Document:

EX-10.17.B

Exhibit 10.17(b)

SEVERANCE AGREEMENT

     THIS SEVERANCE AGREEMENT (this “Agreement”) is made as of the 1st day of January,
2008 by and between Integra LifeSciences Holdings Corporation, a Delaware Corporation, and Judith
O’Grady (“Executive”).

Background

     WHEREAS, this Agreement is intended to specify the financial arrangements that the Company
will provide to Executive upon Executive’s separation from employment with the Company in
connection with or after a Change in Control (as defined below).

     NOW, THEREFORE, in consideration of the premises and the mutual agreements contained herein
and intended to be legally bound hereby, the parties hereto agree as follows:

Terms

     1. Definitions. The following words and phrases shall have the meanings set forth
below for the purposes of this Agreement (unless the context clearly indicates otherwise):

	 	(a)	 	“Base Salary” shall mean a minimum base salary of
$235,000.00 per year (“Base Salary”), payable in periodic installments in
accordance with Company’s regular payroll practices in effect from time to
time. Executive’s Base Salary shall be subject to annual reviews, and may
increase pursuant to such reviews, in which case the increased Base Salary
shall become the “Base Salary.”
	 
	 	(b)	 	“Board” shall mean the Board of Directors of Company,
or any successor thereto.
	 
	 	(c)	 	“Cause,” as determined by the Board in good faith,
shall mean Executive has —

	 	(1)	 	failed to perform his stated
duties in all material respects, which failure continues for 15
days after his receipt of written notice of the failure;
	 
	 	(2)	 	intentionally and materially
breached any provision of this Agreement and not cured such
breach (if curable) within 15 days of his receipt of written
notice of the breach;
	 
	 	(3)	 	demonstrated his personal
dishonesty in connection with his employment by Company;
	 
	 	(4)	 	engaged in a breach of fiduciary
duty in connection with his employment with the Company;

 

 

	 	(5)	 	engaged in willful misconduct
that is materially and demonstrably injurious to the Company or
any of its subsidiaries; or
	 
	 	(6)	 	has been convicted or has entered
a plea of guilty or nolo contendere to a felony
or to any other crime involving moral turpitude which conviction
or plea is materially and demonstrably injurious to the Company
or any of its subsidiaries.

	 	(d)	 	A “Change in Control” of Company shall be deemed to
have occurred:

	 	(1)	 	if the “beneficial ownership” (as
defined in Rule 13d-3 under the Securities Exchange Act of 1934)
of securities representing more than fifty percent (50%) of the
combined voting power of Company Voting Securities (as herein
defined) is acquired by any individual, entity or group (a
“Person”), other than Company, any trustee or other fiduciary
holding securities under any employee benefit plan of Company or
an affiliate thereof, or any corporation owned, directly or
indirectly, by the stockholders of Company in substantially the
same proportions as their ownership of stock of Company (for
purposes of this Agreement, “Company Voting Securities” shall
mean the then outstanding voting securities of Company entitled
to vote generally in the election of directors);
provided, however, that any acquisition from Company or
any acquisition pursuant to a transaction which complies with
clauses (i), (ii) and (iii) of paragraph (3) of this definition
shall not be a Change in Control under this paragraph (1); or
	 
	 	(2)	 	if individuals who, as of the
date hereof, constitute the Board (the “Incumbent Board”) cease
for any reason during any period of at least 24 months to
constitute at least a majority of the Board; provided, however,
that any individual becoming a director subsequent to the date
hereof whose election, or nomination for election by Company’s
stockholders, was approved by a vote of at least a majority of
the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the
Incumbent Board, but excluding, for this purpose, any such
individual whose initial assumption of office occurs as a result
of an actual or threatened election contest with respect to the
election or removal of directors or other actual or threatened
solicitation of proxies or

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	 	 	 	consents by or on behalf of a Person other than the Board; or
	 
	 	(3)	 	upon consummation by Company of a
reorganization, merger or consolidation or sale or other
disposition of all or substantially all of the assets of Company
or the acquisition of assets or stock of any entity (a “Business
Combination”), in each case, unless immediately following such
Business Combination: (i) Company Voting Securities outstanding
immediately prior to such Business Combination (or if such
Company Voting Securities were converted pursuant to such
Business Combination, the shares into which such Company Voting
Securities were converted) (x) represent, directly or
indirectly, more than 50% of the combined voting power of the
then outstanding voting securities entitled to vote generally in
the election of directors of the corporation resulting from such
Business Combination (the “Surviving Corporation”), or, if
applicable, a corporation which as a result of such transaction
owns Company or all or substantially all of Company’s assets
either directly or through one or more subsidiaries (the “Parent
Corporation”) and (y) are held in substantially the same
proportions after such Business Combination as they were
immediately prior to such Business Combination; (ii) no Person
(excluding any employee benefit plan (or related trust) of
Company or such corporation resulting from such Business
Combination) beneficially owns, directly or indirectly, 50% or
more of the combined voting power of the then outstanding voting
securities eligible to elect directors of the Parent Corporation
(or, if there is no Parent Corporation, the Surviving
Corporation) except to the extent that such ownership of Company
existed prior to the Business Combination; and (iii) at least a
majority of the members of the board of directors of the Parent
Corporation (or, if there is no Parent Corporation, the
Surviving Corporation) were members of the Incumbent Board at
the time of the execution of the initial agreement, or the
action of the Board, providing for such Business Combination; or
	 
	 	(4)	 	upon approval by the stockholders
of Company of a complete liquidation or dissolution of Company.

	 	(e)	 	“Code” shall mean the Internal Revenue Code of 1986, as
amended.

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	 	(f)	 	“Company” shall mean Integra LifeSciences Holdings
Corporation and any corporation, partnership or other entity owned directly or
indirectly, in whole or in part, by Integra LifeSciences Holdings Corporation.
	 
	 	(g)	 	“Disability” shall mean Executive’s inability to
perform his duties hereunder by reason of any medically determinable physical
or mental impairment which is expected to result in death or which has lasted
or is expected to last for a continuous period of not fewer than six months.
	 
	 	(h)	 	“Good Reason” shall mean:

	 	(1)	 	a material breach of this
Agreement by Company which is not cured by Company within 15
days of its receipt of written notice of the breach;
	 
	 	(2)	 	during the one-year period
following a Change in Control, the relocation by the Company of
the Executive’s office to a location more than forty (40) miles
from Princeton, New Jersey, or, where Executive’s office is
located other than at the Company’s headquarters in Plainsboro,
New Jersey, to a location more than forty (40) miles from the
location of Executive’s office on the date hereof;
	 
	 	(3)	 	Company fails to obtain the
assumption of this Agreement by any successor to Company; or
	 
	 	(4)	 	during the one-year period
following a Change in Control, the Company, without Executive’s
express written consent: (i) reduces Executive’s base salary,
bonus opportunity (if applicable) or the aggregate fringe
benefits provided to Executive; or (ii) substantially alters the
Executive’s authority and/or title or otherwise diminishes the
nature or status of Executive’s responsibilities in a manner
reasonably construed to constitute a demotion.

	 	(i)	 	“Retirement” shall mean the termination of Executive’s
employment with Company in accordance with the retirement policies, including
early retirement policies, generally applicable to Company’s salaried
employees.
	 
	 	(j)	 	“Termination Date” shall mean the date specified in the
Termination Notice.
	 
	 	(k)	 	“Termination Notice” shall mean a dated notice which:
(i) indicates the specific termination provision in this Agreement relied upon
(if any); (ii) sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for the termination of Executive’s employment under
such

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	 	 	 	provision; (iii) specifies a Termination Date; and (iv) is given in the
manner specified in Section 16(i).

     2. Term of Agreement. The term of this Agreement shall commence on the date hereof as
first written above and shall terminate on December 31, 2008, provided, that, notwithstanding any
decision of the Company not to extend this Agreement, this Agreement shall continue in effect for a
period of 12 months beyond the date on which a Change in Control occurs if a Change in Control
shall have occurred during the term of this Agreement and while Executive is employed by the
Company.

     3. Termination of Employment.

	 	(a)	 	Prior to a Change in Control. Executive’s rights upon
termination of employment prior to a Change in Control shall be governed by the
Company’s standard employment termination policies and practices applicable to
Executive in effect at the time of termination or, if applicable, any written
employment agreement between the Company and Executive other than this
Agreement in effect at the time of termination.
	 
	 	(b)	 	After a Change in Control.

	 	(i)	 	From and after the date of a Change in Control
during the term of this Agreement, the Company shall not terminate
Executive from employment with the Company except as provided in this
Section 3(b) or as a result of Executive’s Disability, Retirement or
death.
	 
	 	(ii)	 	From and after the date of a Change in Control
during the term of this Agreement, the Company shall have the right to
terminate Executive from employment with the Company at any time during
the term of this Agreement for Cause, by written notice to Executive,
specifying the particulars of the conduct of Executive forming the
basis for such termination.
	 
	 	(iii)	 	From and after the date of a Change in Control
during the term of this Agreement: (x) the Company shall have the right
to terminate Executive’s employment without Cause, at any time; and (y)
Executive shall, upon the occurrence of such a termination by the
Company without Cause, or upon the voluntary termination of Executive’s
employment by Executive for Good Reason, be entitled to receive the
benefits provided in Section 4 hereof. Executive shall evidence a
voluntary termination for Good Reason by written notice to the Company
given within 60 days after the date of the occurrence of any event that
Executive knows or should reasonably have known constitutes Good Reason
for voluntary termination. Such notice need only identify Executive
and set forth in reasonable detail the facts and circumstances claimed
by Executive to constitute Good Reason. Any notice given by

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	 	 	 	Executive pursuant to this Section 3 shall be effective five business
days after the date it is given by Executive.

     4. Payments Upon Termination of Employment.

	 	(a)	 	Termination with Salary Continuation. As consideration
for the restrictive covenants contained in Section 5, in the event that within
twelve months of a Change in Control (i) Executive terminates his employment
for Good Reason, or (ii) Executive’s employment is terminated by Company for a
reason other than Retirement, Disability, death or Cause, then Company shall:

	 	(i)	 	pay Executive a severance amount equal to
Executive’s Base Salary (determined without regard to any reduction
that would give rise to Good Reason) as of his last day of active
employment; the severance amount shall be paid in a single sum on the
first business day of the month following the Termination Date; and
	 
	 	(ii)	 	maintain and provide to Executive, for a period
ending on the earlier of (A) the end of the twelfth month after the
Termination Date, or (B) Executive’s death, continued health coverage
in the plan in which Executive was participating immediately prior to
the Termination Date; provided that the continuation of such coverage
is not prohibited by the terms of the plan or by the Company for legal
reasons; and provided further, that in order to receive such continued
coverage, Executive shall be required to pay to the Company at the same
time that premium payments are due for the month an amount equal to the
full monthly premium payments required to pay for such coverage and the
Company shall reimburse to Executive the amount of such monthly
premium, less the amount that Executive was required to pay for such
coverage immediately prior to the Termination Date (the “Health
Payment”), no later than the next payroll date of the Company that
occurs after the date the premium for the month is paid by Executive.
In addition, on each date on which the monthly Health Payments are
made, the Company shall pay to Executive an additional amount equal to
the federal, state and local income and payroll taxes that Executive
incurs on each monthly Health Payment (the “Health Gross-up Payment”).
The Health Payment and the Health Gross-up Payment shall be reimbursed
to Executive in a manner that complies with the requirements of Treas.
Reg. §1.409A-3(i)(1)(iv); and
	 
	 	(iii)	 	pay to Executive a lump sum cash payment
within thirty (30) days following Executive’s Termination Date equal to
the premium cost of continuing the life and disability insurance in
effect on Executive’s Termination Date for the period ending on the
earlier of

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	 	 	 	(A) the end of the twelfth month after the Termination Date, or (B)
Executive’s death; provided that the continuation of such benefits is
not prohibited by the terms of the plan or by the Company for legal
reasons.

	 	(iv)	 	If any payment or benefit to Executive under
this Agreement would be considered a “parachute payment” within the
meaning of Section 280G(b)(2) of the Code and, if, after reduction for
any applicable federal excise tax imposed by Section 4999 of the Code
(the “Excise Tax”) and federal income tax imposed by the Code,
Executive’s net proceeds of the amounts payable and the benefits
provided under this Agreement would be less than the amount of
Executive’s net proceeds resulting from the payment of the Reduced
Amount described below, after reduction for federal income taxes, then
the amount payable and the benefits provided under this Agreement shall
be limited to the Reduced Amount. The “Reduced Amount” shall be the
largest amount that could be received by Executive under this Agreement
such that no amount paid to Executive under this Agreement and any
other agreement, contract or understanding heretofore or hereafter
entered into between Executive and the Company (the “Other Agreements”)
and any formal or informal plan or other arrangement heretofore or
hereafter adopted by the Company for the direct or indirect provision
of compensation to Executive (including groups or classes of
participants or beneficiaries of which Executive is a member), whether
or not such compensation is deferred, is in cash, or is in the form of
a benefit to or for Executive (a “Benefit Plan”) would be subject to
the Excise Tax. In the event the amount payable to Executive shall be
limited to the Reduced Amount, then Executive shall have the right, in
Executive’s sole discretion, to designate those payments or benefits
under this Agreement, any Other Agreements, and/or any Benefit Plans,
that should be reduced or eliminated so as to avoid having the payment
to Executive under this Agreement be subject to the Excise Tax.
	 
	 	(v)	 	Notwithstanding any provision to the contrary
herein, if at the time of Executive’s termination of employment the
Company’s stock is publicly traded and Executive is a “specified
employee” (as such term is defined in section 409A(2)(B)(i) of the Code
and its corresponding regulations), then all cash payments to Executive
pursuant to this Section 4(a) that are deemed as deferred compensation
subject to the requirements of section 409A of the Code shall not be
paid to Executive until as soon as administratively practicable
following the expiration of the six month period following the date of
Executive’s Termination Date, but not later than the first Company
payroll date that occurs after the end of such six month period. If
Executive dies during such

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	 	 	 	six-month period and prior to the payment of the postponed cash
amounts hereunder, the amounts withheld on account of section 409A of
the Code shall be paid to the personal representative of Executive’s
estate within thirty (30) days after the date of Executive’s death.
If any of the cash payments payable pursuant to this Section 4(a) are
deferred due to such requirements, there shall be added to such
payments interest during the deferral period at a rate, per annum,
equal to the applicable federal short-term deferral rate (compounded
monthly) in effect under section 1274(d) of the Code on Executive’s
Termination Date.

	 	(b)	 	Other Termination. In the event Executive’s employment
terminates other than as set forth in Section 4(a), Executive’s rights upon
termination shall be governed by the Company’s standard employment termination
policies and practices applicable to Executive in effect at the time of
termination or, if applicable, any written employment agreement between the
Company and Executive other than this Agreement in effect at the time of
termination.
	 
	 	(c)	 	Termination Notice. Except in the event of Executive’s
death, a termination under this Agreement shall be effected by means of a
Termination Notice.

     5. Restrictive Covenants.

	 	(a)	 	Covenant Not to Compete. During the term of this
Agreement and for a period of one year following the Termination Date of
Executive’s employment, Executive shall not, without the express written
consent of the Company, directly or indirectly: (I) engage, anywhere within the
geographical areas in which the Company is conducting business operations or
providing services as of the date of Executive’s termination of employment, in
the tissue engineering business (the use of implantable absorbable materials,
with or without a bioactive component, to attempt to elicit a specific cellular
response in order to regenerate tissue or to impede the growth of tissue or
migration of cells) (the “Tissue Engineering Business”), neurosurgery business
(the use of surgical instruments, implants, monitoring products or disposable
products to treat the brain or central nervous system) (“Neurosurgery
Business”), instrument business (general surgical handheld instruments used for
general purposes in surgical procedures) (“Instrument Business”),
reconstruction business (bone fixation devices for foot and ankle
reconstruction procedures) (“Reconstruction Business”) or in any other line of
business the revenues of which constituted at least 50% of the Company’s
revenues during the six (6) month period prior to the Termination Date
(together with the Tissue Engineering Business, Neurosurgery Business,
Instrument Business and Reconstruction Business, the “Business”); (II) be or
become a stockholder, partner, owner, officer, director or employee or agent
of, or a

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	 	 	 	consultant to or give financial or other assistance to, any person or entity
engaged in the Business; (III) seek in competition with the Business to
procure orders from or do business with any customer of Company; (IV)
solicit, or contact with a view to the engagement or employment by any
person or entity of, any person who is an employee of Company; (V) seek to
contract with or engage (in such a way as to adversely affect or interfere
with the business of Company) any person or entity who has been contracted
with or engaged to manufacture, assemble, supply or deliver products, goods,
materials or services to Company; or (VI) engage in or participate in any
effort or act to induce any of the customers, associates, consultants, or
employees of Company to take any action which might be disadvantageous to
Company; provided, however, that nothing herein shall prohibit Executive and
his affiliates from owning, as passive investors, in the aggregate not more
than 5% of the outstanding publicly traded stock of any corporation so
engaged and provided, further, however, that nothing set forth in this
Section 5(a) shall prohibit Executive from becoming an employee or agent of,
or consultant to, any entity that is engaged in the Business so long as
Executive does not engage in any activities in the Business in any capacity
for said entity.

	 	(b)	 	Confidentiality. Executive acknowledges a duty of
confidentiality owed to Company and shall not, at any time during or after his
employment by Company, retain in writing, use, divulge, furnish, or make
accessible to anyone, without the express authorization of the Board, any trade
secret, private or confidential information or knowledge of Company obtained or
acquired by him while so employed. All computer software, business cards,
telephone lists, customer lists, price lists, contract forms, catalogs, Company
books, records, files and know-how acquired while an employee of Company are
acknowledged to be the property of Company and shall not be duplicated, removed
from Company’s possession or premises or made use of other than in pursuit of
Company’s business or as may otherwise be required by law or any legal process,
or as is necessary in connection with any adversarial proceeding against
Company and, upon termination of employment for any reason, Executive shall
deliver to Company all copies thereof which are then in his possession or under
his control. No information shall be treated as “confidential information” if
it is generally available public knowledge at the time of disclosure or use by
Executive.
	 
	 	(c)	 	Inventions and Improvements. Executive shall promptly
communicate to Company all ideas, discoveries and inventions which are or may
be useful to Company or its business. Executive acknowledges that all such
ideas, discoveries, inventions, and improvements which heretofore have been or
are hereafter made, conceived, or reduced to practice by him at any time during
his employment with Company heretofore or hereafter gained by him at any time
during his employment with Company are the property of Company, and Executive
hereby irrevocably assigns all such ideas,

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	 	 	 	discoveries, inventions and improvements to Company for its sole use and
benefit, without additional compensation. The provisions of this Section
5(c) shall apply whether such ideas, discoveries, inventions, or
improvements were or are conceived, made or gained by him alone or with
others, whether during or after usual working hours, whether on or off the
job, whether applicable to matters directly or indirectly related to
Company’s business interests (including potential business interests), and
whether or not within the specific realm of his duties. Executive shall,
upon request of Company, but at no expense to Executive, at any time during
or after his employment with Company, sign all instruments and documents
reasonably requested by Company and otherwise cooperate with Company to
protect its right to such ideas, discoveries, inventions, or improvements
including applying for, obtaining and enforcing patents and copyrights
thereon in such countries as Company shall determine.

	 	(d)	 	Breach of Covenant. Executive expressly acknowledges
that damages alone will be an inadequate remedy for any breach or violation of
any of the provisions of this Section 5 and that Company, in addition to all
other remedies, shall be entitled as a matter of right to equitable relief,
including injunctions and specific performance, in any court of competent
jurisdiction. If any of the provisions of this Section 5 are held to be in any
respect unenforceable, then they shall be deemed to extend only over the
maximum period of time, geographic area, or range of activities as to which
they may be enforceable.
	 
	 	(e)	 	Survivability. Executive’s obligations under this
Section 5 shall survive termination of this Agreement and/or termination of
Executive’s employment regardless of the manner of termination and shall be
binding upon Executive’s heirs, executors, administrators and legal
representatives.

     6. Condition to Payment. Executive’s receipt of the compensation benefits set forth
herein are expressly conditioned upon the individual’s execution of a general release satisfactory
to the Company.

     7. No Duty to Mitigate. Executive shall not be required to mitigate the amount of any
payment or benefit provided for in this Agreement by seeking other employment or otherwise, nor
shall the amount of any payment or benefit provided for herein be reduced by any compensation
earned by other employment or otherwise.

     8. No Set-off. Following a Change in Control, the Company’s obligation to make the
payments provided for in this Agreement and otherwise to perform its obligations hereunder shall
not be affected by any circumstances, including, without limitation, any set-off, counterclaim,
recoupment, defense or other right which the Company may have against the Executive or otherwise
arising.

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     9. Limitation on Obligations of Company. Executive understands that this Agreement
does not create an obligation on the Company or any other person or entity to continue his
employment or to exploit any Inventions. Executive understands and acknowledges that his
employment with the Company is for an unspecified duration and constitutes “at-will” employment and
that this employment relationship may be terminated at any time, with or without cause, either at
my or the Company’s option, with or without notice.

     10. Executive Duties. Executive shall not terminate employment with the Company
without giving 30 days’ prior notice to the Board, and during such 30-day period Executive will
assist, as and to the extent reasonably requested by the Company, in training the successor to
Executive’s position with the Company. The provisions of this Section 10 shall not apply to any
termination (voluntary or involuntary) of the employment of Executive pursuant to Section 4(a)
hereof.

     11. Withholding. Company shall have the right to withhold from all payments made
pursuant to this Agreement any federal, state, or local taxes and such other amounts as may be
required by law to be withheld from such payments.

     12. Assignability. Company may assign this Agreement and its rights and obligations
hereunder in whole, but not in part, to any entity to which Company may transfer all or
substantially all of its assets, if in any such case said entity shall expressly in writing assume
all obligations of Company hereunder as fully as if it had been originally made a party hereto.
Company may not otherwise assign this Agreement or its rights and obligations hereunder. This
Agreement is personal to Executive and his rights and duties hereunder shall not be assigned except
as expressly agreed to in writing by Company.

     13. Death of Executive. Any amounts due Executive under this Agreement (not including
any Base Salary not yet earned by Executive) unpaid as of the date of Executive’s death shall be
paid in a single sum within thirty (30) days after Executive’s death to Executive’s surviving
spouse, or if none, to the duly appointed personal representative of his estate.

     14. Legal Expenses. In the event of a termination pursuant to Section 4(a) hereof,
the Company shall also pay to Executive all reasonable legal fees and expenses incurred by
Executive as a result of such termination of employment (including all fees and expenses, if any,
incurred by Executive in contesting or disputing any such termination or in seeking to obtain to
enforce any right or benefit provided to Executive by this Agreement whether by arbitration or
otherwise).

     15. Miscellaneous.

	 	(a)	 	Amendment. No provision of this Agreement may be
amended unless such amendment is signed by Executive and such officer as may be
specifically designated by the Board to sign on Company’s behalf.
	 
	 	(b)	 	Nature of Obligations. Nothing contained herein shall
create or require Company to create a trust of any kind to fund any benefits
which may be payable hereunder, and to the extent that Executive acquires a
right to

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	 	 	 	receive benefits from Company hereunder, such right shall be no greater than
the right of any unsecured general creditor of the Company.

	 	(c)	 	ERISA. For purposes of the Executive Retirement Income
Security Act of 1974, this Agreement is intended to be a severance pay
Executive welfare benefit plan, and not an Executive pension plan, and shall be
construed and administered with that intention.
	 
	 	(d)	 	Prior Employment. Executive represents and warrants
that his acceptance of employment with Company has not breached, and the
performance of his duties hereunder will not breach, any duty owed by him to
any prior employer or other person.
	 
	 	(e)	 	Headings. The Section headings contained in this
Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation or this Agreement. In the event of a conflict
between a heading and the content of a Section, the content of the Section
shall control.
	 
	 	(f)	 	Gender and Number. Whenever used in this Agreement, a
masculine pronoun is deemed to include the feminine and a neuter pronoun is
deemed to include both the masculine and the feminine, unless the context
clearly indicates otherwise. The singular form, whenever used herein, shall
mean or include the plural form where applicable.
	 
	 	(g)	 	Severability. If any provision of this Agreement or
the application thereof to any person or circumstance shall be invalid or
unenforceable under any applicable law, such event shall not affect or render
invalid or unenforceable any other provision of this Agreement and shall not
affect the application of any provision to other persons or circumstances.
	 
	 	(h)	 	Binding Effect. This Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors,
permitted assigns, heirs, executors and administrators.
	 
	 	(i)	 	Notice. For purposes of this Agreement, notices and
all other communications provided for in this Agreement shall be in writing and
shall be deemed to have been duly given if hand-delivered, sent by documented
overnight delivery service or by certified or registered mail, return receipt
requested, postage prepaid, addressed to the respective addresses set forth
below:

          To the Company:

	 	 	 	Integra LifeSciences Holdings Corporation

311 Enterprise Drive

Plainsboro, New Jersey 08536

Attn: President and CEO

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          With a copy to:

	 	 	 	The Company’s General Counsel:

          To the Executive:

	 	 	 	Ms. Judith O’Grady

XXXXX

XXXXX

	 	(j)	 	Entire Agreement. This Agreement sets forth the entire
understanding of the parties and supersedes all prior agreements, arrangements
and communications, whether oral or written, pertaining to the subject matter
hereof.
	 
	 	(k)	 	Governing Law. The validity, interpretation,
construction and performance of this Agreement shall be governed by the laws of
the United States where applicable and otherwise by the laws of the State of
New Jersey.
	 
	 	(l)	 	Section 409A.

	 	(i)	 	This Agreement shall be interpreted to avoid
any penalty sanctions under section 409A of the Code. If any payment
or benefit cannot be provided or made at the time specified herein
without incurring sanctions under section 409A, then such benefit or
payment shall be provided in full at the earliest time thereafter when
such sanctions will not be imposed. All payments to be made upon a
termination of employment under this Agreement may only be made upon a
“separation from service” under section 409A of the Code. For purposes
of section 409A of the Code, each payment made under this Agreement
shall be treated as a separate payment. In no event may Executive,
directly or indirectly, designate the calendar year of payment.
	 
	 	(ii)	 	All reimbursements provided under this
Agreement shall be made or provided in accordance with the requirements
of section 409A, including, where applicable, the requirement that (A)
any reimbursement is for expenses incurred during Executive’s lifetime
(or during a shorter period of time specified in this Agreement), (B)
the amount of expenses eligible for reimbursement during a calendar
year may not affect the expenses eligible for reimbursement in any
other calendar year, (C) the reimbursement of an eligible expense will
be made on or before the last day of the calendar year following the
year in which the expense is incurred, and (D) the right to
reimbursement is not subject to liquidation or

13

 

	 	 	 	exchange for another benefit. If expenses are incurred in connection
with litigation, any reimbursements under the Agreement shall be paid
not later than the end of the calendar year following the year in
which the litigation is resolved.

     IN WITNESS WHEREOF, this Agreement has been executed as of the date first above written.

	 	 	 
	INTEGRA LIFESCIENCES

	 	EXECUTIVE
	EXECUTIVE HOLDINGS CORPORATION
	 	 
	 
	 	 
	 
	 	 
	By: /s/ Stuart M. Essig

	 	/s/ Judith E. O’Grady
	Its: President and Chief Executive Officer
	 	 

14EX-10.25.C

     Exhibit 10.25(c)

AMENDMENT 2008-1

TO THE

STUART M. ESSIG CONTRACT STOCK/RESTRICTED UNITS AGREEMENT

DATED AS OF JULY 27, 2004 

     THIS AMENDMENT, dated as of March 6, 2008, between Integra LifeSciences Holdings Corporation,
a Delaware Corporation (the “Company”) and Stuart M. Essig (“Executive”).

RECITALS

     WHEREAS, pursuant to a Contract Stock/Restricted Units Agreement, dated as of July 24, 2004,
(the “RSU Agreement”) the Company granted to Executive an aggregate of 750,000 restricted units
that represented an equal number of shares of restricted common stock of the Company, par value
$0.01 per share, under the Integra LifeSciences Holdings Corporation 2003 Equity Incentive Plan;

     WHEREAS, on October 30, 2006, the Company and Executive entered into Amendment 2006-1 to the
RSU Agreement (“Amendment 2006-1”) to comply with the requirements of section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”) and the corresponding proposed regulations
thereunder;

     WHEREAS, subsequent to execution of Amendment 2006-1, final regulations were issued under
section 409A of the Code;

     WHEREAS, the Company and Executive mutually desire to amend the RSU Agreement to comply with
the requirements of section 409A of the Code and the corresponding final regulations thereunder;
and

     WHEREAS, Section 11 of the RSU Agreement provides that the RSU Agreement may be amended
pursuant to a written agreement between the Company and Executive.

     NOW, THEREFORE, the Company and Executive hereby agree that, effective March ___, 2008, the RSU
Agreement shall be amended as follows:

     1. Section 4(a) of the RSU Agreement, as amended by Amendment 2006-1, is hereby amended in its
entirety to read as follows:

“(a) The shares of Common Stock underlying the Units (the “Unit Shares”) shall be
paid out to Executive within thirty (30) days following the first business day that
occurs immediately following the 6-month period after the date of Executive’s
‘separation from service’ from the Company (within the meaning of section
409A(a)(2)(A)(i) of the Internal Revenue Code of 1986, as amended (the ‘Code’) and
its corresponding regulations)); provided, however, that Executive shall have a
one-time opportunity to specify a date (which is no sooner than January 1, 2008 and
no later than June 20, 2029) on which the Unit Shares shall be delivered if such
date occurs after the date on which Executive’s separation

 

 

from service with the Company occurs by giving written notice to the Company by
December 31, 2007. Notwithstanding the foregoing, if a Change in Control (as
defined in the Employment Agreement) occurs prior to Executive’s separation from
service with the Company and the date designated by Executive, if any, pursuant to
the immediately preceding sentence, the Unit Shares shall be paid to Executive on
the date of the Change in Control; provided, however, that such payment shall only
occur if the Change in Control meets the requirements of section 409A(a)(2)(v) of
the Code and its corresponding regulations.”

     2. The last sentence of Section 6(f) of the RSU Agreement is hereby amended in its entirety to
read as follows:

“Such rights or warrants shall be exercisable at the same time, on the same terms
and for the same price as the rights or warrants distributed to holders of the
Common Stock; provided, however, that if such rights or warrants are deemed to be
deferred compensation subject to the requirements of section 409A of the Code, such
rights or warrants shall be distributed to Executive in a manner that complies with
such requirements.”

     3. Section 9 of the RSU Agreement is hereby amended in its entirety to read as follows:

“9. Arbitration, Legal Fees and Expenses. If any contest or dispute shall
arise between the Company and Executive regarding any provision of this Agreement,
the Company shall reimburse Executive for all legal fees and expenses reasonably
incurred by Executive during his lifetime in connection with such contest or
dispute, pursuant to the provisions of Section 8.1 of the Employment Agreement. The
application of this Section 9 (and Section 8.1 of the Employment Agreement) shall
survive the termination of the Employment Agreement. The foregoing limitation shall
not preclude the Executive’s estate or heirs from recovering reasonable legal fees
(and related expenses) in accordance with the provisions hereof in the event that
Executive’s estate or heirs initiate or continue any dispute or controversy arising
under or in connection with this Agreement after Executive’s death; provided,
however, that such reasonable legal fees (and related expenses) are incurred within
the six (6)-year period following the date of Executive’s death. Such reimbursement
shall be made within ninety (90) days following the resolution of such contest or
dispute (whether or not appealed), but not later than the end of the calendar year
following the year in which the contest or dispute is resolved, to the extent the
Company receives reasonable written evidence of such fees and expenses. Any dispute
or controversy arising under or in connection with this Agreement shall be settled
exclusively by arbitration in Princeton, New Jersey in accordance with the
Commercial Arbitration Rules of the American Arbitration Association then in effect.
Judgment may be entered on the arbitrator’s award in any court having jurisdiction.”

     4. Section 20 of the RSU Agreement is hereby amended in its entirety to read as follows:

2

 

“20. Section 409A of the Code. This Agreement is intended to comply with
the requirements of section 409A of the Code, and shall in all respects be
administered in accordance with section 409A. Notwithstanding anything in the
Agreement to the contrary, payment may only be made under the Agreement upon an
event and in a manner permitted by section 409A of the Code. If a payment is not
made by the designated payment date under the Agreement, the payment shall be made
by December 31 of the calendar year in which the designated date occurs. Any
payment to be made upon a termination of employment under this Agreement may only be
made upon a ‘separation from service’ under section 409A of the Code. To the extent
that any provision of the Agreement would cause a conflict with the requirements of
section 409A of the Code, or would cause the administration of the Agreement to fail
to satisfy the requirements of section 409A, such provision shall be deemed null and
void to the extent permitted by applicable law.”

     5. In all respects not modified by this Amendment 2008-1, the RSU Agreement and Amendment
2006-1 are hereby ratified and confirmed.

     IN WITNESS WHEREOF, the Company and Executive agree to the terms of the foregoing Amendment
2008-1, effective as of the date set forth above.

	 	 	 	 	 
	 	INTEGRA LIFESCIENCES
HOLDINGS CORPORATION

 	 
	 	By:  	/s/ Richard Caruso
 	 
	 	 	Name:  	Richard Caruso 	 
	 	 	Title:  	Chairman 	 
	 
	 	EXECUTIVE

 	 
	 	 	/s/ Stuart M. Essig
 	 
	 	 	Stuart M. Essig 	 
	 	 	 
	 

3

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