Document:

Exhibit 10.6

                                SUPPLY AGREEMENT

     This Supply Agreement (this "Agreement") dated as of this 2nd day of Aug,
2002 (the "Effective Date") is entered into by and between Orthovita, Inc., a
Pennsylvania corporation having a principal place of business at 45 Great Valley
Parkway, Malvern, PA 19355 ("Orthovita"), and BioMimetic Pharmaceuticals, Inc.,
a Delaware corporation having a principal place of business at 1616 Westgate
Circle, Brentwood, TN 37027 ("BMPT") (each, individually, a "Party" and,
collectively, the "Parties").

     WHEREAS, Orthovita shall manufacture and supply Compound (as defined below)
to BMPI; and

     WHEREAS, BMPI shall purchase its requirements of Compound from Orthovita
for purposes of conducting investigational testing and manufacturing of the
Product.

     NOW, THEREFORE, in consideration of the mutual promises, covenants and
agreements hereinafter set forth, the sufficiency of which is hereby
acknowledged and intending to be legally bound, the Parties to this Agreement
mutually agree as follows:

1. Definitions. For purposes of this Agreement, the initially capitalized terms
in this Agreement, whether used in the singular or plural, shall have the
following meanings:

     1.1 "Affiliate" of either Party means any corporation, firm, partnership,
organization or entity, whether de jure or de facto, which such Party directly
or indirectly controls, is controlled by or is under common control with. For
the purpose of this definition, the term "control" means direct or indirect
ownership of at least 50% of the outstanding equity voting stock (or such lesser
percentage which is the maximum allowed to be owned by a foreign corporation in
a particular jurisdiction) of a Party or other entity.

     1.2 "Business Day" means any day on which banking institutions in New York,
NY are open for business.

     1.3 "cGMP" means current Good Manufacturing Practices to include the
Quality System Regulation (QSR's) in the United States existing on the Effective
Date, as promulgated by the FDA.

     1.4 "Compound" means the compound beta-TriCalcium Phosphate, as further
described in Exhibit A; provided, however, that "Compound" shall not include any
similar formulation of beta-TriCalcium Phosphate not included within the
description contained in Exhibit A.

     1.5 "Compound Price" shall have the meaning set forth in Section 4.1.

     1.6 "Confidential Information" shall have the meaning set forth in Section
6.1.

     1.7 "Control" or "Controlled" means with respect to any material, item of
information, method, data or other know-how or intellectual property right, the
possession

(whether by ownership or license, other than pursuant to this Agreement) by a
Party of the ability to grant to the other Party access and/or a license, as
provided herein, to such material, item of information, method, data or other
know-how or intellectual property right without violating the terms of any
agreement or other arrangement with any third party existing before or after the
Effective Date.

     1.8 "Defective Compound" means Compound that does not meet the
Specifications.

     1.9 "Disclosing Party" shall have the meaning set forth in Section 6.1.

     1.10 "FDA" means the U.S. Food and Drug Administration and its European
Union counterpart, and any successor agencies thereto.

     1.11 "FDA Act" means the Federal Food, Drug and Cosmetic Act of the United
States, as amended from time to time.

     1.12 "Field" means the dental, periodontal, oral and cranio-maxillofacial
bone grafting market.

     1.13 "Firm Order" means an Initial Firm Order or a Subsequent Firm Order.

     1.14 "HIPAA" means the Health Insurance Portability and Accountability Act
of 1996 (and the regulations promulgated thereunder).

     1.15 "IDE" shall mean the process of obtaining an investigational device
exemption, as required in accordance with the FDA Act and 21 CFR Part 812.

     1.16 "Indemnified Party" shall have the meaning set forth in Section 10.3.

     1.17 "Indemnifying Party" shall have the meaning set forth in Section
10.3.

     1.18 "Initial Firm Order" shall have the meaning set forth in Section
2.2.1.

     1.19 "Initial Term" shall have the meaning set forth in Section 11.1.

     1.20 "Invoice" shall have the meaning set forth in Section 3.3.

     1.21 "LIBOR" shall have the meaning set forth in Section 4.5.

     1.22 "PDGF" means platelet derived growth factor described in Exhibit B.

     1.23 "Product" means a product containing a combination of Compound and
PDGF, as described in Exhibit F, as such exhibit may be amended by the Parties
from time to time; provided, however, that "Product" shall not include any
combination of PDGF with any other compounds.

     1.24 "Receiving Party" shall have the meaning set forth in Section 6.1.

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     1.25 "Renewal Term" shall have the meaning set forth in Section 11.1.

     1.26 "Representatives" shall have the meaning set forth in Section 6.2.

     1.27 "Rolling Forecast" shall have the meaning set forth in Section 2.3.

     1.28 "Specifications" means the specifications for Compound attached hereto
as Exhibit E.

     1.29 "Subsequent Firm Order" shall have the meaning set forth in Section
2.2.1.

     1.30 "Term" shall have the meaning set forth in Section 11.1.

     1.32 "Vitoss" shall have the meaning set forth in Section 5.5.2.

2. Supply of Compound.

     2.1 General. During the Term, Orthovita shall be the sole and exclusive
supplier of Compound to BMPI and BMPI shall purchase all of its requirements for
Compound only from Orthovita. All Compound shall be produced in accordance with
cGMP and supplied in bulk packaging. BMPI shall only use Compound to make
Product. BMPI shall not sell Compound except as part of Product. BMPI shall not
promote, market, distribute or use Product outside the Field. BMPI shall not,
and shall use its best efforts to not permit any other person, to, promote,
market, distribute or use Product for off label use or seek labeling that
describes, names or lists any use outside of the Field. Under no circumstances
shall BMPI package Product in a manner that will encourage Product's use outside
the Field. BMPI and Orthovita shall promptly give notice to the other should
either become aware of any other person promoting, marketing, distributing or
using Product for off label use or seeking labeling that describes, names or
lists any use outside of the Field or attempting to promote, market, distribute
or use Product for off label use or seek labeling that describes, names or lists
any use outside of the Field. BMPI shall cooperate fully with Orthovita in any
efforts to stop any other person from continuing to promote, market, distribute
or use Product for off label use or seek labeling that describes, names or lists
any use outside of the Field, as well as to prevent any other person from
promoting, marketing, distributing or using Product for off label use or seeking
labeling that describes, names or lists any use outside of the Field.

     2.2 Firm Orders.

          2.2.1 Firm Orders. BMPI shall provide Orthovita with an initial firm
order (the "Initial Firm Order") of Compound for one calendar month on the first
calendar day of the month 90 days preceding the anticipated date of the initial
order delivery. On the first calendar day of each calendar month thereafter,
BMPI shall provide Orthovita with a firm order (each, a "Subsequent Firm Order")
of Compound for the first calendar month not covered by a previous Firm Order.
Hence, each Subsequent Firm Order shall have an order lead time of at least 90
days. [For example, by April 1st BMPI shall place a Firm Order for July. By May
1st, BMPI shall place a Firm Order for August.] In addition, in each Subsequent
Firm Order, BMPI shall

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order at least 90% of the quantity of Compound set out for the applicable
calendar month in the immediately preceding Rolling Forecast.

          2.2.2 Minimum Order Requirements. BMPI shall order the minimum
quantities of Compound set forth in Exhibit C. If BMPI does not order such
amounts within the specified time periods, BMPI shall pay for such amounts, as
if it had ordered such amounts, within 30 calendar days after such period.

     2.3 Rolling Forecasts. On the first day of each calendar month beginning
with the Initial Firm Order, BMPI shall provide Orthovita with a non-binding
estimate (each, a "Rolling Forecast") of the quantities of Compound that BMPI
reasonably believes it will require from Orthovita during the fourth through
twelfth calendar months of the one-year period commencing on the date such
Rolling Forecast is given to Orthovita. [For example, on April 1, BMPI shall
provide Orthovita with a Rolling Forecast for August 1 through March 31 of the
following year. On May 1, BMPI shall provide Orthovita with a Rolling Forecast
for September 1 through April 30 of the following year.] Orthovita shall consign
to BMPI at Orthovita's distribution facility a quantity of Compound equal to
that required by the Rolling Forecast (the "Consigned Compound"). Orthovita
shall arrange for BMPI to be billed directly each month for all carrying costs
incurred on a per lot basis during the prior month in maintaining such Consigned
Compound for the benefit of BMPI.

     2.4 Acceptance of Firm Orders. Orthovita shall accept each Firm Order
placed by BMPI, to the extent that such Firm Order is no greater than 130% of
the amount forecast in the fifth month of the Rolling Forecast provided to
Orthovita one month earlier. Insofar as such Firm Orders exceed 130% of amount
forecast in the fifth month of the previous month's Rolling Forecast, Orthovita,
if requested by BMPI, shall use commercially reasonable efforts to fill such
excess subject to available capacity. If Orthovita is aware or anticipates that
it will be unable to meet any Firm Order, either in whole or in part, Orthovita
shall promptly inform BMPI of such inability. If such inability is partial,
Orthovita shall fulfill Firm Orders with such quantities of Compound as are
available for supply to BMPI hereunder. Amounts of Compound delivered by
Orthovita to BMPI in fulfillment of a Firm Order that was previously only
partially filled will be shipped with the next two Firm Orders shipped by
Orthovita.

     2.5 Addressee of Rolling Forecasts and Firm Orders. All Rolling Forecasts
and Firm Orders shall be sent by BMPI to the person at the address identified on
Exhibit D as such exhibit may be amended from time to time by Orthovita.

     2.6 Additional or Different Terms. Any Firm Orders, Rolling Forecasts or
related purchase orders, purchase order releases, confirmations, acceptances,
advices and similar documents submitted by BMPI in conducting the activities
contemplated under this Agreement are for administrative purposes only and shall
not add to or modify the provisions of this Agreement. To the extent there are
any conflicts or inconsistencies between this Agreement and any such document,
the provisions of this Agreement shall control as to a particular order unless
otherwise agreed to in writing by the Parties.

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3. Shipping, Delivery and Inspection.

     3.1 Shipping and Delivery Dates. At the time BMPI places a Firm Order, BMPI
will provide Orthovita with shipping and delivery dates consistent with the
Rolling Forecast. To the extent that such shipping and delivery dates are
consistent with such Rolling Forecast and the 90- day minimum order lead-time,
Orthovita shall acknowledge such shipping and delivery dates in its order
confirmations, whereupon such shipping and delivery dates shall become binding.
Delivery by Orthovita shall be considered to be "on time" if the Compound is
received by BMPI within five calendar days of the scheduled delivery date. If
Orthovita delivers between 90% and 110% of the amount of Compound specified in a
Firm Order, Orthovita shall be deemed to have satisfied the Firm Order.

     3.2 Terms of Delivery. All shipments of Compound shall be on a
first-to-expire, first out basis Ex Works (Incoterms 2000) Orthovita's
distribution facility. Title and risk of loss or damage to any Compound sold by
Orthovita to BMPI hereunder shall pass to BMPI upon delivery by Orthovita to the
Ex Works point. BMPI shall use its best efforts to designate a carrier in each
Firm Order; provided, however, that if BMPI fails to designate a carrier in a
Firm Order, Orthovita may select a carrier for the account and risk of BMPI. If
the carrier selected by BMPI is unavailable, Orthovita shall ship the Compound
by a mutually agreed upon method. All shipments shall be made at the expense of
BMPI.

     3.3 Accompanying Documentation. With each shipment of Compound, Orthovita
shall provide BMPI with (a) commercially appropriate shipping documentation,
including, without limitation, bills of lading and any additional documentation
reasonably requested by BMPI, (b) a certificate of analysis attached as Exhibit
I that shall record conformance of the shipment with the Specifications and cGMP
and (c) an invoice for the amount of Compound delivered in such shipment
(each, an "Invoice") attached as Exhibit G. Containers shipped with Compound
shall be properly marked and include Tare Weight.

     3.4 Inspection.

          3.4.1 Prior to receipt of the Initial Firm Order, BMPI or its
designated third party may perform analyses, at its expense, of three separate
lots of Compound to test conformance with specifications shown in Exhibit E.
From time to time thereafter, but no less than annually, such analyses of
Compound for delivery may be conducted by BMPI at its sole expense. BMPI may
perform periodic quality system audits of Orthovita. BMPI shall reimburse
Orthovita for its reasonable audit administration costs. The dates and duration
of audits shall be mutually agreed upon in advance. The scope of any such audits
shall be restricted to an assessment of Orthovita's general standard operating
procedures and procedures related to testing outlined in the Certificate of
Analysis. Audits of other Orthovita proprietary design documentation, equipment,
processes, procedures, and data are prohibited.

          3.4.2 Within 20 business days after BMPI's receipt of a shipment of
Compound, BMPI shall inspect (or have inspected) such shipment for Defective
Compound. BMPI shall promptly, and in no event more than five calendar days of
discovery of such Defective Compound, notify Orthovita thereof. If BMPI does not
notify Orthovita of any Defective

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Compound within 25 business days after BMPI's receipt of a shipment of
Compound, BMPI shall be deemed to have accepted such shipment.

          3.4.3 If BMPI notifies Orthovita that it received Defective Compound,
Orthovita may request that BMPI submit a sample of the allegedly Defective
Compound to a mutually agreeable independent testing laboratory to verify
whether such Compound is in compliance with the Specifications. The findings of
such independent laboratory shall be binding upon the Parties. The fees and
expenses charged by such laboratory shall be paid by the Party in error.

          3.4.4 Subject to acknowledgement of Defective Compound by Orthovita or
confirmation of Defective Compound by an independent laboratory, which ever
occurs first, but in no event more than 30 business days following receipt of
BMPI's notice, Orthovita shall provide to BMPI replacement Compound in a
quantity equal to the Defective Compound. Where Orthovita is unable to replace
the full amount of Defective Compound in the specified time, it shall not
constitute a breach of this Agreement. No less than 50% of Defective Compound
shall be delivered to BMPI 30 days following Orthovita's receipt of notice from
BMPI. The remaining 50% of replacement Compound will be delivered to BMPI within
60 days of notice. Orthovita shall be solely responsible for all out of pocket
costs associated with the return of such Defective Compound to Orthovita. When
Orthovita replaces the Defective Compound with Compound it no charge to BMPI in
addition to the amounts BMPI already paid or payable to Orthovita for such
Compound, BMPI shall have no other remedies with respect to such Defective
Compound (except as set forth in Section 10).

          3.4.5 Except to the extent BMPI provided notice to Orthovita in
accordance with this Section 3.4.1, all Compound delivered to BMPI shall be
deemed to be in conformance with the Specifications 25 Business Days after
BMPI's receipt thereof (including, without limitation, for the purposes of
Section 10). In addition, if any Compound fails to meet the Specifications as a
result of a cause occurring after receipt of the Compound by BMPI, including,
without limitation, storage or handling not conforming with Orthovita's written
storage and handling instructions as specified in Exhibit H, such Compound shall
be deemed to be in conformance with the Specifications (including, without
limitation, for the purposes of Section 10).

4. Payment Obligations.

     4.1 Calculation of Compound Price. The price of Compound (the
"Compound Price") shall be as described in Exhibit C hereto.

     4.2 Payment of Compound Price. Within 30 days after issuance of an Invoice
to BMPI, BMPI or its permitted designee shall pay Orthovita an amount equal to
the Compound Price times the number of units of Compound actually received by
BMPI or its permitted designee.

     4.3 Changes in Regulatory Requirement. If, during the Term, there are any
changes in cGMP or any other law, rule or regulation affecting the manufacture
and sale of Compound used in Product that result in an increase in the cost to
manufacture Compound for Product (an "Increasing Change"), such increased
pro-rata stare costs shall be passed on to BMPI in the

                                       6

form of an increase to the Compound Price. Orthovita shall provide BMPI with
fifteen (15) days advance written notice of any such Increasing Change prior to
passing such costs on to BMPI. Such pro-rata share cost increases shall be
proportional to the weight of the initial product used to produce the Compound
in comparison to the combined weight of the initial product used to produce the
Compound, Vitoss, and any other compound created from the initial product. For
example, if the total weight of the initial product is 100 grams, and 80 grams
of the initial product are used to produce Vitoss, 10 grams of the initial
product are used to produce a separate compound, and 10 grams of the initial
product are used to produce the Compound, then BMPI shall be responsible for 10
grams/(80 grams + 10 grams + 10 grams) or 10% of any increased costs due to an
Increasing Change. BMPI shall have the right to verify increases to Compound
Price through an independent third party auditor acceptable to both Parties.
Prior to the effectiveness of any such law, rule or regulation, Orthovita shall
provide BMPI with written notice of any such law, rule or regulation that, to
its knowledge, is proposed, as well as any material updates to such proposal.
However, failure by Orthovita to provide written notice of any such law, rule or
regulation prior to its effectiveness shall not impair the ability of Orthovita
to pass on the increased pro-rata share of such costs.

     4.4 Payment Terms. All payments to be made hereunder shall be payable in
United States dollars.

     4.5 Late Payments. Any payments due under this Section 4 that are not made
on or before the date specified under the provisions of this Agreement shall
bear interest, to the extent permitted by law, at an annual rate of three
percentage points above the 30-day London InterBank Offering Rate ("LIBOR") as
reported in The Financial Times (or any other publication agreed to by the
Parties) on the date such payment is due, with interest calculated based on the
number of days such payment is delinquent.

5. Regulatory Obligations.

     5.1 Compliance with Laws. Except as provided in Section 5.5. BMPI shall
obtain, at its sole expense, all permits, licenses, and other approvals and
shall file all reports, applications, notifications, manifests, and the like
required by regulatory authorities as necessary for BMPI to (a) conduct
pre-clinical and clinical studies on the Product, and (b) market and sell the
Product. Such regulatory requirements shall include, without limitation, all
requirements of FDA and other country-specific requirements, including, without
limitation, to country-specific registration requirements for importation,
testing, and sale of the Product, waste management or emissions, or the testing,
packaging, labeling, storage, sale or distribution of the Product.

          5.1.1 Orthovita shall notify BMPI promptly of all recalls or market
withdrawals of Vitoss products for any reason, except for those recalls or
market withdrawal caused by product mislabeling or packaging. Such notification
shall be no more than 48 hours after such action has been initiated. In such
case, Orthovita shall reimburse BMPI any and all costs associated with
withdrawal of Product, subject to the limitations of Section 9.2.2, as result of
withdrawal of Orthovita's Vitoss.

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     5.2 Pre-Clinical and Clinical Studies.

          5.2.1 Orthovita shall have the right to review and recommend
modifications to all testing protocols for the pre-clinical studies and the
clinical studies prior to commencement of each individual study. Orthovita
shall request changes or modification to pre-clinical protocols within 10
business days of receipt. Following initial review and recommendation, Orthovita
shall have the right to request changes in or modifications to protocols that
have not been completed within 10 business days after Orthovita's receipt of
such protocol. All requested changes shall be in writing and shall be signed by
authorized representatives of Orthovita and BMPI.

          5.2.2 Jeffrey Hollinger, Ph.D., having a principal place of business
at the Bone Tissue Engineering Center, 125D Smith Hall, 5000 Forbes Avenue,
Pittsburgh, PA 15213-3890, shall direct the pharmacokinetic study portion of
the pre-clinical studies. Orthovita and BMPI shall agree on the Principal
Investigator for the remainder of the pre-clinical studies.

          5.2.3 BMPI shall promptly provide Orthovita with a copy of all
Compound binding information and characterization of the release kinetics data
resulting from the pre-clinical studies.

     5.3 ISO. Orthovita shall provide to BMPI appropriate documentation of its
International Standards Organization ("ISO") certification and FDA registration
and shall notify BMPI of any discontinuance of such certification or
registration. If FDA or other governmental and/or licensing accreditation or
certification organization requires an audit of Orthovita, Orthovita, as
supplier of raw materials to BMPI, shall comply with FDA's requirements at
BMPI's cost. A mutually agreeable third party shall be permitted to audit the
Orthovita facility, at reasonable times during normal business hours and subject
to the terms and conditions typical in the industry, at the cost of BMPI.

     5.4 Cooperation in Identification of Vendor for Packaging and
Sterilization. To assist, BMPI in the packing and sterilization of Product,
Orthovita shall provide to BMPI information that identifies potential vendors
historically used by Orthovita for packaging of Compound. Notwithstanding the
foregoing, Orthovita shall not be responsible for the packaging or sterilization
of Compound.

     5.5 Cooperation in Obtaining Regulatory Approval.

          5.5.1 To assist BMPI solely in conducting the activities in the Field
as set forth in this Agreement, Orthovita shall furnish BMPI and/or BMPI's
designees with certain documentation in Orthovita's possession, including
Orthovita's filings with the FDA and its European Union counterpart relating to
Compound, as required by FDA to submit applications for regulatory approvals of
Product and/or to assist BMPI in its communications with the regulatory
authorities relating to Product.

          5.5.2 Orthovita shall permit BMPI to cross-reference Orthovita's
filings made to the FDA and its European Union counterpart with respect to its
"Vitoss" product (which product has the same chemistry as Compound, but is of a
different particle size) ("Vitoss") for

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the sole purpose of assisting BMPI in its communications with the FDA and its
European Union counterpart. Additionally, Orthovita shall use reasonable efforts
to provide BMPI with any additional information on Vitoss or Compound in
Orthovita's possession as required by the FDA and its European Union
counterpart.

          5.5.3 As a courtesy only, Orthovita shall supply BMPI with a copy of
the package insert and a summary of the safety and efficacy data for Vitoss on
an "AS-IS" basis. BMPI SHALL NOT RELY ON SUCH PACKAGE INSERT OR SUMMARY OF
SAFETY AND EFFICACY DATA, AND ORTHOVITA HEREBY DISCLAIMS ALL REPRESENTATIONS AND
WARRANTIES MADE IN RELIANCE, OR IN ANY WAY RELATED TO THE PACKAGE INSERT AND/OR
SUMMARY OF SAFETY AND EFFICACY DATA, INCLUDING, WITHOUT LIMITATION, FITNESS FOR
A PARTICULAR PURPOSE AND MERCHANTABILITY.

6. Confidentiality.

     6.1 Definition. As used in this Agreement, "Confidential Information" means
any proprietary or confidential information, technical data, trade secrets
or know-how of a Party (the "Disclosing Party"), including, without limitation,
research, product plans, products, service plans, services, business plans,
customer lists and customers, markets, software, developments, inventions,
processes, formulas, technology, designs, drawings, engineering, marketing,
distribution and sales methods and systems and profit figures, finances and
other business information disclosed to the other Party hereto (the "Receiving
Party") by or on behalf of the Disclosing Party, either directly or indirectly,
in writing, orally or by drawings or inspection of documents or other tangible
property; provided that (a) any Confidential Information disclosed in tangible
form will be marked as confidential and/or proprietary information by the
Disclosing Party and (b) any Confidential Information disclosed in intangible
form will be identified as confidential and/or proprietary information of the
Disclosing Party at the time of disclosure and summarized in writing to the
Receiving Party within 30 days of its disclosure. The Parties agree that the
provisions of this Agreement shall be considered the Confidential Information
of both Parties and shall not be disclosed by either Party except as set forth
in this Section 6.

     6.2 Duties of Confidentiality and Non-Use. During the Term, and for a
period of 10 years thereafter, the Receiving Party will maintain in confidence
all Confidential Information disclosed to it by the Disclosing Party. The
Receiving Party shall not use, disclose or grant use of the Disclosing Party's
Confidential Information except as required under this Agreement. To the extent
that disclosure is authorized by this Agreement, the Disclosing Party shall
obtain prior agreement from its employees, agents, consultants, Affiliates,
subcontractors and sublicensees (collectively, the "Representatives") to whom
disclosure is to be made to hold in confidence and not make use of such
information for any purpose other than those permitted by this Agreement. Each
Receiving Party shall use at least the same standard of care as it uses to
protect its own Confidential Information to ensure that its Representatives do
not disclose or make any unauthorized use of such Confidential Information.
Each Receiving Party shall promptly notify the other upon discovery of any
unauthorized use or disclosure of Confidential Information.

     6.3 Exceptions. The obligations regarding "Confidential Information" set
forth in Section 6.3.2 shall not apply to:

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          6.3.1 information that, at the time of disclosure, was published,
known publicly, or otherwise in the public domain;

          6.3.2 information that, after disclosure, is published, becomes known
publicly, or otherwise becomes part of the public domain through no fault of the
Receiving Party;

          6.3.3 information that, prior to the time of disclosure, is known to
the Receiving Party, as evidenced by its written records, and is not then
subject to an obligation of confidentiality to any third party;

          6.3.4 information that, after disclosure, is made available to the
Receiving Party by a third party under no obligation of confidentiality and
without restriction on its further disclosure by the Receiving Party; and

          6.3.5 information that is required to be disclosed pursuant to the
order of any court or governmental agency with competent jurisdiction (provided,
however, that (a) any such disclosure shall not otherwise relieve the Receiving
Party of its continuing confidentiality and non-use obligations hereunder with
respect to all of the Confidential Information, including the information
disclosed by it to the court or agency under this clause and (b) the Receiving
Party shall give the Disclosing Party reasonable advance notice of any such
disclosure and cooperate reasonably with the Disclosing Party in the Disclosing
Party's efforts to object to such disclosure and to obtain the recipient's
agreement to maintain the confidentiality of the Confidential Information
disclosed under this clause).

     6.4 Permitted Disclosure. Each Party and its Representatives may disclose
Confidential Information to the extent such disclosure is reasonably necessary
for the purpose of the implementation of this Agreement to individuals or
entities bound by the same terms of Section 6 hereto, including, without
limitation, for purposes of complying with any applicable statute or
governmental regulation.

     6.5 Public Announcements.

          6.5.1 Dr. Jeffrey Hollinger shall have the primary right to publish
the data and materials resulting from the pharmacokinetic study described in
Section 5.2 (including, without limitation, the binding information and
characterization of the release kinetics resulting from such study) on consent
of BMPI. If Dr. Hollinger is unwilling or unable to publish the results of the
pharmacokinetic study, BMPI shall make all reasonable efforts to ensure
publication of such non-Confidential results. If BMPI is unable to publish the
results of the pharmacokinetic study despite such efforts, Orthovita shall make
all reasonable efforts to publish all of the binding information and
characterization of the release kinetics resulting from the pharmacokinetic
study as described in Section 5.2 on written consent of BMPI, which shall not be
unreasonably withheld or delayed.

          6.5.2 No materials based on, or related to, the pre-clinical or
clinical studies relating to Compound, including data from the pharmacokinetic
portion of the study, may be submitted for publication without the prior
review and recommendation of Orthovita. Prior to publication of any study
results, BMPI shall provide a copy of any proposed publication or

                                       10

presentation (including without limitation, manuscripts, written abstracts, and
hard copies of slides or other audiovisual aids prepared for public disclosure)
at least 45 day in advance of the submission of such proposed publication or
presentation. Orthovita shall provide its recommended changes to such data
and/or materials within 10 days of receipt of such publication. If the
publication would reveal the composition, structure or other characteristics of
Compound, trade secrets or other information that is not yet patented or that is
not patentable, Orthovita and BMPI shall cooperate to modify the disclosure as
appropriate. It is understood that nothing in this Section 6.5 shall grant
either Party, their Affiliates or agents, the right to publish any Confidential
Information, even if such information was furnished to the other Party for
purposes of conducting the pre-clinical or clinical studies or manufacture
Product. Orthovita shall have the authority to identify and require deletion
from the manuscripts of any of its Confidential Information.

          6.5.3 Except as otherwise set forth in this Section 6.5, neither Party
shall originate any publicity, news release or public announcements, relating
to this Agreement (including, without limitation, its existence, its subject
matter, the Parties' performance, any amendment hereto or performance
hereunder), whether to the public or press, stockholders or otherwise, without
the prior written consent of the other Party, save only such announcements that
are required by Law to be made or that are otherwise agreed to by the Parties.
Such announcements shall be brief and factual. If a Party decides to make an
announcement, whether required by law or otherwise, it shall give the other
Party at least 10 Business Days advance notice, where possible, of the text of
the announcement so that the other Party stall have an opportunity to comment
upon the announcement. To the extent that the receiving Party reasonably
requests the deletion of any information in the materials, the disclosing Party
shall delete such information unless, in the opinion of the disclosing Party's
legal counsel, such Confidential Information is legally required to be fully
disclosed.

     6.6 Compliance with HIPAA. BMPI shall treat all medical records of any
patient enrolled in any pre-clinical or clinical studies in accordance with all
state and federal laws, rules and regulations (including without limitation drug
and alcohol, psychiatric and HIV laws and regulations) regarding their
confidentiality, and with due regard to ethical considerations. Without limiting
the generality of the foregoing, BMPI acknowledges the duty to ensure that its
computer information systems and related internal policies and procedures must
be compliant with all applicable security and privacy requirements under final
regulations promulgated pursuant to HIPAA, and similar federal or state standard
transaction, privacy and security requirements, such that billing, recordkeeping
and other patient data requirements function accurately, without interruption
and in full compliance with applicable federal and state law. BMPI represents
and warrants that all necessary and appropriate measures have been undertaken or
will be taken to ensure HIPAA compliance, to the extent that BMPI is a "covered
entity," as such term is defined under HIPAA.

7. Intellectual Property.

     7.1 Compound. Orthovita shall remain the exclusive owner of all right,
title and interest in and to all intellectual property rights in Compound. No
license to or assignment of any patent, invention, patent right, material right,
or trade secret anywhere in the world by Orthovita is

                                       11

7. Intellectual Property.

     7.1 Compound. Orthovita shall remain the exclusive owner of all right,
title and interest in and to all intellectual property rights in Compound. No
license to or assignment of any patent, invention, patent right, material right,
or trade secret anywhere in the world by Orthovita is conveyed by this
Agreement. If Compound, alone and not in combination with any other substance or
object (including, without limitation, PDGF), infringes or misappropriates the
rights of any third party, Orthovita shall have the right, at its option, to (i)
procure the right to continue to supply Compound to BMPI for use as provided in
this Agreement; or (ii) terminate this Agreement without liability to BMPI,
except for Orthovita's indemnification obligations here under.

     7.2 Use of Name. BMPI does not have, and shall not acquire, any interest in
any of Orthovita's trademarks or trade names unless otherwise expressly agreed
by Orthovita in writing. Orthovita's name may appear on the packaging and
labeling for the Products and in material included therewith to the extent
required by law; provided, however, that each such use must be approved in
writing by Orthovita {which approval shall not be unreasonably withheld). BMPI
shall not otherwise use the name of Orthovita, or disclose the existence of
this Agreement for any marketing, advertising or promotional purpose, without
Orthovita's prior written consent.

     7.3 Inventions. Inventorship of any invention made by Orthovita or BMPI
pursuant to this Agreement shall be determined in accordance with Section 2 of
the Material Transfer Agreement dated as of December 11, 2001 entered into by
and between Orthovita and BMPI, and incorporated by reference herein (the
"Material Transfer Agreement"). Each party will cooperate with the other in
matters of patent protection consistent with the terms and conditions of this
Agreement. Except as provided for by Section 2 of the Material Transfer
Agreement, neither Orthovita nor BMPI may claim by virtue of this Agreement any
right, tide or interest in (a) any issued or pending patents owned or Controlled
by the other or (b) any invention, process or product arising out of the other's
previous research or development activities, whether or not patented or
patentable.

8. Representations and Warranties.

     8.1 Mutual Representations and Warranties. Each Party represents and
warrants to the other that (a) such Party is a corporation duly organized and
validly existing under the laws of the state or other jurisdiction of
incorporation or formation; (b) the execution and performance of this Agreement
by such Party has been duly authorized by all requisite corporate action; and
(c) the execution and performance by such Party of this Agreement and its
compliance with the terms and provisions hereof does not and, to its knowledge,
will not violate any law, rule or regulation applicable to such Party.

     8.2 Additional Representations and Warranties By BMPI. BMPI represents and
warrants to Orthovita that, to its knowledge, it owns or has Control of
technology for the use of PDGF that it intends (a) to investigate under an
approved IDE from the FDA (or other required FDA investigational applications as
necessary) and (b) to market and sell Product upon approval by the FDA.

                                       12

9. Disclaimer of Warranties. Limitation of Liability.

     9.1 Disclaimer of Warranties. EXCEPT AS OTHERWISE SET FORTH HEREIN, EACH
PARTY HEREBY DISCLAIMS ANY WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO
COMPOUND OR ANY OTHER INFORMATION OR MATERIALS PROVIDED BY ORTHOVITA HEREUNDER,
INCLUDING, WITHOUT LIMITATION, ANY WARRANTY Of MERCHANTABILITY, NON-INFRINGEMENT
OR FITNESS FOR A PARTICULAR PURPOSE.

     9.2 Limitation of Liability.

          9.2.1 EXCEPT FOR ANY BREACH OF THE OBLIGATIONS OF CONFIDENTIALITY SET
FORTH IN SECTION 6 AND FOR EACH PARTY'S INDEMNIFICATION OBLIGATIONS PURSUANT TO
SECTIONS 10.1 AND 10.2, NEITHER PARTY SHALL HAVE ANY LIABILITY TO THE OTHER
PARTY OR ITS AFFILIATES FOR ANY LOSS OF PROFITS, SPECIAL, INDIRECT,
CONSEQUENTIAL, EXEMPLARY, PUNITIVE OR INCIDENTAL DAMAGES ARISING OUT OF OR
RELATED TO THIS AGREEMENT HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY
(INCLUDING NEGLIGENCE), WHETHER OR NOT A PARTY HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES.

          9.2.2 ORTHOVITA'S LIABILITY FOR DAMAGES UNDER THIS AGREEMENT SHALL NOT
EXCEED THE TOTAL AMOUNT OF PAYMENTS MADE TO ORTHOVITA BY BMPI DURING THE
CONSECUTIVE 24 MONTHS PRIOR TO THE DATE OF THE FIRST EVENT GIVING RISE TO SUCH
LIABILITY.

10. Indemnification.

     10.1 Indemnification by Orthovita. Orthovita shall defend BMPI and its
directors, officers and employees from and against any and all claims and suits
brought by an independent third party to the extent based upon, and shall
indemnify and hold BMPI and its directors, officers and employees harmless from
and against any and all losses, damages, penalties, liabilities, judgments,
amounts paid in settlement, fines and expenses (including court costs and
reasonable fees of attorneys and other professionals) for (a) product liability
caused by Compound not in conformance with the Specifications at the time of
delivery or (b) any claim of infringement or misappropriation of any patent,
trade secret copyright or other proprietary right alleged to occur because of
Compound, alone and not in combination with any other substance or object
(including, without limitation, PDGF).

     10.2 Indemnification by BMPI. BMPI shall defend Orthovita and its
directors, officers and employees from and against any and all claims and suits
brought by an independent third party to the extent based upon, and shall
indemnify and hold Orthovita and its directors, officers and employees harmless
from and against any and all losses, damages, penalties, liabilities, judgments,
amounts paid in settlement, fines and expenses (including court costs and
reasonable fees of attorneys and other professionals) for (a) any product
liability or other claim relating to the unloading, storage, handling, use,
disposal or performance of the Compound provided to

                                       13

BMPI or the Product, except to the extent caused by Compound not in conformance
with the Specifications at the time of delivery or (b) any claim of infringement
or misappropriation of any patent, trade secret, copyright or other proprietary
right alleged to occur because of PDGF or Product.

     10.3 Indemnification Procedures. If any third party claim is commenced
against a party entitled to indemnification under this Section 10 (the
"Indemnified Party"), notice thereof shall be given to the party that is
obligated to provide indemnification (the "Indemnifying Party") as promptly as
practicable. If, after such notice, the Indemnifying Party shall acknowledge
that this Agreement applies with respect to such claim, then the Indemnifying
Party shall be entitled, if it so elects, in a notice promptly delivered to the
Indemnified Party, but in no event less than 10 days prior to the date on which
a response to such claim is due, to immediately take control of the defense and
investigation of such claim and to employ and engage attorneys reasonably
acceptable to the Indemnified Party to handle and defend the same, at the
Indemnifying Party's sole cost and expense. The Indemnified Party shall
cooperate, at the cost of the Indemnifying Party, in all reasonable respects
with the Indemnifying Party and its attorneys in the investigation, trial and
defense of such claim and any appeal arising therefrom; provided, however, that
the Indemnified Party may, at its own cost and expense, participate, through its
attorneys or otherwise, in such investigation, trial and defense of such claim
and any appeal arising therefrom. No settlement of a claim that involves a
remedy other than the payment of money by the Indemnifying Party shall be
entered into without the consent of the Indemnified Party. After notice by the
Indemnifying Party to the Indemnified Party of its election to assume full
control of the defense of any such claim, the Indemnifying Party shall not be
liable to the Indemnified Party for any legal expenses incurred thereafter by
such Indemnified Party in connection with the defense of that claim. If the
Indemnifying Party does not assume full control over the defense of a claim
subject to such defense as provided in this Section, the Indemnifying Party may
participate in such defense, at its sole cost and expense, and the Indemnified
Party shall have the right to defend the claim in such manner as it may deem
appropriate, at the cost and expense of the Indemnifying Party.

     10.4 General Liability Insurance. During the term of the Agreement, each
party shall maintain a policy or policies of commercial general liability
insurance in commercially reasonable amounts of no less than $10 million, and as
is customary in the industry.

11. Term and Termination.

     11.1 Term. The initial term of this Agreement shall commence on the
Effective Date and shall continue until the tenth anniversary of the Effective
Date (the "Initial Term"). Unless earlier terminated pursuant to this Agreement,
and upon mutual agreement of the Parties, this Agreement shall renew at the end
of the Initial Term for up to two five-year renewal terms (each, a "Renewal
Term," and together with the Initial Term, the "Term").

     11.2 Termination for Convenience. Orthovita and BMPI may each terminate
this Agreement for any reason upon 18 months prior written notice to BMPI in
accordance with the terms of Section 11.4 of this Agreement.

                                       14

     11.3 Termination for Cause.

          11.3.1 Except as set forth in Section 11.3.2, either Party may
terminate this Agreement for cause if the other Party materially breaches any
material provision of this Agreement and fails to cure such breach within 60
days after receipt of notice thereof; provided, however, if Orthovita; (a) fails
to deliver between 90% and 110% of the amount of Compound specified in a Firm
Order for any three consecutive Firm Orders or four Firm Orders within any
twelve month period, provided that such Firm Orders comply with the first
sentence of Section 2.4; or (b) delivers Defective Compound in a Firm Order for
any three consecutive Firm Orders of four Firm Orders within a twelve month
period, then BMPI may immediately terminate this Agreement for cause.

          11.3.2 Orthovita may terminate this Agreement for cause if BMPI
materially breaches any payment provision of this Agreement and fails to cure
such breach within 30 business days after receipt of notice thereof.

     11.4 Termination for Cessation of Production. Orthovita may terminate this
Agreement for any reason upon twelve months prior written notice to BMPI if
Orthovita plans to cease production of Compound; provided, however, that prior
to the effective date of termination, Orthovita shall provide to BMPI a
Wind-Down Supply of Compound. As used in this Agreement, "Wind-Down Supply"
means two times the amount of Compound set forth in any outstanding Firm Orders
and the most recent Rolling Forecast as of the date notice is given by Orthovita
to BMPI in accordance with this Section 11.4. BMPI shall pay Orthovita for the
Wind-Down Supply in accordance with Section 4. Orthovita shall provide the
Wind-Down Supply to BMPI during the 12-month notice period.

     11.5 Termination for Insolvency or Termination of Business Activities.
Either Party may terminate this Agreement if the other Party becomes insolvent
or is the subject of a petition in bankruptcy whether voluntary or involuntary
or of any other proceeding under bankruptcy, insolvency or similar laws, makes
an assignment for the benefit of creditors, is named in such a petition, or its
property is subject to a suit for the appointment of a receiver, or is dissolved
or liquidated. Such termination right may be exercised within 60 days following
the date as of which the Party entitled to terminate receives knowledge of such
insolvency or termination of business activities by the other Party, by giving
the terminated Party written notice.

     11.6 Survival. Sections 4.4, 4.5, 6, 7, 9, 10, 11.6 and 12; any payment
obligations of the parties hereunder accruing prior to the date of termination;
and any other provision herein expressly surviving termination or necessary to
interpret the rights and obligations of the parties in connection with the
termination of the term of this Agreement will survive the termination or
expiration of this Agreement.

12. Miscellaneous.

     12.1 Governing Law. This Agreement shall be construed, and the respective
rights of the Parties determined, according to the substantive law of the
Commonwealth of Pennsylvania, without regard to its conflict of laws provisions.
The UNCITRAL Convention for the

                                       15

International Sale of Goods, as well as any other unified law relating to the
conclusion and implementation of contracts for the international sale of goods,
shall not apply.

     12.2 Entire Agreement. This Agreement, together with any agreement of even
date herewith and signed by the parties hereto, constitutes the sole and only
agreement between the parties hereto pertaining to the subject matter covered
hereby, and, effective as of the date of this Agreement, supersedes and cancels
any and all other oral or written agreements or understanding between or assumed
by the parties or either of them with respect to the subject matter of this
Agreement (including, without limitation except for Section 2, the Material
Transfer Agreement), but without prejudice as to any liability which may have
accumulated thereunder. For the avoidance of doubt, any Compound provided to
BMPI under the Material Transfer Agreement will now be covered by the provisions
of this Agreement.

     12.3 No Waiver. Failure of either Party to insist upon a strict and
punctual performance of any of the provisions hereof shall not constitute a
waiver or an estoppel against asserting the right to require such performance,
nor shall a waiver or estoppel in one instance constitute a waiver or estoppel
with respect to a later breach, whether of similar nature or otherwise. The
observance of any provision of this Agreement may be waived (either generally or
in a particular instance and either retroactively or prospectively) by the Party
entitled to enforce such provision, but any such waiver shall be effective only
if in writing signed by the Party against whom such waiver is to be asserted.

     12.4 Severability. In the event of the invalidity of any provisions of this
Agreement or if this Agreement contains any gaps, the Parties agree that such
invalidity or gap shall not affect the validity of the remaining, provisions of
this Agreement. The Parties will replace an invalid provision or fill any gap
with a valid provision that most closely approximates the purpose and economic
effect of the invalid provision or, in case of a gap, the Parties' intentions.
In the event that the provisions of this Agreement are materially altered as a
result of the preceding sentences, the Parties shall renegotiate the provisions
of this Agreement in order to resolve any inequities. Nothing in this Agreement
shall be interpreted so as to require either Party to violate any applicable
laws, rules or regulations.

     12.5 Modifications and Amendments. No modification or amendment of this
Agreement shall be effective unless submitted and agreed to in writing by the
duly authorized representatives of the parties hereto.

     12.6 Assignment. This Agreement may not be assigned in whole or in part by
either Party without the prior written consent of the other Party (which consent
shall not be unreasonable withheld or delayed); provided, however, that (a)
Orthovita may assign this Agreement to an Affiliate without BMPI's prior written
consent and (b) either Party may assign this Agreement in connection with a
merger or a sale of all or substantially all of its stock or assets without the
other Party's prior written consent. The provisions of this Agreement Shall be
binding upon the successors and assigns of the parties hereto.

     12.7 Counterparts. This Agreement may be executed in duplicate, both of
which shall be deemed to be originals, and both of which shall constitute one
and the same agreement.

                                       16

     12.8 No Agency. Nothing herein contained shall be deemed to create an
agency, joint venture, amalgamation, partnership or similar relationship between
Orthovita and BMPI. Notwithstanding any of the provisions of this Agreement,
neither Party shall at any time enter into, incur or hold itself out to third
parties as having authority to enter into or incur, on behalf of the other
Party, any commitment, expense or liability whatsoever, and all contracts,
expenses and liabilities undertaken or incurred by one Party in connection with
or relating to the development, manufacture or sale of Products shall be
undertaken, incurred or paid exclusively by that Party, and not as an agent or
representative of the other Party.

     12.9 Notices. Unless otherwise provided for in this Agreement, any notice
or request required or permitted to be given under or in connection with this
Agreement or the subject matter hereof, shall be given in the English language
in writing by prepaid registered or first-class airmail, telex or telefax to the
recipient at its address as set forth hereunder or to such other address or
addressee as may have therefor been furnished in writing by the recipient to the
sending Party. Any such aforementioned notice or request shall be deemed to be
effective upon receipt by the Party to which it is addressed. Any notice to be
sent by a Party pursuant to this Agreement shall be addressed:

   If to Orthovita:   Joseph M. Paiva, Chief Financial Officer
                      Orthovita, Inc.
                      45 Great Valley Parkway
                      Malvern, PA 19355
                      (610)640-2603

                      with a copy to:

                      Manya S. Deehr
                      Morgan, Lewis & Bockius LLP
                      1701 Market Street
                      Philadelphia, Pa 19103
                      (877) 432-9652

   If to BMPI:        Dr. Samuel E. Lynch
                      President and CEO
                      BioMimetic Pharmaceuticals, Inc.
                      1616 Westgate Circle
                      Brentwood, TN 37027
                      (615)844-1280

                      with a copy to:

                      Mark Manner
                      Harwell Howard Hyne Gabbert & Manner, P.C.
                      18O0 AmSouth Center
                      315 Deaderick Street
                      Nashville, TN 37238
                      (615)256-0500

                                       17

     12.10 Headings. The paragraph headings are for convenience only and will
not be deemed to affect in any way the language of the provisions to which they
refer.

[Signature page follows]

                                       18

     IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be
executed by their duly authorized representatives as of the day and year first
above written.

Orthovita, Inc.                   BioMimetic Pharmaceuticals Inc.

By: /s/ Joseph M. Paiva           By: /s/ Samuel E. Lynch
    ---------------------------       ---------------------------
Name: Joseph M. Paiva             Name: Samuel E. Lynch
Title: Chief Financial Officer    Title: President

                                       19

                                    EXHIBIT A
                             DESCRIPTION OF COMPOUND

o    b -TriCalcium Phosphate (b-TCP) as described in Exhibit E

o    calcium/phosphorous ratio of **

o    granules in a size range from **

o    sub-micron primary particle (crystallite)

o    greater than ** open and interconnected (poly)porosity

                                       20

**   REPRESENTS MATERIAL WHICH HAS BEEN REDACTED AND SEPARATELY FILED WITH THE
     SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
     TREATMENT PURSUANT TO RULE 406 UNDER THE SECURITIES ACT OF 1933, AS
     AMENDED.

                                    EXHIBIT B
                               DESCRIPTION OF PDGF

o    becalpermin - recombinant human platelet-derived growth factor (rhPDGF-BB)

o    Molecular weight ** approximately

o    Homodimer of two identical polypeptide chains cross linked through
     disulfide bonds

                                       21

**   REPRESENTS MATERIAL WHICH HAS BEEN REDACTED AND SEPARATELY FILED WITH THE
     SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
     TREATMENT PURSUANT TO RULE 406 UNDER THE SECURITIES ACT OF 1933, AS
     AMENDED.

                                   EXHIBIT C

     AGGREGATE ANNUAL COMPOUND MINIMUM ORDER REQUIREMENTS AND COMPOUND PRICE

During the Term of this Agreement the unit of measure for all Firm Orders shall
be at least one kilogram, and BMPI shall make minimum annual Firm Orders as
follows:

During the first 12 months after the date that the Initial Firm     10 Kilograms
Order is placed:

Between the first anniversary of the date that the Initial Firm     12 Kilograms
Order is placed-and the second anniversary:

Between the second anniversary of the date that the Initial Firm    15 Kilograms
Order is placed and the third anniversary:

Annually after the third anniversary of the date that the Initial   20 Kilograms
Firm Order is placed and during the remainder of the Term:

                             COMPOUND PRICE PER GRAM

-----------------------------------------------------------------------------------------------------
       ANNIVERSARY--          FOR MINIMUM ANNUAL   COMPOUND PRICE PER GRAM FOR KILOGRAMS ORDERED IN
        TIME PERIOD          FIRM ORDER QUANTITY   EXCESS OF THE MINIMUM ANNUAL FIRM ORDER QUANTITIES
-----------------------------------------------------------------------------------------------------
                             Quantity     Price      From 1    From 6   From 11   From 16    From 21
                                        per Gram    kgs. to   kgs. to     kgs.     kgs to   kgs. and
                                                     5 kgs.   10 kgs.    to 15     20 Kgs     over
                                                                          kgs.
-----------------------------------------------------------------------------------------------------

First 12 months after the    10 kgs.     **          **        **        **        **        **
Initial Firm Order
-----------------------------------------------------------------------------------------------------
Between the 1st and 2nd      12 kgs.     **          **        **        **        **        **
anniversary after the
Initial Firm Order
-----------------------------------------------------------------------------------------------------
Between the 2nd and 3rd      15 kgs.     **          **        **        **        **        **
anniversary after the
Initial Firm Order
-----------------------------------------------------------------------------------------------------
Between the 3rd and 4th      20 kgs.     **          **        **        **        **        **
anniversary after the
Initial Firm Order
-----------------------------------------------------------------------------------------------------

After the fourth anniversary of the Initial Firm Order, the Compound Price per
gram may increase once each year at the same rate as the Consumer Price Index as
reported for the prior 12-month period by the United States Federal Government.

                                       22

**   REPRESENTS MATERIAL WHICH HAS BEEN REDACTED AND SEPARATELY FILED WITH THE
     SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
     TREATMENT PURSUANT TO RULE 406 UNDER THE SECURITIES ACT OF 1933, AS
     AMENDED.

BMPI shall also pay Orthovita $500 per lot of Compound to reimburse the cost
incurred by Orthovita for release testing in accordance with the Specifications
for Compound noted in Exhibit E for testing porosity by mercury porosimetry and
endotoxin by L.A.L. BMPI shall also pay Orthovita no greater than $500 for
testing agreed-to-tests within the Certificate of Analysis for the assessment of
the shelf life of the bulk Compound.

                                       23

                                    EXHIBIT D
                            ORTHOVITA CONTACT PERSON

Joseph M.Paiva, Chief Financial Officer
Orthovita, Inc.
45 Great Valley Parkway
Malvern, PA 19355

                                       24

                                    EXHIBIT E
                           SPECIFICATIONS FOR COMPOUND

Test: X-Ray Diffraction (XRD)   Specification: Minimum ** 'b'-TCP,+/- 5%

Test: Surface Area by BET

      Specification: **

Test: Heavy Metals Testing--Inductive Coupled Plasma (ICP)

      Specification: Pb: < **ppm; Hg: < **ppm; As: < **ppm; Cd: < **ppm

Test: Nominal Particle Size Range
      Sieving (screening with US standardized meshes, sieve numbers 18 and 60)

      Specification: **

Test: Porosity by Mercury Porosimetry

      Specification: >** porous

Test: Fourier Transform Infrared Spectroscopy (FTIR)

      Specification: Match to beta-TCP library spectra

Test: Endotoxin
      L.A.L.

      Specification: <** EU/ml

                                       25

**   REPRESENTS MATERIAL WHICH HAS BEEN REDACTED AND SEPARATELY FILED WITH THE
     SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
     TREATMENT PURSUANT TO RULE 406 UNDER THE SECURITIES ACT OF 1933, AS
     AMENDED.

                                    EXHIBIT F
                             DESCRIPTION OF PRODUCT

A two-component device composed of:

     o    A sterile container of Compound

     o    A container containing a solution of rhPDGF-BB

The components are individually packaged together in a single unit as Product.

                                       26

                                    EXHIBIT G
                               FORM OF THE INVOICE

                                       27

                                    EXHIBIT H
                          COMPOUND STORAGE INSTRUCTIONS

Controlled room-temperature, dry storage in a tight container as described in
the United States Pharmacopeia 25 NF20 page 9, 2002 Edition, received from
Orthovita.

                                       28

                                    EXHIBIT I
                             CERTIFICATE OF ANALYSIS

                              Please see attached.

                                       29

================================================================================

[ORTHOVITA LOGO]                    8160-0070                        Page 1 of 1
                             CERTIFICATE OF ANALYSIS

================================================================================
REFERENCE QUALITY INSPECTION PROCEDURE 3400-0091
--------------------------------------------------------------------------------
PART NUMBER                    PRODUCT NAME                     CUSTOMER
           2400-0088              B-TCP **                            BioMimetic
--------------------------------------------------------------------------------
LOT NUMBER                     QUANTITY                         PO NUMBER

--------------------------------------------------------------------------------
Orthovita certifies the above lot was screened to a particle size range of
**, utilizing US standard sieve numbers **.
--------------------------------------------------------------------------------
APPROVED BY                    TITLE                            DATE

                                  Sr. Process Engineer
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
TEST PERFORMED                                   SPECIFICATION       RESULTS
--------------------------------------------------------------------------------
X-Ray Diffraction (XRD)                          **
--------------------------------------------------------------------------------
Porosity by Mercury Porosimetry                  **
--------------------------------------------------------------------------------
BET Surface Area                                 **
--------------------------------------------------------------------------------
Heavy Metals by ICP                              **
                                                 **
                                                 **
                                                 **
--------------------------------------------------------------------------------
Fourier Transform Infrared Spectroscopy (FTIR)   **
--------------------------------------------------------------------------------
Bacterial Endotoxins by LAL                      **
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
APPROVED BY                    TITLE                            DATE

--------------------------------------------------------------------------------
APPROVED BY                    TITLE                            DATE

                                  Director of Quality Assurance
--------------------------------------------------------------------------------

                                 Orthovita, Inc.
                             45 Great Valley Parkway
                                Malvern, PA 19355
                            Telephones: 610.640.1775
                                Fax: 610.640.1714

                                                              01-Feb-02: Rev. 00
================================================================================
**   REPRESENTS MATERIAL WHICH HAS BEEN REDACTED AND SEPARATELY FILED WITH THE
     SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
     TREATMENT PURSUANT TO RULE 406 UNDER THE SECURITIES ACT OF 1933, AS
     AMENDED.Exhibit 10.7

                         EXCLUSIVE SUBLICENSE AGREEMENT

     This Exclusive Sublicense Agreement ("Agreement") is entered into on
December 9, 2003 ("Effective Date") between BioMimetic Pharmaceuticals, Inc.
("BMPI"), a Delaware corporation and Luitpold Pharmaceuticals, Inc.
("Luitpold"), a New York corporation (each, individually, a "Party" and,
collectively, the "Parties").

                                    RECITALS

     BMPI has licensed the Licensed Patent Rights, as hereinafter defined, from
each of Harvard University and Zymogenetics, Inc. (each a "Licensor" and
collectively, the "Licensors");

     Luitpold desires to obtain an exclusive worldwide sublicense for the
Licensed Patent Rights in accordance with the terms of this Agreement;

     BMPI is willing to grant an exclusive worldwide sublicense for the Licensed
Patent Rights in the Field of Use and the Field of Extended Use, as hereinafter
defined, to Luitpold on the terms and conditions set forth herein;

     NOW THEREFORE, in consideration of the mutual covenants contained herein,
it is agreed by the Parties as follows:

                                 1. DEFINITIONS

     1.1 "Affiliate" means any company, corporation, business or entity
controlled by, controlling, or under common control with either Luitpold or
BMPI. "Control" means direct or indirect beneficial ownership of at least fifty
percent (50%) interest in the voting stock (or the equivalent) of such
corporation or other business or having the right to direct, appoint or remove a
majority or more of the members of its board of directors (or their equivalent),
or having the power to control the general management of such company,
corporation, business or entity, by contract, law or otherwise.

     1.2 "Approval Date" means the date BMPI obtains approval from the FDA or is
granted a "CE" mark or another form of marketing authorization in the European
Union, whichever occurs first, to market and sell Licensed Products anywhere in
the Territory in the Field of Use for humans only.

     1.3 "Distributor" means any non-Affiliate to whom Luitpold both sells
Licensed Products and grants a right to distribute (but not to make or have
made) such Licensed Products in a defined territory.

     1.4 "FDA" means the United States Food and Drug Administration or its
successor.

     1.5 "Field of Use" means all uses related to the treatment, cure, or relief
of mammals for periodontal diseases and/or the repair, restoration or
reconstruction of oral and cranio-maxillofacial osseous defects.

     1.6 "Field of Extended Use" shall mean all uses outside the Field of Use
that are related to the treatment and healing of bone, cartilage, tendon and
ligaments of the skeletal tissue system in animals (excluding humans), excluding
the treatment and healing of soft tissue wounds.

     1.7 "Improvement" means any modification, alteration, enhancement or
improvement to the Licensed Technology or any Licensed Product.

     1.8 "Know-how" means BMPI's technical and other information related to the
Licensed Patent Rights including, without limitation, ideas, concepts,
inventions, discoveries, data, formulae, specifications, processes, procedures
for experiments and tests and other protocols, results of experimentation and
testing, media formulations, fermentation, recovery and purification techniques
and assay protocols whether or not covered by any patent, copyright design,
trademark or other industrial or intellectual property rights.

     1.9 "Licensed Patents" means the Valid Claims of (a) the patents and the
patent applications listed on Exhibit A (attached hereto and made part of this
Agreement); and (b) any patents and patent applications owned or licensed by
BMPI arising from the patents listed on Exhibit A to the extent any Valid Claim
of such patents or patent applications would, in the absence of the licenses
contemplated hereunder, bar the use or sale within the Field of Use or the Field
of Extended Use of a product by Luitpold (treating for this purpose any Valid
Claim in pending patent applications as if they had been issued); and (c) all
patents hereafter issuing from the patents and patent applications described in
the immediately preceding clauses (a) and (b) throughout the world, whether
national or regional, and including any divisions, renewals, reexaminations,
continuations, continuations-in-part, extensions or reissues thereof, and any
supplementary protection certificates. Exhibit A will be updated by BMPI on at
least an annual basis.

     1.10 "Licensed Patent Rights" means all rights under the Licensed Patents
that are granted to Luitpold by BMPI in Section 2.

     1.11 "Licensed Product(s)" means any product consisting essentially of
rhPDGF-BB in the absence of other growth-promoting proteins and in combination
with a synthetic or natural matrix, or any part thereof, which (a) is covered by
the Licensed Technology; (b) is developed through the use of a process which is
covered by the Licensed Technology; or (c) could not be manufactured, used or
sold without the incorporation or use in whole or in part of some or all of the
Licensed Technology.

     1.12 "Licensed Technology" means Know-how and the Licensed Patent Rights.

     1.13 "Net Sales" means the amounts invoiced by Luitpold or any of its
Affiliates or Distributors during the term of this Agreement for the worldwide
sale of Licensed Products to bona fide independent third parties, including any
amounts that may be invoiced for samples, less: (a) normal and customary
rebates, trade, or quantity and cash discounts, including credit card fees,
actually taken or incurred; (b) sales, use and/or excise taxes, custom duties or
other governmental charges (other than taxes imposed on Luitpold's, an
Affiliate's or a Distributor's net income) actually paid in connection with
sales of Licensed Products; (c) amounts actually allowed or credited due to
refunds, returns and replacements; (d) up to 2% of gross sales,

                                        2

representing an estimate of the cost actually paid by Luitpold, an Affiliate or
a Distributor, as applicable, for any bulk packages and packing, freight charges
and insurance which amount will, at the request of BMPI, be reconciled to actual
costs annually; and (e) amounts written off for bad debt. In the case of (a) and
(c), such amounts shall be deductible only to the extent the same are identified
on the invoice to the customer or other documentation maintained in the ordinary
course of business. Net Sales also includes the fair market value of any
non-cash consideration received by Luitpold, its Affiliates or Distributors for
the sale, lease or transfer of Licensed Products.

     1.14 "Territory" means worldwide.

     1.15 "Valid Claim" means with respect to the Licensed Patents (a) a claim
of a pending patent application; or (b) a claim of an issued patent which has
not lapsed or become abandoned or been declared invalid or unenforceable by a
court of competent jurisdiction or an administrative agency from which no appeal
has been taken after ninety (90) days.

                                    2. GRANT

     2.1 Exclusive License. BMPI hereby grants to Luitpold, and Luitpold hereby
accepts from BMPI, subject to the terms and conditions herein specified, an
exclusive worldwide license under the Licensed Technology to use, offer to sell,
sell, and otherwise commercialize, solely in the Field of Use and the Field of
Extended Use, Licensed Product(s) purchased from BMPI. Notwithstanding the
foregoing exclusive sublicense, BMPI reserves the right to use the Licensed
Products for purposes of conducting trials and other tests with respect to the
treatment and healing of bone, cartilage, tendon and ligaments of the skeletal
tissue system on animals in studies related to development of safety and
efficacy information needed for the technology for human use and applications
provided BMPI will share all such information with Luitpold. Any rights not
expressly granted pursuant to this Agreement shall be reserved to BMPI. Except
pursuant to the terms of this Agreement, BMPI will not exercise any rights under
the Licensed Patent Rights.

     2.2 Sublicenses. BMPI hereby grants to Luitpold, and Luitpold hereby
accepts from BMPI, upon the terms and conditions herein specified, the right to
grant sublicenses under the Licensed Technology to Distributors to use, offer to
sell and sell, in the Field of Use and the Field of Extended Use, Licensed
Products purchased from BMPI; provided, however, that before any such sublicense
is executed, Luitpold shall provide BMPI with at least the following information
with respect to the proposed Distributor: (a) the identity of the proposed
Distributor; (b) a description of the Licensed Product and the scope of the
sublicense being granted; and (c) the territory in which the proposed
Distributor will have rights under the sublicense. In the event that the
proposed Distributor is not an Affiliate of Luitpold, Luitpold shall obtain the
prior written consent of BMPI to such sublicense, which shall not be
unreasonably withheld, conditioned or delayed after approval to market by the
appropriate agency. Luitpold will be responsible for the payment of any
royalties or other payments provided for hereunder, regardless of whether the
terms of any sublicense provide for such amount to be paid by a Distributor
directly to BMPI. Each sublicense granted by Luitpold shall be consistent with
and subordinate to the terms and conditions of this Agreement. This Agreement,
in the event BMPI's License Agreement with Harvard University through which BMPI
is licensing any

                                        3

Patent Rights thereunder is terminated, will be terminated or assigned to
Harvard University, only with respect to the patents licensed from Harvard
University, exclusively at Harvard University's option. BMPI agrees not to take
any action or omit to take any action that would cause the License Agreement
with Harvard University to be terminated.

     2.3 Due Diligence Milestones. Luitpold shall proceed diligently to bring
Licensed Products into commercial use in the Field of Use for humans as quickly
as is reasonably possible after the Approval Date. Luitpold shall be deemed to
satisfy the foregoing obligation if Luitpold has made at least one sale of the
Licensed Products to a Distributor or another third party solely for use in the
Field of Use ("First Sale") within ** days after the Approval Date.

     2.4 Regulatory Approvals.

          (a) Subject to Section 6.4, BMPI shall obtain, at its sole expense,
     regulatory approvals required by the FDA, and in Canada and the CE mark in
     the European Union for Luitpold to exercise the rights granted in Sections
     2.1 and 2.2 above in the Field of Use for humans (but not animals) in the
     United States, the European Union and Canada. BMPI shall have the exclusive
     right to communicate with the FDA and counterpart agencies in the European
     Union and Canada regarding regulatory or other approval of the Licensed
     Products in the Field of Use for humans, and Luitpold shall not initiate
     any communication with any such agency except for purposes of Section 6.4.
     If Luitpold is contacted directly by the FDA or any counterpart agency or
     body in the European Union and Canada, Luitpold shall promptly notify BMPI
     and shall cooperate with BMPI in responding to any such communication.

          (b) Upon regulatory approval of applications for uses outside the
     Field of Use and the Field of Extended Use, BMPI will assign all regulatory
     approvals within the Field of Use and the Field of Extended Use to
     Luitpold. BMPI will retain the right to review and approve all related
     regulatory or other filings made by Luitpold.

                             3. TERM AND TERMINATION

     3.1 Term. The term of this Agreement shall be for a period beginning on the
Effective Date and extending, on a country by country basis, until the later of
(a) the last to expire Valid Claim that covers a Licensed Product in that
country, or (b) December 31, 2014. Luitpold's obligation to pay royalties shall
expire on a country-by-country basis. The Agreement may be extended by mutual
consent of the parties. If extended, Section 4.3, among other provisions,
survives for so long as Luitpold relies upon Know-how, trademarks, trade secrets
and/or other proprietary technology or information developed by BMPI.

     3.2 Termination.

          (a) In the event that one Party commits any material breach of this
     Agreement, unless this Agreement provides a different remedy, the
     non-breaching Party may terminate this Agreement at its option by giving
     the breaching Party not less than sixty (60) days written notice of its
     election to terminate as of a stated date. In addition to its option to
     terminate, BMPI shall have the right to convert this Agreement to a
     non-exclusive sublicense. Such notice shall state the nature of the
     defaults claimed by the

                                        4

**   REPRESENTS MATERIAL WHICH HAS BEEN REDACTED AND SEPARATELY FILED WITH THE
     SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
     TREATMENT PURSUANT TO RULE 406 UNDER THE SECURITIES ACT OF 1933, AS
     AMENDED.

     non-breaching Party. The breaching Party during said sixty (60) day period
     may cure any default stated in said notice and if such default is cured or,
     if such default is not a failure to pay an amount due and will reasonably
     take longer than sixty (60) days to cure and the breaching Party is
     diligently pursuing such cure, this Agreement shall continue in full force
     and effect as if such notice had not been given. Additionally, in the event
     Luitpold commits a material breach of that certain Research, Development
     and Marketing Agreement by and between BMPI and Luitpold dated December 9,
     2003 or that certain Manufacturing and Supply Agreement by and between BMPI
     and Luitpold dated December 9, 2003, this entire Agreement shall terminate,
     or, at BMPI's option, Luitpold's rights under this Agreement may become
     non-exclusive.

          (b) In the event either Party shall become insolvent or shall cease
     business, or shall file a voluntary petition or an answer admitting the
     jurisdiction of the court and the material allegations of, or shall consent
     to, an involuntary petition pursuant to or purporting to be pursuant to any
     reorganization or insolvency law of any jurisdiction, or shall make an
     assignment for the benefit of creditors, or shall apply for or consent to
     the appointment of a receiver or trustee for a substantial part of its
     property then, at the option of the other Party, this Agreement shall
     terminate effective as of a date ten (10) days following written notice by
     the Party intending to terminate.

     3.3 Effect of Termination. Upon termination or expiration of this
Agreement, BMPI shall have the option to repurchase from Luitpold any Licensed
Products that are in Luitpold's inventory on the effective date of such
termination. The repurchase price for License Products in good condition in
unopened, undamaged packaging shall be the price paid by Luitpold; the price for
Licensed Products in damaged or opened packaging or otherwise not in good
condition shall be subject to mutual agreement by the Parties in good faith.
Luitpold may continue to sell any Licensed Products that are not repurchased by
BMPI for up to one hundred eighty (180) days after the effective date of
expiration or termination and shall pay to BMPI any royalties which may accrue
on such sales.

     3.4 Survival. Article 1, Sections 3.3 and 3.4, and Articles 4, 6, 7, 10,
and 11 shall survive termination or expiration of this Agreement.

                              4. FEES AND ROYALTIES

     4.1 Royalties. Luitpold, in exchange for the rights granted to Luitpold
under this Agreement, shall pay or cause to be paid to BMPI royalties equal to
** of Net Sales of any Licensed Product. In addition, in the event that
aggregate royalties BMPI must pay to its respective licensors exceed the ** that
Luitpold is paying BMPI, Luitpold will pay such excess up to an additional ** of
Net Sales; however, in such case, upon the last to expire of the Valid Claims
under the Licensed Patents identified with an asterisk (*) on Exhibit A.
Luitpold shall be entitled to a non-refundable royalty credit effective on such
date which may be applied solely against future royalty payments from Luitpold
to BMPI. The total amount of the credit shall be equal to all prior royalties
paid by Luitpold to BMPI under this Agreement but only to the extent such
royalties exceeded ** of total Net Sales and provided further that such credit
will not reduce any royalties then due and payable by Luitpold for a given
quarter by more than fifty percent (50%). Upon expiration of this

                                        5

**   REPRESENTS MATERIAL WHICH HAS BEEN REDACTED AND SEPARATELY FILED WITH THE
     SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
     TREATMENT PURSUANT TO RULE 406 UNDER THE SECURITIES ACT OF 1933, AS
     AMENDED.

Agreement on or after 2014, one-half of any remaining credit shall be refunded
by BMPI to Luitpold.

     4.2 Minimum Royalties. In the first twelve (12) months following the First
Sale, the royalties payable by Luitpold to BMPI pursuant to Section 4.1 shall
not be less than **. In the second twelve (12) months following the First Sale,
the royalties payable by Luitpold to BMPI pursuant to Section 4.1 shall not be
less than **. In the third through the sixth twelve (12) month period following
the First Sale, the royalties payable by Luitpold to BMPI pursuant to Section
4.1 shall not be less than **. The payment of minimum royalties will be
contingent upon adequate supply of the Licensed Products by BMPI to Luitpold. So
long as BMPI is required to provide such supply, if BMPI does not or cannot
supply an adequate supply of Licensed Product to Luitpold, the minimum royalties
for the calendar year(s) shall be reduced on a prorated basis to reflect the
amount that could not be supplied; however, if Luitpold is able to obtain an
alternative supply, this exception shall not apply and Luitpold will be
obligated to pay the minimum royalties.

     4.3 Royalty Reduction. Upon and after the expiration of the last to expire
of the Valid Claims under the Licensed Patents, the royalty rate set forth in
Section 4.1 shall be reduced for the remaining term of the Agreement to ** of
Net Sales in consideration for use by Luitpold and the Distributors of BMPI's
Know-how, trade secrets, trademarks and/or other proprietary technology
independent of any Licensed Patent Rights.

     4.4 Additional Royalties. In addition to the royalties set forth in Section
4.1, Luitpold agrees to pay to BMPI ** of any license fees and milestone
payments other than payments in respect of or measured by Net Sales, received by
Luitpold or any Affiliate from ** for rights to distribute the Licensed Products
to U.S. hospitals and surgical centers for the repair, restoration or
reconstruction of cranio-maxillofacial osseous defects.

     4.5 Milestone Payments. BMPI will provide Luitpold written notice of the
achievement of each of the milestone events (a) and (b) set forth below and
Luitpold shall pay the relevant milestone amounts within thirty (30) days of
such notice. Luitpold shall provide BMPI written notice within thirty (30) days
of the achievement of each of the milestone events (c)-(h) set forth below and
Luitpold shall pay the relevant amounts to BMPI as milestone payments with such
notice; provided, however, that Luitpold shall be required to pay such amounts
if, and only if, its achievement of the applicable milestone obligates BMPI to
make a milestone payment to any Licensor:

          (a) ** within thirty (30) days after the date on which regulatory
     approval is first received in the United States to market the Licensed
     Products in the Field of Use, of which ** shall be payable for the rights
     granted under the Licensed Patents identified with an asterisk (*) on
     Exhibit A and ** shall be payable for the rights granted under the Licensed
     Patents not identified with an asterisk (*) on Exhibit A;

                                        6

**   REPRESENTS MATERIAL WHICH HAS BEEN REDACTED AND SEPARATELY FILED WITH THE
     SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
     TREATMENT PURSUANT TO RULE 406 UNDER THE SECURITIES ACT OF 1933, AS
     AMENDED.

          (b) ** on the second anniversary of the Approval Date of which **
     shall be payable for the rights granted under the Licensed Patents
     identified with an asterisk (*) on Exhibit A and ** shall be payable for
     the rights granted under the Licensed Patents not identified with an
     asterisk (*) on Exhibit A;

          (c) ** upon filing an Investigational New Drug Application or an
     equivalent foreign filing for regulatory approval of a Licensed Product in
     the Field of Extended Use;

          (d) ** upon initiation of a Phase III or pivotal clinical trial, as
     "Phase III" is defined by Title 21: chapter 1 - Food and Drug
     Administration, Department of Health and Human Services for a Licensed
     Product in the Field of Extended Use;

          (e) ** upon filing a Biologies License Application or an equivalent
     foreign filing for a Licensed Product in the Field of Extended Use;

          (f) ** upon receipt of FDA approval to market a Licensed Product in
     the Field of Extended Use;

          (g) ** on the first anniversary of receipt of FDA approval to market a
     Licensed Product in the Field of Extended Use; and

          (h) ** on the second anniversary of receipt of FDA approval to market
     a Licensed Product in the Field of Extended Use.

     Luitpold shall provide BMPI with written notice of the achievement of any
milestone, accompanied by the applicable milestone payment, within thirty (30)
days after the achievement of such milestone. Milestones (c) through (h) shall
be deemed achieved by Luitpold if achieved by Luitpold, an Affiliate of
Luitpold, a Distributor, or an agent or contractor of Luitpold, an Affiliate or
a Distributor. In the event Luitpold pays for any milestone payment described in
(c) through (e) above, BMPI will be obligated to refund such individual
milestone payment(s) to Luitpold if BMPI subsequently achieves any or all of the
same milestones that, but for Luitpold's previous payment of the same milestone,
would have triggered a milestone payment obligation from BMPI to a Licensor.

     4.6 Sale Bonus Payment. No later than March 15th of the year following the
first (but only the first) calendar year in which worldwide Net Sales by
Luitpold and its Affiliates or Distributors of the Licensed Products for use in
the Field of Extended Use, combined with BMPI's sales in human orthopedic
related indications, exceeds ** Luitpold will pay a sales bonus, not to exceed
**, to BMPI equal to its pro rata share of ** based on Luitpold's sales in the
Field of Extended Use and BMPI's sales in human orthopedics. Luitpold shall pay
a Sales Bonus Payment if, and only if, its sales

                                        7

**   REPRESENTS MATERIAL WHICH HAS BEEN REDACTED AND SEPARATELY FILED WITH THE
     SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
     TREATMENT PURSUANT TO RULE 406 UNDER THE SECURITIES ACT OF 1933, AS
     AMENDED.

alone in the Field of Extended Use, or in total with BMPI's sales in human
orthopedics, trigger a ** sales bonus payment to Zymogenetics, Inc.

     4.7 Non-Cash Payments. If any payment for which Luitpold owes BMPI a
payment pursuant to this Section 4 is made other than in cash, Luitpold shall
pay BMPI pursuant to this Section 4 in cash based on the fair market value of
the non-cash payment received by Luitpold, and BMPI shall have no obligation to
accept any non-cash payment from Luitpold.

     4.8 Schedule and Form of Payment/Taxes. Luitpold shall pay royalties on a
calendar quarter basis and payments shall be due and payable with the reports
required by this Section 4.8 thirty (30) days following the close of the
relevant accounting period. Each such payment shall be accompanied by a report
for the period covered showing the total number or volume of Licensed Products
sold and total Net Sales, each on a country-by-country basis, the exchange rate
used to convert any payments into United States dollars, and total royalties
due, if any. All royalties and other amounts payable to BMPI hereunder shall be
payable in United States dollars. Luitpold shall, when required to do so by
applicable law, be responsible for the payment of all withholding taxes imposed
by any country on any royalty or other amounts payable to BMPI hereunder and
shall withhold such taxes from the amounts payable to BMPI hereunder. Luitpold
will supply BMPI with evidence of such payment of withholding tax, in a form
acceptable to BMPI to meet the requirements for claiming foreign tax credits on
BMPI's federal income tax return. Notwithstanding the foregoing, if the law of
any foreign country prevents any payment payable to BMPI hereunder to be made in
the United States of America or prevents any such payment to be made in United
States dollars, BMPI agrees to accept such payment in form and place as
permitted, including deposits by Luitpold in the applicable foreign currency in
a local bank or banks in such country designated by Luitpold. If any currency
conversion is required in connection with any payment to BMPI hereunder such
conversion shall be made at the average of the buying rate and the selling rate
for the transfer of such other currency into United States Dollars as quoted by
Citicorp Bank (New York), or its successor, on the last business day of the
applicable accounting period, in the case of any payment payable with respect to
a specified accounting period, or, in the case of any other payment, the last
business day prior to the date of such payment. If no royalties are due for any
calendar quarter, Luitpold shall so report.

     4.9 Records. Luitpold shall maintain, and shall ensure that its
Distributors maintain, complete and accurate records sufficient to enable
accurate calculation of royalties and other fees due BMPI under this Agreement.
Once a calendar year, BMPI shall have the right to select a certified public
accountant reasonably acceptable to Luitpold to inspect, on not less than
fifteen (15) business days prior written notice and during Luitpold's regular
business hours, the records of Luitpold and/or any Distributor necessary to
verify Luitpold's statement and payments due pursuant to this Agreement. Such
accountant must execute a nondisclosure agreement reasonably satisfactory to
Luitpold prior to any access to records. Luitpold agrees to, and to ensure that
the Distributors, cooperate and provide reasonable access to their respective
books, records and premises; provided, however, that such access shall be
limited to those books and records necessary to verify the accuracy of the
payments made to BMPI pursuant to this Agreement. The entire cost for such
inspection shall be borne by BMPI unless there is a discrepancy of greater than,
or equal to, five percent (5%) in Luitpold's favor in which case Luitpold shall
bear the entire cost of the inspection. Records shall be preserved by Luitpold
and the Distributors for three (3) years for inspection by BMPI.

                                        8

**   REPRESENTS MATERIAL WHICH HAS BEEN REDACTED AND SEPARATELY FILED WITH THE
     SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
     TREATMENT PURSUANT TO RULE 406 UNDER THE SECURITIES ACT OF 1933, AS
     AMENDED.

                 5. PROSECUTION AND MAINTENANCE OF PATENT RIGHTS

     5.1 Right to Prosecute and Maintain Licensed Patents. During the term
hereof, BMPI or its Licensors shall have the right to file, prosecute and
maintain all patents and patent applications as set forth in Exhibit A. Luitpold
shall render BMPI such assistance as BMPI may reasonably require to comply with
BMPI's obligations under this Section 5.1. BMPI shall retain the right to
abandon patent applications in BMPI's reasonable discretion. BMPI shall maintain
Licensed Patents, at its sole expense, until the last to expire Valid Claim. If
BMPI should wish to abandon any one or more of the Licensed Patents or cease the
maintenance thereof during the term of this Agreement, BMPI shall notify
Luitpold in writing not less than forty-five (45) days prior to any action
required to preserve such Licensed Patents and shall consider any objection by
Luitpold to any proposed abandonment that BMPI receives within forty-five (45)
days of receipt of such notification. If BMPI does not prosecute and maintain
any patent or patent application and provided BMPI does not incur obligations
arising under the Zymogenetics, Inc. licenses or the Harvard license, BMPI will
assign its rights, without warranties of any kind, to Luitpold.

     5.2 Assistance and Communication. BMPI (or its Licensors) shall have
exclusive control over the prosecution of the Licensed Patents before all
national and international patent offices; provided that Luitpold shall have
reasonable opportunities to advise BMPI. Luitpold shall cooperate and, at BMPI's
expense, shall render all reasonable assistance to BMPI in preparing, filing and
prosecuting Licensed Patents relating to the Field of Use and the Field of
Extended Use.

                            6. COVENANTS OF LUITPOLD

     6.1 Sale and Marking. Luitpold will not sell or market any Licensed
Products in any part of the Territory where proper regulatory approval has not
been obtained, unless approval is not required. Luitpold shall comply with all
applicable United States and foreign statutes related to the marking of Licensed
Products and their packaging with patent pending, patent number(s), or other
intellectual property notices and legends required to maintain the patent rights
licensed in this Agreement.

     6.2 Export. Luitpold shall be solely responsible for obtaining all
licenses, permits or authorizations required from the United States and any
other government for export or reexport of Licensed Products. BMPI agrees to
provide Luitpold with such assistance as it may reasonably request in obtaining
such licenses, permits or authorization at Luitpold's expense.

     6.3 Sales Force and Customer Service. Beginning upon FDA approval of
Licensed Product, Luitpold will maintain a direct sales force of ** sales
representatives in the United States trained on the Licensed Products as well as
enough customer service representatives reasonably necessary to support the
Licensed Product sales in the Territory, provided Luitpold shall have a
reasonable time of up to four months to replace any departing sales
representative. Luitpold will market the Licensed Products in a professional and
ethical manner.

**   REPRESENTS MATERIAL WHICH HAS BEEN REDACTED AND SEPARATELY FILED WITH THE
     SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
     TREATMENT PURSUANT TO RULE 406 UNDER THE SECURITIES ACT OF 1933, AS
     AMENDED.

                                        9

     6.4 Regulatory Approvals and Post-marketing Studies. Luitpold shall have
the first option to (a) obtain, at its sole expense, all permits, licenses, and
other regulatory approvals that may be required for sale of the Licensed
Products (i) in the Field of Use for use with animals (excluding humans) in the
United States, European Union and Canada (ii) in the Field of Use outside the
United States, European Union and Canada for use with animals (including humans)
and (iii) in the Field of Extended Use anywhere in the world, and (b) to file
all reports, applications, notifications, manifests, and the like required by
regulatory authorities for Luitpold to (a) exercise the rights granted in
Sections 2.1 and 2.2 for the Field of Use outside the United States and the
European Union, (b) exercise the rights granted in Sections 2.1 and 2.2 for the
Field of Extended Use anywhere in the world and (c) conduct post-marketing
clinical studies on the Licensed Products. In addition, Luitpold shall be
obligated to fund all post-marketing clinical studies for the Licensed Products
in the Field of Use and the Field of Extended Use, except those required as a
condition of the first approval of any regulatory authority.

          (a)  Prior to initiating a pre-marketing or post-marketing study for
               the Licensed Products, Luitpold shall furnish to BMPI, and shall
               secure BMPI's written approval of, the protocol that Luitpold
               proposes to use for the study.

          (b)  Prior to submission to FDA or other regulatory agencies, or
               bodies, Luitpold shall submit to BMPI, and carefully consider
               BMPI's recommendations, any written communication with a
               regulatory agency in connection with seeking any of the foregoing
               regulatory approvals and shall promptly notify BMPI of, and
               afford BMPI the opportunity to attend and participate in, any
               meeting with a regulatory agency in connection therewith.

          (c)  Luitpold shall provide to BMPI, at BMPI's expense, copies of all
               records and reports that result from pre-marketing and
               post-marketing studies performed by or for Luitpold, and BMPI
               shall have the right to use any such documents in connection with
               regulatory filings.

          (d)  Before publishing, presenting or permitting the publication or
               presentation of data related to a pre-marketing or post-marketing
               clinical studies, Luitpold shall use its best efforts, subject to
               principles of academic freedom, to submit copies of any and all
               proposed manuscripts, abstracts and or presentation materials or
               aids to BMPI thirty (30) days in advance of submitting or
               presenting such proposed manuscripts, abstracts and or
               presentation materials or aids to a publisher or other third
               party. BMPI shall have the right to evaluate such materials to
               ascertain whether (a) Confidential Information or other
               proprietary information of BMPI is being used or disclosed in an
               unauthorized manner, or (b) the publication of such materials
               would impair BMPI's attempt to secure a patent on any idea,
               invention, process, composition of matter or business method. If
               BMPI makes a good faith determination, within such thirty (30)
               day period, that the publication of a proposed manuscript,
               abstract or presentation materials or aids would result in an
               unauthorized use or disclosure of its Confidential Information,
               Luitpold shall remove such Confidential Information from the
               manuscript, abstract or presentation materials or aids before
               publishing the same. If BMPI makes a

                                       10

               good faith determination, within such thirty (30) day period,
               that the publication of a proposed manuscript, abstract or
               presentation materials or aids would impair BMPI's attempt to
               secure a patent on any idea, invention, process, composition of
               matter or business method, Luitpold shall refrain from submitting
               or presenting such proposed manuscript, abstract or presentation
               materials or aids to a publisher or other third party for another
               ninety (90) days to allow BMPI to file patent applications or
               take other steps to secure, perfect or otherwise protect its
               intellectual property interests.

          (e)  If at any time a third party offers to obtain regulatory approval
               which Luitpold has the first option to seek in accordance with
               this Section 6.4 but has not then begun the process of seeking,
               BMPI shall so notify Luitpold.

     6.5 Periodic Meetings with BMPI. Not less often than semi-annually after
BMPI receives regulatory approval to market the Licensed Products in the United
States or in any country in the European Union, Luitpold will meet with BMPI to
review all regulatory approvals in the Territory.

     6.6 Funding of Research and Development Efforts. Luitpold will fund BMPI's
research and development efforts, in accordance with that certain Research,
Development and Marketing Agreement by and between BMPI and Luitpold dated
December 9, 2003 to which this Agreement is attached, for purposes of obtaining
regulatory or other approvals in the United States, Canada and the European
Union in the Field of Use for humans.

                               7. CONFIDENTIALITY

     7.1 Confidential Information. It may be necessary for one Party to disclose
to the other Party certain confidential or proprietary information.
"Confidential Information" means information related to the business of Luitpold
or the business of BMPI and includes, without limitation, all tangible and
intangible information relating to scientific data, analyses and projections;
intellectual property, trade secrets, know-how, products, and product
candidates; strategies, operations, systems, software, ideas, financial
information, contracts, business documents, and business records; and any
analyses, compilations, studies and other documents, in whatever form furnished,
prepared or stored, whether prepared by a Party, its representatives or others,
which are based upon, incorporate or otherwise reflect such information. During
the term of this Agreement and for ten (10) years thereafter, the Party
receiving Confidential Information of the other Party agrees not to disclose
such Confidential Information and not to use it for any purpose except those
specifically allowed in this Agreement. Confidential Information shall not
include information which:

          (a) is now in the public domain or which becomes generally available
     to the public through no fault of the receiving Party;

          (b) is already known to, or in the possession of, the receiving Party
     prior to disclosure by the disclosing Party as can be demonstrated by
     written evidence;

          (c) is disclosed on a non-confidential basis to the receiving Party by
     a third Party having the right to make such a disclosure;

                                       11

          (d) is independently developed by the receiving Party (by activity not
     associated with the Licensed Technology) as can be demonstrated by written
     evidence; or

          (e) is required to be disclosed by order of any court or governmental
     or regulatory authority, or where otherwise required by law but only after
     notification to the providing Party by the receiving Party of such
     requirement in order to allow the providing Party to seek protection for
     the providing Party's Confidential Information from such court or
     governmental or regulatory authority.

     7.2 Publicity. Except as otherwise set forth in this Section 7 or 12.2,
neither Party shall originate any publicity, news release or public
announcements, relating to this Agreement (including, without limitation, its
existence, its subject matter, the Parties' performance, any amendment hereto or
performance hereunder), whether to the public or press, stockholders or
otherwise, without the prior written consent of the other Party, save only such
announcements that are required by law to be made or that are otherwise agreed
to by the Parties. Such announcements shall be brief and factual. If a Party
decides to make an announcement, whether required by law or otherwise, it shall
give the other Party at least ten (10) business days advance notice, where
possible, of the text of the announcement so that the other Party shall have an
opportunity to comment upon the announcement. To the extent that the receiving
Party reasonably requests the deletion of any information in the announcement,
the disclosing Party shall delete such information unless, in the opinion of the
disclosing Party's legal counsel, such Confidential Information is legally
required to be fully disclosed.

                   8. INTERFERENCE, OPPOSITION AND ENFORCEMENT

     8.1 Interference. In the event an interference is declared by the U.S.
Patent and Trademark Office involving one or more of the Licensed Patents, then
BMPI shall promptly notify Luitpold in writing. BMPI or its Licensors shall have
exclusive control over the conduct of the interference; provided Luitpold shall
have reasonable opportunities to advise BMPI. At BMPI's sole discretion and
expense, Luitpold shall assist BMPI and cooperate in any such interference upon
BMPI's request. In the event that there is an interference declared involving
one or more of the Licensed Patents, then the obligation of Luitpold to pay
royalties under the Licensed Patent Rights shall continue unabated so long as
Luitpold continues to exercise its rights under this Agreement.

     8.2 Opposition. In the event that one or more of the Licensed Patents are
subject to an opposition proceeding, then BMPI shall promptly notify Luitpold in
writing. BMPI (or its Licensors) shall have exclusive control over the conduct
of the opposition; provided Luitpold shall have reasonable opportunities to
advise BMPI. At BMPI's sole discretion and expense, Luitpold shall assist BMPI
and cooperate in any such opposition upon BMPI's request. In the event that
there is an opposition involving one or more of the Licensed Patents, then the
obligation of Luitpold to pay royalties under the Licensed Patent Rights shall
continue unabated so long as Luitpold continues to exercise its rights under
this Agreement.

     8.3 Declaratory Judgment Action. In the event a third Party brings an
action to obtain a declaration of patent invalidity against Luitpold, BMPI
and/or one or more Licensed Patents, BMPI (or its Licensors) shall have the
right to defend such action at its own cost and expense,

                                       12

and to control any ensuing litigation. In the event a competitor is successful
in lawfully marketing a Licensed Product during the term of this Agreement,
Luitpold's obligation to pay royalties shall persist in accordance solely with
the royalty reduction as set forth in Section 4.3.

     8.4 Enforcement by BMPI. In the event either Party becomes aware of a
suspected infringement of a Licensed Patent within the Field of Use or the Field
of Extended Use, such Party shall notify the other Party promptly in writing
and, following such notification, the Parties shall promptly confer. BMPI or
Licensors shall have the right, but shall not be obligated, to prosecute an
infringement action at its own expense and under its own direction and control;
provided Luitpold shall have reasonable opportunities to advise BMPI. BMPI shall
notify Luitpold in writing within ninety (90) days of becoming aware of a
suspected infringement whether or not it will prosecute an infringement action.
If BMPI or a Licensor elects to prosecute such action, it shall be entitled to
all recoveries in any such action. Luitpold shall reasonably assist BMPI at
BMPI's expense in such actions if so requested. Luitpold shall have the right to
participate and be represented in any such suit by its own counsel at its own
expense.

     8.5 Backup Enforcement by Luitpold. If BMPI or its Licensors are unable or
elect not to bring an action for infringement of a Licensed Patent within the
Field of Use or the Field of Extended Use, Luitpold may bring such action at its
own expense and under its own direction and control; provided, BMPI shall have
reasonable opportunities to advise Luitpold. In such event, Luitpold shall be
entitled to recover its expenses from all recoveries in any such action, and the
remaining balance of any such recoveries shall be treated as Net Sales for which
Luitpold shall pay royalties to BMPI. BMPI shall reasonably assist Luitpold at
Luitpold's expense in such actions if so requested or required by law. BMPI
shall also lend its name to such actions if requested by Luitpold or required by
law, at Luitpold's expense. BMPI shall have the right to participate and be
represented in any such suit by its own counsel at its own expense.

                        9. REPRESENTATIONS AND WARRANTIES

     9.1 Representations, Warranties and Covenants of Luitpold. Luitpold
represents and warrants to and covenants with BMPI that:

          (a) Luitpold is a corporation duly organized, validly existing and in
     corporate good standing under the laws of New York; and

          (b) Luitpold has the corporate and legal right, authority and power to
     enter into this Agreement; and

          (c) Luitpold has taken all necessary action to authorize the
     execution, delivery and performance of this Agreement; and

          (d) upon the execution and delivery of this Agreement, this Agreement
     shall constitute a valid and binding obligation of Luitpold, enforceable in
     accordance with its terms, except as enforceability may be limited by
     applicable bankruptcy, insolvency, reorganization, moratorium or similar
     laws affecting creditors' and contracting Parties' rights generally and
     except as enforceability may be subject to general principles of equity
     (regardless of whether such enforcement is considered in a proceeding in
     equity or at law); and

                                       13

          (e) the performance of its obligations under this Agreement will not
     conflict with or result in a breach of any agreements, contracts or other
     arrangements to which it is a party; and

          (f) Luitpold will comply with all applicable laws and regulations in
     connection with the performance of Luitpold's obligations pursuant to this
     Agreement, including but not limited to all applicable laws and regulations
     concerning product labeling, package marking, advertising and export.

     9.2 Representations, Warranties and Covenants of BMPI. BMP1 represents and
warrants to and covenants with Luitpold that:

          (a) BMPI is a corporation duly organized, validly existing and in
     corporate good standing under the laws of Tennessee; and

          (b) BMPI has the corporate and legal right, authority and power to
     enter into this Agreement; and

          (c) BMPI has taken all necessary action to authorize the execution,
     delivery and performance of this Agreement; and

          (d) upon the execution and delivery of this Agreement, this Agreement
     shall constitute a valid and binding obligation of BMPI, enforceable in
     accordance with its terms, except as enforceability may be limited by
     applicable bankruptcy, insolvency, reorganization, moratorium or similar
     laws affecting creditors' and contracting Parties' rights generally and
     except as enforceability may be subject to general principles of equity
     (regardless of whether such enforcement is considered in a proceeding in
     equity or at law); and

          (e) the performance of its obligations under this Agreement will not
     conflict with or result in a breach of any agreements, contracts or other
     arrangements to which it is a party; and

          (f) BMPI will comply with all applicable laws and regulations in
     connection with the performance of BMPI's obligations pursuant to this
     Agreement, including but not limited to all applicable laws and regulations
     concerning product safety, testing, labeling, package marking, advertising
     and export.

     9.3 Warranty Disclaimer. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS
ARTICLE 9 OR IN ARTICLE 10.1 OF THE MANUFACTURING AND SUPPLY AGREEMENT, NEITHER
PARTY MAKES ANY WARRANTY WITH RESPECT TO THE LICENSED PATENT RIGHTS, GOODS,
SERVICES OR OTHER SUBJECT MATTER OF THIS AGREEMENT AND EACH PARTY HEREBY
DISCLAIMS ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE AND NON-INFRINGEMENT.

                                       14

                                10. IMPROVEMENTS

     10.1 Ownership of Improvements. Each Improvement made or otherwise
developed by Luitpold shall be solely owned by BMPI. Luitpold expressly
acknowledges that any Improvement it may make would not have been possible
without the license granted in Section 2 hereof, and accordingly, Luitpold
hereby assigns to BMPI all rights, title and interests that Luitpold may have or
obtain in and to any Improvement that Luitpold may make, discover or develop,
including any and all intellectual property rights therein. BMPI shall have the
exclusive right to reproduce, publish, patent, copyright, sell, license and
otherwise make use of the Improvement. Luitpold will, upon request, execute
specific assignments and take any action necessary to enable BMPI to secure
patents, copyrights or otherwise secure its proprietary rights in Improvements.
Not withstanding the preceding, BMPI shall grant to Luitpold the exclusive
sublicense consistent with the provisions in Sections 2.1 and 2.2 for the term
of this Agreement to all Improvements which Luitpold funds related solely to
carriers for growth factors. Luitpold will incur no additional sublicensing fees
for these additional products, provided that all funding has been incurred by
Luitpold. Luitpold will be responsible for all regulatory approvals required for
marketing Improvements which it sublicenses. BMPI shall retain all rights
related to Improvements in growth factors.

     10.2 Option to License Improvements. If, during the term of this Agreement,
BMPI elects to grant a license to any third party to use, offer to sell, sell,
and/or otherwise commercialize any Improvement related to carriers for growth
factors not resulting from a study performed and paid for by Luitpold in the
Field of Use and/or in the Field of Extended Use, and Luitpold is in full
performance of its obligations under this Agreement BMPI shall offer such
license to Luitpold before offering it to a third party. Within thirty (30) days
after the date of any such offer, Luitpold shall notify BMPI in writing whether
or not Luitpold is interested in receiving such a license. If Luitpold notifies
BMPI that it is interested in receiving such license, the parties shall
negotiate in good faith for one hundred twenty (120) days after the date of such
notification to reach agreement on the amount of any royalties, milestone
payments or other remuneration that will be payable by Luitpold as consideration
for such license and the other terms and conditions of such license. If BMPI
does not receive written notice that Luitpold is interested in receiving a
license to any Improvement within thirty (30) days after the offer is made, or
if the parties, negotiating in good faith, are unable to reach agreement upon
applicable remuneration or other terms and conditions within one hundred twenty
(120) days after Luitpold's written notification of interest in receiving an
offered license, BMPI shall be free to offer such license to any third party on
terms no less favorable to BMPI than the terms offered by Luitpold.

     10.3 Option to License Additional Growth Factor Products. If, during the
term of this Agreement, BMPI elects to grant a license to any third party to
use, offer to sell, sell, and/or otherwise commercialize any growth factor
related technology in the Field of Use and/or in the Field of Extended Use, and
Luitpold is in full performance of its obligations under this Agreement, BMPI
shall offer such license to Luitpold before offering it to a third party. Within
thirty (30) days after the date of any such offer, Luitpold shall notify BMPI in
writing whether or not Luitpold is interested in receiving such a license. If
Luitpold notifies BMPI that it is interested in receiving such license, the
parties shall negotiate in good faith for one hundred twenty (120) days after
the date of such notification to reach agreement on the amount of any

                                       15

royalties, milestone payments or other remuneration that will be payable by
Luitpold as consideration for such license and the other terms and conditions of
such license. If BMPI does not receive written notice that Luitpold is
interested in receiving a license to any Improvement within thirty (30) days
after the offer is made, or if the parties, negotiating in good faith, arc
unable to reach agreement upon applicable remuneration or other terms and
conditions within one hundred twenty (120) days after Luitpold's written
notification of interest in receiving an offered license, BMPI shall be free to
offer such license to any third party on terms no less favorable to BMPI than
the terms offered by Luitpold.

     10.4 Notice. Either Party may generate Improvements without approval from
or prior notice to the other Party, but shall promptly thereafter disclose to
the other Party all Improvements made by such Party or its Affiliates or
Distributors.

                              11. GENERAL PROVISION

     11.1 Limited Liability. EXCEPT IN THE CASE OF GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT, NEITHER LUITPOLD NOR BMPI WILL BE LIABLE WITH RESPECT TO ANY MATTER
ARISING UNDER THIS AGREEMENT UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY OR
OTHER LEGAL OR EQUITABLE THEORY FOR (A) ANY PUNITIVE, EXEMPLARY, INCIDENTAL OR
CONSEQUENTIAL DAMAGES OR LOST PROFITS OR (B) COST OF PROCUREMENT OF SUBSTITUTE
GOODS, TECHNOLOGY OR SERVICES.

     11.2 Use of Name. Luitpold does not have, and shall not acquire, any
interest in any of BMPI's trademarks or trade names unless otherwise expressly
agreed by BMPI in writing. BMPI's name may appear on the packaging and labeling
for the Licensed Product and in material included therewith to the extent
required by law; provided, however, that each such use must be approved in
writing by BMPI, which approval shall not be unreasonably withheld. Luitpold
shall not otherwise use the name of BMPI, or disclose the existence of this
Agreement for any marketing, advertising or promotional purpose, without BMPI's
prior written consent.

     11.3 No Agency. Nothing herein contained shall be deemed to create an
agency, joint venture, amalgamation, partnership or similar relationship between
BMPI and Luitpold. Notwithstanding any of the provisions of this Agreement,
neither Party shall at any time enter into, incur or hold itself out to third
Parties as having authority to enter into or incur, on behalf of the other
Party, any commitment, expense or liability whatsoever, and all contracts,
expenses and liabilities undertaken or incurred by one Party in connection with
or relating to the development, manufacture or sale of Products shall be
undertaken, incurred or paid exclusively by that Party, and not as an agent or
representative of the other Party. The Parties hereto agree that each is acting
as an independent contractor and not as an agent or partner of the other by
virtue of this Agreement.

     11.4 Severability. If any provision of this Agreement shall be found to be
void, invalid or unenforceable, the same shall either be conformed to the extent
necessary to comply with applicable law or stricken if not so conformable, so as
not to affect the validity of this Agreement.

                                       16

     11.5 Notices. All notices, requests, demands, waivers, consents, approvals
or other communications hereunder shall be in writing and shall be deemed to
have been duly given if delivered personally, or by recognized commercial
courier service, and delivered by a facsimile transmission, as follows:

If to BMPI:       BioMimetic Pharmaceuticals, Inc.
                  330 Mallory Station, Suite A-l
                  Franklin, TN 37067
                  Attention: Samuel E. Lynch, D.M.D., D.M.Sc.
                  FAX: 615-844-1281

With a copy to:   Harwell Howard Hyne Gabbert & Manner, P.C.
                  315 Deaderick Street, Suite 1800
                  Nashville, TN 37238
                  Attention: Mark Manner
                  FAX: 615-251-1059

If to Luitpold:   Luitpold Pharmaceuticals, Inc.
                  One Luitpold Drive
                  Shirley, NY 11967
                  Attention: President and CEO
                  FAX: 631-924-8650

With a copy to:   Sonnenschein Nath & Rosenthal LLP
                  1301 K Street, N.W.
                  Suite 600 East Tower
                  Washington, DC 20005
                  Attention: Peter S. Reichertz
                  FAX: 202-408-6399

or to such other address as the addressee may have specified in a notice duly
given to the sender as provided herein. Such notice, request, demand, waiver,
consent, approval or other communication will be deemed effective (a) as of the
date so delivered either personally or by facsimile transmission or courier
service; or (b) on the third (3rd) business day after the same has been mailed.

     11.6 Force Majeure. Neither Party to this Agreement shall be liable for
delay or failure in the performance of any of its obligations hereunder if such
delay or failure is due to causes beyond its reasonable control, including,
without limitation, acts of God, fires, earthquakes, strikes and labor disputes,
acts of war or threatened act of war, acts of terror or threatened acts of
terror, civil unrest, or intervention of any governmental authority, but any
such delay or failure shall be remedied by such Party as soon as is reasonably
possible. If the force majeure event persists for longer than twelve (12)
months, the other Party shall have the right to terminate this Agreement.

                                       17

     11.7 Assignments. This Agreement may not be assigned by Luitpold without
the written prior consent of BMPI; provided Luitpold may assign this Agreement
to an acquirer of all or substantially all of its assets. This Agreement shall
inure to the benefit of and be binding on the Parties' permitted assigns, and
successors in interest.

     11.8 Waivers and Modifications. The failure of any Party to insist on the
performance of any obligation hereunder shall not act as a waiver of such
obligation. No waiver, modification, release, or amendment or any obligation
under this Agreement shall be valid or effective unless in writing and signed by
both Parties hereto.

     11.9 Choice of Law. This Agreement is subject to and shall be construed and
enforced in accordance with the laws of the State of Tennessee without reference
to its choice of law provisions.

     11.10 Dispute Resolution. The Parties agree that prior to any arbitration
concerning this Agreement, an executive officer of BMPI and Luitpold with
authority to resolve the dispute will meet within ten (10) days of a written
request by either Party to the other and will attempt in good faith to negotiate
a resolution to the dispute. If the Parties are unable to negotiate a resolution
to the dispute within twenty (20) days of commencing negotiations, either Party
may initiate arbitration proceedings by written request to the other. Except as
otherwise specifically provided herein, all controversies and claims under this
Agreement shall be settled by binding arbitration by a panel of three (3)
arbitrators pursuant to the Commercial Arbitration Rules of the American
Arbitration Association. The arbitration shall be conducted in New York, New
York. Each Party shall select one arbitrator and the two arbitrators so selected
shall jointly select a third arbitrator. The decision reached by the arbitrators
shall be conclusive and binding upon the Parties hereto and may be filed with
the clerk of any court of competent jurisdiction. Each of the Parties shall pay
its own expenses of arbitration and the expenses of the arbitrators shall be
equally shared. Notwithstanding anything to the contrary in this Section 11.10,
either Party may seek immediate injunctive relief from any court of competent
jurisdiction for the protection of its intellectual property or Confidential
Information.

     11.11 Headings. Section headings are for convenience only and will not be
deemed to affect in any way the language of the provisions to which they refer.

     11.12 Execution. This Agreement shall be executed in duplicate, both of
which shall be deemed to be originals, and both of which shall constitute one
and the same agreement.

     11.13 Entire Agreement. This Agreement constitutes the entire agreement
between the Parties as to the subject matter hereof, and all prior negotiations,
representations, agreements and understandings are merged into, extinguished by
and completely expressed by this Agreement.

     11.14 Recording and Further Assurances. Luitpold may record this Agreement
in each place necessary or convenient to perfect, protect or otherwise evidence
Luitpold's rights hereunder. Each Party agrees, promptly upon request, to
execute such further documents as the other Party may reasonably request to for
the purpose of making effective the rights of such Party under this Agreement,
at the sole expense of the Party so requesting.

                                       18

     IN WITNESS WHEREOF, the Parties have duly executed this Agreement as of the
Effective Date.

                                           BIOMIMETIC PHARMACEUTICALS, INC.

                                           By: /s/ Samuel E. Lynch
                                               --------------------------------
                                           Its: President

                                           LUITPOLD PHARMACEUTICALS, INC.

                                           By: /s/ Mary Jane Helenek
                                               --------------------------------
                                           Its: President, CEO

                                           By: /s/ Jean M. Bellin
                                               --------------------------------
                                           Its: VICE PRESIDENT, OHD

                                       19

                                    EXHIBIT A
                              PDGF LICENSED PATENTS

GRANTED PATENTS

COUNTRY   PATENT NO   ISSUE DATE          COMMENTS
-------   ---------   ----------   ---------------------
   US     4,769,328*   09/06/88
   US     4,801,542*   01/31/89
   US     5,045,633*   09/03/91
   US     4,766,073*   08/23/88
   US     4,889,919*   12/26/89
   US     5,428,010*   06/27/95
   US     5,533,836*   07/09/96
   US     6,004,929*   12/21/99
   US     4,845,075*   07/04/89
   US     5,516,896*   05/14/96
   US     4,849,407*   07/18/89
   US     5,498,600*   03/12/96
   US     5,187,263*   02/16/93
   US     5,128,321*   07/07/92
   US     5,474,982*   12/12/95
   US     5,895,755*   04/20/99
   US     5,905,142*   05/18/99
   US     5,770,228*   06/23/98
   US     5,889,149*   03/30/99
   AU        638010*   06/17/93
   AU        641816*   02/08/94
   CA     1,340,846*   12/07/99    Reissued Patent
   EP        177957*   01/07/93    Registered in AT, BE,
                                   CH, LI, DE, FR, GB,
                                   IT, NL, LU, SE
   EP        487166*   12/29/99    Registered in AT, BE,
                                   CH, LI, DE, FR, GB,
                                   IT, LI LU, NL, SE
   EP        259632*   12/13/95    Registered in AT, BE,
                                   CH, LI, DE, FR, GB,
                                   IT, LU, NL, SE
   EP        547064*   06/22/94    Registered in AT, BE,
                                   CH, DE, DK, ES, FR,
                                   GB, GR, IT, LI, LU,
                                   NL, SE
   JP       2837407*   10/09/98
   JP       2127599*   02/24/97
   JP       2823690*   09/04/98
   JP       3145968*   01/05/01
   US     5,019,559

                                       20

   US     4,861,757
   US     5,124,316
   US     4,874,746
   US     4,983,581
   US     5,256,644
   US     5,034,375
   US     5,035,887
   US     5,516,699

                                       21

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