Incentive Stock Options. 

Options granted under the Plan which are intended to be Incentive Stock Options shall be subject to the following additional terms and
conditions: 
 (a) Express Designation. All Incentive Stock Options granted under the Plan shall, at the time of grant,
be specifically designated as such in the option agreement covering such Incentive Stock Options. 
 (b) 10% Shareholder.
If any employee to whom an Incentive Stock Option is to be granted under the Plan is, at the time of the grant of such option, the owner of stock possessing more than 10% of the total combined voting power of all classes of stock of the Company
(after 

 
taking into account the attribution of stock ownership rules of Section 424(d) of the Code), then the following special provisions shall be applicable to the Incentive Stock Option granted
to such individual: 
 (i) the purchase price per share of the Common Stock subject to such Incentive Stock Option shall not be
less than 110% of the fair market value of one share of Common Stock at the time of grant; and 
 (ii) the option exercise
period shall not exceed five .years from the date of grant. 
 (c) Dollar Limitation. For so long as the Code shall so
provide, options granted to any employee under the Plan (and any other incentive stock option plans of the Company) which are intended to constitute Incentive Stock Options shall not constitute Incentive Stock Options to the extent that such
options, in the aggregate, become exercisable for the first time in anyone calendar year for shares of Common Stock with an aggregate fair market value (determined as of the respective date or dates of grant) of more than $100,000. 

(d) Termination of Employment, Death or Disability. No Incentive Stock Option may be exercised unless, at the time of such
exercise, the optionee is, and has been continuously since the date of grant of his or her option, employed by the Company, except that: 
 (i) an Incentive Stock Option may be exercised within the period of three months after the date the optionee ceases to be an employee of the Company (or within such lesser period as may be specified in
the applicable option agreement); provided, that the agreement with respect to such option may designate a longer exercise period and that the exercise after such three-month period shall be treated as the exercise of a nonstatutory option under the
Plan; 
 (ii) if the optionee dies while in the employ of the Company, or within three months after the optionee ceases to be
such an employee, the Incentive Stock Option may be exercised by the person to whom it is transferred by will or the laws of descent and distribution within the period of one year after the date of death (or within such lesser period as may be
specified in the applicable option agreement); and 
 (iii) if the optionee becomes disabled (within the meaning of
Section 22(e)(3) of the Code or any successor provision thereto) while in the employ of the Company, the Incentive Stock Option may be exercised within the period of one year after the date the optionee ceases to be such an employee because of
such disability (or within such lesser period as may be specified in the applicable option agreement). 
 For all purposes of
the Plan and any option granted hereunder, “employment” shall be defined in accordance with the provisions of Section 1.421-7(h) of the Income Tax Regulations (or any successor regulations). Notwithstanding the foregoing provisions,
no Incentive Stock Option may be exercised after its expiration date. 

	 	12.	Additional Provisions. 

(a) Additional Option Provisions. The Board of Directors may, in its sole discretion, include additional provisions in option
agreements covering options granted under the Plan, including without limitation restrictions on transfer, repurchase rights, commitments to pay cash bonuses, to make, arrange for or guaranty loans or to transfer other property to optionees upon
exercise of options, or such other provisions as shall be determined by the Board of Directors; provided that such additional provisions shall not be inconsistent with any other term or condition of the Plan and such additional provisions shall not
cause any Incentive Stock Option granted under the Plan to fail to qualify as an Incentive Stock Option within the meaning of Section 422 of the Code. 
 (b) Acceleration, Extension, Etc. The Board of Directors may, in its sole discretion, (i) accelerate the date or dates on which all or any particular option or options granted under the Plan
may be exercised or (ii) extend the dates during which all, or any particular, option or options granted under the Plan may be exercised; provided, however, that no such extension shall be permitted if it would cause the Plan to fail to comply
with Section 422 of the Code. 
  

	 	l3.	General Restrictions. 

(a) Investment Representations. The Company may require any person to whom an option is granted, as a condition of exercising such
option, to give written assurances in substance and form satisfactory to the Company to the effect that such person is acquiring the Common Stock subject to the option for his or her own account for investment and not with any present intention of
selling or otherwise distributing the same, and to such other effects as the Company deems necessary or appropriate in order to comply with federal and applicable state securities laws, or with covenants or representations made by the Company in
connection with any public offering of its Common Stock. 
 (b) Compliance With Securities Laws. Each option shall be
subject to the requirement that if, at any time, counsel to the Company shall determine that the listing, registration or qualification of the shares subject to such option upon any securities exchange or under any state or federal law, or the
consent or approval of any governmental or regulatory body, or that the disclosure of non-public information~ or the satisfaction of any other condition is necessary as a condition of, or in connection with, the issuance or purchase of shares
thereunder, such option may not be exercised, in whole or in part, unless such listing, registration, qualification, consent or approval, or satisfaction of such condition shall have been effected or obtained on conditions acceptable to the Board of
Directors. Nothing herein shall be deemed to require the Company to apply for or to obtain such listing, registration or qualification, or to satisfy such condition. 
  

	 	14.	Rights as a Shareholder. 

The holder of an option shall have no rights as a shareholder with respect to any shares covered by the option (including, without
limitation, any rights to receive dividends or non-cash distributions with respect to such shares) until the date of issue of a stock certificate to him or her for such shares. No adjustment shall be made for dividends or other rights for which the
record date is prior to the date such stock certificate is issued. 

	 	15.	Adjustment Provisions for Recapitalizations and Related Transactions. 

 (a) General. If, through or as a result of any merger, consolidation, sale of all or substantially all of the assets of the Company, reorganization, recapitalization, reclassification, stock
dividend, stock split, reverse stock split or other similar transaction, (i) the outstanding shares of Common Stock are increased, decreased or exchanged for a different number or kind of shares or other securities of the Company, or
(ii) additional shares or new or different shares or other securities of the Company or other non-cash assets are distributed with respect to such shares of Common Stock or other securities, an appropriate and proportionate adjustment shall be
made in (x) the maximum number and kind of shares reserved for issuance under the Plan, (y) the number and kind of shares or other securities subject to any then outstanding options under the Plan, and (z) the price for each share
subject to any then outstanding options under the Plan, without changing the aggregate purchase price as to which such options remain exercisable. Notwithstanding the foregoing, no adjustment shall be made pursuant to this Section 15 if such
adjustment would cause the Plan to fail to comply with Section 422 of the Code. If this Section 15 applies and Section 16 also applies to any event, then Section 16 shall be applicable to such event and this Section 15 shall
not be applicable. 
 (b) Board Authority to Make Adjustments. Any adjustments under this Section 15 will be made by
the Board of Directors, whose determination as to what adjustments, if any, will be made and the extent thereof will be final, binding and conclusive. No fractional shares will be issued under the Plan on account of any such adjustments. 

 

	 	16.	Merger, Consolidation, Asset Sale, Liquidation, etc. 

 (a) General. Subject to Section 16(b), upon the occurrence of an Acquisition Event (as defined below), or the execution by the Company of any agreement with respect to an Acquisition Event,
the Board of Directors shall take anyone or more of the following actions with respect to then outstanding options: (i) provide that such options shall be assumed, or equivalent options shall be substituted, by the acquiring or succeeding
corporation (or an affiliate thereof), provided that any such options substituted for Incentive Stock Options shall meet the requirements of Section 424(a) of the Code, (ii) upon written notice to the optionees, provide that all then
unexercised options will become exercisable in full as of a specified time (the “Acceleration Time”) prior to the Acquisition Event and will terminate immediately prior to the consummation of such Acquisition Event, except to the extent
exercised by the optionees between the Acceleration Time and the consummation of such Acquisition Event, (iii) in the event of a merger under the terms of which holders of the Common Stock of the Company will receive upon consummation thereof a
cash payment for each share surrendered in the merger (the “Merger Price”), make or provide for a cash payment to the optionees equal to the difference between (A) the Merger Price times the number of shares of Common Stock subject to
such outstanding options (whether or not then exercisable at prices not in excess of the Merger Price) and (B) the aggregate exercise price of all such outstanding options in exchange for the termination of such options, and (iv) provide
that all or any outstanding options shall become exercisable in full immediately prior to such event. An “Acquisition Event” shall mean: (a) any merger or consolidation which results in the voting securities of the Company outstanding
immediately prior thereto representing immediately thereafter (either by remaining outstanding 

 
or by being converted into voting securities of the surviving or acquiring entity) less than 50% of the combined voting power of the voting securities of the Company or such surviving or
acquiring entity outstanding immediately after such merger or consolidation, (b) any sale of all or substantially all of the assets of the Company, or ( c) the complete liquidation of the Company. 

(b) Substitute Options. The Company may grant options under the Plan in substitution for options held by employees of another
corporation who become employees of the Company, or a subsidiary of the Company, as the result of a merger or consolidation of the employing corporation with the Company or a subsidiary of the Company, or as a result of the acquisition by the
Company, or one of its subsidiaries, of property or stock of the employing corporation. The Company may direct that substitute options be granted on such terms and conditions as the Board of Directors considers appropriate in the circumstances.

  

	 	17.	No Special Employment Rights. 

 Nothing contained in the Plan or in any option shall confer upon any optionee any right with respect to the continuation of his or her employment by the Company or interfere in any way with the right of
the Company at any time to terminate such employment or to increase or decrease the compensation of the optionee. 
  

	 	18.	Other Employee Benefits. 

Except as to plans which by their terms include such amounts as compensation, the amount of any compensation deemed to be received by an
employee as a result of the exercise of an option or the sale of shares received upon such exercise will not constitute compensation with respect to which any other employee benefits of such employee are determined, including, without limitation,
benefits under any bonus, pension, profit sharing, life insurance or salary continuation plan, except as otherwise specifically determined by the Board of Directors. 
  

	 	19	Amendment of the Plan. 

(a) The Board of Directors may at anytime, and from time to time, modify or amend the Plan in any respect, except that if at any time the
approval of the shareholders of the Company is required under Section 422 of the Code or any successor provision with respect to Incentive Stock Options, the Board of Directors may not effect such modification or amendment without such
approval. 
 (b) The termination or any modification or amendment of the Plan shall not, without the consent of an optionee,
affect his or her rights under an option previously granted to him or her. With the consent of the optionee affected, the Board of Directors may amend outstanding option agreements in a manner not inconsistent with the Plan. The Board of Directors
shall have the right to amend or modify the terms and provisions of the Plan and of any outstanding Incentive Stock Options granted under the Plan to the extent necessary to qualify any or all such options for such favorable federal income tax
treatment (including deferral of taxation upon exercise) as may be afforded incentive stock options under Section 422 of the Code. 

	 	20.	Withholding. 

 The Company
shall have the right to deduct from payments of any kind otherwise due to the optionee any federal, state or local taxes of any kind required by law to be withheld with respect to any shares issued upon exercise of options under the Plan. Subject to
the prior approval of the Company, which may be withheld by the Company in its sole discretion, the optionee may elect to satisfy such obligations, in whole or in part, (i) by causing the Company to withhold shares of Common Stock otherwise
issuable pursuant to the exercise of an option or (ii) by delivering to the Company shares of Common Stock already owned by the optionee. The shares so delivered or withheld shall have a fair market value equal to such withholding obligation.
The fair market value of the shares used to satisfy such withholding obligation shall be determined by the Company as of the date that the amount of tax to be withheld is to be determined. An optionee who has made an election pursuant to this
Section 20(a) may only satisfy his or her withholding obligation with shares of Common Stock which are not subject to any repurchase, forfeiture, unfulfilled vesting or other similar requirements. 

 

	 	21.	Cancellation and New Grant of Options, Etc. 

 The Board of Directors shall have the authority to effect, at any time and from time to time, with the consent of the affected optionees, (i) the cancellation of any or all outstanding options under
the Plan and the grant in substitution therefor of new options under the Plan covering the same or different numbers of shares of Common Stock and having an option exercise price per share which may be lower or higher than the exercise price per
share of the cancelled options, or (ii) the amendment of the terms of any and all outstanding options under the Plan to provide an option exercise price per share which is higher or lower than the then current exercise price per share of such
outstanding options. 
  

	 	22.	Effective Date and Duration of the Plan. 

 (a) Effective Date. The Plan shall become effective as of January 6,2003, but no Incentive Stock Option granted under the Plan shall become exercisable unless and until the Plan shall have
been approved by the Company’s shareholders. If such shareholder approval is not obtained within twelve months after the effective date of the Plan, no options previously granted under the Plan shall be deemed to be Incentive Stock Options and
no Incentive Stock Options shall be granted thereafter. Amendments to the Plan not requiring shareholder approval shall become effective when adopted by the Board of Directors; amendments requiring shareholder approval (as provided in
Section 19) shall become effective when adopted by the Board of Directors, but no Incentive Stock Option granted after the date of such amendment shall become exercisable (to the extent that such amendment to the Plan was required to enable the
Company to grant such Incentive Stock Option to a particular optionee) unless and until such amendment shall have been approved by the Company’s shareholders. If such shareholder approval is not obtained within twelve months of the Board’s
adoption of such amendment, any Incentive Stock Options granted on or after the date of such amendment shall terminate to the extent that such amendment to the Plan was required to enable the Company to grant such option to a particular optionee.
Subject to this limitation, options may be granted under the Plan at any time after the effective date and before the date fixed for termination of the Plan. 

 (b) Termination. Unless sooner terminated in accordance with Section 16, the
Plan shall terminate, with respect to Incentive Stock Options, upon the earlier of (i) the close of business on the day next preceding the tenth anniversary of the date of its adoption by the Board of Directors, or (ii) the date on which
all shares available for issuance under the Plan shall have been issued pursuant to the exercise or cancellation of options granted under the Plan. Unless sooner terminated in accordance with Section 16, the Plan shall terminate with respect to
options which are not Incentive Stock Options on the date specified in (ii) above. If the date of termination is determined under (i) above, then options outstanding on such date shall continue to have force and effect in accordance with
the provisions of the instruments evidencing such options. 
  

	 	23.	Provision for Foreign Participants. 

 The Board of Directors may, without amending the Plan, modify awards or options granted to participants who are foreign nationals or employed outside the United States to recognize differences in laws,
rules, regulations or customs of such foreign jurisdictions with respect to tax, securities, currency, employee benefit or other matters. 
  

					
		 	ADVANCED BIOHEALING, INC.
			
	Date: September 21, 2004	 	By:	 	 /s/ David E. Eisenbud

		 		 	David E. Eisenbud, President
		 		 	Hereunto duly Authorized

 AMENDMENT NO.1 TO 2004 STOCK OPTION PLAN 

Pursuant to Section 19 of the 2004 Stock Option Plan (“Plan”) of Advanced BioHealing, Inc. (“Corporation”), the following
amendment of the Plan has been approved by the directors and stockholders and is hereby adopted by the Corporation: 
 1. The
number 479,238 in Section 4 of the Plan is hereby deleted and inserted in its place is the number 8,363,214. 
 2. The
current clause (ii) of Section 16(a) is hereby deleted and inserted in its place 
 is the following new clause (ii): 

“(ii) upon written notice to the optionees, provide that all then unexercised options will terminate immediately prior to the
consummation of an Acquisition Event, except to the extent exercised by the optionees prior to the consummation of such Acquisition Event,”. 
 All other provisions of the Plan remain in full effect. 
 Executed this 30th day of September,
2005. 
  

	
	/s/ David Eisenbud, President and CEO

 AMENDMENT TO 2004 STOCK OPTION PLAN, AS AMENDED 

Pursuant to Section 19 of the 2004 Stock Option Plan, as Amended (the “Option Plan”) of Advanced BioHealing, Inc. (the
“Corporation”), the following amendment to the Option Plan has been approved by the Board of Directors and stockholders and hereby is adopted by the Corporation: 
 The number 8,363,214 in Section 4 of the Plan is hereby deleted and inserted in its place is the number 2,385,065, reflecting a I-for-20 reverse stock split and an addition (post split) of 1,966,904
shares. 
 All other provisions of the Option Plan remain in full force and effect. 

[Signature on following page] 

 Executed this 23rd day of February, 2007. 

 

	
	 /s/ Kevin Rakin

	President and Chief Executive Officer

 AMENDMENT TO 2004 STOCK OPTION PLAN, AS AMENDED 

Pursuant to Section 19 of the 2004 Stock Option Plan, as Amended (the “Option Plan”) of Advanced BioHealing, Inc. (the
“Corporation”), the following amendment to the Option Plan has been approved by the Board of Directors and stockholders and hereby is adopted by the Corporation: 
 The number 2,385,065 in Section 4 of the Plan is hereby deleted and inserted in its place is the number 2,796,341, reflecting an addition of 411,276 shares. 

All other provisions of the Option Plan remain in full force and effect. 

[Signature on following page] 

 Executed this 9th day of July, 2007. 

 

	
	 /s/ Kevin Rakin

	President and Chief Executive Officer

 AMENDMENT TO 2004 STOCK OPTION PLAN, AS AMENDED 

Pursuant to Section 19 of the 2004 Stock Option Plan, as Amended (the “Option Plan”) of Advanced BioHealing, Inc. (the
“Corporation”), the following amendment to the Option Plan has been approved by the Board of Directors and stockholders and hereby is adopted by the Corporation: 
 The number 2,796,341 in Section 4 of the Plan is hereby deleted and inserted in its place is the number 3,246,341, reflecting an addition of 450,000 shares. 

All other provisions of the Option Plan remain in full force and effect. 

[Signature on following page] 

 Executed this 5th day of December, 2007. 

 

	
	 /s/ Kevin Rakin

	President and Chief Executive Officer

 AMENDMENT TO 2004 STOCK OPTION PLAN, AS AMENDED 

Pursuant to Section 19 of the 2004 Stock Option Plan, as Amended (the “Option Plan”) of Advanced BioHealing, Inc. (the
“Corporation”), the following amendment to the Option Plan has been approved by the Board of Directors and stockholders and hereby is adopted by the Corporation: 
 The number 3,246,341 in Section 4 of the Plan is hereby deleted and inserted in its place is the number 3,646,341, reflecting an addition of 400,000 shares. 

All other provisions of the Option Plan remain in full force and effect. 

[Signature on following page] 

 Executed this 22nd day of December, 2008. 

 

	
	 /s/ Kevin Rakin

	President and Chief Executive Officer

 NON-QUALIFIED STOCK OPTION AGREEMENT 

Advanced BioHealing, Inc. 
 AGREEMENT made as of [DATE] between Advanced BioHealing, Inc. (the “Company”), a Delaware corporation, and [NAME] (the “Participant”). 

WHEREAS, the Company desires to grant to the Participant an option (the “Option”) to purchase shares of its common stock,
$0.001 par value per share (the “Shares”), under and for the purposes set forth in the Company’s 2004 Stock Option Plan (the “Plan”); 
 WHEREAS, the Company and the Participant understand and agree that any terms used and not defined herein have the same meanings as in the Plan; and 

WHEREAS, the Company and the Participant each intend that the Option granted herein shall be nonstatutory options which are not intended
to meet the requirements of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”). 
 NOW,
THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other good and valuable consideration, the parties hereto agree as follows: 
  

	 	1.	GRANT OF OPTION. 

 The
Company hereby grants to the Participant the right and option to purchase all or any part of an aggregate of [            ] Shares (the “Aggregate Option Amount”), on the
terms and conditions and subject to all the limitations set forth herein, under United States securities and tax laws, and in the Plan, which is incorporated herein by reference. The Participant acknowledges receipt of a copy of the Plan.

  

	 	2.	PURCHASE PRICE. 

 The
purchase price of the Shares covered by the Option shall be $[            ] per Share, subject to adjustment, as provided in the Plan, in the event of a stock split, reverse stock
split or other events affecting the holders of Shares after the date hereof (the “Purchase Price”). Payment shall be made in accordance with Section 5. 
  

	 	3.	EXERCISABILITY OF OPTION. 

Subject to the terms and conditions set forth in this Agreement and the Plan, the Option granted hereby shall become exercisable for up to
25% of the Aggregate Option Amount on [DATE] and an additional 6.25% of the Aggregate Option Amount on each of the next twelve (12) three month periods thereafter. 
 The foregoing rights are cumulative and are subject to the other terms and conditions of this Agreement and the Plan. 

	 	4.	TERM OF OPTION. 

 The
Option shall terminate ten years from the date of this Agreement, but shall be subject to earlier termination as provided herein or in the Plan. 
 If the Participant ceases to be an employee, director or consultant of the Company or an affiliate of the Company (for any reason other than the death of the Participant, the Participant becoming disabled
(within the meaning of Section 22(e)(3) of the Code or any successor provision thereto) or the termination of the Participant for “cause”), the Option may be exercised, if it has not previously terminated, within three months after
the date the Participant ceases to be an employee, director or consultant of the Company or an affiliate of the Company, or within the originally prescribed term of the Option, whichever is earlier, but may not be exercised thereafter. In such
event, the Option shall be exercisable only to the extent that the Option has become exercisable and is in effect at the date of such cessation of employment, directorship or consultancy. 

In the event the Participant’s employment, directorship or consultancy is terminated by the Company or an affiliate of the Company
for “cause”, the Participant’s right to exercise any unexercised portion of the Option shall cease immediately as of the time the Participant is notified his or her employment, directorship or consultancy is terminated for
“cause” and the Option shall thereupon terminate. Notwithstanding anything herein to the contrary, if subsequent to the Participant’s termination, but prior to the exercise of the Option, the Board of Directors of the Company
determines that, either prior or subsequent to the Participant’s termination, the Participant engaged in conduct which would constitute “cause,” then the Participant shall immediately cease to have any right to exercise the Option and
the Option shall thereupon terminate. 
 In the event of the disability of the Participant, the Option shall be exercisable
within one year after the Participant’s termination of service or, if earlier, within the term originally prescribed by the Option. In such event, the Option shall be exercisable: 

 

	 	(a)	to the extent that the Option has become exercisable but has not been exercised as of the date of disability; and 

 

	 	(b)	in the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion through the date of disability of any additional vesting rights that
would have accrued on the next vesting date had the Participant not become disabled. The proration shall be based upon the number of days accrued in the current vesting period prior to the date of disability. 

In the event of the death of the Participant while an employee, director or consultant of the Company or of an affiliate of the Company,
the Option shall be exercisable by the person to whom the Option is transferred by will or the laws of descent and distribution within one year after the date of death of the Participant or, if earlier, within the originally prescribed term of the
Option. In such event, the Option shall be exercisable: 
  

	 	(x)	to the extent that the Option has become exercisable but has not been exercised as of the date of death; and 

  
 2 

	 	(y)	in the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion through the date of death of any additional vesting rights that
would have accrued on the next vesting date had the Participant not died. The proration shall be based upon the number of days accrued in the current vesting period prior to the Participant’s date of death. 

 

	 	5.	METHOD OF EXERCISING OPTION. 

 Subject to the terms and conditions of this Agreement, the Option may be exercised by written notice to the Company or its designee, in substantially the appropriate form in Exhibit A attached
hereto. Such notice shall state the number of Shares with respect to which the Option is being exercised and shall be signed by the person exercising the Option. Payment of the Purchase Price for Shares purchased upon exercise of the Option shall be
made (i) by delivery to the Company of cash or a check to the order of the Company in an amount equal to the Purchase Price of such Shares, (ii) subject to the consent of the Company, by delivery to the Company of Shares having a fair
market value equal in amount to the Purchase Price of the Shares to be purchased, (iii) by any other means which the Board of Directors of the Company determines are consistent with the purpose of the Plan and with applicable laws and
regulations (including, without limitation, the provisions of Rule 16b-3 under the Securities Exchange Act of 1934, as amended, and Regulation T promulgated by the Federal Reserve Board) or (iv) by any combination of such methods of payment.

 The Company shall deliver a certificate or certificates representing Shares purchased upon exercise of the Option as soon as
practicable after the notice of exercise shall be received, provided, however, that the Company may delay issuance of such Shares until completion of any action or obtaining of any consent which the Company deems necessary under any applicable law
(including, without limitation, state securities or “blue sky” laws). The certificate or certificates for the Shares as to which the Option shall have been so exercised shall be registered in the Company’s share register in the name
of the person so exercising the Option (or, if the Option shall be exercised by the Participant and if the Participant shall so request in the notice exercising the Option, shall be registered in the name of the Participant and another person
jointly, with right of survivorship) and shall be delivered as provided above to or upon the written order of the person exercising the Option. In the event the Option shall be exercised, pursuant to Section 4 hereof, by any person other than
the Participant, such notice shall be accompanied by appropriate proof of the right of such person to exercise the Option. All Shares that shall be purchased upon the exercise of the Option as provided herein shall be fully paid and nonassessable.

  
 3 

	 	6.	PARTIAL EXERCISE. 

Exercise of the Option to the extent above stated may be made in part at any time and from time to time within the above limits, except
that no fractional share shall be issued pursuant to the Option. 
  

	 	7.	NON-ASSIGNABILITY. 

 The
Option shall not be transferable by the Participant otherwise than by will or by the laws of descent and distribution or pursuant to a qualified domestic relations order as defined by the Code or Title I of the Employee Retirement Income Security
Act of 1974, as amended or the rules thereunder. Except as provided in the previous sentence, the Option shall be exercisable, during the Participant’s lifetime, only by the Participant (or, in the event of legal incapacity or incompetency, by
the Participant’s guardian or representative) and shall not be assigned, pledged or hypothecated in any way (whether by operation of law or otherwise) and shall not be subject to execution, attachment or similar process. Any attempted transfer,
assignment, pledge, hypothecation or other disposition of the Option or of any rights granted hereunder contrary to the provisions of this Section 7, or the levy of any attachment or similar process upon the Option, shall be null and void.

  

	 	8.	NO RIGHTS AS STOCKHOLDER UNTIL EXERCISE. 

 The Participant shall have no rights as a stockholder with respect to Shares subject to this Agreement until registration of the Shares in the Company’s share register in the name of the Participant.
Except as is expressly provided in the Plan with respect to certain changes in the capitalization of the Company, no adjustment shall be made for dividends or similar rights for which the record date is prior to the date of such registration.

  

	 	9.	ADJUSTMENTS. 

 The Plan
contains provisions covering the treatment of Options in a number of contingencies such as stock splits and mergers. Provisions in the Plan for adjustment with respect to stock subject to Options and the related provisions with respect to successors
to the business of the Company are hereby made applicable hereunder and are incorporated herein by reference. 
  

	 	10.	TAXES. 

 The Participant
acknowledges that upon exercise of the Option the Participant shall be deemed to have taxable income measured by the difference between the then fair market value of the Shares received upon exercise and the price paid for such Shares pursuant to
this Agreement. The Participant acknowledges that any income or other taxes due from him or her with respect to the Option or the Shares issuable pursuant to the Option shall be the Participant’s responsibility. 

The Participant agrees that the Company may withhold from the Participant’s remuneration, if any, the minimum statutory amount of
federal, state and local withholding taxes 

  
 4 

 
attributable to such amount that is considered compensation includable in the Participant’s gross income. At the Company’s discretion, the amount required to be withheld may be withheld
in cash from such remuneration, or in kind from the Shares otherwise deliverable to the Participant on exercise of the Option. The Participant further agrees that, if the Company does not withhold an amount from the Participant’s remuneration
sufficient to satisfy the Company’s income tax withholding obligation, the Participant shall reimburse the Company on demand, in cash, for the amount under-withheld. 

 

	 	11.	PURCHASE FOR INVESTMENT. 

Unless the offering and sale of the Shares to be issued upon the particular exercise of the Option shall have been effectively registered
under the Securities Act of 1933, as amended (the “1933 Act”), the Company shall be under no obligation to issue the Shares covered by such exercise unless and until the following conditions have been fulfilled: 

 

	 	(a)	The person(s) who exercise the Option shall warrant to the Company, at the time of such exercise, that such person(s) are acquiring such Shares for their own respective
accounts, for investment, and not with a view to, or for sale in connection with, the distribution of any such Shares, in which event the person(s) acquiring such Shares shall be bound by the provisions of the following legend which shall be
endorsed upon the certificate(s) evidencing the Shares issued pursuant to such exercise: 

 “The shares
represented by this certificate have been taken for investment and they may not be sold or otherwise transferred by any person, including a pledgee, unless (1) either (a) a registration statement with respect to such shares shall be
effective under the Securities Act of 1933, as amended, or (b) the Company shall have received an opinion of counsel satisfactory to it that an exemption from registration under such Act is then available and (2) there shall have been
compliance with all applicable state securities laws;” and 
  

	 	(b)	If the Company so requires, the Company shall have received an opinion of its counsel that the Shares may be issued upon such particular exercise in compliance with the
1933 Act without registration thereunder. Without limiting the generality of the foregoing, the Company may delay issuance of the Shares until completion of any action or obtaining of any consent which the Company deems necessary under any
applicable law (including without limitation state securities or “blue sky” laws). 

  

	 	12.	RESTRICTIONS ON TRANSFER OF SHARES. 

 12.1 The Shares acquired by the Participant pursuant to the exercise of the Option granted hereby shall not be transferred by the Participant except as permitted in the Amended and Restated Right of First
Refusal and Co-Sale Agreement dated as of February 23, 2007, by and among the Company and its stockholders (the “ROFRC Agreement”). 

  
 5 

 12.2 The Participant hereby agrees that he or she is joined as a party to (a) the ROFRC
Agreement and shall be subject to the obligations and restrictions applicable to a Junior Holder (as defined in the ROFRC Agreement) pursuant to the terms of the ROFRC Agreement and (b) the Amended and Restated Investor Rights Agreement dated
as of February 23, 2007, by and among the Company and its stockholders (the “Investor Rights Agreement”) and shall be subject to the obligations and restrictions applicable to a Junior Holder (as defined in the Investor Rights
Agreement) pursuant to the terms of the Investor Rights Agreement. 
 12.3 In the event that the Participant or his or her
successor in interest fails to deliver the Shares to be repurchased by the Company under this Agreement, the Company may elect (a) to establish a segregated account in the amount of the repurchase price, such account to be turned over to the
Participant or his or her successor in interest upon delivery of such Shares, and (b) immediately to take such action as is appropriate to transfer record title of such Shares from the Participant to the Company and to treat the Participant and
such Shares in all respects as if delivery of such Shares had been made as required by this Agreement. The Participant hereby irrevocably grants the Company a power of attorney which shall be coupled with an interest for the purpose of effectuating
the preceding sentence. 
 12.4 If the Company shall pay a stock dividend or declare a stock split on or with respect to any of
its Shares, or otherwise distribute securities of the Company to the holders of its Shares, the number of shares of stock or other securities of Company issued with respect to the Shares then subject to the restrictions contained in this Agreement
shall be added to the Shares subject to the Company’s rights to repurchase pursuant to this Agreement. If the Company shall distribute to its stockholders shares of stock of another corporation, the shares of stock of such other corporation,
distributed with respect to the Shares then subject to the restrictions contained in this Agreement, shall be added to the Shares subject to the Company’s rights to repurchase pursuant to this Agreement. 

12.5 If the outstanding Shares shall be subdivided into a greater number of shares or combined into a smaller number of Shares, or in the
event of a reclassification of the outstanding Shares, or if the Company shall be a party to a merger, consolidation or capital reorganization, there shall be substituted for the Shares then subject to the restrictions contained in this Agreement
such amount and kind of securities as are issued in such subdivision, combination, reclassification, merger, consolidation or capital reorganization in respect of the Shares subject immediately prior thereto to the Company’s rights to
repurchase pursuant to this Agreement. 
 12.6 The Company shall not be required to transfer any Shares on its books which shall
have been sold, assigned or otherwise transferred in violation of this Agreement, or to treat as owner of such Shares, or to accord the right to vote as such owner or to pay dividends to, any person or organization to which any such Shares shall
have been so sold, assigned or otherwise transferred in violation of this Agreement. 
 12.7 The provisions of Sections 12.1 and
12.2(a) shall terminate upon the termination of the ROFRC Agreement in accordance with its terms. The provisions of Section 12.2(b) shall terminate upon the termination of the Investor Rights Agreement in accordance with its terms. 

  
 6 

 12.8 If, in connection with a registration statement filed by the Company pursuant to the
1933 Act, the Company or its underwriter so requests, the Participant shall agree not to sell any Shares for a period not to exceed 180 days following the effectiveness of such registration. 

12.9 The Participant acknowledges and agrees that neither the Company, its shareholders nor its directors and officers has any duty or
obligation to disclose to the Participant any material information regarding the business of the Company or affecting the value of the Shares before, at the time of or following a termination of the employment of the Participant by the Company,
including, without limitation, any information concerning plans for the Company to make a public offering of its securities or to be acquired by or merged with or into another firm or entity. 

12.10 All certificates representing the Shares to be issued to the Participant pursuant to this Agreement shall have endorsed thereon a
legend substantially as follows: “The shares represented by this certificate are subject to restrictions set forth in a Non-Qualified Stock Option Agreement dated [DATE] with this Company, a copy of which Agreement is available for inspection
at the offices of the Company or will be made available upon request.” 
  

	 	13.	NO OBLIGATION TO MAINTAIN RELATIONSHIP. 

 The Company is not by the Plan or this Option obligated to continue the Participant as an employee, director or consultant of the Company or an affiliate of the Company. The Participant acknowledges that:
(i) the Plan is discretionary in nature and may be suspended or terminated by the Company at any time; (ii) the grant of the Option is a one-time benefit which does not create any contractual or other right to receive future grants of
options or benefits in lieu of options; (iii) all determinations with respect to any such future grants, including, but not limited to, the times when options shall be granted, the number of shares subject to each option, the option price and
the time or times when each option shall be exercisable shall be at the sole discretion of the Company; (iv) the Participant’s participation in the Plan is voluntary; (v) that the value of the Option is an extraordinary item of
compensation which is outside the scope of the Participant’s employment, directorship or consultancy contract, if any; and (vi) the Option is not part of normal or expected compensation for purposes of calculating any severance,
resignation, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments. 
  

	 	14.	NOTICES. 

 Any notices
required or permitted by the terms of this Agreement or the Plan shall be given by recognized courier service, facsimile, registered or certified mail, return receipt requested, addressed as follows: 

If to the Company: 
 10933 N. Torrey Pines Road, Suite 200 
 La Jolla, CA 92037

  
 7 

 If to the Participant: 
 At the address set forth in the Company’s 
 records 

or to such other address or addresses of which notice in the same manner has previously been given. Any such notice shall be deemed to have been given
upon the earlier of receipt, one business day following delivery to a recognized courier service or three business days following mailing by registered or certified mail. 

 

	 	15.	GOVERNING LAW. 

 This
Agreement shall be construed and enforced in accordance with the law of the State of California, without giving effect to the conflicts of law principles thereof. For the purpose of litigating any dispute that arises under this Agreement, the
parties hereby consent to exclusive jurisdiction in California and agree that such litigation shall be conducted in the courts of San Diego County or California. 
  

	 	16.	BENEFIT OF AGREEMENT. 

Subject to the provisions of the Plan and the ROFRC Agreement and the Investor Rights Agreement and the other provisions hereof, this
Agreement shall be for the benefit of and shall be binding upon the heirs, executors, administrators, successors and assigns of the parties hereto. 
  

	 	17.	ENTIRE AGREEMENT. 

 This
Agreement, together with the Plan, embodies the entire agreement and understanding between the parties hereto with respect to the subject matter hereof and supersedes all prior oral or written agreements and understandings relating to the subject
matter hereof, including any previously executed stock option agreement between the Participant and the Company. No statement, representation, warranty, covenant or agreement not expressly set forth in this Agreement shall affect or be used to
interpret, change or restrict, the express terms and provisions of this Agreement, provided, however, in any event, this Agreement shall be subject to and governed by the Plan. 

 

	 	18.	MODIFICATIONS AND AMENDMENTS. 

 The terms and provisions of this Agreement may be modified or amended as provided in the Plan. 
  

	 	19.	WAIVERS AND CONSENTS. 

Except as provided in the Plan, the terms and provisions of this Agreement may be waived, or consent for the departure therefrom granted,
only by written document executed by the party entitled to the benefits of such terms or provisions. No such waiver or consent shall be deemed to be or shall constitute a waiver or consent with respect to any other terms or provisions of this
Agreement, whether or not similar. Each such waiver or consent shall be effective only in the specific instance and for the purpose for which it was given and shall not constitute a continuing waiver or consent. 

  
 8 

	 	20.	DATA PRIVACY. 

 By
entering into this Agreement, the Participant: (i) authorizes the Company and each of its affiliates, and any agent of the Company or any of its affiliate administering the Plan or providing Plan record keeping services, to disclose to the
Company or any of its affiliates such information and data as the Company or any such affiliate shall request in order to facilitate the grant of options and the administration of the Plan; (ii) waives any data privacy rights he or she may have
with respect to such information; and (iii) authorizes the Company and each of its affiliates to store and transmit such information in electronic form. 
  

	 	21.	CONSENT OF SPOUSE. 

 If
the Participant is married as of the date of this Agreement, the Participant’s spouse shall execute a Consent of Spouse in the form of Exhibit B hereto, effective as of the date hereof. Such consent shall not be deemed to confer or
convey to the spouse any rights in the Shares that do not otherwise exist by operation of law or the agreement of the parties. If the Participant marries or remarries subsequent to the date hereof, the Participant shall, not later than 60 days
thereafter, obtain his or her new spouse’s acknowledgement of and consent to the existence and binding effect of Section 12.2 of this Agreement by such spouse’s executing and delivering a Consent of Spouse in the form of Exhibit
B. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

  
 9 

 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly
authorized officer, and the Participant has hereunto set his or her hand, all as of the day and year first above written. 
  

			
	Advanced BioHealing, Inc.
		
	 By:
	 	  

		 	 Name: Marc Posel

		 	 Title: Corporate Controller

	
	  

	Participant

  
 10 

 Exhibit A 
 NOTICE OF EXERCISE OF NON-QUALIFIED STOCK OPTION 
 [Form for Unregistered
Shares] 
  

	To:	Advanced BioHealing, Inc. 

 Ladies and
Gentlemen: 
 I hereby exercise my Non-Qualified Stock Option to purchase
                     shares (the “Shares”) of the common stock, $0.001 par value, of Advanced BioHealing, Inc. (the
“Company”), at the exercise price of $             per share, pursuant to and subject to the terms of that certain Non-Qualified Stock Option Agreement between the
undersigned and the Company dated as of                     ,      (the “Agreement”). 

I am aware that the Shares have not been registered under the Securities Act of 1933, as amended (the “1933 Act”) or any state
securities laws. I understand that the reliance by the Company on exemptions under the 1933 Act is predicated in part upon the truth and accuracy of the statements by me in this Notice of Exercise. 

I hereby represent and warrant that (1) I have been furnished with all information which I deem necessary to evaluate the merits and
risks of the purchase of the Shares; (2) I have had the opportunity to ask questions concerning the Shares and the Company and all questions posed have been answered to my satisfaction; (3) I have been given the opportunity to obtain any
additional information I deem necessary to verify the accuracy of any information obtained concerning the Shares and the Company; and (4) I have such knowledge and experience in financial and business matters that I am able to evaluate the
merits and risks of purchasing the Shares and to make an informed investment decision relating thereto. 
 I hereby represent
and warrant that I am purchasing the Shares for my own personal account for investment and not with a view to the sale or distribution of all or any part of the Shares. 
 I understand that because the Shares have not been registered under the 1933 Act, I must continue to bear the economic risk of the investment for an indefinite time and the Shares cannot be sold unless
the Shares are subsequently registered under applicable federal and state securities laws or an exemption from such registration requirements is available. 
 I agree that I will in no event sell or distribute or otherwise dispose of all or any part of the Shares unless (1) there is an effective registration statement under the 1933 Act and applicable
state securities laws covering any such transaction involving the Shares or (2) the Company receives an opinion of my legal counsel (concurred in by legal counsel for the Company) stating that such transaction is exempt from registration or the
Company otherwise satisfies itself that such transaction is exempt from registration. 

  
 A-1

 I consent to the placing of a legend on my certificate for the Shares stating that the
Shares have not been registered and setting forth the restriction on transfer contemplated hereby and to the placing of a stop transfer order on the books of the Company and with any transfer agents against the Shares until the Shares may be legally
resold or distributed without restriction. 
 I understand that at the present time Rule 144 under the 1933 Act may not be
relied on for the resale or distribution of the Shares by me. I understand that the Company has no obligation to me to register the sale of the Shares with the Securities and Exchange Commission and has not represented to me that it will register
the sale of the Shares. 
 I understand the terms and restrictions on the right to dispose of the Shares set forth in the 2004
Stock Option Plan and the Agreement, both of which I have carefully reviewed. I consent to the placing of a legend on my certificate for the Shares referring to such restriction and the placing of stop transfer orders until the Shares may be
transferred in accordance with the terms of such restrictions. 
 I have considered the federal, state and local income tax
implications of the exercise of my Option and the purchase and subsequent sale of the Shares. 
 I am paying the option exercise
price for the Shares as follows: 
  
  

Please issue the stock certificate for the Shares (check one): 
  ̈ to me; or 
  ̈ to me and
                                    , as joint tenants with
right of survivorship 
 and mail the certificate to me at the following address: 

 
  

 
  

 
  
 My mailing address for shareholder communications, if different from the address listed above is: 
  

 
  

 
  

 

  
 A-2

 
	
	Very truly yours,
	
	  

	Participant (signature)
	
	  

	Print Name
	
	  

	Date
	
	  

	Social Security Number

  
 A-3

 Exhibit A 
 [Form for Registered Shares] 
 NOTICE OF EXERCISE OF NON-QUALIFIED
STOCK OPTION 
  

	TO:	Advanced BioHealing, Inc. 

 IMPORTANT NOTICE:
This form of Notice of Exercise may only be used at such time as the Company has filed a registration statement with the Securities and Exchange Commission under which the issuance of the Shares for which this exercise is being made is registered
and such registration statement remains effective. 
 Ladies and Gentlemen: 

I hereby exercise my Non-Qualified Stock Option to purchase
                     shares (the “Shares”) of the common stock, $0.001 par value, of Advanced BioHealing, Inc. (the
“Company”), at the exercise price of $             per share, pursuant to and subject to the terms of that certain Non-Qualified Stock Option Agreement between the
undersigned and the Company dated as of                     ,     . 

I understand the nature of the investment I am making and the financial risks thereof. I am aware that it is my responsibility to have
consulted with competent tax and legal advisors about the relevant national, state and local income tax and securities laws affecting the exercise of the Option and the purchase and subsequent sale of the Shares. 

I am paying the option exercise price for the Shares as follows: 

 
  

Please issue the Shares (check one): 
  ̈ to me; or 
  ̈ to me and
                                        ,
as joint tenants with right of 
 survivorship, 
 at the following address: 
  

			
	  
	 	
	  
	 	
	  
	 	

  
 A-1

 My mailing address for shareholder communications, if different from the address listed
above, is: 
  

			
	  
	 	
	  
	 	
	  
	 	

  

	
	Very truly yours,
	
	  

	Participant (signature)
	
	  

	Print Name
	
	  

	Date
	
	  

	Social Security Number

  
 A-2

 Exhibit B 
 CONSENT OF SPOUSE 
 I,
                                        ,
spouse of
                                        ,
acknowledge that I have read the Non-Qualified Stock Option Agreement, dated as of [DATE] (the “Agreement”), to which this Consent is attached as Exhibit B and that I know its contents. Capitalized terms used and not defined herein shall
have the meanings assigned to such terms in the Agreement. I am aware that by its provisions the Shares granted to my spouse pursuant to the Agreement are subject to a right of repurchase in favor of Advanced BioHealing, Inc. (the
“Company”) and that, accordingly, the Company has the right to repurchase up to all of the Shares of which I may become possessed as a result of a gift from my spouse or a court decree and/or any property settlement in any domestic
litigation. 
 I hereby agree that my interest, if any, in the Shares subject to the Agreement shall be irrevocably bound by the
Agreement and further understand and agree that any community property interest I may have in the Shares shall be similarly bound by the Agreement. 
 I agree to the repurchase right referred to in Section 12.2 of the Agreement and I hereby consent to the repurchase of the Shares by the Company and the sale of the Shares by my spouse or my
spouse’s legal representative in accordance with the provisions of the Agreement. Further, as part of the consideration for the Agreement, I agree that at my death, if I have not disposed of any interest of mine in the Shares by an outright
bequest of the Shares to my spouse, then the Company shall have the same rights against my legal representative to exercise its rights of repurchase with respect to any interest of mine in the Shares as it would have had pursuant to the Agreement if
I had acquired the Shares pursuant to a court decree in domestic litigation. 
 I AM AWARE THAT THE LEGAL, FINANCIAL AND RELATED
MATTERS CONTAINED IN THE AGREEMENT ARE COMPLEX AND THAT I AM FREE TO SEEK INDEPENDENT PROFESSIONAL GUIDANCE OR COUNSEL WITH RESPECT TO THIS CONSENT. I HAVE EITHER SOUGHT SUCH GUIDANCE OR COUNSEL OR DETERMINED AFTER REVIEWING THE AGREEMENT CAREFULLY
THAT I WILL WAIVE SUCH RIGHT. 
 Dated as of the
                     day of
                    ,     . 

 

	
	
	  

	Sign name:

  
 B-1Employment Agreement

 Exhibit 10.6 
 February 25, 2010 
 Keith O’Briant 

224 Grandmar Chase 
 Canton, GA 30115 

Re: Employment Agreement 

Dear Keith: 
 This letter is to
confirm our understanding with respect to your continued employment by Advanced BioHealing, Inc. (the “Company”). You are currently employed as the Company’s Senior Vice President of North American Sales pursuant to the
terms of your existing employment agreement effective as of October 10, 2006 and previously amended on February 23, 2008 (collectively, the “Prior Agreements”). The Company has offered to continue your employment on
the terms and conditions set forth below and upon countersigning below you have agreed to such continued employment (the terms and conditions agreed to in this letter are hereinafter referred to as the “Agreement”). In
consideration of the mutual promises and covenants contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby mutually acknowledged, we have agreed as follows: 

1. Employment. 
 (a) Description and Duties. Subject to the terms and conditions of this Agreement, the Company will employ you, and you will be employed by the Company and/or any present or future parent,
subsidiary or affiliate of the Company (each, a “Company Affiliate” and collectively, together with the Company, the “Company Group”), in the position of Senior Vice President of North American Sales.
You will report to the Company’s Chief Executive Officer. You will have the responsibilities, duties and authority commensurate with the position of a senior vice president, including, without limitation, the duties set forth on Schedule 1
attached hereto. You will also perform such other and/or different services for the Company as may be assigned to you from time to time by the Board of Directors of the Company (the “Board”) or the Company’s Chief
Executive Officer. The principal location at which you will perform such services will be in Atlanta, Georgia, although you will be available to perform services at any Company facility and to travel as the needs of the Company’s business may
require. 
 (b) Devotion to Duties. While you are employed hereunder, you will use your best efforts,
skills and abilities to perform faithfully all duties assigned to you pursuant to this Agreement and will devote your full business time and energies to the business and 

 
affairs of the Company. While you are employed hereunder, you will not undertake any other employment from any person or entity without the prior written consent of the Company. 

(c) Company Policies. The employment relationship between the parties shall also be subject to the Company’s
personnel policies and procedures as they may be interpreted, adopted, revised or deleted from time to time in the Company’s sole discretion. Notwithstanding the foregoing, in the event that the terms of this Agreement differ from or are in
conflict with the Company’s general employment policies or practices, this Agreement shall control. 
 2.
Compensation. 
 (a) Base Salary. While you are employed hereunder, the Company will pay you a base
salary at the annual rate of $240,000 (the “Base Salary”). The Base Salary may be subject to adjustment from time to time in the discretion of the Company but shall not be reduced unless, and only to the extent that, the base
salaries of all other similarly situated executives of the Company are proportionately reduced. The Base Salary will be payable in substantially equal installments in accordance with the Company’s payroll practices as in effect from time to
time, which currently provide for bi-weekly payments. The Company will deduct from each such installment all amounts required to be deducted or withheld under applicable law or under any employee benefit plan in which you participate. 

(b) Bonus. In addition to the Base Salary, the Company may pay you a bonus in the manner described below (the
“Bonus”). During any Plan Year (as defined below), you may be awarded an annual Bonus, the target of which is set for your position at fifty percent (50%) of your Base Salary, one-half of which shall be based on the
Company’s performance during such Plan Year and one-half of which shall be based on your performance during such Plan Year. These individual performance objectives will be agreed upon in writing no later than forty-five (45) days after the
start of your employment or beginning of the Plan Year whatever the case may be. In the event a Plan Year consists of less than or more than twelve (12) months, the Base Salary shall be pro rated for purposes of determining the amount of each
Bonus. With respect to each Plan Year, the Board shall determine, in its discretion, whether a Bonus shall be paid and the amount of such Bonus. If the Company terminates your employment during any Plan Year for any reason other than Cause (as
defined below), if you terminate for a Good Reason (as defined below) or if your employment is terminated for Disability (as defined below) or death, you (or your estate) shall be entitled to receive a pro rated portion of the Bonus, if any, earned
during such Plan Year based on the number of days you were employed by the Company during such Plan Year. If you terminate this Agreement in accordance with Section 3(a)(iii)(A) hereof, you shall be entitled to receive a Bonus only if you are
employed by the Company on the date such Bonus is scheduled to be paid. Subject to Section 4, the Company shall pay each Bonus, if any, as soon as administratively possible following the end of the Plan Year just then ended, but in any event no
later than forty-five (45) days after the end of such Plan Year. For purposes of this Agreement, the “Plan Year” is the twelve (12) month period beginning January through and including December. Your initial Plan
Year hereunder shall begin on January 1, 2010. 

  
 2 

 (c) Equity Compensation. In connection with your existing employment
relationship with the Company and the terms of the (i) Non-Qualified Stock Option Agreement, dated as of January 12, 2007, you received an option to purchase 20,182 shares of the Company’s common stock, par value $0.001 per share
(“Common Stock”) and (ii) Non-Qualified Stock Option Agreement, dated as of June 28, 2007, you received an option to purchase 128,749 shares of Common Stock (collectively and respectively, the “Existing
Option Agreements” and the “Existing Option Grants”). Except as otherwise provided in Section 4(d) herein, the terms of the Existing Option Agreements remain unchanged by the execution of this
Agreement.
 (d) Vacation. You will be entitled to four (4) weeks paid vacation in each calendar year
and paid holidays and personal days in accordance with the Company’s policies for its senior executives as in effect from time to time. All vacation days will be taken at times mutually agreed by you and the Company and will be subject to the
business needs of the Company. You may accrue unused vacation days up to one and one-half times your annual vacation allotment such that you shall be entitled to no more than six (6) weeks paid vacation at any time during any calendar year.

 (e) Fringe Benefits. You will be entitled to participate in employee benefit plans which the Company
provides or may establish for the benefit of its senior executives generally, for example, group life, disability, medical, dental and other insurance, retirement, pension, profit-sharing and similar plans (collectively, the “Fringe
Benefits”). Your eligibility to participate in the Fringe Benefits and receive benefits thereunder will be subject to the plan documents governing such Fringe Benefits. Nothing contained herein will require the Company to establish or
maintain any Fringe Benefits. 
 (f) Reimbursement of Expenses. The Company shall reimburse you for all
ordinary and reasonable out-of-pocket expenses that are reasonably incurred by you in furtherance of the Company’s business in accordance with the Company’s policies with respect thereto as in effect from time to time. You must submit any
request for reimbursement no later than ninety (90) days following the date that such business expense is incurred, and business expenses must be substantiated by receipts and documentation reasonably satisfactory to the Company. All approved
business expenses shall be reimbursed by the Company to you within one (1) month of submission of appropriate receipts and documentation. If a business expense reimbursement is not exempt from Section 409A of the Internal Revenue Code of
1986, as amended (the “Code”), any reimbursement in one calendar year shall not affect the amount that may be reimbursed in any other calendar year and a reimbursement (or right thereto) may not be
exchanged or liquidated for another benefit or payment. Any business expense reimbursements subject to Section 409A of the Code shall be made no later than the end of the calendar year following the calendar year in which such business
expense is incurred by you. 

  
 3 

 3. Term of Employment. 

(a) Term; Termination. Subject to the terms hereof, your employment hereunder will commence on January 1, 2010
(the “Commencement Date”) and will continue until the first to occur of the following: 

(i) Immediately upon your death; 
 (ii) By the Company: 
 (A) By written notice to you effective the
date of such notice, following your failure, due to illness, accident or any other physical or mental incapacity, to perform the essential functions of your position for an aggregate of ninety (90) business days within any period of one hundred
and eighty (180) consecutive business days during the term hereof as determined by a physician selected by you (“Disability”), provided that if applicable law provides any provision regarding disability that is
more favorable to you than that set forth herein, such more favorable provision will govern, and provided further that if and only to the extent that your Disability is a trigger for the payment of deferred compensation, as defined in
Section 409A of the Code, “Disability” shall have the meaning set forth in Section 409A(a)(2)(C) of the Code; or 
 (B) By written notice to you effective the date of such notice, with or without Cause; 
 (iii) By you: 
 (A) Without Good Reason at any time by written
notice to the Company effective ninety (90) days after the date of such notice; or 
 (B) Provided you have
not previously been notified of the Company’s intention to terminate your employment, you may resign for Good Reason at any time by written notice to the Company effective sixty (60) days after the date of such notice; provided,
however, that prior to any termination for Good Reason, you must provide notice to the Company of the existence of a condition described in Section 3(b)(ii) of this Agreement within ten (10) days of the date that you learn of the
initial existence of such condition and the Company shall have a period of sixty (60) days in which to remedy such condition. Any termination by you shall not be treated as a termination for Good Reason and shall instead be treated as a
termination by you under Section 3(a)(iii)(A) of this Agreement, if you fail to provide the aforementioned notice within the ten (10) day period or if the Company remedies the situation within the aforementioned sixty (60) period.

  
 4 

 (b) Definitions. For purposes of this Agreement: 

(i) “Cause” means (A) any conduct that constitutes a felony under applicable law, either in
connection with the performance of your obligations to the Company or which otherwise materially and adversely affects your ability to perform such obligations, (B) your willful disloyalty or deliberate dishonesty in the performance of your
duties to the Company, (C) the commission by you of an act of fraud or embezzlement against the Company or breach of fiduciary duty owed to the Company or (D) the violation of any Company written policy or any act of misconduct that is
demonstrably and materially injurious to the Company, monetarily or otherwise, (E) negligence or incompetence in the performance of your duties or failure to perform such duties in a manner satisfactory to the Company after the expiration of
ten (10) days without cure after written notice of such failure, or (F) a material breach by you of any material provision of this Agreement or the Proprietary Information and Inventions Agreement, by and between you and the Company, dated
as of October 10, 2006 (the “Proprietary Agreement”), which breach, if reasonably curable, is not cured within thirty (30) days after delivery to you by the Company of written notice of such breach. With respect to
any such determination, the Board will act fairly and in utmost good faith. No act or omission on your part will be considered “willful” unless done, or admitted to be done, by you in bad faith or without your reasonable belief that such
act or omission was in the best interest of the Company. 
 (ii) “Good Reason” means:
(i) without your written consent, a material reduction by the Company of your Base Salary as in effect on the date hereof or as the same may be increased from time to time, unless similarly situated Company executives also are subject to a
reduction in their salaries that reduces their salaries by approximately the same percentage rate as your Base Salary is to be reduced; (ii) without your written consent, a change in the principal location at which you provide services to the
Company to over fifty (50) miles away from Canton, Georgia; or (iii) a material adverse change by the Company in your duties, authority or responsibilities as Senior Vice President of North American Sales as set forth on Schedule 1 which
causes your position with the Company to become of less responsibility or authority than your position as of immediately following the Commencement Date, provided that the Company shall have sixty (60) days from the date of the written
notice set forth in Section 3(a)(iii)(B) in which to cure any alleged action or omission giving rise to the Good Reason, in which case there shall be no Good Reason. 
 4. Effect of Termination. 
 (a) Definitions. For
purposes of this Agreement: 
 (i) “Accrued Obligations” means (A) the portion of
your Base Salary as has accrued prior to any termination of your employment with the Company and has not yet been paid, (B) an amount equal to the value of your accrued unused vacation days, (C) the amount of any Bonus previously
determined by the Board to have been earned but not yet paid and (D) the amount of any expenses properly incurred by you on behalf of the Company prior to any such termination and not yet reimbursed. 

  
 5 

 (ii) “Change of Control” means (A) a merger or
consolidation in which the Company is a constituent party or a subsidiary of the Company is a constituent party and the Company issues shares of its capital stock pursuant to such merger or consolidation, except any such merger or consolidation
involving the Company or a subsidiary in which the shares of capital stock of the Company outstanding immediately prior to such merger or consolidation continue to represent, or are converted into or exchanged for shares of capital stock that
represent, immediately following such merger or consolidation, at least a majority, by voting power, of the capital stock of (1) the surviving or resulting corporation or (2) if the surviving or resulting corporation is a wholly owned
subsidiary of another corporation immediately following such merger or consolidation, the parent corporation of such surviving or resulting corporation; provided that, for the purpose of this definition, all shares of Common Stock issuable
upon exercise of options outstanding immediately prior to such merger or consolidation, or upon conversion of options, warrants, preferred stock and convertible notes and debentures outstanding immediately prior to such merger or consolidation,
shall be deemed to be outstanding immediately prior to such merger or consolidation and, if applicable, converted or exchanged in such merger or consolidation on the same terms as the actual outstanding shares of Common Stock are converted or
exchanged, (B) the sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all of the assets of the Company or (C) the liquidation or dissolution of the Company or the
Company ceasing to do business. 
 (b) Death or Disability; Termination Without Cause or for Good Reason.
If your employment hereunder is terminated as a result of your death or Disability or is terminated by the Company without Cause, or is terminated by you for Good Reason, the Company will pay the Accrued Obligations to you (or your estate) within
ninety (90) days following such termination. 
 (c) Termination for Cause; Voluntary Termination. If
your employment hereunder is terminated by the Company for Cause or by you pursuant to Section 3(a)(iii)(A), the Company will pay the Accrued Obligations to you within ninety (90) days following such termination, provided,
however, the Company shall have no obligation to pay any Bonus with respect to the year in which you were terminated, whether earned, accrued or otherwise. 

(d) Options. If your employment with the Company is terminated by the Company without Cause or by you for Good
Reason within six months after a Change of Control, the Existing Option Grants will become fully vested and exercisable as of the date of such termination and the Existing Option Agreements are hereby amended accordingly. 

  
 6 

 (e) Severance. If your employment is terminated by the Company
without Cause or by you for Good Reason, the Company will continue to pay you your Base Salary in accordance with the Company’s normal payroll cycle during the period commencing on the date of termination and ending on the six (6) month
anniversary of such date of termination; provided, however, that, if your employment is terminated by the Company without Cause or you resign for Good Reason within six (6) months after a Change of Control, the Company will
instead pay you your Base Salary in accordance with the Company’s normal payroll cycle during the period commencing on the date of termination and ending on the twelve (12) month anniversary of such date of termination. If you are
participating in the Company’s group health insurance plans on the effective date of termination without Cause or by you for Good Reason, and you timely elect and remain eligible for continued coverage under COBRA, or, if applicable, state
insurance laws, the Company shall pay that portion of your COBRA premiums that the Company was paying prior to the effective date of termination for such six- or twelve-month severance period, as applicable, or for the continuation period for which
you are eligible, whichever is shorter. Notwithstanding the foregoing provisions of this Section (i) if you become reemployed with another employer and are eligible for medical or other welfare benefits under another employer provided plan, the
medical and other welfare benefits described herein shall cease, and (ii) the payments pursuant to this Section are conditional on (A) your not being in breach of your obligations under Section 5 of this Agreement or the Proprietary
Agreement which breach, if reasonably curable, is not cured within thirty (30) days after delivery to you by the Company of written notice of such breach, and (B) the Company’s receipt of an executed general release in favor of the
Company, in a form acceptable to the Company (executed by you or your other duly authorized representative) and the expiration of the revocation period set forth therein. You agree to accept the aforementioned severance compensation as liquidated
damages for your termination under the provisions of this Section, and understand and agree that such liquidated damages are in lieu of all other compensation and benefits owed to you under any and all other provisions of this Agreement and further
constitute reasonable compensation for losses that you may incur and are not a penalty. 

(f) Six-Month Delay if Specified Employee. In the event that as of the date of your termination
from employment you are a Specified Employee (as defined below) and the Company has stock that is publicly traded on an established securities market or otherwise, any severance to which you would otherwise be entitled under this Agreement during
the first six (6) months following your date of termination shall be accumulated and paid to you as provided in this Section 4(f). In the event your employment is terminated as a result of your death, any severance shall be paid at the
time and in the manner provided in section 4(b) above. Further, any portion of severance provided in Section 4(e) shall be paid at the time and in the manner provided in Section 4(e) above, but only to the extent that such payments do not
exceed the 409A Severance Limit (as defined below). Any such payments in excess of the 409A Severance Limit, including following a Change in Control, to which you would otherwise be entitled under Section 4(e) shall be accumulated and paid in a
single lump sum as of the earlier of the ninetieth
(90th) day following the date of your death or the
first (1st) day of the seventh (7th) month following your date of termination. For purposes of this
Agreement, the “409A Severance Limit” means the lesser of (i) two (2) times your annualized compensation 

  
 7 

 
(based on your annual rate of pay for the taxable year preceding the taxable year in which your employment is terminated) or (ii) two (2) times the maximum amount of compensation that
can be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Code for the year in which your employment is terminated. For purposes of this Agreement, a “Specified Employee” means a
“Specified Employee” as defined for purposes of Code Section 409A(a)(2)(B)(i), as amended from time to time. You acknowledge that such definition currently includes: (i) an owner of more than five percent
(5%) of the stock of the Company; (ii) an owner of more than one percent (1%) of the stock of the Company who has compensation from the Company in excess of $150,000 per calendar year (not indexed); or (iii) an officer of the
Company with compensation in excess of $145,000 per calendar year (for 2007), as adjusted under Section 416(i)(1) of the Code. Determination of the identity of Specified Employees shall be made as of December 31 each year (the
“Specified Employee Identification Date”) and such determination shall be effective for each twelve (12) month period extending from January 1 through December 31 of the year following the Specified Employee
Identification Date. 
 5. Prohibited Competition. 

(a) Certain Acknowledgements and Agreements. 

(i) We have discussed, and you recognize and acknowledge the competitive and proprietary aspects of the business of the
Company Group. 
 (ii) You acknowledge that a business will be deemed competitive with the business of the
Company Group if it researches, develops, manufactures or commercializes cell-based wound healing technology or products or any other product the Company develops or sells or that you would reasonably be expected to know that the Company is
developing or selling at the time of your termination (each a “Competitive Company”). 

(iii) You further acknowledge that, while you are employed hereunder, the Company Group will furnish, disclose or make
available to you Confidential Information (as defined below) related to the business of the Company Group and that the Company Group may provide you with unique and specialized training. You also acknowledge that such Confidential Information and
such training have been developed and will be developed by the Company Group through the expenditure by the Company Group of substantial time, effort and money and that all such Confidential Information and training could be used by you to compete
with the Company Group. You also acknowledge that if you become employed or affiliated with any Competitive Company in violation of your obligations in this Agreement, it is inevitable that you would disclose the Confidential Information to such
competitor and would use such Confidential Information, knowingly or unknowingly, on behalf of such competitor. Further, while you are employed hereunder, you will be introduced to customers and others with important relationships to the Company
Group. You acknowledge that any and all “goodwill” created through such introductions belongs exclusively to the 

  
 8 

 
Company Group, including, without limitation, any goodwill created as a result of direct or indirect contacts or relationships between yourself and any customers of the Company Group. 

(iv) For purposes of this Agreement, “Confidential Information” means any information concerning
the organization, business (including products and technology) or finances of the Company or of any third party that the Company is under an obligation to keep confidential that is maintained by the Company as confidential. Such Confidential
Information shall include, but is not limited to, trade secrets or confidential information respecting inventions, products, technology, data, test results, designs, methods, formulae, know-how, show-how, techniques, systems, processes, software
programs, works of authorship, research and development, agreements with customers or other entities or individuals, data, specifications, customer (existing and prospective) and supplier identification, financials, product cost and profit
information, projects, plans and proposals. 
 (b) Non-Competition; Non-Solicitation. While you are
employed hereunder and for a period of one (1) year following the termination of your employment hereunder for any reason or for no reason, you will not, without the prior written consent of the Company: 

(i) For yourself or on behalf of any other person or entity, directly or indirectly, either as principal, partner,
stockholder, officer, director, member employee, consultant, agent, representative or in any other capacity, own, manage, operate or control, or be concerned, connected or employed by, or otherwise associate in any manner with, engage in or have a
financial interest in, any Competitive Company (each, a “Restricted Activity”), except that (A) nothing contained herein will preclude you from purchasing or owning securities of any such business if such securities are
publicly traded, and provided that your holdings do not exceed one percent (1%) of the issued and outstanding securities of any class of securities of such business and (B) nothing contained herein will prohibit you from engaging in
a Restricted Activity for or with respect to any subsidiary, division or affiliate or unit (each, a “Unit”) of a Competitive Company if that Unit is not engaged in any business which is competitive with the business of the
Company Group, irrespective of whether some other Unit of such Competitive Company engages in such competition (as long as you do not engage in a Restricted Activity for such other Unit); 

(ii) Either individually or on behalf of or through any third party, directly or indirectly, solicit, divert or
appropriate or attempt to solicit, divert or appropriate, for the benefit of any Competitive Company, any customers or patrons of the Company Group, or any prospective customers or patrons with respect to which the Company Group has developed or
made a sales presentation (or similar offering of services); 

  
 9 

 (iii) Either individually or on behalf of or through any third party,
directly or indirectly, (A) solicit, entice or persuade or attempt to solicit, entice or persuade any employees of or consultant to the Company Group to leave the service of the Company Group for any reason or (B) employ, cause to be
employed, or solicit the employment of, any employee of or consultant to the Company Group while any such person is providing services to the Company Group; or 
 (iv) Either individually or on behalf of or through any third party, directly or indirectly, interfere with, or attempt to interfere with, the relations between the Company Group and any vendor or
supplier to the Company Group. 
 (c) Reasonableness of Restrictions. You further recognize and
acknowledge that (i) the types of employment which are prohibited by this Section 5 are narrow and reasonable in relation to the skills which represent your principal salable asset both to the Company Group and to your other prospective
employers and (ii) the time period and the geographical scope of the provisions of this Section 5 is reasonable, legitimate and fair to you in light of the Company Group’s need to market its services and sell its products in a large
geographic area in order to have a sufficient customer base to make the Company Group’s business profitable and in light of the limited restrictions on the type of employment prohibited herein compared to the types of employment for which you
are qualified to earn your livelihood. 
 (d) Survival of Acknowledgements and Agreements. Your
acknowledgements and agreements set forth in this Section 5 will survive the termination of this Agreement and the termination of your employment hereunder for any reason or for no reason. 

6. Proprietary Agreement. You hereby agree and acknowledge that you are subject to the terms and conditions of the Proprietary
Agreement, and that the provisions of the Proprietary Agreement shall survive expiration or termination of this Agreement in accordance with the terms thereof. 
 7. Disclosure to Future Employers. You will provide, and the Company, in its discretion, may similarly provide, a copy of the covenants contained in Section 5 of this Agreement and a copy of
the Proprietary Agreement to any business or enterprise which you may, directly or indirectly, own, manage, operate, finance, join, control or in which you may participate in the ownership, management, operation, financing or control, or with which
you may be connected as an officer, director, employee, partner, principal, agent, representative, consultant or otherwise. 

8. Records. Upon termination of your employment hereunder for any reason or for no reason and at any other time requested by the
Company, you will deliver to the Company Group any property of the Company Group which may be in your possession, including products, materials, memoranda, notes, records, reports or other documents or photocopies of the same. 

  
 10 

 9. Insurance. The Company, in its sole discretion, may apply for and purchase key
person life insurance on your life in an amount determined by the Company with the Company Group as beneficiary and one or more other policies of insurance insuring your life. You will submit to any medical or other examinations and execute and
deliver any applications or other instruments in writing that are reasonably necessary to effectuate such insurance. 
 10.
Representations. You hereby represent and warrant to the Company that you understand this Agreement, that you enter into this Agreement voluntarily and that your employment under this Agreement will not conflict with any legal duty owed by
you to any other party, or with any agreement to which you are a party or by which you are bound, including, without limitation, any non-competition or non-solicitation provision contained in any such agreement. You will indemnify and hold harmless
the Company Group and its officers, directors, security holders, partners, members, employees, agents and representatives against loss, damage, liability or expense arising from any claim based upon circumstances alleged to be inconsistent with such
representation and warranty. 
 11. General. 

(a) Notices. All notices, requests, consents and other communications hereunder which are required to be provided,
or which the sender elects to provide, in writing, will be addressed to the receiving party’s address set forth on the signature page hereto or to such other address as a party may designate by notice hereunder, and will be either
(i) delivered by hand, (ii) sent by overnight courier or (iii) sent by registered or certified mail, return receipt requested, postage prepaid. All notices, requests, consents and other communications hereunder will be deemed to have
been given either (1) if by hand, at the time of the delivery thereof to the receiving party at the address of such party set forth above, (2) if sent by overnight courier, on the next business day following the day such notice is
delivered to the courier service or (3) if sent by registered or certified mail, on the fifth business day following the day such mailing is made. 
 (b) Entire Agreement. This Agreement, together with the Proprietary Agreement and the other agreements specifically referred to herein, embodies the entire agreement and understanding between the
parties hereto with respect to the subject matter hereof and supersedes all prior oral or written agreements and understandings relating to the subject matter hereof. No statement, representation, warranty, covenant or agreement of any kind not
expressly set forth in this Agreement will affect, or be used to interpret, change or restrict, the express terms and provisions of this Agreement. 
 (c) Modifications and Amendments. The terms and provisions of this Agreement may be modified or amended only by written agreement executed by the parties hereto. 

(d) Waivers and Consents. The terms and provisions of this Agreement may be waived, or consent for the departure
therefrom granted, only by written document executed by the party entitled to the benefits of such terms or provisions. No such waiver or consent will be deemed to be or will constitute a waiver or consent with respect to any other terms or
provisions of this Agreement, whether or not similar. Each such waiver or consent will be effective only in the specific instance and for the purpose for which it was given, and will not constitute a continuing waiver or consent. 

  
 11 

 (e) Assignment. The Company may assign its rights and obligations
hereunder to any person or entity that succeeds to all or substantially all of the Company’s business or that aspect of the Company’s business in which you are principally involved or to any Company Affiliate. You may not assign your
rights and obligations under this Agreement without the prior written consent of the Company and any such attempted assignment by you without the prior written consent of the Company will be void. 

(f) Benefit. All statements, representations, warranties, covenants and agreements in this Agreement will be
binding on the parties hereto and will inure to the benefit of the respective successors and permitted assigns, heirs and legal representatives of each party hereto. Nothing in this Agreement will be construed to create any rights or obligations
except between the Company and you, except for your obligations to the Company Group as set forth herein, and no person or entity (except for a Company Affiliate as set forth herein) will be regarded as a third-party beneficiary of this Agreement.

 (g) Governing Law. This Agreement and the rights and obligations of the parties hereunder will be
construed in accordance with and governed by the law of the State of Connecticut, without giving effect to the conflict of law principles thereof. 
 (h) Jurisdiction, Venue and Service of Process. Any legal action or proceeding with respect to this Agreement will be brought in the courts of the State of Connecticut in Fairfield County or of the
United States of America for the District of Connecticut. By execution and delivery of this Agreement, each of the parties hereto accepts for itself and in respect of its property, generally and unconditionally, the exclusive jurisdiction of the
aforesaid courts. 
 (i) WAIVER OF JURY TRIAL. ANY ACTION, DEMAND, CLAIM OR COUNTERCLAIM ARISING UNDER OR
RELATING TO THIS AGREEMENT WILL BE RESOLVED BY A JUDGE ALONE AND EACH OF YOU AND THE COMPANY WAIVE ANY RIGHT TO A JURY TRIAL THEREOF. 
 (j) Severability. The parties intend this Agreement to be enforced as written. However, (i) if any portion or provision of this Agreement is to any extent declared illegal or unenforceable by
a duly authorized court having jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable, will not be affected
thereby, and each portion and provision of this Agreement will be valid and enforceable to the fullest extent permitted by law and (ii) if any provision, or part thereof, is held to be unenforceable because of the duration of such provision,
the geographic area covered thereby, or other aspect or scope of such provision, the court making such determination will have the power to reduce the duration, geographic area of such provision, or other aspect or scope of such provision, and/or to
delete specific words and phrases (“blue-penciling”), and in its reduced or blue-penciled form, such provision will then be enforceable and will be enforced. 

  
 12 

 (k) Headings and Captions. The headings and captions of the various
subdivisions of this Agreement are for convenience of reference only and will in no way modify or affect the meaning or construction of any of the terms or provisions hereof. 

(l) Injunctive Relief. You hereby expressly acknowledge that any breach or threatened breach of any of the terms
and/or conditions set forth in Section 5 of this Agreement will result in substantial, continuing and irreparable injury to the Company Group. Therefore, in addition to any other remedy that may be available to the Company Group, the Company
Group will be entitled to injunctive or other equitable relief by a court of appropriate jurisdiction in the event of any breach or threatened breach of the terms of Section 5 of this Agreement. The period during which the covenants contained
in Section 5 will apply will be extended by any periods during which you are found by a court to have been in violation of such covenants. 
 (m) No Waiver of Rights, Powers and Remedies. No failure or delay by a party hereto in exercising any right, power or remedy under this Agreement, and no course of dealing between the parties
hereto, will operate as a waiver of any such right, power or remedy of the party. No single or partial exercise of any right, power or remedy under this Agreement by a party hereto, nor any abandonment or discontinuance of steps to enforce any such
right, power or remedy, will preclude such party from any other or further exercise thereof or the exercise of any other right, power or remedy hereunder. The election of any remedy by a party hereto will not constitute a waiver of the right of such
party to pursue other available remedies. No notice to or demand on a party not expressly required under this Agreement will entitle the party receiving such notice or demand to any other or further notice or demand in similar or other circumstances
or constitute a waiver of the rights of the party giving such notice or demand to any other or further action in any circumstances without such notice or demand. 

(n) Counterparts; Electronic Signatures. This Agreement may be executed in counterparts, each of which will be
deemed an original, but all of which together will constitute one and the same instrument. This Agreement may be executed by facsimile or other electronic signatures. 

(o) Opportunity to Review. You hereby acknowledge that you have had adequate opportunity to review these terms and
conditions and to reflect upon and consider the terms and conditions of this Agreement, and that you have had the opportunity to consult with counsel of your own choosing regarding such terms. You further acknowledge that you fully understand the
terms of this Agreement and have voluntarily executed this Agreement. 
 (p) Prior Agreements. This
Agreement supersedes and replaces any and all prior employment agreements and change in control agreements between the Company and/or any of its subsidiaries and the executive, including, with limitation, the Prior Agreements. By signing this
Agreement, you acknowledge that the Prior Agreements are 

  
 13 

 
terminated and cancelled, and release and discharge the Company from any and all obligations and liabilities heretofore or now existing under or by virtue of such Prior Agreements, it being the
intention of the parties hereto that this Agreement effective immediately shall supersede and be in lieu of the Prior Agreements. Notwithstanding anything contained in this Agreement to the contrary, except to the extent expressly superseded hereby,
the Existing Option Agreements shall remain in full force and effect. 

*    *    *    *    *    * 

  
 14 

 If the foregoing accurately sets forth our agreement, please so indicate by signing and
returning to us the enclosed copy of this Agreement. 
  

			
	Very truly yours,
	
	ADVANCED BIOHEALING, INC.
		
	By:	 	 /s/ Kevin Rakin

	Name:	 	Kevin Rakin
	Title:	 	Chief Executive Officer
		 	36 Church Lane
		 	Westport, CT 06880

  

	
	Accepted and Approved
	
	 /s/ Keith O’Briant

	 Keith O’Briant

	 224 Grandmar Chase

	 Canton, GA 30115

 SCHEDULE 1 
 DUTIES 
 ESSENTIAL DUTIES AND RESPONSIBILITIES include the following. Other duties
may be assigned. Executive will be responsible for: 
  

	•	 	 Responsible for all sales activities for the Company’s product, Dermagraft®. This includes sales of the product for its current indication,
diabetic foot ulcers and working closely with other departments within the Company to broaden the indications/applications of use (i.e. soft tissue, VLU). 

 

	•	 	 Responsible for ensuring that the Company has the necessary sales infrastructure needed to meet our aggressive sales targets. This will require
continuing to recruit, train and retain top sales talent along with realigning sales regions as needed. 

  

	•	 	 Responsible for developing the commission/incentive strategy for the Company’s products to ensure the ability to recruit and retain top talent as
well drive sales. 

  

	•	 	 Work closely with the Marketing Department to plan Dermagraft position and core message development. This will include input on all phases of the
marketing plan, including but not limited to product management, product branding, medical education, public relations and other key initiatives such as the freezer program, boot program, Heal2gether program, etc. 

 

	•	 	 Work closely with the operations team to ensure that the manufacturing plan and sales objectives are closely aligned so that the Company maintains
adequate product supplies. 

  

	•	 	 Participate in weekly management calls and work on other corporate initiatives (fundraising, outreach) as assigned. 

SUPERVISORY RESPONSIBILITIES 
 Directly
or indirectly, through subordinate managers, supervises 100+ employees in the Sales Department. Carries out supervisory responsibilities in accordance with the organization’s policies and applicable laws. Responsibilities include interviewing,
hiring and training employees; planning, assigning and directing work; appraising performance; rewarding and disciplining employees; addressing complaints and resolving problems. 

  
 16

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