Document:

exv10w19

 

Exhibit 10.19

FOUNDRY NETWORKS, INC.

2006 STOCK INCENTIVE PLAN

NOTICE OF STOCK APPRECIATION RIGHT

Recipient:

	 	 	 
	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

     You have been granted a stock appreciation right (the “SAR”) with respect to Common Stock of
Foundry Networks, Inc. (the “Company”), as follows:

	 	 	 	 	 	 	 
	 

	 	Date of Grant:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Exercise Price Per Share:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Total Number of Shares:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Total Exercise Price:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Expiration Date:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Vesting Commencement Date:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	Vesting Schedule:	 	So long as your Service continues, this SAR shall vest and become
exercisable in accordance with the following schedule: this SAR shall vest and become
exercisable with respect to 12.5% of the Total Number of Shares subject to this SAR on
the 6-month anniversary of the Vesting Commencement Date and 1/48th of the Total Number
of Shares subject to this SAR on each monthly anniversary thereafter.

 

 

	 	 	 	 	 	 	 
	Termination Period:	 	 	 	You may exercise this SAR for 3 months after termination of your Service except
as set forth in Section 4 of the Stock Appreciation Right Agreement (but in no event later
than the Expiration Date). You are responsible for keeping track of these exercise periods
following a termination of your Service for any reason. The Company will not provide further
notice of such period.

       Unless otherwise defined in this Notice of Stock Appreciation Right, the terms used herein
shall have the meanings assigned to them in the Plan.

       By your signature and the signature of the Company’s representative below, you and the Company
agree that this SAR is granted under and governed by the terms and conditions of the Foundry
Networks, Inc. 2006 Stock Incentive Plan and the Stock Appreciation Right Agreement, all of which
are attached to, and made a part of, this document.

     In addition, you agree and acknowledge that your rights to any Shares underlying this SAR will
be earned only as you provide Service over time, that this SAR is not being granted to you as
consideration for services you rendered to the Company (or any Parent, Subsidiary, or Affiliate),
prior to your Vesting Commencement Date, and that nothing in this Notice of Stock Appreciation
Right or the attached documents confers upon you any right to continue your employment or
consulting relationship with the Company (or any Parent, Subsidiary, or Affiliate) for any period
of time, nor does it interfere in any way with your right or the Company’s (or any Parent’s,
Subsidiary’s, or Affiliate’s) right to terminate that relationship at any time, for any reason,
with or without cause.

	 	 	 	 	 	 	 	 	 	 	 
	RECIPIENT:	 	 	 	FOUNDRY NETWORKS, INC.	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 

Signature

	 	 	 	 	 	 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 	 	 
	 

Print Name

	 	 	 	 	 	 

	 	 	 	 

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FOUNDRY NETWORKS, INC.

2006 STOCK INCENTIVE PLAN

STOCK APPRECIATION RIGHT AGREEMENT

     1. Grant of SAR. Foundry Networks, Inc., a Delaware corporation (the “Company”),
hereby grants to the Recipient named in the Notice of Stock Appreciation Right attached to this
Stock Appreciation Right Agreement (the “Recipient”), a stock appreciation right (the “SAR”) to
with respect to the total number of shares of Common Stock (the “Shares”) set forth in the Notice
of Stock Appreciation Right (the “Notice”), at the exercise price per Share set forth in the Notice
(the “Exercise Price”) subject to the terms, definitions and provisions of the 2006 Stock Incentive
Plan (the “Plan”), which is incorporated in this Stock Appreciation Right Agreement (the
“Agreement”) by reference. Unless otherwise defined in this Agreement, the terms used in this
Agreement shall have the meanings defined in the Plan.

     2. Exercise of SAR. This SAR shall be exercisable during its term in accordance with
the Vesting Schedule set out in the Notice and with the applicable provisions of the Plan as
follows:

          (a) Right to Exercise.

               (i) This SAR may not be exercised with respect to a fraction of a share.

               (ii) In the event of Recipient’s termination of Service, the exercisability of this SAR shall
be governed by Section 4 below, subject to the limitations contained in paragraph (iii) below.

               (iii) In no event may this SAR be exercised after the Expiration Date as set forth in the
Notice.

          (b) Method of Exercise.

               (i) This SAR shall be exercisable by execution and delivery of the Notice of Exercise attached
hereto as Exhibit A or of any other form of written notice approved for such purpose by the
Company which shall state Recipient’s election to exercise this SAR, the number of Shares in
respect of which this SAR is being exercised, and such other representations and agreements as to
the holder’s investment intent with respect to such Shares as may be required by the Company
pursuant to the provisions of the Plan. Such written notice shall be signed by Recipient and shall
be delivered to the Company by such means as are determined by the Committee in its discretion to
constitute adequate delivery.

               (ii) As a condition to the exercise of this SAR and as further set forth in Section 13 of the
Plan, Recipient agrees to make adequate provision

 

 

for federal, state or other tax withholding obligations, if any, which arise upon the grant,
vesting or exercise of this SAR, or disposition of Shares, whether by withholding, direct payment
to the Company, or otherwise.

               (iii) The Company is not obligated, and will have no liability for failure, to issue or
deliver any Shares upon exercise of this SAR unless such issuance or delivery would comply with all
applicable laws, rules and regulations, with such compliance determined by the Company in
consultation with its legal counsel. This SAR may not be exercised until such time as the Plan has
been approved by the Company’s stockholders, or if the issuance of such Shares upon such exercise
or the method of payment of consideration for such Shares would constitute a violation of any
applicable laws, rules or regulations, including any applicable U.S. federal or state securities
laws or any other law or regulation, including any rule under Part 221 of Title 12 of the Code of
Federal Regulations as promulgated by the Federal Reserve Board. As a condition to the exercise of
this SAR, the Company may require Recipient to make any representation and warranty to the Company
as may be required by applicable laws, rules or regulations. Assuming such compliance, for income
tax purposes the Shares shall be considered transferred to Recipient on the date on which this SAR
is exercised with respect to such Shares.

               (iv) Subject to compliance with all applicable laws, rules and regulations, this SAR shall be
deemed to be exercised upon receipt by the Company of the appropriate written notice of exercise
accompanied by the satisfaction of any applicable withholding obligations.

     3. Distribution Pursuant to Exercise. Upon exercise of this SAR pursuant to Section 2
above, Recipient will receive a payment equal to the difference between the aggregate Fair Market
Value of the Shares with respect to which this SAR is exercised and determined as of the exercise
date and the aggregate Exercise Price, which payment shall be made in Shares, provided that any
amount equal to less than the Fair Market Value of one full Share on the exercise date shall be
paid to the Recipient in cash. Such payment shall be made as soon as reasonably practicable
following the exercise.

     4. Termination of Relationship. Following the date of termination of Recipient’s
Service for any reason (the “Termination Date”), Recipient may exercise this SAR only as set forth
in the Notice and this Section 4. To the extent that Recipient is not entitled to exercise this
SAR as of the Termination Date, or if Recipient does not exercise this SAR within the Termination
Period set forth in the Notice or the termination periods set forth below, this SAR shall terminate
in its entirety. In no event, may this SAR be exercised after the Expiration Date of this SAR set
forth in the Notice. In the event of termination of Recipient’s Service other than as a result of
Recipient’s Disability or death or for Cause, Recipient may, to the extent Recipient is vested in
this SAR at the Termination Date, exercise this SAR during the Termination Period set forth in the
Notice. In the event of any other termination, Recipient may exercise this SAR only as described
below:

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          (a) Termination upon Disability of Recipient. In the event of termination of
Recipient’s Service as a result of Recipient’s Disability, Recipient may, but only within 12 months
from the Termination Date, exercise this SAR to the extent Recipient was vested in this SAR as of
such Termination Date.

          (b) Death of Recipient. In the event of the death of Recipient while in Service or
within 30-days following the termination of Recipient’s Service, this SAR may be exercised at any
time within 12 months following the date of death by Recipient’s estate or by a person who acquired
the right to exercise this SAR by bequest or inheritance, but only to the extent Recipient was
vested in this SAR as of the Termination Date.

          (c) Termination for Cause. In the event Recipient’s Service is terminated for Cause,
this SAR shall terminate immediately upon such termination for Cause. In the event Recipient’s
employment or consulting relationship with the Company is suspended pending investigation of
whether such relationship shall be terminated for Cause, all Recipient’s rights under this SAR,
including the right to exercise this SAR, shall be suspended during the investigation period.

     5. Non-Transferability of SAR. This SAR may not be transferred in any manner otherwise
than by will or by the laws of descent or distribution. The designation of a beneficiary does not
constitute a transfer. This SAR may be exercised during the lifetime of Recipient only by
Recipient. The terms of this SAR shall be binding upon the executors, administrators, heirs,
successors and assigns of Recipient.

     6. No Employment Rights. Recipient understands and agrees that the vesting of Shares
pursuant to the Vesting Schedule is earned only by continuing Service at the will of the Company
(or any Parent, Subsidiary, or Affiliate) and not through the act of being hired, being granted
this SAR or acquiring Shares under this Agreement. Recipient further acknowledges and agrees that
nothing in this Agreement, nor in the Plan which is incorporated in this Agreement by reference,
shall confer upon Recipient any right with respect to continuation as an Employee or Consultant
with the Company (or any Parent, Subsidiary, or Affiliate), nor shall it interfere in any way with
his or her right or the Company’s (or any Parent’s, Subsidiary’s, or Affiliate’s) right to
terminate his or her employment or consulting relationship at any time, with or without cause.

     7. Effect of Agreement. Recipient acknowledges receipt of a copy of the Plan and
represents that he or she is familiar with the terms and provisions thereof (and has had an
opportunity to consult counsel regarding the SAR terms), and hereby accepts this SAR and agrees to
be bound by its contractual terms as set forth herein and in the Plan. Recipient hereby agrees to
accept as binding, conclusive and final all decisions and interpretations of the Committee
regarding any questions relating to this SAR. In the event of a conflict between the terms and
provisions of the Plan and the terms and provisions of the Notice and this Agreement, the Plan
terms and provisions shall prevail.

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     8. Miscellaneous.

          (a) Governing Law. This Agreement and all acts and transactions pursuant hereto and
the rights and obligations of the parties hereto shall be governed, construed and interpreted in
accordance with the laws of the State of California, without giving effect to principles of
conflicts of law.

          (b) Entire Agreement; Enforcement of Rights. This Agreement, together with the Notice
and the Plan, sets forth the entire agreement and understanding of the parties relating to the
subject matter herein and therein and merges all prior discussions between the parties. Except as
contemplated under the Plan, no modification of or amendment to this Agreement, nor any waiver of
any rights under this Agreement, shall be effective unless in writing signed by the parties to this
Agreement. The failure by either party to enforce any rights under this Agreement shall not be
construed as a waiver of any rights of such party.

          (c) Severability. If one or more provisions of this Agreement are held to be
unenforceable under applicable law, the parties agree to renegotiate such provision in good faith.
In the event that the parties cannot reach a mutually agreeable and enforceable replacement for
such provision, then (i) such provision shall be excluded from this Agreement, (ii) the balance of
this Agreement shall be interpreted as if such provision were so excluded and (iii) the balance of
this Agreement shall be enforceable in accordance with its terms.

          (d) Notices. Any notice required or permitted by this Agreement shall be in writing
and shall be deemed sufficient when delivered personally or sent by telegram or fax or 48 hours
after being deposited in the U.S. mail, as certified or registered mail, with postage prepaid, and
addressed to the Company at its principal corporate offices and to Recipient at the address
maintained for Recipient in the Company’s records.

          (e) Successors and Assigns. The rights and benefits of this Agreement shall inure to
the benefit of, and be enforceable by the Company’s successors and assigns. The rights and
obligations of Recipient under this Agreement may not be assigned without the prior written consent
of the Company.

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EXHIBIT A

NOTICE OF EXERCISE

	 	 	 
	To:

	 	Foundry Networks, Inc.
	Attn:

	 	Administrator of the 2006 Stock Incentive Plan
	Subject:

	 	Notice of Intention to Exercise Stock Appreciation Right

     This Notice of Exercise constitutes official notice that the undersigned intends to exercise
Recipient’s stock appreciation right covering                      shares of Foundry Networks, Inc. Common
Stock, under and pursuant to the Company’s 2006 Stock Incentive Plan (the “Plan”) and the Notice
of Stock Appreciation Right and Stock Appreciation Right Agreement (the “Agreement”) dated
                    , with respect to                      shares.

     The shares issued pursuant to this exercise should be registered in the name(s) of:

                                                            and

                                                            . 1

     By signing below, I hereby agree to be bound by all of the terms and conditions set forth
in the Plan and the Agreement. If applicable, proof of my right to exercise the stock appreciation
right pursuant to the Plan and the Agreement is enclosed. 2

	 	 	 	 	 
	Dated:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 
	 
	 	 
	(Signature)
	 	(Signature)3
	 	 	 
	 
	 	 
	(Please Print Name)
	 	(Please Print Name)
	 	 	 
	 
	 	 
	 	 	 
	 
	 
	 	 
	(Full Address)
	 	(Full Address)

 

			
	1	 	If more than one name is listed, please
specify whether the owners will hold the shares as community property or as
joint tenants with the right of survivorship.
	 
	2	 	Applicable if someone other than the
Recipient (e.g., a death beneficiary) is exercising this SAR.
	 
	3	 	Each person in whose name shares are to be
registered must sign this Notice of Exercise.Table of Contents
Exhibit
10.1

INDEMNIFICATION AGREEMENT

THIS AGREEMENT is entered
into as of May  12,  2006 between BioMimetic Therapeutics,
Inc., a Delaware corporation (the
‘‘Corporation’’), and
                                
(‘‘Indemnitee’’).

RECITALS

A.    The
Corporation believes that it is essential to its best interests to
attract and retain highly capable persons to serve as directors,
officers, and agents.

B.    Indemnitee is or has been
selected to be a director, officer, or agent of the
Corporation.

C.    The Corporation and Indemnitee recognize
the increased risk of litigation and other claims being asserted
against directors, officers, and other agents of the
Corporation.

D.    In recognition of Indemnitee’s need
for substantial protection against personal liability in order to
enhance Indemnitee’s service to the Corporation, and in order to
induce Indemnitee to provide or continue to provide services to the
Corporation as a director, officer, or agent, the Corporation wishes to
provide in this Agreement for the indemnification and the advancing of
expenses to Indemnitee to the fullest extent permitted by law and as
set forth in this Agreement and, to the extent applicable, insurance is
maintained for the coverage of Indemnitee under the
Corporation’s policies of directors’ and officers’
liability insurance.

IN CONSIDERATION of the foregoing and of
Indemnitee’s providing services to the Corporation directly or,
at its request, with another enterprise, the parties agree as
follows:

1.    DEFINITIONS.

1.1    Board:
The board of directors of the Corporation.

1.2    Change
in Control: A state of affairs that shall be deemed to have
occurred if:

(a)    Any person becomes the
‘‘beneficial owner’’ (as that term is
defined in Rule 13d-3 under the Securities Exchange Act of 1934, as
amended (the ‘‘Exchange Act’’)), directly
or indirectly, of securities representing twenty percent (20%)
or more of the total voting power of the Corporation’s
then-outstanding voting securities;

(b)    During any
period of two consecutive years, individuals who, at the beginning of
such period constitute the board, together with any new director whose
election by the board or nomination for election by the
Corporation’s shareholders was approved by a vote of at least
two-thirds (2/3) of the directors then in office either who were
directors at the beginning of the two-year period, or whose election or
nomination was previously so approved, cease for any reason to
constitute a majority of the board;

(c)    The
shareholders of the Corporation approve a merger or consolidation of
the Corporation with any other Corporation, other than a merger or
consolidation that would result in the voting securities of the
Corporation outstanding immediately before such merger or consolidation
continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity) at least
fifty-one percent (51%) of the total voting power represented by
the voting securities of the corporation or such surviving entity
outstanding immediately after such merger or consolidation;
or

(d)    The shareholders of the Corporation approve
a plan of complete liquidation of the Corporation, or an agreement for
the sale or disposition by the Corporation (whether in one transaction
or a series of transactions) of all or substantially all of the
Corporation’s assets.

1.3    Expenses:

(a)    Any expense, liability, or loss, including
attorneys’ fees, judgments, fines, ERISA excise taxes and
penalties, or amounts paid or to be paid in
settlement;

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(b)    Any interest,
assessments, or other charges imposed on any of the items in
subparagraph (a) above; and

(c)    Any federal,
state, local, or foreign taxes imposed as a result of the actual or
deemed receipt of any payments under this Agreement paid or incurred in
connection with investigating, defending, being a witness in,
participating in (including on appeal), or preparing for any of the
foregoing in, any proceeding relating to any Indemnifiable
Event.

1.4    Indemnifiable Event: Any event or
occurrence that takes place either before or after the execution of
this Agreement, related to the fact that Indemnitee is or was a
director or an officer of the Corporation, or while a director or
officer is or was serving at the request of the Corporation as a
director, officer, employee, trustee, agent, or fiduciary of another
foreign or domestic corporation, partnership, joint venture, employee
benefit plan, trust, or other enterprise, or was a director, officer,
employee, or agent of a foreign or domestic corporation that was a
predecessor corporation of the Corporation or another enterprise at the
request of such predecessor corporation, or related to anything done or
not done by Indemnitee in any such capacity, whether the basis of the
proceeding is an alleged action in an official capacity as a director,
officer, employee, or agent, or in any other capacity while serving as
a director, officer, employee, or agent of the Corporation, as
described in this paragraph.

1.5    Independent
Counsel: The person or body appointed in connection with Section
3.

1.6    Person:
‘‘person’’ (as that term is used in
§§13(d) and 14(d) of the Exchange Act), other than a
trustee or other fiduciary holding securities under an employee benefit
plan of the Corporation acting in such capacity or a Corporation owned,
directly or indirectly, by the shareholders of the Corporation in
substantially the same proportions as their ownership of shares of the
Corporation at the date of this
Agreement.

1.7    Participant: A person who is a
party to, or witness or participant (including on appeal) in, a
Proceeding.

1.8    Potential Change in Control: A
state of affairs that shall be deemed to exist
if:

(a)    The Corporation enters into an agreement
or arrangement, the consummation of which would result in the
occurrence of a Change in Control;

(b)    Any Person
(including the Corporation) announces publicly an intention to take or
to consider taking actions that, if consummated, would constitute a
Change in Control;

(c)    Any Person who is or
becomes the beneficial owner, directly or indirectly, of securities of
the Corporation representing ten percent (10%) or more of the
combined voting power of the Corporation’s then-outstanding
voting securities, increases his or her beneficial ownership of such
securities by five percent (5%) or more over the percentage
owned by such person on the date of this Agreement;
or

(d)    The Board adopts a resolution to the effect
that, for purposes of this Agreement, a Potential Change in Control has
occurred.

1.9    Proceeding: Any threatened,
pending, or completed action, suit, or proceeding, or any inquiry,
hearing or investigation, whether conducted by the Corporation or any
other party, that Indemnitee in good faith believes might lead to the
institution of any such action, suit, or proceeding, whether civil,
criminal, administrative, investigative, or
other.

1.10    Reviewing Party: The person or body
appointed in accordance with Section 3.

1.11    Voting
Securities: Any securities of the Corporation that have the right
to vote generally in the election of
directors.

2.    AGREEMENT TO
INDEMNIFY.

2.1    General Agreement. In the event
Indemnitee was, is, or becomes a participant in, or is threatened to be
made a participant in, a Proceeding by reason of (or arising in part
out of) an 

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Indemnifiable Event, the Corporation shall
indemnify the Indemnitee from and against any and all Expenses to the
fullest extent permitted by law, as the same exists or may hereafter be
amended or interpreted (but in the case of any such amendment or
interpretation, only to the extent that such amendment or
interpretation permits the Corporation to provide broader
indemnification rights than were permitted before this Agreement). The
parties to this Agreement intend indemnification in excess of that
expressly permitted by statute, including, without limitation, any
indemnification provided by the Corporation’s articles of
incorporation, its bylaws, a vote of its shareholders or disinterested
directors, or applicable law.

2.2    Initiation of
Proceeding. Notwithstanding anything in this Agreement to the
contrary, Indemnitee shall not be entitled to indemnification under
this Agreement in connection with any Proceeding initiated by
Indemnitee against the Corporation or any director or officer of the
Corporation unless (i) the Corporation has joined in or the Board has
consented to the initiation of such Proceeding; (ii) the Proceeding is
one to enforce indemnification rights under Section 5; or (iii) the
Proceeding is instituted after a Change in Control and Independent
Counsel has approved its initiation.

2.3    Expense
Advances. If so requested by Indemnitee, the Corporation shall
within ten (10) business days of such request, advance all Expenses to
Indemnitee (an ‘‘Expense Advance’’).
Notwithstanding the foregoing, to the extent that the Reviewing Party
determines that Indemnitee would not be permitted to be so indemnified
under applicable law, the Corporation shall be entitled to be
reimbursed by Indemnitee for all such amounts, and Indemnitee hereby
agrees to reimburse the Corporation promptly for the same. If
Indemnitee has commenced legal proceedings in a court of competent
jurisdiction to secure a determination that Indemnitee should be
indemnified under applicable law as provided in Section 4, any
determination made by the Reviewing Party that Indemnitee would not be
permitted to be indemnified under applicable law shall not be binding,
and Indemnitee shall not be required to reimburse the Corporation for
any Expense Advance until a final judicial determination is made (as to
which all rights of appeal have been exhausted or have lapsed).
Indemnitee’s obligation to reimburse the Corporation for Expense
Advances shall be unsecured and no interest shall be charged
thereon.

2.4    Mandatory Indemnification.
Notwithstanding any other provision of this Agreement, to the extent
that Indemnitee has been successful on the merits in defense of any
Proceeding relating in whole or in part to an Indemnifiable Event or in
defense of any issue or matter in such Proceeding, Indemnitee shall be
indemnified against all Expenses incurred in connection with such
issue, matter, or event.

2.5    Partial
Indemnification. If Indemnitee is entitled under any provision of
this Agreement to indemnification by the Corporation for a portion of
Expenses, but not for the total amount of Expenses, the Corporation
shall indemnify the Indemnitee for the portion to which Indemnitee is
entitled.

2.6    Exceptions to Indemnification. No
indemnification pursuant to this Agreement shall be paid by the
Corporation:

(a)    in respect to any transaction if
it shall be determined by the Reviewing Party, or by final judgment or
other final adjudication, that Indemnitee derived an improper personal
benefit;

(b)    on account of Indemnitee’s
conduct which is determined by the Reviewing Party, or by final
judgment or other final adjudication, to have involved acts or
omissions that Indemnitee knew or should have known were unlawful,
fraudulent, dishonest, or constitute willful misconduct;

(c)    if the Reviewing Party or a court having
jurisdiction in the matter shall determine that such indemnification is
in violation of the Corporation’s Certificate of Incorporation,
its By-Laws or the law; or

(d)    on account of any
Proceeding in which judgment is rendered against Indemnitee for an
accounting of profits made from the purchase or sale by Indemnitee of
securities of the Corporation under the provisions of Section 16(b) of
the Exchange Act or similar provisions of any federal, state, or local
laws.

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3.    REVIEWING PARTY.

Before any
Change in Control, the Reviewing Party shall be any appropriate person
or body consisting of a member or members of the Board or any other
person or body appointed by the Board who is not a party to the
Proceeding with respect to which Indemnitee is seeking indemnification;
after a Change in Control, the Reviewing Party shall be the Independent
Counsel. With respect to all matters arising after a Change in Control
concerning the rights of Indemnitee to indemnity payments and Expense
Advances under this Agreement or any other agreement or under
applicable law or the Corporation’s articles of incorporation or
bylaws now or hereafter in effect relating to indemnification for
Indemnifiable Events, the Corporation shall seek legal advice only from
Independent Counsel selected by Indemnitee and approved by the
Corporation, the approval of whom shall not be unreasonably withheld,
and who has not otherwise performed services for the Corporation or
Indemnitee (other than in connection with indemnification matters)
within the last five years. The Independent Counsel shall not include
any person who, under the applicable standards of professional conduct
then prevailing, would have a conflict of interest in representing
either the Corporation or Indemnitee in an action to determine
Indemnitee’s rights under this Agreement. The counsel, among
other things, shall render a written opinion to the Corporation and
Indemnitee as to whether and to what extent Indemnitee should be
permitted to be indemnified under applicable law. The Corporation
agrees to pay the reasonable fees of the Independent Counsel and to
indemnify fully such counsel against any and all expenses, including
attorneys’ fees, claims, liabilities, loss, and damages arising
out of or relating to this Agreement or the engagement of Independent
Counsel under this Agreement.

4.    INDEMNIFICATION PROCESS
AND APPEAL.

4.1    Indemnification Payment.
Indemnitee shall receive indemnification of Expenses from the
Corporation in accordance with this Agreement as soon as practicable
after Indemnitee has made written demand on the Corporation for
indemnification, unless the Reviewing Party has given a written opinion
to the Corporation that Indemnitee is not entitled to indemnification
under this Agreement or applicable law.

4.2    Suit To
Enforce Rights. Regardless of any action by the Reviewing Party,
if Indemnitee has not received full indemnification within thirty (30)
days after making a demand in accordance with Section 4.1 above,
Indemnitee shall have the right to enforce its indemnification rights
under this Agreement by commencing litigation in any court jurisdiction
in which the Corporation has an office seeking an initial determination
by the court or challenging any determination by the Reviewing Party or
any aspect of the Agreement. The Corporation hereby consents to service
of process and to appear in any such proceeding. Any determination by
the Reviewing Party not challenged by Indemnitee shall be binding on
the Corporation and Indemnitee. The remedy provided in this Section 4.2
shall be in addition to any other remedies available to Indemnitee in
law or equity.

4.3    Defense to Indemnification, Burden
of Proof, and Presumptions. It shall be a defense to any action
brought by Indemnitee against the Corporation to enforce this Agreement
(other than an action brought to enforce a claim for Expenses incurred
in defending a proceeding in advance of its final disposition when the
required undertaking has been tendered to the Corporation) that it is
not permissible under this Agreement or applicable law for the
Corporation to indemnify the Indemnitee for the amount claimed. In
connection with any such action or any determination by the Reviewing
Party or otherwise as to whether Indemnitee is entitled to be
indemnified under this Agreement, the burden of proving such a defense
or determination shall be on the Corporation. Neither the failure of
the Reviewing Party or the Corporation (including its Board,
Independent Counsel, or its shareholders) to have made a determination
prior to the commencement of such action by Indemnitee that
indemnification is proper under the circumstances because Indemnitee
has met the standard of conduct set forth in applicable law, nor an
actual determination by the Reviewing Party or Corporation (including
its Board, Independent Counsel, or its shareholders) that Indemnitee
had not met such applicable standard of conduct shall be a defense to
the action or create a presumption that Indemnitee has not met the
applicable standard of conduct. For purposes of this Agreement, the
termination of any claim, action, suit, or proceeding, by judgment,
order, settlement (whether with or 

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without court approval), conviction, or on a
plea of nolo contendere, or its equivalent, shall not create a
presumption that Indemnitee did not meet any particular standard of
conduct or have any particular belief, or that a court has determined
that indemnification is not permitted by applicable
law.

5.    INDEMNIFICATION FOR EXPENSES INCURRED IN ENFORCING
RIGHTS.

5.1    The Corporation shall indemnify the
Indemnitee against, and if requested by Indemnitee, the Corporation
shall, within ten business days of such request, advance to Indemnitee,
all Expenses as are incurred by Indemnitee in connection with any claim
asserted against or action brought by Indemnitee
for:

(a)    Indemnification of Expenses or an Expense
Advance by the Corporation under this Agreement or any other agreement
or under applicable law or the Corporation’s articles of
incorporation or bylaws now or hereafter in effect relating to
indemnification for Indemnifiable Events,
or

(b)    Recovery under directors’ and
officers’ liability insurance policies maintained by the
Corporation for amounts paid in settlement if the Independent Counsel
has approved the settlement.

5.2    The Corporation shall not
settle any Proceeding in any manner that would impose any penalty or
limitation on Indemnitee without Indemnitee’s written consent.
Neither the Corporation nor Indemnitee will unreasonably withhold its
consent to any proposed settlement. The Corporation shall not be liable
to indemnify the Indemnitee under this Agreement with regard to any
judicial award if the Corporation was not given a reasonable and timely
opportunity, at its expense, to participate in the defense of such
action; however, the Corporation’s liability under this
Agreement shall not be excused if its participation in the Proceeding
was barred by this Agreement.

6.    ESTABLISHMENT OF
TRUST.

In the event of a Change in Control or a Potential Change
in Control, the Corporation shall, upon written request by Indemnitee,
create a trust for the benefit of the Indemnitee (‘‘the
Trust’’) and from time to time, upon written request of
Indemnitee, shall fund the Trust in an amount sufficient to satisfy any
and all Expenses reasonably anticipated at the time of each such
request to be incurred in connection with investigating, preparing for,
participating in, and/or defending any Proceeding relating to an
Indemnifiable Event. The amount or amounts to be deposited in the Trust
under the foregoing funding obligation shall be determined by the
Reviewing Party. The terms of the Trust shall provide that on a Change
in Control, (i) the Trust shall not be revoked or the principal invaded
without the written consent of the Indemnitee, (ii) the Trustee shall
advance, within ten business days of a request by the Indemnitee, all
Expenses to the Indemnitee (provided that the Indemnitee hereby agrees
to reimburse the Trust under the same circumstances for which the
Indemnitee would be required to reimburse the Corporation under Section
2.3 above), (iii) the Trust shall continue to be funded by the
Corporation in accordance with the funding obligation set forth in this
Section 6, (iv) the Trustee shall promptly pay to the Indemnitee all
amounts for which the Indemnitee shall be entitled to indemnification
under this Agreement or otherwise, and (v) all unexpended funds in the
Trust shall revert to the Corporation on a final determination by the
Reviewing Party or a court of competent jurisdiction, as the case may
be, that the Indemnitee has been fully indemnified under the terms of
this Agreement. The Trustee shall be chosen by the Indemnitee. Nothing
in this Section 6 shall relieve the Corporation of any of its
obligations under this Agreement. All income earned on the assets held
in the Trust shall be reported as income by the Corporation for
federal, state, local, and foreign tax purposes. The Corporation shall
pay all costs of establishing and maintaining the Trust, and shall
indemnify the Trustee against any and all expenses (including
attorneys’ fees), claims, liabilities, loss, and damages arising
out of or relating to this Agreement or the establishment and
maintenance of the Trust.

7.    NONEXCLUSIVITY.

The
rights of Indemnitee under this Agreement shall be in addition to any
other rights Indemnitee may have under the Corporation’s
articles of incorporation, bylaws, applicable law, or 

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otherwise. To the extent that a change in
applicable law (whether by statute or judicial decision) permits
greater indemnification by agreement than would be afforded currently
under the Corporation’s articles of incorporation, bylaws,
applicable law, or this Agreement, it is the intent of the parties that
Indemnitee enjoy by this Agreement the greater benefits afforded by
such change.

8.    LIABILITY INSURANCE.

To the extent
the Corporation maintains an insurance policy or policies providing
directors’ and officers’ liability insurance, Indemnitee
shall be covered by such policy or policies, in accordance with its or
their terms, to the maximum extent of the coverage available for any
corporation director or officer.

9.    PERIOD OF
LIMITATIONS.

No legal action shall be brought and no cause of
action shall be asserted by or on behalf of the Corporation or any
affiliate of the Corporation against Indemnitee, Indemnitee’s
spouse, heirs, executors, or personal or legal representatives after
the expiration of two years from the date of accrual of such cause of
action, or such longer period as may be required by state law under the
circumstances. Any claim or cause of action of the Corporation or its
affiliate shall be extinguished and deemed released unless asserted by
the timely filing of a legal action within such period; provided,
however, that if any shorter period of limitations is otherwise
applicable to any such cause of action, the shorter period shall
govern.

10.    AMENDMENT OF THIS AGREEMENT.

No
supplement, modification, or amendment of this Agreement shall be
binding unless executed in writing by both of the parties to this
Agreement. No waiver of any of the provisions of this Agreement shall
operate as a waiver of any other provisions (whether or not similar),
nor shall such waiver constitute a continuing waiver. Except as
specifically provided in this Agreement, no failure to exercise or any
delay in exercising any right or remedy shall constitute a
waiver.

11.    SUBROGATION.

In the event of payment
under this Agreement, the Corporation shall be subrogated to the extent
of such payment to all of the rights of recovery of Indemnitee, who
shall execute all papers required and shall do everything that may be
necessary to secure such rights, including the execution of such
documents necessary to enable the Corporation effectively to bring suit
to enforce such rights.

12.    NO DUPLICATION OF
PAYMENTS.

The Corporation shall not be liable under this
Agreement to make any payment in connection with any claim made against
Indemnitee to the extent Indemnitee has otherwise received payment
(under any insurance policy, bylaw, or otherwise) of the amounts
otherwise indemnifiable under this Agreement.

13.    BINDING
EFFECT.

This Agreement shall be binding upon and inure to the
benefit of and be enforceable by the parties hereto and their
respective successors (including any direct or indirect successor by
purchase, merger, consolidation, or otherwise to all or substantially
all of the business and/or assets of the Corporation), assigns,
spouses, heirs, and personal and legal representatives. The Corporation
shall require and cause any successor (whether direct or indirect, by
purchase, merger, consolidation, or otherwise) to all, substantially
all, or a substantial part, of the business or assets of the
Corporation or both, by written agreement in form and substance
satisfactory to Indemnitee, expressly to assume and agree to perform
this Agreement in the same manner and to the same extent that the
Corporation would be required to perform if no such succession had
taken place. The indemnification provided 

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under this Agreement shall continue as to
Indemnitee for any action taken or not taken while serving in an
indemnified capacity pertaining to an Indemnifiable Event even though
Indemnitee may have ceased to serve in such capacity at the time of any
proceeding.

14.    SEVERABILITY.

If any portion of this
Agreement shall be held by a court of competent jurisdiction to be
invalid, void, or otherwise unenforceable, the remaining provisions
shall remain enforceable to the fullest extent permitted by law.
Furthermore, to the fullest extent possible, the provisions of this
Agreement (including, without limitation, each portion of this
Agreement containing any provision held to be invalid, void, or
otherwise unenforceable, that is not itself invalid, void, or
unenforceable) shall be construed so as to give effect to the intent
manifested by the provision held invalid, void, or
unenforceable.

15.    GOVERNING LAW.

This Agreement
shall be governed by and construed and enforced in accordance with the
laws of the State of Delaware applicable to contracts made and to be
performed in this state without giving effect to the principles of
conflicts of laws.

16.    NOTICES.

All notices,
demands, and other communications required or permitted under this
Agreement shall be made in writing and shall be deemed to have been
duly given if delivered by hand, against receipt, or mailed, postage
prepaid, certified or registered mail, return receipt requested, and
addressed to the Corporation at:

BioMimetic Therapeutics,
Inc.
389A Nichol Mill Lane
Franklin, TN 37067
Attn:
President

and to Indemnitee
at:

Notice of change of address shall be effective
only when given in accordance with this agreement. All notices
complying with this paragraph shall be deemed to have been received on
the date of delivery or on the third business day after
mailing.

IN WITNESS WHEREOF, the parties hereto have duly
executed and delivered this Agreement as of the day specified
above.

							
	BioMimetic
Therapeutics,
Inc.			 
	By:			 			 
	 			Samuel
E. Lynch
President & CEO			Title:
	

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