Document:

Confidentiality and Non-Disclosure Agreement

 EXHIBIT 10.4 
 CONFIDENTIALITY AND NON-DISCLOSURE AGREEMENT 
 This CONFIDENTIALITY AND NON-DISCLOSURE AGREEMENT made
as of the 3rd of July 2007 (the “Agreement”), between Orthovita Inc., a Pennsylvania corporation, with offices at 77 Great Valley Parkway, Malvern, Pennsylvania 19355 (the “Company”) and Maarten Persenaire (“Employee”).

 WHEREAS, the Company shall increase the salary and annual bonus opportunity for Employee effective July 3, 2007; and 
 NOW THEREFORE, in consideration of such salary and bonus opportunity increase, and the mutual covenants and agreements herein contained, the parties,
intending to be legally bound, hereto agree as follows: 
 1. Restrictive Covenants 
 (a) Non-Competition. During the term of Employee’s employment with the Company, which commenced April 15, 1999 (the “Term”),
and for the 9- month period beginning on the date the Employee’s employment terminates, for any reason (the “Restriction Period”), the Employee hereby agrees that he will not, without the Company’s express written consent, engage
(directly or indirectly) in any employment or business activity which designs, manufactures, sells, licenses or markets any technologies or competing products of the Company or any of its subsidiaries or affiliates, or would otherwise conflict with
the Employee’s employment by the Company. Such products and technologies include those products and technologies which the Company or any of its subsidiaries or affiliates has developed, manufactured, sold, licensed or marketed or, at the time
of termination of Employee’s employment, may be in the process of developing, manufacturing, selling, licensing or marketing. 
 (b)
Non-Solicitation and Non-Hire of Company Personnel. During the Term and for the Restriction Period, the Employee hereby agrees that he will not, either directly or through others, hire or attempt to hire, any current or former employee of the
Company, or solicit or attempt to solicit any current or former employee, consultant or independent contractor of the Company to change or terminate his, her or its relationship with the Company or otherwise to become an employee for or of any other
person or business entity, unless more than twelve months shall have elapsed between the last day of such person’s employment or service with the Company and the first date of such solicitation or hiring or attempt to solicit or hire.

 (c) Non-Solicitation of Customers. During the Term and for the Restriction Period, the Employee hereby agrees that he will not,
either directly, through others or on behalf of third parties, solicit, divert or appropriate, or attempt to solicit, divert or appropriate any customer or actively sought prospective customer of the Company for the purpose of providing such
customer or actively sought prospective customer with services or products competitive with those offered by the Company during the Term. 

 (d) Non-Disparagement. Employee agrees that Employee will not disparage the Company, its
subsidiaries and parents, and their respective officers, directors, employees, and agents, and its and their respective successors and assigns, heirs, executors, and administrators, or make any public statement reflecting negatively on the Company,
its subsidiaries and parents, and their respective officers, directors, employees, and agents, and its and their respective successors and assigns, heirs, executors, and administrators, to third parties, including any matters relating to the
operation or management of the Company, irrespective of the truthfulness or falsity of such statement. 
 (e) Proprietary
Information. At all times during the Term and at all times thereafter, the Employee will hold in strictest confidence and will not disclose, use, lecture upon or publish any of the Company’s Proprietary Information (as defined
below), except as such disclosure, use or publication may be required in connection with the Employee’s work for the Company, or unless the Company expressly authorizes such disclosure in writing or disclosure is required by law or in a
judicial or administrative proceeding, in which event the Employee shall promptly notify the Company of the required disclosure and assist the Company if it determines to resist the disclosure. “Proprietary Information” shall mean any and
all confidential and/or proprietary knowledge, data or information of the Company, its affiliated entities and partners, including but not limited to information relating to financial matters, investments, budgets, business plans, marketing plans,
personnel matters, business contacts, products, processes, know-how, designs, methods, improvements, discoveries, inventions, ideas, data, programs, and other works of authorship. 
 (f) Invention Assignment. The Employee agrees that all inventions, innovations, improvements, developments, methods, designs, analyses, reports,
and all similar or related information which relates to the Company’s actual or anticipated business, research and development or existing or future products or services and which are conceived, developed or made by Employee while employed by
the Company (“Work Product”) belong to the Company. The Employee will promptly disclose such Work Product to the Company’s Chief Executive Officer (“CEO”) or Board of Directors (“Board”) and perform all actions
reasonably requested by the CEO or the Board (whether during or after the Term) to establish and confirm such ownership (including, without limitation, assignments, consents, powers of attorneys and other instruments). 
 (g) Return of Company Property. Upon termination of the Employee’s employment with the Company for any reason whatsoever, voluntarily
or involuntarily, and at any earlier time the Company requests, the Employee will deliver to the person designated by the Company all originals and copies of all documents and property of the Company in the Employee’s possession, under the
Employee’s control or to which the Employee may have access. The Employee will not reproduce or appropriate for the Employee’s own use, or for the use of others, any property, Proprietary Information or Company inventions. 
 2. Legal and Equitable Remedies. Because the Employee’s services are personal and unique and the Employee has had and will continue to have access to and has
become and will continue to become acquainted with the proprietary information of the Company, and because any breach 

  

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by the Employee of any of the restrictive covenants contained in Section 1 would result in irreparable injury and damage for which money damages would
not provide an adequate remedy, the Company shall have the right to enforce Section 1 and any of its provisions by injunction, specific performance or other equitable relief, without bond and without prejudice to any other rights and remedies
that the Company may have for a breach, or threatened breach, of the restrictive covenants set forth in Section 1. The Employee agrees that in any action in which the Company seeks injunction, specific performance or other equitable relief, the
Employee will not assert or contend that any of the provisions of Section 1 are unreasonable or otherwise unenforceable. The Employee irrevocably and unconditionally (a) agrees that any legal proceeding arising out of this paragraph may be
brought in the United States District Court for the Eastern District of Pennsylvania, or if such court does not have jurisdiction or will not accept jurisdiction, in any court of general jurisdiction in Chester County, Pennsylvania,
(b) consents to the non-exclusive jurisdiction of such court in any such proceeding, and (c) waives any objection to the laying of venue of any such proceeding in any such court. The Employee also irrevocably and unconditionally consents
to the service of any process, pleadings, notices or other papers. 
 3. Miscellaneous. 
 (a) Governing Law. The rights of the Company under this Agreement are in addition to, not in lieu of, the rights afforded to it by law, which shall
in no way be affected hereby. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania without giving effect to the conflicts of laws provisions thereof. 
 (b) Binding Agreement; Assignment. This Agreement shall inure to the benefit of and becoming binding upon the Company, its successors and assigns,
and Employees, his or her heirs, executors, administrators and legal representatives; provided, however, that the obligations of Employee hereunder may not be delegated. 
 (c) Amendment Headings. This Agreement represents the entire agreement of the parties with respect to the subject matter hereof and may not be changed or terminated orally. The descriptive headings of the
several sections of this Agreement are inserted for convenience only and do not constitute a part of this Agreement. 
 (d) Waiver. No
waiver by any party of any breach of any term hereof shall be construed as a waiver of any subsequent breach of that term or any other term of the same or of a different nature. 
 (e) Notices. Any notices of other communications given pursuant to this Agreement shall be in writing and shall be deemed given when delivered or
mailed in any general or branch office of the United States Postal Service by registered or certified mail, return receipt requested, to the parties’ respective addresses set forth in this Agreement. Either party to this Agreement may change
the aforesaid address by notice to the other party hereto given in the manner prescribed in this paragraph; provided, however, that notice of change of address will be effective only upon receipt. 
  

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 (f) Severability. If any court of competent jurisdiction determines that it is not possible to
construe any provision of this Agreement consistently with a law or public policy, and consequently holds that said provision is invalid, such holding shall in no way affect the validity of the other provisions of this Agreement. 
 (g) Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be original and all of which taken together
shall constitute one and the same instrument. 
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year
first above written. 
  

							
	ORTHOVITA INC.	 		 	
				
	By:	 	 /s/ Antony Koblish
	 		 	 /s/ Maarten Persenaire, M.D.

		 	President & CEO	 		 	
		 		 		 	Address:
		 		 		 	  

				
		 		 		 	  

  

 4Development, Manufacturing and Supply Agreement

 *** CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND WILL BE FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST UNDER 17 C.F.R. SECTIONS 200.80(B)(4) AND 230.406. 
 EXHIBIT 10.40 

FIFTH AMENDMENT TO THE DEVELOPMENT, MANUFACTURING AND SUPPLY AGREEMENT 
 This Fifth Amendment to the Development, Manufacturing and Supply Agreement (the “Fifth Amendment”), dated as of February 21, 2007,
is between Kensey Nash Corporation, a Delaware corporation, having its principal place of business at 735 Pennsylvania Dr., Exton, PA 19341 (hereinafter referred to as “KNC”) and Orthovita, Inc., a Pennsylvania corporation, having
its principal place of business at 77 Great Valley Parkway, Malvern, PA 19355 (hereinafter referred to as “Orthovita”). 
 WHEREAS, KNC and Orthovita are parties to a certain DEVELOPMENT, MANUFACTURING AND SUPPLY AGREEMENT, dated March 25, 2003, as amended (the “Agreement”); 
 WHEREAS, Orthovita and KNC desire to develop and commercialize an Additional Product, as defined in the Agreement, as a product line extension of
Orthovita’s proprietary synthetic bioactive bone grafting material known as VITOSS; 
 WHEREAS, Orthovita and KNC desire to jointly
pursue the foregoing; and 
 WHEREAS, KNC and Orthovita wish to amend the Agreement, as herein provided; 
 NOW THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt of which is hereby
acknowledged, KNC and Orthovita agree as follows: 
 1. Scope of This Fifth Amendment: This Fifth Amendment is meant to amend, modify or supercede only
those specific Sections, rights, responsibilities, liabilities and/or covenants expressly stated in this Fifth Amendment, and only to the extent so stated; all other Sections and covenants of the Agreement shall remain unaffected and shall have
their full force and effect. 
 2. Additional Product: Pursuant to Section 3.8 of the Agreement, KNC and Orthovita hereby designate BioActive
VITOSS FOAM (as defined below) as an Initial Product. To effect this change, Section 1.19 of the Agreement shall hereby be amended and restated in its entirety as follows: 
 “1.19. “Initial Product(s)” shall mean any one or combination of [***] 
 3. Definition of Consignment Stock: Section 1.9 of the Agreement is hereby amended and restated in its entirety to read as follows: 
 “1.9 “Consignment Stock” shall mean the stock of (i) VITOSS and (ii) BioActive Ceramic Material maintained by KNC at its
facility, or another facility of KNC’s choosing with prior written notice to Orthovita.” 

 4. Additional Defined Terms: It is hereby agreed that the following definitions shall be added to Article 1 of the
Agreement: 
 “1.45. “BioActive Ceramic Material” shall mean [***] 
 “1.46. “Designated Product” shall mean a VITOSS FOAM product which shall be designated as the equivalent of a BioActive VITOSS FOAM
product for purposes of calculating the Transfer Prices for BioActive VITOSS FOAM and the BioActive VITOSS FOAM Royalty, and the designation shall be based upon the equivalence of volumes or specific dimensions of the products and be reasonably
agreed upon by the parties in writing from time to time prior to the sale of any BioActive VITOSS FOAM Product.” 
 “1.47
“BioActive VITOSS FOAM” shall mean VITOSS, combined with BioActive Ceramic Material and fibrous bovine collagen.” 
 5. BioActive
VITOSS FOAM Term: The Initial Term of the Agreement, solely as it relates to BioActive VITOSS FOAM (including Sections 4.1, 4.3 and 4.5(k) of the Agreement as amended, added, or otherwise affected by this Fifth Amendment) shall, unless
earlier terminated as provided in the Agreement, terminate upon the expiration of the last issued patent based on or claiming priority to [***], including any continuing, divisional, re-examination, and re-issue patents or applications, as
appropriate. The Initial Term of the Agreement with respect to any other Initial Product(s) shall not be affected by this Fifth Amendment. 
 6. Sharing
of Data: The first sentence of Section 3.6 of the Agreement is hereby amended and restated in its entirety to read as follows: 
 “3.6 Sharing of Data. Except with respect to proprietary manufacturing information related to a party’s respective proprietary materials and processes and proprietary information related to a party’s proprietary
materials, all data generated from the Development Program, including, but not limited to, laboratory, animal and clinical data, and also including all regulatory filings and correspondence to all regulatory authorities relating to the Development
Program, shall be owned by both parties jointly, and the party generating or receiving any such data shall promptly make available and share it with the other party; provided, however, that prior to sharing such data, each party may redact the
proprietary information related to its respective proprietary manufacturing, materials and processes.” 
 7. Certain Restrictions Applicable to
KNC. (a) The second sentence of Section 4.3 of the Agreement is hereby amended and restated in its entirety to read as follows: 
 “Subject to the provisions set forth in Section 4.5(k) and the use of the joint Intellectual Property set forth in Section 8.4 herein, nothing in this Agreement shall preclude KNC from continuing to conduct such business
during the Term of this Agreement, or otherwise.” 
  
 *** CERTAIN INFORMATION
IN THIS EXHIBIT HAS BEEN OMITTED AND WILL BE FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST UNDER 17 C.F.R. SECTIONS 200.80(B)(4) AND 230.406. 

 (b) In addition, a new Section 4.5(k) is hereby added to the Agreement to read as follows:

 “(k) not directly or indirectly, except as provided hereunder, knowingly or willfully sell, assist the sale of (through manufacturing,
supply or otherwise), cause to be sold or otherwise dispose of any products or materials incorporating, nor assign, transfer, or grant any rights or license to any intellectual property for the coverage of the incorporation or combination of,
BioActive Ceramic Material and any collagen, collagen composite, collagen derived material or collagen derived material composite, in each case, in the field of orthopedics, spine, trauma and craniomaxillofacial surgery. Additionally, KNC will not
utilize the specific collagen or collagen composite formulation together with BioActive Ceramic Material established for the BioActive VITOSS FOAM Product in the field of dental or periodontal surgery. The restrictions set forth in this
Section 4.5(k) shall survive for a one (1) year period following the effective date of termination of this Agreement if Orthovita terminates this Agreement in accordance with Section 14.2.” 
 8. Section 4.5(i) of the Agreement is hereby amended and restated in its entirety to read as follows: 
 “i. maintain Consignment Stock at its facility, at the KNC address first listed above, 735 Pennsylvania Dr., Exton, PA 19341, or another facility of
KNC’s choosing with prior written notice to Orthovita, in accordance with cGMP, keep Consignment Stock identified as property of Orthovita, allow Orthovita to inspect the Consignment Stock during normal business hours upon reasonable request
and prior written notice and shall make available to Orthovita, as requested, records regarding its usage, which KNC shall maintain as reasonably requested by Orthovita. KNC shall be responsible for any costs associated with excess usage, loss, or
destruction (beyond that required by the Product Specifications and expected yields of the manufacturing process) caused by its negligent mishandling of Consignment Stock, for which it will reimburse Orthovita for Consignment Stock at
Orthovita’s standard cost for the material; and” 
 9. BioActive VITOSS FOAM Products Royalty: It is hereby agreed that the following
language is added to the end of Section 6.1 of the Agreement: 
 “Notwithstanding the foregoing, the royalty payable by Orthovita to
KNC for BioActive VITOSS FOAM Products shall equal [***] of the Net Sales of BioActive VITOSS FOAM Product (“BioActive VITOSS FOAM Royalty”)[***] 
 10. Minimum Unit Sales: It is hereby agreed that the following language is added to Section 6.8 of the Agreement. 
 “Orthovita agrees to achieve Minimum Unit Sales of BioActive VITOSS FOAM Products during the first two years after its First Commercial Sale to the end use market. Notwithstanding anything to the contrary contained herein, BioActive
VITOSS FOAM Products shall have separate and independently calculated Minimum Unit Sales requirements (cumulative by size and configuration) as 
  
 *** CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND WILL BE FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A CONFIDENTIAL TREATMENT
REQUEST UNDER 17 C.F.R. SECTIONS 200.80(B)(4) AND 230.406. 

 
stated below, where one Unit is equivalent to one part number of BioActive VITOSS FOAM Product: 
 Year One: [***] Units 
 Year Two: [***] Units

 Any failure by Orthovita to achieve Minimum Unit Sales for BioActive VITOSS FOAM Product shall not result in an increase to the BioActive
VITOSS FOAM Royalty. In the event that Orthovita does not achieve Net Sales of BioActive VITOSS FOAM Products sufficient to pay royalties in the amount of [***] cumulatively during the first three years after its First Commercial Sale, Orthovita
shall promptly reimburse KNC for development costs (at reasonable and billable manpower rates) for the BioActive VITOSS FOAM Products which have become Commercial Products, up to a maximum of [***] less the aggregate amount of royalties actually
paid to KNC related to BioActive VITOSS FOAM Products.” 
 11. Transfer Price: The Transfer Price for BioActive VITOSS FOAM Products shall be as
follows, and it is hereby agreed that the following language is added to Section 5.1 of the Agreement: 
 “BioActive VITOSS FOAM
Products shall be invoiced at the Transfer Prices then in effect for the relevant Designated Products. Such Transfer Prices in effect on the Effective Date are attached hereto as Exhibit 5-A. Transfer Price quantity discounts shall be calculated on
the aggregated orders of BioActive VITOSS FOAM Products and VITOSS FOAM Products. The parties acknowledge that the BioActive VITOSS FOAM Products will incorporate VITOSS and BioActive Ceramic Materials, both of which shall be supplied by Orthovita
to KNC at no charge. Transfer Prices for BioActive VITOSS FOAM Products for which there is no corresponding Designated Product shall be determined in accordance with the Agreement.” 
 12. Change of Notice Address: Section 16.3 of the Agreement is hereby amended to provide that the address for notices, demands and communications to be sent to KNC or Orthovita under of or by reason of the
provisions of the Agreement is as follows: 
 If to KNC: 
 Joseph W. Kaufmann, President and CEO 
 Kensey Nash Corporation 
 735 Pennsylvania Drive 
 Exton, PA 19341

 With a copy to, which shall not constitute notice: 
  
 *** CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND WILL BE FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO A CONFIDENTIAL TREATMENT REQUEST UNDER 17 C.F.R. SECTIONS 200.80(B)(4) AND 230.406. 

 Jeffrey C. Kelly, Esq. 
 Kensey Nash Corporation 
 735 Pennsylvania Drive 
 Exton, PA 19341 
 If to ORTHOVITA:

 Antony Koblish, President and CEO 
 Orthovita, Inc. 
 77 Great Valley Parkway 
 Malvern, PA 19355 
 With a copy to, which shall not constitute notice: 
 Christine J. Arasin, Corporate Counsel 
 Orthovita, Inc. 
 77 Great Valley Parkway 
 Malvern, PA 19355 
 13. Designated Products. The following VITOSS FOAM Products are Designated Products for the
respective BioActive VITOSS FOAM Products set forth below: 
  

			
	BioActive VITOSS FOAM Product	 	Designated Product
		
	 BioActive VITOSS Foam Strip
 25X50X4mm
5cc
	 	 VITOSS Foam Strip
 25X50X4mm 5cc

		
	 BioActive VITOSS Foam Strip
 25X50X8mm
10cc
	 	 VITOSS Foam Strip
 25X50X8mm 10cc

		
	 BioActive VITOSS Foam Strip
 25X100X4mm
10cc
	 	 VITOSS Foam Strip
 25X100X4mm 10cc

		
	 BioActive VITOSS Foam Strip
 25X100X8mm
20cc
	 	 VITOSS Foam Strip
 25X100X8mm 20cc

 14. Amendment and Waiver. This Fifth Amendment may be amended, and any provision of this Fifth Amendment
may be waived, provided that any such amendment or waiver will be binding on each party only if same is set forth in a writing executed by such parties. Waiver of a breach of the Fifth Amendment shall not constitute a waiver of any other subsequent
breach of the Fifth Amendment. The waiver of any provision of this Fifth Amendment shall not constitute a continuing waiver of that provision or a waiver of any other provision of this Fifth Amendment. 

 15. Notices. All notices, demands and other communications to be given or delivered under or by reason of the
provisions of this Fifth Amendment shall be done so in accordance with the provisions of the Agreement, as amended hereby. 
 16. Severability.
Whenever possible, each provision of this Fifth Amendment will be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Fifth Amendment is held to be prohibited by or invalid under applicable
law, such provision will be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Fifth Amendment. 
 17. Counterparts. This Fifth Amendment may be executed in one or more counterparts all of which taken together will constitute one and the same instrument.

 18. Governing Law. The law of the Commonwealth of Pennsylvania will govern, without regard to the conflicts of law provisions thereof, all
questions concerning the construction, validity and interpretation of this Fifth Amendment and the performance of the obligations imposed by this Fifth Amendment. 
 19. Headings. Section headings used in this Fifth Amendment are for convenience only and form no part or in any way modify or define the text of meaning or any provision of this Fifth Amendment. 
 IN WITNESS WHEREOF, the parties have executed this Fifth Amendment through their duly authorized representatives as of the date first written above.

  

									
	ORTHOVITA, INC.	 		 	KENSEY NASH CORPORATION
					
	By:	 	 /s/ Antony Koblish
	 		 	By:	 	 /s/ Joseph W. Kaufmann

		 	Chief Executive Officer	 		 		 	President and CEO

 EXHIBIT 5-A 
 [***] 
  
 *** CERTAIN INFORMATION IN THIS EXHIBIT
HAS BEEN OMITTED AND WILL BE FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST UNDER 17 C.F.R. SECTIONS 200.80(B)(4) AND 230.406.

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