Document:

Filed by Bowne Pure Compliance

Exhibit 10.3

Pro-Forma Financial Statements:

On December 31, 2008, Technology Solutions Company (the “Company”) and Valkre Solutions, Inc.
(“Valkre”) entered into an Asset Purchase Agreement (the “Purchase Agreement”) pursuant to which
the Company agreed to sell and Valkre agreed to acquire substantially all of the assets and assume
certain liabilities of the Company’s Customer Value Creation (“CVC”) practice (the “Practice”)
together with certain other assets, liabilities, properties and rights of the Company relating to
its CVC business.

a. Pro-forma consolidated condensed balance sheet — post sale of Practice:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Pro-forma Consolidated Balance Sheet - Post Sale of Practice	 
	 	 	Pre-Transaction	 	 	Transaction	 	 	Post-Transaction	 
	 	 	As reported	 	 	 	 	 	Pro-forma	 
	 	 	September 30, 2008 (1)	 	 	Adjustments (2)	 	 	September 30, 2008 (3)	 
	 	 	(Unaudited)	 	 	(Unaudited)	 	 	(Unaudited)	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Cash and short-term investments
	 	$	9,014	 	 	$	130	 	 	$	9,144	 
	Promissory Note from Valkre
	 	 	—	 	 	 	270	 	 	 	270	 
	Promissory Note from EnteGreat
	 	 	750	 	 	 	—	 	 	 	750	 
	Other current assets
	 	 	1,951	 	 	 	(160	)	 	 	1,791	 
	Fixed assets and intangible assets, net
	 	 	461	 	 	 	(160	)	 	 	301	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL ASSETS
	 	$	12,176	 	 	$	80	 	 	$	12,256	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Accounts payable
	 	$	1,003	 	 	$	—	 	 	$	1,003	 
	Accrued compensation
	 	 	535	 	 	 	—	 	 	 	535	 
	Other current liabilities
	 	 	136	 	 	 	—	 	 	 	136	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Total shareholder equity
	 	 	10,502	 	 	 	80	 	 	 	10,582	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL LIABILITIES AND STOCKHOLDERS EQUITY
	 	$	12,176	 	 	$	80	 	 	$	12,256	 
	 
	 	 	 	 	 	 	 	 	 

	 	 	 
	(1)	 	The pre-transaction unaudited condensed consolidated balance sheet represents the Company’s consolidated balance sheet as
of September 30, 2008, prior to the sale of the Practice.

	 
	(2)	 	The transaction adjustments column represents those assets and liabilities changes
resulting specifically from the sale of the Practice to Valkre.

	 
	(3)	 	The post-transaction pro-forma unaudited condensed consolidated balance sheet represents a pro-forma
look back to September 30, 2008 assuming the impact of the transaction related adjustments.

	 
	(4)	 	The condensed pro-forma consolidated balance sheet may not necessarily reflect the consolidated balance sheet of the
Company during any other future period.

b. Pro-forma consolidated condensed statements of income:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Year Ended December 31, 2007	 	 	Year to date through September 30, 2008	 
	 	 	CVC Practice (2)	 	 	Exogen/Corp (2)	 	 	As Reported (1)	 	 	CVC Practice (2)	 	 	Exogen/Corp (2)	 	 	As Reported (1)	 
	 	 	(unaudited)	 	 	(unaudited)	 	 	(Audited)	 	 	(unaudited)	 	 	(unaudited)	 	 	(unaudited)	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenues before reimbursable expenses
	 	$	1,080	 	 	$	9,308	 	 	$	10,388	 	 	$	884	 	 	$	4,783	 	 	$	5,667	 
	Reimbursable expenses
	 	 	172	 	 	 	1,028	 	 	 	1,200	 	 	 	337	 	 	 	494	 	 	 	831	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL REVENUES
	 	 	1,252	 	 	 	10,336	 	 	 	11,588	 	 	 	1,221	 	 	 	5,277	 	 	 	6,498	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cost of services
	 	 	1,469	 	 	 	7,775	 	 	 	9,244	 	 	 	1,036	 	 	 	4,647	 	 	 	5,683	 
	Management and administrative support
	 	 	428	 	 	 	9,110	 	 	 	9,538	 	 	 	278	 	 	 	1,793	 	 	 	2,071	 
	Intangible assets amortization
	 	 	205	 	 	 	—	 	 	 	205	 	 	 	147	 	 	 	—	 	 	 	147	 
	Intangible assets impairment — one-time, non-recurring (3)
	 	 	143	 	 	 	—	 	 	 	143	 	 	 	106	 	 	 	—	 	 	 	106	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL COSTS AND EXPENSES
	 	$	2,245	 	 	$	16,885	 	 	$	19,130	 	 	$	1,567	 	 	$	6,440	 	 	$	8,007	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	OPERATING (LOSS) — Company
	 	$	(993	)	 	$	(6,549	)	 	$	(7,542	)	 	$	(346	)	 	$	(1,163	)	 	$	(1,509	)
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	INVESTMENT INCOME
	 	 	—	 	 	 	469	 	 	 	469	 	 	 	—	 	 	 	290	 	 	 	290	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	NET INCOME(LOSS) BY PRACTICE
	 	 	(993	)	 	 	(6,080	)	 	 	(7,073	)	 	 	(346	)	 	 	(873	)	 	 	(1,219	)
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Discontinued Operations (4)
	 	 	—	 	 	 	(1,222	)	 	 	(1,222	)	 	 	—	 	 	 	1,957	 	 	 	1,957	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	NET INCOME/(LOSS) — Company
	 	$	(993	)	 	$	(7,302	)	 	$	(8,295	)	 	$	(346	)	 	$	1,084	 	 	$	738	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Basic Income/(Loss) per share
	 	 	($0.39	)	 	 	($2.87	)	 	 	($3.26	)	 	 	($0.13	)	 	$	0.42	 	 	$	0.29	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Diluted Income/(Loss) per share
	 	 	($0.39	)	 	 	($2.87	)	 	 	($3.26	)	 	 	($0.13	)	 	$	0.41	 	 	$	0.28	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Weighted average share — Basic
	 	 	2,541	 	 	 	2,541	 	 	 	2,541	 	 	 	2,564	 	 	 	2,564	 	 	 	2,564	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Weighted average share — Diluted
	 	 	2,541	 	 	 	2,541	 	 	 	2,541	 	 	 	2,661	 	 	 	2,661	 	 	 	2,661	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 
	(1)	 	The pro-forma consolidated statements of income is a summary of TSC’s operating results excluding the
Practice on a stand-alone basis. It was derived by adjusting the financial information from the
Company’s Form 10K for year ended December 31, 2007 and the Company’s Form 10-Q filed for the nine
months ended September 30, 2008.

	 
	(2)	 	The Company has traditionally reported a consolidated look at the income statement instead of
by practice area. For this pro-forma representation, revenues and expenses were segregated by
those estimated amounts associated with the Practice on a stand-alone basis, with the remainder
being reflected as Exogen / Corporate. The Exogen/Corporate column, for this pro-forma
illustration, is carrying the entire burden of corporate administrative expenses. The allocated
costs for both above periods reflect those costs that were reasonably estimated to be directly
attributable to the Practice during the timeframe as indicated.

	 
	(3)	 	The intangible asset impairment amounts represents one-time non-recurring expenses recorded in
the period when an impairment of the intangible assets has been determined to have occurred. These
amounts are not recurring and represent the one time recognition of expense.

	 
	(4)	 	The Company sold its SAP Practice effective as of April 30, 2008. The Company filed a
Form 8K on May 9, 2008 with pro-forma financials related to the sale. For addition information
concerning the SAP Practice sale, see the Form 8K filing.

	 
	(5)	 	The financial information may not necessarily reflect the results of the operations of TSC,
excluding the Practice, as a stand-alone entity during the periods presented in the future.Filed by Bowne Pure Compliance

Exhibit 10.1

OSTEOTECH, INC.

AMENDMENT NO. 2 TO EMPLOYMENT AGREEMENT

THIS AMENDMENT NO. 2 TO EMPLOYMENT AGREEMENT is effective as of the 31st day of December 2008,
between OSTEOTECH, INC., a Delaware corporation (the “Corporation”) and Mark H. Burroughs (the
“Employee”).

WITNESSETH:

WHEREAS, the Corporation and the Employee have entered into that certain Employment Agreement,
effective as of 1st day of November 2000 (the “Employment Agreement”), pursuant to which
the Corporation retained the Employee as Vice President, Finance and Treasurer and have previously
amended that agreement; and

WHEREAS, the Corporation and the Employee now desire to further amend the terms of the
Employment Agreement principally for the purpose of bringing it into compliance with the
requirements of section 409A of the Internal Revenue Code of 1986, as amended.

NOW, THEREFORE, in consideration of the mutual covenants and obligations hereinafter set
forth, the parties hereto agree as follows:

1. Section 3 is amended by adding thereto the following sentence:

The Employee’s most current, title, duties and compensation will be found in the permanent
employment files in the Corporation’s Human Resources Department.

2. Section 10 of the Employment Agreement is hereby amended by adding thereto the following:

	 	(d)	 	409A Payment Trigger. For the purpose of this Section 10, for the purpose of
paying all amounts subject to section 409A of the Internal Revenue Code and for the
purpose of qualifying for the exemption from 409A for separation pay due to involuntary
separation from service without cause (the so-called “2X exception”), all references to
termination of employment, terminate employment, termination date and other derivatives
of those words shall be construed and applied to mean Separation From Service.

	 	(e)	 	409A Delay. Notwithstanding the foregoing, to the extent that any payment due
hereunder is: (i) deferred compensation subject to section 409A of the Internal Revenue
Code, and (ii) is payable to a specified employee (as that term is defined in section
409A), and (iii) is payable when the Corporation is a publicly traded company (as
defined in section 409A), and (iv) is payable on account of the specified employee’s
Separation From Service, payment of any part of such amount that would have been made
during the six (6) months following the Separation From Service shall not then be paid but shall rather be paid on the first
day of the seventh (7th) month following the Separation From Service.

 

 

 

	 	(i)	 	Identifying Specified Employees. For this purpose, specified
employees shall be identified by the Corporation (I) on a basis consistent with
regulations issued under section 409A, and (II) as required by regulations
issued under section 409A, on a basis consistently applied to all plans,
programs, contracts, agreements, etc. maintained by the Corporation that are
subject to section 409A.
	 
	 	(ii)	 	Interpretation. It is expressly intended that, to the maximum
extent permitted by law, benefits under this Agreement shall be exempt from
section 409A (e.g., as a separation pay plan that provides for separation pay
only upon an involuntary separation from service without cause). To the extent
that section 409A is applicable to this Agreement, this Agreement shall be
construed and administered to comply with the rules of section 409A. Neither
the Corporation nor any of its officers, directors, agents or affiliates shall
be obligated, directly or indirectly, to the Employee or any other person for
any taxes, penalties, interest or like amounts that may be imposed on the
Employee or other person on account of any amounts under this Agreement or on
account of any failure to comply with any Code section.

	 	(f)	 	Separation From Service. As used in this Agreement, the term “Separation From
Service” (and derivatives of that phrase such as “Separates,” and “Separated From
Service”) shall mean a severance of the Employee’s employment relationship with the
Corporation and all affiliates, if any, for any reason other than the Employee’s death,
as determined subject to the following:

	 	(i)	 	Facts and Circumstances & 20% Rule. Whether a Separation From
Service has occurred is determined based on whether the facts and circumstances
indicate that the Corporation and Employee reasonably anticipated that no
further services would be performed after a certain date or that the level of
bona fide services the Employee would perform after such date (whether as an
employee or as an independent contractor) would permanently decrease to no more
than twenty percent (20%) of the average level of bona fide services performed
(whether as an employee or an independent contractor) over the immediately
preceding thirty-six (36) month period (or the full period of services to the
Corporation and all affiliates if the Employee has been providing services to
the Corporation and all affiliates less than thirty-six (36) months). A
transfer from employment with the Corporation to employment with an affiliate
of the Corporation shall not constitute a Separation From Service. For this
purpose “affiliate” shall be determined in accordance with regulations
issued under section 409A of the Internal Revenue Code but using an eighty
percent (80%) ownership test.

2

 

 

 

	 	(ii)	 	Leaves of Absence. A Separation From Service shall not be
deemed to occur while the Employee is on military leave, sick leave or other
bona fide leave of absence if the period does not exceed six (6) months or, if
longer, so long as the Employee retains a right to reemployment with the
Corporation or an affiliate under an applicable statute or by contract. If the
period of leave exceeds six (6) months and the Employee does not retain a right
to reinstatement under an applicable statute or by contract, the Separation
From Service is deemed to occur on the first date immediately following the six
(6) month period. For this purpose, a leave is bona fide only if, and so long
as, there is a reasonable expectation that the Employee will return to perform
services for the Corporation or an affiliate. Notwithstanding the foregoing, a
twenty-nine (29) month period of absence will be substituted for such six (6)
month period if the leave is due to any medically determinable physical or
mental impairment that can be expected to result in death or can be expected to
last for a continuous period of no less than six (6) months and that causes the
Employee to be unable to perform the duties of his or her position of
employment.

3. Other than as set forth in this Amendment, all of the terms and conditions of the
Employment Agreement shall continue in full force and effect.

4. This Amendment shall be governed by and construed in accordance with the laws of the State
of New Jersey, without reference to the conflicts of laws of the State of New Jersey or any other
jurisdiction.

IN WITNESS WHEREOF, the parties have duly executed this Amendment No. 2 to Employment
Agreement effective as of the date first above written.

	 	 	 	 	 	 	 
	OSTEOTECH, INC.	 	EMPLOYEE:
	 
	 	 	 	 	 	 
	By:

	 	/s/ Sam Owusu-Akyaw
	 	By:
	 	/s/ Mark H. Burroughs
	 

	 	 
	 	 	 	 
	Name:

	 	Sam Owusu-Akyaw
	 	Name:
	 	Mark H. Burroughs
	Title:

	 	President and Chief Executive Officer
	 	Title:
	 	EVP/CFO

3

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