Document:

ex10_54.htm

    
      

    

    
      EXHIBIT 10.54

       

      EXECUTION
COPY

      

      INVESTMENT
AGREEMENT

      

      This
INVESTMENT AGREEMENT (this “Agreement”)
is made and effective as of the 31st day of
March, 2008 (the “Effective
Date”),  by and between MiMedx Group, Inc., a Florida
corporation (the “Company”),
and SaluMedica, LLC, a Georgia limited liability company (“SaluMedica”).

       

      RECITALS

       

      A.         
   The Company desires to sell and issue, and SaluMedica desires
to subscribe and purchase, shares of the Company’s Common Stock, par value
$0.001 per share (the “Common
Stock”), on
the terms and conditions contained herein;

       

      B.          
  In connection with the transactions contemplated by this Agreement,
the Company’s wholly-owned subsidiary, MiMedx, Inc. (the “Subsidiary”), and
SaluMedica are entering into (i) that certain Technology License Agreement of
even date herewith (the “License
Agreement”) concerning “Licensed Technology” (as defined therein) for all
uses of “surgical sheets” (as further defined therein) and (ii) that certain
Trademark License Agreement of even date herewith (the “Trademark
Agreement”) related to the License Agreement; and

       

      C.           
 All capitalized terms used herein but not defined herein shall have the
meanings given to them in the License Agreement.

       

      AGREEMENT

       

      NOW
THEREFORE, in consideration of the premises, which are incorporated herein by
this reference, the mutual promises and covenants contained in this Agreement,
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto, intending to be legally
bound, mutually agree as follows:

       

      1.      
      Issuance of Common
Stock.

       

      1.1.           Issuance of Closing
Shares.  Subject to the terms and conditions of this Agreement,
the Company shall and does hereby sell and issue to SaluMedica, and SaluMedica
shall and does hereby subscribe and purchase from the Company, Four Hundred
Thousand (400,000) shares of Common Stock
(the “Closing
Shares”) for a total consideration of the license and other rights
granted by SaluMedica to the Company and the Subsidiary under the License
Agreement and the Trademark Agreement (the “SaluMedica
Consideration”).

       

      1.2.           Issuance of Additional
Shares upon Certain Milestones.  In addition to the Closing
Shares provided for in Section 1.1, the Company shall issue to SaluMedica, if
and only if SaluMedica is entitled thereto under the terms and conditions
contained herein, up to an additional Six Hundred Thousand (600,000) shares of
Common Stock (the “Additional
Shares”) determined and issuable as follows:

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      (a)           First Sale of Licensed
Product Milestone.  If and when the Company or any of its
Affiliates (as defined in the License Agreement”) makes its first (1st)
commercial sale (as contrasted to sales of prototypes, test products and the
like) to a Third Party of any Licensed Product, then the Company shall issue to
SaluMedica an additional One Hundred Thousand (100,000) shares of Common Stock
within thirty (30) days after the Company or any of its Affiliates has delivered
such Licensed Product to the purchaser.

       

      (b)           First Revenue
Milestone.  If and when the Company and its Affiliates in the
aggregate collect Net Revenues (as hereinafter defined) for any period of twelve
(12) consecutive months equal to or greater than twenty million U.S. Dollars
($20,000,000), then the Company shall issue to SaluMedica an additional One
Hundred Thousand (100,000) shares of Common Stock within thirty (30) days after
the Company has collected  such Net Revenues.

       

      (c)           Second Revenue
Milestone.  If and when the Company and its Affiliates in the
aggregate collect Net Revenues for any period of twelve (12) consecutive months
equal to or greater than forty million U.S. Dollars ($40,000,000), then the
Company shall issue to SaluMedica an additional Two Hundred Thousand (200,000)
shares of Common Stock within thirty (30) days after the Company has collected
such Net Revenues.

       

      (d)           Third Revenue
Milestone.  If and when the Company and its Affiliates in the
aggregate collect Net Revenues for any period of twelve (12) consecutive months
equal to or greater than fifty million U.S. Dollars ($50,000,000), then the
Company shall issue to SaluMedica an additional Two Hundred Thousand (200,000)
shares of Common Stock within thirty (30) days after the Company has collected
such Net Revenues.

       

      (e)           For
purposes of this Section 1.2, “Net
Revenues” means all payments collected by the Company or its Affiliates
from the commercial sale of Licensed Products (which for the avoidance of doubt
includes sales of Licensed Products that are permitted under either of the Prior
Agreements), less: (a) sales, use, turnover, excise, value added, and all other
foreign, federal, state, or local taxes (except income tax); (b) custom duties
or consular fees; (c) transportation, freight, and handling charges and
insurance on shipments to customers; (d) ordinary and reasonable trade, cash, or
quantity discounts or rebates to the extent actually granted; and (e) refunds
and credits for any damaged, spoiled, rejected, or returned Licensed Products or
because of retroactive price reductions, rebates, or charge backs; in each case
as determined under generally accepted accounting principles in effect from time
to time in the United States of America.  “Net Revenues” shall also
include any cash (including royalties), and the fair market value of any
non-cash property or rights of any kind, received by the Company or its
Affiliates, directly or indirectly, from the sale, assignment, license,
sublicense or any other assignment or transfer to a third party, of the License
Agreement (or Trademark Agreement), or any rights under the License Agreement
(or the Trademark Agreement).    If any Licensed Products
are incorporated in any other product, device, equipment, or apparatus sold by
the Company or its Affiliates as a combined product, device, equipment, or
apparatus, then the Net Revenues for the purpose of determining whether or not
SaluMedica is entitled to any Additional Shares hereunder shall that proportion
of the Net Revenues of that combined product, device, equipment, or apparatus
which is fairly attributable to such Licensed Products based on the extent of
functionality and performance contributed by such Licensed Products to that
combined product, device, equipment, or apparatus.

       

      
        
           

        

        
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      (f)          
 Expiration
Date.  The right to receive Additional Shares upon the
satisfaction of the conditions precedent related thereto as set forth in this
Section 1.2 shall expire as to any Additional Shares not then earned, if such
conditions precedent have not been satisfied by June 30, 2013 (the “Expiration
Date”).

       

      (g)        
 Adjustments to
Additional Shares.  The number of Additional Shares to be
issued pursuant to this Section 1.2 shall be adjusted appropriately, and
automatically, from time to time as applicable, without any action by the
parties, to reflect any stock split, stock dividend, reverse-split,
recapitalization and the like affecting the outstanding shares of Company common
stock, that occur prior to the date of issuance of any applicable Additional
Shares.  These adjustment(s) shall also be made with respect to
similar capitalization changes in shares of any successor entity to the Company
(by merger, consolidation or otherwise) in connection with, or following, any
Sale of the Company (as defined below).

       

      (h)          
Rule 144
Obligations. The
Company shall take all actions necessary (including but not limited to complying
with all filing requirements under the Securities Exchange Act of 1934, as
amended) to allow SaluMedica to sell the Closing Shares and the Additional
Shares immediately upon SaluMedica’s holding the applicable shares for the
requisite holding periods as prescribed for non-affiliates under Rule 144__
under the Securities Act.

       

      1.3.           Sale of the
Company.  In the event of a Sale of the Company (as hereinafter
defined) on or before the Expiration Date, the parties hereto agree and
acknowledge that the acquirer in such transaction shall be required to assume
any remaining obligations of the Company owed to SaluMedica with respect to the
issuance of Additional Shares pursuant to Section 1.2.  For purposes
of this Section 1.3, “Sale of
the Company” means the consummation of any of the following events in
one, or two or more related, transactions: (i) A complete liquidation of the
Company; (ii) a sale, transfer, or other disposition of all or substantially all
of the Company’s assets or capital interests; or (iii) a merger, consolidation,
or reorganization of the Company with or involving any other entity other than a
merger, consolidation, or reorganization that would result in the voting
securities of the Company outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity) at least fifty percent (50%) of the combined
voting power of the voting securities of the Company (or such surviving entity)
outstanding immediately after such merger, consolidation, or
reorganization.

       

      1.4.           Deliveries.  Upon
the execution of this Agreement:

       

      (a)           The
Company shall deliver to SaluMedica a stock certificate representing the Closing
Shares against SaluMedica’s execution and delivery of the License Agreement and
the Trademark Agreement;

       

      (b)           The
Company and SaluMedica shall execute and deliver the License Agreement, the form
of which is attached hereto as Exhibit
A; and

       

      (c)           The
Company and SaluMedica shall execute and deliver the Trademark Agreement, the
form of which is attached hereto as Exhibit
B.

       

      
        
           

        

        
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      2.            Representations and
Warranties of the Company.  The Company hereby represents and
warrants to SaluMedica that the statements in the following paragraphs of this
Section 2 are all true and complete immediately prior to the Effective Date, and
shall also be true, to the extent applicable, at such times as Additional Shares
are issued by the Company:

       

      2.1.           Organization, Good Standing,
and Qualification.

       

      (a)           The
Company is a corporation duly incorporated, validly existing, and in good
standing under the laws of the State of Florida.  Each of the Company
and its Affiliates has all requisite corporate or company power and authority to
own and operate its properties and assets, to carry on its business as currently
conducted and as it is currently planned to be conducted, and to enter into and
carry out the provisions of this Agreement, the License Agreement, and the
Trademark Agreement.

       

      (b)           Each
of the Company and its Affiliates is duly qualified to transact business and is
in good standing in each jurisdiction in which the nature of the business
conducted by it, or its ownership or leasing of property, or its employment of
employees or consultants therein, makes such qualification necessary and where
any statutory fines or penalties, or any corporate disability imposed for this
failure to qualify, would materially and adversely affect the Company’s or its
Affiliates’ business, properties, assets, or financial condition.

       

      2.2.           Subsidiaries.  Except
for SpineMedica, LLC (a successor by merger to SpineMedica,
Corp),  MiMedx, Inc., and LeveL Orthopedics, LLC, the Company does not
own or control, directly or indirectly, any capital stock or other direct or
indirect ownership interest in any corporation, limited liability company,
partnership, association, or other business entity.

       

      2.3.           Authorization.  All
corporate action on the part of the Company and its officers, directors, and
stockholders necessary for the authorization, execution, and delivery of this
Agreement, the License Agreement, and the Trademark Agreement, the performance
of all obligations of the Company hereunder and thereunder, and the
authorization, issuance, sale, and delivery of the Closing Shares and the
Additional Shares being sold and issued hereunder has been taken and this
Agreement, the License Agreement, and the Trademark Agreement, when executed and
delivered, will constitute valid and legally binding obligations of the Company,
enforceable in accordance with their respective terms, subject to: (i) laws
limiting the availability of specific performance, injunctive relief, and other
equitable remedies; (ii) bankruptcy, insolvency, reorganization, moratorium, or
other similar laws now or hereafter in effect generally relating to or affecting
creditors’ rights generally; and (iii) limitations on the enforceability of any
indemnification provisions.  This Agreement, the License Agreement,
and the Trademark Agreement have been or will be duly executed and delivered by
the Company.

       

      2.4.           Valid Issuance of Closing
Shares and Additional Shares.  The Closing Shares, when issued
and delivered and paid for in compliance with the provisions of this Agreement,
will be duly authorized and validly issued, fully paid, and nonassessable; the
Additional Shares have been duly and validly reserved and, when issued and
delivered and paid for in compliance with the provisions of this Agreement, will
be duly authorized and validly issued, fully paid, and nonassessable; and the
Closing Shares and the Additional Shares will be free of any liens or
encumbrances or restrictions on transfer other than restrictions on transfer
under this Agreement, any agreement in place between the Company and all of its
holders of Common Stock, and applicable state and federal securities
laws.

       

      
        
           

        

        
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      2.5.           No
Broker.  No finder, broker, agent, financial advisor, or other
intermediary has acted on behalf of the Company in connection with the offering
or sale of the Closing Shares or the Additional Shares or the negotiation or
consummation of this Agreement, the License Agreement, the Trademark Agreement,
or any of the transactions contemplated hereby or thereby.

       

      3.           
 Representations
and Warranties of SaluMedica.  SaluMedica hereby represents and
warrants to the Company that the statements in the following paragraphs of this
Section 3 are all true and complete immediately prior to the Effective
Date:

       

      3.1.           Experience.  SaluMedica
experienced in evaluating and investing in private placement transactions of
securities of companies such as the Company, and has either individually or
through its current officers such knowledge and experience in financial and
business matters that it is capable of evaluating the merits and risks of its
prospective investment in the Company, and has the ability to bear the economic
risks of the investment.

       

      3.2.           Accredited
Investor.  SaluMedica is an “accredited investor” within the
meaning of the Securities and Exchange Commission Rule 501 of Regulation D, as
presently in effect, under the Securities Act of 1933, as amended (the “Securities
Act”).  SaluMedica is acquiring the Closing Shares and the
Additional Shares for investment for its own account, not as a nominee or agent,
and not with the view to, or for resale in connection with, any distribution
thereof, without prejudice, however, to its right at all times to sell or
otherwise dispose of all or any part of the Closing Shares or the Additional
Shares under a registration under the Securities Act or under an exemption from
said registration available under the Securities Act.  SaluMedica
further represents that it does not have any contract, undertaking, agreement,
or arrangement with any person to sell, transfer, or grant participation to any
third person with respect to any of the Closing Shares or the Additional
Shares.

       

      3.3.           Restricted
Securities.  SaluMedica acknowledges that the Closing Shares
and the Additional Shares  must be held indefinitely unless
subsequently registered under the Securities Act or an exemption from such
registration is available.  It is aware of the provisions of Rule 144
promulgated under the Securities Act which permit limited resale of shares
purchased in a private placement subject to the satisfaction of certain
conditions, including but not limited to the availability of current information
to the public about the Company.

       

      3.4.           Legends.  SaluMedica
acknowledges that, to the extent applicable, each certificate evidencing the
Closing Shares and the Additional Shares shall be endorsed with the legends
substantially in the form set forth below, as well as any additional legend
imposed or required by the Company’s bylaws and/or shareholders’ agreements or
applicable state securities laws:

       

      
        
           

        

        
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      THESE
SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933 (THE “SECURITIES ACT”) IN RELIANCE ON CERTAIN
EXEMPTIONS CONTAINED THEREIN, OR UNDER THE SECURITIES ACT OF ANY STATE (THE
“STATE ACTS”) IN RELIANCE ON CERTAIN EXEMPTIONS CONTAINED
THEREIN.  THE SECURITIES MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE
DISPOSED OF EXCEPT IN A TRANSACTION (A) REGISTERED UNDER THE SECURITIES ACT OR
EXEMPT FROM REGISTRATION THEREUNDER AND REGISTERED UNDER THE APPLICABLE STATE
ACTS OR EXEMPT FROM REGISTRATION THEREUNDER, OR (B) OTHERWISE IN COMPLIANCE WITH
THE SECURITIES ACT AND THE APPLICABLE STATE ACTS.  THE COMPANY MAY
REQUIRE AN OPINION OF COUNSEL ACCEPTABLE TO IT IN CONNECTION WITH ANY SUCH
TRANSACTION.

       

      Our Board
of Directors is authorized to issue 5,000,000 shares of our Preferred Stock,
$0.001 par value, in one or more series as designated by the Board of Directors.
The Board has the power to designate the relative rights and preferences of our
Preferred Stock, which may include preferences as to dividends or amounts
payable upon liquidation.  Information regarding our Common Stock and
Preferred Stock may be obtained from the Company upon request.

       

      This
written statement is provided pursuant to Section 607.06026 of the Florida
Business Corporation Act.

       

      3.5.           Authorization.  All
company action on the part of SaluMedica and its officers, managers, and members
necessary for the authorization, execution, and delivery of this Agreement, the
License Agreement, and the Trademark Agreement, and the performance of all
obligations of SaluMedica hereunder and thereunder, has been taken and this
Agreement, the License Agreement, and the Trademark Agreement, when executed and
delivered, will constitute valid and legally binding obligations of SaluMedica,
enforceable in accordance with their respective terms, subject to: (i) laws
limiting the availability of specific performance, injunctive relief, and other
equitable remedies; (ii) bankruptcy, insolvency, reorganization, moratorium, or
other similar laws now or hereafter in effect generally relating to or affecting
creditors’ rights generally; and (iii) limitations on the enforceability of any
indemnification provisions.  This Agreement, the License Agreement,
and the Trademark Agreement have been or will be duly executed and delivered by
the Company.

       

      3.6.           Reliance Upon Investor’s
Representations.  SaluMedica understands that the Closing
Shares have not been, and the Additional Shares will not be, registered under
the Securities Act by reason of a specific exemption from the registration
provisions of the Securities Act which depends upon, among other things, the
bona fide nature of the investment intent as expressed
herein.  SaluMedica understands and acknowledges that the offering of
the Closing Shares and the Additional Shares pursuant to this Agreement will not
be registered under the Securities Act on the ground that the sale provided for
in this Agreement and the issuance of securities hereunder is exempt from the
registration requirements of the Securities Act.

       

      3.7.           Investment
Decision.  SaluMedica’s investment decision with respect to the
Closing Shares and the Additional Shares was made at its offices located in
Atlanta, Georgia

       

      
        
           

        

        
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      3.8.           Full
Consideration.  The Closing Shares and are fair, adequate, and
legally sufficient  consideration for the License Agreement and the
Trademark Agreement. For the avoidance of doubt, the issuance or failure to
issue Additional Shares, and the breach by the Company of any representation,
warranty or covenant hereunder other than the issuance of the Closing Shares,
shall have no impact or effect on the License Agreement or the Trademark
Agreement.   Nothing in this Section 3.8 shall limit SaluMedica’s
rights under Section 5.3 hereof.

       

      3.9.           Insolvency
Proceedings.  Neither SaluMedica nor any of its properties or
assets are the subject of any pending, rendered, or threatened insolvency
proceedings of any character.  SaluMedica has not made an assignment
for the benefit of creditors or taken any action with a view to, or that would
constitute a valid basis for the institution of, any such insolvency
proceedings.  SaluMedica is not insolvent and nor will it become
insolvent as a result of entering into this Agreement, the License Agreement,
and/or the Trademark Agreement.

       

      3.10.         No
Violation.  SaluMedica is not in violation or breach of, and
entering into this Agreement will not violate or breach, any agreement,
contract, order of any court or arbitral body binding on SaluMedica, and
SaluMedica and has the full unencumbered and unrestricted right, power and
authority (subject to the restrictions in the GTRC License)  to enter
into this Agreement, the License Agreement and the Trademark Agreement, and no
Third Party has any right or claim to the rights granted to the Company
hereunder and thereunder, nor to the Closing Shares or Additional
Shares.

       

      4.           
 Covenants.

       

      4.1.           General
Cooperation.  In case at any time after the Effective Date any
further actions are necessary or desirable to carry out the purposes of this
Agreement and effect the transactions contemplated by this Agreement, including,
without limitation, the execution and delivery of any certificates, instruments,
or other documents, each of the parties hereto will take such further actions
(including, without limitation, the execution and delivery of such further
certificates, instruments, or other documents) as the other party hereto may
reasonably request, all at the sole cost and expense of the requesting
party.

       

      4.2.           Survival
Periods.  All covenants and agreements and representations and
warranties contained in or made pursuant to this Agreement shall continue and
survive the execution of this Agreement.

       

      5.       
     Miscellaneous.

       

      5.1.           Expenses.   Each
party shall bear all of its own expenses, costs, and fees (including attorneys’,
auditors’, and financing fees, if any) incurred in connection with the
transactions contemplated hereby, including the preparation, execution, and
delivery of this Agreement and compliance herewith.

       

      5.2.           Governing
Law.  This Agreement shall be governed by, and shall be
construed and enforced in accordance with, the laws of the State of Florida
applicable to agreements entered into and performed within such State, but
without reference to the conflicts of law rules of such State.

       

      
        
           

        

        
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      5.3.           Specific
Performance.  Each party hereto acknowledges and agrees that,
in the event of any breach of this Agreement, the non-breaching party would be
irreparably and immediately harmed and could not be made whole by monetary
damages.  It is accordingly agreed that each party hereto: (i) shall
be entitled, in addition to any other remedy to which it may be entitled at law
or in equity, to compel specific performance of this Agreement; and (ii) shall
waive, in any action for specific performance, the defense of the adequacy of a
remedy at law.

       

      5.4.           Binding
Effect.  This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and permitted
assigns.  This Agreement shall not be assignable by any party hereto
without the prior written consent of the other party, and any attempt to assign
this Agreement without such consent shall be void and of no
effect.  Nothing in this Agreement, expressed or implied, is intended
or shall be construed to confer upon any person, other than the parties hereto
and the successors and assigns permitted by this Section, any right, remedy, or
claim under or by reason of this Agreement.

       

      5.5.           Entire Agreement; Amendment;
and Waiver.  This Agreement, the License Agreement, and the
Trademark Agreement constitute the entire agreement between the parties hereto
with respect to the subject matter hereof, and this Agreement, the License
Agreement, and the Trademark Agreement  supersedes and renders null
and void any and all other prior oral or written agreements, understandings, or
commitments pertaining to the subject matter hereof.  Neither this
Agreement nor any term hereof may be amended, waived, discharged, or terminated
except by a written instrument signed by all the parties hereto.  The
failure of any party to this Agreement to insist upon the strict performance of
any of the terms, conditions, or provisions of this Agreement shall not be
construed as a waiver or relinquishment of future compliance therewith, and said
terms, conditions, and provisions shall remain in full force and
effect.

       

      5.6.           Invalidity.  Should
any part of this Agreement, for any reason whatsoever, be declared invalid,
illegal, or incapable of being enforced in whole or in part, such decision shall
not affect the validity of any remaining portion, which remaining portion shall
remain in full force and effect as if this Agreement had been executed with the
invalid portion thereof eliminated, and it is hereby declared to be the
intention of the parties hereto that they would have executed the remaining
portion of this Agreement without including therein any portion which may for
any reason be declared invalid.

       

      5.7.           Notices.  All
notices, consents, waivers, requests, instructions, or other communications
required or permitted hereunder shall be in writing or by written electronic
transmission, and shall be deemed to have been duly given if (a) delivered
personally (effective upon delivery), (b) sent by a reputable, established
international courier service that guarantees delivery within three (3) business
days (effective upon receipt), (c) mailed by certified mail, return receipt
requested, postage prepaid (effective upon receipt), or (d) sent by facsimile or
e-mail with confirmation of transmission by the transmitting equipment
(effective upon receipt), addressed as follows (or to such other address as the
recipient may have furnished for the purpose pursuant to this
Section):

      
        
           

        

        
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      If to the
Company:

      

      MiMedx
Group, Inc.

      1234
Airport Road, Suite 105

      Destin,
Florida 32541

      Attention:  Steve Gorlin,
Chairman

      Facsimile:  (805)
650-2213

      Email:
sgorlin@gorlincompanies.com

      

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

      

      G.
Donald Johnson, Esq.

      Womble Carlyle Sandridge
& Rice, PLLC

      1201 West
Peachtree Street, Suite 3500

      Atlanta,
Georgia 30309

      Facsimile:
(404) 870-4878

      Email:
DJohnson@wcsr.com

      

      If to
SaluMedica:

      

      SaluMedica,
LLC

      4451
Atlanta Road, S.E., Suite 138

      Smyrna,
Georgia 30080

      Attention:
Robert R. Singer

      Facsimile:
(404) 589-1737

      Email:
bobby.singer@salumedica.com

      

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

      

      Randall
W. Johnson, Esq.

      Ledbetter
Johnson Wanamaker, LLP

      1175
Peachtree Street N.E.

      100
Colony Square, Suite 1100

      Atlanta,
Georgia  30361

      Facsimile:
(404) 835-9450

      Email:
rjohnson@ljwlaw.com

      

      5.8.           Captions.  The
captions contained in this Agreement are for convenience of reference only and
shall not control or affect the meaning or construction of any of the provisions
of this Agreement.

       

      5.9.           Counterparts.  This
Agreement may be executed in one or more counterparts, all of which will be
considered one and the same agreement and will become effective when one or more
counterparts have been signed by each of the parties and delivered to the other
party, regardless of whether all of the parties have executed the same
counterpart.  Counterparts may be delivered via facsimile, electronic
mail (including pdf), or other transmission method and any counterpart so
delivered shall be deemed to have been duly and validly delivered and be valid
and effective for all purposes.

       

      
        
           

        

        
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      5.10.          Arbitration.  Any
dispute, claim, or controversy arising out of or in connection with this
Agreement, other than a claim for specific performance under Section 5.3
hereof,  shall be finally determined by arbitration in accordance with
the Commercial Arbitration Rules of the American Arbitration Association (the
“Rules”).  Unless
the Parties shall otherwise mutually agree, there shall be one (1)
arbitrator.  Any judgment or award rendered by the arbitrator shall be
final, binding, and nonappealable.  The place of arbitration shall be
Atlanta, Georgia.  Neither of the Parties shall contest the choice of
Atlanta, Georgia as the proper forum for such dispute, and notice in accordance
with Section 5.7 shall be sufficient for the arbitrator to conduct such
proceedings.  If the Parties are unable to agree on an arbitrator, the
arbitrator shall be selected in accordance with the Rules.  In
resolving any dispute, the Parties intend that the arbitrator apply the
substantive laws of the State of Florida, without regard to the choice of law
principles thereof.  The Parties intend that the provisions to
arbitrate set forth herein be valid, enforceable, and
irrevocable.  The Parties agree to comply with any award made in any
such arbitration proceedings that has become final in accordance with the Rules
and agree to enforcement of, or entry of judgment upon such award, by any court
of competent jurisdiction.  Without limiting the provisions of the
Rules, unless otherwise agreed in writing by the Parties or permitted by
this  Agreement, the Parties shall keep confidential all matters
relating to the arbitration or the award, provided, such matters may be
disclosed (a) to the extent reasonably necessary in any proceeding brought to
enforce the award or for entry of a judgment upon the award and (b) to the
extent otherwise required by law.  Notwithstanding any provision of
the Rules to the contrary, the Party other than the prevailing Party in the
arbitration shall be responsible for all of the costs of the arbitration,
including, without limitation, legal fees and other costs associated with such
arbitration incurred by either Party.

       

      [SIGNATURES
FOLLOW ON THE NEXT PAGE]

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      [SIGNATURES
TO INVESTMENT AGREEMENT]

      

      

      IN
WITNESS WHEREOF, the parties hereto have executed this Investment Agreement to
be effective as of the Effective Date.

      

      

      
        	
                SALUMEDICA,
      LLC

              	 
      	
                MIMEDX
      GROUP, INC.

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                By:
      /s/ Robert R.
      Singer

              	 
      	
                By:
      /s/ Matthew J.
      Miller

              
	
                Name:
      Robert R.
      Singer

              	 
      	
                Name:
      Matthew J.
      Miller

              
	
                Title:
      President

              	 
      	
                Title:
      Executive Vice
      Presidentex10_55.htm

    
      

    

    
      EXHIBIT 10.55

       

      EXECUTION
COPY

      

      

      TECHNOLOGY LICENSE
AGREEMENT

      

      

      This
TECHNOLOGY LICENSE AGREEMENT (this “License
Agreement”) is made and effective as of the 31st day of
March, 2008 (the “Effective
Date”), by and between SaluMedica, LLC, a Georgia limited liability
company (“Licensor”),
and MiMedx, Inc., a Florida corporation (“MiMedx”;
and, together with any Affiliate or successor-in-interest of MiMedx, “Licensee”).

       

      RECITALS:

       

      A.        
   Licensor and Licensee (specifically, SpineMedica, LLC (a
successor by merger to SpineMedica, Corp), a subsidiary of MiMedx) are parties
to that certain Technology License Agreement, dated August 12, 2005 (the “2005
Spine License”), concerning “Licensed Technology” (as defined in the 2005
Spine License) for all neurological and orthopedic uses, including muscular and
skeletal uses, related to the human spine;

       

      B.        
   Licensor and Licensee (specifically, MiMedx) are parties to
that certain Technology License Agreement, dated August 3, 2007,  as
amended by that certain First Amendment to Technology License Agreement, dated
August 3, 2007 (the “2007 Hand
License”; and, together with the 2005 Spine License, the “Prior
Agreements”), concerning “Licensed Technology” (as defined in the 2007
Hand License) for all neurological and orthopedic uses, including muscular and
skeletal uses, related to the rotator cuff and the hand (excluding the
wrist);

       

      C.         
  Licensor and Licensee have entered into that certain Investment
Agreement of even date herewith (the “Investment
Agreement”) pursuant to which, among other things, Licensor has
subscribed for the “Closing Shares” (as defined in the Investment Agreement) in
exchange for the license and other rights granted by Licensor to Licensee in
this License Agreement;

       

      D.        
   Licensor is the owner of certain intellectual property rights
with regard to certain biomaterials known as SalubriaTM biomaterials, and such
intellectual property rights are included in the Licensed Technology (as defined
hereinafter); and

       

      E.         
   Licensee is desirous of obtaining and commercializing certain
intellectual property rights under the terms set forth herein;

       

      
      

      NOW
THEREFORE, in consideration of ten U.S. dollars ($10.00) in hand paid, the
Closing Shares, the premises, the promised performance of each of the parties of
the terms set forth herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto,
intending to be legally bound, mutually agree as follows:

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      1.        
    Incorporation
of Recitals; Prior Agreements.  The above recitals are
by this reference incorporated herein as if set forth with particularity and are
made part of this License Agreement.  To the extent the Prior
Agreements are inconsistent with or contradict this License Agreement, the terms
of this License Agreement shall supersede the terms of the Prior Agreements;
provided however, that the terms of this License Agreement shall not constitute
an amendment to the Prior Agreements.

       

      
        	
                 
      

              	
                2.

              	
                Definitions.

              

      

       

      “Affiliate”
means, with respect to any Person, a Person that directly or indirectly through
one or more intermediaries, controls, is controlled by, or is under common
control with such Person.  “Control”
(including the terms “controlled by” and “under common control with”) means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management policies of a Person, whether through the ownership
of voting securities, by contract or credit arrangement, as trustee or executor,
or otherwise.  Without limiting the foregoing, SpineMedica, LLC (a
successor by merger to SpineMedica, Corp), MiMedx Group, Inc., and LeveL
Orthopedics, LLC are Affiliates of MiMedx.

       

      “Background
Technology” means technical and other information in the possession of
Licensor that is necessary or convenient to Practice the Licensed Technology and
that is in the public domain.

       

      “Confidential
Information” means all confidential information and trade secrets (a)
related to the business plans and affairs, property, methods of operation,
processing systems, designs, or other information of the disclosing party and
(b) in the Field of Use and comprised in, relating to, or arising out of the
Licensed Technology that is proprietary to the disclosing party or licensed or
otherwise transferred to the disclosing party by any Person, that is not
generally known to the public, whether such information is disclosed orally, in
writing, or otherwise.  Notwithstanding the foregoing, for purposes of
the license granted to Licensee herein (but not for purposes of Section 8.3
hereof), Confidential Information shall not include information that Licensor
obtains after the Effective Date and which is subject to restrictions on further
disclosure that would be breached by a disclosure to Licensee.

       

      “Effective
Date” means the effective date of this License Agreement, as set out
above.

       

      “Field of
Use” means all uses of surgical sheet(s) as described
hereinafter.  The term “surgical
sheet” means a piece or pieces of material using a polyvinyl alcohol
cryogel that provides an anti-adhesive barrier used to impede, inhibit, or
prevent the development of adhesions that: (a) is fabricated in a substantially
planar form, noting however, that in packaging or in position, in or on the
body, the surgical sheet can conform to the shape of local anatomy or structure;
and (b) can have any perimeter shape with a thickness or thicknesses of up to
seven (7) millimeters or less.  The surgical sheet can be used as an
adjunct to surgical procedures to inhibit or impede the development of adhesions
or scarring that may otherwise occur incident to the surgical procedure or to
provide a plane of dissection for a revision surgery.  The surgical
sheet can also be used: (1) in repairs by patching organs or other tissues,
including, without limitation, for urinary, intestinal, colon, stomach, hernial,
gynecologic, and cardiac patches; (2) as a substitute for the dura; and (3) as
an anti-adhesive dressing or covering used externally for wounds, burns, and/or
other skin conditions.  Notwithstanding the foregoing, The Field of
Use shall exclude any use in articulating joints.

      
        
           

        

        
          - 2
-

          
            

          

        

        
           

        

      

      “GTRC”
means Georgia Tech Research Corporation.

       

      “GTRC
License” means that certain License Agreement, dated March 5, 1998, by
and between GTRC and Licensor, as amended from time to time.

       

       “Improvement
Patents” means all patents or patent applications disclosing and claiming
any Improvements and all future patent applications, patents, divisions,
reissues, continuations, continuations-in-part, renewals, and extensions validly
claiming priority to any of these patents or patent applications.

       

      “Improvements”
means any enhancements, additions, changes, supplements, or other improvements
to the Licensed Technology as they relate to the Field of Use, whether or not
patentable, that are now existing or otherwise developed by Licensor or Licensee
after the Effective Date.

       

      “Know-How”
means all technical and other information, intellectual property, or knowledge
useful to Practice the Licensed Technology in the Field of Use in the possession
of Licensor on the Effective Date or at any time after the Effective Date that
is necessary or convenient to Practice the Licensed Technology in the Field of
Use, which is not in the public domain, including, without limitation, concepts,
discoveries, data, designs, formulae, ideas, inventions, methods, models,
assays, research plans, procedures, processes, designs for experiments and tests
and results of experimentation and testing (including, without limitation,
results of research or development), processes (including, without limitation,
manufacturing processes, specifications, and techniques), laboratory records,
chemical, clinical, analytical, and quality data, trial data, case report forms,
data analyses, reports, manufacturing data or summaries, and information
contained in submissions to and information from regulatory authorities, and
includes any rights including, without limitation, copyright, database, or
design rights protecting any of the foregoing.  The fact that an item
is known to the public shall not be taken to exclude the possibility that a
compilation including the item, or a development relating to the item, is or
remains not known to the public.  Notwithstanding the foregoing, Know
How shall not include information or knowledge that Licensor obtains after the
Effective Date subject to restrictions on disclosure or use by Third
Parties.

       

      “License
Agreement” means this Technology License Agreement, as it may be amended
from time to time.

       

      “Licensed
Patents” means (a) Patents Under License, (b) Owned Patents, and (c)
Licensor’s Improvement Patents.

       

      “Licensed
Product” means any product or device that is developed, manufactured,
produced, expressed, used, sold or offered for sale, or licensed for use by
Licensee, its sublicensees or assignees, or their contract manufacturers,
utilizing the Licensed Technology in the Field of Use.

       

      
        
           

        

        
          - 3
-

          
            

          

        

        
           

        

      

      “Licensed
Technology” means the Licensed Patents, the Confidential Information, the
Know How, the Improvements, and the Improvement Patents, in each and every case
only as they relate to the Field of Use.

       

      “Licensee
Indemnitees” has the meaning set forth in Section 6.1.

       

      “Licensor
Indemnitees” has the meaning set forth in Section 6.2.

       

      “Losses”
has the meaning set forth in Section 6.1.

       

      “Owned
Patents” means the patents and patent applications listed in Section II
of Appendix
A and all of Licensor’s future patent applications, patents, divisions,
reissues, continuations, continuations-in-part, renewals, and extensions thereof
or related thereto in the United States and in foreign jurisdictions validly
claiming priority to any of these patents and patent
applications.  The Parties acknowledge that U.S. Patent No. 6,231,605
is a continuation-in-part of U.S. Patent No. 5,981,826.  Although the
pending patent applications listed in Section II of Appendix
A are presently identified as owned by Licensor, it is possible that one
or more of the continuation applications may be owned by GTRC or may be co-owned
by GTRC and Licensor, depending on the claimed subject matter.  To the
extent that GTRC has any ownership rights to the continuations listed in Section
II of Appendix
A, Licensor represents and warrants that it is the exclusive licensee
thereof pursuant to the terms of the GTRC License.  The Parties agree
that if such ownership rights of a continuation patent application or issuing
patent should change to be owned in whole or in party by GTRC, then such
application or patent shall, without any action by the Parties,  be
included under the term “Patents Under License.”

       

      “Parties”
means Licensor and Licensee, and “Party”
means either one of them.

       

      “Patents
Under License” means the patents and patent applications listed in
Section I of Appendix
A and any and all of Licensor’s future patent applications, patents,
divisions, reissues, continuations, continuations-in-part, renewals, and
extensions thereof or related thereto in the United States and elsewhere validly
claiming priority to any of these patents and patent applications.

       

      “Person”
means any natural person, firm, partnership, association, corporation, limited
liability company, trust, business trust, or other entity.

       

      “Practice”
means the right in the Field of Use to make, have made, manufacture, have
manufactured, use, offer to sell, sell, market, distribute, import, or export
Licensed Products.

       

      “Rules”
has the meaning set forth in Section 8.7.

       

      “Third
Party” means any Person other than the Parties.

       

      
        	
                 
      

              	
                3.

              	
                License.

              

      

       

      3.1           Licensor
hereby grants to Licensee an exclusive, fully-paid, worldwide, royalty-free,
perpetual, irrevocable, and non-terminable (except as provided in the
termination provisions of the GTRC License) license, with the right to
sublicense, to Practice the Licensed Technology in the Field of
Use.  Licensor will grant Licensee reasonable access to and the
ability to make copies of all Background Technology and Licensed
Technology.

       

      
        
           

        

        
          - 4
-

          
            

          

        

        
           

        

      

      3.2           Licensor
shall not itself, nor shall it directly or indirectly assist or consent to any
Third Party to, manufacture, have manufactured, use, offer for sale, sell,
market, distribute, import, or export Licensed Products or otherwise Practice
the Licensed Technology in the Field of Use.

       

      3.3           Licensor
shall have the exclusive right and authority, in its own name, to apply for,
prosecute, and obtain Owned Patents.

       

      3.4           Either
Party may seek to obtain Improvement Patents in its own name, subject to
applicable laws, treaties, and regulations.

       

      3.5           Licensee
shall have the right and authority, in the name of Licensor, to file for
continuation with respect to any Licensed Patents after providing written notice
to Licensor of Licensee’s intent to make such filing.

       

      3.6           Notwithstanding
anything herein to the contrary, Licensor shall have no right to terminate this
License Agreement or the license granted to Licensee under Section
3.1.

       

      3.7           Licensee
hereby grants to Licensor an exclusive, fully-paid, royalty-free, irrevocable
and non-terminable license to Practice the Improvement Patents outside the Field
of Use.

       

      4.         
  License
Fee.  In consideration
of the license and other rights granted herein by Licensor to Licensee, Licensee
shall enter into the Investment Agreement and issue to the Licensor the Closing
Shares (as defined in the Investment Agreement).  The Parties agree
and acknowledge that the Closing Shares shall constitute fair, adequate, and
legally sufficient consideration for the license and other rights granted
herein.  Licensor acknowledges and agrees that the issuance or
non-issuance of Additional Shares under the Investment Agreement has no effect
whatsoever on this Agreement and the rights granted to Licensee
hereunder.

       

      5.      
     Representations
and Warranties.  Licensor hereby
represents and warrants to Licensee that as of the Effective Date:

       

      5.1           Licensor
has the full right and power to grant the license set forth in Section 3 of this
License Agreement.

       

      5.2           The
Closing Shares constitute fair, adequate, and legally sufficient consideration
for the license set forth in Section 3 of this License Agreement.

       

      5.3           Appendix
A sets forth an accurate and complete list of all patents and patent
applications owned, under license, or otherwise controlled by Licensor that are
necessary or convenient to Practice the Licensed Technology in the Field of
Use.

       

      5.4           Licensor
has received no notice of any claims or suits pending and, to the best knowledge
of Licensor, there are no claims or suits threatened against Licensor
challenging Licensor’s ownership of or right to use any of the Licensed
Technology, nor, to the best knowledge of Licensor, does there exist any basis
therefor.

       

      
        
           

        

        
          - 5
-

          
            

          

        

        
           

        

      

      5.5           Licensor
has received no notice of any claims or suits against Licensor pending and, to
the best knowledge of Licensor, there are no claims or suits threatened against
Licensor alleging that any of the Licensed Technology infringes any rights of
any Third Parties in the Field of Use, nor, to the best knowledge of Licensor,
does there exist any basis therefor.

       

      5.6           To
the best knowledge of Licensor, no person has infringed or is infringing the
Licensed Patents or has misappropriated any of the Licensed
Technology.

       

      5.7           Licensor’s
granting of the license set forth in Section 3 of this License Agreement and
Licensee’s exercise of its rights hereunder does not and shall not constitute a
breach or default under (a) any agreement or instrument by which Licensor is
bound or (b) to the best knowledge of Licensor, any instrument affecting the
Licensed Technology.

       

      5.8           To
the best knowledge of Licensor, Licensee’s Practice of the Licensed Technology
in the Field of Use shall not result in patent infringement or trade secret
misappropriation.

       

      5.9           Except
as otherwise specifically provided in this Section 5, (a) the license granted in
this License Agreement is “as is” and with all faults and (b) Licensor makes no
representations or warranties, express or implied, regarding (i) merchantability
or fitness of the Licensed Technology for a particular purpose, (ii)
non-infringement of any Licensed Technology with any rights of Third Parties, or
(iii) validity or scope of any Licensed Patent.

       

      5.10           Any
claim regarding the breach of a representation or warranty by Licensor in this
License Agreement must be made within two (2) years after the Effective
Date.

       

      
        	
                 
      

              	
                6.

              	
                Indemnification;
      Insurance.

              

      

       

      6.1           Licensor
shall indemnify, defend, and hold harmless Licensee and Licensee’s sublicensees
and assignees hereunder, and their respective officers, directors, managers,
shareholders, members, employees, agents, and advisors (collectively, the “Licensee
Indemnitees”), from and against any and all loss, damage, claim,
obligation, liability, cost, and expense (including, without limitation,
reasonable attorneys’ fees and costs and expenses incurred in investigating,
preparing, defending against, or prosecuting any litigation, claim, proceeding,
or demand), of any kind or character (“Losses”)
resulting from:

       

      (a)           any
breach by Licensor of this License Agreement, including, but not limited to, any
breach of Licensor’s representations and warranties made herein, provided that
any such claim for indemnification for breach of representation or warranty must
be instituted by Licensee prior to the second (2nd)
anniversary of the Effective Date; or

       

      (b)           the
Practice by Licensor or its licensees (other than Licensee or its sublicenses or
assignees) of any of the Licensed Technology outside the Field of Use,
including, without limitation, advertising injury, personal injury, product
liability, medical malpractice, or loss or damage to medical or other data,
except to the extent such Losses result from any acts of Licensee for which
Licensor is entitled to indemnification under Section 6.2.

       

      
        
           

        

        
          - 6
-

          
            

          

        

        
           

        

      

      6.2           Licensee
shall indemnify, defend, and hold harmless Licensor and Licensor’s officers,
directors, managers, shareholders, members, employees, agents, and advisors (the
“Licensor
Indemnitees”) from and against any and all Losses resulting
from:

       

      (a)           any
breach by Licensee of this Licensee Agreement; and

       

      (b)           the
Practice by Licensee or its sublicensees and assignees of any Licensed
Technology, including, without limitation, advertising injury, personal injury,
product liability, medical malpractice, or loss or damage to medical or other
data, except to the extent such Losses result from any acts of Licensor for
which Licensee is entitled to indemnification under Section 6.1.

       

      6.3           During
the term of this Agreement, Licensee shall maintain product liability insurance
in reasonable amounts and to the extent available and name Licensor as
additional insured if Licensee can reasonably do so and without incurring
additional premium.

       

      
        	
                 
      

              	
                7.

              	
                Patent
      Maintenance, Infringement, and Enforcement.

              

      

       

      7.1           Licensor
shall maintain the Owned Patents at its sole cost and expense.  If
Licensor elects not to pay or for any reason fails to pay any maintenance or
annuity fees for any of the Licensed Patents as they relate to the Field of Use
within the non-surcharge payment time window, Licensee shall have the right (but
not the obligation) to pay any such maintenance or annuity fees and seek
reimbursement thereof from Licensor.  Licensor shall pay such
reimbursement within ten (10) days after Licensee’s written request
therefor.

       

      7.2           If
Licensor or Licensee determines that any Licensed Patent or Licensee’s rights in
the Licensed Technology are being infringed in any field of use, or a claim
arises that the Licensed Technology infringes the rights of a Third Party, then
Licensor or Licensee (as applicable) shall notify promptly the other Party,
giving as many particulars concerning such infringement as shall be practicable
at the time.

       

      7.3           Upon
becoming aware of a potential infringer or an asserted infringement, Licensor
shall diligently investigate and shall determine, in the exercise of reasonable
judgment and good practice, whether the activities in question in fact
constitute infringement.  The Parties shall promptly confer with
respect to the initiation and prosecution of litigation against an alleged
infringer, or defense of a Third Party infringement claim, as the case may be,
but Licensor shall have the right of ultimate decision with respect to a breach
outside of the Field of Use and Licensee shall have the right of ultimate
decision with respect to a breach inside the Field of Use, including, without
limitation, the right to settle or compromise any claim or consent to the entry
of any judgment with respect to any claim.

       

      7.4           Subject
to Licensee’s right to initiate an infringement action regarding the Licensed
Technology in the Field of Use in Section 7.5 below, Licensor shall, in the
event that an infringement appears to be occurring in any application involving
the Licensed Technology outside the Field of Use, have the first right,
discretion, and authority (but not obligation), at its sole expense, to either
defend a Third Party claim, or bring infringement proceedings naming the
asserted infringer within not more than ninety (90) days of a determination of
probable infringement at its own cost and retain all recovery therefrom, and
Licensee shall provide all necessary assistance and cooperation reasonably
requested by Licensor, at Licensor’s sole expense.  In furtherance of
such right, Licensee shall join Licensor as a party plaintiff in any such suit
whenever requested by Licensor or required by applicable law, at Licensor’s sole
expense.  If the Licensor fails for any reason to take action to
defend or to bring such infringement proceedings within ninety (90) days, and
failure to do so would reasonably jeopardize Licensee’s ability to Practice the
Licensed Technology in the Field of Use, Licensee shall have the right to do so
(including, without limitation, the right to require Licensor to join Licensee
as a party plaintiff in any such suit whenever requested by Licensee or required
by applicable law) at its own expense and to retain all damages or other
recovery.

       

      
        
           

        

        
          - 7
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      7.5           With
regard to infringement by a Third Party of the Licensed Technology appearing to
be solely in the Field of Use, Licensee shall have the first right, discretion,
and authority (but not obligation) to prosecute at its own expense any such
infringement of any Licensed Patent or the other Licensed Technology occurring
in the Field of Use at its own cost, and to keep any recovery or damages for
infringement derived therefrom.  Licensor agrees to cooperate as a
necessary party in any proceeding as appropriate, including, without limitation,
join Licensee as a party plaintiff in any such suit whenever requested by
Licensee or required by applicable law, at Licensee’s sole
expense.  If Licensee does not elect to bring such infringement
proceedings within ninety (90) days of a determination of probable infringement,
and failure to do so would reasonably jeopardize Licensor’s ability to Practice
outside the Field of Use, Licensor shall have the right but not obligation to do
so at its own expense and to retain all damages or other recovery.  In
furtherance of such right, Licensee shall join Licensor as a party plaintiff in
any such suit whenever requested by Licensor or required by applicable law, at
Licensor’s sole expense.

       

      7.6           Notwithstanding
the foregoing provisions of this Section 7, in the event a recovery relates to
both the Field of Use and other applications of the Licensed Technology, then
any damages or other recovery shall, subject to reimbursement of attorneys’ fees
and costs and expenses incurred in investigating, preparing, defending against,
or prosecuting any litigation, claim, proceeding, or demand, be appropriately
allocated between Licensor and Licensee.   If the Parties are
unable to agree on an appropriate allocation of damages or other recovery within
ninety (90) days, they shall submit the decision to arbitration pursuant to
Section 8.7 hereof.

       

      7.7           Each
Party will provide reasonable cooperation in connection with any adversarial
proceeding conducted by the other Party involving any Licensed Patent,
including, without limitation, producing documents, answering interrogatories,
and sitting for depositions, at no cost to the other Party other than recovery
of its actual out-of-pocket expenses directly incurred in providing such
cooperation.

       

      
        	
                 
      

              	
                8.

              	
                Miscellaneous.

              

      

       

      8.1           Notices.  All
notices, consents, waivers, requests, instructions, or other communications
required or permitted hereunder shall be in writing or by written electronic
transmission, and shall be deemed to have been duly given if (a) delivered
personally (effective upon delivery), (b) sent by a reputable, established
international courier service that guarantees delivery within three (3) business
days (effective upon receipt), (c) mailed by certified mail, return receipt
requested, postage prepaid (effective upon receipt), or (d) sent by facsimile or
e-mail with confirmation of transmission by the transmitting equipment
(effective upon receipt), addressed as follows (or to such other address as the
recipient may have furnished for the purpose pursuant to this Section
8.1):

       

      
        
           

        

        
          - 8
-

          
            

          

        

        
           

        

      

      If to
Licensor:

       

      SaluMedica,
LLC

      4451
Atlanta Road, S.E., Suite 138

      Smyrna,
Georgia 30080

      Attention:
Robert R. Singer

      Facsimile:
(404) 589-1737

      Email:  bobby.singer@salumedica.com

      

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

       

      Randall
W. Johnson, Esq.

      Ledbetter
Johnson Wanamaker, LLP

      1175
Peachtree Street N.E.

      100
Colony Square, Suite 1100

      Atlanta,
Georgia  30361

      Facsimile:
404-835-9450

      Email:
rjohnson@ljwlaw.com

      

      If to
Licensee:

      

      MiMedx,
Inc.

      1234
Airport Road, Suite 105

      Destin,
Florida  32541

      Attention:  Steve
Gorlin, Chairman

      Facsimile:  (805)
650-2213

      Email:
sgorlin@gorlincompanies.com

      

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

       

      G. Donald
Johnson, Esq.

      Womble
Carlyle Sandridge & Rice, PLLC

      1201 West
Peachtree Street, Suite 3500

      Atlanta,
Georgia 30309

      Facsimile:
(404) 870-4878

      Email:
DJohnson@wcsr.com

      

      Changes
to the above notification addresses may be made by notice to the Parties in the
manner set forth above.

       

      
        
           

        

        
          - 9
-

          
            

          

        

        
           

        

      

      8.2           Assignment and
Sublicense.  Licensee may assign this License Agreement, assign
or sublicense any rights under this License Agreement, and delegate any of its
obligations under this License Agreement to any Third Party; provided however,
that (a) Licensee must comply with the notice and payment obligations set forth
in Section 4.1 of the GTRC License, (b) the sublicense, assignment, or
delegation shall not affect Licensee’s obligations to Licensor under this
License Agreement and Licensee shall remain liable as a primary obligor to
Licensor for breach of this License Agreement by Licensee or its sub-licensees,
assignees, or delegates, (c) the sublicense, assignment, or delegation must
include a binding obligation on the sub-licensee, assignee, or delegate to
comply with all the patent protection, confidentiality, and other obligations of
Licensee in this License Agreement subject to such sublicense, assignment, or
delegation, and (d) Licensee must provide Licensor reasonable prior written
notice providing the terms of such sublicense, assignment, or delegation, as
they relate to insuring the Third Party’s compliance with the terms of this
License Agreement, to the extent such notification obligation can be complied
with without breach of any confidentiality obligation of
Licensee.  Licensor shall have the right to assign this License
Agreement, provided that the assignment must occur in conjunction with an
assignment of the Licensed Technology.  No further contribution or
payment to Licensor shall be due in the event of a sublicense, assignment, or
delegation by Licensee.  Without limiting the generality of the
foregoing, this License Agreement shall survive unimpaired and remain in full
force and effect in the event of any sale of assets, merger, or other
transaction involving the sale of assets or capital stock of either Licensor or
Licensee.

       

      8.3           Confidentiality.  For
a period of two (2) years after the Effective Date, each Party covenants and
agrees, with respect to the Confidential Information of the other Party, as
follows: (a) to receive and hold such Confidential Information in confidence;
(b) to protect and safeguard such Confidential Information against unauthorized
use, publication, and disclosure; (c) not to use any of such Confidential
Information or derivatives thereof except as permitted by this License
Agreement; and (d) to restrict access to such Confidential Information to those
of its officers, managers, directors, employees, agents, and advisors who
clearly have a need to access to such Confidential
Information.  Notwithstanding the foregoing, after such two (2) year
period, any Confidential Information that is also a trade secret under
applicable law shall continue to be subject to the obligations imposed in this
Section as long as it remains a trade secret.

       

      8.4           Binding
Agreement.  This License Agreement shall not be binding upon
the Parties until it has been signed herein below by or on behalf of each
Party.  No amendment or modification hereof shall be valid or binding
upon the Parties unless made in writing and signed as aforesaid.

       

      8.5           Severability.  If
any section of this License Agreement is found by a court of competent
jurisdiction to be invalid, illegal, or unenforceable in any respect for any
reason, the validity, legality, and enforceability of any such section in every
other respect and the remainder of this License Agreement shall continue in
effect so long as this License Agreement still expresses the intent of the
Parties.  If the intent of the Parties, however, cannot be preserved,
this License Agreement either shall be renegotiated or shall be
terminated.

       

      
        
           

        

        
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      8.6           Governing
Law.  This License Agreement shall be interpreted and
construed, and the legal relations between the Parties shall be determined, in
accordance with the laws of the State of Georgia, without regard to such
jurisdiction’s conflicts of laws rules.

       

      8.7           Arbitration.  Any
dispute, claim, or controversy arising out of or in connection with this License
Agreement, including, without limitation, any question regarding its existence,
validity, or termination, shall be finally determined by arbitration in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association (the “Rules”).  Unless
the Parties shall otherwise mutually agree, there shall be one (1)
arbitrator.  Any judgment or award rendered by the arbitrator shall be
final, binding, and nonappealable.  The place of arbitration shall be
Atlanta, Georgia.  Neither of the Parties shall contest the choice of
Atlanta, Georgia as the proper forum for such dispute, and notice in accordance
with Section 8.1 shall be sufficient for the arbitrator to conduct such
proceedings.  If the Parties are unable to agree on an arbitrator, the
arbitrator shall be selected in accordance with the Rules.  In
resolving any dispute, the Parties intend that the arbitrator apply the
substantive laws of the State of Georgia, without regard to the choice of law
principles thereof.  The Parties intend that the provisions to
arbitrate set forth herein be valid, enforceable, and
irrevocable.  The Parties agree to comply with any award made in any
such arbitration proceedings that has become final in accordance with the Rules
and agree to enforcement of, or entry of judgment upon such award, by any court
of competent jurisdiction.  Without limiting the provisions of the
Rules, unless otherwise agreed in writing by the Parties or permitted by this
License Agreement, the Parties shall keep confidential all matters relating to
the arbitration or the award, provided, such matters may be disclosed (a) to the
extent reasonably necessary in any proceeding brought to enforce the award or
for entry of a judgment upon the award and (b) to the extent otherwise required
by law.  Notwithstanding any provision of the Rules to the contrary,
the Party other than the prevailing Party in the arbitration shall be
responsible for all of the costs of the arbitration, including, without
limitation, legal fees and other costs associated with such arbitration incurred
by either Party.

       

      8.8           Compliance with Applicable
Laws.  Licensee agrees to comply with all governmental laws and
regulations applicable in connection with the Practice of the Licensed
Technology in the Field of Use.

       

      8.9           Headings.  The
headings of sections are inserted for convenience of reference only and are not
intended to be part of or to affect the meaning or interpretation of this
License Agreement.

       

      8.10           Counterparts.  This
License Agreement may be executed in two or more counterparts or by facsimile
signature, each of which shall be deemed an original and which together shall
constitute one instrument.

       

      8.11           Authority.  The
person(s) signing on behalf of Licensor and Licensee, respectively, hereby
warrant and represent that they have authority to execute this License Agreement
on behalf of the Party for whom they have signed.

       

      8.12           Representation by
Counsel.  Each Party acknowledges that it has been represented
by counsel in connection with the negotiation and drafting of this License
Agreement and that no rule of strict construction shall be applied to either of
them as the drafter of all or any part of this License Agreement.

       

      
        
           

        

        
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      8.13           Entire
Agreement.  This License Agreement constitutes the entire
agreement between the Parties with respect to the subject matter hereof,
supersedes all previous express or implied promises or understandings related to
the subject matter hereof, and may not be varied, amended, or supplemented
except by a writing of even or subsequent date executed by both Parties and
containing express reference to this License Agreement.

       

      8.14           No
Waiver.  The failure of either Party to enforce at any time any
of the provisions of this License Agreement, or any rights in respect thereto,
will in no way be considered a waiver of such provisions, rights, or elections
with respect to subsequent events or in any way to affect the validity and the
enforceability of this License Agreement.

       

      [SIGNATURES
ON NEXT PAGE]

      
        
           

        

        
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      IN
WITNESS WHEREOF, the Parties have affixed their signatures to this Technology
License Agreement as of the Effective Date.

       

      

       

      
        	
                Agreed
      to:

              	 
      	
                Agreed
      to:

              
	 
      	 
      	 
      
	
                SALUMEDICA,
      LLC

              	 
      	
                MIMEDX,
      INC.

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                By:
      /s/ Robert R.
      Singer

              	 
      	
                By:
      /s/ Matthew J.
      Miller

              
	
                Name:
      Robert R.
      Singer

              	 
      	
                Name:
      Matthew J.
      Miller

              
	
                Title:
      President

              	 
      	
                Title:
      Executive Vice
      President

              

      

      
        
           

        

        
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      Appendix
A

       

      Issued
Patents and Pending Patent Applications

      

       

      I.            
Patents Under License:

       

      U.S.
Patent No. 5,981,826, entitled “Poly(vinyl alcohol) cryogel” (owned by Georgia
Tech Research Corporation under exclusive license to SaluMedica,
LLC)

       

      European
patent No. EP0991402, issued in the following countries:

       

      Austria,
Belgium, Switzerland, , Denmark, Spain, Finland, France, United Kingdom, Greece,
Ireland, Italy, Luxembourg, Monaco, Netherlands, Portugal and
Sweden.

       

      German
Patent No. 69828050.4.

       

      Australian
Patent No. 728426.

       

      Japanese
Patent No. 3506718.

      

       

      II.           
Owned Patents:

       

      U.S.
Patent No. 6,231,605, entitled “Poly(vinyl alcohol) hydrogel”

       

      U.S.
Patent Application Publication No. 2003-0008396, entitled “Poly(vinyl alcohol)
hydrogel”

       

      U.S.
Patent Application Publication No. 2004-0143329, entitled “Poly(vinyl alcohol)
hydrogel”

       

      U.S.
Patent Application Publication No. 2005-0106255, entitled “Poly(vinyl alcohol)
hydrogel”

       

      U.S.
Patent Application Publication No. 2005-0071003, entitled “Poly(vinyl alcohol)
hydrogel”

       

      U.S.
Patent Application 11/626,405, entitled Methods Of Producing PVA Hydrogel
Implants and Related Devices

       

      U.S.
Patent Application 11/837,027, entitled Methods of Making Medical Implants of
Poly(Vinyl Alcohol) Hydrogel

       

    

     

    - 14 -

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