Document:

Exclusive Sales Distribution Agreement

 Exhibit 10.1 
  
 CONFIDENTIAL 
  
 EXCLUSIVE SALES DISTRIBUTION AGREEMENT 
  
 THIS EXCLUSIVE SALES DISTRIBUTION AGREEMENT (“Agreement”) is made and entered into as of the Effective Date (as defined in Article 1 hereof) by
and between Orthovita, Inc., a Pennsylvania corporation with principal offices at 45 Great Valley Parkway, Malvern, Pennsylvania 19355 (“Orthovita”), and Cohesion Technologies, Inc., a Delaware corporation with principal offices at 2500
Faber Place, Palo Alto, California 94303 (“Cohesion”). 
  
 W I T N E S S E T H : 
  
 WHEREAS, Cohesion is
engaged in the business of developing, manufacturing, selling and distributing certain biopharmaceutical and biosurgical products and is desirous of establishing a competent and exclusive distribution source for sales of CoStasis Products in the
Territory (as defined in Article 1 hereof); and 
  
 WHEREAS,
Orthovita desires to be Cohesion’s exclusive sales distributor for such CoStasis Products in the Territory, is well introduced in the market, and is willing and able to provide a competent distribution organization in the Territory; 

 
 NOW, THEREFORE, the Parties hereto, in consideration of the premises and
mutual covenants and undertakings herein contained, agree as follows: 
  
 Article 1. 
 Definitions 
  
 As used in this Agreement, the following terms shall have the meanings specified in this Article 1: 
  
 1.1 “AAA” is defined in Section 18.1. 
  
 1.2 “Accessory(ies)” shall mean any accessory item set forth in Exhibit B that is sold for use with
CoStasis Products. 
  
 1.3 “Acquiring Party” is
defined in Section 8.4. 
  
 1.4 “Act” shall mean
the United States Food, Drug and Cosmetic Act of 1938, as it has been amended prior to the Effective Date and may be amended thereafter during the term of this Agreement. 
  
 1.5 “Adverse Event” shall mean an event about which either Party or an Agent receives or becomes aware of
information from any source that reasonably suggests that one of the marketed Products (a) may have caused or contributed to a death or serious injury, or serious deterioration in the state of health of a patient, or (b) may have malfunctioned in a
manner that, if the malfunction were to recur, the Product would be likely to cause or contribute to a death, serious injury, or serious deterioration in the state of health of a patient consistent with the Medical Device Reporting Requirements set
forth in 21 C.F.R. Part 803. 
  

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 1.6 “Affiliate” of a Party shall mean any entity (a) which directly or indirectly
through one or more intermediaries controls, is controlled by, or is under common control with, that Party, but only for so long as the relationship exists; or (b) wherein more than fifty percent (50%) of the voting capital stock (or such lesser
maximum percentage permitted by applicable law) is beneficially owned or held by that Party or any of such Party’s subsidiaries or parents. 
  
 1.7 “Agents” shall mean sublicensees, subdistributors, agents or co-promoters of Orthovita. 
  
 1.8 “Baseline Sales” is defined in Section 8.4. 

 
 1.9 “Calendar Year” shall mean the period starting on
January 1 of a year and ending on December 31 of that same year; provided that the first Calendar Year of this Agreement, Calendar Year 2004, shall commence on the Effective Date and end on December 31, 2004. 
  
 1.10 “CellPaker Price” shall mean the price of CellPaker
Products as set forth in Exhibit F, as it may be amended from time to time. 
  
 1.11 “CellPaker Product(s)” shall mean CellPaker® Plasma Collection System products, as such products may be rebranded by the Parties pursuant to Section 5.2, manufactured by or for Cohesion, subject to Sections 6.15 and 6.16, for use
with CoStasis Products as further described in Exhibit A hereto. 
  
 1.12 “CoStasis Price” shall mean the price of CoStasis Products as set forth in Exhibit F, as it may be amended from time to time. 
  
 1.13 “CoStasis Product(s)” shall mean CoStasis® Surgical Hemostat products, as such products may be rebranded by the Parties pursuant
to Section 5.2, manufactured by or for Cohesion, subject to Sections 6.15 and 6.16, as further described in Exhibit A hereto. The term “CoStasis Products” shall expressly exclude drug-loaded formulations of CoStasis® Surgical Hemostat products. 
  
 1.14 “CFO” shall mean Chief Financial Officer. 

 
 1.15 “Co-Chair” is defined in Section 5.1. 
  
 1.16 “Competitive Product” shall mean a product, other than
a CoStasis Products, which has obtained Regulatory Approval for use as a Hemostat. 
  
 1.17 “Confidential Information” is defined in Section 10.1. 
  
 1.18 “Dollars” shall mean the lawful currency of the United States of America. 
  
 1.19 “Effective Date” shall mean July 1, 2004. 

 
 1.20 “European Union” shall mean (a) the member countries
of the European Union as of the Effective Date (i.e., Austria, Belgium, Cyprus, Czech Republic, Denmark, Estonia, 

  

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Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxemburg, Malta, Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain,
Sweden and the United Kingdom), and (b) those additional countries that thereafter become members of the European Union. 
  
 1.21 “Field” shall mean, (a) with respect to CoStasis Products, human medical uses of the CoStasis Products as a Hemostat for all
indications, including Future Indications, in all cases as approved for use as a Hemostat on the CoStasis Products label by the appropriate Regulatory Authority, and (b) with respect to CellPaker Products human medical uses of the CellPaker
Products, as approved for use on the CellPaker Products label by the appropriate Regulatory Authority. The term “Field” shall expressly exclude (y) drug-loaded formulations of the CoStasis Products even if such drug-loaded formulations are
approved for human use as a Hemostat, and (z) non-Hemostat and non-human uses of the CoStasis Products. 
  
 1.22 “Force Majeure” is defined in Section 11.1. 
  

1.23 “Future Indication” shall mean an indication for which a Product has not obtained Regulatory Approval in a given country in North
America as of the Effective Date or in a given country in the European Union or the ROW as of the date of exercise of the applicable Option pursuant to Section 2.5. For the sake of clarity, and by way of example only, if a Product has obtained
Regulatory Approval for a certain indication in Canada, but not in the United States, as of the Effective Date, then such indication is a Future Indication with respect to the United States. 
  
 1.24 “Hemostat” shall mean a product whose primary purpose
is to stop bleeding through an activation of the coagulation cascade. 
  
 1.25 “Joint Clinical Development Committee” is defined in Section 5.1, and its responsibilities are set forth in Section 5.3. 
  
 1.26 “Joint Commercial Operations Committee” is defined in Section 5.1, and its responsibilities are set forth in Section 5.4.

  
 1.27 “Joint Sales and Marketing Committee” is
defined in Section 5.1, and its responsibilities are set forth in Section 5.2. 
  
 1.28 “Indemnified Party” shall mean the Party entitled to be indemnified by the other Party pursuant to Section 7.6, 7.7, 7.8 or 7.9. 
  
 1.29 “Indemnifying Party” shall mean the Party obligated to indemnify the Indemnified Party. 
  
 1.30 “Know-how” shall mean secret and substantial technical
and scientific information regarding the Products, which may be necessary, useful or advisable to enable Orthovita to promote, market, distribute and sell the Products in the Field in the Territory, and as is or will be specified in Cohesion’s
sole discretion in the documentation which Cohesion has delivered or will deliver to Orthovita as of the Effective Date or thereafter during the term of this Agreement. 
  

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 1.31 “Loss” is defined in Section 7.6. 
  
 1.32 “Measuring Period” is defined in Section 8.4.

  
 1.33 “Minimum Sales” are set forth in
Exhibit C, as it may be amended from time to time. 
  
 1.34
“Net Sales” shall mean, for a given period, the gross amount invoiced for the sale of the CoStasis Products anywhere in the Territory during such period that are attributable to sales of CoStasis Products by Orthovita or by an
Affiliate, subdistributor or other agent (appointed in accordance with Section 2.2) on behalf of Orthovita, less the sum of the following items: 
  

	 	(a)	discounts (including cash discounts and quantity discounts), cash and non-cash coupons, refunds, rebates, credits, chargebacks, vouchers, retroactive price adjustments and any other
allowances, including amounts written off by reason of uncollectible debt, that effectively reduce the net selling price, in each case, as may be extended in the ordinary course of business consistent with past practice or as customary in the
industry, including those granted or given to managed health care organizations, wholesalers and other distributors, buying groups, health care insurance carriers, or to federal, state and local governments, their agencies; 

 

	 	(b)	actual CoStasis Products credits, returns and allowances; 

  

	 	(c)	any tax imposed on the sale, delivery or use of the CoStasis Products, including without limitation, sales, use, excise or value added taxes, provided in each such case that such
tax is included in the gross amount invoiced; and 

  

	 	(d)	allowances for reasonable and customary shipping expenses, provided that such allowance is included in the gross amount invoiced. 

  
 For purposes of this Agreement in North America, the sale or transfer of
CoStasis Products between Orthovita (or an Affiliate of Orthovita) and an Affiliate, subdistributor or other agent (appointed in accordance with Section 2.2) of Orthovita for resale by the receiving entity shall not be deemed a sale for the purpose
of this provision, but the resale by such receiving entity to a third party shall be a sale for such purposes. For the European Union or the ROW, upon exercise of an Option by Orthovita pursuant to Section 2.5, the Joint Sales and Marketing
Committee shall consider any revision of this definition in accordance with Section 6.6. 
  
 1.35 “North America” shall mean the United States, Canada and Mexico, along with their respective territories or possessions. 
  
 1.36 “Option(s)” is defined in Section 2.5. 
  
 1.37 “Parties” shall mean both Cohesion and Orthovita, and “Party” shall mean either of
them as the context indicates. 
  

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 1.38 “Price” shall mean the CellPaker Price and the CoStasis Price, collectively or
individually as the context requires. 
  
 1.39
“Products” shall mean CoStasis Products and CellPaker Products, collectively or individually as the context requires. 
  
 1.40 “Program Director” is defined in Section 5.1. 
  
 1.41 “Purchase Order” is defined in Section 6.8. 
  
 1.42 “Regulatory Approval” shall mean all authorizations by
the appropriate governmental entity or entities necessary for commercial sale of a Product in a country in the Territory, including, without limitation and where applicable, approval of labeling, price, reimbursement and manufacturing. 

 
 1.43 “Regulatory Authority” shall mean, with respect to
any particular country, territory or union, the governmental authority, body, commission, agency or other instrumentality of such country, territory or union with the primary responsibility for the evaluation or approval of medical products before
such medical product can be tested, marketed, promoted, distributed or sold in such country, including such governmental bodies that have jurisdiction over the pricing of such medical product. The term “Regulatory Authority” includes, but
is not limited to, the United States Food and Drug Administration, the European Agency for the Evaluation of Medicinal Product and European Member State Competent Authorities. 
  
 1.44 “Regulatory Filing” shall mean all activities relating to the filing for and procurement of Regulatory
Approval for the marketing and sale of a Product from the relevant Regulatory Authorities. 
  
 1.45 “ROW” shall mean those territories and countries outside North America and the European Union. 
  
 1.46 “Samples” is defined in Section 6.14. 
  
 1.47 “********” is defined in Section 6.7. 
  
 1.48 “********” is defined in Section 6.7. 
  
 1.49 “Support Period” is defined in Section 4.1. 
  

1.50 “Term” is defined in Section 8.1. 
  
 1.51 “Territory” shall mean North America. Upon Orthovita’s exercise of either or both of its Options pursuant to Section 2.5, the
term “Territory” shall include the entire European Union and the entire ROW, as applicable, subject to exclusion of certain countries from such Territory as set forth in Section 2.5. 
  
 1.52 “Trademarks” shall mean all trademarks, trade names,
service marks, logos and derivatives thereof relating to the Products and the Accessories. 
  

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 Article 2. 
 Appointment 
  
 2.1 Subject
to the terms and conditions of this Agreement, Cohesion hereby appoints Orthovita as Cohesion’s (a) exclusive sales distributor for the sale of CoStasis Products in the Field in the Territory, and (b) non-exclusive sales distributor for the
sale of CellPaker Products in the Field in the Territory, and, in each case, Orthovita hereby accepts such appointment. As sales distributor in the Territory, Orthovita shall, subject to the terms and conditions of this Agreement, have the exclusive
right to promote, market, distribute and sell CoStasis Products in the Field in the Territory and the non-exclusive right to promote, market distribute and sell CellPaker Products in the Field in the Territory, but shall have no right to take any
such action outside the Territory or outside of the Field. In the Territory, Orthovita shall use commercially reasonable efforts to (x) provide and maintain a competent organization for the promotion, marketing, distribution and sale of Products;
(y) assure competent and prompt handling of inquiries, orders, shipments, billings and collections with respect to the Products, and (z) devote careful attention to customers’ requirements for all Products. For the avoidance of doubt, Cohesion
shall have no right or obligation to promote or market CoStasis Products in the Field in the Territory and shall have no obligation to promote or market CellPaker Products in the Field in the Territory. 
  
 2.2 If Orthovita intends to enter into a sublicense, subdistributor, agency
or co-promotion agreement with respect to the Products anywhere in the Territory, then (a) Orthovita shall not be required to obtain Cohesion’s written consent prior to executing the agreement if (i) Orthovita has obtained Cohesion’s
written consent to the form of the agreement prior to executing such agreement, which consent shall not be unreasonably withheld or delayed, and (ii) the executed sublicense, subdistributor, agency or co-promotion agreement shall be substantially
and materially the same as the form of the agreement previously provided to Cohesion; and (b) Orthovita shall provide to Cohesion a copy of the applicable executed sublicense, subdistributor, agency or co-promotion agreement at the next meeting of
the Joint Sales and Marketing Committee. Notwithstanding the foregoing, if the nature of the proposed sublicensee, subdistributor, agent or co-promoter is not consistent with Orthovita’s past business practices, then Cohesion shall have the
right to approve the identity of the proposed sublicensee, subdistributor, agent or co-promoter prior to Orthovita’s execution of any agreement with respect to the Products with such sublicensee, subdistributor, agent or co-promoter.

  
 2.3 In a manner reasonably satisfactory to Orthovita, Cohesion
agrees to make all declarations and filings necessary to maintain any present Regulatory Approvals that are required to be maintained in connection with the promotion, marketing, sale or distribution of the Products in the Field in the Territory.
All costs for maintaining present Regulatory Approvals for indications approved in the applicable country of the Territory as of the Effective Date shall be borne solely by Cohesion. All costs and responsibilities associated with Future Indications,
including costs associated with obtaining and maintaining Regulatory Approvals for Future Indications, shall be shared as set forth in Section 5.7. 
  
 2.4 During the Term, Orthovita shall be considered an independent contractor and shall not be considered a partner, employee, agent or servant of Cohesion
or its Affiliates. As such, Orthovita and its Agents have no authority of any nature whatsoever to bind Cohesion or 

  

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its Affiliates, or to incur any liability for or on behalf of Cohesion or its Affiliates, or to represent itself and themselves as anything other than the
independent sales distributor of Products in the Field in the Territory. Orthovita agrees to make clear in all dealings with customers or prospective customers that it is acting as the distributor of the Products in the Field in the Territory, and
not as an agent of Cohesion or its Affiliates. 
  
 2.5 Subject to
the terms and conditions of this Agreement, Cohesion hereby grants to Orthovita options (“Options”) to add (a) the entire European Union and/or (b) the entire ROW, to the Territory; provided that the Option with respect to the European
Union shall not be exercisable prior to November 1, 2004. Either or both of these Options may be exercised by Orthovita by (y) providing Cohesion written notice of Orthovita’s desire to exercise such Option, and (z) paying to Cohesion an Option
exercise payment, as applicable, of (i) ******** for exercise of the Option for the European Union, and (ii) ******** for exercise of the Option for the ROW. As of thirty (30) days after the date on which Cohesion is in receipt of this
written notice and corresponding Option exercise payment, the definition of Territory shall be deemed to include the European Union and/or the ROW, as applicable, as well as North America, and Orthovita shall have the exclusive right to promote,
market, distribute and sell CoStasis Products, and the non-exclusive right to promote, market, distribute and sell CellPaker Products, in the European Union and/or the ROW, as applicable, in the Field as set forth in this Agreement. If Orthovita
exercises its Option to add the European Union or the ROW to the Territory, then the Parties will negotiate in good faith to extend the remaining Term of this Agreement. If, prior to Orthovita’s exercise of the applicable Option, Cohesion
desires to ********, Cohesion shall first notify Orthovita in writing of its intention to ********. Orthovita shall have ******** from the date Cohesion notifies Orthovita of its intention to ******** to notify Cohesion
of Orthovita’s desire to ********, as applicable. If after such ******** period, Orthovita has not ********, Cohesion shall ********, and thereafter, notwithstanding anything herein to the contrary, such
******** shall not be available to be added to the ********. 
  
 2.6 Orthovita shall, and shall ensure that its Agents shall, promptly inform Cohesion of any misappropriation of the Know-how which comes to its attention. After discussing any such situation with Orthovita, Cohesion
shall have the sole right, in its discretion, to take such action as it deems appropriate, and Orthovita, at Cohesion’s written request and expense, shall assist Cohesion in taking legal action, if deemed appropriate by Cohesion, to stop such
misappropriation. 
  
 2.7 Nothing in this Agreement shall be
construed as giving Orthovita or its Affiliates or Agents any right to use or otherwise deal with the Know-how for purposes other than those expressly provided for in this Agreement. Orthovita acknowledges and agrees that any improvements or
inventions, whether patentable or not, relating to the Products shall be owned solely by Cohesion. 
  
 2.8 Except as expressly set forth herein, all costs and expenses connected with Orthovita’s activities or performance under this Agreement are to be
borne solely by Orthovita. 
  

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 Article 3. 
 Certain Performance Requirements 
  
 3.1 Orthovita agrees to use commercially reasonable efforts to promote, market, sell and distribute the Products only to customers and potential customers within the Territory for ultimate use in the Field within the Territory. Orthovita
will not knowingly, under any circumstances, either directly or indirectly through third parties, promote, market, sell, or distribute Products (a) within or to, or for ultimate use within, any place outside the Territory, or (b) for use outside the
Field. 
  
 3.2 In order to assure Cohesion that Orthovita is in
compliance with Section 3.1, Orthovita agrees that Cohesion may mark for identification all Products sold by Cohesion to Orthovita hereunder, as approved by the Joint Commercial Operations Committee. 
  
 3.3 Orthovita shall promptly provide Cohesion with any information which
Cohesion may reasonably request in order to be updated on the Product-related market conditions in the Territory. Orthovita shall, and shall ensure that its Agents shall, also promptly notify Cohesion if Orthovita becomes aware of any products
marketed or sold in the Territory that appear to be equivalent to any of the Products. 
  
 3.4 Provided that Cohesion has supplied Products to Orthovita in accordance with the terms of this Agreement, Orthovita shall maintain a sufficient inventory of Products to assure an adequate supply of Products to
serve all its market segments. Orthovita shall maintain all of its inventory of Products in a manner that is clearly segregated and that meets all storage and other standards required by applicable governmental authorities and as reasonably required
by Cohesion. Cohesion shall provide Orthovita with any such requirements, and any amendments thereto, in advance in writing. Those portions of Orthovita’s facilities where Products are stored shall be subject to inspection by Cohesion or its
agents upon seventy-two (72) hours prior written notice, but no more than once per Calendar Year; provided that if such an inspection reveals that Orthovita is not in compliance with this Section 3.4, then Cohesion shall be entitled to inspect
Orthovita’s facilities at reasonable intervals until such time as Orthovita is in compliance with this Section 3.4 for an entire Calendar Year. For all Cohesion inspection requests under this Section 3.4, Orthovita shall promptly respond to
Cohesion’s requests for inspection and the Parties shall agree on the time, scope and manner of the inspection. 
  
 3.5 Orthovita shall be responsible for and shall collect all governmental and regulatory sales and other taxes, charges, duties and fees that may be due
and owing upon sales of Products by Orthovita. Upon written request from Orthovita, Cohesion shall provide Orthovita with such certificates or other documents as may be reasonably required to establish any applicable exemptions from the collection
of such taxes, charges, duties and fees. 
  
 3.6 Except during the
time in which Orthovita has assumed oversight and management of Product manufacturing, all Products shall be packaged and labeled for sale and delivered by or on behalf of Cohesion to Orthovita subject to and in accordance with all local rules and
regulations, and in conformance with the mutually agreed upon instructions of the Joint Sales and Marketing Committee. Neither Party shall use any label, advertisement or marketing material on, or with respect to or relating to the promotion,
marketing, distribution and sale of, 

  

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Product in the Field in the Territory unless such label, advertisement or marketing material has first been submitted to and approved in writing by the Joint
Sales and Marketing Committee. 
  
 3.7 Neither Party shall make
any alterations or knowingly permit any alterations to be made to the Products in the Field in the Territory without the other Party’s prior written consent. 
  
 3.8 Orthovita agrees not to make, or permit any of its employees, agents or representatives to make, any claims or
representations relating to any Product, unless such claims or representations have received prior written approval from Cohesion and from the applicable Regulatory Authorities. 
  
 3.9 Orthovita will use commercially reasonable efforts to actively promote, develop demand for and maximize the sale of the
Products to all customers and potential customers within the Territory for use in the Field; provided that all Products shall be advertised, marketed, sold and distributed by Orthovita, and Product inventory shall be maintained by Orthovita, in
compliance with the rules and regulations, as amended from time to time, of (a) all applicable Regulatory Authorities within the Territory in which the Products are marketed, and (b) all other applicable laws, rules and regulations. Orthovita shall
promote a Product within the Field only for indications covered by the labeling and literature that accompany the Product and that have been approved, cleared or otherwise allowed by the applicable Regulatory Authorities in the country in which such
promotion occurs. 
  
 3.10 If either Party becomes aware of any
Adverse Events, it shall promptly notify the other Party and provide reasonable assistance in evaluating and investigating and, when necessary, Cohesion shall report such Adverse Event to the applicable Regulatory Authority. The Parties shall comply
with any necessary corrective action and with all applicable reporting laws, rules and regulations governing Adverse Events. 
  
 Article 4. 
 Cohesion Support

  
 4.1 For six (6) months after the Effective Date (the
“Support Period”), and upon Orthovita’s written request, Cohesion shall make personnel selected by Cohesion reasonably available to cooperate with and reasonably support sales orientation and training of Orthovita’s personnel, as
well as reasonably support Orthovita’s product launches, marketing, and promotion relating to the Products, up to a maximum of ******** total Cohesion personnel work hours. During the Support Period, if Orthovita requests such personnel
support, Orthovita shall ********, for any personnel work hours of assistance requested by Orthovita and agreed to be provided by Cohesion. Cohesion will provide appropriate supporting documentation for ******** upon request by
Orthovita. If Orthovita requests continued personnel support in excess of such maximum number of Cohesion personnel work hours or beyond the Support Period, Cohesion shall propose to Orthovita in writing the personnel to be assigned, the number of
work hours such personnel will be available, and the ******** by Orthovita. Orthovita then may agree to continue use of such personnel based upon such ********, or Orthovita may decide to decline continued personnel support from
Cohesion. All ******** to Cohesion under this Article 4 shall be ******** by Orthovita within ******** days after receipt of ******** from Cohesion. 
  

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 Article 5. 
 Joint Committees 
  
 5.1
Within thirty (30) days after the Effective Date, Cohesion and Orthovita shall form three (3) committees – the “Joint Sales and Marketing Committee,” the “Joint Clinical Development Committee,” and the “Joint Commercial
Operations Committee” – and each Party shall designate its program director on each committee (“Program Director”). Each committee shall consist of up to two (2) representatives from each Party, one of which shall be each
Party’s Program Director for that committee, for a total of up to four (4) members per committee. Cohesion and Orthovita shall each retain the right to change its representative(s) to each committee, including its Program Director, from time to
time, upon written notice to the other Party, or to appoint one or more substitutes to serve in the place of an absent member(s). The Program Directors shall serve as co-chairs of their respective committees (each a “Co-Chair”). The
committee representatives of Cohesion and Orthovita shall be employees that agree to be bound by the terms of confidentiality and other pertinent provisions of this Agreement. Each committee member, including the Program Directors, shall have
expertise in a relevant discipline, such as business development, research and development, clinical and/or regulatory affairs, sales or marketing. 
  
 5.2 The Joint Sales and Marketing Committee’s responsibilities shall include the following functions: 
  

	 	(a)	within ninety (90) days before the end of each Calendar Year (beginning with Calendar Year 2004) during the Term, prepare an annual budget and Product sales targets and forecasts
for the next Calendar Year; 

  

	 	(b)	each calendar quarter, provide a non-binding, twelve (12)-month rolling Product purchase forecast to Cohesion in accordance with Section 6.10; 

  

	 	(c)	review and set (if necessary) Minimum Sales amounts, royalty rates and/or royalty percentage break points pursuant to Section 6.6; 

  

	 	(d)	determine adjustments (if appropriate) to Sample amounts and costs in accordance with Section 6.14; 

  

	 	(e)	determine and approve any additional Product marketing activities; 

  

	 	(f)	review and approve all Product and Accessories packaging, Product and Accessories positioning and Product and Accessories branding or rebranding (including Trademark usage in
accordance with Section 9.2); 

  

	 	(g)	determine and approve any relaunch of CoStasis Products in a different dosage form or different dosage size in accordance with Section 6.5; and 

  

	 	(h)	determine if the definition of Net Sales should be revised in accordance with Section 6.6. 

  

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 5.3 The Joint Clinical Development Committee’s responsibilities shall include the following
functions: 
  

	 	(a)	provide timely notice to the other Party’s representatives of any scheduled meetings or discussions with clinical specialists regarding then-current Product and Accessories and
market development opportunities and future Product and Accessories development opportunities including Future Indications, so that the other Party shall have an opportunity to participate in such meetings or discussions; 

 

	 	(b)	review, design and approve additional animal or clinical trials of Products and Accessories in selected Future Indications to obtain Regulatory Approval for such Future Indications,
and develop and implement the related budgets and financial responsibilities of the Parties; 

  

	 	(c)	govern the conduct of any animal or clinical trials of Products and Accessories that are approved in accordance with subsection (b) above, including reporting of results to the
Parties; 

  

	 	(d)	review and approve any Regulatory Filings necessary to obtain Regulatory Approval for Future Indications approved in accordance with subsection (b) above. 

 
 5.4 The Joint Commercial Operations Committee’s responsibilities
shall include the following functions: 
  

	 	(a)	address issues related to Product shelf life, information for use, labeling and marking, packaging procedures and Regulatory Authority clearance letters; 

 

	 	(b)	review quality and regulatory information and documentation; 

  

	 	(c)	review and address issues related to technical specifications of the Product; 

  

	 	(d)	oversee transfer of responsibilities, specifications and purchasing information for securing any third-party supply of Accessories in accordance with Section 6.4;

  

	 	(e)	approve a proposed third party manufacturer, oversee transfer of third-party manufacturing and any oversight and management responsibilities for the manufacture of Product, in
accordance with Section 6.15 or 6.16, or as may be required pursuant to Section 8.6; 

  

	 	(f)	develop and implement a customer service transfer plan and related timelines; and 

  

	 	(g)	address inventory transfer and storage issues. 

  

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 5.5 Each committee shall hold meetings at such times as it elects to do so, but in no event shall such
meetings be held less frequently than once every six (6) months. Meetings of a committee may be held in person at such locations as the Parties may agree, by teleconference or by videoconference. Other employees of each Party involved in the
development or commercialization of a Product may attend meetings as nonvoting participants, and, with the consent of each Party, consultants, representatives, or advisors involved in the development or commercialization of a Product may attend
meetings as nonvoting observers; provided that such third party representatives are under obligations of confidentiality and non-use applicable to the Confidential Information of each Party and that are at least as stringent as those set forth in
this Agreement. Each Party shall be responsible for all of its own expenses of participating in a committee. 
  
 5.6 All decisions of each committee shall be made by a consensus of the members of the committee. However, in the event that the members of a committee
are unable to reach consensus on a particular issue, then the Co-Chairs shall attempt to decide such issue. If the Co-Chairs are unable to reach consensus, then prior to submitting the dispute to arbitration pursuant to Article 18, the matter shall
be referred to Cohesion’s CFO and to Orthovita’s CFO. The CFOs to whom any dispute is submitted shall attempt to resolve the dispute through good faith negotiations over a reasonable period, not to exceed fifteen (15) business days in the
aggregate unless otherwise agreed upon by the CFOs. Such fifteen (15) business day period shall be deemed to commence on the date the dispute was submitted to the CFOs. All negotiations pursuant to this Section 5.6 shall be confidential and shall be
treated as compromise and settlement negotiations for purposes of applicable rules of evidence. 
  
 5.7 ******** 
  
 5.8 If Cohesion, either itself or with an Affiliate or third party, desires to promote, market, sell and/or distribute a Competitive Product in the
Territory, Cohesion shall notify Orthovita in writing of its intention to promote, market, sell and/or distribute such Competitive Product. Orthovita shall have ******** days from the date Cohesion notifies Orthovita of such intention to
notify Cohesion of Orthovita’s desire to market, sell and/or distribute such Competitive Product and to negotiate in good faith an agreement relating to the marketing, selling and distributing of such Competitive Product. If after such
******** day period, the Parties have not executed such an agreement, Cohesion shall ********. 
  
 Article 6. 
 Supply of Products by Cohesion 
  
 6.1 Subject to the terms and conditions of this Agreement, Cohesion shall
sell to Orthovita (a) the CoStasis Products as set forth in Exhibit F at the CoStasis Price and (b) the CellPaker Products as set forth in Exhibit F at the CellPaker Price. Unless otherwise expressly stated herein, all payments to
Cohesion pursuant to this Article 6 shall be made within thirty (30) days after the date of Orthovita’s receipt of an invoice from Cohesion or its designee. 
  
 6.2 In addition to the CoStasis Price, Orthovita shall pay to Cohesion royalties as a percentage of total Net Sales for each
Calendar Year on a quarterly basis in each of North America, the European Union and the ROW (as applicable), as set forth in Exhibit E. All such 

  

 12 

 
royalty payments shall be made within thirty (30) days following the end of the calendar quarter for which such royalty payment is due and shall be
accompanied by the report set forth in Section 6.3. Net Sales shall be determined for each Calendar Year of the Term and for each of North America, the European Union and the ROW (as applicable), and Net Sales made in one Calendar Year shall not
count toward Net Sales in any other Calendar Year. If the Joint Sales and Marketing Committee approves a relaunch of CoStasis Products such that the average sales price per unit is lower than ********, these royalty rates may be adjusted
pursuant to the procedure set forth in Section 6.6. 
  
 6.3
Orthovita shall send to Cohesion quarterly sales reports which set forth the number of units and sizes of each CoStasis Product and CellPaker Product sold, the Net Sales in each of North America, the European Union and the ROW (as applicable), the
number of units of Samples distributed and remaining inventory of CoStasis Products and CellPaker Products. Cohesion shall have the right upon reasonable advance written notice to have Orthovita’s books, records and accounts examined during
normal business hours, at Cohesion’s expense, by a qualified independent certified public accountant nominated by Cohesion and reasonably acceptable to Orthovita for the sole purpose of verifying the accuracy of Orthovita’s accounting
reports and payments made or to be made pursuant to this Agreement. Such audits may not be performed by Cohesion more than once per Calendar Year, and Cohesion shall not be permitted to audit the same period of time more than once; provided,
however, that if such an audit reveals that Orthovita is not in compliance with this Section 6.3, then Cohesion shall be entitled to audit Orthovita’s books, records and accounts at reasonable intervals until such time as Orthovita is in
compliance with this Section 6.3 for an entire Calendar Year, including re-audit of books, records and accounts for the same period of time for which an audit was previously conducted by Cohesion. Such accountant shall be instructed not to reveal to
Cohesion the details of its review, except for (a) such information as is required to be disclosed under this Agreement and (b) such information presented in a summary fashion as is necessary to report the accountant’s conclusions to Cohesion,
and all such information shall be deemed Confidential Information of Orthovita. If the accountant makes a determination of underpayment by Orthovita, Orthovita shall remit to Cohesion, within thirty (30) days of receiving notice from Cohesion, any
underreported percentage of Net Sales amounts or other amounts due to Cohesion, together with interest from the original due date for payment, as provided in Section 6.19. ********. 
  
 6.4 Within thirty (30) days after the Effective Date, and subject to
satisfactory inspection by Orthovita representatives, which shall not be unreasonably withheld, Orthovita shall pay to Cohesion ******** to purchase Cohesion’s existing inventory of Accessories, as listed in Exhibit B. Within
ninety (90) days after receipt of such payment, Cohesion shall deliver to Orthovita such Accessories in accordance with instructions provided by Orthovita and with Sections 6.11 and 6.12. With regard to any additional supply of Accessories needed by
Orthovita, Cohesion shall provide Orthovita with Accessory specifications and contact information for third party Accessory suppliers and/or manufacturers previously used by Cohesion to obtain Accessories, as listed in Exhibit B. Orthovita
shall be responsible for negotiating with such suppliers and/or manufacturers, or other suppliers or manufacturers of Orthovita’s choosing, to obtain Accessories. Upon Orthovita’s written request, Cohesion shall provide reasonable
assistance to Orthovita in securing an ongoing supply of Accessories, including making introductions to Accessory suppliers and/or manufacturers previously used by Cohesion and providing specifications for the Accessories. 
  

 13 

 6.5 During Calendar Year 2004, the CoStasis ******** and the CellPaker ******** shall not
be adjusted. Thereafter during the Term, if Cohesion desires to ********, Cohesion shall send written notice to Orthovita of Cohesion’s proposal for ********. Within ten (10) days after Orthovita’s receipt of such notice, the
CFO of Cohesion shall provide to the CFO of Orthovita documentation of the change ******** of the applicable Product in support of such proposal. Within thirty (30) days after Orthovita’s receipt of such notice, the Parties’ CFOs
shall meet to discuss in good faith Cohesion’s proposal and shall finally determine the ******** of the applicable Product that is deemed appropriate by the CFOs. Proposals ******** may also be made by the Joint Sales and
Marketing Committee, if such committee determines that a Product ********, in which case each Party shall promptly notify its CFO of such determination and provide relevant supporting documentation. The CFOs shall meet within forty-five (45)
days following such determination to discuss in good faith the ******** and shall finally determine the ******** of the applicable Product that is deemed appropriate by the CFOs. All adjustments to Price made pursuant to this Section
6.5 shall be made with an objective ********. Notwithstanding anything herein to the contrary, if the CFOs are unable to reach agreement as to an appropriate adjustment, then the Parties shall submit the dispute to arbitration pursuant to
Article 18. 
  
 6.6 If the European Union or the ROW is added to
the Territory pursuant to Section 2.5, ******** for such addition to the Territory shall be reviewed and set by the Joint Sales and Marketing Committee no later than ******** after addition of the European Union or the ROW (as
applicable) is added to the Territory. For the avoidance of doubt, North America, the European Union and the ROW shall ********. Any setting of the ******** shall consider ******** and such other factors as the Joint Sales and
Marketing Committee may deem relevant. The Joint Sales and Marketing Committee shall also consider whether the definition of Net Sales with respect to the European Union or the ROW should be revised, such that the sale or transfer of Products
between Orthovita (or an Affiliate of Orthovita) and an Affiliate, independent subdistributor or other agent of Orthovita for resale by the receiving entity in the European Union or ROW, as applicable, should be considered a sale for the purpose of
calculating Net Sales, with the resale by such receiving entity to a third party not considered a sale for such purpose. If the Joint Sales and Marketing Committee is unable to reach agreement on a setting or adjustment of the ********, or on
a revision to the definition of ********, then the dispute shall be referred to the CFOs in accordance with Section 5.6. Any adjustment to the ******** approved by the Joint Sales and Marketing Committee or the CFOs shall be attached
to ******** as an addendum. ********. Any revision of the definition of ******** shall be set forth in an amendment to this Agreement. 
  
 6.7 As consideration for its appointment as an exclusive sales distributor of CoStasis Products, Orthovita agrees to achieve Minimum Sales, during each
Calendar Year of the Term, commencing with Calendar Year ********. If Orthovita fails to meet the Minimum Sales requirement in Calendar Year ******** or any subsequent Calendar Year during the Term (including any extensions to the
Term), then Cohesion, within ******** after the end of the applicable Calendar Year, may ********. 
  
 6.8 Orthovita shall order Products by submitting a written purchase order to Cohesion describing the type and quantity of the Products to be purchased
(“Purchase Order”). All Purchase Orders are subject to acceptance by Cohesion within five (5) business days of receipt of 

  

 14 

 
the Purchase Order by Cohesion from Orthovita. If Cohesion accepts the Purchase Order, Cohesion will invoice Orthovita upon shipment of the Products. Unless
otherwise agreed, Orthovita shall pay all invoices in full within thirty (30) days after the date of receipt of the invoice which date shall not be earlier than the date on which Orthovita receives shipment of Product. All sales and payments shall
be made, and all orders shall be accepted, in the State of California. 
  
 6.9 Cohesion shall not be obligated to ship Products to Orthovita at any time when payment of an amount owed by Orthovita is overdue or when Orthovita is otherwise in breach of this Agreement. 
  
 6.10 All shipments shall be initiated by an accepted Purchase Order. Product
shipment dates will be specified in the Purchase Order. These dates shall not be scheduled prior to ninety (90) days after the date the Purchase Order is received, without the mutual consent of the Parties. Purchase Orders will be non-cancellable.
The Joint Sales and Marketing Committee will determine, on a quarterly basis, a non-binding, twelve (12) month rolling Product purchase forecast so that Cohesion may incorporate said forecasts into its planning system. The triggering document for
production activities is, however, an accepted Purchase Order, as stated above. Variations in ordered Product quantities of ******** above the last quarterly rolling forecast shall be discussed between the Parties, and Cohesion will use its
commercially reasonable efforts to maintain delivery dates requested by Orthovita. 
  
 6.11 All shipments of Products and Accessories to Orthovita will be packaged in accordance with Cohesion’s standard packaging materials and packaging procedures, or in accordance with such packaging materials as
determined by the Joint Sales and Marketing Committee and packaging procedures as determined by the Joint Commercial Operations Committee, which conform to Product specifications and regulatory requirements, and shipped per Cohesion’s
then-current distribution practices together with Cohesion’s certificate of compliance. All Prices are F.O.B., ******** the applicable Product on Cohesion’s behalf. Ownership of and title to Products and Accessories and all risks of
loss with respect thereto shall pass to Orthovita upon delivery of such Products and Accessories by Cohesion to ******** the designated delivery point. All freight, insurance and other shipping expenses, as well as any special packaging
expense, shall be paid by ********. ******** shall also bear all applicable taxes, duties and similar charges that may be assessed against the Product or the Accessories upon delivery. Deliveries of Products shall be made by Cohesion
under normal trade conditions in the usual and customary manner being utilized by Cohesion at the time and location of the particular delivery. 
  
 6.12 Orthovita shall be required to inspect all Products and Accessories within ten (10) business days of delivery of Product and its respective
certificate of compliance. Any Product or Accessory not properly rejected within ten (10) business days of delivery shall be deemed accepted; provided, however, in the case of Product with defects not readily discoverable within the time period
specified in this Section 6.12, Orthovita shall notify Cohesion of any such defects discovered by Orthovita promptly following discovery thereof. Credits to Orthovita for Products and Accessories that do not conform to the applicable Product or
Accessory specification as of the time of transfer of ownership to Orthovita and that are rejected within the ten (10) day time period (or such later time for not readily discoverable defects) shall include importation and 

  

 15 

 
shipment expenses and will be calculated by Cohesion based on the original Price of the Product returned or, with respect to Accessories that were obtained
by Orthovita from Cohesion pursuant to Section 6.4, a pro rata amount of the payment made for such Accessories under Section 6.4, whether identified by lot number or another method. Orthovita may, at its option, request a ******** to obtain
replacement Products or Accessories. Orthovita’s obligations with respect to such defective Products and Accessories and their return to Cohesion shall be in accordance with the Uniform Commercial Code, Article 2. After Products or Accessories
are accepted or are deemed accepted, they shall not be returned without the written consent of Cohesion. 
  
 6.13 Under no circumstances will either Party knowingly make any false or misleading statements concerning a Product or Accessory, or knowingly adulterate
or misbrand a Product or Accessory for sale or distribution. 
  
 6.14 As set forth in Exhibit D, Cohesion shall provide to Orthovita Product samples (“Samples”) at a ********. Any additional annual requirements for Samples by Orthovita must be determined and approved by the Joint
Sales and Marketing Committee. These units of Product shall be labeled “Sample” by Orthovita and may not be sold. All Samples will be used for sales force demonstrations, trade shows, training and other activities in support of
Orthovita’s promotion and marketing of the Products. Orthovita shall submit to Cohesion a Purchase Order for any such Samples. 
  
 6.15 The Parties contemplate that during the Term, Cohesion will transfer manufacturing of one or more CoStasis Products to one or more third party
manufacturers as set forth in this Section 6.15. 
  

	 	(a)	Cohesion may elect, in its sole discretion, to transfer manufacturing of one or more CoStasis Products to one or more third party manufacturers prior to December 31, 2006. If
Cohesion elects to so transfer CoStasis Product(s) manufacturing, Cohesion shall provide notice to Orthovita of such election and the identity of the proposed third party manufacturer(s), which proposed third party manufacturer(s) shall be
reasonably acceptable to the Joint Commercial Operations Committee. Orthovita and Cohesion shall ******** associated with such transfer of manufacturing. Within thirty (30) days after transfer of CoStasis Product(s) manufacturing is
completed, Cohesion shall provide Orthovita with notice of such completion. Thereafter, the Parties shall periodically discuss whether Orthovita will assume oversight and management of such third party manufacturer(s); provided, however, that the
Parties contemplate that Orthovita shall assume such oversight no later than January 1, 2007. If the Parties mutually determine that Orthovita shall assume oversight and management of such third party manufacturer(s) prior to January 1, 2007,
transfer of oversight and management shall be completed within one hundred twenty (120) days after such determination; 

  

	 	(b)	 If Orthovita has not assumed oversight and manufacturing of CoStasis Products as of January 1, 2007, the Joint Commercial Operations Committee shall promptly meet
and develop a plan to promptly transition 

  

 16 

	 	 
oversight and management of CoStasis Product manufacturing to Orthovita. If Cohesion has not transferred CoStasis Product manufacturing to one or more third
party manufacturers pursuant to Section 6.15(a), then Cohesion shall provide Orthovita with the identity of the proposed third party manufacturer(s), which proposed third party manufacturer(s) shall be reasonably acceptable to the Joint Commercial
Operations Committee. Orthovita and Cohesion shall ******** associated with such transfer of manufacturing. 

  

	 	(c)	With regard to the period of time in which Orthovita is responsible for oversight and management of CoStasis Product manufacturing pursuant to Sections 6.15(a), 6.15(b) or 6.16, (i)
Orthovita’s obligation to pay Cohesion the CoStasis Price shall be suspended during such period of time that Orthovita is responsible for oversight and management of such third party manufacturer(s); (ii) the Parties acknowledge and agree that
the ******** to be determined by mutual agreement of the CFOs with an objective of maintaining the ******** and taking into account such ******** and the additional ******** by Orthovita in connection with oversight and
management of the third party manufacturer(s); and (iii) the Parties shall make all efforts to also transfer to Orthovita oversight and management of the then-current third party CellPaker Products manufacturer, ********. Any agreement with
respect to CellPaker Products pursuant to Section 6.15(iii) shall be set forth in an amendment to this Agreement. 

  
 6.16 During the Term, and provided that Orthovita has not assumed oversight and management of third-party manufacturing pursuant to Section 6.15, if
Cohesion is unable to provide Orthovita with Product, then Cohesion shall promptly provide written notice to Orthovita of its inability to provide such Product. In such event, Orthovita shall have the right to engage a back-up supplier to
manufacture and supply the applicable Product for use in the Field in the Territory and to terminate any Purchase Order, in whole or in part, that Cohesion was unable to fill without liability or charge. Such right shall continue for a period of
********, as provided herein. In such event, this Agreement shall be extended for a period of time equal to the length of time that Cohesion is unable to deliver the applicable Product. In the event that any such inability to deliver a
Product continues for ********, the Parties shall meet and discuss in good faith any and all ******** alternatives, if any, including assumption of oversight and management of manufacturing by Orthovita (subject to Section 6.15(c)),
that would permit the Parties to obtain the benefits of this Agreement. If no such alternatives are identified, then this Agreement shall terminate, without penalty, upon the date that Orthovita sells the last item of Products in its inventory.

  
 6.17 This Section 6.17 shall govern recalls, field alerts,
withdrawals and field corrective actions for a Product arising during the time that Cohesion has responsibility for oversight and management of manufacturing of such Product, whether or not such Product is manufactured by a third party
manufacturer. In the event that Cohesion believes a recall, field alert, Product withdrawal, or field corrective action may be necessary with regard to any Product provided to Orthovita under this Agreement, Cohesion shall immediately notify
Orthovita in 

  

 17 

 
writing. In the event that Orthovita or its Agents believe a recall, field alert, Product withdrawal, or field corrective action may be necessary with regard
to any Product provided by Cohesion under this Agreement, Orthovita shall immediately notify Cohesion in writing. Orthovita shall, and shall ensure that its Agents shall, provide reasonable cooperation and assistance to Cohesion. When necessary,
Cohesion shall report such recall, field alert, Product withdrawal, or field corrective action to the applicable Regulatory Authority. The cost of any such recall, field alert, Product withdrawal, or field corrective action shall be borne by
Cohesion, unless such recall, field alert, Product withdrawal, or field corrective action is caused in material part by Orthovita’s breach of its obligations under this Agreement (including obligations regarding advertising, distribution and
storage of the Products) or applicable laws, or by its willful misconduct; then such cost shall be borne by Orthovita to the extent such recall, field alert, Product withdrawal, or field corrective action was due to such causes. For purposes of this
Section 6.17, the Party bearing the cost of any recall, field alert, Product withdrawal, or field corrective action shall only be required to reimburse the other Party for reasonable, actual and documented out-of-pocket costs incurred by such other
Party for such recall, field alert, Product withdrawal, or field corrective action (including costs of retrieving Product already delivered to customers, costs and expenses such other Party is required to pay for notification, shipping and handling
charges, and all other costs reasonably related to such recall, field alert, Product withdrawal, or field corrective action), and the cost to replace, or the actual replacement of, the Product. 
  
 6.18 This Section 6.18 shall govern recalls, field alerts, withdrawals and
field corrective actions for a Product arising during the time that Orthovita has responsibility for oversight and management of manufacturing of such Product, whether or not such Product is manufactured by a third party manufacturer. In the event
that Cohesion believes a recall, field alert, Product withdrawal, or field corrective action may be necessary with regard to any Product manufactured by or for Orthovita under this Agreement, Cohesion shall immediately notify Orthovita in writing.
In the event that Orthovita or its Agents believe a recall, field alert, Product withdrawal, or field corrective action may be necessary with regard to any Product manufactured by or for Orthovita under this Agreement, Orthovita shall immediately
notify Cohesion in writing. Orthovita shall, and shall ensure that its Agents shall, provide reasonable cooperation and assistance to Cohesion. When necessary, Cohesion shall report such recall, field alert, Product withdrawal, or field corrective
action to the applicable Regulatory Authority. The cost of any such recall, field alert, Product withdrawal or field corrective action shall be borne by Orthovita, unless such recall, field alert Product withdrawal, or field corrective action is
caused in material part by Cohesion’s breach of its obligations under this Agreement or applicable laws, or by its willful misconduct; then such cost shall be borne by Cohesion to the extent such recall, field alert, Product withdrawal, or
field corrective action was due to such causes. Notwithstanding the preceding sentence, if such recall, field alert, Product withdrawal, or field corrective action is triggered by the attributes of such Product, including but not limited to the
********. For purposes of this Section 6.18, the Party bearing the cost of any recall, field alert, Product withdrawal, or field corrective action shall only be required to reimburse the other Party for reasonable, actual and documented
out-of-pocket costs incurred by such other Party for such recall, field alert, Product withdrawal, or field corrective action (including costs of retrieving Product already delivered to customers, costs and expenses such other Party is required to
pay for notification, shipping and handling charges, and all other costs reasonably related to such recall, field alert, Product withdrawal, or field corrective action), and the cost to replace, or the actual replacement of, the Product. 

 

 18 

 6.19 In case of any delay in payment by Orthovita to Cohesion or its designee not occasioned by Force
Majeure, interest on the overdue payment shall accrue at an annual interest rate equal to the lesser of: (a) the prime rate as reported in the Money Rates set forth in The Wall Street Journal, ********, as determined for each month on
the last business day of the previous month, or (b) the maximum amount permitted by law, in either instance assessed from the date that payment was initially due. The foregoing interest shall be due from Orthovita without any special notice, and
shall be in addition to any other remedies that Cohesion may have pursuant to this Agreement. 
  
 Article 7. 
 Representations, Warranties and Indemnification 
  
 7.1 Each Party represents, warrants and covenants that: 
  

	 	(a)	this Agreement has been duly executed and delivered by such Party and constitutes a valid and binding obligation of such Party, enforceable against such Party in accordance with its
terms, except as enforceability may be limited by bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium and other laws relating to or affecting creditors’ rights generally and by general equitable principles;

  

	 	(b)	as of the Effective Date, the execution, delivery and performance of this Agreement have been duly authorized by all necessary action on the part of such Party, its officers and
directors and does not conflict with any agreement, instrument or understanding, oral or written, to which such Party is a party or by which it may be bound, and, to the best of its knowledge, does not violate any material law or regulation of any
court, governmental body or administrative or other agency having authority over it; 

  

	 	(c)	such Party has full power and authority to perform the obligations set forth herein, and that such Party is not subject to any order, decree or injunction by a court of competent
jurisdiction which may prevent or materially delay the consummation of the transactions contemplated by this Agreement; 

  

	 	(d)	such Party is duly organized, validly existing and in good standing under the laws of the jurisdiction where it is organized; and 

  

	 	(e)	such Party is and will remain in material compliance with all applicable federal, state and local laws, regulations and orders as they may apply to this Agreement.

  

	 	(f)	 during the time that such Party has responsibility for oversight and management of manufacturing of a Product, such Product will be packaged and shipped in
accordance with the agreed upon labeling instructions and regulatory requirements, will be free from defects in materials and workmanship, will not be adulterated or misbranded within 

  

 19 

	 	 
the meaning of the Act, is not an article which may not, under the Act, be introduced into interstate commerce, and will be free and clear of all liens and
encumbrances. 

  
 7.2 Orthovita represents,
warrants and covenants that its books, records and accounts pertaining to all its operations under this Agreement are complete and accurate in all material respects, and have been maintained in accordance with sound and generally accepted accounting
principles. 
  
 7.3 Orthovita shall not make any representation or
warranty to a third party with respect to the Products that is more extensive than, or inconsistent with, the limited warranty set forth in this Article 7 or that is inconsistent with the policies or publications of Cohesion relating to the
Products. 
  
 7.4 Except for Cohesion’s obligation to
indemnify Orthovita pursuant to this Article 7, Orthovita’s sole and exclusive remedy under this Agreement for (a) any non-conforming Products or Accessories provided to Orthovita by Cohesion shall be receipt of credits for such non-conforming
Products or Accessories according to Section 6.12; and (b) any shortage of delivery of Product or inability of Cohesion to deliver Product shall be as set forth in Section 6.16. 
  
 7.5 THE LIMITED WARRANTIES CONTAINED IN THIS ARTICLE 7 ARE THE SOLE WARRANTIES GIVEN BY THE PARTIES HEREUNDER AND ARE MADE
EXPRESSLY IN LIEU OF AND EXCLUDE ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OR OTHERWISE, AND ALL OTHER EXPRESS OR IMPLIED REPRESENTATIONS AND WARRANTIES PROVIDED BY COMMON LAW, STATUTE OR OTHERWISE
ARE HEREBY DISCLAIMED BY BOTH PARTIES. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR INDIRECT, PUNITIVE, SPECIAL, CONSEQUENTIAL OR EXEMPLARY DAMAGES OF ANY KIND, INCLUDING WITHOUT LIMITATION, LOSS OF PROFITS OR OTHER COMMERCIAL OR
ECONOMIC LOSS, AND LOSS OR INTERRUPTION OF BUSINESS. THE FOREGOING PROVISION SHALL NOT BE CONSTRUED TO LIMIT A PARTY’S INDEMNIFICATION OBLIGATION UNDER THIS AGREEMENT FOR THIRD PARTY CLAIMS WHICH MAY INCLUDE CONSEQUENTIAL, PUNITIVE OR OTHER
TYPES OF DAMAGES. 
  
 7.6 Cohesion shall defend, indemnify and
hold harmless Orthovita and its Affiliates and their employees, officers, agents and directors against any loss, damages, action, suit, claim, demand, liability, expense, bodily injury, death, or property damage (a “Loss”) that may be
brought, instituted or arise against or be incurred by such persons to the extent such Loss is based on or arises out of: 
  

	 	(a)	a breach by Cohesion of any of its covenants, representations or warranties set forth in this Agreement; 

  

	 	(b)	 during the time that Cohesion has responsibility for oversight and management of manufacturing of a Product, whether or not such Product 

  

 20 

	 	 
is manufactured by a third party manufacturer, the failure of Cohesion to ship Product that meets the Product specifications or that is manufactured in
compliance with current Good Manufacturing Practices or other applicable laws and regulations; 

  

	 	(c)	any negligence, recklessness or wrongful intentional acts or omissions of Cohesion or its representatives, directors, officers, employees and agents, in connection with the
activities contemplated under this Agreement; 

  

	 	(d)	during the time that Cohesion has responsibility for oversight and management of manufacturing of a Product, whether or not such Product is manufactured by a third party
manufacturer, the attributes of such Product, including but not limited to the immunogenicity, toxicity, teratogenicity, carcinogenicity, or inherent risk of the use or administration of such Product; 

  

	 	(e)	improper business practices of Cohesion, as determined by a court or governmental authority having jurisdiction over Cohesion; and 

  

	 	(f)	provided that Orthovita shall comply with reasonable instructions from Cohesion regarding the promotion, marketing, distribution and sales of Products, any alleged infringement by
the Products of patents or other intellectual property rights owned or controlled by a third party; 

  
 provided in each case, however, that the foregoing indemnifications in this Section 7.6 shall not apply to any Loss to the extent such Loss is caused by
the negligence, recklessness or wrongful intentional acts or omissions of Orthovita or its Affiliates. 
  
 7.7 Orthovita shall defend, indemnify and hold harmless Cohesion and its Affiliates and their employees, officers, agents and directors against any Loss
that may be brought, instituted or arise against or be incurred by such persons to the extent such Loss is based on or arises out of: 
  

	 	(a)	a breach by Orthovita of any of its covenants, representations or warranties set forth in this Agreement; 

  

	 	(b)	during the time that Orthovita has responsibility for oversight and management of manufacturing of a Product, whether or not such Product is manufactured by a third party
manufacturer, the failure of Orthovita to promote, market, distribute or sell Product that meets the Product specifications or that is manufactured in compliance with current Good Manufacturing Practices or other applicable laws and regulations;

  

	 	(c)	any negligence, recklessness or wrongful intentional acts or omissions of Orthovita or its representatives, directors, officers, employees and agents, in connection with the
activities contemplated under this Agreement; 

  

	 	(d)	improper business practices of Orthovita, as determined by a court or governmental authority having jurisdiction over Orthovita; and 

  

 21 

	 	(e)	Orthovita’s advertising, promoting, marketing, distributing and selling activities of Product that are not in accordance with law or regulation; 

  
 provided in each case, however, that the foregoing indemnifications in this
Section 7.7 shall not apply to any Loss to the extent such Loss is caused by the negligence, recklessness or wrongful intentional acts or omissions of Cohesion or its Affiliates. 
  
 7.8 During the time that Orthovita has responsibility for oversight and management of manufacturing of a Product, and such
manufacturing is being conducted by a third party manufacturer, Cohesion shall defend, indemnify and hold harmless Orthovita and its Affiliates and their employees, officers, agents and directors, and Orthovita shall defend, indemnify and hold
harmless Cohesion and its Affiliates and their employees, officers, agents and directors, against any Loss that may be brought, instituted or arise against or be incurred by such persons ********; provided, however, that such ********
shall only apply to the extent required to result in the Parties ******** for such Loss, and ********; and provided further that the foregoing ******** in this Section 7.8 shall not apply to any Loss to the extent such Loss is
caused by the negligence, recklessness or wrongful intentional acts or omissions of the Indemnified Party. 
  
 7.9 In the event that Orthovita begins to ********, the Parties shall promptly meet and discuss ********. The Parties contemplate that in
such event, Orthovita shall be required to defend, indemnify and hold harmless Cohesion and its Affiliates and their employees, officers, agents and directors, against any such Loss that may be brought, instituted or arise against or be incurred by
such persons, except to the extent such Loss is caused by the negligence, recklessness or wrongful intentional acts or omissions of Cohesion or its Affiliates. 
  

7.10 If indemnification is sought as a result of any third party claim, suit or demand, the Indemnified Party shall: (a) shall give written notice to
the Indemnifying Party within fifteen (15) days after receipt by the Indemnified Party of such claim, suit or demand; provided, however, that the failure to give notice within such time period shall not relieve the Indemnifying Party of its
obligation to indemnify, unless it shall be materially prejudiced by such failure; (b) permit the Indemnifying Party to assume direction and control of the defense of claims resulting therefrom; and (c) at its own cost and expense, cooperate fully
as requested by the Indemnifying Party in the defense of the claims. No offer of settlement, settlement or compromise by the Indemnifying Party shall be binding on an Indemnified Party without its prior written consent (which consent shall not be
unreasonably withheld or delayed), unless such settlement fully releases the Indemnified Party without any liability, loss, cost or obligation to such Indemnified Party. No offer of settlement, settlement or compromise by the Indemnified Party shall
be binding on an Indemnifying Party without its prior written consent (which consent shall not be unreasonably withheld or delayed). Notwithstanding the foregoing, if indemnification is sought by Orthovita as a result of any third party claim, suit
or demand for which Cohesion is obligated to indemnify Orthovita pursuant to Section 7.6(d), Cohesion shall have the absolute right to control and settle such claim, suit or demand without consent from Orthovita so long as any such settlement fully
releases Orthovita without any liability, loss, cost or obligation to Orthovita. 
  
 7.11 Each Party shall, at its own cost, maintain comprehensive general liability insurance, including broad form contractual liability and product liability coverages, in amounts 

  

 22 

 
and subject to deductibles customary in the pharmaceutical industry and sufficient to cover its obligations under this Agreement but in no event less than
******** in coverage. Each Party shall maintain such insurance during the Term ********. Each Party, upon request, shall provide the other Party with a certificate of insurance as evidence of such coverages, and shall give the other
Party at least thirty (30) days notice of any cancellation, termination or change in such insurance. Such insurance shall (a) be issued by reputable, financially sound companies; (b) provide that the insurance company will endeavor to provide at
least thirty (30) days notice of cancellation, non-renewal or material change of coverage to both Cohesion and Orthovita, but its failure to do so shall impose no penalty or additional obligations under this Agreement; and (c) contain a
********. All of the foregoing liability policies shall be ******** and contain a ******** in favor of the other Party or the other Party’s designee. Nothing in this Section 7.11 regarding insurance coverage amounts shall
be deemed or interpreted as a limitation on the indemnities set forth in this Agreement. 
  
 7.12 Each Party shall each be solely responsible for the safety of its own employees, agents, Affiliates or independent contractors with respect to its performance under this Agreement, and each shall hold the other
Party harmless with regard to any liability for damages or personal injuries resulting from acts of its respective employees, agents, Affiliates or independent contractors. 
  
 Article 8. 
 Term and Termination 
  
 8.1 The term of this
Agreement shall be for a period commencing on the Effective Date and ending on December 31, 2009, unless extended pursuant to Section 2.5 or 6.16 or this Section 8.1 (the “Term”). At least six (6) months prior to expiration of the
then-current Term, the Parties will meet to discuss in good faith whether the then-current Term shall be extended by mutual agreement. However, this Agreement shall automatically terminate at the end of the then-current Term unless the Parties
mutually agree in writing to extend such Term prior to the expiration date. Notwithstanding the foregoing, this Agreement may be terminated earlier in accordance with the provisions of this Article 8 or as expressly provided elsewhere in this
Agreement. 
  
 8.2 Cohesion shall have the absolute right to
terminate this Agreement upon thirty (30) days prior written notice to Orthovita if Orthovita fails to perform or breaches, in any material respect, any material terms or provisions of this Agreement; provided, however, that such termination shall
become effective only if Orthovita shall fail to remedy or cure the breach within such thirty (30) day period, or initiate a remedy or cure within such period if it is not practicable to complete the cure in such period. Without limiting the events
which shall be deemed to constitute a breach or material breach of this Agreement by Orthovita, Orthovita understands and agrees that it shall be in material breach of this Agreement, and Cohesion shall have the right to terminate (subject to the
applicable cure period) this Agreement under this Section 8.2, if Orthovita fails or refuses to pay to Cohesion any sum when due. 
  
 8.3 Each Party shall have the absolute right to terminate this Agreement in the event the other Party shall become insolvent, or if there is instituted by
or against the other Party procedures in bankruptcy that are not dismissed within sixty (60) days, or under insolvency laws 

  

 23 

 
or for reorganization, receivership or dissolution, or if the other Party loses any franchise or license to operate its business as presently conducted in
any part of the Territory. 
  
 8.4 ******** 
  
 8.5 ******** 
  
 8.6 Upon expiration or termination of this Agreement for any reason,
Orthovita and any successor or Acquiring Party of Orthovita, shall (a) have no further right to promote, market, distribute or sell Product, except as set forth in Section 8.7, (b) shall make Product customer information reasonably available to
Cohesion, (c) at the end of sales period set forth in Section 8.7, transfer to Cohesion advertising or promotional materials and training materials that were used in conjunction with the Products prior to expiration or termination, (d) if Orthovita
has assumed oversight and management of third party Product manufacturers, provide reasonable assistance to Cohesion to allow Cohesion to take over such oversight and control ********. 
  
 8.7 During the six (6)-month period following expiration or termination of
this Agreement, any inventory of Products held by Orthovita at such expiration or termination may be sold by Orthovita to customers in the Territory in the ordinary course; provided, however, that for the period required to liquidate such inventory,
all of the provisions contained herein governing Orthovita’s performance obligations and Cohesion’s rights shall remain in effect. In order to accelerate the liquidation of any such inventory, Cohesion shall have the option, but not the
obligation, to purchase all or any part of such remaining inventory at the price at which the inventory was originally purchased by Orthovita from Cohesion or a third party manufacturer. 
  
 8.8 The termination of this Agreement shall not impair the rights or obligations of either Party hereto which shall have
accrued hereunder prior to such termination. The provisions of Article 1, to the extent definitions are embodied in the following listed Articles and Sections of this Agreement; Sections 7.5-7.12, 8.6-8.8, 9.4 and 9.5; and Articles 10-23, and the
rights and obligations of the Parties thereunder shall survive the expiration or termination of this Agreement. 
  
 Article 9. 
 Trademarks 
  
 9.1 All Trademarks used by Cohesion in connection with the Products, and all
patents, technology and other intellectual property and Know-how relating to the Products, and the goodwill associated with the Products and the Trademarks of Cohesion, are and shall remain the sole and exclusive property of Cohesion and/or its
Affiliates. Cohesion hereby grants Orthovita permission to use the Trademarks of Cohesion and to use its own Trademarks for the Product for the limited purpose of performing its obligations under this Agreement. For purposes of this Article 9, the
trademark ANGIOTECHKNOWLEDGYTM shall be deemed to
be a Trademark of Cohesion. 
  
 9.2 Orthovita and Cohesion shall
********. Cohesion’s Trademarks shall appear on all Product packaging, labels, and inserts and other materials which Orthovita uses for the marketing of the Products. Cohesion retains the right to review and approve all intended uses of
the 

  

 24 

 
Trademarks of Cohesion in any packaging, inserts, labels, or promotional or other materials relating to the Products prior to Orthovita’s actual use
thereof. To the extent permitted by applicable law, all jointly branded Product promotional materials and labeling affixed to the jointly branded Products shall contain (a) Trademarks, corporate name and logo of Cohesion (and or its Affiliates) as
may be provided by Cohesion to Orthovita from time to time, (b) trademarks, corporate name and logo of Orthovita as may be provided by Orthovita to Cohesion from time to time, and (c) the trademark ANGIOTECHKNOWLEDGYTM, in positions of equivalent prominence and emphasis. 
  
 9.3 Orthovita agrees to use the Trademarks of Cohesion in full compliance
with the rules prescribed from time to time by Cohesion. The Trademarks of Cohesion shall always be used together with the symbol “®” or the symbol “TM”. Orthovita may not use any Trademark of Cohesion as part of any corporate name or with any prefix, suffix or other modifying word, term, design
or symbol, except as approved by the Joint Sales and Marketing Committee. In addition, Orthovita may not use any Trademark of Cohesion in connection with the sale of any unauthorized product or service or in any other manner not explicitly
authorized in writing by Cohesion. 
  
 9.4 In the event of any
infringement of, or threatened or presumed infringement of, or challenge to Orthovita’s use of, any Trademark of Cohesion, Orthovita is obligated to notify Cohesion immediately. Cohesion shall investigate any alleged violation and, if
necessary, shall take the appropriate legal action to resolve the issue and to prevent other competitors from infringing on said intellectual property rights within the Territory. Cohesion shall have sole and absolute discretion to take such action
as it deems appropriate. 
  
 9.5 In the event of the termination
of this Agreement for any reason, Orthovita’s right to use the Trademarks of Cohesion shall cease at such time as Orthovita’s inventory of Products has been sold as set forth in Section 8.7. Thereafter, Orthovita shall, as soon as it is
reasonably possible, remove all Trademarks of Cohesion which appear on or about the premises of the office(s) of Orthovita and any of the advertising of Orthovita used in connection with the Products. 
  
 9.6 In the event of a breach or threatened breach by Orthovita of the
provisions of this Article 9, Cohesion shall be entitled to an injunction or injunctions to prevent such breaches. Nothing herein shall be construed as prohibiting Cohesion from pursuing other remedies available to it for such breach or threatened
breach of this Article 9, including the recovery of damages from Orthovita. 
  
 9.7 Should for some reason a Trademark of Cohesion be prevented from being used in any part or whole of the Territory, the Parties shall consult as to a suitable other trademark (which trademark shall be deemed a
Trademark for purposes of this Agreement) owned by Cohesion or to be transferred from Orthovita to Cohesion for use during the Term in connection with the marketing, promotion, distribution and sale of the Products; it being agreed, however, that
Cohesion retains the right to ultimately determine what such alternative Trademark shall be used, provided it is not confusingly similar to a trademark owned by Orthovita in the Territory. 
  

 25 

 9.8 Nothing contained in this Agreement shall be construed as giving Orthovita the right to use a
Trademark of Cohesion outside the Territory or for any other product than the Products. 
  
 Article 10. 
 Confidential Information 
  
 10.1 All disclosures of Confidential Information related to the subject
matter of this Agreement, whether made after the Effective Date or prior to the Effective Date under the Mutual Confidentiality Agreement between the Parties, dated February 9, 2004, shall be governed by this Agreement. Both Parties recognize and
acknowledge that each will have access to confidential information and trade secrets, including Know-how, of the other and other entities doing business with each Party relating to research, development, manufacturing, marketing, financial and other
business-related activities (“Confidential Information”). Such Confidential Information constitutes valuable, special and unique property of each Party and/or other entities doing business with each Party. Other than as is necessary to
perform the terms of this Agreement, neither Party shall, during and after the Term, make any use of such Confidential Information, or disclose any of such Confidential Information to any person or firm, corporation, association or other entity, for
any reason or purpose whatsoever, except as specifically allowed in writing by an authorized representative of the other. In the event of a breach or threatened breach by either Party of the provisions of this Article 10, each Party shall be
entitled to an injunction restraining the other from disclosing and/or using, in whole or in part, such Confidential Information. Nothing herein shall be construed as prohibiting either Party from pursuing other remedies available to it for such
breach or threatened breach of this Article 10, including the recovery of damages from the other. The above does not apply to information or material that (i) was known to the public or generally available to the public prior to the date it was
received by either Party; (ii) is rightfully acquired by the receiving Party from a third party that is not under a confidentiality restriction on disclosure or use; (iii) was already known to the receiving Party prior to receipt from the disclosing
Party as evidenced by written records; (iv) is required to be disclosed by law or court order or in periodic reports to the Securities and Exchange Commission or to any Regulatory Authority, provided that notice of the disclosure requirement is
promptly delivered to the disclosing Party in order to provide the disclosing Party with an opportunity to challenge or limit the disclosure obligations. 
  
 10.2 Except as permitted pursuant to Section 10.1, neither Party shall disclose any of the terms of this Agreement without the prior written consent of
the other Party. 
  
 Article 11. 
 Force Majeure 
  
 11.1 Neither Orthovita nor Cohesion shall have any liability hereunder if either is prevented from performing any of its obligations hereunder by reason
of any factor beyond its control, including, without limitation, fire, explosion, accident, riot, flood, drought, storm, earthquake, lightning, frost, civil commotion, sabotage, vandalism, smoke, hail, embargo, act of God or the public enemy, other
casualty, strike or lockout, or interference, prohibition or restriction imposed by any government or any officer or agent thereof (“Force Majeure”), nor shall Orthovita’s or Cohesion’s obligations, except as may be necessary, be
suspended during the period of such Force Majeure, nor shall either Party’s obligations be cancelled with respect to 

  

 26 

 
such Products as would have been sold hereunder but for such suspension. Such affected Party shall give to the other Party prompt notice of any such Force
Majeure, the date of commencement thereof and its probable duration and shall give a further notice in like manner upon the termination thereof. Each Party hereto shall endeavor with due diligence to resume compliance with its obligations hereunder
at the earliest date and shall do all that it reasonably can to overcome or mitigate the effects of any such Force Majeure upon both Party’s obligations under this Agreement. Should the Force Majeure continue for more than six (6) months, then
the other Party shall have the right to cancel this Agreement and the Parties shall seek an equitable agreement on the Parties’ reward of interests. 
  
 11.2 The Parties agree that any obligation to pay money is never excused by Force Majeure. 
  
 Article 12. 
 Amendment 
  
 12.1 No oral explanation or oral
information by either Party hereto shall alter the meaning or interpretation of this Agreement. No modification, alteration, addition or change in the terms hereof shall be binding on either Party hereto unless reduced to writing and executed by the
duly authorized representative of each Party. 
  
 Article 13.

 Entire Agreement 
  
 13.1 Except for the Mutual Confidentiality Agreement between the Parties, dated February 9, 2004, which shall remain in full force and effect and shall
govern disclosures of confidential information and other matters unrelated to the subject matter of this Agreement, this Agreement represents the entire agreement between the Parties and shall supersede any and all prior agreements, understandings,
arrangements, promises, representations, warranties, and/or any contracts of any form or nature whatsoever, whether oral or in writing and whether explicit or implicit, which may have been entered into prior to the execution hereof between the
Parties, their officers, directors or employees as to the subject matter hereof. Neither of the Parties hereto has relied upon any oral representation or oral information given to it by any representative of the other Party. 
  
 13.2 Should any provision of this Agreement be rendered invalid or
unenforceable, it shall not affect the validity or enforceability of the remainder of this Agreement. 
  
 Article 14. 
 Assignment 
  
 14.1 Neither this Agreement nor any of the rights or obligations of either
Party hereunder shall be transferred or assigned by such Party without the prior written consent of the other Party, executed by a duly authorized officer of such Other Party. Notwithstanding the foregoing, (a) Cohesion may assign this Agreement,
without the consent of Orthovita, (i) in part or in whole to any of its Affiliates, if Cohesion remains liable for the full performance of its Affiliates’ obligations hereunder, and (ii) in connection with the transfer or sale of all or
substantially all of its assets or business to which this Agreement relates, or in the event of its 

  

 27 

 
merger or consolidation with, acquisition by, or sale to another company (including an Affiliate of Cohesion); and (b) subject to Orthovita’s compliance
with Sections 8.4 and 8.5, Orthovita may assign this Agreement, without the consent of Cohesion, in connection with the transfer or sale of all or substantially all of its assets or business to which this Agreement relates, or in the event of its
merger or consolidation with, acquisition by, or sale to another company. 
  
 Article 15. 
 Governing Law 
  
 15.1 It is expressly agreed that the validity, performance and construction of this Agreement shall be governed by the laws
and jurisdiction of the state of California. 
  
 Article 16.

 Notices 
  
 16.1 Any notice required or permitted to be given under this Agreement by one of the Parties to the other shall be given for all purposes by delivery in
person, registered air-mail, commercial courier services, postage prepaid, return receipt requested, or by fax addressed to: 
  

	 	(a)	Cohesion at: 2500 Faber Place, Palo Alto, CA 94303; Attention: President, or at such other address as Cohesion shall have theretofore furnished in writing to Orthovita (Fax No.
(650) 320-5511). 

  
 With a copy
to: 
  
 Angiotech Pharmaceuticals, Inc. at: 1618 Station Street,
Vancouver, BC Canada V6A 1BC; Attention: General Counsel, or at such other address as Cohesion shall have theretofore furnished in writing to Orthovita (Fax No. (604) 221-2330) 
  

	 	(b)	Orthovita at: 45 Great Valley Parkway, Malvern, PA 19355, Attention: President and CEO, or at such other address as Orthovita shall have theretofore furnished in writing to Cohesion
(Fax No. (610) 640-2603). 

  
 Article 17.

 Waiver 
  
 17.1 Neither Orthovita’s nor Cohesion’s failure to enforce at any time any of the provisions of this Agreement or any right with respect
thereto, shall be considered a waiver of such provisions or rights or in any way affect the validity of same. Neither Orthovita’s nor Cohesion’s exercise of any of its rights shall preclude or prejudice either Party thereafter from
exercising the same or any other right it may have, irrespective of any previous action by either Party. 
  

 28 

 Article 18. 
 Arbitration 
  
 18.1 Except
as expressly provided otherwise herein, any dispute, controversy or claim arising out of or in relation to or in connection with this Agreement, the operations carried out under this Agreement or the relationship of the Parties created under this
Agreement, shall be exclusively and finally settled by confidential arbitration, and any Party may submit such a dispute, controversy or claim to arbitration. The arbitration proceeding shall be held at the location of the non-instituting Party in
the English language and shall be governed by the rules of the American Arbitration Association (the “AAA”) as amended from time to time. Any procedural rule not determined under the rules of the AAA shall be determined by the laws of
California, other than those laws that would refer the matter to another jurisdiction. 
  
 A single arbitrator shall be appointed by unanimous consent of the Parties. If the Parties cannot reach agreement on an arbitrator within forty-five (45) days of the submission of a notice of arbitration, the
appointing authority for the implementation of such procedure shall be the AAA, who shall appoint an independent arbitrator who does not have any financial or conflicting interest in the dispute, controversy or claim. If the AAA is unable to
appoint, or fails to appoint, an arbitrator within ninety (90) days of being requested to do so, then the arbitration shall be heard by three (3) arbitrators, one selected by each Party within thirty (30) days of being required to do so, and the
third promptly selected by the two arbitrators selected by the Parties. 
  
 The arbitrators shall announce the award and the reasons therefor in writing within six (6) months after the conclusion of the presentation of evidence and oral or written argument, or within such longer period as the Parties may agree upon
in writing. The decision of the arbitrators shall be final and binding upon the Parties. Judgment upon the award rendered may be entered in any court having jurisdiction over the person or the assets of the Party owing the judgment or application
may be made to such court for a judicial acceptance of the award and an order of enforcement, as the case may be. Unless otherwise determined by the arbitrator, each Party involved in the arbitration shall bear the expense of its own counsel,
experts and presentation of proof, and the expense of the arbitrator and the AAA (if any) shall be divided equally among the Parties to the arbitration. 
  
 Article 19. 
 Interpretation

  
 19.1 The headings in this Agreement are inserted for
convenience only and shall not affect its construction. 
  
 19.2
Where appropriate, the terms defined in Article 1 and denoting a singular number only shall include the plural and vice versa. 
  
 19.3 References to any law, regulation, statute or statutory provision includes a reference to the law, regulation, statute or statutory provision as from
time to time amended, extended or re-enacted. 
  
 Article 20.

 Exhibits 
  
 20.1 Any and all exhibits referred to herein shall be considered an integral part of this Agreement. 
  

 29 

 Article 21. 
 Currency of Account 
  
 21.1 All payments to be made by Orthovita to Cohesion hereunder shall be made in Dollars in either (i) in immediately available funds by confirmed wire transfer to a bank account to be designated by Cohesion or (ii) in the form of a check
payable to the order of Cohesion. 
  
 Article 22.

 Binding Effect 
  
 22.1 This Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the Parties. 
  
 Article 23. 
 Counterparts; Facsimile 
  
 23.1 This Agreement may be executed by original or facsimile signature in several counterparts, all of which shall be deemed to be originals, and all of which shall constitute one and the same Agreement.
Notwithstanding the foregoing, the Parties shall deliver original execution copies of this Agreement to one another as soon as practicable following execution thereof. 
  
 [SIGNATURE PAGE FOLLOWS] 
  

 30 

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first above
written. 
  

									
	COHESION TECHNOLOGIES, INC.	 	 	 	ORTHOVITA, INC.
					
	By:	 	 	 	 	 	By:	 	 
	 Name:
	 	 	 	 	 	 Name:
	 	 
	 Title:
	 	 	 	 	 	 Title:
	 	 
	 Date:
	 	 	 	 	 	 Date:
	 	 

  
 [SIGNATURE PAGE TO
EXCLUSIVE SALES DISTRIBUTION AGREEMENT] 
  

 EXHIBIT A 
  
 Description of Products 
  
 CoStasis® Surgical Hemostat product 
  

			
		
	Description:	  	A sterile suspension of bovine collagen and bovine thrombin in calcium chloride.
		
	Indications:	  	As described in the label and instruction for use approved by the Regulatory Authority, IFU revision dated as of February 2002.
		
	Administration:	  	The CoStasis® Surgical Hemostat product is supplied in one syringe, and at the time of administration is mixed with an aliquot of plasma obtained from the patient that is contained in a second syringe. The patient plasma serves as a
source of fibrinogen, which in the presence of collagen and thrombin forms a collagen-reinforced fibrin clot.
		
	Unit Dose Package:	  	Includes disposable parts consisting of a ported pouch, sterile delivery set in trays and a CoStasis Surgical Hemostat syringe.

  
 CellPaker® Plasma Collection System  
  

			
	Description:	  	a needle-less syringe device for drawing blood from a human for direct placement into a centrifuge for centrifuging to separate plasma from red and white blood cells.

  

 EXHIBIT B 
  
 Accessories 
  

			
	 Description

	  	Existing Quantity*

	 MEA (malleable extended applicator)
	  	42
	 LEA (laparoscopic extended applicator)
	  	51
	 Centrifuges
	  	500

  

	*	The quantities of Accessories are estimated as of June 22, 2004. Any change to these quantities prior to the Effective Date shall be in the ordinary course.

  

 EXHIBIT C 
  
 Minimum Sales 
  
 North America 
  

	 	•	******** in Net Sales per Calendar Year, beginning in Calendar Year 2005 

  

 EXHIBIT D 
  
 Product Samples 
  
 During Calendar Year 2004 
  

	 	•	CoStasis Products: ******** and 

  

	 	•	CellPaker Products: ********, packaged in boxes of 10. 

  
 During Calendar Year 2005 
  

	 	•	CoStasis Products: ********, and 

  

	 	•	CellPaker Products: ********, packaged in boxes of 10. 

  
 During each Calendar Year after Calendar Year 2005 
  

	 	•	CoStasis Products: ********, where each unit can be any size unit under production by Cohesion at the time the order for such Samples are placed, and

  

	 	•	CellPaker Products: ********, packaged in boxes of 10. 

  

 EXHIBIT E 
  
 Schedule of Royalties 
  
 North America 
  

	 	•	********; 

  

	 	•	********; 

  

	 	•	********; 

  

	 	•	********; and 

  

	 	•	********. 

  

 EXHIBIT F 
  
 Price 
  
 CoStasis Products: 
  

	 	•	******** dose package of CoStasis Product 

  
 CellPaker Products: 
  

	 	•	******** per box of 10 CellPaker Product unitsForm of Indemnification Agreement

 Exhibit 10.2 
  
 ORTHOVITA, INC. 
  
 INDEMNIFICATION AGREEMENT 
  
 This Agreement, made and entered into as of May 4, 2004 (this “Agreement”), between Orthovita, Inc., a Pennsylvania corporation (the
“Company”), and                      (the “Indemnitee”): 
  
 WHEREAS, highly competent persons are becoming more reluctant to serve publicly-held corporations as directors unless they
are provided with adequate protection through insurance or adequate indemnification against inordinate risks of claims and actions against them arising out of their service to, and activities on behalf of, the corporation; 
  
 WHEREAS, uncertainties relating to the continued availability of adequate
directors and officers liability insurance (“D&O Insurance”) and uncertainties relating to indemnification have increased the difficulty of attracting and retaining such persons; 
  
 WHEREAS, the Board of Directors of the Company (the “Board”) has
determined that the difficulty in attracting and retaining such persons is detrimental to the best interests of the Company’s stockholders and that the Company should act to assure such persons that there will be increased certainty of such
protection in the future; 
  
 WHEREAS, it is reasonable, prudent
and necessary for the Company to obligate itself contractually to indemnify such persons so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified; 
  
 WHEREAS, Indemnitee is willing to serve, continue to serve and/or take on
additional service for or on behalf of the Company on the condition that he or she be so indemnified and that such indemnification be so guaranteed; and 
  
 WHEREAS, the Company and Indemnitee wish to enter into such an Indemnification Agreement; 
  
 NOW, THEREFORE, in consideration of the premises and the covenants contained herein, and intending to be legally bound
hereby, the Company and Indemnitee do hereby covenant and agree as follows: 
  
 1. SERVICES BY INDEMNITEE. Indemnitee agrees to serve or continue to serve as a director of the Company. This Agreement shall not impose any obligation on Indemnitee or the Company to continue Indemnitee’s
position with the Company beyond any period otherwise applicable. 
  
 2. INDEMNITY. The Company shall indemnify, and shall advance Expenses (as hereinafter defined) to, Indemnitee as provided in this Agreement and to the fullest extent permitted by law. 

 3. GENERAL. Indemnitee shall be entitled to the rights of indemnification provided in this Section
3 if, by reason of his or her Corporate Status (as hereinafter defined), Indemnitee is, or is threatened to be made, a party to any threatened, pending, or completed action, suit, arbitration, alternative dispute resolution proceeding,
investigation, administrative hearing or other proceeding whether civil, criminal, administrative or investigative (other than an action, suit or proceeding covered by Section 4 hereof). Pursuant to this Section 3, Indemnitee shall be indemnified
against Expenses, judgments, penalties, fines and/or amounts paid in settlement incurred by Indemnitee or on his or her behalf in connection with such action, suit, arbitration, alternative dispute resolution proceeding, investigation,
administrative hearing or other proceeding whether civil, criminal, administrative or investigative or any claim, issue or matter therein and whether or not Indemnitee is made a party thereto, if Indemnitee acted in good faith and in a manner
Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. 
  
 4. PROCEEDINGS BY OR IN THE RIGHT OF THE COMPANY. In the case of any
threatened, pending or completed action, suit or proceeding by or in the right of the Company, indemnification shall be made to the maximum extent permitted under Pennsylvania law. 
  
 5. INTENTIONALLY OMITTED. 
  
 6. ADVANCE OF EXPENSES. The Company shall advance all Expenses incurred by or on behalf of Indemnitee in connection with any action, suit,
arbitration, alternative dispute resolution proceeding, investigation, administrative hearing or other proceeding involving his or her Corporate Status whether civil, criminal, administrative or investigative within 20 days after the receipt by the
Company of a statement or statements from Indemnitee requesting such advance or advances from time to time, whether prior to or after final disposition of such action, suit, arbitration, alternative dispute resolution proceeding, investigation,
administrative hearing or other proceeding whether civil, criminal, administrative or investigative. Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee and shall include or be preceded or accompanied by an
undertaking by or on behalf of Indemnitee to repay any Expenses advanced if it shall ultimately be determined that Indemnitee is not entitled to be indemnified against such Expenses, which undertaking shall be accepted by or on behalf of the Company
without reference to the financial ability of Indemnitee to make repayment. 
  
 7. PROCEDURE FOR DETERMINATION OF ENTITLEMENT TO INDEMNIFICATION. 
  
 (a) To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith such
documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification. The Secretary of the Company shall, promptly upon receipt of such a
request for indemnification, advise the Board in writing that Indemnitee has requested indemnification. 
  

 2 

 (b) Upon written request by Indemnitee for indemnification pursuant to Section 7(a) hereof, a
determination, if required (but only to the extent required) by applicable law as a precondition to payment, with respect to Indemnitee’s entitlement thereto shall be made in the specific case: (i) if a Change in Control (as hereinafter
defined) shall have occurred, by Independent Counsel (as hereinafter defined) in a written opinion to the Board, a copy of which shall be delivered to Indemnitee (unless Indemnitee shall request that such determination be made by the Board or the
stockholders, in which case the determination shall be made in the manner provided below in clauses (ii) or (iii)); (ii) if a Change of Control shall not have occurred, (A) by the Board by a majority vote of Disinterested Directors (as hereinafter
defined), even if less than a quorum, or (B) by a committee of Disinterested Directors designated by a majority vote of Disinterested Directors, even if less than a quorum, or (C) if the Disinterested Directors so direct, by Independent Counsel in a
written opinion to the Board, a copy of which shall be delivered to Indemnitee or (D) by the stockholders of the Company; or (iii) as provided in Section 8(b) of this Agreement; and, if it is so determined that Indemnitee is entitled to
indemnification, payment to Indemnitee shall be made within 10 days after such determination. Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification,
including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably
necessary to such determination. Any costs or expenses (including attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement
to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom. 
  
 (c) In the event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 7(b) of this Agreement, the
Independent Counsel shall be selected as provided in this Section 7(c). If a Change of Control shall not have occurred, the Independent Counsel shall be selected by the Board, and the Company shall give written notice to Indemnitee advising him or
her of the identity of the Independent Counsel so selected. If a Change of Control shall have occurred, the Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such selection be made by the Board, in which event
the preceding sentence shall apply), and Indemnitee shall give written notice to the Company advising it of the identity of the Independent Counsel so selected. In either event, Indemnitee or the Company, as the case may be, may, within 7 days after
such written notice of selection shall have been given, deliver to the Company or to Indemnitee, as the case may be, a written objection to such selection. Such objection may be asserted only on the ground that the Independent Counsel so selected
does not meet the requirements of “Independent Counsel” as defined in Section 14 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion. If such written objection is made, the
Independent Counsel so selected may not serve as Independent Counsel unless and until a court has determined that such objection is without merit. If, within 20 days after submission by Indemnitee of a written request for indemnification pursuant to
Section 7(a) hereof, no Independent Counsel shall have been selected or if selected, shall have been objected to, in accordance with this Section 7(c), either the Company or Indemnitee may petition a court of competent jurisdiction for resolution of
any objection which shall have been made by the Company or Indemnitee to the other’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by 
  

 3 

 the Court or by such other person as the Court shall designate, and the person with respect to whom an objection is
favorably resolved or the person so appointed shall act as Independent Counsel under Section 7(b) hereof. The Company shall pay reasonable fees and expenses of Independent Counsel incurred in connection with its acting in such capacity pursuant to
Section 7(b) hereof. The Company shall pay any and all reasonable fees and expenses incident to the procedures of this Section 7(c), regardless of the manner in which such Independent Counsel was selected or appointed. Upon the due commencement of
any judicial proceeding or arbitration pursuant to Section 9(a) of this Agreement, Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then
prevailing). 
  
 8. PRESUMPTIONS AND EFFECT OF CERTAIN
PROCEEDINGS. 
  
 (a) If a Change of Control shall have
occurred, in making a determination with respect to entitlement to indemnification hereunder, the person, persons or entity making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has
submitted a request for indemnification in accordance with Section 7(a) of this Agreement, and the Company shall have the burden of proof to overcome that presumption in connection with the making by any person, persons or entity of any
determination contrary to that presumption. 
  
 (b) If the person,
persons or entity empowered or selected under Section 7 of this Agreement to determine whether Indemnitee is entitled to indemnification shall not have made such determination within 60 days after receipt by the Company of the request therefor, the
requisite determination of entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled to such indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact
necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law; provided, however, that such 60-day period may be
extended for a reasonable time, not to exceed an additional 30 days, if the person, persons or entity making the determination with respect to entitlement to indemnification in good faith requires such additional time for the obtaining or evaluating
of documentation and/or information relating thereto; and provided, further, that the foregoing provisions of this Section 8(b) shall not apply (i) if the determination of entitlement to indemnification is to be made by the stockholders pursuant to
Section 7(b) of this Agreement and if (A) within 15 days after receipt by the Company of the request for such determination the Board has resolved to submit such determination to the stockholders for their consideration at an annual meeting thereof
to be held within 120 days after such receipt and such determination is made thereat, or (B) a special meeting of stockholders is called within 15 days after such receipt for the purpose of making such determination, such meeting is held for such
purpose within 105 days after having been so called and such determination is made thereat, or (ii) if the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 7(b) of this Agreement. 

 
 (c) The termination of any action, suit, arbitration, alternative dispute
resolution proceeding, investigation, administrative hearing or other proceeding whether civil, criminal, administrative or investigative or of any claim, issue or matter therein by judgment, 
  

 4 

 order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not (except as otherwise
expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably believed to be in or not
opposed to the best interests of the Company or, with respect to any criminal action or proceeding, that Indemnitee had reasonable cause to believe that his or her conduct was unlawful. 
  
 9. REMEDIES OF INDEMNITEE. 
  

(a) In the event that (i) a determination is made pursuant to Section 7 of this Agreement that Indemnitee is not entitled to indemnification under this
Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 6 of this Agreement, (iii) the determination of entitlement to indemnification is to be by Independent Counsel pursuant to Section 7(b) of this Agreement and such
determination shall not have been made and delivered in a written opinion within 90 days after receipt by the Company of the request for indemnification, or (iv) payment of indemnification is not made within 10 days after a determination has been
made that Indemnitee is entitled to indemnification or such determination is deemed to have been made pursuant to Section 8 of this Agreement, Indemnitee shall be entitled to an adjudication in a court of competent jurisdiction, of Indemnitee’s
entitlement to such indemnification or advancement of Expenses. Alternatively, Indemnitee, at his or her option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the rules of the American Arbitration Association.
Indemnitee shall commence such proceeding seeking an adjudication or an award in arbitration within 180 days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 9(a). The Company shall not
oppose Indemnitee’s right to seek any such adjudication or award in arbitration. 
  
 (b) In the event that a determination shall have been made pursuant to Section 7 of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this
Section 9 shall be conducted in all respects as a de novo trial, or arbitration, on the merits and Indemnitee shall not be prejudiced by reason of that adverse determination. If a Change of Control shall have occurred, in any judicial proceeding or
arbitration commenced pursuant to this Section 9 the Company shall have the burden of proving that Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be. 
  
 (c) If a determination shall have been made or deemed to have been made
pursuant to Section 7 or 8 of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 9, absent (i) a misstatement
by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under
applicable law. 
  
 (d) The Company shall be precluded from
asserting in any judicial proceeding or arbitration commenced pursuant to this Section 9 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such
arbitrator that the Company is bound by all the provisions of this Agreement. 
  

 5 

 (e) In the event that Indemnitee, pursuant to this Section 9, seeks a judicial adjudication of or an
award in arbitration to enforce Indemnitee’s rights under, or to recover damages for breach of, this Agreement, Indemnitee shall be entitled to recover from the Company, and shall be indemnified by the Company against, any and all expenses (of
the types described in the definition of Expenses in Section 14 of this Agreement) actually and reasonably incurred by him or her in such judicial adjudication or arbitration, but only if Indemnitee prevails therein. If it shall be determined in
said judicial adjudication or arbitration that Indemnitee is entitled to receive part but not all of the indemnification or advancement of expenses sought, the expenses incurred by Indemnitee in connection with such judicial adjudication or
arbitration shall be appropriately prorated. 
  
 10.
SECURITY. To the extent requested by Indemnitee and approved by the Board, the Company shall at any time and from time to time provide security to Indemnitee for the Company’s obligations hereunder through an irrevocable bank line of
credit, funded trust or other collateral. Any such security, once provided to Indemnitee, may not be revoked or released without the prior written consent of Indemnitee. 
  
 11. NON-EXCLUSIVITY; DURATION OF AGREEMENT; INSURANCE; SUBROGATION. 
  
 (a) The rights of indemnification and to receive advancement of Expenses as
provided by this Agreement are in addition to and shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Company’s certificate of incorporation or by-laws, any other
agreement, a vote of stockholders or a resolution of directors, or otherwise. Without limiting the foregoing, the Company shall indemnify Indemnitee to the fullest extent permitted under Pennsylvania law. This Agreement shall continue until and
terminate upon the later of (a) 10 years after the date that Indemnitee shall have ceased to serve as a director or officer of the Company or director, officer or other fiduciary of any other corporation, partnership, joint venture, trust, employee
benefit plan or other enterprise which Indemnitee served at the request of the Company; or (b) the final termination of all pending actions, suits, arbitrations, alternative dispute resolution proceedings, investigations, administrative hearings or
other proceedings whether civil, criminal, administrative or investigative in respect of which Indemnitee is granted rights of indemnification or advancement of Expenses hereunder and of any proceeding commenced by Indemnitee pursuant to Section 9
of this Agreement relating thereto. This Agreement shall be binding upon the Company and its successors and assigns and shall inure to the benefit of Indemnitee and his or her heirs, executors and administrators. 
  
 (b) To the extent that the Company maintains D&O Insurance, Indemnitee
shall be covered by such D&O Insurance in accordance with its terms to the maximum extent of the coverage available for any director or officer under such policy or policies. 
  
 (c) In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all
of the rights of recovery of Indemnitee, who shall 
  

 6 

 execute all papers required and take all action necessary to secure such rights, including execution of such documents as
are necessary to enable the Company to bring suit to enforce such rights. 
  
 (d) The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any
insurance policy, contract, agreement or otherwise. 
  
 12.
SEVERABILITY; REFORMATION. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this
Agreement (including without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be affected
or impaired thereby; and (b) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable,
that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable. 
  
 13. EXCEPTION TO RIGHT OF INDEMNIFICATION OR ADVANCEMENT OF EXPENSES. Notwithstanding any other provision of this
Agreement, Indemnitee shall not be entitled to indemnification or advancement of Expenses under this Agreement with respect to any action, suit or proceeding, or any claim therein, initiated, brought or made by Indemnitee (i) against the Company,
unless a Change in Control shall have occurred, or (ii) against any person other than the Company, unless approved in advance by the Board. 
  
 14. DEFINITIONS. For purposes of this Agreement: 
  
 (a) “Change in Control” means an event or occurrence set forth in any one or more of subsection (i) through (iv) below (including an event or
occurrence that constitutes a Change in Control under one of such subsections but is specifically exempted from another such subsection): 
  
 (i) the acquisition by an individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”)) (a “Person”) of beneficial ownership of any capital stock of the Company if, after such acquisition, such Person beneficially owns (within the meaning of Rule 13d-3 promulgated under the Exchange
Act) 40% or more of either (A) the then-outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (B) the combined voting power of the then-outstanding securities of the Company entitled to vote
generally in the election of directors (the “Outstanding Company Voting Securities”); PROVIDED, HOWEVER, that for purposes of this subsection (i), the following acquisitions shall not constitute a Change in Control: (A) any acquisition by
the Company, (B) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company, or (C) any acquisition by any corporation pursuant to a transaction which complies
with clauses (A) and (B) of subsection (iii) of this Section 14(a); 
  

 7 

 (ii) such time as the Continuing Directors (as defined below) do not constitute a majority of the Board
(or, if applicable, the Board of Directors of a successor corporation to the Company), where the term “Continuing Director” means at any date a member of the Board (A) who was a member of the Board on May 4, 2004 or (B) who was nominated
or elected subsequent to such date by at least a majority of the directors who were Continuing Directors at the time of such nomination or election; PROVIDED, HOWEVER, that there shall be excluded form this clause (B) any individual whose initial
assumption of office occurred as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents, by or on behalf of a person other than the
Board; 
  
 (iii) the consummation of a merger, consolidation,
reorganization, recapitalization or statutory share exchange involving the Company or a sale or other disposition of all or substantially all of the assets of the Company in one or a series of transactions (a “Business Combination”),
unless, immediately following such Business Combination, each of the following two conditions is satisfied: (A) all or substantially all of the individuals and entities who were the beneficial owners of the Outstanding Company Common Stock and
Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 60% of the then-outstanding shares of common stock and the combined voting power of the then-outstanding
securities entitled to vote generally in the election of directors, respectively, of the resulting or acquiring corporation in such Business Combination (which shall include, without limitation, a corporation which as a result of such transaction
owns the Company or substantially all of the Company’s assets either directly or through one or more subsidiaries) (such resulting or acquiring corporation is referred to herein as the “Acquiring Corporation”) in substantially the
same proportions as their ownership, immediately prior to such Business Combination, of the Outstanding Company Common Stock and Outstanding Company Voting Securities, respectively; and (B) no Person (excluding the Acquiring Corporation or any
employee benefit plan (or related trust) maintained or sponsored by the Company or by the Acquiring Corporation) beneficially owns, directly or indirectly, 40% or more of the then outstanding shares of common stock of the Acquiring Corporation, or
of the combined voting power of the then-outstanding securities of such corporation entitled to vote generally in the election of directors; or 
  
 (iv) approval by the stockholders of the Company of a complete liquidation or dissolution of the Company. 
  
 (b) “Corporate Status” describes the status of a person who is or
was or has agreed to become a director of the Company, or is or was an officer or fiduciary of the Company or a director, officer or fiduciary of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise
which such person is or was serving at the request of the Company. 
  
 (c) “Disinterested Director” means a director of the Company who is not and was not a party to the action, suit, arbitration, alternative dispute resolution proceeding, investigation, administrative hearing or any other proceeding
whether civil, criminal, administrative or investigative in respect of which indemnification is sought by Indemnitee. 
  

 8 

 (d) “Expenses” shall include all reasonable attorneys’ fees, retainers, court costs,
transcript costs, fees and expenses of experts, including but not limited to fees and expenses of investment bankers and/or consultants which the Company has authorized Indemnitee to hire and attorneys for such experts, travel expenses, duplicating
costs, printing and binding costs, telephone charges, postage, deliver service fees, a reasonable per diem fee to compensate Indemnitee for his or her professional time and all other disbursements or expenses of the types customarily incurred in
connection with prosecuting, defending, preparing to prosecute or defend or investigating an action, suit, arbitration, alternative dispute resolution proceeding, investigation, administrative hearing or any other proceeding whether civil, criminal,
administrative or investigative. 
  
 (e) “Independent
Counsel” means a law firm, with over 100 lawyers, that is experienced in matters of corporation law and neither currently is, nor in the past five years has been, retained to represent: (i) the Company (including any subsidiary thereof) or
Indemnitee in any matter material to either such party or (ii) any other party to the action, suit, arbitration, alternative dispute resolution proceeding, investigation, administrative hearing or any other proceeding whether civil, criminal,
administrative or investigative giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct
then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement. 
  
 15. HEADINGS. The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be
deemed to constitute part of this Agreement or to affect the construction thereof. 
  
 16. MODIFICATION AND WAIVER. This Agreement may be amended from time to time to reflect changes in Pennsylvania law or for other reasons. No supplement, modification or amendment of this Agreement shall be
binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar) nor shall such waiver
constitute a continuing waiver. 
  
 17. NOTICE BY
INDEMNITEE. Indemnitee agrees promptly to notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any matter which may be subject to indemnification
or advancement of Expenses covered hereunder; provided, however, that the failure to give any such notice shall not disqualify Indemnitee from indemnification hereunder. 
  
 18. NOTICES. All notices, requests, demands and other communications hereunder shall be in writing and shall be
deemed to have been duly given if (i) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, or (ii) mailed by certified or registered mail with postage prepaid, on the third business
day after the date on which it is so mailed: 
  

					
	 (a)
	  	 If to Indemnitee, to:
	 	 The address shown beneath

	 	  	 	 	 his or her signature on the

	 	  	 	 	 last page hereof

  

 9 

					
			
	 (b)
	  	 If to the Company to:
	 	 Orthovita, Inc.

	 	  	 	 	 45 Great Valley Parkway

	 	  	 	 	 Malvern, PA 19355

	 	  	 	 	 Attn: Corporate Secretary

  
 or to such other address as may have
been furnished to Indemnitee by the Company or to the Company by Indemnitee, as the case may be. 
  
 19. GOVERNING LAW. The parties agree that this Agreement shall be governed by, and construed and enforced in accordance with, the laws of the
Commonwealth of Pennsylvania. 
  
 20. ENTIRE AGREEMENT.
This agreement sets forth the entire agreement of the parties hereto in respect of the subject matter contained herein and supersedes all prior agreements, promises, covenants, arrangements, communications, representations or warranties, whether
oral or written, by any officer, employee or representative of any party hereto in respect of the subject matter contained herein; and any prior agreement of the parties hereto in respect of the subject matter contained herein is hereby terminated
and cancelled. 
  
 IN WITNESS WHEREOF, the parties hereto have
executed this Agreement effective as of the day and year first above written. 
  

							
	 Attest:
	 	 ORTHOVITA, INC.

				
	 By:
	 	
	 	 By:
	 	  

	 	 	 Joseph M. Paiva
	 	 	 	 Antony Koblish

	 	 	 Secretary
	 	 	 	 President and Chief Executive Officer

			
	 	 	 	 	 INDEMNITEE

				
	 	 	 	 	 By:
	 	  

	 	 	 	 	 Name:
	 	  

	 	 	 	 	 Address:
	 	  

	 	 	 	 	 Date of Execution:
	 	  

  

 10

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