Document:

Exhibit 10.1

 

BIOHORIZONS, INC.

(formerly known as
HEALTHPOINTCAPITAL DENTAL HOLDINGS, INC.)

 

2007 EXECUTIVE, DIRECTOR AND CONSULTANT STOCK PLAN

 

1.                                       DEFINITIONS.

 

Unless otherwise
specified or unless the context otherwise requires, the following terms, as used
in this HealthpointCapital Dental Holdings, Inc. 2007 Executive, Director and Consultant
Stock Plan, have the following meanings:

 

Administrator means the Board of Directors, unless it
has delegated power to act on its behalf to the Committee, in which case the
Administrator means the Committee.

 

Affiliate means a corporation which, for purposes
of Section 424 of the Code, is a parent or subsidiary of the Company,
direct or indirect.

 

Agreement means an agreement between the Company
and a Participant delivered pursuant to the Plan, in such form as the
Administrator shall approve.

 

Board of Directors means the Board of Directors of the
Company.

 

Change of Control means the occurrence of any of the
following events:

 

(i)                                     Ownership.  Any “Person” (as such term is used in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as
amended) becomes the “Beneficial Owner” (as defined in Rule 13d-3 under
said Act), directly or indirectly, of securities of the Company representing
50% or more of the total voting power represented by the Company’s then
outstanding voting securities (excluding for this purpose any such voting
securities held by the Company or its Affiliates or by any employee benefit
plan of the Company) pursuant to a transaction or a series of related
transactions which the Board of Directors does not approve; or

 

(ii)                                  Merger/Sale of
Assets.  (A) A merger or
consolidation of the Company whether or not approved by the Board of Directors,
other than a merger or consolidation which would result in the voting
securities of the Company outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity or the parent of such corporation) at least
50% of the total voting power represented by the voting securities of the
Company or such surviving entity or parent of such corporation, as the
case may be, outstanding immediately after such merger or consolidation; or (B) the

 

 

stockholders
of the Company approve an agreement for the sale or disposition by the Company
of all or substantially all of the Company’s assets.

 

Code means the United States Internal Revenue
Code of 1986, as amended.

 

Committee means the committee of the Board of
Directors to which the Board of Directors has delegated power to act under or
pursuant to the provisions of the Plan.

 

Common Stock means shares of the Company’s common
stock, $0.0001 par value per share.

 

Company means BioHorizons, Inc., a
Delaware corporation.

 

Disability or Disabled means permanent and
total disability as defined in Section 22(e)(3) of the Code.

 

Employee means any employee of the Company or of
an Affiliate (including, without limitation, an employee who is also serving as
an officer or director of the Company or of an Affiliate), designated by the
Administrator to be eligible to be granted one or more Stock Rights under the
Plan.

 

Fair Market Value of a Share of Common Stock means:

 

(1)                                  If the Common Stock is listed on a
national securities exchange or traded in the over-the-counter market and sales
prices are regularly reported for the Common Stock, the closing or last price
of the Common Stock on the composite tape or other comparable reporting system
for the trading day on the applicable date and if such applicable date is not a
trading day, the last market trading day prior to such date;

 

(2)                                  If the Common Stock is not traded on a
national securities exchange but is traded on the over-the-counter market, if
sales prices are not regularly reported for the Common Stock for the trading
day referred to in clause (1), and if bid and asked prices for the Common
Stock are regularly reported, the mean between the bid and the asked price for
the Common Stock at the close of trading in the over-the-counter market for the
trading day on which Common Stock was traded on the applicable date and if such
applicable date is not a trading day, the last market trading day prior to such
date; and

 

(3)                                  If the Common Stock is neither listed on
a national securities exchange nor traded in the over-the-counter market, such
value as the Administrator, in good faith, shall determine.

 

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ISO means an option meant to qualify as an
incentive stock option under Section 422 of the Code.

 

Non-Qualified
Option means an
option which is not intended to qualify as an ISO.

 

Option means an ISO or Non-Qualified Option
granted under the Plan.

 

Participant means an Employee, director or
consultant of the Company or an Affiliate to whom one or more Stock Rights are
granted under the Plan.  As used herein, “Participant”
shall include “Participant’s Survivors” where the context requires.

 

Plan means this HealthpointCapital Dental
Holdings, Inc. 2007
Executive, Director and Consultant Stock Plan.

 

Shares means shares of the Common Stock as to
which Stock Rights have been or may be granted under the Plan or any shares of
capital stock into which the Shares are changed or for which they are exchanged
within the provisions of Paragraph 3 of the Plan.  The Shares issued under the Plan may be
authorized and unissued shares, or shares held by the Company in its treasury,
or both.

 

Stock-Based Award means a grant by the Company under the
Plan of an equity award or an equity based award which is not an Option or a
Stock Grant.

 

Stock Grant means a grant by the Company of Shares
under the Plan.

 

Stock Right means a right to Shares or the value of
Shares of the Company granted pursuant to the Plan — an ISO, a Non-Qualified
Option, a Stock Grant or a Stock-Based Award.

 

Survivor means a deceased Participant’s legal
representatives and/or any person or persons who acquired the Participant’s
rights to a Stock Right by will or by the laws of descent and distribution.

 

2.                                       PURPOSES OF THE PLAN.

 

The Plan is
intended to encourage ownership of Shares by Employees and directors of and
certain consultants to the Company and its Affiliates in order to attract and
retain such people, to induce them to work for the benefit of the Company or of
an Affiliate and to provide additional incentive for them to promote the
success of the Company or of an Affiliate. 
The Plan provides for the granting of ISOs, Non-Qualified Options, Stock
Grants and Stock-Based Awards.

 

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3.                                       SHARES SUBJECT TO THE PLAN.

 

(a)                                  The number of Shares which may be issued
from time to time pursuant to this Plan shall be 1,435,139, or the equivalent
of such number of Shares after the Administrator, in its sole discretion, has
interpreted the effect of any stock split, stock dividend, combination,
recapitalization or similar transaction in accordance with Paragraph 24 of the
Plan.

 

(b)                                 If an Option ceases to be “outstanding”,
in whole or in part (other than by exercise), or if the Company shall reacquire
(at not more than its original issuance price) any Shares issued pursuant to a
Stock Grant or Stock-Based Award, or if any Stock Right expires or is
forfeited, cancelled, or otherwise terminated or results in any Shares not
being issued, the unissued Shares which were subject to such Stock Right shall
again be available for issuance from time to time pursuant to this Plan.  Notwithstanding the foregoing, if a Stock
Right is exercised, in whole or in part, by tender of Shares or if the Company’s
tax withholding obligation is satisfied by withholding Shares, the number of
Shares deemed to have been issued under the Plan for purposes of the limitation
set forth in Paragraph 3(a) above shall be the number of Shares that were
subject to the Stock Right or portion thereof, and not the net number of Shares
actually issued.

 

4.                                       ADMINISTRATION OF THE PLAN.

 

The Administrator
of the Plan will be the Board of Directors, except to the extent the Board of
Directors delegates its authority to the Committee, in which case the Committee
shall be the Administrator.  Subject to
the provisions of the Plan, the Administrator is authorized to:

 

a.                                       Interpret the provisions of the Plan and
all Stock Rights and to make all rules and determinations which it deems
necessary or advisable for the administration of the Plan;

 

b.                                      Determine which Employees, directors and
consultants shall be granted Stock Rights;

 

c.                                       Determine the number of Shares for which
a Stock Right or Stock Rights shall be granted;

 

d.                                      Specify the terms and conditions upon
which a Stock Right or Stock Rights may be granted;

 

e.                                       Make changes to any outstanding Stock
Right, including, without limitation, to reduce or increase the exercise price
or purchase price, accelerate the vesting schedule or extend the expiration
date, provided that no such change shall impair the rights of a Participant
under any grant previously made without such Participant’s consent;

 

f.                                         Buy out for a payment in cash or Shares,
a Stock Right previously granted and/or cancel any such Stock Right and grant
in substitution therefor other Stock Rights,

 

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covering the same
or a different number of Shares and having an exercise price or purchase price
per share which may be lower or higher than the exercise price or purchase
price of the cancelled Stock Right, based on such terms and conditions as the
Administrator shall establish and the Participant shall accept; and

 

g.                                      Adopt any sub-plans applicable to
residents of any specified jurisdiction as it deems necessary or appropriate in
order to comply with or take advantage of any tax or other laws applicable to
the Company or to Plan Participants or to otherwise facilitate the
administration of the Plan, which sub-plans may include additional restrictions
or conditions applicable to Stock Rights or Shares issuable pursuant to a Stock
Right;

 

provided, however, that
all such interpretations, rules, determinations, terms and conditions shall be
made and prescribed in the context of preserving the tax status under Section 422
of the Code of those Options which are designated as ISOs.  Subject to the foregoing, the interpretation
and construction by the Administrator of any provisions of the Plan or of any
Stock Right granted under it shall be final, unless otherwise determined by the
Board of Directors, if the Administrator is the Committee.  In addition, if the Administrator is the
Committee, the Board of Directors may take any action under the Plan that would
otherwise be the responsibility of the Committee.

 

To the extent permitted
under applicable law, the Board of Directors or the Committee may allocate all
or any portion of its responsibilities and powers to any one or more of its
members and may delegate all or any portion of its responsibilities and powers
to any other person selected by it. The Board of Directors or the Committee may
revoke any such allocation or delegation at any time.

 

5.                                       ELIGIBILITY FOR PARTICIPATION.

 

The Administrator will,
in its sole discretion, name the Participants in the Plan, provided, however,
that each Participant must be an Employee, director or consultant of the
Company or of an Affiliate at the time a Stock Right is granted.  Notwithstanding the foregoing, the
Administrator may authorize the grant of a Stock Right to a person not then an Employee,
director or consultant of the Company or of an Affiliate; provided, however,
that the actual grant of such Stock Right shall be conditioned upon such person
becoming eligible to become a Participant at or prior to the time of the
execution of the Agreement evidencing such Stock Right.  ISOs may be granted only to Employees.  Non-Qualified Options, Stock Grants and
Stock-Based Awards may be granted to any Employee, director or consultant of
the Company or an Affiliate.  The
granting of any Stock Right to any individual shall neither entitle that
individual to, nor disqualify him or her from, participation in any other grant
of Stock Rights.

 

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6.                                       TERMS AND CONDITIONS OF OPTIONS.

 

Each Option shall
be set forth in writing in an Option Agreement, duly executed by the Company
and, to the extent required by law or requested by the Company, by the
Participant.  The Administrator may
provide that Options be granted subject to such terms and conditions, consistent
with the terms and conditions specifically required under this Plan, as the
Administrator may deem appropriate including, without limitation, subsequent
approval by the shareholders of the Company of this Plan or any amendments
thereto.  The Option Agreements shall be
subject to at least the following terms and conditions:

 

a.                                       Non-Qualified Options: 
Each Option intended to be a Non-Qualified Option shall be subject to
the terms and conditions which the Administrator determines to be appropriate
and in the best interest of the Company, subject to the following minimum
standards for any such Non-Qualified Option:

 

i.                                          Option Price: Each Option Agreement shall state the
option price (per share) of the Shares covered by each Option, which option
price shall be determined by the Administrator but shall not be less than the Fair Market Value per share of Common Stock.

 

ii.                                       Number of Shares: Each Option Agreement shall state the
number of Shares to which it pertains.

 

iii.                                    Option Periods: 
Each Option Agreement shall state the date or dates on which it first is
exercisable and the date after which it may no longer be exercised, and may
provide that the Option rights accrue or become exercisable in installments
over a period of months or years, or upon the occurrence of certain conditions
or the attainment of stated goals or events.

 

iv.                                   Option Conditions: 
Exercise of any Option may be conditioned upon the Participant’s
execution of a Share purchase agreement in form satisfactory to the
Administrator providing for certain protections for the Company and its other
shareholders, including requirements that:

 

A.                                   The Participant’s or the Participant’s
Survivors’ right to sell or transfer the Shares may be restricted; and

 

B.                                     The Participant or the Participant’s
Survivors may be required to execute letters of investment intent and must also
acknowledge that the Shares will bear legends noting any applicable
restrictions.

 

b.                                      ISOs:  Each Option
intended to be an ISO shall be issued only to an Employee and be subject to the
following terms and conditions, with such additional restrictions or changes as
the Administrator determines are appropriate but not in conflict with Section 422
of the Code and relevant regulations and rulings of the Internal Revenue
Service:

 

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i.                                          Minimum standards: 
The ISO shall meet the minimum standards required of Non-Qualified
Options, as described in Paragraph 6(a) above.

 

ii.                                       Option Price: 
Immediately before the ISO is granted, if the Participant owns, directly
or by reason of the applicable attribution rules in Section 424(d) of
the Code:

 

A.                                   10% or less of the total combined
voting power of all classes of stock of the Company or an Affiliate, the Option
price per share of the Shares covered by each ISO shall not be less than 100%
of the Fair Market Value per share of the Shares on the date of the grant of
the Option; or

 

B.                                     More than 10% of the total combined
voting power of all classes of stock of the Company or an Affiliate, the Option
price per share of the Shares covered by each ISO shall not be less than 110%
of the Fair Market Value on the date of grant.

 

iii.                                    Term of Option: 
For Participants who own:

 

A.                                   10% or less of the total combined
voting power of all classes of stock of the Company or an Affiliate, each ISO
shall terminate not more than ten years from the date of the grant or at such
earlier time as the Option Agreement may provide; or

 

B.                                     More than 10% of the total combined
voting power of all classes of stock of the Company or an Affiliate, each ISO
shall terminate not more than five years from the date of the grant or at such
earlier time as the Option Agreement may provide.

 

iv.                                   Limitation on Yearly Exercise: 
The Option Agreements shall restrict the amount of ISOs which may become
exercisable in any calendar year (under this or any other ISO plan of the
Company or an Affiliate) so that the aggregate Fair Market Value (determined at
the time each ISO is granted) of the stock with respect to which ISOs are
exercisable for the first time by the Participant in any calendar year does not
exceed $100,000.

 

7.                                       TERMS AND CONDITIONS OF STOCK GRANTS.

 

Each offer of a
Stock Grant to a Participant shall state the date prior to which the Stock
Grant must be accepted by the Participant, and the principal terms of each
Stock Grant shall be set forth in an Agreement, duly executed by the Company
and, to the extent required by law or requested by the Company, by the
Participant.  The Agreement shall be in a
form approved by the Administrator and shall contain terms and conditions which
the Administrator determines to

 

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be appropriate and in the
best interest of the Company, subject to the following minimum standards:

 

(a)                                  Each Agreement shall state the purchase
price (per share), if any, of the Shares covered by each Stock Grant, which
purchase price shall be determined by the Administrator but shall not be less
than the minimum consideration required by Delaware law on the date of the
grant of the Stock Grant;

 

(b)                                 Each Agreement shall state the number of
Shares to which the Stock Grant pertains; and

 

(c)                                  Each Agreement shall include the terms of
any right of the Company to restrict or reacquire the Shares subject to the
Stock Grant, including the time and events upon which such rights shall accrue
and the purchase price therefor, if any.

 

8.                                       TERMS AND CONDITIONS OF OTHER STOCK-BASED
AWARDS.

 

The Administrator
shall have the right to grant other Stock-Based Awards based upon the Common
Stock having such terms and conditions as the Administrator may determine,
including, without limitation, the grant of Shares based upon certain
conditions, the grant of securities convertible into Shares and the grant of
stock appreciation rights, phantom stock awards or stock units.  The principal terms of each Stock-Based Award
shall be set forth in an Agreement, duly executed by the Company and, to the
extent required by law or requested by the Company, by the Participant.  The Agreement shall be in a form approved by
the Administrator and shall contain terms and conditions which the
Administrator determines to be appropriate and in the best interest of the
Company.

 

9.                                       EXERCISE OF OPTIONS AND ISSUE OF SHARES.

 

An Option (or any
part or installment thereof) shall be exercised by giving written notice to the
Company or its designee, together with provision for payment of the full
purchase price in accordance with this Paragraph for the Shares as to which the
Option is being exercised, and upon compliance with any other condition(s) set
forth in the Option Agreement.  Such
notice shall be signed by the person exercising the Option, shall state the
number of Shares with respect to which the Option is being exercised and shall
contain any representation required by the Plan or the Option Agreement.  Payment of the purchase price for the Shares
as to which such Option is being exercised shall be made (a) in United
States dollars in cash or by check, or (b) at the discretion of the
Administrator, through delivery of shares of Common Stock having a Fair Market
Value equal as of the date of the exercise to the cash exercise price of the
Option and held for at least six months,
or (c) at the discretion of the Administrator, by having the Company
retain from the shares otherwise issuable upon exercise of the Option, a number
of shares having a Fair Market Value equal as of the date of exercise to the
exercise price of the Option, or (d) at the discretion of the
Administrator, by delivery of the grantee’s personal recourse note bearing
interest payable not less than annually at no less than 100% of the applicable
Federal rate, as

 

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defined in Section 1274(d) of
the Code, or (e) at the discretion of the Administrator, in accordance
with a cashless exercise program established with a securities brokerage firm,
and approved by the Administrator, or (f) at the discretion of the
Administrator, by any combination of (a), (b), (c), (d) and (e) above
or (g) at the discretion of the Administrator, payment of such other
lawful consideration as the Administrator may determine. Notwithstanding the
foregoing, the Administrator shall accept only such payment on exercise of an
ISO as is permitted by Section 422 of the Code.

 

The Company shall
then reasonably promptly deliver the Shares as to which such Option was
exercised to the Participant (or to the Participant’s Survivors, as the case
may be).  In determining what constitutes
“reasonably promptly,” it is expressly understood that the issuance and delivery
of the Shares may be delayed by the Company in order to comply with any law or
regulation (including, without limitation, state securities or “blue sky” laws)
which requires the Company to take any action with respect to the Shares prior
to their issuance.  The Shares shall,
upon delivery, be fully paid, non-assessable Shares.

 

The Administrator
shall have the right to accelerate the date of exercise of any installment of
any Option; provided that the Administrator shall not accelerate the exercise
date of any installment of any Option granted to an Employee as an ISO (and not
previously converted into a Non-Qualified Option pursuant to Paragraph 27)
without the prior approval of the Employee if such acceleration would violate
the annual vesting limitation contained in Section 422(d) of the
Code, as described in Paragraph 6(b)(iv).

 

The Administrator
may, in its discretion, amend any term or condition of an outstanding Option
provided (i) such term or condition as amended is permitted by the Plan, (ii) any
such amendment shall be made only with the consent of the Participant to whom
the Option was granted, or in the event of the death of the Participant, the
Participant’s Survivors, if the
amendment is adverse to the Participant, and (iii) any such amendment
of any Option shall be made only after the Administrator determines whether
such amendment would constitute a “modification” of any Option which is an ISO
(as that term is defined in Section 424(h) of the Code) or would
cause any adverse tax consequences for the holder of such Option including, but
not limited to, pursuant to Section 409A of the Code.

 

10.                                 ACCEPTANCE OF STOCK GRANTS AND
STOCK-BASED AWARDS AND ISSUE OF SHARES.

 

A Stock Grant or
Stock-Based Award (or any part or installment thereof) shall be accepted by
executing the applicable Agreement and delivering it to the Company or its
designee, together with provision for payment of the full purchase price, if
any, in accordance with this Paragraph for the Shares as to which such Stock
Grant or Stock-Based Award is being accepted, and upon compliance with any
other conditions set forth in the applicable Agreement.  Payment of the purchase price for the Shares
as to which such Stock Grant or Stock-Based Award is being accepted shall be
made (a) in United States dollars in cash or by check, or (b) at the
discretion of the Administrator, through delivery of shares of Common Stock held for at least six months and
having a Fair Market Value equal as of the date of acceptance of the Stock
Grant

 

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or Stock Based-Award to
the purchase price of the Stock Grant or Stock-Based Award, or (c) at the
discretion of the Administrator, by delivery of the grantee’s personal recourse
note bearing interest payable not less than annually at no less than 100% of
the applicable Federal rate, as defined in Section 1274(d) of the
Code, or (d) at the discretion of the Administrator, by any combination of
(a), (b) and (c) above; or (e) at the discretion of the
Administrator, payment of such other lawful consideration as the Administrator
may determine.

 

The Company shall
then, if required by the applicable Agreement, reasonably promptly deliver the
Shares as to which such Stock Grant or Stock-Based Award was accepted to the
Participant (or to the Participant’s Survivors, as the case may be), subject to
any escrow provision set forth in the applicable Agreement.  In determining what constitutes “reasonably
promptly,” it is expressly understood that the issuance and delivery of the
Shares may be delayed by the Company in order to comply with any law or
regulation (including, without limitation, state securities or “blue sky” laws)
which requires the Company to take any action with respect to the Shares prior
to their issuance.

 

The Administrator
may, in its discretion, amend any term or condition of an outstanding Stock
Grant, Stock-Based Award or applicable Agreement provided (i) such term or
condition as amended is permitted by the Plan, and (ii) any such amendment
shall be made only with the consent of the Participant to whom the Stock Grant
or Stock-Based Award was made, if the
amendment is adverse to the Participant.

 

11.                                 RIGHTS AS A SHAREHOLDER.

 

No Participant to
whom a Stock Right has been granted shall have rights as a shareholder with
respect to any Shares covered by such Stock Right, except after due exercise of
the Option or acceptance of the Stock Grant or as set forth in any Agreement,
and tender of the full purchase price, if any, for the Shares being purchased
pursuant to such exercise or acceptance and registration of the Shares in the
Company’s share register in the name of the Participant.

 

12.                                 ASSIGNABILITY AND TRANSFERABILITY OF
STOCK RIGHTS.

 

By its terms, a
Stock Right granted to a Participant shall not be transferable by the
Participant other than (i) by will or by the laws of descent and
distribution, or (ii) as approved by the Administrator in its discretion
and set forth in the applicable Agreement. 
Notwithstanding the foregoing, an ISO transferred except in compliance
with clause (i) above shall no longer qualify as an ISO.  The designation of a beneficiary of a Stock
Right by a Participant, with the prior approval of the Administrator and in
such form as the Administrator shall prescribe, shall not be deemed a transfer
prohibited by this Paragraph.  Except as
provided above, a Stock Right shall only be exercisable or may only be
accepted, during the Participant’s lifetime, by such Participant (or by his or
her legal 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 any Stock Right or of any rights granted thereunder

 

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contrary to the
provisions of this Plan, or the levy of any attachment or similar process upon
a Stock Right, shall be null and void.

 

13.                                 EFFECT ON OPTIONS OF TERMINATION OF
SERVICE OTHER THAN “FOR CAUSE” OR DEATH OR DISABILITY.

 

Except as
otherwise provided in a Participant’s Option Agreement, in the event of a
termination of service (whether as an employee, director or consultant) with
the Company or an Affiliate before the Participant has exercised an Option, the
following rules apply:

 

a.                                       A Participant who ceases to be an
employee, director or consultant of the Company or of an Affiliate (for any
reason other than termination “for cause”, Disability, or death for which
events there are special rules in Paragraphs 14, 15, and 16, respectively)
may exercise any Option granted to him or her to the extent that the Option is
exercisable on the date of such termination of service, but only within such
term as the Administrator has designated in a Participant’s Option Agreement.

 

b.                                      Except as provided in Subparagraph (c) below,
or Paragraph 15 or 16, in no event may an Option intended to be an ISO, be
exercised later than three months after the Participant’s termination of
employment.

 

c.                                       The provisions of this Paragraph, and not
the provisions of Paragraph 15 or 16, shall apply to a Participant who
subsequently becomes Disabled or dies after the termination of employment,
director status or consultancy; provided, however, in the case of a Participant’s
Disability or death within three months after the termination of employment,
director status or consultancy, the Participant or the Participant’s Survivors
may exercise the Option within one year after the date of the Participant’s
termination of service, but in no event after the date of expiration of the
term of the Option.

 

d.                                      Notwithstanding anything herein to the
contrary, if subsequent to a Participant’s termination of employment,
termination of director status or termination of consultancy, but prior to the
exercise of an Option, the Board of Directors determines that, either prior or
subsequent to the Participant’s termination, the Participant engaged in conduct
which would constitute “cause”, then such Participant shall forthwith cease to
have any right to exercise any Option.

 

e.                                       A Participant to whom an Option has been
granted under the Plan who is absent from the Company or an Affiliate because
of temporary disability (any disability other than a Disability as defined in
Paragraph 1 hereof), or who is on leave of absence for any purpose, shall not,
during the period of any such absence, be deemed, by virtue of such absence
alone, to have terminated such Participant’s employment, director status or
consultancy with the Company or with an Affiliate, except as the Administrator
may otherwise expressly provide.

 

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f.                                         Except as required by law or as set forth
in a Participant’s Option Agreement, Options granted under the Plan shall not
be affected by any change of a Participant’s status within or among the Company
and any Affiliates, so long as the Participant continues to be an employee,
director or consultant of the Company or any Affiliate.

 

14.                                 EFFECT ON OPTIONS OF TERMINATION OF
SERVICE “FOR CAUSE”.

 

Except as
otherwise provided in a Participant’s Option Agreement, the following rules apply
if the Participant’s service (whether as an employee, director or consultant)
with the Company or an Affiliate is terminated “for cause” prior to the time
that all his or her outstanding Options have been exercised:

 

a.                                       All outstanding and unexercised Options
as of the time the Participant is notified his or her service is terminated “for
cause” will immediately be forfeited.

 

b.                                      For purposes of this Plan, “cause” shall
include (and is not limited to) dishonesty with respect to the Company or any
Affiliate, insubordination, substantial malfeasance or non-feasance of duty,
unauthorized disclosure of confidential information, breach by the Participant
of any provision of any employment, consulting, advisory, nondisclosure, non-competition
or similar agreement between the Participant and the Company, and conduct
substantially prejudicial to the business of the Company or any Affiliate.  The determination of the Administrator as to
the existence of “cause” will be conclusive on the Participant and the Company.

 

c.                                       “Cause” is not limited to events which
have occurred prior to a Participant’s termination of service, nor is it
necessary that the Administrator’s finding of “cause” occur prior to
termination.  If the Administrator determines,
subsequent to a Participant’s termination of service but prior to the exercise
of an Option, that either prior or subsequent to the Participant’s termination
the Participant engaged in conduct which would constitute “cause”, then the
right to exercise any Option is forfeited.

 

d.                                      Any provision in an agreement between the
Participant and the Company or an Affiliate, which contains a conflicting
definition of “cause” for termination and which is in effect at the time of
such termination, shall supersede the definition in this Plan with respect to
that Participant.

 

15.                                 EFFECT ON OPTIONS OF TERMINATION OF
SERVICE FOR DISABILITY.

 

Except as
otherwise provided in a Participant’s Option Agreement:

 

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a.                                       A Participant who ceases to be an
employee, director or consultant of the Company or of an Affiliate by reason of
Disability may exercise any Option granted to such Participant:

 

(i)                                     To the extent that the Option has become
exercisable but has not been exercised on the date of Disability; and

 

(ii)                                  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.

 

b.                                      A Disabled Participant may exercise such
rights only within the period ending one year after the date of the Participant’s
Disability, notwithstanding that the Participant might have been able to
exercise the Option as to some or all of the Shares on a later date if the
Participant had not become Disabled and had continued to be an employee,
director or consultant or, if earlier, within the originally prescribed term of
the Option.

 

c.                                       The Administrator shall make the
determination both of whether Disability has occurred and the date of its
occurrence (unless a procedure for such determination is set forth in another
agreement between the Company and such Participant, in which case such
procedure shall be used for such determination).  If requested, the Participant shall be
examined by a physician selected or approved by the Administrator, the cost of
which examination shall be paid for by the Company.

 

16.                                 EFFECT ON OPTIONS OF DEATH WHILE AN
EMPLOYEE, DIRECTOR OR CONSULTANT.

 

Except as
otherwise provided in a Participant’s Option Agreement:

 

a.                                       In the event of the death of a
Participant while the Participant is an employee, director or consultant of the
Company or of an Affiliate, such Option may be exercised by the Participant’s
Survivors:

 

(i)                                     To the extent that the Option has become
exercisable but has not been exercised on the date of death; and

 

(ii)                                  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.

 

13

 

b.                                      If the Participant’s Survivors wish to
exercise the Option, they must take all necessary steps to exercise the Option
within one year after the date of death of such Participant, notwithstanding
that the decedent might have been able to exercise the Option as to some or all
of the Shares on a later date if he or she had not died and had continued to be
an employee, director or consultant or, if earlier, within the originally
prescribed term of the Option.

 

17.                                 EFFECT OF TERMINATION OF SERVICE ON
UNACCEPTED STOCK GRANTS.

 

In the event of a
termination of service (whether as an employee, director or consultant) with
the Company or an Affiliate for any reason before the Participant has accepted
a Stock Grant, such offer shall terminate.

 

For purposes of
this Paragraph 17 and Paragraph 18 below, a Participant to whom a Stock Grant
has been offered and accepted under the Plan who is absent from work with the
Company or with an Affiliate because of temporary disability (any disability
other than a Disability as defined in Paragraph 1 hereof), or who is on leave
of absence for any purpose, shall not, during the period of any such absence,
be deemed, by virtue of such absence alone, to have terminated such Participant’s
employment, director status or consultancy with the Company or with an
Affiliate, except as the Administrator may otherwise expressly provide.

 

In addition, for
purposes of this Paragraph 17 and Paragraph 18 below, any change of employment
or other service within or among the Company and any Affiliates shall not be
treated as a termination of employment, director status or consultancy so long
as the Participant continues to be an employee, director or consultant of the
Company or any Affiliate.

 

18.                                 EFFECT ON STOCK GRANTS OF TERMINATION OF
SERVICE OTHER THAN “FOR CAUSE” OR DEATH OR DISABILITY.

 

Except as
otherwise provided in a Participant’s Stock Grant Agreement, in the event of a
termination of service (whether as an employee, director or consultant), other
than termination “for cause,” Disability, or death for which events there are
special rules in Paragraphs 19, 20, and 21, respectively, before all
forfeiture provisions or Company rights of repurchase shall have lapsed, the
Company shall have the right to cancel or repurchase that number of Shares
subject to a Stock Grant as to which the Company’s forfeiture or repurchase
rights have not lapsed.

 

19.                                 EFFECT ON STOCK GRANTS OF TERMINATION OF
SERVICE “FOR CAUSE”.

 

Except as
otherwise provided in a Participant’s Stock Grant Agreement, the following rules apply
if the Participant’s service (whether as an employee, director or consultant)
with the Company or an Affiliate is terminated “for cause”:

 

14

 

a.                                       All Shares subject to any Stock Grant
that remain subject to forfeiture provisions or as to which the Company shall
have a repurchase right shall be immediately forfeited to the Company as of the
time the Participant is notified his or her service is terminated for Cause.

 

b.                                      For purposes of this Plan, “cause” shall
include (and is not limited to) dishonesty with respect to the employer,
insubordination, substantial malfeasance or non-feasance of duty, unauthorized
disclosure of confidential information, breach by the Participant of any
provision of any employment, consulting, advisory, nondisclosure,
non-competition or similar agreement between the Participant and the Company,
and conduct substantially prejudicial to the business of the Company or any
Affiliate.  The determination of the
Administrator as to the existence of “cause” will be conclusive on the
Participant and the Company.

 

c.                                       “Cause” is not limited to events which
have occurred prior to a Participant’s termination of service, nor is it
necessary that the Administrator’s finding of “cause” occur prior to
termination.  If the Administrator
determines, subsequent to a Participant’s termination of service, that either
prior or subsequent to the Participant’s termination the Participant engaged in
conduct which would constitute “cause,” then the Company’s right to repurchase
all of such Participant’s Shares shall apply.

 

d.                                      Any provision in an agreement between the
Participant and the Company or an Affiliate, which contains a conflicting
definition of “cause” for termination and which is in effect at the time of
such termination, shall supersede the definition in this Plan with respect to
that Participant.

 

20.                                 EFFECT ON STOCK GRANTS OF TERMINATION OF
SERVICE FOR DISABILITY.

 

Except as
otherwise provided in a Participant’s Stock Grant Agreement, the following rules apply
if a Participant ceases to be an employee, director or consultant of the
Company or of an Affiliate by reason of Disability:  to the extent the forfeiture provisions or
the Company’s rights of repurchase have not lapsed on the date of Disability,
they shall be exercisable; provided, however, that in the event such forfeiture
provisions or rights of repurchase lapse periodically, such provisions or
rights shall lapse to the extent of a pro rata portion of the Shares subject to
such Stock Grant through the date of Disability as would have lapsed had the
Participant not become Disabled.  The
proration shall be based upon the number of days accrued prior to the date of
Disability.

 

The Administrator
shall make the determination both of whether Disability has occurred and the
date of its occurrence (unless a procedure for such determination is set forth
in another agreement between the Company and such Participant, in which case
such procedure shall be used for such determination).  If requested, the Participant shall be
examined by a physician

 

15

 

selected or approved by
the Administrator, the cost of which examination shall be paid for by the
Company.

 

21.                                 EFFECT ON STOCK GRANTS OF DEATH WHILE AN
EMPLOYEE, DIRECTOR OR CONSULTANT.

 

Except as
otherwise provided in a Participant’s Stock Grant Agreement, the following rules apply
in the event of the death of a Participant while the Participant is an
employee, director or consultant of the Company or of an Affiliate:  to the extent the forfeiture provisions or
the Company’s rights of repurchase have not lapsed on the date of death, they
shall be exercisable; provided, however, that in the event such forfeiture
provisions or rights of repurchase lapse periodically, such provisions or
rights shall lapse to the extent of a pro rata portion of the Shares subject to
such Stock Grant through the date of death as would have lapsed had the
Participant not died.  The proration
shall be based upon the number of days accrued prior to the Participant’s
death.

 

22.                                 PURCHASE FOR INVESTMENT.

 

Unless the
offering and sale of the Shares to be issued upon the particular exercise or
acceptance of a Stock Right shall have been effectively registered under the
Securities Act of 1933, as now in force or hereafter 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(s) or
accept(s) such Stock Right shall warrant to the Company, prior to the
receipt of such Shares, 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
their Shares issued pursuant to such exercise or such grant:

 

“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.”

 

b.                                      At the discretion of the Administrator,
the Company shall have received an opinion of its counsel that the Shares may
be issued upon such particular exercise or acceptance in compliance with the
1933 Act without registration thereunder.

 

16

 

23.                                 DISSOLUTION OR LIQUIDATION OF THE COMPANY.

 

Upon the
dissolution or liquidation of the Company, all Options granted under this Plan
which as of such date shall not have been exercised and all Stock Grants and
Stock-Based Awards which have not been accepted will terminate and become null
and void; provided, however, that if the rights of a Participant or a
Participant’s Survivors have not otherwise terminated and expired, the
Participant or the Participant’s Survivors will have the right immediately
prior to such dissolution or liquidation to exercise or accept any Stock Right
to the extent that the Stock Right is exercisable or subject to acceptance as
of the date immediately prior to such dissolution or liquidation.  Upon the dissolution or liquidation of the
Company, any outstanding Stock-Based Awards shall immediately terminate unless
otherwise determined by the Administrator or specifically provided in the
applicable Agreement.

 

24.                                 ADJUSTMENTS.

 

Upon the
occurrence of any of the following events, a Participant’s rights with respect
to any Stock Right granted to him or her hereunder shall be adjusted as
hereinafter provided, unless otherwise specifically provided in a Participant’s
Agreement:

 

a.                                       Stock Dividends and Stock Splits. 
If (i) the shares of Common Stock shall be subdivided or combined
into a greater or smaller number of shares or if the Company shall issue any
shares of Common Stock as a stock dividend on its outstanding Common Stock, 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,
the number of shares of Common Stock deliverable upon the exercise of an Option
or acceptance of a Stock Grant shall be appropriately increased or decreased proportionately,
and appropriate adjustments shall be made including, in the purchase price per
share, to reflect such events.  The
number of Shares subject to the limitations in Paragraph 3(a) and 3(b) shall
also be proportionately adjusted upon the occurrence of such events.

 

b.                                      Corporate Transactions. 
If the Company is to be consolidated with or acquired by another entity
in a merger, sale of all or substantially all of the Company’s assets other
than a transaction to merely change the state of incorporation (a “Corporate
Transaction”), the Administrator or the board of directors of any entity
assuming the obligations of the Company hereunder (the “Successor Board”),
shall, as to outstanding Options, either (i) make appropriate provision
for the continuation of such Options by substituting on an equitable basis for
the Shares then subject to such Options either the consideration payable with
respect to the outstanding shares of Common Stock in connection with the
Corporate Transaction or securities of any successor or acquiring entity; or (ii) upon
written notice to the Participants, provide that all Options must be exercised
(either (A) to the extent then exercisable or, (B) at the discretion
of the Administrator, all Options being made fully exercisable for purposes of
this Subparagraph), within a specified number of days of the date of such
notice, at the end of which period the Options shall terminate; or (iii) terminate
all Options in exchange for a cash payment equal to the

 

17

 

excess of the Fair Market
Value of the Shares subject to such Options (either (A) to the extent then
exercisable or, (B) at the discretion of the Administrator, all Options
being made fully exercisable for purposes of this Subparagraph) over the
exercise price thereof.

 

Notwithstanding the foregoing, in the event the Corporate Transaction
also constitutes a Change of Control, then all Options outstanding on the date
of the Corporate Transaction will thereupon become immediately and fully
vested.

 

With respect to
outstanding Stock Grants, the Administrator or the Successor Board, shall
either (i) make appropriate provisions for the continuation of such Stock
Grants on the same terms and conditions by substituting on an equitable basis
for the Shares then subject to such Stock Grants either the consideration
payable with respect to the outstanding Shares of Common Stock in connection
with the Corporate Transaction or securities of any successor or acquiring
entity; or (ii) terminate all Stock Grants in exchange for a cash payment
equal to the excess of the Fair Market Value of the Shares subject to such
Stock Grants over the purchase price thereof, if any.  In addition, in the event of a Corporate
Transaction, the Administrator may waive any or all Company forfeiture or
repurchase rights with respect to outstanding Stock Grants.

 

c.                                       Recapitalization or Reorganization. 
In the event of a recapitalization or reorganization of the Company
other than a Corporate Transaction pursuant to which securities of the Company
or of another corporation are issued with respect to the outstanding shares of
Common Stock, a Participant upon exercising an Option or accepting a Stock
Grant after the recapitalization or reorganization shall be entitled to receive
for the purchase price paid upon such exercise or acceptance of the number of
replacement securities which would have been received if such Option had been
exercised or Stock Grant accepted prior to such recapitalization or
reorganization.

 

d.                                      Adjustments to Stock-Based Awards. 
Upon the happening of any of the events described in Subparagraphs a, b
or c above, any outstanding Stock-Based Award shall be appropriately adjusted
to reflect the events described in such Subparagraphs.  The Administrator or the Successor Board
shall determine the specific adjustments to be made under this Paragraph 24,
including, but not limited to the effect if any, of a Change of Control and,
subject to Paragraph 4, its determination shall be conclusive.

 

e.                                       Modification of ISOs. 
Notwithstanding the foregoing, any adjustments made pursuant to
Subparagraph a, b or c above with respect to ISOs shall be made only after the
Administrator determines whether such adjustments would constitute a “modification”
of such ISOs (as that term is defined in Section 424(h) of the Code)
or would cause any adverse tax consequences for the holders of such ISOs.  If the Administrator determines that such
adjustments made with respect to ISOs would constitute a modification of such
ISOs, it may refrain from making such adjustments, unless the holder of an ISO
specifically agrees in writing that such adjustment be made and such writing
indicates that the holder has full knowledge of the consequences of such “modification”
on his or her income tax treatment with respect to the ISO.  This paragraph shall not apply to the
acceleration of the vesting of any ISO that would cause any portion of the ISO
to violate the annual vesting limitation contained in Section 422(d) of
the Code, as described in Paragraph 6b(iv).

 

18

 

25.                                 ISSUANCES OF SECURITIES.

 

Except as
expressly provided herein, no issuance by the Company of shares of stock of any
class, or securities convertible into shares of stock of any class, shall
affect, and no adjustment by reason thereof shall be made with respect to, the
number or price of shares subject to Stock Rights.  Except as expressly provided herein, no
adjustments shall be made for dividends paid in cash or in property (including
without limitation, securities) of the Company prior to any issuance of Shares
pursuant to a Stock Right.

 

26.                                 FRACTIONAL SHARES.

 

No fractional
shares shall be issued under the Plan and the person exercising a Stock Right
shall receive from the Company cash in lieu of such fractional shares equal to
the Fair Market Value thereof.

 

27.                                 CONVERSION OF ISOs INTO NON-QUALIFIED
OPTIONS; TERMINATION OF ISOs.

 

The Administrator,
at the written request of any Participant, may in its discretion take such
actions as may be necessary to convert such Participant’s ISOs (or any portions
thereof) that have not been exercised on the date of conversion into
Non-Qualified Options at any time prior to the expiration of such ISOs,
regardless of whether the Participant is an employee of the Company or an
Affiliate at the time of such conversion. 
At the time of such conversion, the Administrator (with the consent of
the Participant) may impose such conditions on the exercise of the resulting
Non-Qualified Options as the Administrator in its discretion may determine,
provided that such conditions shall not be inconsistent with this Plan.  Nothing in the Plan shall be deemed to give
any Participant the right to have such Participant’s ISOs converted into
Non-Qualified Options, and no such conversion shall occur until and unless the
Administrator takes appropriate action. 
The Administrator, with the consent of the Participant, may also
terminate any portion of any ISO that has not been exercised at the time of
such conversion.

 

19

 

28.                                 WITHHOLDING.

 

In the event that
any federal, state, or local income taxes, employment taxes, Federal Insurance
Contributions Act (“F.I.C.A.”) withholdings or other amounts are required by
applicable law or governmental regulation to be withheld from the Participant’s
salary, wages or other remuneration in connection with the exercise or
acceptance of a Stock Right or in connection with a Disqualifying Disposition
(as defined in Paragraph 29) or upon the lapsing of any forfeiture provision or
right of repurchase or for any other reason required by law, the Company may
withhold from the Participant’s compensation, if any, or may require that the
Participant advance in cash to the Company, or to any Affiliate of the Company
which employs or employed the Participant, the statutory minimum amount of such
withholdings unless a different withholding arrangement, including the use of
shares of the Company’s Common Stock or a promissory note, is authorized by the
Administrator (and permitted by law). 
For purposes hereof, the fair market value of the shares withheld for
purposes of payroll withholding shall be determined in the manner provided in
Paragraph 1 above, as of the most recent practicable date prior to the date of
exercise.  If the fair market value of
the shares withheld is less than the amount of payroll withholdings required,
the Participant may be required to advance the difference in cash to the
Company or the Affiliate employer.  The
Administrator in its discretion may condition the exercise of an Option for
less than the then Fair Market Value on the Participant’s payment of such
additional withholding.

 

29.                                 NOTICE TO COMPANY OF DISQUALIFYING
DISPOSITION.

 

Each Employee who
receives an ISO must agree to notify the Company in writing immediately after
the Employee makes a Disqualifying Disposition of any shares acquired pursuant
to the exercise of an ISO.  A
Disqualifying Disposition is defined in Section 424(c) of the Code
and includes any disposition (including any sale or gift) of such shares before
the later of (a) two years after the date the Employee was granted the
ISO, or (b) one year after the date the Employee acquired Shares by
exercising the ISO, except as otherwise provided in Section 424(c) of
the Code.  If the Employee has died
before such stock is sold, these holding period requirements do not apply and
no Disqualifying Disposition can occur thereafter.

 

30.                                 TERMINATION OF THE PLAN.

 

The Plan will
terminate on April 16, 2017, the date which is ten years from the earlier
of the date of its adoption by the Board of Directors and the date of its
approval by the shareholders of the Company. 
The Plan may be terminated at an earlier date by vote of the
shareholders or the Board of Directors of the Company; provided, however, that
any such earlier termination shall not affect any Agreements executed prior to
the effective date of such termination.

 

20

 

31.                                 AMENDMENT OF THE PLAN AND AGREEMENTS.

 

The Plan may be
amended by the shareholders of the Company. 
The Plan may also be amended by the Administrator, including, without
limitation, to the extent necessary to qualify any or all outstanding Stock
Rights granted under the Plan or Stock Rights to be granted under the Plan for
favorable federal income tax treatment (including deferral of taxation upon
exercise) as may be afforded incentive stock options under Section 422 of
the Code, and to the extent necessary to qualify the shares issuable upon
exercise or acceptance of any outstanding Stock Rights granted, or Stock Rights
to be granted, under the Plan for listing on any national securities exchange
or quotation in any national automated quotation system of securities dealers.  Any amendment approved by the Administrator
which the Administrator determines is of a scope that requires shareholder
approval shall be subject to obtaining such shareholder approval.  Any modification or amendment of the Plan
shall not, without the consent of a Participant, adversely affect his or her rights under a Stock Right previously
granted to him or her.  With the consent
of the Participant affected, the Administrator may amend outstanding Agreements
in a manner which may be adverse to the Participant but which is not inconsistent
with the Plan.  In the discretion of the
Administrator, outstanding Agreements may be amended by the Administrator in a
manner which is not adverse to the Participant.

 

32.                                 EMPLOYMENT OR OTHER RELATIONSHIP.

 

Nothing in this
Plan or any Agreement shall be deemed to prevent the Company or an Affiliate
from terminating the employment, consultancy or director status of a
Participant, nor to prevent a Participant from terminating his or her own
employment, consultancy or director status or to give any Participant a right
to be retained in employment or other service by the Company or any Affiliate
for any period of time.

 

33.                                 GOVERNING LAW.

 

This Plan shall be
construed and enforced in accordance with the law of the State of Delaware.

 

21Exhibit
10.2

 

BIOHORIZONS, INC.

 

2010 EXECUTIVE, DIRECTOR AND CONSULTANT STOCK PLAN

 

1.                                       DEFINITIONS.

 

Unless
otherwise specified or unless the context otherwise requires, the following
terms, as used in this BioHorizons, Inc. 2010 Executive, Director and Consultant
Stock Plan, have the following meanings:

 

Administrator means the Board of Directors, unless it has
delegated power to act on its behalf to the Committee, in which case the
Administrator means the Committee.

 

Affiliate means a corporation which, for purposes of Section 424
of the Code, is a parent or subsidiary of the Company, direct or indirect.

 

Agreement means an agreement between the Company and a
Participant delivered pursuant to the Plan, in such form as the Administrator
shall approve.

 

Board of Directors means the Board of
Directors of the Company.

 

Change of Control means the occurrence of any of the following
events:

 

(1)                                  Ownership.  Any “Person” (as such term is used in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended)
becomes the “Beneficial Owner” (as defined in Rule 13d-3 under said Act),
directly or indirectly, of securities of the Company representing 50% or more
of the total voting power represented by the Company’s then outstanding voting
securities (excluding for this purpose any such voting securities held by the
Company or its Affiliates or by any employee benefit plan of the Company)
pursuant to a transaction or a series of related transactions which the Board
of Directors does not approve; or

 

(ii)                                  Merger/Sale of Assets.  (A) A merger or consolidation of the
Company whether or not approved by the Board of Directors, other than a merger
or consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity or the parent of such corporation) at least 50% of the total
voting power represented by the voting securities of the Company or such surviving
entity or parent of such corporation, as the case may be, outstanding
immediately after such merger or consolidation; or (B) the stockholders of
the Company approve an agreement for the sale or disposition by the Company of
all or substantially all of the Company’s assets.

 

Code means the United States Internal Revenue Code of
1986, as amended.

 

 

Committee means the committee of the Board of Directors to
which the Board of Directors has delegated power to act under or pursuant to
the provisions of the Plan.

 

Common Stock means shares of the Company’s Class C Common
Stock, $0.0001 par value per share.

 

Company means BioHorizons, Inc., a Delaware
corporation.

 

Disability or Disabled means permanent and total
disability as defined in Section 22(e)(3) of the Code.

 

Employee means any employee of the Company or of an
Affiliate (including, without limitation, an employee who is also serving as an
officer or director of the Company or of an Affiliate), designated by the
Administrator to be eligible to be granted one or more Stock Rights under the
Plan.

 

Fair Market Value of a Share of Common Stock means:

 

(1)                                  If the Common
Stock is listed on a national securities exchange or traded in the
over-the-counter market and sales prices are regularly reported for the Common
Stock, the closing or, if not applicable, the last price of the Common Stock on
the composite tape or other comparable reporting system for the trading day on
the applicable date and if such applicable date is not a trading day, the last
market trading day prior to such date;

 

(2)                                  If the Common
Stock is not traded on a national securities exchange but is traded on the
over-the-counter market, if sales prices are not regularly reported for the
Common Stock for the trading day referred to in clause (1), and if bid and
asked prices for the Common Stock are regularly reported, the mean between the
bid and the asked price for the Common Stock at the close of trading in the
over-the-counter market for the trading day on which Common Stock was traded on
the applicable date and if such applicable date is not a trading day, the last
market trading day prior to such date; and

 

(3)                                  If the Common
Stock is neither listed on a national securities exchange nor traded in the
over-the-counter market, such value as the Administrator, in good faith, shall
determine.

 

ISO means an option meant to qualify as an incentive
stock option under Section 422 of the Code.

 

Non-Qualified Option means an option which is
not intended to qualify as an ISO.

 

Option means an ISO or Non-Qualified Option granted under
the Plan.

 

Participant means an Employee, director or consultant of the
Company or an Affiliate to whom one or more Stock Rights are granted under the
Plan. As used 

 

2

 

herein,
“Participant” shall include “Participant’s Survivors” where the context
requires.

 

Plan means this BioHorizons, Inc. 2010 Executive,
Director and Consultant Stock Plan.

 

Shares means shares of the Common Stock as to which Stock
Rights have been or may be granted under the Plan or any shares of capital
stock into which the Shares are changed or for which they are exchanged within
the provisions of Paragraph 3 of the Plan. The Shares issued under the Plan may
be authorized and unissued shares, or shares held by the Company in its
treasury, or both.

 

Stock-Based Award means a grant by the Company under the Plan
of an equity award or an equity based award which is not an Option or a Stock
Grant.

 

Stock Grant means a grant by the Company of Shares under the
Plan.

 

Stock Right means a right to Shares or the value of Shares of
the Company granted pursuant to the Plan — an ISO, a Non-Qualified Option, a
Stock Grant or a Stock-Based Award.

 

Survivor means a deceased Participant’s legal
representatives and/or any person or persons who acquired the Participant’s
rights to a Stock Right by will or by the laws of descent and distribution.

 

2.                                       PURPOSES OF THE
PLAN.

 

The
Plan is intended to encourage ownership of Shares by Employees and directors of
and certain consultants to the Company and its Affiliates in order to attract
and retain such people, to induce them to work for the benefit of the Company
or of an Affiliate and to provide additional incentive for them to promote the
success of the Company or of an Affiliate. The Plan provides for the granting
of ISOs, Non-Qualified Options, Stock Grants and Stock-Based Awards.

 

3.                                       SHARES SUBJECT
TO THE PLAN.

 

(a)                                  The number of
Shares which may be issued from time to time pursuant to this Plan shall be
217,578 shares of Class C Common Stock, or the equivalent of such number
of Shares after the Administrator, in its sole discretion, has interpreted the
effect of any stock split, stock dividend, combination, recapitalization or
similar transaction in accordance with Paragraph 24 of the Plan.

 

(b)                                 If an Option
ceases to be “outstanding”, in whole or in part (other than by exercise), or if
the Company shall reacquire (at not more than its original issuance price) any
Shares issued pursuant to a Stock Grant or Stock-Based Award, or if any Stock
Right expires or is forfeited, cancelled, or otherwise terminated or results in
any Shares not being issued, the unissued Shares which were subject to such
Stock Right shall again be available for issuance from time to time pursuant to
this Plan. Notwithstanding the foregoing, if a Stock Right is 

 

3

 

exercised,
in whole or in part, by tender of Shares or if the Company’s tax withholding
obligation is satisfied by withholding Shares, the number of Shares deemed to
have been issued under the Plan for purposes of the limitation set forth in
Paragraph 3(a) above shall be the number of Shares that were subject to
the Stock Right or portion thereof, and not the net number of Shares actually
issued.

 

4.                                       ADMINISTRATION
OF THE PLAN.

 

The
Administrator of the Plan will be the Board of Directors, except to the extent
the Board of Directors delegates its authority to the Committee, in which case
the Committee shall be the Administrator. Subject to the provisions of the
Plan, the Administrator is authorized to:

 

a.                                       Interpret the
provisions of the Plan and all Stock Rights and to make all rules and
determinations which it deems necessary or advisable for the administration of
the Plan;

 

b.                                      Determine which
Employees, directors and consultants shall be granted Stock Rights;

 

c.                                       Determine the
number of Shares for which a Stock Right or Stock Rights shall be granted;

 

d.                                      Specify the
terms and conditions upon which a Stock Right or Stock Rights may be granted;

 

e.                                       Make changes to
any outstanding Stock Right, including, without limitation, to reduce or
increase the exercise price or purchase price, accelerate the vesting schedule
or extend the expiration date, provided that no such change shall impair the
rights of a Participant under any grant previously made without such
Participant’s consent;

 

f.                                         Buy out for a
payment in cash or Shares, a Stock Right previously granted and/or cancel any
such Stock Right and grant in substitution therefor other Stock Rights,
covering the same or a different number of Shares and having an exercise price
or purchase price per share which may be lower or higher than the exercise
price or purchase price of the cancelled Stock Right, based on such terms and
conditions as the Administrator shall establish and the Participant shall
accept; and

 

g.                                      Adopt any
sub-plans applicable to residents of any specified jurisdiction as it deems
necessary or appropriate in order to comply with or take advantage of any tax
or other laws applicable to the Company or to Plan Participants or to otherwise
facilitate the administration of the Plan, which sub-plans may include
additional restrictions or conditions applicable to Stock Rights or Shares
issuable pursuant to a Stock Right;

 

provided,
however, that all such interpretations, rules, determinations, terms and
conditions shall be made and prescribed in the context of not causing any
adverse tax consequences under Section 409A of the Code and preserving the
tax status under Section 422 of the Code of those 

 

4

 

Options
which are designated as ISOs. Subject to the foregoing, the interpretation and
construction by the Administrator of any provisions of the Plan or of any Stock
Right granted under it shall be final, unless otherwise determined by the Board
of Directors, if the Administrator is the Committee. In addition, if the
Administrator is the Committee, the Board of Directors may take any action
under the Plan that would otherwise be the responsibility of the Committee.

 

To
the extent permitted under applicable law, the Board of Directors or the
Committee may allocate all or any portion of its responsibilities and powers to
any one or more of its members and may delegate all or any portion of its
responsibilities and powers to any other person selected by it. The Board of
Directors or the Committee may revoke any such allocation or delegation at any
time.

 

5.                                       ELIGIBILITY FOR
PARTICIPATION.

 

The
Administrator will, in its sole discretion, name the Participants in the Plan,
provided, however, that each Participant must be an Employee, director or
consultant of the Company or of an Affiliate at the time a Stock Right is
granted. Notwithstanding the foregoing, the Administrator may authorize the
grant of a Stock Right to a person not then an Employee, director or consultant
of the Company or of an Affiliate; provided, however, that the actual grant of
such Stock Right shall be conditioned upon such person becoming eligible to
become a Participant at or prior to the time of the execution of the Agreement
evidencing such Stock Right. ISOs may be granted only to Employees.
Non-Qualified Options, Stock Grants and Stock-Based Awards may be granted to
any Employee, director or consultant of the Company or an Affiliate. The granting
of any Stock Right to any individual shall neither entitle that individual to,
nor disqualify him or her from, participation in any other grant of Stock
Rights.

 

6.                                       TERMS AND
CONDITIONS OF OPTIONS.

 

Each
Option shall be set forth in writing in an Option Agreement, duly executed by
the Company and, to the extent required by law or requested by the Company, by
the Participant. The Administrator may provide that Options be granted subject
to such terms and conditions, consistent with the terms and conditions
specifically required under this Plan, as the Administrator may deem
appropriate including, without limitation, subsequent approval by the
shareholders of the Company of this Plan or any amendments thereto. The Option
Agreements shall be subject to at least the following terms and conditions:

 

a.                                       Non-Qualified
Options: Each Option intended to be a Non-Qualified Option shall be subject to
the terms and conditions which the Administrator determines to be appropriate
and in the best interest of the Company, subject to the following minimum
standards for any such Non-Qualified Option:

 

i.                                          Option Price: Each Option
Agreement shall state the option price (per share) of the Shares covered by
each Option, which option price shall be determined by the Administrator but
shall not be less than the Fair Market Value per share of Common Stock.

 

5

 

ii.                                       Number of Shares: Each Option
Agreement shall state the number of Shares to which it pertains.

 

iii.                                    Option Periods: Each Option
Agreement shall state the date or dates on which it first is exercisable and
the date after which it may no longer be exercised, and may provide that the
Option rights accrue or become exercisable in installments over a period of
months or years, or upon the occurrence of certain conditions or the attainment
of stated goals or events.

 

iv.                                   Option Conditions: Exercise of
any Option may be conditioned upon the Participant’s execution of a Share
purchase agreement in fowl satisfactory to the Administrator providing for
certain protections for the Company and its other shareholders, including
requirements that:

 

A.                                   The Participant’s
or the Participant’s Survivors’ right to sell or transfer the Shares may be
restricted; and

 

B.                                     The Participant
or the Participant’s Survivors may be required to execute letters of investment
intent and must also acknowledge that the Shares will bear legends noting any
applicable restrictions.

 

b.                                      ISOs: Each Option
intended to be an ISO shall be issued only to an Employee and be subject to the
following terms and conditions, with such additional restrictions or changes as
the Administrator determines are appropriate but not in conflict with Section 422
of the Code and relevant regulations and rulings of the Internal Revenue Service:

 

i.                                          Minimum
standards: The ISO shall meet the minimum standards required
of Non-Qualified Options, as described in Paragraph 6(a) above.

 

ii.                                       Option Price: Immediately
before the ISO is granted, if the Participant owns, directly or by reason of the
applicable attribution rules in Section 424(d) of the Code:

 

A.                                   10% or less
of the total combined voting power of all classes of stock of the Company or an
Affiliate, the Option price per share of the Shares covered by each ISO shall
not be less than 100% of the Fair Market Value per share of the Shares on the
date of the grant of the Option; or

 

B.                                     More than 10%
of the total combined voting power of all classes of stock of the Company or an
Affiliate, the Option price per share of the Shares covered by each ISO shall
not be less than 110% of the Fair Market Value on the date of grant.

 

6

 

iii.                                    Term of Option: For
Participants who own:

 

A.                                   10% or less
of the total combined voting power of all classes of stock of the Company or an
Affiliate, each ISO shall terminate not more than ten years from the date of
the grant or at such earlier time as the Option Agreement may provide; or

 

B.                                     More than 10%
of the total combined voting power of all classes of stock of the Company or an
Affiliate, each ISO shall terminate not more than five years from the date of
the grant or at such earlier time as the Option Agreement may provide.

 

iv.                                   Limitation on Yearly
Exercise: The Option Agreements shall restrict the amount of
ISOs which may become exercisable in any calendar year (under this or any other
ISO plan of the Company or an Affiliate) so that the aggregate Fair Market
Value (determined at the time each ISO is granted) of the stock with respect to
which ISOs are exercisable for the first time by the Participant in any
calendar year does not exceed $100,000.

 

7.                                       TERMS AND
CONDITIONS OF STOCK GRANTS.

 

Each
offer of a Stock Grant to a Participant shall state the date prior to which the
Stock Grant must be accepted by the Participant, and the principal terms of
each Stock Grant shall be set forth in an Agreement, duly executed by the
Company and, to the extent required by law or requested by the Company, by the
Participant. The Agreement shall be in a form approved by the Administrator and
shall contain terms and conditions which the Administrator determines to be
appropriate and in the best interest of the Company, subject to the following
minimum standards:

 

(a)                                  Each Agreement shall state
the purchase price (per share), if any, of the Shares covered by each Stock
Grant, which purchase price shall be determined by the Administrator but shall
not be less than the minimum consideration required by Delaware law on the date
of the grant of the Stock Grant;

 

(b)                                 Each Agreement shall state
the number of Shares to which the Stock Grant pertains; and

 

(c)                                  Each Agreement shall include
the terms of any right of the Company to restrict or reacquire the Shares
subject to the Stock Grant, including the time and events upon which such
rights shall accrue and the purchase price therefor, if any.

 

8.                                       TERMS AND
CONDITIONS OF OTHER STOCK-BASED AWARDS.

 

The
Administrator shall have the right to grant other Stock-Based Awards based upon
the Common Stock having such terms and conditions as the Administrator may
determine, including, without limitation, the grant of Shares based upon
certain conditions, the grant of securities convertible into Shares and the
grant of stock appreciation rights, phantom stock awards or stock units. The
principal terms of each Stock-Based Award shall be set forth in an 

 

7

 

Agreement,
duly executed by the Company and, to the extent required by law or requested by
the Company, by the Participant. The Agreement shall be in a form approved by
the Administrator and shall contain terms and conditions which the
Administrator determines to be appropriate and in the best interest of the
Company.

 

The
Company intends that the Plan and any Stock-Based Awards granted hereunder be
exempt from the application of Section 409A of the Code or meet the
requirements of paragraphs (2), (3) and (4) of subsection (a) of
Section 409A of the Code, to the extent applicable, and be operated in
accordance with Section 409A so that any compensation deferred under any
Stock-Based Award (and applicable investment earnings) shall not be included in
income under Section 409A of the Code. Any ambiguities in the Plan shall
be construed to effect the intent as described in this Paragraph 8.

 

9.                                       EXERCISE OF
OPTIONS AND ISSUE OF SHARES.

 

An
Option (or any part or installment thereof) shall be exercised by giving
written notice to the Company or its designee, together with provision for
payment of the full purchase price in accordance with this Paragraph for the
Shares as to which the Option is being exercised, and upon compliance with any
other condition(s) set forth in the Option Agreement. Such notice shall be
signed by the person exercising the Option, shall state the number of Shares
with respect to which the Option is being exercised and shall contain any
representation required by the Plan or the Option Agreement. Payment of the
purchase price for the Shares as to which such Option is being exercised shall
be made (a) in United States dollars in cash or by check, or (b) at
the discretion of the Administrator, through delivery of shares of Common Stock
having a Fair Market Value equal as of the date of the exercise to the cash
exercise price of the Option and held for at least six months (if required to
avoid negative accounting treatment), or (c) at the discretion of the
Administrator, by having the Company retain from the shares otherwise issuable
upon exercise of the Option, a number of shares having a Fair Market Value
equal as of the date of exercise to the exercise price of the Option, or (d) at
the discretion of the Administrator, by delivery of the grantee’s personal
recourse note bearing interest payable not less than annually at no less than
100% of the applicable Federal rate, as defined in Section 1274(d) of
the Code, or (e) at the discretion of the Administrator, in accordance
with a cashless exercise program established with a securities brokerage firm,
and approved by the Administrator, or (f) at the discretion of the
Administrator, by any combination of (a), (b), (c), (d) and (e) above
or (g) at the discretion of the Administrator, payment of such other
lawful consideration as the Administrator may determine. Notwithstanding the
foregoing, the Administrator shall accept only such payment on exercise of an
ISO as is permitted by Section 422 of the Code.

 

The
Company shall then reasonably promptly deliver the Shares as to which such
Option was exercised to the Participant (or to the Participant’s Survivors, as
the case may be). In determining what constitutes “reasonably promptly,” it is
expressly understood that the issuance and delivery of the Shares may be
delayed by the Company in order to comply with any law or regulation
(including, without limitation, state securities or “blue sky” laws) which
requires the Company to take any action with respect to the Shares prior to
their issuance. The Shares shall, upon delivery, be fully paid, non-assessable
Shares.

 

8

 

The
Administrator shall have the right to accelerate the date of exercise of any
installment of any Option; provided that the Administrator shall not accelerate
the exercise date of any installment of any Option granted to an Employee as an
ISO (and not previously converted into a Non-Qualified Option pursuant to
Paragraph 27) without the prior approval of the Employee if such acceleration
would violate the annual vesting limitation contained in Section 422(d) of
the Code, as described in Paragraph 6(b)(iv).

 

The
Administrator may, in its discretion, amend any term or condition of an
outstanding Option provided (i) such term or condition as amended is
permitted by the Plan, (ii) any such amendment shall be made only with the
consent of the Participant to whom the Option was granted, or in the event of
the death of the Participant, the Participant’s Survivors, if the amendment is
adverse to the Participant, and (iii) any such amendment of any Option
shall be made only after the Administrator determines whether such amendment
would constitute a “modification” of any Option which is an ISO (as that term
is defined in Section 424(h) of the Code) or would cause any adverse
tax consequences for the holder of such Option including, but not limited to,
pursuant to Section 409A of the Code.

 

10.                                 ACCEPTANCE OF STOCK GRANTS
AND STOCK-BASED AWARDS AND ISSUE OF SHARES.

 

A
Stock Grant or Stock-Based Award (or any part or installment thereof) shall be
accepted by executing the applicable Agreement and delivering it to the Company
or its designee, together with provision for payment of the full purchase
price, if any, in accordance with this Paragraph for the Shares as to which
such Stock Grant or Stock-Based Award is being accepted, and upon compliance
with any other conditions set forth in the applicable Agreement. Payment of the
purchase price for the Shares as to which such Stock Grant or Stock-Based Award
is being accepted shall be made (a) in United States dollars in cash or by
check, or (b) at the discretion of the Administrator, through delivery of
shares of Common Stock held for at least six months (if required to avoid
negative accounting treatment) and having a Fair Market Value equal as of the
date of acceptance of the Stock Grant or Stock Based-Award to the purchase
price of the Stock Grant or Stock-Based Award, or (c) at the discretion of
the Administrator, by delivery of the grantee’s personal recourse note bearing
interest payable not less than annually at no less than 100% of the applicable
Federal rate, as defined in Section 1274(d) of the Code, or (d) at
the discretion of the Administrator, by any combination of (a), (b) and (c) above;
or (e) at the discretion of the Administrator, payment of such other
lawful consideration as the Administrator may determine.

 

The
Company shall then, if required by the applicable Agreement, reasonably
promptly deliver the Shares as to which such Stock Grant or Stock-Based Award
was accepted to the Participant (or to the Participant’s Survivors, as the case
may be), subject to any escrow provision set forth in the applicable Agreement.
In determining what constitutes “reasonably promptly,” it is expressly
understood that the issuance and delivery of the Shares may be delayed by the
Company in order to comply with any law or regulation (including, without
limitation, state securities or “blue sky” laws) which requires the Company to
take any action with respect to the Shares prior to their issuance.

 

9

 

 

The
Administrator may, in its discretion, amend any term or condition of an
outstanding Stock Grant, Stock-Based Award or applicable Agreement provided (i) such
term or condition as amended is permitted by the Plan, (ii) any such
amendment shall be made only with the consent of the Participant to whom the
Stock Grant or Stock-Based Award was made, if the amendment is adverse to the
Participant, and (iii) any such amendment shall be made only after the
Administrator determines whether such amendment would cause any adverse tax
consequences to the Participant including, but not limited to, pursuant to Section 409A
of the Code.

 

11.                                 RIGHTS AS A
SHAREHOLDER.

 

No
Participant to whom a Stock Right has been granted shall have rights as a
shareholder with respect to any Shares covered by such Stock Right, except
after due exercise of the Option or acceptance of the Stock Grant or as set
forth in any Agreement, and tender of the full purchase price, if any, for the
Shares being purchased pursuant to such exercise or acceptance and registration
of the Shares in the Company’s share register in the name of the Participant.

 

12.                                 ASSIGNABILITY
AND TRANSFERABILITY OF STOCK RIGHTS.

 

By
its terms, a Stock Right granted to a Participant shall not be transferable by
the Participant other than (i) by will or by the laws of descent and
distribution, or (ii) as approved by the Administrator in its discretion
and set forth in the applicable Agreement. Notwithstanding the foregoing, an
ISO transferred except in compliance with clause (i) above shall no longer
qualify as an ISO. The designation of a beneficiary of a Stock Right by a
Participant, with the prior approval of the Administrator and in such form as
the Administrator shall prescribe, shall not be deemed a transfer prohibited by
this Paragraph. Except as provided above, a Stock Right shall only be
exercisable or may only be accepted, during the Participant’s lifetime, by such
Participant (or by his or her legal 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
any Stock Right or of any rights granted thereunder contrary to the provisions
of this Plan, or the levy of any attachment or similar process upon a Stock
Right, shall be null and void.

 

13.                                 EFFECT ON OPTIONS OF
TERMINATION OF SERVICE OTHER THAN “FOR CAUSE” OR DEATH OR DISABILITY.

 

Except
as otherwise provided in a Participant’s Option Agreement, in the event of a
termination of service (whether as an employee, director or consultant) with
the Company or an Affiliate before the Participant has exercised an Option, the
following rules apply:

 

a.                                       A Participant
who ceases to be an employee, director or consultant of the Company or of an
Affiliate (for any reason other than termination “for cause”, Disability, or
death for which events there are special rules in Paragraphs 14, 15, and
16, respectively) may exercise any Option granted to him or her to the extent
that the Option is exercisable on the date of such termination of service, but
only within such term as the Administrator has designated in a Participant’s
Option Agreement.

 

10

 

b.                                      Except as
provided in Subparagraph (c) below, or Paragraph 15 or 16, in no event may
an Option intended to be an ISO, be exercised later than three months after the
Participant’s termination of employment.

 

c.                                       The provisions
of this Paragraph, and not the provisions of Paragraph 15 or 16, shall apply to
a Participant who subsequently becomes Disabled or dies after the termination
of employment, director status or consultancy; provided, however, in the case
of a Participant’s Disability or death within three months after the
termination of employment, director status or consultancy, the Participant or
the Participant’s Survivors may exercise the Option within one year after the
date of the Participant’s termination of service, but in no event after the
date of expiration of the term of the Option.

 

d.                                      Notwithstanding
anything herein to the contrary, if subsequent to a Participant’s termination
of employment, termination of director status or termination of consultancy,
but prior to the exercise of an Option, the Board of Directors determines that,
either prior or subsequent to the Participant’s termination, the Participant
engaged in conduct which would constitute “cause”, then such Participant shall
forthwith cease to have any right to exercise any Option.

 

e.                                       A Participant
to whom an Option has been granted under the Plan who is absent from the
Company or an Affiliate because of temporary disability (any disability other
than a Disability as defined in Paragraph 1 hereof), or who is on leave of
absence for any purpose, shall not, during the period of any such absence, be
deemed, by virtue of such absence alone, to have terminated such Participant’s
employment, director status or consultancy with the Company or with an
Affiliate, except as the Administrator may otherwise expressly provide;
provided, however, that, for ISOs, any leave of absence granted by the
Administrator of greater than ninety days, unless pursuant to a contract or
statute that guarantees the right to reemployment, shall cause such ISO to
become a Non-Qualified Option on the 181st day following such leave of absence.

 

f.                                         Except as
required by law or as set forth in a Participant’s Option Agreement, Options
granted under the Plan shall not be affected by any change of a Participant’s
status within or among the Company and any Affiliates, so long as the
Participant continues to be an employee, director or consultant of the Company
or any Affiliate.

 

14.                                 EFFECT ON
OPTIONS OF TERMINATION OF SERVICE “FOR CAUSE”.

 

Except
as otherwise provided in a Participant’s Option Agreement, the following rules apply
if the Participant’s service (whether as an employee, director or consultant)
with the Company or an Affiliate is terminated “for cause” prior to the time
that all his or her outstanding Options have been exercised:

 

a.                                       All outstanding
and unexercised Options as of the time the Participant is notified his or her
service is terminated “for cause” will immediately be forfeited.

 

11

 

b.                                      For purposes of
this Plan, “cause” shall include (and is not limited to) dishonesty with
respect to the Company or any Affiliate, insubordination, substantial
malfeasance or non-feasance of duty, unauthorized disclosure of confidential
information, breach by the Participant of any provision of any employment,
consulting, advisory, nondisclosure, non-competition or similar agreement
between the Participant and the Company, and conduct substantially prejudicial
to the business of the Company or any Affiliate. The determination of the
Administrator as to the existence of “cause” will be conclusive on the
Participant and the Company.

 

c.                                       “Cause” is not
limited to events which have occurred prior to a Participant’s termination of
service, nor is it necessary that the Administrator’s finding of “cause” occur
prior to termination. If the Administrator determines, subsequent to a
Participant’s termination of service but prior to the exercise of an Option,
that either prior or subsequent to the Participant’s termination the
Participant engaged in conduct which would constitute “cause”, then the right
to exercise any Option is forfeited.

 

d.                                      Any provision
in an agreement between the Participant and the Company or an Affiliate, which
contains a conflicting definition of “cause” for termination and which is in
effect at the time of such termination, shall supersede the definition in this
Plan with respect to that Participant.

 

15.                                 EFFECT ON
OPTIONS OF TERMINATION OF SERVICE FOR DISABILITY.

 

Except
as otherwise provided in a Participant’s Option Agreement:

 

a.                                       A Participant
who ceases to be an employee, director or consultant of the Company or of an
Affiliate by reason of Disability may exercise any Option granted to such
Participant:

 

(i)                                     To the extent that the Option
has become exercisable but has not been exercised on the date of Disability;
and

 

(ii)                                  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.

 

b.                                      A Disabled
Participant may exercise such rights only within the period ending one year
after the date of the Participant’s Disability, notwithstanding that the
Participant might have been able to exercise the Option as to some or all of
the Shares on a later date if the Participant had not become Disabled and had
continued to be an employee, director or consultant or, if earlier, within the
originally prescribed term of the Option.

 

12

 

c.                                       The
Administrator shall make the determination both of whether Disability has
occurred and the date of its occurrence (unless a procedure for such
determination is set forth in another agreement between the Company and such
Participant, in which case such procedure shall be used for such
determination). If requested, the Participant shall be examined by a physician
selected or approved by the Administrator, the cost of which examination shall
be paid for by the Company.

 

16.                                 EFFECT ON OPTIONS OF DEATH
WHILE AN EMPLOYEE; DIRECTOR OR CONSULTANT.

 

Except
as otherwise provided in a Participant’s Option Agreement:

 

a.                                       In the event of
the death of a Participant while the Participant is an employee, director or
consultant of the Company or of an Affiliate, such Option may be exercised by
the Participant’s Survivors:

 

(i)                                     To the extent that the
Option has become exercisable but has not been exercised on the date of death;
and

 

(ii)                                  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.

 

b.                                      If the
Participant’s Survivors wish to exercise the Option, they must take all
necessary steps to exercise the Option within one year after the date of death
of such Participant, notwithstanding that the decedent might have been able to
exercise the Option as to some or all of the Shares on a later date if he or
she had not died and had continued to be an employee, director or consultant
or, if earlier, within the originally prescribed term of the Option.

 

17.                                 EFFECT OF
TERMINATION OF SERVICE ON UNACCEPTED STOCK GRANTS.

 

In
the event of a termination of service (whether as an employee, director or
consultant) with the Company or an Affiliate for any reason before the
Participant has accepted a Stock Grant, such offer shall terminate.

 

For
purposes of this Paragraph 17 and Paragraph 18 below, a Participant to whom a
Stock Grant has been offered and accepted under the Plan who is absent from
work with the Company or with an Affiliate because of temporary disability (any
disability other than a Disability as defined in Paragraph 1 hereof), or who is
on leave of absence for any purpose, shall not, during the period of any such
absence, be deemed, by virtue of such absence alone, to have terminated such
Participant’s employment, director status or consultancy with the Company or
with an Affiliate, except as the Administrator may otherwise expressly provide.

 

In
addition, for purposes of this Paragraph 17 and Paragraph 18 below, any change
of employment or other service within or among the Company and any Affiliates
shall not be 

 

13

 

treated
as a termination of employment, director status or consultancy so long as the
Participant continues to be an employee, director or consultant of the Company
or any Affiliate.

 

18.                                 EFFECT ON STOCK GRANTS OF
TERMINATION OF SERVICE OTHER THAN “FOR CAUSE” OR DEATH OR DISABILITY.

 

Except
as otherwise provided in a Participant’s Stock Grant Agreement, in the event of
a termination of service (whether as an employee, director or consultant),
other than termination “for cause,” Disability, or death for which events there
are special rules in Paragraphs 19, 20, and 21, respectively, before all
forfeiture provisions or Company rights of repurchase shall have lapsed, the
Company shall have the right to cancel or repurchase that number of Shares
subject to a Stock Grant as to which the Company’s forfeiture or repurchase
rights have not lapsed.

 

19.                                 EFFECT ON STOCK
GRANTS OF TERMINATION OF SERVICE “FOR CAUSE”.

 

Except
as otherwise provided in a Participant’s Stock Grant Agreement, the following rules apply
if the Participant’s service (whether as an employee, director or consultant)
with the Company or an Affiliate is terminated “for cause”:

 

a.                                       All Shares
subject to any Stock Grant that remain subject to forfeiture provisions or as
to which the Company shall have a repurchase right shall be immediately
forfeited to the Company as of the time the Participant is notified his or her
service is terminated for Cause.

 

b.                                      For purposes of
this Plan, “cause” shall include (and is not limited to) dishonesty with
respect to the employer, insubordination, substantial malfeasance or
non-feasance of duty, unauthorized disclosure of confidential information,
breach by the Participant of any provision of any employment, consulting,
advisory, nondisclosure, non-competition or similar agreement between the
Participant and the Company, and conduct substantially prejudicial to the
business of the Company or any Affiliate. The determination of the
Administrator as to the existence of “cause” will be conclusive on the
Participant and the Company.

 

c.                                       “Cause” is not
limited to events which have occurred prior to a Participant’s termination of
service, nor is it necessary that the Administrator’s finding of “cause” occur
prior to termination. If the Administrator determines, subsequent to a
Participant’s termination of service, that either prior or subsequent to the
Participant’s termination the Participant engaged in conduct which would
constitute “cause,” then the Company’s right to repurchase all of such
Participant’s Shares shall apply.

 

d.                                      Any provision
in an agreement between the Participant and the Company or an Affiliate, which
contains a conflicting definition of “cause” for termination and which is in
effect at the time of such termination, shall supersede the definition in this
Plan with respect to that Participant.

 

14

 

20.                                 EFFECT ON STOCK
GRANTS OF TERMINATION OF SERVICE FOR DISABILITY.

 

Except as otherwise provided
in a Participant’s Stock Grant Agreement, the following rules apply if a
Participant ceases to be an employee, director or consultant of the Company or
of an Affiliate by reason of Disability: to the extent the forfeiture
provisions or the Company’s rights of repurchase have not lapsed on the date of
Disability, they shall be exercisable; provided, however, that in the event
such forfeiture provisions or rights of repurchase lapse periodically, such
provisions or rights shall lapse to the extent of a pro rata portion of the
Shares subject to such Stock Grant through the date of Disability as would have
lapsed had the Participant not become Disabled. The proration shall be based
upon the number of days accrued prior to the date of Disability.

 

The
Administrator shall make the determination both of whether Disability has
occurred and the date of its occurrence (unless a procedure for such
determination is set forth in another agreement between the Company and such
Participant, in which case such procedure shall be used for such determination).
If requested, the Participant shall be examined by a physician selected or
approved by the Administrator, the cost of which examination shall be paid for
by the Company.

 

21.                                 EFFECT ON STOCK GRANTS OF
DEATH WHILE AN EMPLOYEE, DIRECTOR OR CONSULTANT.

 

Except
as otherwise provided in a Participant’s Stock Grant Agreement, the following rules apply
in the event of the death of a Participant while the Participant is an
employee, director or consultant of the Company or of an Affiliate: to the
extent the forfeiture provisions or the Company’s rights of repurchase have not
lapsed on the date of death, they shall be exercisable; provided, however, that
in the event such forfeiture provisions or rights of repurchase lapse
periodically, such provisions or rights shall lapse to the extent of a pro rata
portion of the Shares subject to such Stock Grant through the date of death as
would have lapsed had the Participant not died. The proration shall be based
upon the number of days accrued prior to the Participant’s death.

 

22.                                 PURCHASE FOR
INVESTMENT.

 

Unless
the offering and sale of the Shares to be issued upon the particular exercise
or acceptance of a Stock Right shall have been effectively registered under the
Securities Act of 1933, as now in force or hereafter 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(s) or accept(s) such Stock Right shall warrant to the
Company, prior to the receipt of such Shares, 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 

 

15

 

following
legend which shall be endorsed upon the certificate(s) evidencing their
Shares issued pursuant to such exercise or such grant:

 

“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.”

 

b.                                      At the
discretion of the Administrator, the Company shall have received an opinion of
its counsel that the Shares may be issued upon such particular exercise or
acceptance in compliance with the 1933 Act without registration thereunder.

 

23.                                 DISSOLUTION OR
LIQUIDATION OF THE COMPANY.

 

Upon
the dissolution or liquidation of the Company, all Options granted under this
Plan which as of such date shall not have been exercised and all Stock Grants
and Stock-Based Awards which have not been accepted will terminate and become
null and void; provided, however, that if the rights of a Participant or a
Participant’s Survivors have not otherwise terminated and expired, the
Participant or the Participant’s Survivors will have the right immediately
prior to such dissolution or liquidation to exercise or accept any Stock Right
to the extent that the Stock Right is exercisable or subject to acceptance as
of the date immediately prior to such dissolution or liquidation. Upon the
dissolution or liquidation of the Company, any outstanding Stock-Based Awards
shall immediately terminate unless otherwise determined by the Administrator or
specifically provided in the applicable Agreement.

 

24.                                 ADJUSTMENTS.

 

Upon
the occurrence of any of the following events, a Participant’s rights with
respect to any Stock Right granted to him or her hereunder shall be adjusted as
hereinafter provided, unless otherwise specifically provided in a Participant’s
Agreement:

 

a.                                       Stock Dividends
and Stock Splits. If (i) the shares of Common Stock shall be
subdivided or combined into a greater or smaller number of shares or if the
Company shall issue any shares of Common Stock as a stock dividend on its
outstanding Common Stock, 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, the number of shares
of Common Stock deliverable upon the exercise of an Option or acceptance of a
Stock Grant shall be appropriately increased or decreased proportionately, and
appropriate adjustments shall be made including, in the purchase price per
share, to reflect such events. The number of Shares subject to the limitations
in Paragraph 3(a) and 3(b) shall also be proportionately adjusted
upon the occurrence of such events.

 

b.                                      Corporate
Transactions. If the Company is to be consolidated with or
acquired by another entity in a merger, sale of all or substantially all of the
Company’s assets other than a 

 

16

 

transaction
to merely change the state of incorporation (a “Corporate Transaction”), the
Administrator or the board of directors of any entity assuming the obligations
of the Company hereunder (the “Successor Board”), shall, as to outstanding
Options, either (i) make appropriate provision for the continuation of
such Options by substituting on an equitable basis for the Shares then subject
to such Options either the consideration payable with respect to the
outstanding shares of Common Stock in connection with the Corporate Transaction
or securities of any successor or acquiring entity; or (ii) upon written
notice to the Participants, provide that all Options must be exercised (either (A) to
the extent then exercisable or, (B) at the discretion of the
Administrator, all Options being made fully exercisable for purposes of this
Subparagraph), within a specified number of days of the date of such notice, at
the end of which period the Options shall terminate; or (iii) terminate
all Options in exchange for a cash payment equal to the excess of the Fair
Market Value of the Shares subject to such Options (either (A) to the
extent then exercisable or, (B) at the discretion of the Administrator,
all Options being made fully exercisable for purposes of this Subparagraph)
over the exercise price thereof.

 

Notwithstanding
the foregoing, in the event the Corporate Transaction also constitutes a Change
of Control, then all Options outstanding on the date of the Corporate
Transaction will thereupon become immediately and fully vested.

 

With
respect to outstanding Stock Grants, the Administrator or the Successor Board,
shall either (i) make appropriate provisions for the continuation of such
Stock Grants on the same terms and conditions by substituting on an equitable
basis for the Shares then subject to such Stock Grants either the consideration
payable with respect to the outstanding Shares of Common Stock in connection
with the Corporate Transaction or securities of any successor or acquiring
entity; or (ii) terminate all Stock Grants in exchange for a cash payment
equal to the excess of the Fair Market Value of the Shares subject to such
Stock Grants over the purchase price thereof, if any. In addition, in the event
of a Corporate Transaction, the Administrator may waive any or all Company
forfeiture or repurchase rights with respect to outstanding Stock Grants.

 

c.                                       Recapitalization
or Reorganization.  In the
event of a recapitalization or reorganization of the Company other than a Corporate
Transaction pursuant to which securities of the Company or of another
corporation are issued with respect to the outstanding shares of Common Stock,
a Participant upon exercising an Option or accepting a Stock Grant after the
recapitalization or reorganization shall be entitled to receive for the
purchase price paid upon such exercise or acceptance of the number of
replacement securities which would have been received if such Option had been
exercised or Stock Grant accepted prior to such recapitalization or
reorganization.

 

d.                                      Adjustments to
Stock-Based Awards. Upon the happening of any of the events described
in Subparagraphs a, b or c above, any outstanding Stock-Based Award shall be
appropriately adjusted to reflect the events described in such Subparagraphs.
The Administrator or the Successor Board shall determine the specific
adjustments to be made under this Paragraph 24, including, but not limited to
the effect if any, of a Change of Control and, subject to Paragraph 4, its
determination shall be conclusive.

 

e.                                       Modification of
Options. Notwithstanding the foregoing, any adjustments made pursuant to
Subparagraph a, b or c above with respect to Options shall be made only after
the 

 

17

 

Administrator
determines whether such adjustments would constitute a “modification” of any
ISOs (as that term is defined in Section 424(h) of the Code) or would
cause any adverse tax consequences for the holders of Options, including, but
not limited to, pursuant to Section 409A of the Code. If the Administrator
determines that such adjustments made with respect to Options would constitute
a modification or other adverse tax consequence, it may refrain from making
such adjustments, unless the holder of an Option specifically agrees in writing
that such adjustment be made and such writing indicates that the holder has
full knowledge of the consequences of such “modification” on his or her income
tax treatment with respect to the Option. This paragraph shall not apply to the
acceleration of the vesting of any ISO that would cause any portion of the ISO
to violate the annual vesting limitation contained in Section 422(d) of
the Code, as described in Paragraph 6b(iv).

 

25.                                 ISSUANCES OF
SECURITIES.

 

Except
as expressly provided herein, no issuance by the Company of shares of stock of
any class, or securities convertible into shares of stock of any class, shall
affect, and no adjustment by reason thereof shall be made with respect to, the
number or price of shares subject to Stock Rights. Except as expressly provided
herein, no adjustments shall be made for dividends paid in cash or in property
(including without limitation, securities) of the Company prior to any issuance
of Shares pursuant to a Stock Right.

 

26.                                 FRACTIONAL
SHARES.

 

No
fractional shares shall be issued under the Plan and the person exercising a
Stock Right shall receive from the Company cash in lieu of such fractional
shares equal to the Fair Market Value thereof.

 

27.                                 CONVERSION OF ISOs INTO
NON-QUALIFIED OPTIONS; TERMINATION OF ISOs.

 

The
Administrator, at the written request of any Participant, may in its discretion
take such actions as may be necessary to convert such Participant’s ISOs (or
any portions thereof) that have not been exercised on the date of conversion
into Non-Qualified Options at any time prior to the expiration of such ISOs,
regardless of whether the Participant is an employee of the Company or an
Affiliate at the time of such conversion. At the time of such conversion, the
Administrator (with the consent of the Participant) may impose such conditions
on the exercise of the resulting Non-Qualified Options as the Administrator in
its discretion may determine, provided that such conditions shall not be
inconsistent with this Plan. Nothing in the Plan shall be deemed to give any
Participant the right to have such Participant’s ISOs converted into
Non-Qualified Options, and no such conversion shall occur until and unless the
Administrator takes appropriate action. The Administrator, with the consent of
the Participant, may also terminate any portion of any ISO that has not been
exercised at the time of such conversion.

 

28.                                 WITHHOLDING.

 

In
the event that any federal, state, or local income taxes, employment taxes,
Federal Insurance Contributions Act (“F.I.C.A.”) withholdings or other amounts
are required by applicable law or governmental regulation to be withheld from
the Participant’s salary, wages or 

 

18

 

other
remuneration in connection with the exercise or acceptance of a Stock Right or
in connection with a Disqualifying Disposition (as defined in Paragraph 29) or
upon the lapsing of any forfeiture provision or right of repurchase or for any
other reason required by law, the Company may withhold from the Participant’s
compensation, if any, or may require that the Participant advance in cash to
the Company, or to any Affiliate of the Company which employs or employed the
Participant, the statutory minimum amount of such withholdings unless a
different withholding arrangement, including the use of shares of the Company’s
Common Stock or a promissory note, is authorized by the Administrator (and
permitted by law). For purposes hereof, the Fair Market Value of the shares
withheld for purposes of payroll withholding shall be determined in the manner
provided in Paragraph 1 above, as of the most recent practicable date prior to
the date of exercise. If the Fair Market Value of the shares withheld is less
than the amount of payroll withholdings required, the Participant may be
required to advance the difference in cash to the Company or the Affiliate
employer. The Administrator in its discretion may condition the exercise of an
Option for less than the then Fair Market Value on the Participant’s payment of
such additional withholding.

 

29.                                 NOTICE TO
COMPANY OF DISQUALIFYING DISPOSITION.

 

Each
Employee who receives an ISO must agree to notify the Company in writing
immediately after the Employee makes a Disqualifying Disposition of any shares
acquired pursuant to the exercise of an ISO. A Disqualifying Disposition is
defined in Section 424(c) of the Code and includes any disposition
(including any sale or gift) of such shares before the later of (a) two
years after the date the Employee was granted the ISO, or (b) one year
after the date the Employee acquired Shares by exercising the ISO, except as
otherwise provided in Section 424(c) of the Code. If the Employee has
died before such stock is sold, these holding period requirements do not apply
and no Disqualifying Disposition can occur thereafter.

 

30.                                 TERMINATION OF
THE PLAN.

 

The
Plan will terminate on March 26, 2020, the date which is ten years from
the earlier of the date of its adoption by the Board of Directors and
the date of its approval by the shareholders of the Company. The Plan may be
terminated at an earlier date by vote of the shareholders or the Board of
Directors of the Company; provided, however, that any such earlier termination
shall not affect any Agreements executed prior to the effective date of such
termination.

 

31.                                 AMENDMENT OF
THE PLAN AND AGREEMENTS.

 

The
Plan may be amended by the shareholders of the Company. The Plan may also be
amended by the Administrator, including, without limitation, to the extent
necessary to qualify any or all outstanding Stock Rights granted under the Plan
or Stock Rights to be granted under the Plan for favorable federal income tax
treatment (including deferral of taxation upon exercise) as may be afforded
incentive stock options under Section 422 of the Code, and to the extent
necessary to qualify the shares issuable upon exercise or acceptance of any
outstanding Stock Rights granted, or Stock Rights to be granted, under the Plan
for listing on any national securities exchange or quotation in any national
automated quotation system of securities dealers. Any amendment approved by the
Administrator which the Administrator determines is of a scope that requires
shareholder approval shall be subject to obtaining such shareholder approval.
Any 

 

19

 

modification
or amendment of the Plan shall not, without the consent of a Participant,
adversely affect his or her rights under a Stock Right previously granted to
him or her. With the consent of the Participant affected, the Administrator may
amend outstanding Agreements in a manner which may be adverse to the
Participant but which is not inconsistent with the Plan. In the discretion of
the Administrator, outstanding Agreements may be amended by the Administrator
in a manner which is not adverse to the Participant.

 

32.                                 EMPLOYMENT OR
OTHER RELATIONSHIP.

 

Nothing
in this Plan or any Agreement shall be deemed to prevent the Company or an
Affiliate from terminating the employment, consultancy or director status of a
Participant, nor to prevent a Participant from terminating his or her own
employment, consultancy or director status or to give any Participant a right
to be retained in employment or other service by the Company or any Affiliate
for any period of time.

 

33.                                 GOVERNING LAW.

 

This
Plan shall be construed and enforced in accordance with the law of the State of
Delaware.

 

20

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