Document:

Exhibit 10.4

 

AZIYO BIOLOGICS, INC.

2020 EMPLOYEE STOCK PURCHASE PLAN

 

Article I.

PURPOSE

 

The purpose of this Plan is to assist Eligible
Employees of the Company and its Designated Subsidiaries in acquiring a stock ownership interest in the Company.

 

The Plan consists of
two components: (i) the Section 423 Component and (ii) the Non-Section 423 Component. The Section 423
Component is intended to qualify as an “employee stock purchase plan” under Section 423 of the Code and shall
be administered, interpreted and construed in a manner consistent with the requirements of Section 423 of the Code. The Non-Section 423
Component authorizes the grant of rights which need not qualify as rights granted pursuant to an “employee stock purchase
plan” under Section 423 of the Code. Rights granted under the Non-Section 423 Component shall be granted pursuant
to separate Offerings containing such sub-plans, appendices, rules or procedures as may be adopted by the Administrator and
designed to achieve tax, securities laws or other objectives for Eligible Employees and Designated Subsidiaries but shall not be
intended to qualify as an “employee stock purchase plan” under Section 423 of the Code. Except as otherwise determined
by the Administrator or provided herein, the Non-Section 423 Component will operate and be administered in the same manner
as the Section 423 Component. Offerings intended to be made under the Non-Section 423 Component will be designated as
such by the Administrator at or prior to the time of such Offering.

 

For purposes of this
Plan, the Administrator may designate separate Offerings under the Plan in which Eligible Employees will participate. The terms
of these Offerings need not be identical, even if the dates of the applicable Offering Period(s) in each such Offering are
identical, provided that the terms of participation are the same within each separate Offering under the Section 423 Component
(as determined under Section 423 of the Code). Solely by way of example and without limiting the foregoing, the Company could,
but shall not be required to, provide for simultaneous Offerings under the Section 423 Component and the Non-Section 423
Component of the Plan.

 

Article II.

DEFINITIONS AND CONSTRUCTION

 

Wherever the following terms are used in
the Plan they shall have the meanings specified below, unless the context clearly indicates otherwise.

 

2.1            “Administrator”
means the entity that conducts the general administration of the Plan as provided in Article XI.

 

2.2            “Agent”
means the brokerage firm, bank or other financial institution, entity or person(s), if any, engaged, retained, appointed or authorized
to act as the agent of the Company or an Employee with regard to the Plan.

 

2.3            “Applicable
Law” means the requirements relating to the administration of equity incentive plans under U.S. federal and state
securities, tax and other applicable laws, rules and regulations, the applicable rules of any stock exchange or quotation
system on which Shares are listed or quoted and the applicable laws and rules of any foreign country or other jurisdiction
where rights under this Plan are granted.

 

2.4            “Board”
means the Board of Directors of the Company.

 

     

     

    

 

2.5            “Code”
means the U.S. Internal Revenue Code of 1986, as amended, and the regulations issued thereunder.

 

2.6            “Common
Stock” means the Class A common stock of the Company and such other securities of the Company that may be substituted
therefore.

 

2.7            “Company”
means Aziyo Biologics, Inc., a Delaware corporation, or any successor.

 

2.8            “Compensation”
of an Eligible Employee means, unless otherwise determined by the Administrator, the gross base compensation received by such Eligible
Employee as compensation for services to the Company or any Designated Subsidiary.

 

2.9            “Designated
Subsidiary” means any Subsidiary designated by the Administrator in accordance with Section 11.2(b), such designation
to specify whether such participation is in the Section 423 Component or Non-Section 423 Component. A Designated Subsidiary
may participate in either the Section 423 Component or Non-Section 423 Component, but not both; provided that a Subsidiary
that, for U.S. tax purposes, is disregarded from the Company or any Subsidiary that participates in the Section 423 Component
shall automatically constitute a Designated Subsidiary that participates in the Section 423 Component.

 

2.10            “Effective
Date” means the date the Plan is adopted by the Board.

 

2.11            “Eligible
Employee” means:

 

(a)            an
Employee who does not, immediately after any rights under this Plan are granted, own (directly or through attribution) stock possessing
5% or more of the total combined voting power or value of all classes of Shares and other securities of the Company, a Parent or
a Subsidiary (as determined under Section 423(b)(3) of the Code). For purposes of the foregoing, the rules of Section 424(d) of
the Code with regard to the attribution of stock ownership shall apply in determining the stock ownership of an individual, and
stock that an Employee may purchase under outstanding options shall be treated as stock owned by the Employee.

 

(b)            Notwithstanding
the foregoing, the Administrator may provide in an Offering Document that an Employee shall not be eligible to participate in an
Offering Period under the Section 423 Component if: (i) such Employee is a highly compensated employee within the meaning
of Section 423(b)(4)(D) of the Code; (ii) such Employee has not met a service requirement designated by the Administrator
pursuant to Section 423(b)(4)(A) of the Code (which service requirement may not exceed two years); (iii) such Employee’s
customary employment is for twenty hours per week or less; (iv) such Employee’s customary employment is for less than
five months in any calendar year; and/or (v) such Employee is a citizen or resident of a foreign jurisdiction and the grant
of a right to purchase Shares under the Plan to such Employee would be prohibited under the laws of such foreign jurisdiction or
the grant of a right to purchase Shares under the Plan to such Employee in compliance with the laws of such foreign jurisdiction
would cause the Plan to violate the requirements of Section 423 of the Code, as determined by the Administrator in its sole
discretion; provided, further, that any exclusion in clauses (i), (ii), (iii), (iv) or (v) shall be applied
in an identical manner under each Offering Period to all Employees, in accordance with Treasury Regulation Section 1.423-2(e).

 

(c)            Further
notwithstanding the foregoing, with respect to the Non-Section 423 Component, the first sentence of Section 2.11(a) above
shall apply in determining who is an “Eligible Employee,” except (i) the Administrator may limit eligibility further
within the Company or a Designated Subsidiary so as to only designate some Employees of the Company or a Designated Subsidiary
as Eligible Employees, and (ii) to the extent the restrictions in the first sentence in this definition are not consistent
with applicable local laws, the applicable local laws shall control.

 

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2.12            “Employee”
means any individual who renders services to the Company or any Designated Subsidiary in the status of an employee, and, with respect
to the Section 423 Component, a person who is an employee within the meaning of Section 3401(c) of the Code. For
purposes of an individual’s participation in, or other rights under the Plan, all determinations by the Company shall be
final, binding and conclusive, notwithstanding that any court of law or governmental agency subsequently makes a contrary determination.
For purposes of the Plan, the employment relationship shall be treated as continuing intact while the individual is on sick leave
or other leave of absence approved by the Company or Designated Subsidiary and meeting the requirements of Treasury Regulation
Section 1.421-1(h)(2). Where the period of leave exceeds three (3) months and the individual’s right to reemployment
is not guaranteed either by statute or by contract, the employment relationship shall be deemed to have terminated on the first
day immediately following such three (3)-month period.

 

2.13            “Enrollment
Date” means the first Trading Day of each Offering Period.

 

2.14            “Fair
Market Value” means, as of any date, the value of a Share determined as follows: (i) if the Common Stock is
listed on any established stock exchange, its Fair Market Value will be the closing sales price for such Shares as quoted on such
exchange for such date, or if no sale occurred on such date, the last day preceding such date during which a sale occurred, as
reported in The Wall Street Journal or another source the Administrator deems reliable; or (ii) if the Common Stock is not
traded on a stock exchange but is quoted on a national market or other quotation system, the closing sales price on such date,
or if no sales occurred on such date, then on the last date preceding such date during which a sale occurred, as reported in The
Wall Street Journal or another source the Administrator deems reliable;

 

2.15            “Non-Section 423
Component” means those Offerings under the Plan, together with the sub-plans, appendices, rules or procedures,
if any, adopted by the Administrator as a part of this Plan, in each case, pursuant to which rights to purchase Shares during an
Offering Period may be granted to Eligible Employees that need not satisfy the requirements for rights to purchase Shares granted
pursuant to an “employee stock purchase plan” that are set forth under Section 423 of the Code.

 

2.16            “Offering”
means an offer under the Plan of a right to purchase Shares that may be exercised during an Offering Period as further described
in Article IV hereof. Unless otherwise specified by the Administrator, each Offering to the Eligible Employees of the Company
or a Designated Subsidiary shall be deemed a separate Offering, even if the dates and other terms of the applicable Offering Periods
of each such Offering are identical, and the provisions of the Plan will separately apply to each Offering. To the extent permitted
by Treas. Reg. § 1.423-2(a)(1), the terms of each separate Offering under the Section 423 Component need not be identical,
provided that the terms of the Section 423 Component and an Offering thereunder together satisfy Treas. Reg. § 1.423-2(a)(2) and
(a)(3).

 

2.17            “Offering
Document” has the meaning given to such term in Section 4.1.

 

2.18            “Offering
Period” has the meaning given to such term in Section 4.1.

 

2.19            “Parent”
means any corporation, other than the Company, in an unbroken chain of corporations ending with the Company if, at the time of
the determination, each of the corporations other than the Company owns stock possessing 50% or more of the total combined voting
power of all classes of stock in one of the other corporations in such chain.

 

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2.20            “Participant”
means any Eligible Employee who has executed a subscription agreement and been granted rights to purchase Shares pursuant to the
Plan.

 

2.21            “Payday”
means the regular and recurring established day for payment of Compensation to an Employee of the Company or any Designated Subsidiary.

 

2.22            “Plan”
means this 2020 Employee Stock Purchase Plan, including both the Section 423 Component and Non-Section 423 Component
and any other sub-plans or appendices hereto, as amended from time to time.

 

2.23            “Purchase
Date” means the last Trading Day of each Offering Period or such other date as determined by the Administrator and
set forth in the Offering Document.

 

2.24            “Purchase
Price” means the purchase price designated by the Administrator in the applicable Offering Document (which purchase
price, for purposes of the Section 423 Component, shall not be less than 85% of the Fair Market Value of a Share on the Enrollment
Date or on the Purchase Date, whichever is lower); provided, however, that, in the event no purchase price is designated
by the Administrator in the applicable Offering Document, the purchase price for the Offering Periods covered by such Offering
Document shall be 85% of the Fair Market Value of a Share on the Enrollment Date or on the Purchase Date, whichever is lower; provided,
further, that the Purchase Price may be adjusted by the Administrator pursuant to Article VIII and shall not be less
than the par value of a Share.

 

2.25            “Section 423
Component” means those Offerings under the Plan, together with the sub-plans, appendices, rules or procedures,
if any, adopted by the Administrator as a part of this Plan, in each case, pursuant to which rights to purchase Shares during an
Offering Period may be granted to Eligible Employees that are intended to satisfy the requirements for rights to purchase Shares
granted pursuant to an “employee stock purchase plan” that are set forth under Section 423 of the Code.

 

2.26            “Securities
Act” means the U.S. Securities Act of 1933, as amended.

 

2.27            “Share”
means a share of Common Stock.

 

2.28            “Subsidiary”
means any corporation, other than the Company, in an unbroken chain of corporations beginning with the Company if, at the time
of the determination, each of the corporations other than the last corporation in an unbroken chain owns stock possessing 50% or
more of the total combined voting power of all classes of stock in one of the other corporations in such chain; provided,
however, that a limited liability company or partnership may be treated as a Subsidiary to the extent either (a) such entity
is treated as a disregarded entity under Treasury Regulation Section 301.7701-3(a) by reason of the Company or any other
Subsidiary that is a corporation being the sole owner of such entity, or (b) such entity elects to be classified as a corporation
under Treasury Regulation Section 301.7701-3(a) and such entity would otherwise qualify as a Subsidiary. In addition,
with respect to the Non-Section 423 Component, Subsidiary shall include any corporate or non-corporate entity in which the
Company has a direct or indirect equity interest or significant business relationship.

 

2.29            “Trading
Day” means a day on which national stock exchanges in the United States are open for trading.

 

2.30            “Treas.
Reg.” means U.S. Department of the Treasury regulations.

 

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Article III.

SHARES SUBJECT TO THE PLAN

 

3.1            Number
of Shares. Subject to Article VIII, the aggregate number of Shares that may be issued pursuant to rights granted
under the Plan shall be 143,150 Shares. In addition to the foregoing, subject to Article VIII, on the first day of each
calendar year beginning on January 1, 2021 and ending on and including January 1, 2030, the number of Shares
available for issuance under the Plan shall be increased by that number of Shares equal to the lesser of (a) 1% of the
Shares outstanding on the final day of the immediately preceding calendar year and (b) such smaller number of Shares as
determined by the Board. If any right granted under the Plan shall for any reason terminate without having been exercised,
the Shares not purchased under such right shall again become available for issuance under the Plan. .

 

3.2            Shares
Distributed. Any Shares distributed pursuant to the Plan may consist, in whole or in part, of authorized and unissued
Shares, treasury shares or Shares purchased on the open market.

 

Article IV.

Offering Periods; Offering Documents; Purchase Dates

 

4.1            Offering
Periods. The Administrator may from time to time grant or provide for the grant of rights to purchase Shares under the
Plan to Eligible Employees during one or more periods (each, an “Offering Period”) selected by the
Administrator. The terms and conditions applicable to each Offering Period shall be set forth in an “Offering
Document” adopted by the Administrator, which Offering Document shall be in such form and shall contain such
terms and conditions as the Administrator shall deem appropriate and shall be incorporated by reference into and made part of
the Plan and shall be attached hereto as part of the Plan. The provisions of separate Offerings or Offering Periods under the
Plan need not be identical.

 

4.2            Offering
Documents. Each Offering Document with respect to an Offering Period shall specify (through incorporation of the
provisions of this Plan by reference or otherwise):

 

(a)            the
length of the Offering Period, which period shall not exceed twenty-seven months;

 

(b)            the
maximum number of Shares that may be purchased by any Eligible Employee during such Offering Period, which, in the absence of a
contrary designation by the Administrator, shall be the number of Shares equal to $25,000 divided by the Fair Market Value of a
Share on the Enrollment Date, which price shall be adjusted if the price per Share is adjusted pursuant to Article VIII; and

 

(c)            such
other provisions as the Administrator determines are appropriate, subject to the Plan.

 

Article V.

ELIGIBILITY AND PARTICIPATION

 

5.1            Eligibility.
Any Eligible Employee who shall be employed by the Company or a Designated Subsidiary on a given Enrollment Date for an
Offering Period shall be eligible to participate in the Plan during such Offering Period, subject to the requirements of this
Article V and, for the Section 423 Component, the limitations imposed by Section 423(b) of the Code.

 

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5.2            Enrollment
in Plan.

 

(a)            Except
as otherwise set forth in an Offering Document or determined by the Administrator, an Eligible Employee may become a Participant
in the Plan for an Offering Period by delivering a subscription agreement to the Company by such time prior to the Enrollment Date
for such Offering Period (or such other date specified in the Offering Document) designated by the Administrator and in such form
as the Company provides.

 

(b)            Each
subscription agreement shall designate a whole percentage of such Eligible Employee’s Compensation to be withheld by the
Company or the Designated Subsidiary employing such Eligible Employee on each Payday during the Offering Period as payroll deductions
under the Plan. The percentage of Compensation designated by an Eligible Employee may not be less than 1% and may not be more than
the maximum percentage specified by the Administrator in the applicable Offering Document (which percentage shall be 15% in the
absence of any such designation) as payroll deductions. The payroll deductions made for each Participant shall be credited to an
account for such Participant under the Plan and shall be deposited with the general funds of the Company.

 

(c)            A
Participant may increase or decrease the percentage of Compensation designated in his or her subscription agreement, subject to
the limits of this Section 5.2, or may suspend his or her payroll deductions, at any time during an Offering Period; provided,
however, that the Administrator may limit the number of changes a Participant may make to his or her payroll deduction elections
during each Offering Period in the applicable Offering Document (and in the absence of any specific designation by the Administrator,
a Participant shall be allowed to decrease (but not increase) his or her payroll deduction elections one time during each Offering
Period). Any such change or suspension of payroll deductions shall be effective with the first full payroll period following ten
business days after the Company’s receipt of the new subscription agreement (or such shorter or longer period as may be specified
by the Administrator in the applicable Offering Document). In the event a Participant suspends his or her payroll deductions, such
Participant’s cumulative payroll deductions prior to the suspension shall remain in his or her account and shall be applied
to the purchase of Shares on the next occurring Purchase Date and shall not be paid to such Participant unless he or she withdraws
from participation in the Plan pursuant to Article VII.

 

(d)            Except
as otherwise set forth in an Offering Document or determined by the Administrator, a Participant may participate in the Plan only
by means of payroll deduction and may not make contributions by lump sum payment for any Offering Period.

 

5.3            Payroll
Deductions. Except as otherwise provided in the applicable Offering Document, payroll deductions for a Participant shall
commence on the first Payday following the Enrollment Date and shall end on the last Payday in the Offering Period to which
the Participant’s authorization is applicable, unless sooner terminated by the Participant as provided in
Article VII or suspended by the Participant or the Administrator as provided in Section 5.2 and Section 5.6,
respectively. Notwithstanding any other provisions of the Plan to the contrary, in non-U.S. jurisdictions where participation
in the Plan through payroll deductions is prohibited, the Administrator may provide that an Eligible Employee may elect to
participate through contributions to the Participant’s account under the Plan in a form acceptable to the Administrator
in lieu of or in addition to payroll deductions; provided, however, that, for any Offering under the Section 423
Component, the Administrator shall take into consideration any limitations under Section 423 of the Code when applying
an alternative method of contribution.

 

5.4            Effect
of Enrollment. A Participant’s completion of a subscription agreement will enroll such Participant in the Plan for
each subsequent Offering Period on the terms contained therein until the Participant either submits a new subscription
agreement, withdraws from participation under the Plan as provided in Article VII or otherwise becomes ineligible to
participate in the Plan.

 

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5.5            Limitation
on Purchase of Shares. An Eligible Employee may be granted rights under the Section 423 Component only if such rights,
together with any other rights granted to such Eligible Employee under “employee stock purchase plans” of the Company,
any Parent or any Subsidiary, as specified by Section 423(b)(8) of the Code, do not permit such employee’s rights
to purchase stock of the Company or any Parent or Subsidiary to accrue at a rate that exceeds $25,000 of the Fair Market Value
of the Shares (determined as of the first day of the Offering Period during which such rights are granted) for each calendar year
in which such rights are outstanding at any time. This limitation shall be applied in accordance with Section 423(b)(8) of
the Code.

 

5.6            Suspension
of Payroll Deductions. Notwithstanding the foregoing, to the extent necessary to comply with
Section 423(b)(8) of the Code and Section 5.5 (with respect to the Section 423 Component) or the other
limitations set forth in this Plan, a Participant’s payroll deductions may be suspended by the Administrator at any
time during an Offering Period. The balance of the amount credited to the account of each Participant that has not been
applied to the purchase of Shares by reason of Section 423(b)(8) of the Code, Section 5.5 or the other
limitations set forth in this Plan shall be paid to such Participant in one lump sum in cash as soon as reasonably
practicable after the Purchase Date.

 

5.7            Foreign
Employees. In order to facilitate participation in the Plan, the Administrator may provide for such special terms
applicable to Participants who are citizens or residents of a foreign jurisdiction, or who are employed by a Designated
Subsidiary outside of the United States, as the Administrator may consider necessary or appropriate to accommodate
differences in local law, tax policy or custom. Except as permitted by Section 423 of the Code, with respect to the
Section 423 Component, such special terms may not be more favorable than the terms of rights granted under the
Section 423 Component to Eligible Employees who are residents of the United States. Such special terms may be set forth
in an addendum to the Plan in the form of an appendix or sub-plan (which appendix or sub-plan may be designed to govern
Offerings under the Section 423 Component or the Non-Section 423 Component, as determined by the Administrator). To
the extent that the terms and conditions set forth in an appendix or sub-plan conflict with any provisions of the Plan, the
provisions of the appendix or sub-plan shall govern. The adoption of any such appendix or sub-plan shall be pursuant to
Section 11.2(f). Without limiting the foregoing, the Administrator is specifically authorized to adopt rules and
procedures, with respect to Participants who are foreign nationals or employed in non-U.S. jurisdictions, regarding the
exclusion of particular Subsidiaries from participation in the Plan, eligibility to participate, the definition of
Compensation, handling of payroll deductions or other contributions by Participants, payment of interest, conversion of local
currency, data privacy security, payroll tax, withholding procedures, establishment of bank or trust accounts to hold payroll
deductions or contributions.

 

5.8            Leave
of Absence. During leaves of absence approved by the Company meeting the requirements of Treasury Regulation
Section 1.421-1(h)(2) under the Code, a Participant may continue participation in the Plan by making cash payments
to the Company on his or her normal Payday equal to the Participant’s authorized payroll deduction.

 

Article VI.

grant and Exercise of rights

 

6.1            Grant
of Rights. On the Enrollment Date of each Offering Period, each Eligible Employee participating in such Offering Period
shall be granted a right to purchase the maximum number of Shares specified under Section 4.2, subject to the limits in
Section 5.5, and shall have the right to buy, on each Purchase Date during such Offering Period (at the applicable
Purchase Price), such number of whole Shares as is determined by dividing (a) such Participant’s payroll
deductions accumulated prior to such Purchase Date and retained in the Participant’s account as of the Purchase Date,
by (b) the applicable Purchase Price (rounded down to the nearest Share). The right shall expire on the last day of the
Offering Period.

 

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6.2            Exercise
of Rights. On each Purchase Date, each Participant’s accumulated payroll deductions and any other additional
payments specifically provided for in the applicable Offering Document will be applied to the purchase of whole Shares, up to
the maximum number of Shares permitted pursuant to the terms of the Plan and the applicable Offering Document, at the
Purchase Price. No fractional Shares shall be issued upon the exercise of rights granted under the Plan, unless the Offering
Document specifically provides otherwise. Any cash in lieu of fractional Shares remaining after the purchase of whole Shares
upon exercise of a purchase right will be credited to a Participant’s account and carried forward and applied toward
the purchase of whole Shares for the next following Offering Period. Shares issued pursuant to the Plan may be evidenced in
such manner as the Administrator may determine and may be issued in certificated form or issued pursuant to book-entry
procedures.

 

6.3            Pro
Rata Allocation of Shares. If the Administrator determines that, on a given Purchase Date, the number of Shares with
respect to which rights are to be exercised may exceed (a) the number of Shares that were available for issuance under
the Plan on the Enrollment Date of the applicable Offering Period, or (b) the number of Shares available for issuance
under the Plan on such Purchase Date, the Administrator may in its sole discretion provide that the Company shall make a pro
rata allocation of the Shares available for purchase on such Enrollment Date or Purchase Date, as applicable, in as uniform a
manner as shall be practicable and as it shall determine in its sole discretion to be equitable among all Participants for
whom rights to purchase Shares are to be exercised pursuant to this Article VI on such Purchase Date, and shall either
(i) continue all Offering Periods then in effect, or (ii) terminate any or all Offering Periods then in effect
pursuant to Article IX. The Company may make pro rata allocation of the Shares available on the Enrollment Date of any
applicable Offering Period pursuant to the preceding sentence, notwithstanding any authorization of additional Shares for
issuance under the Plan by the Company’s stockholders subsequent to such Enrollment Date. The balance of the amount
credited to the account of each Participant that has not been applied to the purchase of Shares shall be paid to such
Participant in one lump sum in cash as soon as reasonably practicable after the Purchase Date or such earlier date as
determined by the Administrator.

 

6.4            Withholding.
At the time a Participant’s rights under the Plan are exercised, in whole or in part, or at the time some or all of the
Shares issued under the Plan is disposed of, the Participant must make adequate provision for the Company’s federal,
state, or other tax withholding obligations, if any, that arise upon the exercise of the right or the disposition of the
Shares. At any time, the Company may, but shall not be obligated to, withhold from the Participant’s compensation or
Shares received pursuant to the Plan the amount necessary for the Company to meet applicable withholding obligations,
including any withholding required to make available to the Company any tax deductions or benefits attributable to sale or
early disposition of Shares by the Participant.

 

6.5            Conditions
to Issuance of Shares. The Company shall not be required to issue or deliver any certificate or certificates for, or
make any book entries evidencing, Shares purchased upon the exercise of rights under the Plan prior to fulfillment of all of the
following conditions: (a) the admission of such Shares to listing on all stock exchanges, if any, on which the Shares are
then listed; (b) the completion of any registration or other qualification of such Shares under any state or federal law
or under the rulings or regulations of the Securities and Exchange Commission or any other governmental regulatory body, that
the Administrator shall, in its absolute discretion, deem necessary or advisable; (c) the obtaining of any approval or other
clearance from any state or federal governmental agency that the Administrator shall, in its absolute discretion, determine to
be necessary or advisable; (d) the payment to the Company of all amounts that it is required to withhold under federal, state
or local law upon exercise of the rights, if any; and (e) the lapse of such reasonable period of time following the exercise
of the rights as the Administrator may from time to time establish for reasons of administrative convenience.

 

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Article VII.

WITHDRAWAL; CESSATION OF ELIGIBILITY

 

7.1            Withdrawal.
A Participant may withdraw all but not less than all of the payroll deductions credited to his or her account and not yet
used to exercise his or her rights under the Plan at any time by giving written notice to the Company in a form acceptable to
the Company no later than one week prior to the end of the Offering Period. All of the Participant’s payroll deductions
credited to his or her account during an Offering Period shall be paid to such Participant as soon as reasonably practicable
after receipt of notice of withdrawal and such Participant’s rights for the Offering Period shall be automatically
terminated, and no further payroll deductions for the purchase of Shares shall be made for such Offering Period. If a
Participant withdraws from an Offering Period, payroll deductions shall not resume at the beginning of the next Offering
Period unless the Participant timely delivers to the Company a new subscription agreement.

 

7.2            Future
Participation. A Participant’s withdrawal from an Offering Period shall not have any effect upon his or her
eligibility to participate in any similar plan that may hereafter be adopted by the Company or a Designated Subsidiary or in
subsequent Offering Periods that commence after the termination of the Offering Period from which the Participant
withdraws.

 

7.3            Cessation
of Eligibility. Upon a Participant’s ceasing to be an Eligible Employee for any reason, he or she shall be deemed
to have elected to withdraw from the Plan pursuant to this Article VII and the payroll deductions credited to such
Participant’s account during the Offering Period shall be paid to such Participant or, in the case of his or her death,
to the person or persons entitled thereto under Section 12.4, as soon as reasonably practicable, and such
Participant’s rights for the Offering Period shall be automatically terminated. If a Participant transfers employment
from the Company or any Designated Subsidiary participating in the Section 423 Component to any Designated Subsidiary
participating in the Non-Section 423 Component, such transfer shall not be treated as a termination of employment, but
the Participant shall immediately cease to participate in the Section 423 Component; however, any contributions made for
the Offering Period in which such transfer occurs shall be transferred to the Non-Section 423 Component, and such
Participant shall immediately join the then-current Offering under the Non-Section 423 Component upon the same terms and
conditions in effect for the Participant’s participation in the Section 423 Component, except for such
modifications otherwise applicable for Participants in such Offering. A Participant who transfers employment from any
Designated Subsidiary participating in the Non-Section 423 Component to the Company or any Designated Subsidiary
participating in the Section 423 Component shall not be treated as terminating the Participant’s employment and
shall remain a Participant in the Non-Section 423 Component until the earlier of (i) the end of the current
Offering Period under the Non-Section 423 Component or (ii) the Enrollment Date of the first Offering Period in
which the Participant is eligible to participate following such transfer. Notwithstanding the foregoing, the Administrator
may establish different rules to govern transfers of employment between entities participating in the Section 423
Component and the Non-Section 423 Component, consistent with the applicable requirements of Section 423 of the
Code.

 

Article VIII.

Adjustments upon Changes in SHARES

 

8.1            Changes
in Capitalization. Subject to Section 8.3, in the event that the Administrator determines that any dividend or other
distribution (whether in the form of cash, Shares, other securities, or other property), change in control, reorganization,
merger, amalgamation, consolidation, combination, repurchase, redemption, recapitalization, liquidation, dissolution, or
sale, transfer, exchange or other disposition of all or substantially all of the assets of the Company, or sale or exchange
of Shares or other securities of the Company, issuance of warrants or other rights to purchase Shares or other securities of
the Company, or other similar corporate transaction or event, as determined by the Administrator, affects the Shares such
that an adjustment is determined by the Administrator to be appropriate in order to prevent dilution or enlargement of the
benefits or potential benefits intended by the Company to be made available under the Plan or with respect to any outstanding
purchase rights under the Plan, the Administrator shall make equitable adjustments, if any, to reflect such change with
respect to (a) the aggregate number and type of Shares (or other securities or property) that may be issued under the
Plan (including, but not limited to, adjustments of the limitations in Section 3.1 and the limitations established in
each Offering Document pursuant to Section 4.2 on the maximum number of Shares that may be purchased); (b) the
class(es) and number of Shares and price per Share subject to outstanding rights; and (c) the Purchase Price with
respect to any outstanding rights.

 

    	 	9	 

     

    

 

8.2            Other
Adjustments. Subject to Section 8.3, in the event of any transaction or event described in Section 8.1 or any
unusual or nonrecurring transactions or events affecting the Company, any affiliate of the Company, or the financial
statements of the Company or any affiliate, or of changes in Applicable Law or accounting principles, the Administrator, in
its discretion, and on such terms and conditions as it deems appropriate, is hereby authorized to take any one or more of the
following actions whenever the Administrator determines that such action is appropriate in order to prevent the dilution or
enlargement of the benefits or potential benefits intended to be made available under the Plan or with respect to any right
under the Plan, to facilitate such transactions or events or to give effect to such changes in laws, regulations or
principles:

 

(a)            To
provide for either (i) termination of any outstanding right in exchange for an amount of cash, if any, equal to the amount
that would have been obtained upon the exercise of such right had such right been currently exercisable or (ii) the replacement
of such outstanding right with other rights or property selected by the Administrator in its sole discretion;

 

(b)            To
provide that the outstanding rights under the Plan shall be assumed by the successor or survivor corporation, or a parent or subsidiary
thereof, or shall be substituted for by similar rights covering the stock of the successor or survivor corporation, or a parent
or subsidiary thereof, with appropriate adjustments as to the number and kind of shares and prices;

 

(c)            To
make adjustments in the number and type of Shares (or other securities or property) subject to outstanding rights under the Plan
and/or in the terms and conditions of outstanding rights and rights that may be granted in the future;

 

(d)            To
provide that Participants’ accumulated payroll deductions may be used to purchase Shares prior to the next occurring Purchase
Date on such date as the Administrator determines in its sole discretion and the Participants’ rights under the ongoing Offering
Period(s) shall be terminated; and

 

(e)            To
provide that all outstanding rights shall terminate without being exercised.

 

8.3            No
Adjustment Under Certain Circumstances. Unless determined otherwise by the Administrator, no adjustment or action
described in this Article VIII or in any other provision of the Plan shall be authorized to the extent that such
adjustment or action would cause the Section 423 Component of the Plan to fail to satisfy the requirements of
Section 423 of the Code.

 

8.4            No
Other Rights. Except as expressly provided in the Plan, no Participant shall have any rights by reason of any subdivision
or consolidation of shares of stock of any class, the payment of any dividend, any increase or decrease in the number of
shares of stock of any class or any dissolution, liquidation, merger, or consolidation of the Company or any other
corporation. Except as expressly provided in the Plan or pursuant to action of the Administrator under the Plan, no issuance
by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect,
and no adjustment by reason thereof shall be made with respect to, the number of Shares subject to outstanding rights under
the Plan or the Purchase Price with respect to any outstanding rights.

 

    	 	10	 

     

    

 

Article IX.

Amendment, modification and termination

 

9.1            Amendment,
Modification and Termination. The Administrator may amend, suspend or terminate the Plan at any time and from time to
time; provided, however, that approval of the Company’s stockholders shall be required to amend
the Plan to: (a) increase the aggregate number, or change the type, of shares that may be sold pursuant to rights under
the Plan under Section 3.1 (other than an adjustment as provided by Article VIII) or (b) change the
corporations or classes of corporations whose employees may be granted rights under the Plan.

 

9.2            Certain
Changes to Plan. Without stockholder consent and without regard to whether any Participant rights may be considered to
have been adversely affected (and, with respect to the Section 423 Component of the Plan, after taking into account
Section 423 of the Code), the Administrator shall be entitled to change the Offering Periods, add or revise Offering
Period share limits, limit the frequency and/or number of changes in the amount withheld from Compensation during an Offering
Period, establish the exchange ratio applicable to amounts withheld in a currency other than U.S. dollars, permit payroll
withholding in excess of the amount designated by a Participant in order to adjust for delays or mistakes in the
Company’s processing of withholding elections, establish reasonable waiting and adjustment periods and/or accounting
and crediting procedures to ensure that amounts applied toward the purchase of Shares for each Participant properly
correspond with amounts withheld from the Participant’s Compensation, and establish such other limitations or
procedures as the Administrator determines in its sole discretion to be advisable that are consistent with the Plan.

 

9.3            Actions
In the Event of Unfavorable Financial Accounting Consequences. In the event the Administrator determines that the ongoing
operation of the Plan may result in unfavorable financial accounting consequences, the Administrator may, in its discretion
and, to the extent necessary or desirable, modify or amend the Plan to reduce or eliminate such accounting consequence
including, but not limited to:

 

(a)            altering
the Purchase Price for any Offering Period including an Offering Period underway at the time of the change in Purchase Price;

 

(b)            shortening
any Offering Period so that the Offering Period ends on a new Purchase Date, including an Offering Period underway at the time
of the Administrator action; and

 

(c)            allocating
Shares.

 

Such modifications or amendments shall not
require stockholder approval or the consent of any Participant.

 

9.4            Payments
Upon Termination of Plan. Upon termination of the Plan, the balance in each Participant’s Plan account shall be
refunded as soon as practicable after such termination, without any interest thereon, or the Offering Period may be shortened
so that the purchase of Shares occurs prior to the termination of the Plan.

 

    	 	11	 

     

    

 

Article X.

TERM OF PLAN

 

The Plan shall become effective on the Effective
Date. The effectiveness of the Plan shall be subject to approval of the Plan by the Company’s stockholders within twelve
months following the date the Plan is first approved by the Board. No right may be granted under the Plan prior to such stockholder
approval. No rights may be granted under the Plan during any period of suspension of the Plan or after termination of the Plan.

 

Article XI.

ADMINISTRATION

 

11.1            Administrator.
Unless otherwise determined by the Board, the Administrator of the Plan shall be the Compensation Committee of the Board (or
another committee or a subcommittee of the Board to which the Board delegates administration of the Plan). The Board may at
any time vest in the Board any authority or duties for administration of the Plan. The Administrator may delegate
administrative tasks under the Plan to the services of an Agent or Employees to assist in the administration of the Plan,
including establishing and maintaining an individual securities account under the Plan for each Participant.

 

11.2            Authority
of Administrator. The Administrator shall have the power, subject to, and within the limitations of, the express
provisions of the Plan:

 

(a)            To
determine when and how rights to purchase Shares shall be granted and the provisions of each offering of such rights (which need
not be identical).

 

(b)            To
designate from time to time which Subsidiaries of the Company shall be Designated Subsidiaries, which designation may be made without
the approval of the stockholders of the Company.

 

(c)            To
impose a mandatory holding period pursuant to which Employees may not dispose of or transfer Shares purchased under the Plan for
a period of time determined by the Administrator in its discretion.

 

(d)            To
construe and interpret the Plan and rights granted under it, and to establish, amend and revoke rules and regulations for
its administration. The Administrator, in the exercise of this power, may correct any defect, omission or inconsistency in the
Plan, in a manner and to the extent it shall deem necessary or expedient to make the Plan fully effective.

 

(e)            To
amend, suspend or terminate the Plan as provided in Article IX.

 

(f)            Generally,
to exercise such powers and to perform such acts as the Administrator deems necessary or expedient to promote the best interests
of the Company and its Subsidiaries and to carry out the intent that the Plan be treated as an “employee stock purchase plan”
within the meaning of Section 423 of the Code for the Section 423 Component.

 

(g)            The
Administrator may adopt sub-plans applicable to particular Designated Subsidiaries or locations, which sub-plans may be designed
to be outside the scope of Section 423 of the Code. The rules of such sub-plans may take precedence over other provisions
of this Plan, with the exception of Section 3.1 hereof, but unless otherwise superseded by the terms of such sub-plan, the
provisions of this Plan shall govern the operation of such sub-plan.

 

    	 	12	 

     

    

 

11.3            Decisions
Binding. The Administrator’s interpretation of the Plan, any rights granted pursuant to the Plan, any subscription
agreement and all decisions and determinations by the Administrator with respect to the Plan are final, binding, and
conclusive on all parties.

 

Article XII.

MISCELLANEOUS

 

12.1            Restriction
upon Assignment. A right granted under the Plan shall not be transferable other
than by will or the applicable laws of descent and distribution, and is exercisable during the Participant’s lifetime only
by the Participant. Except as provided in Section 12.4 hereof, a right under the Plan may not be exercised to any extent except
by the Participant. The Company shall not recognize and shall be under no duty to recognize any assignment or alienation of the
Participant’s interest in the Plan, the Participant’s rights under the Plan or any rights thereunder.

 

12.2            Rights
as a Stockholder. With respect to Shares subject to a right granted under the Plan, a Participant shall not be deemed to
be a stockholder of the Company, and the Participant shall not have any of the rights or privileges of a stockholder, until
such Shares have been issued to the Participant or his or her nominee following exercise of the Participant’s rights
under the Plan. No adjustments shall be made for dividends (ordinary or extraordinary, whether in cash securities, or other
property) or distribution or other rights for which the record date occurs prior to the date of such issuance, except as
otherwise expressly provided herein or as determined by the Administrator.

 

12.3            Interest.
No interest shall accrue on the payroll deductions or contributions of a Participant under the Plan.

 

12.4            Designation
of Beneficiary.

 

(a)            A
Participant may, in the manner determined by the Administrator, file a written designation of a beneficiary who is to receive any
Shares and/or cash, if any, from the Participant’s account under the Plan in the event of such Participant’s death
subsequent to a Purchase Date on which the Participant’s rights are exercised but prior to delivery to such Participant of
such Shares and cash. In addition, a Participant may file a written designation of a beneficiary who is to receive any cash from
the Participant’s account under the Plan in the event of such Participant’s death prior to exercise of the Participant’s
rights under the Plan. If the Participant is married and resides in a community property state, a designation of a person other
than the Participant’s spouse as his or her beneficiary shall not be effective without the prior written consent of the Participant’s
spouse.

 

(b)            Such
designation of beneficiary may be changed by the Participant at any time by written notice to the Company. In the event of the
death of a Participant and in the absence of a beneficiary validly designated under the Plan who is living at the time of such
Participant’s death, the Company shall deliver such Shares and/or cash to the executor or administrator of the estate of
the Participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in
its discretion, may deliver such Shares and/or cash to the spouse or to any one or more dependents or relatives of the Participant,
or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate.

 

12.5            Notices.
All notices or other communications by a Participant to the Company under or in connection with the Plan shall be deemed to
have been duly given when received in the form specified by the Company at the location, or by the person, designated by the
Company for the receipt thereof.

 

    	 	13	 

     

    

 

12.6            Equal
Rights and Privileges. Subject to Section 5.7, all Eligible Employees will have equal rights and privileges under
the Section 423 Component so that the Section 423 Component of this Plan qualifies as an “employee stock
purchase plan” within the meaning of Section 423 of the Code. Subject to Section 5.7, any provision of the
Section 423 Component that is inconsistent with Section 423 of the Code will, without further act or amendment by
the Company, the Board or the Administrator, be reformed to comply with the equal rights and privileges requirement of
Section 423 of the Code. Eligible Employees participating in the Non-Section 423 Component need not have the same
rights and privileges as other Eligible Employees participating in the Non-Section 423 Component or as Eligible
Employees participating in the Section 423 Component.

 

12.7            Use
of Funds. All payroll deductions received or held by the Company under the Plan may be used by the Company for any
corporate purpose, and the Company shall not be obligated to segregate such payroll deductions.

 

12.8            No
Employment Rights. Nothing in the Plan shall be construed to give any person (including any Eligible Employee or
Participant) the right to remain in the employ of the Company or any Parent or Subsidiary or affect the right of the Company
or any Parent or Subsidiary to terminate the employment of any person (including any Eligible Employee or Participant) at any
time, with or without cause.

 

12.9            Notice
of Disposition of Shares. Each Participant shall if requested by the Company give prompt notice to the Company of any
disposition or other transfer of any Shares purchased upon exercise of a right under the Section 423 Component of the
Plan if such disposition or transfer is made: (a) within two years from the Enrollment Date of the Offering Period in
which the Shares were purchased or (b) within one year after the Purchase Date on which such Shares were purchased. Such
notice shall specify the date of such disposition or other transfer and the amount realized, in cash, other property,
assumption of indebtedness or other consideration, by the Participant in such disposition or other transfer.

 

12.10            Governing
Law. The Plan and any agreements hereunder shall be administered, interpreted and enforced in accordance with the laws of
the State of Delaware, disregarding any state’s choice of law principles requiring the application of a
jurisdiction’s laws other than the State of Delaware.

 

12.11            Electronic
Forms. To the extent permitted by Applicable Law and in the discretion of the Administrator, an Eligible Employee may
submit any form or notice as set forth herein by means of an electronic form approved by the Administrator. Before the
commencement of an Offering Period, the Administrator shall prescribe the time limits within which any such electronic form
shall be submitted to the Administrator with respect to such Offering Period in order to be a valid election.

 

* * * * *

 

    	 	14Exhibit 10.6

Execution
Version

 

EMPLOYMENT
AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
(this “Agreement”), entered into as of September 30, 2020, is made by and between Aziyo Biologics, Inc.
(the “Company”) and Ronald Lloyd (the “Executive”) (collectively referred to
herein as the “Parties”).

 

WHEREAS, the Executive
is currently employed by the Company as its President and Chief Executive Officer pursuant to the terms of that certain Employment
Agreement by and between the Parties, dated as of June 1, 2018 (the “Prior Agreement”);

 

WHEREAS, the Company
is contemplating an initial public offering of its Class A common stock pursuant to an effective registration statement filed
under the Securities Act of 1933, as amended (the “IPO”);

 

WHEREAS, in connection
with the IPO, the Company desires to assure itself of the continued services of the Executive by engaging the Executive to perform
services under the terms hereof;

 

WHEREAS, the Executive
desires to provide services to the Company on the terms herein provided; and

 

WHEREAS, the Parties
desire to have this Agreement become effective, and supersede the Prior Agreement, as the date of the consummation of the IPO (the
 “Effective Date”).

 

NOW, THEREFORE, IT
IS HEREBY AGREED AS FOLLOWS:

 

1.             Employment
Period. Subject to the provisions for earlier termination hereinafter provided, the initial term of the Executive’s employment
hereunder shall be for a term (the “Initial Employment Period”) commencing on the Effective Date and
ending on the second anniversary of the Effective Date. The Initial Employment Period shall automatically be extended for successive
one-year periods (each, an “Extension Employment Period” and, together with the Initial Employment Period,
the “Employment Period”), unless either Party gives written notice of non-extension to the other no later
than ninety (90) days prior to the expiration of the then-applicable Employment Period, in which case Executive’s employment
will terminate at the end of the then-applicable Employment Period, subject to earlier termination as provided in Section 4
below.

 

2.             Terms
of Employment.

 

(a)           Position
and Duties.

 

(i)            Role
and Responsibilities. During the Employment Period, the Executive shall serve as President and Chief Executive Officer of the
Company, and shall perform such employment duties as are usual and customary for such positions. The Executive shall report directly
to the Board of Directors of the Company (the “Board”) (or his or her designee). At the Company’s
request, the Executive shall serve the Company and/or its subsidiaries and affiliates in other capacities in addition to the foregoing,
consistent with the Executive’s position as President and Chief Executive Officer of the Company. In the event that the Executive,
during the Employment Period, serves in any one or more of such additional capacities, the Executive’s compensation shall
not be increased beyond that specified in Section 2(b) hereof. In addition, in the event the Executive’s service
in one or more of such additional capacities is terminated, the Executive’s compensation, as specified in Section 2(b) hereof,
shall not be diminished or reduced in any manner as a result of such termination provided that the Executive otherwise remains
employed under the terms of this Agreement.

 

    

     

    

 

(ii)           Exclusivity.
During the Employment Period, and excluding any periods of vacation and sick leave to which the Executive may be entitled, the
Executive agrees to devote his or her full business time and attention to the business and affairs of the Company. Notwithstanding
the foregoing, during the Employment Period, it shall not be a violation of this Agreement for the Executive to: (A) serve
on boards, committees or similar bodies of charitable or nonprofit organizations or other companies, (B) fulfill limited teaching,
speaking and writing engagements, and (C) manage his or her personal investments, in each case, so long as such activities
do not individually or in the aggregate materially interfere or conflict with the performance of the Executive’s duties and
responsibilities under this Agreement; provided, that with respect to the activities in subclauses (A) and/or (B),
the Executive receives prior written approval from the Board. Exhibit A of this Agreement sets forth the board of directors
or advisory boards on which the Executive currently serves.

 

(iii)          Principal
Location. During the Employment Period, the Executive shall perform the services required by this Agreement at the Company’s
principal offices located in Silver Spring, Maryland or such other location mutually agreed upon by the Company and the Executive
(the “Principal Location”), except for travel to other locations as may be necessary to fulfill the Executive’s
duties and responsibilities hereunder.

 

(b)           Compensation,
Benefits, Etc.

 

(i)            Base
Salary. During the Employment Period, the Executive shall receive a base salary (the “Base Salary”)
of $537,800 per annum. The Base Salary shall be reviewed annually by the Compensation Committee (the “Compensation
Committee”) of the Board and may be increased from time to time by the Compensation Committee in its sole discretion.
The Base Salary shall be paid in accordance with the Company’s normal payroll practices for executive salaries generally,
but no less often than monthly. The Base Salary may be increased in the Compensation Committee’s discretion, but not reduced,
and the term “Base Salary” as utilized in this Agreement shall refer to the Base Salary as so increased.

 

(ii)           Annual
Cash Bonus. In addition to the Base Salary, the Executive shall be eligible to earn, for each fiscal year of the Company ending
during the Employment Period, a discretionary cash performance bonus (an “Annual Bonus”) under the Company’s
bonus plan or program applicable to senior executives. The Executive’s target Annual Bonus shall be set at 80% of the Base
Salary actually paid for such year (the “Target Bonus”). The actual amount of any Annual Bonus shall
be determined by reference to the attainment of Company performance metrics and/or individual performance objectives, in each case,
as determined by the Compensation Committee, and may be greater or less than the Target Bonus (or zero). Subject to Section 4(a)(i) hereof,
payment of any Annual Bonus(es), to the extent any Annual Bonus(es) become payable, will be contingent upon the Executive’s
continued employment through the applicable payment date. The Company will pay any such bonus that has been duly earned and awarded
by the Board as soon as administratively possible following its approval by the Board and, in any event, no later than the later
of (i) the fifteenth day of the third month after the end of the Company’s fiscal year in which such bonus is earned
or (ii) March 15 following the calendar year in which such bonus is earned.

 

    2 

     

    

 

(iii)          Benefits.
During the Employment Period, the Executive (and the Executive’s spouse and/or eligible dependents to the extent provided
in the applicable plans and programs) shall be eligible to participate in and be covered under the health and welfare benefit plans
and programs maintained by the Company for the benefit of its employees from time to time, pursuant to the terms of such plans
and programs including any medical and dental insurance plans and programs. During the Employment Period, the Company shall provide
the Executive and the Executive’s eligible dependents with coverage under its group health plans. In addition, during the
Employment Period, Executive shall be eligible to participate in any retirement, savings and other employee benefit plans and programs
maintained from time to time by the Company for the benefit of its senior executive officers. Nothing contained in this Section 2(b)(iii) shall
create or be deemed to create any obligation on the part of the Company to adopt or maintain any health, welfare, retirement or
other benefit plan or program at any time or to create any limitation on the Company’s ability to modify or terminate any
such plan or program.

 

(iv)          Expenses.
During the Employment Period, the Executive shall be entitled to receive prompt reimbursement for all reasonable business expenses
incurred by the Executive in accordance with the policies, practices and procedures of the Company provided to employees of the
Company.

 

(v)           Fringe
Benefits. During the Employment Period, the Executive shall be eligible to receive such fringe benefits and perquisites as
are provided by the Company to its employees from time to time, in accordance with the policies, practices and procedures of the
Company, and shall receive such additional fringe benefits and perquisites as the Company may, in its discretion, from time-to-time
provide.

 

(vi)         Vacation.
During the Employment Period, the Executive shall be entitled to paid vacation in accordance with the plans, policies, programs
and practices of the Company applicable to its senior executives in effect from time to time, but in no event shall the Executive
be entitled to less than four (4) weeks of vacation per calendar year (pro-rated for any partial year of service).

 

3.             Termination
of Employment.

 

(a)            Death
or Disability. The Executive’s employment shall terminate automatically upon the Executive’s death during the Employment
Period. Either the Company or the Executive may terminate the Executive’s employment in the event of the Executive’s
Disability during the Employment Period. For purposes of this Agreement, “Disability” shall mean any
disability or incapacity that (i) renders Executive unable to substantially perform his duties hereunder for ninety (90) days
during any 12-month period or (ii) would reasonably be expected to render Executive unable to substantially perform his duties
for ninety (90) days during any 12-month period, in each case as determined by the Board in its good faith judgment.

 

(b)           Termination
by the Company. The Company may terminate the Executive’s employment during the Employment Period for Cause or without
Cause. For purposes of this Agreement, “Cause” shall mean the occurrence of any one or more of the following
events unless, to the extent capable of correction, the Executive fully corrects the circumstances constituting Cause within fifteen
(15) days after receipt of the Notice of Termination (as defined below):

 

(i)            Executive
performing his duties, in the good faith opinion of the Board, in a grossly negligent or reckless manner or with willful malfeasance;

 

(ii)           Executive
exhibiting habitual drunkenness or engaging in substance abuse;

 

    3 

     

    

 

(iii)          Executive
committing any material violation of any state or federal law relating to the workplace environment (including, without limitation,
laws relating to sexual harassment or age, sex or other prohibited discrimination) or any material violation of any Company policy;

 

(iv)          Executive
willfully failing or refusing to perform in the usual manner at the usual time those duties which he regularly and routinely performs
in connection with the business of the Company or such other duties reasonably related to the capacity in which he is employed
hereunder which may be assigned to him by the Board;

 

(v)           Executive
performing any material action when specifically and reasonably instructed not to do so by the Chairman or the Board;

 

(vi)          Executive
breaching Sections 7, 8 and 9 hereof;

 

(vii)         Executive
committing any fraud or using or appropriating for his or her personal use or benefit any funds, properties or opportunities of
the Company not authorized by the Board to be so used or appropriated; or

 

(viii)        Executive
being convicted of any felony or any other crime related to his employment or involving moral turpitude.

 

The Company shall not be entitled to terminate
Executive for Cause pursuant to clause (iii), (iv), (v) or (vi) unless the Company provides written notice stating in
reasonable detail the basis for termination and a fifteen (15) day opportunity to cure to Executive (unless (1) the Company
reasonably determines that providing such opportunity to cure to Executive is reasonably likely to have a material adverse effect
on its business, financial condition, results of operations, prospects or assets, (2) the facts and circumstances underlying
such termination are not able to be cured or (3) the Company has previously provided Executive an opportunity to cure the
applicable issue; in the case of (1), (2) or (3), the Company may terminate Executive without providing an opportunity to
cure).

 

(c)           Termination
by the Executive. The Executive’s employment may be terminated by the Executive for any reason, including with Good Reason
or by the Executive without Good Reason. For purposes of this Agreement, “Good Reason” shall mean the
occurrence of any one or more of the following events without the Executive’s prior written consent, unless the Company fully
corrects the circumstances constituting Good Reason (provided such circumstances are capable of correction) as provided below:

 

(i)            A
material reduction in the Executive’s job responsibilities and duties for the Company;

 

(ii)           A
material reduction in the Executive’s Base Salary; or

 

(iii)          a
requirement imposed by the Company on the Executive that Executive’s principal place of employment be anywhere other than
within a 50 mile radius of the Executive’s Principal Location, except for required travel on Company business to an extent
substantially consistent with Executive's business travel obligations, that, in any such case, is not cured by the Company within
fifteen (15) days after the Company’s receipt of written notice from the Executive of such event.

 

    4 

     

    

 

Notwithstanding the foregoing, the Executive
will not be deemed to have resigned for Good Reason unless (1) the Executive provides the Company with written notice setting
forth in reasonable detail the facts and circumstances claimed by the Executive to constitute Good Reason within sixty (60) days
after the date of the occurrence of any event that the Executive knows or should reasonably have known to constitute Good Reason,
(2) the Company fails to cure such acts or omissions within thirty (30) days following its receipt of such notice, and (3) the
effective date of the Executive’s termination for Good Reason occurs no later than sixty (60) days after the expiration of
the Company’s cure period.

 

(d)           Notice
of Termination. Any termination by the Company for Cause, or by the Executive for Good Reason, shall be communicated by a Notice
of Termination to the other parties hereto given in accordance with Section 13(d) hereof. For purposes of this Agreement,
a “Notice of Termination” means a written notice which (i) indicates the specific termination provision
in this Agreement relied upon, (ii) sets forth in reasonable detail the facts and circumstances claimed to provide a basis
for termination of the Executive’s employment under the provision so indicated and (iii) if the Date of Termination
(as defined below) is other than the date of receipt of such notice, specifies the termination date (which date shall be not more
than thirty (30) days after the giving of such notice). The failure by the Executive or the Company to set forth in the Notice
of Termination any fact or circumstance which contributes to a showing of Good Reason or Cause shall not waive any right of the
Executive or the Company, respectively, hereunder or preclude the Executive or the Company, respectively, from asserting such fact
or circumstance in enforcing the Executive’s or the Company’s rights hereunder.

 

(e)           Termination
of Offices and Directorships; Return of Property. Upon termination of the Executive’s employment for any reason, unless
otherwise specified in a written agreement between the Executive and the Company, the Executive shall be deemed to have resigned
from all offices, directorships, and other employment positions if any, then held with the Company, and shall take all actions
reasonably requested by the Company to effectuate the foregoing. In addition, upon the termination of the Executive’s employment
for any reason, the Executive agrees to return to the Company all documents of the Company and its affiliates (and all copies thereof)
and all other Company or Company affiliate property that the Executive has in his or her possession, custody or control. Such property
includes, without limitation: (i) any materials of any kind that the Executive knows contain or embody any proprietary or
confidential information of the Company or an affiliate of the Company (and all reproductions thereof), (ii) computers (including,
but not limited to, laptop computers, desktop computers and similar devices) and other portable electronic devices (including,
but not limited to, tablet computers), cellular phones/smartphones, credit cards, phone cards, entry cards, identification badges
and keys, and (iii) any correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals,
financial documents, or any other documents concerning the customers, business plans, marketing strategies, products and/or processes
of the Company or any of its affiliates and any information received from the Company or any of its affiliates regarding third
parties.

 

4.             Obligations
of the Company upon Termination. Upon a termination of the Executive’s employment for any reason, the Executive shall
be paid, in a single lump-sum payment on the date of the Executive’s termination of employment, the aggregate amount of the
Executive’s earned but unpaid Base Salary and accrued but unpaid vacation pay through the date of such termination (the “Accrued
Obligations”).

 

(a)           Without
Cause or For Good Reason. If the Executive’s employment with the Company is terminated during the Employment Period (x) by
the Company without Cause (other than by reason of the Executive’s death or Disability or due to the expiration of the Employment
Period) or (y) by the Executive for Good Reason (in either case, a “Qualifying Termination”), then
following the Executive’s Separation from Service (as defined below) (such date, the “Date of Termination”),
in each case, subject to and conditioned upon compliance with Section 4(d) hereof, in addition to the Accrued Obligations:

 

    5 

     

    

 

(i)            Cash
Severance. The Company shall continue to pay to the Executive the sum of (A) the Executive’s Base Salary in effect
on the Date of Termination and (B) the Target Bonus for the year in which the Date of Termination occurs during the period
beginning on the Date of Termination and ending on the 12 -month anniversary of the Date of Termination (the “Severance
Period”) in installments in accordance with the Company’s regular payroll practices as of the Date of Termination;

 

(ii)           COBRA.
During the Severance Period, subject to the Executive’s valid election to continue healthcare coverage under Section 4980B
of the Internal Revenue Code and the regulations thereunder (together, the “Code”), the Company shall
continue to provide the Executive and the Executive’s eligible dependents with coverage under its group health plans at the
same levels and the same cost to the Executive as would have applied if the Executive’s employment had not been terminated
based on the Executive’s elections in effect on the Date of Termination (the “COBRA Payments”),
provided, however, that (A) if any plan pursuant to which such benefits are provided is not, or ceases
prior to the expiration of the period of continuation coverage to be, exempt from the application of Section 409A (as defined
below) under Treasury Regulation Section 1.409A-1(a)(5), or (B) the Company is otherwise unable to continue to cover
the Executive under its group health plans without incurring penalties (including without limitation, pursuant to Section 2716
of the Public Health Service Act or the Patient Protection and Affordable Care Act), then, in either case, an amount equal to each
remaining Company subsidy shall thereafter be paid to the Executive in substantially equal monthly installments over the continuation
coverage period (or the remaining portion thereof).

 

(iii) Change
in Control. Notwithstanding the foregoing, if the Qualifying Termination occurs within the 12-month period following
a Change in Control or within the 3-month period prior to a Change in Control, as defined in the Company’s 2020 Incentive
Award Plan, as amended (and such Change in Control constitutes a “change in control event” as defined in Treasury Regulations
Section 1.409A-3(i)(5)), then in lieu of the foregoing payments set forth in Section 4(a)(i), the Company shall pay to
the Executive the sum of (x) 18 -months of Executive’s Base Salary in effect on the Date of Termination and (y) 1.5
times the Executive’s Target Bonus for the year in which the Date of Termination occurs, during the period beginning on the
18-month anniversary of the Date of Termination (the “Change in Control Severance Period”) in install
ments in accordance with the Company’s regular payroll practices as of the Date of Termination, and in lieu of the benefits
set forth in Section 4(a)(ii), the Executive shall be entitled to the COBRA Payments during the Change in Control Severance
Period. In addition, unless otherwise explicitly set forth in any award agreement, any unvested equity awards outstanding immediately
prior to the Date of Termination shall automatically become fully vested and exercisable (as applicable).

 

Notwithstanding the foregoing, it shall
be a condition to the Executive’s right to receive the amounts provided for in Sections 4(a)(i), 4(a)(ii) and 4(a)(iii) hereof
that the Executive execute and deliver to the Company an effective release of claims in substantially the form attached hereto
as Exhibit B (the “Release”) within twenty-one (21) days (or, to the extent required by law,
forty-five (45) days) following the Date of Termination and that the Executive not revoke such Release during any applicable revocation
period.

 

    6 

     

    

 

(b)           For
Cause, Without Good Reason or Other Terminations. If the Company terminates the Executive’s employment for Cause, the
Executive terminates the Executive’s employment without Good Reason, or the Executive’s employment terminates for any
other reason not enumerated in Sections 4(a) or 4(b) hereof, in any case, during the Employment Period, or if the Executive’s
employment with the Company is terminated due to the expiration of the Employment Period, then, in any case, the Company shall
pay to the Executive the Accrued Obligations in cash within thirty (30) days after the Date of Termination (or by such earlier
date as may be required by applicable law), and the Executive shall have no further rights hereunder.

 

(c)            Six-Month
Delay. Notwithstanding anything to the contrary in this Agreement, no compensation or benefits, including without limitation
any severance payments or benefits payable under Section 4 hereof, shall be paid to the Executive during the six (6)-month
period following the Executive’s “separation from service” from the Company (within the meaning of Section 409A,
a “Separation from Service”) if the Company determines that paying such amounts at the time or times
indicated in this Agreement would be a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code. If the payment
of any such amounts is delayed as a result of the previous sentence, then on the first day of the seventh month following the date
of Separation from Service (or such earlier date upon which such amount can be paid under Section 409A without resulting in
a prohibited distribution, including as a result of the Executive’s death), the Company shall pay the Executive a lump-sum
amount equal to the cumulative amount that would have otherwise been payable to the Executive during such period.

 

(d)           Exclusive
Benefits. Except as expressly provided in this Section 4 and subject to Section 5 hereof, the Executive shall not
be entitled to any additional payments or benefits upon or in connection with the Executive’s termination of employment.

 

5.             Non-Exclusivity
of Rights. Amounts which are vested benefits or which the Executive is otherwise entitled to receive under any plan, policy,
practice or program of or any contract or agreement with the Company at or subsequent to the Date of Termination shall be payable
in accordance with such plan, policy, practice or program or contract or agreement except as explicitly modified by this Agreement.

 

6.             Excess
Parachute Payments, Limitation on Payments.

 

(a)            Best
Pay Cap. Notwithstanding any other provision of this Agreement, in the event that any payment or benefit received or to be
received by the Executive (including any payment or benefit received in connection with a termination of the Executive’s
employment, whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement) (all such payments and
benefits, including the payments and benefits under Section 4 hereof, being hereinafter referred to as the “Total
Payments”) would be subject (in whole or part), to the excise tax imposed under Section 4999 of the Code (the
 “Excise Tax”), then, after taking into account any reduction in the Total Payments provided by reason
of Section 280G of the Code in such other plan, arrangement or agreement, the cash severance payments under this Agreement
shall first be reduced, and the noncash severance payments hereunder shall thereafter be reduced, to the extent necessary so that
no portion of the Total Payments is subject to the Excise Tax but only if (i) the net amount of such Total Payments, as so
reduced (and after subtracting the net amount of federal, state and local income taxes on such reduced Total Payments and after
taking into account the phase out of itemized deductions and personal exemptions attributable to such reduced Total Payments) is
greater than or equal to (ii) the net amount of such Total Payments without such reduction (but after subtracting the net
amount of federal, state and local income taxes on such Total Payments and the amount of Excise Tax to which the Executive would
be subject in respect of such unreduced Total Payments and after taking into account the phase out of itemized deductions and personal
exemptions attributable to such unreduced Total Payments).

 

    7 

     

    

 

(b)           Certain
Exclusions. For purposes of determining whether and the extent to which the Total Payments will be subject to the Excise Tax,
(i) no portion of the Total Payments the receipt or enjoyment of which the Executive shall have waived at such time and in
such manner as not to constitute a “payment” within the meaning of Section 280G(b) of the Code shall be taken
into account; (ii) no portion of the Total Payments shall be taken into account which, in the written opinion of an independent,
nationally recognized accounting or consulting firm (the “Independent Advisors”) selected by the Company,
does not constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code (including
by reason of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of such Total Payments
shall be taken into account which, in the opinion of the Independent Advisors, constitutes reasonable compensation for services
actually rendered, within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the “base amount”
(as defined in Section 280G(b)(3) of the Code) allocable to such reasonable compensation; and (iii) the value of
any non-cash benefit or any deferred payment or benefit included in the Total Payments shall be determined by the Independent Advisors
in accordance with the principles of Sections 280G(d)(3) and (4) of the Code.

 

7.             Nondisclosure
and Nonuse of Confidential Information.

 

(a)           The
Executive’s employment creates a relationship of confidence and trust between the Company and the Executive with respect
to any information that is applicable to the business of the Company or the affiliates, any information that is otherwise used,
developed or obtained by the Company or any affiliate in connection with its business and any information that is applicable to
the business of any client, customer or other commercial partner of the Company or the affiliates, which may be made known to the
Executive or learned by the Executive in such context during the period of his employment with the Company. All such information,
whether oral or written, has commercial value in the business in which the Company is engaged and is referred to herein as “Confidential
Information”.

 

(b)           The
Company owns all right, title and interest in and to all Confidential Information. The Executive hereby assigns to the Company
all right, title and interest that he may have acquired or hereafter may acquire in all Confidential Information. The Executive
shall, at all times, both during the Employment Period and after the termination of the Employment Period, keep in confidence and
trust all Confidential Information and the Executive shall not use or disclose any Confidential Information except as may be necessary
in the ordinary course of performing his duties as an employee of the Company. Upon termination of the Employment Period, or at
any time upon the request of the Company before such termination, the Executive shall promptly (but no later than five (5) days
after the earlier of such termination or such request) destroy or deliver to the Company, at the Company’s option, all Confidential
Information in the Executive’s control or possession and a written certification of the Executive’s compliance with
such obligations.

 

(c)            the
Executive hereby represents and warrants to the Company that neither his performance of the terms of this Agreement nor his employment
with the Company will breach or conflict with any agreement, understanding, policy or other arrangement that he is a party to or
otherwise subject to or bound by (including, without limitation, any such agreement, understanding, policy or arrangement (i) relating
to nondisclosure or nonuse of proprietary information, knowledge or data or (ii) that otherwise assigns, licenses or otherwise
transfers any interest in or to any Company Innovation (as defined below) to person or entity other than the Company). The Executive
shall not disclose to the Company or otherwise use any confidential or proprietary information or material belonging to any other
person or entity.

 

(d)           Notice
of Immunity Under the Economic Espionage Act of 1996, as amended by the Defend Trade Secrets Act of 2016 (“DTSA”).
Notwithstanding any other provision of this Agreement:

 

(e)            the
Executive will not be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade
secret that: (A) is made: (1) in confidence to a federal, state, or local government official, either directly or indirectly,
or to an attorney; and (2) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is
made in a complaint or other document that is filed under seal in a lawsuit or other proceeding.

 

    8 

     

    

 

(f)            If
the Executive files a lawsuit for retaliation by the Company for reporting a suspected violation of law, the Executive may disclose
the Company’s trade secrets to the Executive’s attorney and use the trade secret information in the court proceeding
if the Executive: (A) files any document containing the trade secret under seal; and (B) does not disclose the trade
secret, except pursuant to court order.

 

(g)           the
Executive shall (i) comply with all Company security policies and procedures as in force from time to time including, without
limitation, those regarding computer equipment, telephone systems, voicemail systems, facilities access, monitoring, key cards,
access codes, Company intranet, internet, social media and instant messaging systems, e-mail systems, document storage systems,
software licenses, data security, encryption, firewalls and passwords (the “Facilities and Information Technology Resources”);
(ii) not access or use any Facilities and Information Technology Resources except as authorized by the Company; and (iii) not
access or use any Facilities and Information Technology Resources in any manner after the termination of the Executive’s employment by
the Company, whether termination is voluntary or involuntary.

 

8.             Inventions
and Proprietary Rights.

 

(a)            the
Executive represents and warrants to the Company that he does not have any right, title or interest in or to any Innovation (as
defined below) applicable to the business of the Company or relating in any way to the Company’s business or demonstrably
anticipated research and development or business that were conceived, reduced to practice, created, derived, developed or made
by the Executive prior to the date hereof.

 

(b)           the
Executive hereby agrees promptly to disclose and describe to the Company, and the Executive hereby assigns to the Company all right,
title and interest in and to, each of the Innovations and all associated intellectual property rights that the Executive may solely
or jointly conceive, reduce to practice, create, derive, develop or make during the period of his employment with the Company that
(i) relate to the Company’s or any affiliate’s business or actual or demonstrably anticipated research or development,
(ii) were developed on any amount of the Company’s or any affiliate’s time or with the use of any of the Company’s
or any affiliate’s materials, equipment, supplies, facilities or information or (iii) resulted from any work that the
Executive performed for the Company or any affiliate (collectively, the “Company Innovations”). the Executive
further acknowledges and agrees that all Company Innovations, including, without limitation, any computer programs, programming
documentation, and other works of authorship, are “works made for hire” for purposes of the Company’s rights
under copyright laws and the Executive hereby assigns to the Company any and all right, title and interest that the Executive may
have acquired or may hereafter acquire in such Company Innovations. Any assignment of copyright hereunder includes all rights of
paternity, integrity, disclosure and withdrawal and any other rights that may be known as or referred to as “moral rights”
(collectively “Moral Rights”). To the extent that such Moral Rights cannot be assigned under applicable
law and to the extent the following is allowed by the laws in the various countries where Moral Rights exist, the Executive hereby
waives such Moral Rights and consents to any action of the Company and the affiliates that would violate such Moral Rights in the
absence of such consent. The Executive shall confirm any such waivers and consents from time to time as requested by the Company.
To the extent that any right, title or interest in or to any Company Innovation cannot be assigned by the Executive to the Company,
the Executive hereby grants to the Company an exclusive, royalty-free, transferable, irrevocable, worldwide license (with rights
to sublicense through multiple tiers of sublicensees) to practice such non-assignable right, title or interest. To the extent that
any right, title or interest in or to any Company Innovation can be neither assigned nor licensed by the Executive to the Company,
the Executive hereby irrevocably waives and agrees never to assert such non-assignable and non-licensable right, title or interest
against the Company, any affiliate or any of their successors in interest to such non-assignable and non-licensable rights.

 

    9 

     

    

 

(c)            the
Executive recognizes that Innovations and Confidential Information relating to his activities while working for the Company and
conceived, reduced to practice, created, derived, developed or made by the Executive, alone or with others, within six (6) months
after termination of his employment with the Company may have been conceived, reduced to practice, created, derived, developed
or made, as applicable, in significant part while employed by the Company. Accordingly, the Executive agrees that such Innovations
and Confidential Information shall be presumed to have been conceived, reduced to practice, created, derived, developed or made,
as applicable, during his employment with the Company and shall be assigned to the Company unless and until the Executive has established
the contrary by written evidence satisfying the clear and convincing standard of proof.

 

(d)           the
Executive shall perform, during and after his employment with the Company, all acts deemed necessary or desirable by the Company
to permit and assist the Company, at the Company’s expense, in obtaining and enforcing the full benefits, enjoyment, rights
and title throughout the world in the Confidential Information and Innovations assigned or licensed to, or whose rights are irrevocably
waived and shall not be asserted against, the Company and the affiliates under this Agreement. Such acts may include, but are not
limited to, execution of documents and assistance or cooperation (i) in the filing, prosecution, registration, and memorialization
of assignment of any applicable patents, copyrights, mask works or other applications, (ii) in the enforcement of any applicable
patents, copyrights, mask works, Moral Rights, trade secrets or other rights, and (iii) in other legal proceedings related
to the Confidential Information or Innovations.

 

(e)            In
the event that the Company is unable for any reason to secure the Executive’s signature to any document required to file,
prosecute, register, or memorialize the assignment of any patent, copyright, mask work or other applications or to enforce any
patent, copyright, mask work, Moral Right, trade secret or other right under any Confidential Information (including improvements
thereof) or any Innovations (including derivative works, improvements, renewals, extensions, continuations, divisionals, continuations
in part, continuing patent applications, reissues, and reexaminations thereof), the Executive hereby irrevocably designates and
appoints the Company and the Company’s duly authorized officers and agents as his agents and attorneys-in-fact to act for
and on his behalf and instead of the Executive (i) to execute, file, prosecute, register and memorialize the assignment of
any such application, (ii) to execute and file any documentation required for such enforcement and (iii) to do all other
lawfully permitted acts to further the filing, prosecution, registration, memorialization of assignment, issuance, and enforcement
of patents, copyrights, mask works, Moral Rights, trade secrets or other rights under the Confidential Information or Innovations,
all with the same legal force and effect as if executed by the Executive.

 

(f)            The
term “Innovations” means all processes, improvements, inventions (whether or not protectable under patent
laws), works of authorship, information fixed in any tangible medium of expression (whether or not protectable under copyright
laws), moral rights, mask works, trademarks, trade names, trade dress, trade secrets, know-how, ideas (whether or not protectable
under trade secret laws) and all other subject matter protectable under patent, copyright, moral right, mask work, trademark, trade
secret or other laws and includes, without limitation, all new or useful art, combinations, designs, developments, modifications,
derivative works, discoveries, formulae, techniques and all goodwill associated with any of the foregoing.

 

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(g)           The
Executive hereby irrevocably consents to any and all uses and displays, by the Company and its affiliates, agents, representatives
and licensees, of the Executive’s name, voice, likeness, image, appearance, and biographical information in, on or in connection
with any pictures, photographs, audio and video recordings, digital images, websites, television programs and advertising, other
advertising and publicity, sales and marketing brochures, books, magazines, other publications, CDs, DVDs, tapes, and all other
printed and electronic forms and media throughout the world, at any time during or after the period of his employment by the Company,
for all legitimate commercial and business purposes of the Company (“Permitted Uses”) without further
consent from or royalty, payment, or other compensation to the Executive. the Executive hereby forever waives and releases the
Company and its directors, managing members, officers, employees and agents from any and all claims, actions, damages, losses,
costs, expenses, and liability of any kind, arising under any legal or equitable theory whatsoever at any time during or after
the period of his employment by the Company, arising directly or indirectly from the Company’s and its affiliates’,
agents’, representatives’ and licensees’ exercise of their rights in connection with any Permitted Uses.

 

9.             Non-Compete;
Non-Solicitation.

 

(a)           The
Executive acknowledges that, in the course of his employment with the Company and/or the Restricted Affiliates (as defined below),
he has become familiar, or will become familiar, with trade secrets and with other confidential information concerning the Company
and the Restricted Affiliates and that his services have been and will be of special, unique and extraordinary value to the Company
and the Restricted Affiliates. the Executive understands that the following restrictions may limit his ability to earn a livelihood
in a business similar to the business of the Company or any of the Restricted Affiliates, but he nevertheless believes that he
will receive sufficient consideration and other benefits as an equity holder and an employee of the Company and as otherwise provided
hereunder to clearly justify such restrictions which, in any event (given his education, skills and ability), the Executive does
not believe would prevent him from otherwise earning a living. The Executive further understands that the provisions of Sections
7 through 9, inclusive, are reasonable and necessary to preserve the business of the Company and the Restricted Affiliates. “Restricted
Affiliate” means any affiliate for which, during the twenty-four (24) month period preceding the Termination Date,
the Executive served as an officer or director or the Executive provided any material services.

 

(b)           In
light of Section 9(a), the Executive agrees that while the Executive is employed by the Company, he shall not directly or
indirectly own, manage, operate, control, finance or invest in, participate in, consult with, render services for, act as an officer,
director, manager, partner, principal, agent, representative, contractor or advisor of or to, or in any manner engage in or be
associated with, hold any interest in, be employed by or represent any other business competing with the businesses or the services
or products of the Company or the Restricted Affiliates as such businesses and/or services or products exist or are in the process
of being formed, developed or acquired as of the Termination Date. Nothing herein shall prohibit the Executive from being a passive
owner of not more than one percent (1%) of the outstanding stock of any class of a corporation which is publicly traded, so long
as the Executive has no active participation in the business of such corporation.

 

(c)            Furthermore,
in light of Section 9(a), the Executive agrees that:

 

(i)            while
the Executive is employed by the Company and for twelve (12) months thereafter, the Executive shall not directly or indirectly
through another person or entity: (x) induce or attempt to induce any employee or independent contractor of the Company or
any Restricted Affiliate to leave the employ of or engagement with the Company or such Restricted Affiliate, or in any way interfere
with the relationship between the Company or any such Restricted Affiliate, on the one hand, and any employee or independent contractor
thereof, on the other hand; or (y) hire or engage any person who was an employee or independent contractor of the Company
until twelve months after such individual’s relationship with the Company or any Restricted Affiliate has been terminated;
and

 

    11 

     

    

 

(ii)           while
the Executive is employed by the Company, the Executive shall not directly or indirectly through another person or entity: (x) induce
or attempt to induce any customer (it being understood that the term “customer” as used throughout this Agreement includes
any person or entity that is receiving services from the Company or any Restricted Affiliate or that is directly or indirectly
providing or referring business for the Company or any Restricted Affiliate), supplier, independent contractor, licensee or other
business relation of the Company or any Restricted Affiliate to cease doing business with the Company or any Restricted Affiliate,
or in any way interfere with the relationship between any such customer, supplier, independent contractor, licensee or business
relation, on the one hand, and the Company or any Restricted Affiliate, on the other hand; or (y) solicit any customer of
the Company or any Restricted Affiliate in order to offer products or services similar to those offered by the Company or any Restricted
Affiliate.

 

(d)           The
Executive shall inform any prospective or future employer of any and all restrictions contained in this Agreement and provide such
employer with a copy of such restrictions (but no other terms of this Agreement) prior to the commencement of that employment.

 

(e)            If,
at the time of enforcement of Section 9, a court holds that the restrictions stated herein are unreasonable under the circumstances
then existing, the Executive and the Company agree that the maximum period, scope or geographical area reasonable under such circumstances
shall be substituted for the stated period, scope or area so as to protect the Company to the greatest extent possible under applicable
law from improper competition.

 

(f)            In
the event of any breach or violation by the Executive of any of the restrictions contained in Section 9, any time period specified
herein shall abate during the time of any such breach or violation thereof and that portion remaining at the time of commencement
of any such breach or violation shall not begin to run until such breach or violation has been cured in all respects.

 

10.           Enforcement.
Because the Executive’s services are unique and because the Executive has access to Confidential Information and Company
Innovations, the parties hereto agree that monetary damages alone would be an inadequate remedy for any breach of this Agreement.
Therefore, in the event of a breach or threatened breach of this Agreement, the Company or its successors or assigns may, in addition
to other rights and remedies existing in their favor at law or in equity, apply to any court of competent jurisdiction for specific
performance and/or injunctive or other relief in order to enforce, or prevent any violations of, the provisions hereof (without
posting a bond or other security) or require the Executive to account for and pay over to the Company all compensation, profits,
moneys, accruals, increments or other benefits derived from or received as a result of any transactions constituting a breach of
the covenants contained in this Agreement, if and when final judgment of a count of competent jurisdiction is so entered against
the Executive. The rights and remedies of the Company under this Agreement are not exclusive of or limited by any other rights
or remedies which they may have, whether at law, in equity, by contract or otherwise, all of which shall be cumulative (and not
alternative). Without limiting the generality of the foregoing, the rights and remedies of the Company under this Agreement, and
the obligations and liabilities of the Executive under this Agreement, are in addition to their respective rights, remedies, obligations
and liabilities under the laws of unfair competition, laws relating to misappropriation of trade secrets and all other laws, rules and
regulations. No failure on the part of any person or entity to exercise any power, right, privilege or remedy under this Agreement,
and no delay on the part of any person or entity in exercising any power, right, privilege or remedy under this Agreement, shall
operate as a waiver of such power, right, privilege or remedy; and no single or partial exercise of any such power, right, privilege
or remedy shall preclude any other or further exercise thereof or of any other power, right, privilege or remedy. No person or
entity shall be deemed to have waived any claim arising out of this Agreement, or any power, right, privilege or remedy under this
Agreement, unless the waiver of such claim, power, right, privilege or remedy is expressly set forth in a written instrument duly
executed and delivered on behalf of such person or entity; and any such waiver shall not be applicable or have any effect except
in the specific instance in which it is given.

 

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11.           Representations.
The Executive hereby represents and warrants to the Company that (a) the Executive is entering into this Agreement voluntarily
and that the performance of the Executive’s obligations hereunder will not violate any agreement between the Executive and
any other person, firm, organization or other entity, and (b) the Executive is not bound by the terms of any agreement with
any previous employer or other party to refrain from competing, directly or indirectly, with the business of such previous employer
or other party that would be violated by the Executive’s entering into this Agreement and/or providing services to the Company
pursuant to the terms of this Agreement.

 

12.           Successors.

 

(a)           This
Agreement is personal to the Executive and, without the prior written consent of the Company, shall not be assignable by the Executive
otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable
by the Executive’s legal representatives.

 

(b)           This
Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.

 

(c)           The
Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially
all of the business and/or assets of the Company to assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession had taken place. As used in this Agreement, “Company”
shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees
to perform this Agreement by operation of law, or otherwise.

 

13.           Miscellaneous.

 

(a)           Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Maryland, without reference
to principles of conflict of laws. The captions of this Agreement are not part of the provisions hereof and shall have no force
or effect.

 

(b)           Compensation
Recovery Policy. Executive acknowledges and agrees that, to the extent the Company adopts any claw-back or similar policy pursuant
to the Dodd-Frank Wall Street Reform and Consumer Protection Act or otherwise, and any rules and regulations promulgated thereunder,
he or she shall take all action necessary or appropriate to comply with such policy (including, without limitation, entering into
any further agreements, amendments or policies necessary or appropriate to implement and/or enforce such policy with respect to
past, present and future compensation, as appropriate).

 

(c)           Whistleblower
Protections and Trade Secrets. Notwithstanding anything to the contrary contained herein, nothing in this Agreement prohibits
Executive from reporting possible violations of federal law or regulation to any United States governmental agency or entity in
accordance with the provisions of and rules promulgated under Section 21F of the Securities
Exchange Act of 1934 or Section 806 of the Sarbanes-Oxley Act of 2002, or any other whistleblower protection provisions of
state or federal law or regulation (including the right to receive an award for information provided to any such government agencies).
Furthermore, in accordance with 18 U.S.C. § 1833, notwithstanding anything to the contrary in this Agreement: (i) Executive
shall not be in breach of this Agreement, and shall not be held criminally or civilly liable under any federal or state trade secret
law (A) for the disclosure of a trade secret that is made in confidence to a federal, state, or local government official
or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or (B) for the disclosure
of a trade secret that is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made
under seal; and (ii) if Executive files a lawsuit for retaliation by the Company for reporting a suspected violation of law,
Executive may disclose the trade secret to Executive’s attorney, and may use the trade secret information in the court proceeding,
if Executive files any document containing the trade secret under seal, and does not disclose the trade secret, except pursuant
to court order.

 

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(d)            Notices.
All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by
registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

 

If
to the Executive: at the Executive’s most recent address on the records of the Company.

 

If
to the Company:

 

Azyio Biologics, Inc.

12510 Prosperity Drive

Suite 1-370

Silver Spring, MD 20904

Attention: Board of Directors

 

with a copy to:

 

Latham & Watkins LLP

885 Third Avenue

New York, NY 10022-4802

Attn: [XXX]

 

or to such other address as either party
shall have furnished to the other in writing in accordance herewith. Notice and communications shall be effective when actually
received by the addressee.

 

(e)            Sarbanes-Oxley
Act of 2002. Notwithstanding anything herein to the contrary, if the Company determines, in its good faith judgment, that any
transfer or deemed transfer of funds hereunder is likely to be construed as a personal loan prohibited by Section 13(k) of
the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder (the “Exchange
Act”), then such transfer or deemed transfer shall not be made to the extent necessary or appropriate so as not to
violate the Exchange Act and the rules and regulations promulgated thereunder.

 

(f)            Section 409A
of the Code.

 

(i)            To
the extent applicable, this Agreement shall be interpreted in accordance with Section 409A of the Code and Department of Treasury
regulations and other interpretive guidance issued thereunder (together, “Section 409A”). Notwithstanding
any provision of this Agreement to the contrary, if the Company determines that any compensation or benefits payable under this
Agreement may be subject to Section 409A, the Company shall work in good faith with the Executive to adopt such amendments
to this Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect),
or take any other actions, that the Company determines are necessary or appropriate to avoid the imposition of taxes under Section 409A,
including without limitation, actions intended to (i) exempt the compensation and benefits payable under this Agreement from
Section 409A, and/or (ii) comply with the requirements of Section 409A; provided, however,
that this Section 10(d) shall not create an obligation on the part of the Company to adopt any such amendment, policy
or procedure or take any such other action, nor shall the Company have any liability for failing to do so.

 

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(ii)           Any
right to a series of installment payments pursuant to this Agreement is to be treated as a right to a series of separate payments.
To the extent permitted under Section 409A, any separate payment or benefit under this Agreement or otherwise shall not be
deemed “nonqualified deferred compensation” subject to Section 409A to the extent provided in the exceptions in
Treasury Regulation Section 1.409A-1(b)(4), Section 1.409A-1(b)(9) or any other applicable exception or provision
of Section 409A. Any payments subject to Section 409A that are subject to execution of a waiver and release which may
be executed and/or revoked in a calendar year following the calendar year in which the payment event (such as termination of employment)
occurs shall commence payment only in the calendar year in which the consideration period or, if applicable, release revocation
period ends, as necessary to comply with Section 409A. All payments of nonqualified deferred compensation subject to Section 409A
to be made upon a termination of employment under this Agreement may only be made upon Employee’s “separation from
service” from the Company (within the meaning of Section 409A, a “Separation from Service”).

 

(iii)          To
the extent that any payments or reimbursements provided to the Executive under this Agreement are deemed to constitute compensation
to the Executive to which Treasury Regulation Section 1.409A-3(i)(1)(iv) would apply, such amounts shall be paid or reimbursed
reasonably promptly, but not later than December 31 of the year following the year in which the expense was incurred. The
amount of any such payments eligible for reimbursement in one year shall not affect the payments or expenses that are eligible
for payment or reimbursement in any other taxable year, and the Executive’s right to such payments or reimbursement of any
such expenses shall not be subject to liquidation or exchange for any other benefit.

 

(g)           Severability.
The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement.

 

(h)           Withholding.
The Company may withhold from any amounts payable under this Agreement such federal, state, local or foreign taxes as shall be
required to be withheld pursuant to any applicable law or regulation.

 

(i)            No
Waiver. The Executive’s or the Company’s failure to insist upon strict compliance with any provision of this Agreement
or the failure to assert any right the Executive or the Company may have hereunder, including, without limitation, the right of
the Executive to terminate employment for Good Reason pursuant to Section 3(c) hereof, shall not be deemed to be a waiver
of such provision or right or any other provision or right of this Agreement.

 

(j)            Entire
Agreement. As of the Effective Date, this Agreement constitutes the final, complete and exclusive agreement between the Executive
and the Company with respect to the subject matter hereof and replaces and supersedes any and all other agreements, offers or promises,
whether oral or written, by any member of the Company and its subsidiaries or affiliates, or representative thereof, including
without limitation Prior Agreement.

 

(k)           Amendment.
No amendment or other modification of this Agreement shall be effective unless made in writing and signed by the parties hereto.

 

(l)            Counterparts.
This Agreement and any agreement referenced herein may be executed simultaneously in two or more counterparts, each of which shall
be deemed an original but which together shall constitute one and the same instrument.

 

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[SIGNATURES APPEAR ON FOLLOWING PAGE]

 

    16 

     

    

 

IN WITNESS WHEREOF, the
Executive has hereunto set the Executive’s hand and, pursuant to the authorization from the Board, the Company has caused
these presents to be executed in its name on its behalf, all as of the day and year first above written.

 

		AZIYO BIOLOGICS, INC.
	 	 	 
	 	By:	/s/ Kevin Rakin
	 		Name: Kevin Rakin
	 	 	Title: Chairman of the Board 
	 	 	 
	 	“EXECUTIVE”
	 	 	/s/ Ronald Lloyd
	 	 	Ronald Lloyd

 

    S-1 

     

    

   

EXHIBIT A

 

		1.	Member, Board of Directors for Biom’up International LLC, a private company wholly owned by affiliates of Athyrium Capital
Management, LP.

 

     

     

    

 

EXHIBIT B

 

GENERAL RELEASE

 

For
valuable consideration, the receipt and adequacy of which are hereby acknowledged, the undersigned does hereby release and forever
discharge the “Releasees” hereunder, consisting of Aziyo Biologics, Inc., and its partners, subsidiaries,
associates, affiliates, successors, heirs, assigns, agents, directors, officers, employees, representatives, lawyers, insurers,
and all persons acting by, through, under or in concert with them, or any of them, of and from any and all manner of action or
actions, cause or causes of action, in law or in equity, suits, debts, liens, contracts, agreements, promises, liability, claims,
demands, damages, losses, costs, attorneys’ fees or expenses, of any nature whatsoever, known or unknown, fixed or contingent
(hereinafter called “Claims”), which the undersigned now has or may hereafter have against the Releasees,
or any of them, by reason of any matter, cause, or thing whatsoever from the beginning of time to the date hereof.  The Claims
released herein include, without limiting the generality of the foregoing, any Claims in any way arising out of, based upon, or
related to the employment or termination of employment of the undersigned by the Releasees, or any of them; any alleged breach
of any express or implied contract of employment; any alleged torts or other alleged legal restrictions on Releasees’ right
to terminate the employment of the undersigned; and any alleged violation of any federal, state or local statute or ordinance
including, without limitation, Title VII of the Civil Rights Act of 1964, the Age Discrimination In Employment Act, the Americans
With Disabilities Act, and [__].1 Notwithstanding the foregoing, this general release (the “Release”)
shall not operate to release any rights or claims of the undersigned (i) to payments or benefits under Section 4(a) of
that certain Employment Agreement, effective as of [Ÿ], between Aziyo
Biologics, Inc. and the undersigned (the “Employment Agreement”), (ii) to payments or benefits
under any equity award agreement between the undersigned and the Company, (iii) with respect to Section 2(b)(iv) of
the Employment Agreement, (iv) to accrued or vested benefits the undersigned may have, if any, as of the date hereof under
any applicable plan, policy, practice, program, contract or agreement with the Company, (v) to any Claims, including claims
for indemnification and/or advancement of expenses arising under any indemnification agreement between the undersigned and the
Company or under the bylaws, certificate of incorporation or other similar governing document of the Company, (vi) to any
Claims which cannot be waived by an employee under applicable law or (vii) with respect to the undersigned’s right
to communicate directly with, cooperate with, or provide information to, any federal, state or local government regulator.

 

[IN ACCORDANCE WITH THE
OLDER WORKERS BENEFIT PROTECTION ACT OF 1990, THE UNDERSIGNED IS HEREBY ADVISED AS FOLLOWS:

 

(A)          THE
EXECUTIVE HAS THE RIGHT TO CONSULT WITH AN ATTORNEY BEFORE SIGNING THIS RELEASE;

 

(B)           THE
EXECUTIVE HAS TWENTY-ONE (21) DAYS TO CONSIDER THIS RELEASE BEFORE SIGNING IT; AND

 

(C)           THE
EXECUTIVE HAS SEVEN (7) DAYS AFTER SIGNING THIS RELEASE TO REVOKE THIS RELEASE, AND THIS RELEASE WILL BECOME EFFECTIVE UPON
THE EXPIRATION OF THAT REVOCATION PERIOD.]

 

 

 

1
Applicable state law references to be included.

 

     

     

    

 

The undersigned represents
and warrants that there has been no assignment or other transfer of any interest in any Claim which the Executive may have against
Releasees, or any of them, and the undersigned agrees to indemnify and hold Releasees, and each of them, harmless from any liability,
Claims, demands, damages, costs, expenses and attorneys’ fees incurred by Releasees, or any of them, as the result of any
such assignment or transfer or any rights or Claims under any such assignment or transfer.  It is the intention of the parties
that this indemnity does not require payment as a condition precedent to recovery by the Releasees against the undersigned under
this indemnity.

 

Notwithstanding anything
herein, the undersigned acknowledges and agrees that, pursuant to 18 USC Section 1833(b), the undersigned will not be held
criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made: (i) in
confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and solely for
the purpose of reporting or investigating a suspected violation of law; or (ii) in a complaint or other document filed in
a lawsuit or other proceeding, if such filing is made under seal.

 

The undersigned agrees
that if the Executive hereafter commences any suit arising out of, based upon, or relating to any of the Claims released hereunder
or in any manner asserts against Releasees, or any of them, any of the Claims released hereunder, then the undersigned agrees to
pay to Releasees, and each of them, in addition to any other damages caused to Releasees thereby, all attorneys’ fees incurred
by Releasees in defending or otherwise responding to said suit or Claim.

 

The undersigned further
understands and agrees that neither the payment of any sum of money nor the execution of this Release shall constitute or be construed
as an admission of any liability whatsoever by the Releasees, or any of them, who have consistently taken the position that they
have no liability whatsoever to the undersigned.

 

IN WITNESS WHEREOF, the
undersigned has executed this Release this ____ day of ___________, ____.

 

 

 

 

    A-2

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