Document:

Exhibit 10.02

 

Company Voting and Support Agreement

 

COMPANY VOTING AND SUPPORT AGREEMENT, dated
as of May 8, 2008, (this “Agreement”), by and between Nuvasive, Inc.
(“Nuvasive”), a Delaware corporation, and                                                       
(the “Stockholder”).  Capitalized
terms used but not defined herein shall have the meanings given to such terms
in the Asset Purchase Agreement, dated as of the date hereof (the “Purchase
Agreement”), by and between Nuvasive and Osiris Therapeutics, Inc. (the
“Company”).

 

W I T N E S S E T H:

 

WHEREAS, Nuvasive and the Company are
entering into the Purchase Agreement concurrently with the execution and
delivery of this Agreement, which Purchase Agreement sets forth the terms and
conditions on which Nuvasive will acquire certain assets of the Company (the “Acquisition”).

 

WHEREAS, as of the date hereof, the Stockholder
is the beneficial and record owner of                                 
shares of Company Common Stock (the “Existing Shares”).

 

WHEREAS, Nuvasive has required, as a material
inducement to Nuvasive’s willingness to enter into the Purchase Agreement, that
the Stockholder enter into this Agreement.

 

NOW, THEREFORE, in consideration of the
foregoing and the mutual representations, warranties, covenants and agreements
contained herein, and intending to be legally bound hereby, the parties hereto
hereby agree as follows:

 

ARTICLE I

 

VOTING

 

1.1                                 Agreement to Vote.  The Stockholder agrees that, from and after
the date hereof and until this Agreement is terminated pursuant to Section 4.1,
at the Stockholder Meeting and any other meeting of the stockholders of the
Company, however called relating to any proposed action by the stockholders of
the Company with respect to the matters set forth in Section 1.1(b) below
(each, a “Voting Event”), the Stockholder shall:

 

(a)                                  appear at each such
Voting Event or otherwise cause the Existing Shares and any voting securities
of the Company acquired by the Stockholder after the date hereof and prior to
the record date of such Voting Event (together with the Existing Shares, the “Voting
Shares”) owned beneficially or of record by the Stockholder to be counted
as present thereat for purposes of calculating a quorum; and

 

(b)                                 vote (or cause to be
voted), in person or by proxy, all the Voting Shares (i) in favor of
adoption of the Purchase Agreement and any other transactions and other matters
specifically contemplated by the Purchase Agreement and (ii) against any
action or agreement submitted for adoption of the stockholders of the Company
that, to the Stockholder’s knowledge, would result in a breach of any covenant,
representation or warranty or any other obligation or 

 

 

agreement of the Company contained in the Purchase
Agreement or of the Stockholder contained in this Agreement.

 

1.2                                 Fiduciary Duties.  Each party hereto acknowledges and agrees
that the Stockholder is not making any agreement or understanding herein in any
capacity other than in its capacity as a stockholder of the Company.  If the Stockholder or any affiliates,
employees or agents of the Stockholder is an officer or member of the Board of
Directors of the Company, nothing herein shall in any way limit or affect
actions taken by them in such capacity, and no action taken in their capacity
as such an officer or director in furtherance of their fiduciary duties as an
officer or director of the Company shall be deemed to be a breach of the
provisions of this Agreement.

 

ARTICLE II

 

REPRESENTATIONS AND WARRANTIES

 

2.1                                 Representations and
Warranties of the Stockholder.  The Stockholder
hereby represents and warrants to Nuvasive as follows:

 

(a)                                  Authorization;
Validity of Agreement; Necessary Action. 
This Agreement has been duly and validly executed and delivered by the Stockholder
and, assuming this Agreement constitutes the valid and binding agreement of Nuvasive,
constitutes the valid and binding agreement of the Stockholder, enforceable
against the Stockholder in accordance with its terms, subject to (i) laws
of general application relating to bankruptcy, insolvency and the relief of
debtors, and (ii) rules of law governing specific performance,
injunctive relief and other equitable remedies.

 

(b)                                 Ownership.  As of the date hereof, the number of shares of
Company Common Stock beneficially owned by the Stockholder is noted in the
Recitals to this Agreement.  The Existing
Shares are, and the Voting Shares will be, owned beneficially by the Stockholder.  As of the date hereof, the Existing Shares
are the only shares of Company Common Stock held of record or beneficially
owned by the Stockholder.  Subject to Section 3.1,
the Stockholder has and will have at all times through the time of any Voting
Event sole voting power, sole power of disposition, sole power to issue
instructions with respect to the matters set forth in Article I or Section 3.1
hereof, and sole power to agree to all of the matters set forth in this
Agreement, in each case with respect to all of the Existing Shares and with
respect to all of the Voting Shares at the time of any Voting Event, with no
limitations, qualifications or restrictions on such rights, subject to
applicable federal securities laws and the terms of this Agreement.  The Stockholder has good title to the
Existing Shares, free and clear of any Liens and the Stockholder will have good
title to such Voting Shares as of the time of any Voting Event, free and clear
of any Liens.  The Stockholder further
represents that any proxies heretofore given in respect of the shares of
Company Common Stock owned beneficially and of record by such Stockholder, if
any, are revocable, and have been revoked.

 

(c)                                  No Violation.  The execution and delivery of this Agreement
by the Stockholder does not, and the performance by the Stockholder of its
obligations under this Agreement will not, (i) contravene or conflict with
the organizational or governing documents of 

 

2

 

the Stockholder, (ii) contravene or
conflict with or constitute a violation by Stockholder of any provision of any
Law binding upon or applicable to the Stockholder or any of its properties or
assets, or (iii) result in any violation of, or default (with or without
notice or lapse of time, or both) under, or give rise to a right of
termination, cancellation or acceleration of any material obligation or to the
loss of a material benefit under any loan, guarantee of indebtedness or credit
agreement, note, bond, mortgage, indenture, lease or agreement binding upon the
Company or any of its subsidiaries or result in the creation of any Lien (other
than Permitted Liens) upon any of the properties or assets of the Stockholder,
except for any of the matters set forth in the foregoing clause (iii) as
would not reasonably be expected to materially impair the ability of the Stockholder
to perform its obligations hereunder or to consummate the transactions contemplated
hereby on a timely basis.

 

2.2                                 Representations and
Warranties of Nuvasive.  Nuvasive
hereby represents and warrants to the Stockholder as follows:

 

(a)                                  Authorization;
Validity of Agreement; Necessary Action. 
This Agreement has been duly and validly executed and delivered by Nuvasive
and, assuming this Agreement constitutes the valid and binding agreement of the
Stockholder, constitutes the valid and binding agreement of Nuvasive, enforceable
against Nuvasive in accordance with its terms, subject to (i) laws of
general application relating to bankruptcy, insolvency and the relief of
debtors, and (ii) rules of law governing specific performance,
injunctive relief and other equitable remedies.

 

(b)                                 No Violation.  The execution and delivery of this Agreement
by Nuvasive does not, and the performance by Nuvasive of its obligations under
this Agreement will not, (i) contravene or conflict with the
organizational or governing documents of Nuvasive, (ii) contravene or
conflict with or constitute a violation by Nuvasive of any provision of any Law
binding upon or applicable to Nuvasive or any of its properties or assets or (iii) result
in any violation of, or default (with or without notice or lapse of time, or
both) under, or give rise to a right of termination, cancellation or
acceleration of any material obligation or to the loss of a material benefit
under any loan, guarantee of indebtedness or credit agreement, note, bond,
mortgage, indenture, lease or agreement binding upon Nuvasive or result in the
creation of any Lien (other than Permitted Liens) upon any of the properties or
assets of Nuvasive, except for any of the matters set forth in the foregoing
clause (iii) as would not reasonably be expected to materially impair the
ability of Nuvasive to perform his obligations hereunder or to consummate the
transactions contemplated hereby on a timely basis.

 

ARTICLE III

 

OTHER COVENANTS

 

3.1                                 Further Agreements
of the Stockholder.  (a)  The Stockholder
hereby agrees, while this Agreement is in effect, and except as expressly
contemplated hereby, not to sell, transfer, pledge, encumber, assign,
distribute, gift or otherwise dispose of (collectively, a “Transfer”) or
enter into any contract, option, put, call or other arrangement or
understanding with respect to any Transfer (whether by actual disposition or
effective economic disposition due to hedging, cash settlement or otherwise)
of, any of the Voting Shares, or any interest therein, provided, that
notwithstanding the foregoing, the Stockholder may Transfer any Voting Shares
to 

 

3

 

any transferee or transferees (including, for
avoidance of doubt, any member of Stockholder’s immediate family, a trust for
the benefit of the Stockholder or any member of the Stockholder’s immediate
family or upon the death of the Stockholder) if either (i) Stockholder retains
direct or indirect sole voting control over such Transferred Voting Shares
through the term of this Agreement; or (ii) as a condition to such Transfer,
such transferee or transferees shall execute an agreement that contains the
same substantive covenants regarding voting and transfer as are contained in
this Agreement.

 

(a)                                  In case of a stock
dividend or distribution of voting securities of the Company, or any change in
the Company Common Stock by reason of any stock dividend or distribution,
split-up, recapitalization, combination, exchange of shares or the like, the
term “Voting Shares” shall be deemed to refer to and include the Voting Shares
as well as all such stock dividends and distributions of voting securities of
the Company and any voting securities into which or for which any or all of the
Voting Shares may be changed or exchanged.

 

(b)                                 The Stockholder
agrees, while this Agreement is in effect, not to, nor to permit any investment
banker, financial adviser, attorney, accountant or other representative or
agent of the Stockholder to, directly or indirectly, engage in any activity
which would be prohibited pursuant to Section 4.7 of the Purchase
Agreement if engaged in by the Company.

 

(c)                                  The Stockholder
agrees, while this Agreement is in effect, not to take or agree or commit to
take any action that would make any representation and warranty of the Stockholder
contained in Section 2.1 of this Agreement inaccurate in any material
respect.  The Stockholder further agrees
that it shall use its commercially reasonable efforts to cooperate with the
Company to effect the transactions contemplated hereby including the Acquisition.

 

ARTICLE IV

 

MISCELLANEOUS

 

4.1                                 Termination.  This Agreement shall terminate upon the
earlier to occur of (a) the receipt of the Stockholder Approval (as
defined in the Purchase Agreement) and (b) the termination of the Purchase
Agreement pursuant to its terms.  In the
event of such termination of this Agreement, this Agreement shall forthwith
become void and have no effect, without any liability or obligation on the part
of any party; provided, however that nothing herein shall relieve
any party from liability for any fraud, intentional misrepresentation or
willful breach of any of its representations, warranties, covenants or
agreements set forth in this Agreement prior to such termination.

 

4.2                                 Further Assurances.  From time to time, at the other party’s
request and without further consideration, each party shall execute and deliver
such additional documents and take all such further action as may be reasonably
necessary or desirable to consummate the transactions contemplated by this
Agreement.

 

4.3                                 No Ownership
Interest.  Nothing contained in this
Agreement shall be deemed to vest in Nuvasive any direct or indirect ownership
or incidence of ownership of or with respect to any Voting Shares.  All rights, ownership and economic benefits
of and relating to the 

 

4

 

Voting Shares shall remain vested in and
belong to the Stockholder, and Nuvasive shall have no authority to manage,
direct, superintend, restrict, regulate, govern or administer any of the
policies or operations of the Company or exercise any power or authority to
direct the Stockholder in the voting of any of the Voting Shares, except as
otherwise provided herein.

 

4.4                                 Notices.  Except for notices that are specifically required
by the terms of this Agreement to be delivered orally, all notices, requests,
claims, demands and other communications hereunder shall be in writing and
shall be deemed given if delivered personally, faxed (with confirmation) or
sent by overnight courier (providing proof of delivery) to the parties at the
following addresses (or at such other address for a party as shall be specified
by like notice)

 

(a)                                  (a) if
to Nuvasive:

 

NuVasive, Inc.

7473
Lusk Boulevard

San
Diego, California 92121

Attention:  General Counsel

Facsimile:
(858) 909-2479

 

with a copy (which shall not constitute
notice) to:

 

DLA
Piper US LLP

4365
Executive Drive, Suite 1100

San
Diego, California 92122

Attention:  Michael Kagnoff

Facsimile:
(858) 456-3075

 

and (b) if to the Stockholder:

 

 

 

 

 

4.5                                 Interpretation.  When a reference is made in this Agreement to
an Article or Section, such reference shall be to an Article or Section of
this Agreement unless otherwise indicated. 
Whenever the words “include,” “includes” or “including” are used in this
Agreement, they shall be deemed to be followed by the words “without
limitation.”  The words “hereof,” “herein”
and “hereunder” and words of similar import when used in this Agreement shall
refer to this Agreement as a whole and not to any particular provision of this
Agreement.  All terms defined in this
Agreement shall have the defined meanings when used in any certificate or other
document made or delivered pursuant thereto unless otherwise defined therein.  Whenever the context of this Agreement
requires, the gender of all words herein shall include the masculine, feminine
and neuter, and the number of all words herein shall include the singular and
plural.  Any agreement, instrument or
statute defined or referred to herein or in any agreement or 

 

5

 

instrument that is referred to herein means
such agreement, instrument or statute as from time to time amended, modified or
supplemented, including (in the case of agreements or instruments) by waiver or
consent and (in the case of statutes) by succession of comparable successor
statutes and references to all attachments thereto and instruments incorporated
therein.  Each of the parties has
participated in the drafting and negotiation of this Agreement.  If an ambiguity or question of intent or
interpretation arises, this Agreement must be construed as if it is drafted by
all the parties, and no presumption or burden of proof shall arise favoring or
disfavoring any party by virtue of authorship of any of the provisions of this
Agreement.

 

4.6                                 Counterparts.  This Agreement may be executed in two or more
consecutive counterparts (including by facsimile), each of which shall be an
original, with the same effect as if the signatures thereto and hereto were upon
the same instrument, and shall become effective when one or more counterparts
have been signed by each of the parties and delivered (by telecopy or
otherwise) to the other parties.

 

4.7                                 Entire Agreement;
Third-Party Beneficiaries.  This
Agreement (including the exhibits and schedules hereto) constitutes the entire
agreement, and supersedes all other prior agreements and understandings, both
written and oral, between the parties, or any of them, with respect to the
subject matter hereof and thereof and is not intended to and shall not confer
upon any person other than the parties hereto any rights or remedies hereunder;
provided, however, that the Company shall be deemed to be a third-party
beneficiary of the Stockholder’s obligations under Sections 1.1 and 3.1 and
shall be entitled to enforce the terms of this Agreement in respect thereto as
if it were a party hereto.

 

4.8                                 Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware, without giving
effect to any choice or conflict of law provision or rule (whether of the
State of Delaware or any other jurisdiction) that would cause the application
of the laws of any jurisdiction other than the State of Delaware.

 

4.9                                 Jurisdiction;
Enforcement.  The parties agree that
irreparable damage would occur in the event that any of the provisions of this
Agreement were not performed in accordance with their specific terms or were
otherwise breached.  It is accordingly agreed
that the parties shall be entitled to an injunction or injunctions to prevent
breaches of this Agreement and to enforce specifically the terms and provisions
of this Agreement.  Each of the parties
hereto irrevocably agrees that any legal action or proceeding with respect to
this Agreement and the rights and obligations arising hereunder, or for
recognition and enforcement of any judgment in respect of this Agreement and
the rights and obligations arising hereunder brought by the other party hereto
or its successors or assigns, shall be brought and determined exclusively in
the Delaware Court of Chancery and any state appellate court therefrom within
the State of Delaware (or, only if the Delaware Court of Chancery declines to
accept jurisdiction over a particular matter, any state or federal court within
the State of Delaware).  Each of the
parties hereto hereby irrevocably submits with regard to any such action or
proceeding for itself and in respect of its property, generally and
unconditionally, to the personal jurisdiction of the aforesaid courts and
agrees that it will not bring any action relating to this Agreement or any of
the transactions contemplated by this Agreement in any court other than the
aforesaid courts.  Each of the parties
hereto hereby irrevocably waives, and agrees not to assert as a defense,
counterclaim or otherwise, in any action or proceeding with respect to this
Agreement, (a) any 

 

6

 

claim that it is not personally subject to
the jurisdiction of the above named courts for any reason other than the
failure to serve in accordance with this Section 4.9, (b) any claim
that it or its property is exempt or immune from jurisdiction of any such court
or from any legal process commenced in such courts (whether through service of
notice, attachment prior to judgment, attachment in aid of execution of
judgment, execution of judgment or otherwise) and (c) to the fullest
extent permitted by the applicable Law, any claim that (i) the suit,
action or proceeding in such court is brought in an inconvenient forum, (ii) the
venue of such suit, action or proceeding is improper or (iii) this
Agreement, or the subject mater hereof, may not be enforced in or by such
courts.

 

4.10                           Amendment.  Any provision of this Agreement may be
amended or waived if, and only if, such amendment or waiver is in writing and
signed, in the case of an amendment, by each of the parties hereto, or in the
case of a waiver, by the party against whom the waiver is to be effective.  Notwithstanding the foregoing, no failure or
delay by any party hereto in exercising any right hereunder shall operate as a
waiver thereof nor shall any single or partial exercise thereof preclude any
other or further exercise of any other right hereunder.

 

4.11                           Severability.  Any term or provision of this Agreement which
is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction,
be ineffective to the sole extent of such invalidity or unenforceability
without rendering invalid or unenforceable the remainder of such term or
provision or the remaining terms and provisions of this Agreement in any
jurisdiction.  If any provision of this
Agreement is so broad as to be unenforceable, such provision shall be
interpreted to be only so broad as is enforceable.

 

4.12                           Assignment.  Neither this Agreement nor any of the rights,
interests or obligations hereunder shall be assigned by any of the parties
hereto (whether by operation of law or otherwise) without the prior written
consent of the other parties, and any assignment without such consent shall be
null and void.  Subject to the preceding
sentence, this Agreement shall be binding upon and shall inure to the benefit
of the parties hereto and their respective successors and assigns.

 

7

 

IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be duly executed and delivered as of the date first
above written.

 

 

	
   

  	
  NUVASIVE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

	
  Received and acknowledged as of

  
	
  the date first above written:

  
	
   

  	
   

  
	
  OSIRIS THERAPEUTICS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
				

 

Signature Page to Voting and Support
AgreementExhibit 10.1

 

OSIRIS THERAPEUTICS, INC.

 

CONVERTIBLE PROMISSORY NOTE

 

SUBSCRIPTION DOCUMENTS

 

 

SUBSCRIPTION INSTRUCTIONS

 

To subscribe for notes of
Osiris Therapeutics, Inc., a prospective investor must complete the
Subscription Documents.  Specifically, a
prospective investor must:

 

1.                                       Read the
Subscription Agreement in its entirety and confirm that all of the
representations and warranties of the Subscriber are true, complete and
correct.

 

2.                                       Complete, sign
and date the Subscriber Signature Page to the Subscription Agreement on page 11
of the Subscription Agreement.

 

3.                                       Complete the
Subscriber Information requested on page 13 of the Subscription Agreement.

 

4.                                       Fax all of the
fully executed Subscription Documents to:

 

Osiris
Therapeutics, Inc.

Attention:
 Chief Financial Officer

Fax:  011-443-545-1710

 

5.                                       Overnight
Courier all of the fully executed Subscription Documents to:

 

Osiris
Therapeutics, Inc.

7015
Albert Einstein Drive

Columbia,
MD  USA 
21046

Attention:  Chief Financial Officer

 

If you have any questions
concerning the completion of the Subscription Documents, please contact
(011-443-545-1819).

 

 

THE CONVERTIBLE NOTE TO BE ACQUIRED BY THE SUBSCRIBER PURSUANT TO THIS
SUBSCRIPTION AGREEMENT HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE SECURITIES LAWS OF ANY
STATE OR OTHER JURISDICTION, AND NEITHER THE NOTE NOR ANY CONVERSION SHARES MAY BE
OFFERED, SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF
WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, ANY U.S.
PERSON, OTHER THAN DISTRIBUTORS (AS DEFINED IN REGULATION S PROMULGATED UNDER
THE SECURITIES ACT (“REGULATION S”)), IN THE ABSENCE OF SUCH REGISTRATION,
UNLESS SUCH TRANSACTION IS EXEMPT FROM OR NOT SUBJECT TO REGISTRATION UNDER THE
SECURITIES ACT, AND THE SUBSCRIBER HAS, IF REQUIRED BY THE COMPANY, DELIVERED
AN OPINION OF COUNSEL TO THAT EFFECT.  BY
ENTERING INTO THIS SUBSCRIPTION AGREEMENT, SUBSCRIBER REPRESENTS, AMONG OTHER
THINGS, THAT IT IS AN ACCREDITED INVESTOR (AS DEFINED IN RULE 501(a) OF
THE SECURITIES ACT) AND IS NOT A U.S. PERSON, AND IS ACQUIRING THE NOTE
PURSUANT HERETO OUTSIDE THE U.S. AND IN ACCORDANCE WITH REGULATION S, AND WILL
NOT ENGAGE IN ANY HEDGING TRANSACTIONS WITH RESPECT TO THE COMMON
STOCK OR NOTES OF THE COMPANY PRIOR TO THE EXPIRATION OF THE DISTRIBUTION
COMPLIANCE PERIOD (AS DEFINED IN REGULATION S) EXCEPT IN COMPLIANCE WITH THE
SECURITIES ACT.

 

OSIRIS THERAPEUTICS, INC.

 

SUBSCRIPTION AGREEMENT

 

	
  Name
  of Subscriber:

  	
   

  
	
   

  	
   

  
	
  Address
  of Subscriber:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Purchase
  Price:

  	
  US$

  	
   

  

 

TO:         Osiris Therapeutics, Inc., a
Delaware corporation (the “Company”).

 

The Subscriber hereby agrees
to loan and advance to Company, and to purchase from the Company at the Closing
provided for hereinbelow, and the Company agrees to sell and deliver to the
Subscriber, an unsecured convertible promissory note of the Company (the “Note”) in the original principal sum of $                    
(the “Principal Amount”), in substantially
the form of promissory note attached hereto as Exhibit A.

 

1

 

A.            Payment.  In connection with this Subscription
Agreement and subject to acceptance by the Company, the Subscriber hereby
agrees with the Company as follows:

 

(1)           The issuance of the Note offered or subscribed for
pursuant hereto will occur at a Closing to be held on March    ,
2008(the “Closing Date”),.  On the Closing Date, the Subscriber will pay
to the Company the Principal Amount in immediately available funds, by wire
transfer as directed by the Company. 
Upon the Subscriber’s payment in full of the Principal Amount as
contemplated by this Part A(1), the Company shall deliver to the
Subscriber the Note, fully executed on behalf of the Company.

 

B.            Acknowledgments
and Covenants.

 

(1)           The Subscriber hereby agrees to pay all costs and expenses
incurred by or on behalf of the Company, including reasonable attorneys’ fees
and disbursements, in connection with enforcing the Subscriber’s obligations
under this Subscription Agreement in the event of any default in respect of its
obligations hereunder.

 

(2)           Under Section 1445(e) of the Internal Revenue
Code of 1986, as amended (the “Code”), the
Company must withhold tax with respect to certain transfers of property
involving a foreign person.  To inform
the Company whether withholding is required, the Subscriber shall complete a Form W-9
or applicable Form W-8.

 

C.            Representations
and Warranties.

 

Subscriber
Representations and Warranties.

 

The
Subscriber warrants, represents and agrees with the Company as follows:

 

(1)           Upon acceptance by the Company, this Subscription
Agreement is irrevocable and shall constitute a binding commitment of the
Subscriber.

 

(2)           The principal address of Subscriber is outside of the United
States, and Subscriber is not a U.S. Person as such term is defined and used in
Regulation S (“Regulation S”)
promulgated under the Securities Act of 1933, as amended (the “Securities  Act”).

 

(3)           At the time the “buy” order was originated in respect of
Subscriber’s acquisition of the Note pursuant to this Subscription Agreement,
Subscriber was outside of the U.S., and Subscriber is outside the U.S. as of
the date of the execution and delivery of this Subscription Agreement by
Subscriber.  No offer to acquire the Note
pursuant to this Subscription Agreement or otherwise to acquire the Note was
made to Subscriber or its representatives inside the U.S.

 

(4)           Subscriber is acquiring the Note and will acquire any
Conversion Shares (as defined below) for his/her/its own account, not on behalf
or for the account of any U.S. Person, and the purchase of the Note has not
been pre-arranged with a purchaser in the U.S.

 

2

 

(5)           The Subscriber will make all resales of the Note, and all
resales of shares of Common Stock of the Company acquired upon conversion
thereof (“Conversion Shares”) only outside of the U.S. in compliance with
Regulation S, or pursuant to a registration statement under the Securities Act,
or pursuant to an available exemption from registration under the Securities
Act.  Specifically, Subscriber will not
resell the Note or any Conversion Shares to any U.S. Person or within the
United States prior to the expiration of one (1) year (the “Distribution  Compliance Period”),
except pursuant to registration under the Securities Act or an exemption from
registration under the Securities Act.

 

(6)           Subscriber will not engage in any hedging transactions
with respect to this Note or any similar note of the Company, or with respect
to the Common Stock of the Company, at any time prior to the expiration of the
Distribution Compliance Period, except in compliance with the Securities Act.

 

(7)           The Company is and will be relying on the truth and
accuracy of Subscriber’s representations, warranties, agreements,
acknowledgements and understandings as set forth herein, in order to determine
the applicability of such exemptions and the suitability of Subscriber and
his/her/its acquisition of the Note and any Conversion Shares.

 

(8)           Subscriber has been furnished with, or has acquired,
copies of all of the documents filed by the Company with the United States
Securities and Exchange Commission during the twelve (12) months prior to the
date hereof, as well as all other documents made available by the Company for
public dissemination during the same period, including, but not limited to,
press releases, and Subscriber has been provided all necessary and appropriate
information about the Company to make an informed investment decision with
respect to the acquisition of this Shares. 
WITHOUT LIMITING THE FOREGOING, THE SUBSCRIBER ACKNOWLEDGES THAT THE
ACQUISITION OF THE NOTE INVOLVES, AND THE ACQUISITION OF ANY CONVERSION SHARES
WILL INVOLVE, SUBSTANTIAL RISK AND THE SUBSCRIBER MAY LOSE ITS ENTIRE
INVESTMENT.

 

(9)           Subscriber has sufficient knowledge and experience in
financial and business matters and is capable of evaluating the risks and
merits of Subscriber’s acquisition of the Note and Conversion Shares;
Subscriber has been provided the opportunity to make all necessary and
appropriate inquiries of the Company regarding the Company’s business and
associated risks, and the Company has complied with all such requests; and
Subscriber is able financially to bear the risk of losing Subscriber’s full
investment in the Note and Conversion Shares.

 

(10)         The Note is being acquired, and the Conversion Shares will
be acquired, in a transaction not involving a public offering within the United
States within the meaning of the Securities Act, and Subscriber understands
that the Note and Conversion Shares have not been and may not be, registered
under the Securities Act or registered or qualified under any the securities
laws of any state or other jurisdiction, is and will be “restricted securities”
and cannot be resold or otherwise transferred unless registered

 

3

 

under the Securities Act, and registered or
qualified under any other applicable securities laws, or an exemption from such
registration and qualification is available. 
Prior to any proposed transfer of the Note or Conversion Shares prior to
any registration, Subscriber shall, among other things, give written notice to
the Company of Subscriber’s intention to effect such transfer, identifying the
transferee and describing the manner of the proposed transfer and, if requested
by the Company, accompanied by (i) investment representations by the
transferee similar to those made by Subscriber in this Section 10 and (ii) an
opinion of counsel satisfactory to the Company to the effect that the proposed
transfer may be effected without registration under the Securities Act and
without registration or qualification under applicable state or other
securities laws.  The Note and the
certificate evidencing the Conversion Shares shall bear a legend similar to
that set forth on the first page of this Subscription Agreement (insofar
as applicable) and otherwise referring to reiterating the restrictions on
transfer and other terms hereof applicable to the Note and Conversion Shares
upon issuance, and containing such other information and imposing such other
restrictions as shall be reasonably required by the Company.

 

(11)         Subscriber understands that no U.S. federal or state
government or agency has passed on or made any recommendation or endorsement of
the acquisition by Subscriber of the Note.

 

(12)         Subscriber acknowledges that there is no restriction imposed
hereby upon the Company in respect of the incurring by the Company of
additional debt or the issuance by the Company of additional debt or equity
securities, or otherwise.

 

(13)         The Note and conversion Shares will be purchased for the
account of the Subscriber for investment only and not with a view to, or with
any intention of, a distribution or resale thereof, in whole or in part, or the
grant of any participation therein.  The
Subscriber has not been organized for the specific purpose of acquiring the
Note or conversion Shares.  The
Subscriber acknowledges that the Note and Conversion Shares have not been
registered under the Securities Act, or the securities laws of any state or
other jurisdiction and cannot be disposed of unless subsequently registered
under the Securities Act and any applicable laws of states or other
jurisdictions or an exemption from such registration is available.

 

(14)         The Subscriber is an “accredited investor” as defined in Rule 501(a) of
Securities and Exchange Commission Regulation D, that is (i) if a natural
person, Subscriber has an individual net worth, or joint net worth with the
Subscriber’s spouse, at the time of the Subscriber’s purchase in excess of  $1,000,000; or (ii) if a corporation,
business trust or a partnership, Subscriber was not formed for the specific
purpose of acquiring the Shares, and has total assets in excess of $5,000,000.

 

(15)         The Subscriber acknowledges that at no time was the
Subscriber presented with, or solicited by, any leaflet, public promotional
meeting, newspaper or magazine article, radio or television advertisement or
any other form of general advertising or general solicitation with respect to
the Company.

 

4

 

(16)         If the Subscriber is an entity, the Subscriber is duly
organized or, if a trust, duly established pursuant to a valid trust instrument,
validly existing and in good standing under the laws of the jurisdiction
wherein it is organized and has the power and authority to carry on the
activities in which it is engaged and to acquire the Note.  This Subscription Agreement and any other
documents executed and delivered by the Subscriber in connection therewith or
herewith have been duly authorized, executed and delivered by the Subscriber,
and are the legal, valid and binding obligations of the Subscriber enforceable
in accordance with their respective terms.

 

(17)         The execution and delivery of this Subscription Agreement
and any other documents executed and delivered by the Subscriber in connection
herewith do not, and the performance and consummation of the terms and
transactions set forth or contemplated therein or herein will not, contravene
or result in a default under any provision of existing law or regulations to
which the Subscriber is subject, the provisions of the trust instrument,
charter, bylaws or other governing documents of the Subscriber (if the
Subscriber is an entity) or any indenture, mortgage or other agreement or
instrument to which the Subscriber is a party or by which it is bound and does
not require on the part of the Subscriber any approval, authorization, license,
or filing from or with any foreign, federal, state or municipal board or agency
which has not been obtained.

 

(18)         The Subscriber represents and warrants that the amounts paid
or to be paid by it to the Company in respect of this Subscription Agreement
were not and are not directly, or to the Subscriber’s knowledge indirectly,
derived from activities that contravene federal, state or foreign laws and
regulations, including anti-money laundering and terrorist financing laws and
regulations.  Federal regulations and
Executive Orders administered by the U.S. Treasury Department’s Office of
Foreign Assets Control (“OFAC”)
prohibit, among other things, the engagement in transactions with, and the
provision of services to, certain foreign countries, territories, entities, and
individuals.  The lists of OFAC
prohibited countries, territories, persons and entities can be found on the
OFAC website at www.treas.gov/ofac.

 

(19)         The Subscriber represents and warrants to, and agrees and
covenants with, the Company, as of the date hereof, that, to the best of its
knowledge, none of (i) the Subscriber, (ii) any person controlling or
controlled by the Subscriber, (iii) if the Subscriber is a privately held
entity, any person having beneficial interest in the Subscriber, and (iv) any
person for which the Subscriber is acting as agent or nominee in connection
with this Subscription Agreement, is a country, territory, individual or entity
named on the OFAC lists, nor is any such person or entity prohibited from
investing in the Company under any OFAC administered sanctions or embargo
programs.

 

(20)         The Subscriber agrees promptly to notify the Company should
the Subscriber become aware of any change in the information set forth in Part (18)
or Part (19) above.  The Subscriber
acknowledges and agrees that, if required by law, the Company may be obligated
to “freeze the account” of the Subscriber, either by prohibiting additional
investments from the Subscriber and/or segregating assets of the Subscriber in
compliance with government regulations and, if required by law, the Company may
also be required to report such action and to disclose the Subscriber’s

 

5

 

identity to OFAC.  The Subscriber also understands and agrees
that the Company may release confidential information about the Subscriber and,
if applicable, any underlying beneficial owners of the Subscriber, to law
enforcement agencies to the extent necessary to ensure compliance with all
applicable laws, rules and regulations.

 

(21)         The Company reserves the
right to request such information as is necessary to verify the identity of the
Subscriber, any related party, any individual or entity having a beneficial
interest in, or signatory or other similar authority over, the Subscriber and any
transferee of the Note, and may seek to verify such identity and the source of
funds for the acquisition of the Note by Subscriber.

 

(22)         If the Subscriber is acting as nominee or custodian for
another person, entity or organization in connection with the acquisition of
the Note, the undersigned has so indicated on the “Subscriber Information” page attached
hereto.  The representations and
warranties contained in this Part C regarding the Subscriber are true and
accurate with regard to both the Subscriber and the person, entity or other
organization for which the undersigned is acting as nominee or custodian.  The person, entity or organization for which
the undersigned is acting as nominee or custodian will not transfer or
otherwise dispose of or distribute any part of its economic or beneficial
interest in (or any other rights with respect to) the Note without complying
with all of the applicable provisions of this Subscription Agreement and
applicable law, as if such person, entity or organization were a holder of the
Note.  If the undersigned is acting as
nominee or custodian for another person, entity or organization, the
undersigned agrees to provide such other information as the Company may
reasonably request regarding the undersigned and the person, entity or
organization for which the undersigned is acting as nominee or custodian in
order to determine the eligibility of the Subscriber to acquire the Note.

 

Company
Representations and Warranties.

 

By
accepting the Subscriber’s subscription, the Company warrants, represents and
agrees with the Subscriber as follows:

 

(a)           The Company is duly organized, validly existing and in
good standing as a corporation under the Delaware General Corporation Law, with
all requisite corporate power and authority to conduct its business as
currently conducted and to issue the Note in accordance with the terms of this
Subscription Agreement.  This
Subscription Agreement (when accepted) will have been duly authorized, executed
and delivered by the Company.

 

(b)           This Subscription Agreement is a legally binding
obligation of the Company, enforceable against the Company in accordance with
the terms hereof, except to the extent that (i) such enforceability is
limited by bankruptcy, insolvency, reorganization, moratorium or other laws
relating to or affecting generally the enforcement of creditors’ rights, and (ii) the
availability of the remedy of specific performance or in injunctive or other
equitable relief is subject to the discretion of the court before which any
proceeding therefore may be brought.

 

6

 

D.            Assignment,
Survival, Effectiveness and Further Information.

 

(1)           This Subscription Agreement is not assignable by either
the Subscriber or the Company without the prior written approval of the other
party in its sole and absolute discretion. 
This Subscription Agreement shall be binding upon the successors and any
permitted assigns of the Subscriber and, when accepted by the Company, shall be
binding upon the successors and any permitted assigns of the Company.

 

(2)           All of the agreements, covenants, representations and
warranties made by the Subscriber in this Subscription Agreement shall survive
the execution and delivery hereof.  The
Subscriber shall use reasonable efforts to notify the Company and to do so
promptly upon discovering that any of the representations or warranties made
herein were false when made or has, as a result of changes in circumstances,
become false.  Every provision of this
Subscription Agreement is intended to be severable, and if any term or
provision hereof is held to be illegal or invalid for any reason whatsoever,
such illegality or invalidity shall not affect the validity of the remainder
hereof.

 

(3)           The agreements of the Subscriber set forth herein shall
become effective and binding upon the Subscriber, without right of revocation,
upon the Company’s acceptance of this Subscription Agreement.

 

E.             Miscellaneous.  Unless otherwise indicated, the address on
the first page of this document is the legal residence of the Subscriber,
and all offers and communications in connection herewith have been conducted at
such address.  The Subscriber, if a
foreign entity, represents that it has complied with all of the laws, if any,
of its country of residence and incorporation applicable to the acquisition of
the Note subscribed to herein.

 

F.             Remedies.  The Subscriber understands the meaning and
legal consequences of its covenants, representations and warranties contained
herein, and hereby agrees that the Company may recover from the Subscriber, and
the Subscriber shall hold the Company harmless from, any and all loss, damage
or liability due to or arising out of any breach of any such covenant,
representation or warranty.

 

G.            Communication.  Any notice, demand, request or other
communication which may be required or contemplated herein (including delivery
of this Subscription Agreement by and between the parties hereto) shall be
sufficiently given or delivered if (i) given either by facsimile
transmission (with confirmation of receipt), by reputable overnight delivery
service, postage prepaid, or by registered or certified mail, postage prepaid
and return receipt requested, to the address indicated herein or to such other
address as any party hereto may specify as provided herein, or (ii) delivered
personally at such address.

 

H.            Applicable Law.  This Subscription Agreement and all legal
relations, claims or obligations arising out of this transaction shall be
governed by and construed in accordance with the laws of the State of Delaware,
without regard to conflicts of law provisions.

 

I.              Confirmation of
Representations; Additional Information. 
Upon request of the Company, the Subscriber shall confirm the accuracy
of the representations in this Subscription Agreement to the Company as of the
Closing Date and will use reasonable efforts to notify the

 

7

 

Company and to do so
promptly if the Subscriber becomes aware that such representations are, at any
time, inaccurate in any respect.  In
addition, the Subscriber hereby agrees to respond reasonably to requests to
supply any additional written information concerning the representations in
this Subscription Agreement that the Company may reasonably request.

 

J.             Indemnification.  The Subscriber shall indemnify and hold
harmless the Company and its agents and affiliates (collectively, the “Indemnified Persons”) from and against any losses, claims,
damages, liabilities, costs or expenses to which any of them may become subject
arising out of or based upon any false representation or warranty, or any
breach of or failure to comply with any covenant or agreement, made by the
Subscriber in this Subscription Agreement or in any other document furnished to
the Company in connection with the Subscriber’s investment in the Company.  The Subscriber will reimburse each
Indemnified Person for his, her or its reasonable legal and other expenses
(including the cost of any investigation and preparation) as they are incurred
in connection with any action, proceeding or investigation arising out of or
based upon the foregoing.  The indemnity
and reimbursement obligations of the Subscriber under this Part K shall be
in addition to any liability which the Subscriber may otherwise have.

 

K.            General.  This Subscription Agreement may be executed
in counterparts with the same effect as if the parties executing the
counterparts had all executed one counterpart. 
This Subscription Agreement and the documents specifically referred to
herein constitute the entire agreement among the parties hereto pertaining to
the subject matter hereof and supersedes all prior and contemporaneous
agreements and understandings of the parties in connection therewith.  Neither this Subscription Agreement nor any
provision hereof may be waived, modified, discharged or terminated except by an
instrument in writing signed by the party against whom such waiver,
modification, discharge or termination is sought to be enforced.  Each provision of this Subscription Agreement
shall be considered separable and if for any reason any provision or provisions
hereof are determined to be invalid and contrary to any existing or future law,
such invalidity shall not impair the operation of or affect those portions of
this Subscription Agreement which are valid.

 

*                              *                              *                              *                              *

 

8

 

IN WITNESS WHEREOF, the
Subscriber has executed this Subscription Agreement to OSIRIS THERAPEUTICS,
INC., Inc. this                     day
of                         ,
200   .

 

	
  Name of Subscriber:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   Hereunto duly authorized

  	
   

  
	
   

  	
   

  
	
  Print Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Principal Amount:     US$

  	
   

  	
   

  
						

 

[SUBSCRIBER SIGNATURE PAGE]

 

9

 

ACCEPTANCE

 

	
  Name
  of Subscriber:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Principal
  Amount:   

  	
  US$

  	
   

  	
   

  
				

 

The foregoing Subscription
Agreement is hereby accepted upon the terms and conditions set forth herein.

 

 

	
   

  	
  OSIRIS
  THERAPEUTICS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
  Dated:
                                ,
  200  

  	
   

  

 

10

 

SUBSCRIBER INFORMATION

 

	
  Name
  of Subscriber:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Type
  of Entity:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Subscriber’s
  jurisdiction of organization:

  	
   

  	
   

  
	
   

  	
   

  	
  (Country
  and, if applicable, State)

  
	
   

  	
   

  	
   

  
	
  Subscriber’s
  principal place of business or 

  principal residence:

  	
   

  	
   

  
	
   

  	
   

  	
  (Country
  and, if applicable, State)

  
	
   

  	
   

  	
   

  
	
  Mailing
  address for all written notices:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Telephone
  No.:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Social
  Security or Tax ID No.:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Principal
  Amount:

  	
   

  	
  US$

  	
   

  

 

11

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